Legislature OKs change to workers comp system

Friday, May 28, 1999 | 10:47 a.m.

SUN CAPITAL BUREAU

CARSON CITY -- A bill that converts the 86-year-old state workers compensation system into a private company cleared the Legislature Friday as lawmakers targeted Saturday for final adjournment of the 1999 session.

The Senate unanimously adopted Assembly amendments on SB37. The measure turns Employers Insurance Co. of Nevada, formerly called the State Industrial Insurance System, into a private mutual company on Jan. 1, 2000.

The bill includes restoration of $25 million to $40 million in benefits for injured workers which were taken away in 1993 when the system was near bankruptcy.

The bill goes to Gov. Kenny Guinn who proposed the conversion in his "State of the State" message in January.

In other business:

* Stalking bill: Guinn Friday signed the so-called Jerry Lewis stalking bill. AB363 increases the penalty for aggravated stalking from six to 15 years. The comedian appeared before the Assembly earlier in the session to speak about his experience with a persistent stalker in Las Vegas. He asked for greater penalties.

* Discrimination against gays: The governor also intends on Saturday to sign the bill banning discrimination against gays in employment. Nevada will join 10 other states and the District of Columbia, which have similar laws. AB311 was introduced by Assemblyman David Parks, D-Las Vegas, who said the signing is a "great day for Nevada."

* Dental school: The Assembly and Senate agreed on a bill that will open the door for creation of a dental school at UNLV. A novel financing plan, authored by Sen. Ray Rawson, R-Las Vegas, calls for a $30 million building without requiring any Nevada taxpayer money.

Rawson's proposal is to establish clinics statewide to treat children. The clinics would be reimbursed from several sources, including Medicaid; a low income children's insurance program called Nevada Checkup; and private insurance providers that would contract with the dental school for treatment.

AB527 goes to the governor for his signature.

* Budget: The budget bills, totaling $8.9 billion to run state government for the next two years, started moving through the Legislature.

Senate Majority Leader William Raggio, R-Reno, said there is a 5 percent increase in the budget in the next fiscal year and 3.4 percent in the following year. Of the $8.9 billion, $3.2 billion comes from state tax revenue. The remaining money comes from the federal government and fees collected by state agencies.

There were still a number of major disagreements between the Senate and Assembly that must be resolved before final adjournment, which must take place no later than Monday.

The Senate refused to agree with the Assembly on a bill to deregulate the electric industry by March 2000. SB438 allows other companies to sell power to Nevada customers. In order to protect consumers, Nevada Power Co. and Sierra Pacific Power Co. would be allowed to raise rates until March 1, 2000, but would be restricted from any further adjustments for three years.

A conference committee will be appointed to resolve the differences.

The Senate and Assembly were also at odds over a mortgage broker bill aimed at protecting investors.

AB64 was the outgrowth of the Harley Harmon scandal in Las Vegas in which more than $10 million was lost.

The Senate adopted amendments to the measure, which opponents said weakened consumer protection. The Assembly then passed a tougher bill and sent it to the Senate, setting up the showdown between the two houses.

archive