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 287 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. The committee on local government insurance is hereby

1-4 created. The committee consists of seven members appointed as follows:

1-5 1. One member appointed by the governing body of the Nevada

1-6 League of Cities, or its successor organization.

1-7 2. One member appointed by the governing body of the Nevada

1-8 Association of Counties, or its successor organization.

1-9 3. One member appointed by the Nevada Association of School

1-10 Boards, or its successor organization.

1-11 4. Three members appointed by the governor from lists of persons

1-12 nominated by employee organizations representing employees of local

1-13 governments that participate in the local governments’ program of group

1-14 insurance.

1-15 5. One member of the public at large appointed by the governor, who

1-16 shall serve as the chairman of the committee.

2-1 Sec. 3. The committee on local government insurance shall:

2-2 1. Establish and carry out a program to be known as the local

2-3 governments’ program of group insurance to secure group life, accident

2-4 or health insurance, or any combination of these for the benefit of

2-5 officers, employees and retired employees of local governments that

2-6 participate in the program.

2-7 2. Except as otherwise provided in this subsection, negotiate and

2-8 contract with the governing body of any local government enumerated in

2-9 NRS 287.010 which is desirous of obtaining group insurance for its

2-10 officers, employees and retired employees by participation in the local

2-11 governments’ program of group insurance.

2-12 3. Give public notice in writing of proposed changes in rates or

2-13 coverage to each participating local government that may be affected by

2-14 the changes. Notice must be provided at least 30 days before the effective

2-15 date of the changes.

2-16 4. Purchase policies of life, accident or health insurance, or any

2-17 combination of these, from any company qualified to do business in this

2-18 state for the benefit of all eligible officers, employees and retired

2-19 employees who participate in the local governments’ program of group

2-20 insurance.

2-21 5. Except as otherwise provided in this Title, develop and establish

2-22 other employee benefits as necessary.

2-23 6. Adopt such regulations and perform such other duties as the

2-24 committee determines to be necessary, including, without limitation,

2-25 regulations to establish:

2-26 (a) Fees for applications for participation in the local governments’

2-27 program of group insurance and for the late payment of premiums;

2-28 (b) Conditions for entry and reentry into the local governments’

2-29 program of group insurance by local governments enumerated in NRS

2-30 287.010; and

2-31 (c) The levels of participation in the local governments’ program of

2-32 group insurance required for officers, employees and retired employees

2-33 of participating local governments.

2-34 Sec. 4. 1. The committee on benefits shall employ an executive

2-35 officer and a chief accountant, both of whom must be selected by

2-36 majority vote of the committee. The executive officer and chief

2-37 accountant are in the unclassified service of the state and serve at the

2-38 pleasure of the committee.

2-39 2. The executive officer must:

2-40 (a) Be a graduate of a 4-year college or university with a degree in

2-41 business administration or public administration or an equivalent degree,

2-42 as determined by the committee; and

3-1 (b) Possess at least 5 years of experience in a high-level administrative

3-2 or executive capacity in the field of insurance, management of

3-3 employees’ benefits or risk management.

3-4 3. The chief accountant must be a certified public accountant.

3-5 4. The committee may delegate to the executive officer the exercise

3-6 or discharge of any power, duty or function vested in or imposed upon

3-7 the committee.

3-8 5. The chief accountant shall conduct an annual audit of the state’s

3-9 program of group insurance and perform such other duties as the

3-10 committee on benefits may require.

3-11 6. The executive officer and the chief accountant are entitled to an

3-12 annual salary fixed by the committee. The salaries of the executive

3-13 officer and the chief accountant are exempt from the limitations set forth

3-14 in NRS 281.123.

3-15 7. The executive officer and the chief accountant shall not:

3-16 (a) Except as otherwise provided in NRS 284.143, pursue any other

3-17 business or occupation or perform the duties of any other office of profit

3-18 during normal office hours unless on leave approved in advance; or

3-19 (b) Participate in any business enterprise or investment with any

3-20 vendor or provider to the state’s program of group insurance.

3-21 Sec. 5. The committee on benefits may employ such staff as is

3-22 necessary to carry out the administration of the state’s program of group

3-23 insurance, including, without limitation, the processing of claims for

3-24 benefits.

3-25 Sec. 6. NRS 287.023 is hereby amended to read as follows:

3-26 287.023 1. Whenever an officer or employee of the governing body

3-43 insurance for the first time upon retirement shall assume all costs for the

4-1 coverage. A dependent of such a retired person has the option, which may

4-2 be exercised to the same extent and in the same manner as the retired

4-3 person, to cancel or continue coverage in effect on the date the retired

4-4 person dies. The dependent is not required to continue to receive

4-5 retirement payments from the public employees’ retirement system in

4-6 order to continue coverage.

4-7 3. Except as otherwise provided in NRS 287.0235, notice of the

4-8 selection of the option must be given in writing to the last public employer

4-9 of the officer or employee within 30 days after the date of retirement or

4-10 death, as the case may be. If [no] notice is not given by that date, the

4-11 retired employee and his dependents shall be deemed to have selected the

4-12 option to cancel the coverage or not to join the [state’s program,] local

4-13 governments’ program of group insurance, as the case may be.

4-14 4. The governing body of any county, school district, municipal

4-15 corporation, political subdivision, public corporation or other public

4-16 agency of this state may pay the cost, or any part of the cost, of group

4-17 insurance and medical and hospital service coverage for persons eligible

4-18 for that coverage under subsection 1, but it must not pay a greater portion

4-19 than it does for its current officers and employees.

4-20 Sec. 7. NRS 287.025 is hereby amended to read as follows:

4-21 287.025 The governing body of any county, school district, municipal

4-37 pursuant to the provisions of Title 57 of NRS.

4-38 Sec. 8. NRS 287.040 is hereby amended to read as follows:

4-39 287.040 The provisions of NRS 287.010 to 287.040, inclusive, and

4-43 Nevada to make any contributions for the payment of any premiums or

5-1 other costs for group insurance or medical or hospital services, or upon any

5-2 officer or employee of any county, school district, municipal corporation,

5-3 political subdivision, public corporation or other public agency of this state

5-4 to accept or join any plan of group insurance or to assign his wages or

5-5 salary or to authorize deductions from his wages or salary in payment of

5-6 premiums therefor.

5-7 Sec. 9. NRS 287.043 is hereby amended to read as follows:

5-8 287.043 The committee on benefits shall:

5-42 agencies enumerated in NRS 287.010; and

6-1 (c) The levels of participation in the state’s program required for

6-2 employees of participating public agencies.

6-3 [8. Appoint an independent certified public accountant. The

6-4 accountant shall provide an annual audit of the plan and report to the

6-5 committee and the legislative commission. For the purposes of]

6-6 7. As used in this section, "employee benefits" includes any form of

6-7 compensation provided to a state employee pursuant to this Title except

6-8 federal benefits, wages earned, legal holidays, deferred compensation and

6-9 benefits available pursuant to chapter 286 of NRS.

6-10 Sec. 10. 1. This section and sections 4 and 5 of this act become

6-11 effective on July 1, 1999.

6-12 2. Sections 1, 2, 3 and 6 to 9, inclusive, of this act become effective on

6-13 January 1, 2000.