New state laws affect consumers, businesses

Wednesday, June 30, 2004 | 11:15 a.m.

CARSON CITY -- About 20 new laws passed by the 2003 Legislature take effect Thursday, including a measure that bars insurance companies from denying or canceling coverage or raising premiums based only on a consumer's credit report.

Another law allows patients enrolled in managed health care plans who are denied treatment to get an independent review of the denial.

Most of the new measures that take effect on Thursday, the first day of the state's new fiscal year, won't directly impact consumers, but instead affect operations of business and government.

Consumer changes

The new law that prevents insurance companies from using only a credit report to deny individuals coverage or raise their rates requires the businesses consider other underwriting factors that are independent of the credit information.

In taking the adverse action, the company must give the consumer the reasons in "sufficiently clear and specific language."

The law does not apply to surety insurance contracts or to commercial or business policies, and it doesn't restrict insurance companies from obtaining a motor vehicle report or a customer's insurance claim history.

Managed care patients are also in line for some new protection Thursday.

In the past, there have been complaints by patients of managed care organizations that they have been denied appropriate and required treatment for their ailments. Assembly Bill 156 creates a system in which an independent group will review cases to determine if the treatment is needed.

Assembly Majority Leader Barbara Buckley, D-Las Vegas, said the new law is an extension of the patients bill of rights. It was proposed for a "couple of different sessions," she said, but finally passed in 2003.

There were many complaints from patients in the past but they have subsided due to the work of the state Office of Consumer Health Assistance, Buckley said.

Also, "HMOs are working better with patients," Buckley said.

Terri Rogers of the consumer health office said there are three review organizations certified to evaluate the denials. A physician or the patient asks the managed-care organization to require an independent evaluation. The cases will be assigned on a rotating basis to the external review organizations, she said.

A new law assures military veterans serving in Afghanistan, Iraq or in other conflicts will be eligible for the $2,000 assessed property tax exemption, said Tina Poff, customer service manager the Clark County assessor's office. The former law had some gaps in it and Nevada county assessors wanted to make sure all the deserving service members qualified.

The new law also puts surviving spouses and the blind on an equal footing by increasing their property tax exemptions in future years based on the cost of living starting in July 2005. She said military veterans already had a built-in cost of living adjustment.

The assessed property tax exemption for a blind person is $3,000 and for a surviving spouse is $1,000.

Business changes

The new fiscal year brings a reduction in the payroll tax from 0.70 percent to 0.65 percent. Also starting Thursday, car dealers who advertise that the Spanish language is spoken at their business must provide customers with Spanish-language forms, credit applications and contracts.

Another new law requires psychiatrists, psychologists and clinical social workers to be certified by the state before they can be assigned to determine if a criminal defendant is mentally capable of standing trial. Carlos Brandenburg, director of the state Division of Mental Health and Developmental Disabilities, said about 130 individuals have already been tested and certified.

The division wanted the law to make sure those who determine if a person is mentally capable of standing trial understand the law. Those certified have attended training sessions and passed an examination. The certification is good for two years, with a requirement for continuing training to stay up-to-date on the law.

District judges must the certified mental health professionals to determine whether accused criminals are able to stand trial.

Government changes

The new fiscal year's $6.4 billion budget includes a 2-percent pay increase for state workers. Of the $6.4 billion the state plans to spend, $2.5 billion will come from the state's general fund with the rest coming from the federal government and other fees. The tax bill passed by the Legislature will mean an additional $470.5 million this new fiscal year, including $30 million to partially replenish the state's rainy day fund. The fund that once had $135 million was drained last year to cover a revenue shortfall.

The state Division of Environmental Protection as of Thursday will require laboratories to be certified before they can analyze if hazardous waste is present in soil or water.

Donald LaFara, laboratory certification officer for the division, said regulations have been drafted and 29 companies have applied to be certified. At present, he said "not everybody is following the necessary steps and following the correct procedures" in testing for hazardous waste.

This will ensure that there are comparable results. "Not all companies are willing to abide by the standards," he said.

The state Environmental Commission is expected to approve the regulations at its mid-July meeting. The companies that pass muster will receive a two-year certification. LaFara said tests are made every six months where blind samples are given to a firm that must correctly identify the substance.

If they fail, they lose their certification.

There are two new laws dealing with local government. One revises the formula for distribution of tax revenue among local governments, although Bob Hatfield, executive director of the Nevada Association of Counties, said the change made technical "cleanup" to the existing law's language and won't have a major impact.

A second law requires local governments to adopt building codes that include the seismic standards of the International Building Code.