THE LEGISLATURE :

Beers calls ‘backroom fix’ charge political

Amendment benefiting senator’s former employer won’t stick, Democrats vow

Thursday, Oct. 9, 2008 | 2 a.m.

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Primary Election 2008

Nevada Democrats opened a new line of attack Wednesday on state Sen. Bob Beers, vowing to try to repeal legislation quietly approved in 2007 that benefited Beers’ former employer.

Democrats are citing a story in Sunday’s Las Vegas Sun reporting that Beers said he introduced a Republican ally, state Sen. Randolph Townsend, to an executive of the former employer, Payroll Solutions. Townsend then introduced an amendment favorable to the company, adding it to an insurance bill at the close of the 2007 legislative session.

Beers had resigned as vice president of sales of Payroll Solutions before the legislative session, saying he wanted to avoid any conflict between his elected office and the company’s legislative agenda.

The stakes in Beers’ race are high. Republicans control the Senate by one vote. Beers is being challenged by marketing executive Allison Copening. If she wins, control of the Senate will switch from the Republicans to the Democrats.

“After discovering Bob Beers’ backroom fix for his former employer, protecting the integrity of the entire state legislature requires us to repeal this amendment,” Senate Minority Leader Steven Horsford said in a statement Wednesday. Horsford had voted in favor of the law.

Beers responded: “I’m appalled that for transparent political purposes, Sen. Horsford would risk taking away low-cost, high-quality health insurance for a couple thousand Las Vegans.”

He also said he had merely taken a worthy idea to a colleague and would do it again. “If any constituent of mine comes to me with an idea of merit, I will always do my best to put them in touch with the right legislator and committee.”

Beers said he’d talked to Nevada Attorney General Catherine Cortez Masto, who “listened to the facts, and she offered her opinion that it was not irregular.”

At the time of the amendment, Payroll Solutions faced a state Insurance Division fine of $1 million plus back taxes in 2006 for running a health plan without a license. Payroll Solutions performs payroll, benefits administration and other services for companies.

Payroll Solutions maintains it operates a plan that is regulated by the federal government, not the state.

The matter is being fought in state and federal courts.

At the close of the 2007 legislative session, Townsend offered the amendment to a workers’ compensation insurance bill. The amendment explicitly made companies such as Payroll Solutions subject to federal rather than state regulation. There was no public hearing or testimony on the amendment before it won approval.

The state has more stringent regulations on insurers, requiring them to cover certain procedures such as cancer screenings and contribute to a fund that would pay claims if they went broke.

Internal memos obtained by the Sun for its story showed government lawyers and regulators are concerned the amendment opened up a new class of health insurers that will operate outside the watchful eyes of the state.

Discussion: 7 comments so far…

By Rich

10/9/08 at 6:47 a.m.

Suggest removal

I still want to know why someone isn't asking the obvious? Why does Nevada tax health insurance? It has already increased 54.6 percent in seven years, twice as fast as our median earnings.

Rich
By 2zero

10/9/08 at 6:56 a.m.

Suggest removal

Beers says "I would do it again". Save "my friends" from paying a million dollar FINE! I resigned because it would look bad, corrupt and despicable...Beers is everything we have come to expect in Nevada politics.

Townsend is the Chairman of the Commerce and Labor Committee. This man has been doing midnight back room deals and last minute amendments without public hearings since he became chairman. He is a car salesman that wears hand tailored shirts, $2,000 dollar suits and is regularly seen smoking cigars with lobbyists at the most expensive establishments.

Vote no to corruption in the State Capital! A vote against Beers will also remove Townsend.

Two birds (vultures) one vote!!!!!!
By battleborn501

10/9/08 at 7:11 a.m.

Suggest removal

Randolph Townsend is an upfront, straight shooting legislator. He is as good as they come.

Bob Beers is at fault here. To admit you left the company before the start of the legislature so you could help push this law through without any conflict of interest is appalling.
By homer

10/9/08 at 8:10 a.m.

Suggest removal

Bob Beers has been a snake in the grass from the time he decided to run for office,before that would be anyones guess. Follow the money. Anyone who votes for Beers is either ignorant,stupid,corrupt or impaired.
By 2zero

10/9/08 at 8:11 a.m.

Suggest removal

Bob brings new meaning to the saying; "on Beer too many"!

Townsend is sleaze; never met lobbyist money that was not "good for Nevada"!

Vote them both out!!!! One vote gets two crooks!
By Public_Education_NV

10/9/08 at 1:47 p.m.

Suggest removal

Vote for Allison Copening!
By franklin

10/9/08 at 9:15 p.m.

Suggest removal

The state has no business taxing health insurance.

Vote for Allison Copening? The woman can't buy herself a clue.

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