MINUTES OF THE
	SENATE COMMITTEE ON COMMERCE AND LABOR

	Sixty-eighth Session
	March 29, 1995


The Senate Committee on Commerce and Labor was called to order 
by Chairman Randolph J. Townsend, at 9:30 a.m., on Wednesday, 
March 29, 1995, in Room 227 of the Legislative Building, Carson 
City, Nevada.  Exhibit A is the Agenda.  Exhibit B is the 
Attendance Roster.


COMMITTEE MEMBERS PRESENT:

Senator Randolph J. Townsend, Chairman
Senator Ann O'Connell, Vice Chairman
Senator Sue Lowden
Senator Raymond C. Shaffer
Senator John B. (Jack) Regan
Senator Joseph M. Neal, Jr.

COMMITTEE MEMBERS ABSENT:

Senator Kathy M. Augustine (Excused)

STAFF MEMBERS PRESENT:

Beverly Willis, Committee Secretary
Scott Young, Senior Research Analyst

OTHERS PRESENT:

Pat Coward, Lobbyist, Nevada Association of Realtors
Patsy Redmond, Executive Vice President. Nevada Association of 
Realtors
Douglas Dirks, General Manager, State Industrial Insurance 
System (SIIS)
Bill Garrison, General Contractor


Opening today's meeting, Pat Coward, Lobbyist, Nevada 
Association of Realtors, referring to Exhibit C, provided 
information prepared by the State Industrial Insurance System 
(SIIS)  (Exhibit D) to the committee.  Mr. Coward proceeded with 
an explanation.  Douglas Dirks, General Manager, State 
Industrial Insurance System (SIIS) joined in  with further 
explanation.  After questioning Mr. Dirks, Senator Townsend 
requested further clarification from Mr. Coward.  Mr. Coward 
stated, "In essence it makes it optional for an [real estate] 
agent to participate in the system (SIIS)."

Mr. Dirks stated there is some risk if individuals take 
themselves out of the workers' compensation system.  He went on 
to note, if these individuals plan on coverage provided from 
individual or group health plans there may be an exclusion on 
work related injuries.  This could mean there will be a group of 
people with no coverage and this could pose a risk.

Senator Townsend asked, "[If Mr. Dirks] is comfortable that once 
these persons are notified and fully educated on that issue 
....... they still have the right to opt in or opt out 
........?" 

Mr. Dirks replied if these people understand the risk that may 
be associated,  (if they opt to leave SIIS) it will be a 
business decision.  At this time, Senator Townsend questioned 
Patsy Redmond, Executive Vice President. Nevada Association of 
Realtors further regarding Exhibit D.  Senator Townsend stated:

The Real Estate Commissioner needs to be at a meeting 
in the near future .......  so we can make sure that 
every licensee is going to be notified of the costs 
associated with this provision, if it goes in the bill 
and what the downside is  if they decide to go out on 
their own.  
Mr. Dirks stated to clarify the record:

If this provision is adopted there would not be a rate 
increase on this group of people at passage.  The only 
way we can do any type of adjustment to rate is 
through a full hearing with the insurance 
commissioner.  

In answer to questions from Senator Townsend, Mr. Dirks noted he 
is planning on a rate filing for adjustment of rates and not for 
an increase.


Next to testify was Bill Garrison, General Contractor, 
representing himself.  Mr. Garrison has concerns regarding 
workers hired, where there is an accumulative problem, resulting 
in an injury and the last employer ends up with that 
accumulation, thus causing rates (SIIS)  to be raised.  Mr. 
Garrison gave several examples.  Senator Townsend noted this is 
a situation SIIS needs to examine to find if the problem of a 
cumulative injury can be mitigated, so it is not assessed on the 
last employer.  There was further discussion between Senator 
Neal and Mr. Garrison.  Senator Regan questioned if there is a 
set of injuries that is specific to each construction trade so 
that Mr. Dirks and SIIS could set a pattern.  Senator Regan went 
on, noting Mr. Garrison's concern is that the last employer is 
now being made responsible.  Senator Townsend stated these 
concerns would, hopefully, be addressed in the very near future. 
 

Senator Townsend continued by summarizing what he intends to 
cover at a meeting next week.  

Exhibit E, a memo from Scott Young, Senior Research Analyst, was 
presented to the committee; however, there was no testimony.  

Exhibits F and G, from Larry Harvey, Nevada Employers Workers' 
Compensation Coalition, were also presented to the committee 
without testimony.

Exhibit H, provided by Bryan Stockton, Associate General 
Counsel, State Industrial Insurance System (SIIS), was presented 
to the committee without testimony.


There being no further business, the meeting was adjourned at 
10:15 a.m.     

RESPECTFULLY SUBMITTED:



                      
                   								Beverly 
Willis,
Committee Secretary

APPROVED BY:




                                                          	
					
Senator Randolph J. Townsend, Chairman


DATE: 						

Senate Committee on Commerce and Labor
March 29, 1995
Page