MINUTES OF THE SENATE COMMITTEE ON COMMERCE AND LABOR Sixty-eighth Session April 21, 1995 The Senate Committee on Commerce and Labor was called to order by Chairman Randolph J. Townsend, at 8:30 a.m., on Friday, April 21, 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. STAFF MEMBERS PRESENT: Scott Young, Senior Research Analyst Vance Hughey, Senior Research Analyst Molly Dondero, Committee Secretary OTHERS PRESENT: Ron Swirczek, Administrator, Department of Industrial Relations (DIR) Eloise Koenig, Self-Insurance Coordinator, Workers' Compensation Section, Division of Insurance, Department of Business and Industry Harvey Whittemore, Lobbyist, Nevada Resort Association Ron Swirczek, Administrator, Department of Industrial Relations (DIR), discussed his concerns about a previous vote taken by the committee on Assembly Bill (A.B.) 61. ASSEMBLY BILL 61: Expands Authority of division of industrial relations of department of business and industry to impose administrative fine for violation of certain provisions relating to control of asbestos. Senator Townsend commented on the provision for fines being placed into A.B. 61. He explained: The fine affecting a claimant will go to the claimant, but Mr. Swirczek expressed his concern that it puts the claimant in a position of having standing during the proceedings on the fine and, subsequently, on the potential loss of a ticket. Is that a general covenant of law that will automatically place that person in that position, independent of what we will say in statute. Mr. Swirczek explained that any time there is a benefit going to a claimant, the claimant, through that administrative process will always have standing. He commented they are an influencing party. Senator Townsend explained the committee is discussing the fining, and the loss of a ticket of self insurance. He explained the importance of DIR being able to control those not in compliance with regulations, hinges on the statute being correctly defined. Senator Townsend conducted a discussion on proposal 10, contained in Exhibit C, which was previously voted on for inclusion in the new bill being drafted on workers' compensation reform. SENATOR LOWDEN MOVED TO RESCIND PROPOSAL 10. SENATOR NEAL SECONDED THE MOTION. THE MOTION CARRIED. (SENATOR O'CONNELL VOTED NO.) ***** Senator Regan asked if the vote will affect proposal 84. It was decided it will not. Senator Townsend explained undoing the freeze does not mean they will go back 2 years. He stressed this will be a fresh start and move forward. Eloise Koenig, Self-Insurance Coordinator, Workers' Compensation Section, Division of Insurance, Department of Business and Industry, explained the posting for the hearing on the new regulations is being mailed today. Senator Townsend asked copies of the regulations be given to the committee members as soon as possible. Senator O'Connell pointed out the regulations must be a part of the bill. Senator Townsend asked if there are changes which can be agreed to between the division and the parties, and what is the time frame between the agreement and the posting of the temporary regulation. Ms. Koenig stated there is no limitation on the time. Senator O'Connell expressed her concern that a temporary regulation may be changed to a permanent regulation because regulations cannot be reviewed after the end of the Legislative Session. Ms. Koenig stated as long as something is addressed during the hearing and a change is made, it does not have to be reheard. But if something is new, there will be a need for a new hearing. Senator O'Connell expressed her concern that if objections are made to parts of a regulation, and no action is made on those objections, the regulations can become law without another hearing. Harvey Whittemore, Lobbyist, Nevada Resort Association, commented he thinks this is an emergency regulation. He explained the Legislative Counsel Bureau cannot give the regulations a "stamp of approval" until the Legislature meets again. The hearing was closed at 9:15 a.m. RESPECTFULLY SUBMITTED: Molly Dondero, Committee Secretary APPROVED BY: Senator Randolph J. Townsend, Chairman DATE: Senate Committee on Commerce and Labor April 21, 1995 Page