MINUTES OF THE
SENATE COMMITTEE ON COMMERCE AND LABOR
Sixty-seventh Session
June 23, 1993
The Senate Committee on Commerce and Labor was called to order by Chairman Randolph J. Townsend, at 8:30 a.m., on Wednesday, June 23, 1993, in Room 227 of the Legislative Building, Carson City, Nevada. Exhibit A is the Meeting Agenda. Exhibit B is the Attendance Roster.
COMMITTEE MEMBERS PRESENT:
Senator Randolph J. Townsend, Chairman
Senator Sue Lowden, Vice Chairman
Senator Ann O'Connell
Senator Mike McGinness
Senator Raymond C. Shaffer
Senator Leonard V. Nevin
Senator Lori L. Brown
STAFF MEMBERS PRESENT:
Denise Pinnock, Committee Secretary
Brian Davie, Senior Research Analyst
Frank Krajewski, Senior Research Analyst
OTHERS PRESENT:
Margi Grein, Lobbyist, Nevada State Contractors Board
Scott Young, General Counsel, Nevada State Industrial Insurance System
Roger Mowbray, Nevada State Industrial Insurance System
John McGlamery, Attorney, Director's Office, Department of Industrial Relations
Marsha Berkbigler, Lobbyist, Nevada State Medical Association
Terry Rankin, Commissioner of Insurance, Department of Insurance, State of Nevada
George McNally, Lobbyist, Nevada Trial Lawyers Association
Jim Jeppson, Administrator, Division of Industrial Insurance Regulation, Department of Industrial Relations, State of Nevada
Chairman Townsend called the meeting to order and opened the hearing on Senate Bill (S.B.) 524.
SENATE BILL 524: Makes various changes regarding licensure or other authorization to practice certain professions and occupations.
Margi Grein, Lobbyist, Nevada State Contractors Board, asked to be allowed to submit an amendment which would allow the board to use their discretion in the matter of denying contractors licenses.
Senator Townsend asked that Ms. Grein meet with Senator Shaffer, the chairman of the subcommittee to which the bill has been assigned. He closed the hearing on S.B. 524 and opened the hearing on Assembly Joint Resolution (A.J.R.) 20.
ASSEMBLY JOINT RESOLUTION 20:Urges Congress to enact legislation to facilitate establishment of Western United States Trade District.
Senator Townsend explained there are two concerns about the resolution. One is that it is not broad enough, and the other is that Senator Nevin believes the resolution encourages the use of nuclear power as opposed to finding alternatives to it.
Senator Brown said she had voiced the first concern but, since it was so late in the session she did not want to jeopardize the whole bill for an amendment which might not make it through.
Senator McGinness asserted the boundaries had already been drawn and the trade district had been put together. He said nothing precluded the southern districts from doing the same.
SENATOR McGINNESS MOVED TO ADOPT A.J.R. 20.
SENATOR BROWN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR NEVIN WAS ABSENT FOR THE VOTE.)
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Senator Townsend closed the hearing on A.J.R. 20 and opened the hearing on Assembly Bill (A.B.) 300.
ASSEMBLY BILL 300: Makes various changes to provisions governing hearing aid specialists.
Brian Davie, Senior Research Analyst, explained the amendment resulted from the meeting with the hearing aid specialists and Brian Harris, Counsel, Attorney General's Office, State of Nevada. Mr. Davie said the amendment would restructure the board to include a physician, a dispensing audiologist, a dispensing hearing aid specialist, and two members of the public with hearing disorders. The amendment would specify that the board serves at the pleasure of the Governor. It would add a section requiring a study of the laws governing hearing aid specialists and the dispensing of hearing aids. The last change is to have a staggered membership of the board so their terms expire at different times.
SENATOR SHAFFER MOVED TO AMEND A.B. 300 WITH AMENDMENT NO. 886.
SENATOR O'CONNELL SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
* * * * *
Senator Townsend closed the hearing on A.B. 300 and opened the hearing on S.B. 545.
SENATE BILL 545: Provides duties and liabilities of financial planners.
Senator Townsend explained he is having an amendment drafted which would exempt those persons licensed under another chapter, such as attorneys and certified public accountants.
Senator Townsend closed the hearing on S.B. 545 and opened the hearing on the trailer bill to S.B. 316.
SENATE BILL 316: Makes various changes to provisions governing industrial insurance.
Senator Townsend announced there would be a subcommittee meeting that afternoon. He stated the committee would be working from a document titled List of Items Approved For Consideration in The Bill as of June 22, 1993 (Exhibit C).
Scott Young, General Counsel, Nevada State Industrial Insurance System (SIIS), submitted Exhibit D, regarding employers with excessive losses.
Senator Townsend became aware of a conflict notice on his desk on A.B. 300 with S.B. 316. He wondered how the Board of Hearing Aid Specialists conflicted with what Mr. Young was doing. Mr. Young said the only thing he could think of are the sections at the end of the bill which say that the various medical provider's boards they have to take action against their people if they do something illegal.
Senator Townsend asked Mr. Davie to make sure the conflict resolution amendment is drafted.
Mr. Young went on to explain Exhibit D is the formula used to generate the "Misfortune 500." He said the administration feels that is an appropriate formula to use and recommended that formula be put into the statute. Mr. Young also recommended sunset language to expire the formula so if there are any hidden problems they can be dealt with at that time.
Senator Townsend wondered whether, if the language is included in the trailer bill, the employer would be fined without any notice. Mr. Young explained after the first of July they would be using the most up-to-date figures to determine experience modification factors on a current basis. Using that new information, the SIIS would then determine who is on the "Misfortune 500" list. Those people would then be notified they are on the list and the consequences explained. The employer would also be told about the public hearings on other parts of the plan including how to get off the list eventually.
Senator McGinness questioned how a very small employer with catastrophic losses would be handled. Roger Mowbray, Nevada State Industrial Insurance System, said it would require at least two large claims in 2 separate, successive years to be put on the list. Expenses for a claim are charged to the year the injury occurs.
Senator Brown pointed out this would not affect a new business for at least 3 years. Mr. Mowbray agreed and stated it could conceivably be 4 years. He defined the formula as losses divided by the manual rate.
John McGlamery, Attorney, Director's Office, Department of Industrial Relations, expressed concern over the language on advanced practitioners of nursing (APNs). He wondered if the committee's intent is to bring them into parity with physicians and chiropractors for billing purposes. Mr. McGlamery said currently there is a fee schedule into which the APNs fit. Senator Townsend pointed out his firm does represent that group of people. He said the APNs want to make sure the complexities of the bill do not expand nor contract their scope.
Marsha Berkbigler, Lobbyist, Nevada State Medical Association, stated she had spoken to Helen Foley, Lobbyist, Nevada State Nurses Association, along with two attorneys who represent the Nevada State Medical Association as well as the Nevada State Osteopathic Medical Association regarding the language Ms. Foley had proposed. Both attorneys agreed the language would increase the APNs scope of practice and give them parity with physicians inside the SIIS issue. She asked for clarifying language. Senator Townsend asked that Ms. Berkbigler testify in the subcommittee meeting scheduled for that evening.
Ms. Berkbigler said another area of concern the attorneys brought up was that the argument the nurse practitioners had been giving was that they do not work under a physician's license. She pointed out that the same argument applies to several other health care providers. Senator Townsend wondered whether adding that anyone licensed to practice any form of health care shall not be constrained in their scope of practice if it is dealing with workers' compensation, would take care of the problem. Ms. Berkbigler stated she would talk to Terry Potts, Lobbyist, Nevada Physician's Caucus, to work out mutually satisfactory language.
Senator O'Connell asked Mr. McGlamery about the conflict amendment the Senate heard the day before. She stated the language dealing with consideration of age and sex for rehabilitation had been challenged. Senator O'Connell asked if the SIIS had been challenged. Mr. McGlamery stated they had not, but the language had only been in effect a couple of months. Senator Townsend explained the bill which the conflict was on was a bill Senator O'Connell was trying to get through. It would modify the Governor's language which requires an employer to keep an injured employee's job open for 3 years. Senator Townsend asked that Mr. McGlamery and Mr. Young research the issue, and they agreed.
Terry Rankin, Commissioner of Insurance, Department of Insurance, State of Nevada, said that in a temporary regulation the language is not reviewed by the Legislative Counsel Bureau until June 15, 1993. She stated the reason there had been no challenges could be because of that lack of review.
Senator Townsend declared:
The reasoning behind the language is that you do not want to rehabilitate someone who is 55 or 57 years of age. They have been doing one thing all their lives and you are not going to change their whole work capability. That same worker who is 25 [years old] and gets the same injury would be considered for vocational rehabilitation and be a perfect candidate. So, you have to consider age, but if you do that and put it in statute, is it challengeable?
George McNally, Lobbyist, Nevada Trial Lawyers Association, asserted the language is definitely challengeable. Senator O'Connell stated she would announce on the senate floor that the committee would address Senator Adler's concern in the trailer bill.
Jim Jeppson, Administrator, Division of Industrial Insurance Regulation, Department of Industrial Relations, State of Nevada, said Mr. Young had pointed out that section 292 states the average monthly state wage is to be calculated using the state average weekly wage on the effective date of the section. Mr. Young said the savings were based on freezing the average monthly wage at the level which is currently in place. There is a question whether the language would require bringing the average monthly wage up to a calculation based on the information that is available on the date of the bill. He suggested a letter of intent.
Senator Townsend expressed concern about whether the fraud unit would be on-line immediately or be phased in gradually. He said the attorney general is afraid the unit will be phased in. Mr. Young said the only "phase in" is that some of the existing cases that are presently with the District Attorney's Office will stay with them. All the new cases would come to the attorney general.
Senator Townsend closed the hearing on the trailer bill and adjourned the meeting at 9:40 a.m.
RESPECTFULLY SUBMITTED:
Denise Pinnock,
Committee Secretary
APPROVED BY:
Senator Randolph J. Townsend, Chairman
DATE:
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Senate Committee on Commerce and Labor
June 23, 1993
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