Legislature 2011: Bill would reduce liability for police, fire health benefits

Sen. Dean Rhoads,

R-Tuscarora, has introduced a bill designed to reduce the unfunded liability governments face for occupational diseases suffered by police and firemen.

SB135 was requested by the Nevada Taxpayers Association.

Director Carole Vilardo said under current law, any former public safety worker who shows up with diseases including heart disease, lung disease, cancer and hepatitis is presumed to have gotten it as a result of their employment as a police officer or firefighter.

The potential cost to governments at every level in Nevada, Vilardo said, is huge.

She said the unfunded liability of those benefits, the Public Employee Retirement System and public worker retiree health benefits add up to "just huge liabilities."

Vilardo said SB135 is designed to reduce governmental liability for presumptive coverage of occupational diseases by restricting eligibility.

The public safety worker still would be eligible if employed continuously and full time for five years before the diagnoses and if they were diagnosed either during that employment or within five years of leaving (one year in the case of hepatitis).

Vilardo said an example of the problem would be a person employed as a firefighter from age 21 through 29 who then leaves, gets out of shape over the years and takes up smoking. Even if it isn't until they are in their 60s before being diagnosed with heart disease, the public employer and the public benefits plan still are on the hook for all costs.

"That's now a lifetime benefit," she said. "It's presumptive and no proof is required."

She also said Nevada is the only state where the benefit is structured that way.

She said the taxpayers association isn't going after public employees in seeking the change.

"For me it's a fiscal issue," she said.

She presented a worksheet estimating the total potential liability of eight governmental entities in Nevada at more than $2 billion. They are Carson City, Henderson, Las Vegas, North Las Vegas, Las Vegas Metro Police, Sparks, Reno and Washoe County.

The bill was referred to the Senate Commerce, Labor and Energy Committee for study.