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. NRS 287.010 is hereby amended to read as follows:

1-2 287.010 1. The governing body of any county, school district,

1-12 care insurance, or any combination thereof, for the benefit of such officers

2-1 and employees, and the dependents of such officers and employees, as have

2-2 authorized the purchase, from insurance companies authorized to transact

2-3 the business of such insurance in the State of Nevada, and, where

2-4 necessary, deduct from the compensation of officers and employees the

2-5 premiums upon insurance and pay the deductions upon the premiums.

2-6 (c) Provide group life, accident , [or] health or long-term care coverage

2-7 through a self-insurance reserve fund and, where necessary, deduct

2-8 contributions to the maintenance of the fund from the compensation of

2-9 officers and employees and pay the deductions into the fund. The money

2-10 accumulated for this purpose through deductions from the compensation of

2-11 officers and employees and contributions of the governing body must be

2-12 maintained as an internal service fund as defined by NRS 354.543. The

2-13 money must be deposited in a state or national bank authorized to transact

2-14 business in the State of Nevada. Any independent administrator of a fund

2-15 created under this section is subject to the licensing requirements of chapter

2-16 683A of NRS, and must be a resident of this state. Any contract with an

2-17 independent administrator must be approved by the commissioner of

2-18 insurance as to the reasonableness of administrative charges in relation to

2-19 contributions collected and benefits provided. The provisions of NRS

2-20 689B.030 to 689B.050, inclusive, apply to coverage provided pursuant to

2-21 this paragraph.

2-22 (d) Defray part or all of the cost of maintenance of a self-insurance fund

2-23 or of the premiums upon insurance. The money for contributions must be

2-24 budgeted for in accordance with the laws governing the county, school

2-25 district, municipal corporation, political subdivision, public corporation or

2-26 other public agency of the State of Nevada.

2-27 2. If a school district offers group insurance to its officers and

2-28 employees pursuant to this section, members of the board of trustees of the

2-29 school district must not be excluded from participating in the group

2-30 insurance. If the amount of the deductions from compensation required to

2-31 pay for the group insurance exceeds the compensation to which a trustee is

2-32 entitled, the difference must be paid by the trustee.

2-33 Sec. 2. NRS 287.043 is hereby amended to read as follows:

2-34 287.043 The committee on benefits shall:

2-43 287.010 which is desirous of obtaining group insurance for its officers,

3-1 employees and retired employees by participation in the state’s program of

3-2 group insurance. The committee shall establish separate rates and coverage

3-3 for those officers, employees and retired employees based on actuarial

3-4 reports.

3-5 3. Give public notice in writing of proposed changes in rates or

3-6 coverage to each participating public employer who may be affected by the

3-7 changes. Notice must be provided at least 30 days before the effective date

3-8 of the changes.

3-9 4. Purchase policies of life, accident , [or] health or long-term care

3-10 insurance, or any combination of these, or a program to reduce the amount

3-11 of taxable compensation pursuant to 26 U.S.C. § 125, from any company

3-12 qualified to do business in this state or provide similar coverage through a

3-13 plan of self-insurance for the benefit of all eligible public officers,

3-14 employees and retired employees who participate in the state’s program.

3-15 5. Consult the state risk manager and obtain his advice in the

3-16 performance of the duties set forth in this section.

3-17 6. Except as otherwise provided in this Title, develop and establish

3-18 other employee benefits as necessary.

3-19 7. Adopt such regulations and perform such other duties as are

3-20 necessary to carry out the provisions of NRS 287.041 to 287.049, inclusive,

3-21 including the establishment of:

3-22 (a) Fees for applications for participation in the state’s program and for

3-23 the late payment of premiums;

3-24 (b) Conditions for entry and reentry into the state’s program by public

3-25 agencies enumerated in NRS 287.010; and

3-26 (c) The levels of participation in the state’s program required for

3-27 employees of participating public agencies.

3-28 8. Appoint an independent certified public accountant. The accountant

3-29 shall provide an annual audit of the plan and report to the committee and

3-30 the legislative commission.

3-31 For the purposes of this section, "employee benefits" includes any form of

3-32 compensation provided to a state employee pursuant to this Title except

3-33 federal benefits, wages earned, legal holidays, deferred compensation and

3-34 benefits available pursuant to chapter 286 of NRS.

3-35 Sec. 3. NRS 287.0433 is hereby amended to read as follows:

3-36 287.0433 The committee on benefits may establish a plan of life,

3-42 solvent.

4-1 Sec. 4. NRS 287.044 is hereby amended to read as follows:

4-2 287.044 1. A part of the cost of the premiums or contributions for

4-19 benefits.

4-20 Sec. 5. NRS 331.184 is hereby amended to read as follows:

4-21 331.184 The state risk manager shall:

4-42 so slight that the cost of insuring the risk is not a prudent expenditure of

5-1 public [funds,] money, or if insurance is unavailable or unavailable at a

5-2 reasonable cost.

5-3 6. Select reasonable deductibles when it appears economically

5-4 advantageous to the state to do so.

5-5 7. Select comprehensive and blanket coverages insuring the property of

5-6 two or more state agencies when that appears economically advisable.

5-7 8. Investigate and determine the reliability and financial condition of

5-8 insurers, and the services they provide.

5-9 9. Minimize risks by adopting and promoting programs to control

5-10 losses and encourage safety.

5-11 10. Perform any of the services described in subsections 2, 3 and 4 for

5-12 any political subdivision of the state at the request of its managing officer

5-13 or governing body.

5-14 11. Act as adviser to the committee on benefits.

5-15 12. Perform any other function of risk management as directed by the

5-16 director of the department of administration.

5-17 Sec. 6. NRS 354.6145 is hereby amended to read as follows:

5-18 354.6145 The governing body of any local government may establish

5-21 and long-term care benefits on a self-insured basis.

5-22 Sec. 7. 1. There is hereby appropriated from the state general fund to

5-23 the committee on benefits the sum of $35,148,594 for the long-term care

5-24 coverage for state employees and retirees from state employment that the

5-25 committee on benefits is required to provide pursuant to NRS 287.043, as

5-26 amended by this act.

5-27 2. Any remaining balance of the appropriation made pursuant to

5-28 subsection 1 must not be committed for expenditure after July 1, 2001, and

5-29 reverts to the state general fund as soon as all payments of money

5-30 committed have been made.

5-31 Sec. 8. 1. There is hereby appropriated from the state highway fund

5-32 to the committee on benefits the sum of $5,140,624 for the long-term care

5-33 coverage for state employees and retirees from state employment that the

5-34 committee on benefits is required to provide pursuant to NRS 284.043, as

5-35 amended by this act.

5-36 2. Any remaining balance of the appropriation made pursuant to

5-37 subsection 1 must not be committed for expenditure after July 1, 2001, and

5-38 reverts to the state highway fund as soon as all payments of money

5-39 committed have been made.

5-40 Sec. 9. 1. When the committee on benefits enters into a contract for

5-41 long-term care coverage as required pursuant to NRS 287.042, as amended

5-42 by this act it shall report to the Budget Division of the Department of

5-43 Administration the amount of the contract. The Budget Division shall

6-1 assess state agencies whose budgets include the expenditure of money

6-2 received from the Federal Government and from any other sources other

6-3 than appropriation from the state general fund or the state highway fund in

6-4 an equal amount per employee that is calculated to equal the amount of the

6-5 contract attributable to those agencies, but not to exceed a total of

6-6 $16,956,048, and transfer the money to the committee on benefits for the

6-7 long-term care coverage for state employees and retirees from state

6-8 employment that the committee on benefits is required to provide pursuant

6-9 to NRS 287.043, as amended by this act.

6-10 2. Notwithstanding the provisions of NRS 353.220, each agency that

6-11 receives an assessment made pursuant to subsection 1 shall revise such

6-12 work programs as necessary to pay the assessment as soon as practicable.

6-13 Sec. 10. This act becomes effective on July 1, 1999.