MINUTES OF THE SENATE COMMITTEE ON COMMERCE AND LABOR Sixty-eighth Session April 18, 1995 The Senate Committee on Commerce and Labor was called to order by Chairman Randolph J. Townsend, at 8:30 a.m., on Tuesday, April 18, 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 Kathy M. Augustine Senator Raymond C. Shaffer Senator John B. (Jack) Regan Senator Joseph M. Neal, Jr. GUEST LEGISLATORS PRESENT Senator Dina Titus STAFF MEMBERS PRESENT: Beverly Willis, Committee Secretary Scott Young, Senior Research Analyst Vance Hughey, Senior Research Analyst OTHERS PRESENT: Danny Evans, Assistant Administrator, Occupational Safety and Health Enforcement Section, Division of Industrial Relations (DIR) Ron Swirczek, Administrator, Division of Industrial Relations (DIR) Ray Bacon, Lobbyist, Nevada Manufacturers Association Cecilia Colling, Assistant General Manager, State Industrial Insurance System (SIIS) Douglas Dirks, General Manager, State Industrial Insurance System (SIIS) Lenard Ormsby, General Counsel, State Industrial Insurance System (SIIS) Jeannie Deeg, President, Mobile Home Owners League of The Silver State, Inc. Renee Diamond, Administrator, Manufactured Housing Division, Department of Business and Industry Senator Townsend opened the meeting by outlining the order in which business will be conducted. He noted the hearing on Senate Bill (S.B.) 355 will be postponed. SENATE BILL 355: Makes various changes to provisions relating to disposition of dead human bodies. Senator Townsend then offered Bill Draft Request (BDR) 53-619 for introduction. Bill Draft Request 53-619: Revises provisions governing unemployment compensation and industrial insurance for certain subcontractors and independent contractors. SENATOR SHAFFER MOVED TO INTRODUCE BDR 53-619. SENATOR REGAN SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * Senator Townsend closed the hearing on BDR 53-619 and opened the hearing on Senate Bill (S.B.) 298. SENATE BILL 298: Prohibits disciplinary action against physician or osteopathic physician for prescribing or administering certain controlled substances for treatment of intractable pain. SENATOR AUGUSTINE MOVED TO AMEND AND DO PASS SENATE BILL 298 WITH AMENDMENT NO. 225. SENATOR REGAN SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. * * * * * The hearing was closed on S.B. 298 and Senator Townsend opened the hearing on Assembly Bill (A.B.) 60. ASSEMBLY BILL 60: Makes various changes to provisions governing reporting and investigation of certain accidents occurring in course of employment. First to testify on A.B. 60 was Danny Evans, Assistant Administrator, Occupational Safety and Health Enforcement Section, Division of Industrial Relations (DIR). Mr. Evans noted changes have been made due to federal requirements for reporting fatalities. Mr. Evans went on to note these changes, one change being the amount of time to report fatalities from 48 hours to 8 hours. Answering questions from Senator Townsend, Mr. Evans explained his department will, normally, not be involved in issues that are not job related. Senator Shaffer, Senator Townsend and Mr. Evans discussed various elements of responsibility and several language changes. Mr. Evans explained potential problems are covered in preconstruction meetings with contractors. Senator Townsend noted the committee has always stressed prevention and safety and wants to make sure any new legislation is applicable to the trade/vocation. Senator Neal and Mr. Evans had further discussion regarding the time frame for reporting accidents. Next to testify Ron Swirczek, Administrator, Division of Industrial Relations (DIR), stated there is a plan to publish quarterly, a summary of all violations, by type of industry. In this publication there will be information on how to get assistance to avoid future problems. Mr. Swirczek asserted the emphasis is on prevention. Answering questions posed by Senator O'Connell, Mr. Swirczek stated this information will be published prominently in the newspaper. Senator Neal, Mr. Swirczek and Mr. Evans continued with additional dialogue regarding various aspects of terminology and investigations. Mr. Evans declared basically, changes are being requested because of federal requirements with applicable situations. Senator O'Connell requested information on fiscal impacts for local government and the State Industrial Insurance System (SIIS). Mr. Swirczek noted there could be minor costs because of time implementation. Ray Bacon, Lobbyist, Nevada Manufacturers Association, stated for clarification, in some machinery or processing industries, i.e., chemical or mining, it might not be possible to instantaneously shut down machines, noting this has been discussed with Mr. Evans. At this time, Senator Townsend closed the hearing on A.B. 60 requesting a fiscal note before A.B. 60 is processed. Senator Townsend, referring to Exhibit C, called for testimony on Proposal 61, noting his recommendation for the committee is: After this discussion and presentation we look at two things. This proposal, which is extremely narrow and I believe the system is currently doing, and the general proposal of retroactivity that does, in fact, not affect any vested benefit of compensation whatsoever, that would be substantially broader. Those are the two things we ought to look at here. At this time, Cecilia Colling, Assistant General Manager, State Industrial Insurance System (SIIS), provided the committee with Exhibits D, E and F. Ms. Colling, referring to Exhibit D, gave an explanation. Senator Townsend queried Ms. Colling concerning parameters on Proposal 61 of Exhibit C. Douglas Dirks, General Manager, State Industrial Insurance System (SIIS), replied, "Proposal 61, a part of our business plan, would not go to the issue of whether or not a claim can or cannot be reopened. It only goes to what happens when it reopens. .......It would not address the right of whether or not you can reopen your claim. We would look to change that beyond what the original proposal was." Senator Townsend stated: There are three issues that I want to make sure I understand.... your proposal would not only include the reopening of a claim, that was medical only; would not only include a case that was reopened that was medical and Temporary Total Disability (TTD), but would also include those long-term tragedy cases that we talk about where the reopening, even though it had not met the $500, 6-month provision...... and whether it opens 5 or 6 months later, a year later, or 5-years later, those are the three elements with which we must deal.......In your plan, all those would be included, is that correct, in your perception of what your language says under Proposal 61? Ms. Colling replied, "my perception of Proposal 61 is we would not consider it a new benefit, but, when reopened (they) would be placed under the Managed Care Organization (MCO)." Ms. Colling went on to state, Lenard Ormsby, General Counsel, State Industrial Insurance System (SIIS), will provide clarification. Mr. Ormsby noted in cases of exposure where a claimant might not test positive, if in fact, at a later date symptoms should arise, they do get benefits. In answer to questions from Senator Shaffer, Mr. Ormsby noted he is not aware of procedures followed by self-insureds. Senator Townsend and Ms. Colling continued with their discussion regarding exposure-type cases. Senator Townsend inquired of Mr. Ormsby the circumstances surrounding a situation if a blanket retroactivity provision were used, that will protect the workers of vested compensation rights.......what other things would be included in that retroactivity. Mr. Ormsby replied, "The only things that would not be affected by any changes, whatever they may be, from this session would be the compensation themselves...........Anything other than the monetary compensation would be subject to changes upon reopening." Ms. Colling, Mr. Ormsby, Senator Shaffer and Senator Neal continued with a discussion regarding vested rights. Mr. Ormsby stated, "According to the Nevada Supreme Court ......the workers' compensation is determined with the statute in force when he or she was injured." Senator Townsend then opened the hearing on S.B. 361. SENATE BILL 361: Makes various changes relating to mobile home parks. Senator Dina Titus, representing Senate District 7 in Clark County, came forward to testify on S.B. 361, stating this district has the most mobile home parks in the state. Senator Titus then summarized S.B. 361 with regard to many facets that deal with `daily life.' Senator Titus enumerated, noting among the provisions requested are a rent receipt, a bond required for the mobile home park owner. Another requirement sought is an on-site manager for mobile home parks of 25 homes, or more. A notice of 60 days, prior to the adoption or amendment, of any regulation within the park. Senator Titus went on with other provisions requested. Senator Titus indicated these provisions have been written by mobile home owners, noting people who live in mobile home parks have experienced problems that have led to these kinds of provisions. At this time, Jeannie Deeg, President, Mobile Home Owners League of The Silver State, Inc., testified. Ms. Deeg stated mobile home owners are not second class citizens, to which Senator Lowden assured her they (mobile home owners) will not be treated as such by the committee. Ms. Deeg continued with her testimony (Exhibit G). Senator Lowden noted there is a mobile home park in her district that is managed by the Housing Authority and noted there are going to be exceptions to some provisions in S.B. 361. Senator Townsend explained the procedure regarding subcommittees, noting it is likely S.B. 361 will need to be referred to the subcommittee headed by Senator Regan. Senator Titus stated she will be happy to appear before the subcommittee to help resolve any differences. Renee Diamond, Administrator, Manufactured Housing Division, Department of Business and Industry, came forward to testify, presenting Exhibits H, I and J. Ms. Diamond referred to Exhibits H, I and J and gave an explanation. Ms. Deeg noted stronger laws are needed, then continued with an explanation of Exhibit G. Ms. Deeg noted, especially where training for park managers is concerned, her organization would like to be involved. Ms. Deeg continued, answering several questions posed by Senator Neal, a number of problems where corrections are needed. At this time, Senator Townsend confirmed that S.B. 361 would be referred to the subcommittee headed by Senator Regan, with Senators Augustine and Shaffer participating. Ms. Diamond answered several questions from Senator Shaffer regarding jurisdiction and the enforcement of any ordinance pertaining to mobile home parks. There being no further business, the meeting was adjourned at 10:20 a.m. RESPECTFULLY SUBMITTED: Beverly Willis, Committee Secretary APPROVED BY: Senator Randolph J. Townsend, Chairman DATE: Senate Committee on Commerce and Labor April 18, 1995 Page