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 a

1-2 new section to read as follows:

1-3 1. If approved by the committee on benefits pursuant to this section,

1-4 a group of not less than 300 officers, employees or retired employees, or

1-5 any combination thereof, that participate in the state’s program of group

1-6 insurance may leave the state’s program and secure life, accident or

1-7 health insurance, or any combination thereof, for the group from an:

1-8 (a) Insurer that is authorized by the commissioner of insurance to

1-9 provide such insurance; or

1-10 (b) Employee benefit plan, as defined in 29 U.S.C. § 1002(3) that has

1-11 been approved by the committee on benefits. The committee on benefits

1-12 shall approve an employee benefit plan unless the committee finds that

1-13 the plan is not operated pursuant to such sound accounting and financial

1-14 management practices as to ensure that the group will continue to

1-15 receive adequate benefits.

1-16 2. Before entering into a contract with the insurer or approved

1-17 employee benefit plan, the group shall submit the proposed contract to

2-1 the committee on benefits for approval. The committee on benefits shall

2-2 approve the contract unless the departure of the group from the state’s

2-3 program would cause an increase of more than 10 percent in the costs of

2-4 premiums or contributions for the remaining participants in the state’s

2-5 program.

2-6 3. The committee on benefits shall disburse periodically to the

2-7 insurer or employee benefit plan with which a group contracts pursuant

2-8 to this section the total amount set forth in the contract for premiums or

2-9 contributions for the members of the group for that period but not to

2-10 exceed the amount appropriated to or authorized for the department,

2-11 agency, commission or public agency that employs the members of the

2-12 group for premiums or contributions for the members of the group for

2-13 that period, after deducting any administrative costs related to the group.

2-14 4. The committee on benefits shall adopt such regulations as are

2-15 necessary to carry out the provisions of this section, including, without

2-16 limitation, regulations that establish:

2-17 (a) Procedures by which a group of participants in the state’s program

2-18 of group insurance may leave the state’s program; and

2-19 (b) Conditions and procedures for reentry into the state’s program of

2-20 group insurance by persons who leave the state’s program pursuant to

2-21 this section.

2-22 Sec. 2. NRS 287.043 is hereby amended to read as follows:

2-23 287.043 [The] Except as otherwise provided in section 1 of this act,

2-43 compensation pursuant to 26 U.S.C. § 125, from any company qualified to

3-1 do business in this state or provide similar coverage through a plan of self-

3-2 insurance for the benefit of all eligible public officers, employees and

3-3 retired employees who participate in the state’s program.

3-4 5. Consult the state risk manager and obtain his advice in the

3-5 performance of the duties set forth in this section.

3-6 6. Except as otherwise provided in this Title, develop and establish

3-7 other employee benefits as necessary.

3-8 7. Adopt such regulations and perform such other duties as are

3-9 necessary to carry out the provisions of NRS 287.041 to 287.049, inclusive,

3-10 and section 1 of this act, including , without limitation, the establishment

3-11 of:

3-12 (a) Fees for applications for participation in the state’s program and for

3-13 the late payment of premiums;

3-14 (b) Conditions for entry and reentry into the state’s program by public

3-15 agencies enumerated in NRS 287.010; and

3-16 (c) The levels of participation in the state’s program required for

3-17 employees of participating public agencies.

3-18 8. Appoint an independent certified public accountant. The accountant

3-19 shall provide an annual audit of the plan and report to the committee and

3-20 the legislative commission.

3-21 For the purposes of this section, "employee benefits" includes any form of

3-22 compensation provided to a state employee pursuant to this Title except

3-23 federal benefits, wages earned, legal holidays, deferred compensation and

3-24 benefits available pursuant to chapter 286 of NRS.

3-25 Sec. 3. This act becomes effective on July 1, 1999.