Attorney: Task force didn’t act improperly in refusing drug funds

Friday, July 7, 2000 | 10:49 a.m.

CARSON CITY -- An attorney for the Nevada Legislature says a state task force did not engage in "evil, wrongful and unlawful" conduct when it refused to release $5 million sought by Gov. Kenny Guinn for his prescription drug subsidy program for senior citizens.

The legal opinion by Scott McKenna, senior deputy legislative counsel, says there was no malfeasance by the task force as suggested by Guinn's chief of staff, Scott Scherer. McKenna also said the task force was actually following one of the governor's main policies -- to be more accountable for state money

The opinion, released Thursday, was addressed to Assemblywoman Barbara Buckley, D-Las Vegas, co-chairwoman of the Task Force for the Fund for a Healthy Nevada. She had requested the legal opinion following Scherer's remarks.

Scherer said the McKenna opinion was not from an independent source but from the Legislature where Buckley serves.

"Whether it was malfeasance or nonfeasance, they (the task force) failed to do the right thing for Nevada's senior citizens," Scherer said.

He said the law requires the task force to free up the money but the members "put off what their duty was." He suggested there was a "splitting of hairs" whether the task force was guilty of malfeasance (acting wrongly) or nonfeasance (failing to act) in office.

This is another chapter in what has become a partisan fight between the Republican Guinn Administration and Democrats Buckley and Assemblywoman Vivian Freeman of Reno, who co-chairs the task force.

Guinn's state Department of Human Resources sent out bids to about 800 insurance companies asking them to submit proposals to cover drug purchases for low-income seniors over age 62. The bids are not due until Aug. 29. But Guinn says the task force should release the money now so the proposed bidders would be assured the money is available.

Buckley and Freeman said they want to see details on the prescription drug program to ensure that seniors receive adequate coverage before reserving the money, which would come from the tobacco settlement fund.

Buckley and Freeman suggested to Guinn Wednesday that they hold a joint hearing to get an idea of what Nevada elderly want most in a drug policy and what they are willing to pay. The law gives the seniors a maximum rebate of $480 a year on a drug policy.

The Guinn proposals ask the insurance companies to come in with a premium of between $45 and $60 a month.

Buckley said she spoke with the governor Thursday afternoon and that he did not agree to a joint hearing with the task force.

Her impression, she said, was that Guinn wants to see if there are bids for the insurance policy at the end of August. If it doesn't work, he'll go back to the Legislature.

Buckley said she is leaving open the issue of her task force holding hearings. But she said she is drafting an alternative prescription drug insurance policy that could be used if the bids from the insurance companies are not satisfactory.

In the legal opinion, McKenna said the Legislature did not create the task force to be a "rubber stamp" for the governor.