Amendment No. 873

Assembly Amendment to Senate Bill No. 544 First Reprint (BDR 23-230)

Proposed by: Committee on Government Affairs

Amendment Box: Resolves conflict in section 15 with A.B. No. 227. Makes substantive changes.

Resolves Conflicts with: AB227

Amends: Summary: Title: Preamble: Joint Sponsorship:

ASSEMBLY ACTION Initial and Date | SENATE ACTION Initial and Date

Adopted Lost | Adopted Lost

Concurred In Not | Concurred In Not

Receded Not | Receded Not

Amend the bill as a whole by adding new sections designated sections 2.3 and 2.6, following sec. 2, to read as follows:

"Sec. 2.3. NRS 286.160 is hereby amended to read as follows:

286.160 1. The board shall employ an executive officer who serves at the pleasure of the board. The executive officer shall select an operations officer, investment officer, manager of information systems, administrative assistant and administrative analyst whose appointments are effective upon confirmation by the board. The operations officer, investment officer, manager of information systems, administrative assistant and administrative analyst serve at the pleasure of the executive officer.

2. The executive officer, operations officer, investment officer, manager of information systems, administrative assistant and administrative analyst are entitled to annual salaries fixed by the board with the approval of the interim retirement and benefits committee of the legislature [.] created pursuant to section 36.5 of this act. The salaries of these employees are exempt from the limitations of NRS 281.123.

3. The executive officer must:

(a) Be a graduate of a 4-year college or university with a degree in business administration or public administration or equivalent degree.

(b) Possess at least 5 years’ experience in a high level administrative or executive capacity, including responsibility for a variety of administrative functions such as retirement, insurance, investment or fiscal operations.

4. The operations officer and the investment officer must each be a graduate of a 4-year college or university with a degree in business administration or public administration or an equivalent degree.

5. Except as otherwise provided in NRS 284.143, the executive officer shall not pursue any other business or occupation or perform the duties of any other office of profit during normal office hours unless on leave approved in advance. The executive officer shall not participate in any business enterprise or investment in real or personal property if the system owns or has a direct financial interest in that enterprise or property.

Sec. 2.6. NRS 286.211 is hereby amended to read as follows:

286.211 1. The board shall, with the advice of the interim retirement and benefits committee [:] of the legislature created pursuant to section 36.5 of this act:

(a) Adopt regulations for the evaluation of requests for enrollment under the police and firemen’s retirement fund; and

(b) Determine those positions eligible under the early retirement provisions for police officers and firemen.

2. Service in any position which has not been determined by the board to be eligible does not entitle a member to early retirement as a fireman or police officer.".

Amend sec. 10, page 5, by deleting lines 26 and 27 and inserting:

"board with the approval of the interim retirement and benefits committee of the legislature created pursuant to section 36.5 of this act. The salary of the executive officer is".

Amend the bill as a whole by adding a new section designated sec. 11.5, following sec. 11, to read as follows:

"Sec. 11.5. 1. A participating state employee whose position is only authorized for 4 to 6 months every other year and who plans to return to the same or a similar position for the next period during which such a position is authorized may retain his membership in and his dependents’ coverage by the program after his employment ceases for:

(a) Three full calendar months in addition to the period of extended coverage required by federal law following the termination of employment; or

(b) Twenty-one full calendar months, if no period of extended coverage is required by federal law.

2. An employee who elects to continue his participation in the program pursuant to subsection 1 shall pay the entire premium or contribution for his insurance until the date on which he is reemployed.

3. Failure to return to the same or a similar position for any reason, whether the decision was made by the former employee or the state, does not affect the application of this section.".

Amend sec. 12, pages 5 and 6, by deleting sec. 12 and inserting:

"Sec. 12. (Deleted by amendment.)".

Amend sec. 12.5, page 6, line 38, by deleting "10" and inserting "5".

Amend sec. 12.5, page 6, line 39, after "program." by inserting:

"In determining whether to approve a proposed contract, the board shall follow the criteria set forth in the regulations adopted by the board pursuant to subsection 4 and may consider the cumulative impact of groups that have left or are proposing to leave the program. Except as otherwise provided in this section, the board has discretion in determining whether to approve a contract. If the board approves a proposed contract pursuant to this subsection, the group that submitted the proposed contract is not authorized to leave the program until 120 days after the date on which the board approves the proposed contract.".

Amend sec. 12.5, page 7, between lines 4 and 5, by inserting:

"4. The board shall adopt regulations establishing the criteria pursuant to which the board will approve proposed contracts pursuant to subsection 2.".

Amend sec. 15, page 9, by deleting lines 20 through 25 and inserting:

"2. To secure group health , [or] life or workers’ compensation insurance for its officers and employees and their dependents, participate as a member of a nonprofit cooperative association or nonprofit corporation that has been established in this state to secure such insurance for its members from an insurer licensed pursuant to the provisions of Title 57 of NRS.

3. In addition to the provisions of subsection 2, participate as a member of a nonprofit cooperative association or nonprofit corporation that has been established in this state to:

(a) Facilitate contractual arrangements for the provision of medical services to its members’ officers and employees and their dependents and for related administrative services.

(b) Procure health-related information and disseminate that information to its members’ officers and employees and their dependents.".

Amend sec. 18, pages 10 and 11, by deleting lines 11 through 42 on page 10 and lines 1 through 7 on page 11 and inserting:

"(a) One member who is an employee of the University and Community College System of Nevada, appointed by the governor upon consideration of any recommendations of organizations that represent employees of the University and Community College System of Nevada.

(b) One member who is retired from public employment, appointed by the governor upon consideration of any recommendations of organizations that represent retired public employees.

(c) Two members who are employees of the state, appointed by the governor upon consideration of any recommendations of organizations that represent state employees.

(d) One member appointed by the governor upon consideration of any recommendations of organizations that represent employees of local governments that participate in the program.

(e) One member who is employed by this state in a managerial capacity and has substantial and demonstrated experience in risk management, portfolio investment strategies or employee benefits programs appointed by the governor. The governor may appoint the executive officer of the public employees’ retirement system to fill this position.

(f) Two members who have substantial and demonstrated experience in risk management, portfolio investment strategies or employee benefits programs appointed by the governor.

(g) The director of the department of administration or his designee.

2. Of the six persons appointed to the board pursuant to paragraphs (a) to (e), inclusive, of subsection 1, at least one member must have an advanced degree in business administration, economics, accounting, insurance, risk management or health care administration, and at least two members must have education or proven experience in the management of employees’ benefits, insurance, risk management, health care administration or business administration.

3. Each person appointed as a member of the board must:

(a) Except for a member appointed pursuant to paragraph (f) of subsection 1, have been a participant in the program for at least 1 year before his appointment;

(b) Except for a member appointed pursuant to paragraph (f) of subsection 1, be a current employee of the State of Nevada or another public employer that participates in the program or a retired public employee who is a participant in the program; and".

Amend sec. 18, page 11, line 13, by deleting "section." and inserting:

"section or is removed by the governor.".

Amend sec. 18, page 11, by deleting line 19 and inserting:

"governor. If the governor wishes to remove a member from the board for any reason other than malfeasance or misdemeanor, the governor shall provide the member with written notice which states the reason for and the effective date of the removal.".

Amend sec. 20, page 13, line 9, by deleting "all applicable".

Amend sec. 20, page 13, by deleting lines 12 and 13 and inserting:

"commission. For the purposes of] interim retirement and benefits committee of the legislature created pursuant to section 36.5 of this act.".

Amend sec. 24, page 15, by deleting line 17 and inserting:

"interim retirement and benefits committee of the legislature created pursuant to section 36.5 of this act. The salaries".

Amend the bill as a whole by adding a new section designated sec. 36.5, following sec. 36, to read as follows:

"Sec. 36.5. Chapter 218 of NRS is hereby amended by adding thereto a new section to read as follows:

1. There is hereby created an interim retirement and benefits committee of the legislature to review the operation of the public employees’ retirement system and the public employees’ benefits program and to make recommendations to the public employees’ retirement board and the board of the public employees’ benefits program, the legislative commission and the legislature. The interim retirement and benefits committee consists of six members appointed as follows:

(a) Three members of the senate, one of whom is the chairman of the committee on finance during the preceding session and two of whom are appointed by the majority leader of the senate.

(b) Three members of the assembly, one of whom is the chairman of the committee on ways and means and two of whom are appointed by the speaker of the assembly.

2. The immediate past chairman of the senate standing committee on finance is the chairman of the interim retirement and benefits committee for the period ending with the convening of each odd-numbered session of the legislature. The immediate past chairman of the assembly standing committee on ways and means is the chairman of the interim retirement and benefits committee during the next legislative interim, and the chairmanship alternates between the houses of the legislature according to this pattern.

3. The interim retirement and benefits committee may exercise the powers conferred on it by law only when the legislature is not in regular or special session and shall meet at the call of the chairman.

4. The director of the legislative counsel bureau shall provide a secretary for the interim retirement and benefits committee.

5. The members of the interim retirement and benefits committee are entitled to receive the compensation provided for a majority of the members of the legislature during the first 60 days of the preceding session, the per diem allowance provided for state officers and employees generally and the travel expenses provided by NRS 218.2207 for each day of attendance at a meeting of the committee and while engaged in the business of the committee. Per diem allowances, compensation and travel expenses of the members of the committee must be paid from the legislative fund.".

Amend the bill as a whole by adding a new section designated sec. 42.5, following sec. 42, to read as follows:

"Sec. 42.5. Section 18 of this act is hereby amended to read as follows:

Sec. 18. NRS 287.041 is hereby amended to read as follows:

287.041 1. There is hereby created the board of the public employees’ benefits program. The board consists of [nine] seven members appointed as follows:

(a) One member who is an employee of the University and Community College System of Nevada, appointed by the governor upon consideration of any recommendations of organizations that represent employees of the University and Community College System of Nevada.

(b) One member who is retired from public employment, appointed by the governor upon consideration of any recommendations of organizations that represent retired public employees.

(c) Two members who are employees of the state, appointed by the governor upon consideration of any recommendations of organizations that represent state employees.

(d) One member appointed by the governor upon consideration of any recommendations of organizations that represent employees of local governments that participate in the program.

(e) One member who is employed by this state in a managerial capacity and has substantial and demonstrated experience in risk management, portfolio investment strategies or employee benefits programs appointed by the governor. The governor may appoint the executive officer of the public employees’ retirement system to fill this position.

(f) [Two members who have substantial and demonstrated experience in risk management, portfolio investment strategies or employee benefits programs appointed by the governor.

(g)] The director of the department of administration or his designee.

2. Of the six persons appointed to the board pursuant to paragraphs (a) to (e), inclusive, of subsection 1, at least one member must have an advanced degree in business administration, economics, accounting, insurance, risk management or health care administration, and at least two members must have education or proven experience in the management of employees’ benefits, insurance, risk management, health care administration or business administration.

3. Each person appointed as a member of the board must:

(a) [Except for a member appointed pursuant to paragraph (f) of subsection 1, have] Have been a participant in the program for at least 1 year before his appointment;

(b) [Except for a member appointed pursuant to paragraph (f) of subsection 1, be] Be a current employee of the State of Nevada or another public employer that participates in the program or a retired public employee who is a participant in the program; and

(c) Not be an elected officer of the State of Nevada or any of its political subdivisions.

4. Except as otherwise provided in this subsection, after the initial terms, the term of an appointed member of the board is 4 years and until his successor is appointed and takes office unless the member no longer possesses the qualifications for appointment set forth in this section or is removed by the governor. If a member loses the requisite qualifications within the last 12 months of his term, the member may serve the remainder of his term. Members are eligible for reappointment. A vacancy occurring in the membership of the board must be filled in the same manner as the original appointment.

5. The appointed members of the board serve at the pleasure of the governor. If the governor wishes to remove a member from the board for any reason other than malfeasance or misdemeanor, the governor shall provide the member with written notice which states the reason for and the effective date of the removal.".

Amend the bill as a whole by deleting sections 43 through 46 and inserting:

"Secs. 43-46. (Deleted by amendment.)".

Amend sec. 47, page 29, lines 12 and 13, by deleting:

"July 1, 1999." and inserting:

"the members of the board of the public employees’ benefits program are appointed pursuant to section 48 of Senate Bill No. 544 of this session.".

Amend sec. 47, page 29, lines 15 and 16, by deleting:

"July 1, 1999." and inserting:

"the members of the board of the public employees’ benefits program are appointed pursuant to section 48 of Senate Bill No. 544 of this session.".

Amend the bill as a whole by adding a new section designated sec. 47.5, following sec. 47, to read as follows:

"Sec. 47.5. NRS 286.113 and 287.0432 are hereby repealed.".

Amend sec. 49, page 30, by deleting lines 1 through 6 and inserting:

"Sec. 49. 1. This section and sections 41, 47 and 48 of this act become effective upon passage and approval.

2. Sections 1 to 12, inclusive, 13 to 40, inclusive, 42 and 50 of this act become effective on July 1, 1999.

3. Section 12.5 of this act becomes effective on July 1, 1999, for the purpose of adopting regulations, and on January 1, 2001, for all other purposes.

4. Section 18 of this act expires by limitation on July 1, 2003.

5. Section 42.5 of this act becomes effective on July 1, 2003.".

Amend the text of repealed sections by adding the text of NRS 286.113.

Amend the title of the bill by deleting the seventh and eighth lines and inserting:

"and the executive officer to complete continuing education; authorizing certain periodic state employees to receive extended coverage from the public employees’ benefits program; renaming the interim retirement committee and expanding its duties to include the review of the operation of the public".