Assembly Bill No. 474–Assemblymen Evans, Perkins, Dini, Arberry,
Marvel, Giunchigliani, Hettrick, Beers, Goldwater, Cegavske, Chowning,
Parks, de Braga, Price, Leslie, Segerblom, Thomas, Gibbons,
Ohrenschall, Von Tobel, Manendo, Buckley, Bache, Parnell,
Williams, Anderson, Freeman, Koivisto, McClain, Angle,
Gustavson, Claborn, Mortenson, Humke, Lee, Carpenter, Collins,
Berman, Tiffany, Neighbors, Brower and Nolan
Joint Sponsors: Senators Amodei, Carlton, Jacobsen, James, Mathews,
McGinness, Neal, O’Connell, O’Donnell, Porter, Raggio, Rawson,
Rhoads, Schneider, Shaffer, Titus, Townsend, Washington and
Wiener
CHAPTER........
AN ACT relating to state financial administration; creating the fund for a healthy Nevada;
creating the task force for the fund for a healthy Nevada; providing for subsidies to
be granted to senior citizens for pharmaceutical services; creating the trust fund for
public health; creating the board of trustees of the trust fund for public health;
providing for the allocation and use of certain proceeds from settlement agreements
and civil litigation between the State of Nevada and tobacco companies; making
appropriations; and providing other matters properly relating thereto.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
the provisions set forth as sections 2 to 20, inclusive, of this act.
Sec. 2. 1. The legislature hereby declares that its priorities in
expending the proceeds to the State of Nevada from settlement
agreements with and civil actions against manufacturers of tobacco
products are:
(a) To increase the number of Nevada students who attend and
graduate from Nevada institutions of higher education; and
(b) To assist Nevada residents in obtaining and maintaining good
health.
2. To further these priorities, the legislature hereby declares that it is
in the best interest of the residents of this state that all money received by
the State of Nevada pursuant to any settlement entered into by the State
of Nevada and a manufacturer of tobacco products and all money
recovered by the State of Nevada from a judgment in a civil action
against a manufacturer of tobacco products be dedicated solely toward
the achievement of the following goals:
(a) Increasing the number of Nevada residents who enroll in and
attend a university or community college of the University and
Community College System of Nevada;
(b) Reducing and preventing the use of tobacco products, alcohol and
illegal drugs, especially by children;
(c) Expanding the availability of health insurance and health care for
children and adults in this state, especially for children and for adults
with disabilities;
(d) Assisting senior citizens who have modest incomes in purchasing
prescription drugs and assisting those senior citizens in meeting their
needs related to health care, home care, respite care and their ability to
live independent of institutional care; and
(e) Promoting the general health of all residents of the State of
Nevada.
3. The interest and income earned on the money in the fund must,
after deducting any applicable charges, be credited to the fund. All
claims against the fund must be paid as other claims against the state are
paid.
4. Not more than 2 percent of the money in the fund may be used to
pay the costs of administering the fund.
5. The money in the fund remains in the fund and does not revert to
the state general fund at the end of any fiscal year.
6. All money that is deposited or paid into the fund is hereby
appropriated to the department and, except as otherwise provided in
paragraphs (c) and (d) of subsection 1 of section 5 of this act, may only
be expended pursuant to an allocation made by the task force for the
fund for a healthy Nevada. Money expended from the fund for a healthy
Nevada must not be used to supplant existing methods of funding that
are available to public agencies.
Sec. 4.
1. The task force for the fund for a healthy Nevada ishereby created. The membership of the task force consists of:
(a) Three members appointed by the majority leader of the senate, one
of whom must be a senator and one of whom must be a member of a
nonprofit organization dedicated to health issues in this state; and
(b) Three members appointed by the speaker of the assembly, one of
whom must be an assemblyman and one of whom must be a member of a
nonprofit organization dedicated to health issues in this state; and
(c) Three members appointed by the governor, one of whom
must have experience with and knowledge of matters relating to health
care.
Each member appointed pursuant this subsection must be a resident of
this state and must not be employed in the executive or judicial branch of
state government.
2. Each person who appoints members pursuant to subsection 1 shall
ensure that insofar as practicable, the members whom he appoints reflect
the ethnic and geographical diversity of this state.
Sec. 5.
1. The task force for the fund for a healthy Nevada shall:(a) Conduct public hearings to accept public testimony from a wide
variety of sources and perspectives regarding existing or proposed
programs that:
(1) Promote public health;
(2) Improve health services for children, senior citizens and persons
with disabilities;
(3) Reduce or prevent the use of tobacco;
(4) Reduce or prevent the abuse of and addiction to alcohol and
drugs; and
(5) Offer other general or specific information on health care in
this state.
(b) Establish a process to evaluate the health and health needs of the
residents of this state and a system to rank the health problems of the
residents of this state, including, without limitation, the specific health
problems that are endemic to urban and rural communities.
(c) Reserve not more than 30 percent of all revenues deposited in the
fund for a healthy Nevada each year for direct expenditure by the
department to pay for prescription drugs and pharmaceutical services for
senior citizens pursuant to sections 6 to 17, inclusive, of this act. The
department shall submit a quarterly report to the governor and interim
finance committee regarding the general manner in which expenditures
have been made pursuant to this paragraph and the status of the
program.
(d) Reserve not more than 30 percent of all revenues deposited in the
fund for a healthy Nevada each year for allocation by the aging services
division of the department in the form of grants for existing or new
programs that assist senior citizens with independent living, including,
without limitation, programs that provide:
(1) Respite care or relief of family caretakers;
(2) Transportation to new or existing services to assist senior
citizens in living independently; and
(3) Care in the home which allows senior citizens to remain at
home instead of in institutional care.
(e) Allocate for expenditure not more than 20 percent of all revenues
deposited in the fund for a healthy Nevada each year for programs that
prevent, reduce or treat the use of tobacco and the consequences of the
use of tobacco.
(f) Allocate for expenditure not more than 20 percent of all revenues
deposited in the fund each year for a healthy Nevada for programs that
improve health services for children and for persons with disabilities.
(g) Maximize expenditures through local, federal and private
(h) Ensure that any money expended from the fund for a healthy
Nevada will not be used to supplant existing methods of funding that are
available to public agencies.
(i) Develop policies and procedures for the administration and
distribution of grants and other expenditures to nonprofit organizations,
universities and community colleges. A condition of any such grant must
be that not more than 8 percent of the grant may be used for
administrative expenses or other indirect costs. The procedures must
require at least one competitive round of requests for proposals.
(j) To make the allocations required by paragraph (e) and (f) of
subsection 1:
(1) Prioritize and quantify the needs for these programs;
(2) Develop, solicit and accept grant applications for allocations;
(3) Conduct annual evaluations of programs to which allocations
have been awarded; and
(4) Submit annual reports concerning the programs to the governor
and the interim finance committee.
(k) Transmit a report of all findings, recommendations and
expenditures to the governor and each regular session of the legislature.
2. The task force may take such other actions as are necessary to
carry out its duties.
3. The department shall take all actions necessary to ensure that all
allocations for expenditures made by the task force are carried out as
directed by the task force.
4. To make the allocations required by paragraph (d) of subsection 1,
the aging services division of the department shall:
(a) Prioritize and quantify the needs of senior citizens for these
programs;
(b) Develop, solicit and accept grant applications for allocations;
(c) As appropriate, expand or augment existing state programs for
senior citizens upon approval of the interim finance committee;
(d) Award grants or other allocations;
(e) Conduct annual evaluations of programs to which grants or other
allocations have been awarded; and
(f) Submit annual reports concerning the grant program to the
governor and the interim finance committee.
5. The aging services division of the department shall submit each
proposed grant which would be used to expand or augment an existing
state program to the interim finance committee for approval before the
grant is awarded. The request for approval must include a description of
the proposed use of the money and the person or entity that would be
authorized to expend the money.
6. The department, on behalf of the task force, shall submit each
allocation proposed pursuant to paragraph (e) or (f) of subsection 1 of
section 5, which would be used to expand or augment an existing state
program to the interim finance committee for approval before the grant
is awarded. The request for approval must include a description of the
proposed use of the money and the person or entity that would be
authorized to expend the money.
Sec. 6.
As used in sections 6 to 17, inclusive, of this act, unless thecontext otherwise requires, the words and terms defined in sections 7, 8
and 9 of this act have the meanings ascribed to them in those sections.
Sec. 7.
"Household income" has the meaning ascribed to it in NRS361.820.
Sec. 8.
"Income" has the meaning ascribed to it in NRS 361.823.Sec. 9.
"Senior citizen" means a person who is domiciled in thisstate and is 62 years of age or older.
Sec. 10.
1. The department shall enter into contracts with privateinsurers who transact health insurance in this state to arrange for the
availability, at a reasonable cost, of policies of health insurance that
provide coverage to senior citizens for prescription drugs and
pharmaceutical services.
2. Within the limits of the money available for this purpose in the
fund for a healthy Nevada, a senior citizen who is not eligible for
Medicaid and who purchases a policy of health insurance that is made
available pursuant to subsection 1 is entitled to an annual grant from the
trust fund to subsidize a portion of the cost of that insurance if he has
been domiciled in this state for at least 1 year immediately preceding the
date of his application and his household income is within one of the
income ranges for which grants are provided pursuant to this subsection
to the extent determined by the percentage shown opposite his household
income on the following schedule:
$0 — $12,700 90
12,700 — 14,800 80
14,800 — 17,000 50
17,000 — 19,100 25
19,100 — 21,500 10
3. The amount of any subsidy granted pursuant to this section must
not exceed the annual cost of insurance that provides coverage for
prescription drugs and pharmaceutical services or $480 per year,
whichever is less.
Sec. 11.
1. A senior citizen who wishes to receive a subsidypursuant to section 10 of this act must file a request therefor with the
department.
2. The request must be made under oath and filed in such form and
content, and accompanied by such proof, as the department may
3. The department shall, within 45 days after receiving a request for
a subsidy, examine the request, grant or deny it, and if granted, shall
determine the amount of the subsidy to which the senior citizen is
entitled.
4. The department shall determine which senior citizens are eligible
to receive a subsidy pursuant to section 10 of this act and pay the subsidy
directly to an insurer with whom the department has entered into a
contract pursuant to section 10 of this act.
Sec. 12.
Any subsidy granted pursuant to section 10 of this act to asenior citizen who is not qualified for such a subsidy may be revoked by
the department. If a subsidy is so revoked, the senior citizen shall make
restitution to the department for any subsidy he has improperly received,
and the department shall take all proper actions to collect the amount of
the subsidy as a debt.
Sec. 13.
1. The department shall deny any request for a subsidyreceived pursuant to section 11 of this act to which the senior citizen is
not entitled or any amount in excess of that to which the senior citizen is
entitled.
2. The department may deny in total any request which it finds to
have been filed with fraudulent intent. If any such request has been paid
and is afterward denied, the amount of the subsidy must be repaid by the
senior citizen to the department.
3. Any amounts received by the department pursuant to this section
must be deposited with the state treasurer for credit to the fund for a
healthy Nevada.
Sec. 14.
Any person who is aggrieved by a decision of thedepartment denying a request for a subsidy submitted pursuant to section
11 of this act is entitled to judicial review thereof.
Sec. 15.
The department is responsible for the administration of theprovisions of sections 6 to 17, inclusive, of this act and may:
1. Prescribe the content and form of a request for a subsidy required
to be submitted pursuant to section 11 of this act.
2. Designate the proof that must be submitted with such a request.
3. Adopt regulations to protect the confidentiality of information
supplied by a senior citizen requesting a subsidy pursuant to section 11 of
this act.
4. Adopt such other regulations as may be required to carry out the
provisions of sections 6 to 17, inclusive, of this act.
Sec. 16.
No person may publish, disclose or use any personal orconfidential information contained in a request for a subsidy submitted
pursuant to section 11 of this act except for purposes relating to the
administration of sections 6 to 17, inclusive, of this act.
Sec. 17.
The department of human resources shall, in cooperationwith the department of taxation and the various counties in this state:
1. Combine all possible administrative procedures required for
determining those persons who are eligible for assistance pursuant to
NRS 361.800 to 361.877, inclusive, and sections 6 to 17, inclusive, of this
act;
2. Coordinate the collection of information required to carry out
those provisions in a manner that requires persons requesting assistance
to furnish information in as few reports as possible; and
3. Design forms that may be used jointly by the department of
human resources, the department of taxation and the various counties in
this state to carry out the provisions of NRS 361.800 to 361.877,
inclusive, and sections 6 to 16, inclusive, of this act.
2. The state treasurer shall administer the trust fund. As
administrator of the trust fund, the state treasurer:
(a) Shall maintain the financial records of the trust fund;
(b) Shall invest the money in the trust fund as the money in other state
funds is invested;
(c) Shall manage any account associated with the trust fund;
(d) Shall maintain any instruments that evidence investments made
with the money in the trust fund;
(e) May contract with vendors for any good or service that is
necessary to carry out the provisions of this section; and
(f) May perform any other duties necessary to administer the trust
fund.
3. The interest and income earned on the money in the trust fund is
hereby appropriated to the board of trustees of the trust fund for public
health and must, after deducting any applicable charges, be credited to
the fund and accounted for separately. All claims against the fund must
be paid as other claims against the state are paid.
4. Only the interest and income earned on the money in the trust
fund may be expended. Such expenditures may only be made for:
(a) Grants made pursuant to section 20 of this act for:
(1) The promotion of public health and programs for the prevention
of disease or illness;
(2) Research on issues related to public health; and
(3) The provision of direct health care services to children and
senior citizens;
(b) Expenses related to the operation of the board of trustees of the
trust fund; and
(c) Actual costs incurred by the health division for providing
administrative assistance to the board, but in no event may more than 2
percent of the money in the fund be used for administrative expenses or
other indirect costs.
5. The money in the trust fund remains in the fund and does not
revert to the state general fund at the end of any fiscal year.
Sec. 19.
1. The board of trustees of the trust fund for public healthis hereby created.
2. The board consists of 11 members composed of:
(a) The administrator or his designee.
(b) The state health officer or his designee.
(c) The chairman of the Nevada commission on aging or his designee.
(d) The chairman of the state board of health or his designee.
(e) The chairman of the advisory board on maternal and child health
or his designee.
(f) The superintendent of schools of the school district in this state
that has the highest number of enrolled pupils or his designee.
(g) The county health officers of the two most populous counties in
this state.
(h) One member appointed by the Nevada Association of Counties, or
its successor, who serves as a county health officer in a rural area of this
state.
(i) A representative of the University of Nevada School of Medicine
appointed by the Dean of the School of Medicine.
(j) One member appointed by the governor who possesses knowledge,
skill and experience in providing health care services.
3. The term of a member of the board who is appointed pursuant to
paragraph (h), (i) or (j) of subsection 2 is 4 years.
4. The board shall annually elect a chairman from among its
members. The board shall meet at least quarterly. A majority of the
members constitutes a quorum, and a majority of those present must
concur in any decision.
5. Each member of the board serves without compensation. While
engaged in the business of the board, each member is entitled to receive
the per diem allowance and travel expenses provided for state officers
and employees generally. The per diem allowance and travel expenses of:
(a) A member of the board who is an officer or employee of this state
or a local government thereof must be paid by the state agency or the
local government.
(b) Any other member of the board must be paid from the interest and
income earned on the money in the trust fund.
Sec. 20. 1. The board of trustees shall:
(a) In accordance with the provisions set forth in subsection 4 of
section 18 of this act, develop policies and procedures for the expenditure
of the interest and income earned on the money in the trust fund for
public health.
(b) After deducting authorized expenses, annually make grants in a
cumulative amount equal to the interest and income earned on the
money in the trust fund for public health.
(c) Develop forms for requests for proposals for grants and
disseminate information about the grant program. A condition of each
such grant must be that not more than 8 percent of the grant may be
used for administrative expenses and other indirect costs.
(d) Publish an annual report of the activities of the board and the
grants made by the board. A copy of each such report must be
transmitted to the governor and to the director of the legislative counsel
bureau for transmittal to the legislature.
2. The board may take such other actions as are necessary to carry
out its duties and the provisions of this section and sections 18 and 19 of
this act.
Sec. 21.
NRS 218.6827 is hereby amended to read as follows:Sec. 22. There is hereby appropriated the sum of $2,000,000 from the
money:
1. Received by the State of Nevada pursuant to any settlement entered
into by the State of Nevada and a manufacturer of tobacco products; or
2. Recovered by the State of Nevada from a judgment in a civil action
against a manufacturer of tobacco products,
to public broadcasting stations KNPB and KLVX to carry out the
conversion to digital television required by Federal Communications
Commission DTV Standard, MM Docket No. 87-268.
Sec. 23. 1. The money appropriated by section 22 of this act:
(a) May be used only to convert the public broadcasting system in the
State of Nevada to digital television as carried out by televisions stations
KNPB and KLVX.
(b) May be disbursed only at a ratio of $1 for every $3 of matching
money received by the television stations from federal and private sources.
2. Television stations KNPB and KLVX shall report jointly to the
Interim Finance Committee every 3 months regarding:
(a) The status of the conversion to digital television and the programs
and benefits provided to the residents of the State of Nevada; and
Sec. 24. Any remaining balance of the appropriation made by section
22 of this act must not be committed for expenditure after June 30, 2003,
and reverts to the fund for a healthy Nevada as soon as all payments of
money committed have been made.
Sec. 25. 1. There is hereby appropriated the sum of $5,000,000 from
the money:
(b) Recovered by the State of Nevada from a judgment in a civil action
against a manufacturer of tobacco products,
to the University of Nevada School of Medicine for capital improvements
required to establish a program in Las Vegas that is designed to provide
health care services to persons for whom health care is not readily
accessible in this state, including, without limitation, elderly persons,
persons who reside in the rural areas of the state, persons who are culturally
disadvantaged and persons who are at risk of contracting certain diseases.
2. Any remaining balance of the appropriation made by subsection 1
must not be committed for expenditure after completion of the capital
improvements and reverts to the fund for a healthy Nevada as soon as all
payments of money committed have been made.
Sec. 26. 1. There is hereby appropriated the sum of $5,000,000 from
the money:
(b) Recovered by the State of Nevada from a judgment in a civil action
against a manufacturer of tobacco products,
to the Rehabilitation Division of the Department of Employment, Training
and Rehabilitation for disbursement to Accessible Space, Inc. to construct
an accessible housing and supportive services complex in Clark County for
disabled persons.
2. Any remaining balance of those sums must not be committed for
expenditure after the project is completed and reverts to the fund for a
healthy Nevada as soon as all payments of money committed have been
made.
Sec. 27. 1. There is hereby appropriated the sum of $1,000,000 from
the money:
(b) Recovered by the State of Nevada from a judgment in a civil action
against a manufacturer of tobacco products,
to the office of rural health of the University of Nevada School of Medicine
for emergency medical services provided in counties whose populations are
less than 100,000, the improvement of technology used for billing by rural
hospitals, and the development of systems to provide health care services in
counties whose populations are less than 100,000 by the use of
telemedicine and other electronic means.
2. Any remaining balance of those sums must not be committed for
expenditure after the project is completed and reverts to the fund for a
healthy Nevada as soon as all payments of money committed have been
made.
Sec. 28. 1. Notwithstanding any other provisions of law to the
contrary, upon receipt of sufficient money received by the State of Nevada
pursuant to any settlement entered into by the State of Nevada and a
manufacturer of tobacco products or recovered by the State of Nevada from
a judgment in a civil action against a manufacturer of tobacco products, the
(a) First disburse the money appropriated by section 22 of this act in its
entirety, then the money appropriated by section 25 of this act in its
entirety; and
(b) Thereafter, disburse all other money appropriated from this same
source on a pro rata basis by percentage allocated by law.
2. Notwithstanding the provisions of section 3 of this act, upon receipt
of sufficient money in the fund for a healthy Nevada, the state controller
shall first disburse the money appropriated by section 26 of this act in its
entirety and then disburse the money appropriated by section 27 of this act
in its entirety. Thereafter, the state controller shall disburse all other money
appropriated from the trust fund in the manner provided by law.
Sec. 29. Notwithstanding the provisions of subsection 2 of NRS
449.465, not more than $15,000 from the amount of the fees collected
pursuant to subsection 2 of NRS 449.465 and deposited in the legislative
fund may be used for the preliminary operational support of the task force
for the fund for a healthy Nevada and for the travel expenses to be provided
to members of the task force pursuant to paragraph (b) of subsection 4 of
section 4 of this act.
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