EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

1-1 Section 1. Chapter 439 of NRS is hereby amended by adding thereto

1-2 the provisions set forth as sections 2 to 5, inclusive, of this act.

1-3 Sec. 2. 1. The trust fund for public health is hereby created in the

1-4 state treasury. Upon receipt of any money distributed to the State of

1-5 Nevada as a result of settlement agreements in November 1998 with

1-6 tobacco companies, the state treasurer shall deposit an amount equal to

1-7 10 percent of the money so received into the trust fund for public health.

1-8 2. The state treasurer shall administer the trust fund. As

1-9 administrator of the trust fund, the state treasurer:

1-10 (a) Shall maintain the financial records of the trust fund;

1-11 (b) Shall invest the money in the trust fund in accordance with the

1-12 policies for investment established pursuant to section 3 of this act;

2-1 (c) Shall manage any account associated with the trust fund;

2-2 (d) Shall maintain any instruments that evidence investments made

2-3 with the money in the trust fund;

2-4 (e) May contract with vendors for any good or service that is

2-5 necessary to carry out the provisions of this section; and

2-6 (f) May perform any other duties necessary to administer the trust

2-7 fund.

2-8 3. The interest and income earned on the money in the trust fund

2-9 must, after deducting any applicable charges, be credited to the fund and

2-10 accounted for separately. All claims against the fund must be paid as

2-11 other claims against the state are paid.

2-12 4. Only the interest and income earned on the money in the trust

2-13 fund may be expended. Such expenditures may only be made for:

2-14 (a) Grants made pursuant to section 5 of this act for:

2-15 (1) The promotion of public health and programs for the prevention

2-16 of disease or illness;

2-17 (2) Research on issues related to public health; and

2-18 (3) Direct health care services for children and elderly persons;

2-19 (b) Expenses related to the operation of the board of trustees of the

2-20 trust fund; and

2-21 (c) Actual costs incurred by the health division for providing

2-22 administrative assistance to the board.

2-23 5. The money in the trust fund remains in the fund and does not

2-24 revert to the state general fund at the end of any fiscal year.

2-25 Sec. 3. 1. The state board of finance shall create and adopt a

2-26 comprehensive plan that specifies the policies for investment of the trust

2-27 fund for public health. The comprehensive plan must include

2-28 authorization for the state treasurer to invest the money in the trust fund

2-29 in a prudent manner.

2-30 2. In carrying out the authorized investments, the state treasurer

2-31 shall exercise the judgment and care, under the circumstances then

2-32 prevailing, which a person of prudence, discretion and intelligence

2-33 exercises in the management of his own affairs, not in regard to

2-34 speculation, but in regard to the investment of his own money

2-35 considering the probable income as well as the probable safety of his

2-36 capital.

2-37 3. At least once every 4 months, the state board of finance shall

2-38 review and approve or disapprove the investments made by the state

2-39 treasurer of the money in the trust fund.

2-40 Sec. 4. 1. The board of trustees of the trust fund for public health

2-41 is hereby created.

2-42 2. The board consists of 11 members composed of:

3-1 (a) The administrator or his designee.

3-2 (b) The state health officer or his designee.

3-3 (c) The chairman of the Nevada commission on aging or his designee.

3-4 (d) The chairman of the state board of health or his designee.

3-5 (e) The chairman of the advisory board on maternal and child health

3-6 or his designee.

3-7 (f) The superintendent of public instruction or his designee.

3-8 (g) The county health officers of the two most populous counties in

3-9 this state.

3-10 (h) One member appointed by the Nevada Association of Counties, or

3-11 its successor, who serves as a county health officer in a rural area of this

3-12 state.

3-13 (i) A representative of the University of Nevada School of Medicine.

3-14 (j) One member appointed by the governor who possesses knowledge,

3-15 skill and experience in the field of managed care.

3-16 3. The term of a member of the board who is appointed pursuant to

3-17 paragraph (h), (i) or (j) of subsection 2 is 4 years.

3-18 4. The board shall annually elect a chairman from among its

3-19 members. The board shall meet at least quarterly. A majority of the

3-20 members constitutes a quorum, and a majority of those present must

3-21 concur in any decision.

3-22 5. Each member of the board serves without compensation. While

3-23 engaged in the business of the board, each member is entitled to receive

3-24 the per diem allowance and travel expenses provided for state officers

3-25 and employees generally. The per diem allowance and travel expenses of:

3-26 (a) A member of the board who is an officer or employee of this state

3-27 or a local government thereof must be paid by the state agency or the

3-28 local government.

3-29 (b) Any other member of the board must be paid from the interest and

3-30 income earned on the money in the trust fund.

3-31 6. The health division shall provide such administrative assistance to

3-32 the board as is required to carry out the duties of the board.

3-33 Sec. 5. 1. The board of trustees shall:

3-34 (a) In accordance with the provisions set forth in subsection 4 of

3-35 section 2 of this act, develop policies and procedures for the distribution

3-36 of the interest and income earned on the money in the trust fund for

3-37 public health.

3-38 (b) After deducting authorized expenses, annually grant an amount

3-39 equal to the interest and income earned on the money in the trust fund

3-40 for public health.

3-41 (c) Develop requests for proposals for grants and disseminate

3-42 information about the related grant program.

4-1 (d) Publish an annual report of the activities of the board and the

4-2 grants made by the board. A copy of each such report must be

4-3 transmitted to the governor and to the director of the legislative counsel

4-4 bureau for transmittal to the legislature.

4-5 2. The board may take such other actions as are necessary to carry

4-6 out its duties and the provisions of sections 2 to 5, inclusive, of this act.