Senate Bill No. 544–Committee on Government Affairs
(On Behalf of Department of Administration)
March 22, 1999
____________
Referred to Committee on Government Affairs
SUMMARY—Makes various changes concerning programs for public employees. (BDR 23-230)
FISCAL NOTE: Effect on Local Government: No.
Effect on the State or on Industrial Insurance: Yes.
~
EXPLANATION – Matter in
bolded italics is new; matter between brackets
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
1-1
Section 1. NRS 281.129 is hereby amended to read as follows: 281.129 Any officer of the state, except the legislative fiscal officer,1-3
who disburses money in payment of salaries and wages of officers and1-4
employees of the state may, upon written requests of the officer or1-5
employee specifying amounts, withhold those amounts and pay them to:1-6
1. Charitable organizations;1-7
2. Employee credit unions;2-1
3. Insurers, if the2-2
employees’ benefits program has approved the request;2-3
4. The United States for the purchase of savings bonds and similar2-4
obligations of the United States; and2-5
5. Employee organizations and labor organizations.2-6
The state controller may adopt regulations necessary to withhold money2-7
from the salaries or wages of officers and employees of the executive2-8
department.2-9
Sec. 2. NRS 284.355 is hereby amended to read as follows: 284.355 1. Except as otherwise provided in this section, all2-11
employees in the public service, whether in the classified or unclassified2-12
service, are entitled to sick and disability leave with pay of 1 1/4 working2-13
days for each month of service, which may be cumulative from year to year.2-14
After an employee has accumulated 90 working days of sick leave, the2-15
amount of additional unused sick leave which he is entitled to carry forward2-16
from one year to the next is limited to one-half of the unused sick leave2-17
accrued during that year, but the department may by regulation provide for2-18
subsequent use of unused sick leave accrued but not carried forward by2-19
reason of this limitation in cases where the employee is suffering from a2-20
long-term or chronic illness and has used all sick leave otherwise available2-21
to him. Upon the retirement of an employee, his termination through no2-22
fault of his own or his death while in public employment, the employee or2-23
his beneficiaries are entitled to payment for his unused sick leave in excess2-24
of 30 days, exclusive of any unused sick leave accrued but not carried2-25
forward, according to his number of years of public service, except service2-26
with a political subdivision of the state, as follows:2-27
(a) For 10 years of service or more but less than 15 years, not more than2-28
$2,500.2-29
(b) For 15 years of service or more but less than 20 years, not more than2-30
$4,000.2-31
(c) For 20 years of service or more but less than 25 years, not more than2-32
$6,000.2-33
(d) For 25 years of service or more, not more than $8,000.2-34
The department may by regulation provide for additional sick and disability2-35
leave for long-term employees and for prorated sick and disability leave for2-36
part-time employees.2-37
2. An employee entitled to payment for unused sick leave pursuant to2-38
subsection 1 may elect to receive the payment in any one or more of the2-39
following forms:2-40
(a) A lump-sum payment.2-41
(b) An advanced payment of the premiums or contributions for2-42
insurance coverage for which he is otherwise eligible pursuant to chapter2-43
287 of NRS. If the insurance coverage is terminated and the money3-1
advanced for premiums or contributions pursuant to this subsection3-2
exceeds the amount which is payable for premiums or contributions for the3-3
period for which the former employee was actually covered, the unused3-4
portion of the advanced payment must be paid promptly to the former3-5
employee or, if he is deceased, to his beneficiary.3-6
(c) The purchase of additional retirement credit, if he is otherwise3-7
eligible pursuant to chapter 286 of NRS.3-8
3. Officers and members of the faculty of the University and3-9
Community College System of Nevada are entitled to sick and disability3-10
leave as provided by the regulations adopted pursuant to subsection 2 of3-11
NRS 284.345.3-12
4. The department may by regulation provide policies concerning3-13
employees with mental or emotional disorders which:3-14
(a) Utilize a liberal approach to the granting of sick leave or leave3-15
without pay when it is necessary for them to be absent for treatment or3-16
temporary hospitalization.3-17
(b) Provide for the retention of their jobs for reasonable periods of3-18
absence, and where extended absence necessitates separation or retirement,3-19
provide for their reemployment if at all possible after recovery.3-20
(c) Protect employee benefits such as retirement, life insurance and3-21
health benefits.3-22
5. The director shall establish by regulation a schedule for the accrual3-23
of sick leave for employees who regularly work more than 40 hours per3-24
week or 80 hours biweekly. The schedule must provide for the accrual of3-25
sick leave at the same rate proportionately as employees who work a 40-3-26
hour week accrue sick leave.3-27
6. The department may investigate any instance in which it believes3-28
that an employee has taken sick or disability leave to which he was not3-29
entitled. If, after notice to the employee and a hearing, the commission3-30
determines that he has in fact taken sick or disability leave to which he was3-31
not entitled, the commission may order the forfeiture of all or part of his3-32
accrued sick leave.3-33
Sec. 3. NRS 286.615 is hereby amended to read as follows: 286.615 1. In addition to the options provided in NRS 287.023 and3-35
subject to the requirements of that section, any officer or employee of the3-36
governing body of any county, school district, municipal corporation,3-37
political subdivision, public corporation or other public agency of the State3-38
of Nevada, who retires under the conditions set forth in NRS 286.510 and,3-39
at the time of his retirement, was covered or had his dependents covered by3-40
any group insurance or medical and hospital service established pursuant to3-41
NRS 287.010 and 287.020, has the option of having the executive officer3-42
deduct and pay his premium or contribution for that group insurance or3-43
medical and hospital service coverage, as well as the amount due or to4-1
become due upon any obligation designated by the board pursuant to4-2
subsection 2, from his monthly retirement allowance until:4-3
(a) He notifies the executive officer to discontinue the deduction; or4-4
(b) Any of his dependents elect to assume the premium or contribution4-5
applicable to the dependent’s coverage before the death of such a retired4-6
person and continue coverage pursuant to NRS 287.023 after his death.4-7
2. The board may adopt regulations to carry out the provisions of4-8
subsection 1, including , but not limited to , regulations governing the4-9
number and types of obligations, amounts for the payment of which may be4-10
deducted and paid by the board at the option of the officer or employee4-11
pursuant to this section.4-12
3. The executive officer, board and system are not liable for any4-13
damages resulting from errors or omissions concerning the deductions and4-14
payment of premiums or contributions authorized pursuant to this section4-15
unless willful neglect or gross negligence is proven.4-16
Sec. 4. Chapter 287 of NRS is hereby amended by adding thereto the4-17
provisions set forth as sections 5 to 12, inclusive, of this act.4-18
Sec. 5. As used in NRS 287.041 to 287.049, inclusive, and sections 54-19
to 12, inclusive, of this act, unless the context otherwise requires, the4-20
words and terms defined in sections 6 and 7 of this act have the4-21
meanings ascribed to them in those sections.4-22
Sec. 6. "Board" means the board of the public employees’ benefits4-23
program created by NRS 287.041.4-24
Sec. 7. "Program" means the public employees’ benefits program4-25
established pursuant to subsection 1 of NRS 287.043.4-26
Sec. 8. 1. A majority of the members of the board constitutes a4-27
quorum for the transaction of business.4-28
2. The governor shall designate one of the members of the board to4-29
serve as the chairman.4-30
3. The board shall meet at least once every calendar quarter and at4-31
other times upon the call of the chairman.4-32
4. The board may meet in closed session:4-33
(a) To discuss matters relating to personnel;4-34
(b) To prepare a request for a proposal or other solicitation for bids to4-35
be released by the board for competitive bidding; or4-36
(c) As otherwise provided pursuant to chapter 241 of NRS.4-37
5. As used in this section, "request for a proposal" has the meaning4-38
ascribed to it in subsection 6 of NRS 333.020.4-39
Sec. 9. The board may reimburse a witness whom the board requests4-40
appear before it and who has expertise in a field that is relevant to the4-41
program for any expenses relating to the testimony of the witness that the4-42
board deems reasonable.5-1
Sec. 10. 1. The board shall employ an executive officer who is in5-2
the unclassified service of the state and serves at the pleasure of the5-3
board. The board may delegate to the executive officer the exercise or5-4
discharge of any power, duty or function vested in or imposed upon the5-5
board.5-6
2. The executive officer must:5-7
(a) Be a graduate of a 4-year college or university with a degree in5-8
business administration or public administration or an equivalent degree,5-9
as determined by the board; and5-10
(b) Possess at least 5 years’ experience in a high-level administrative5-11
or executive capacity in the field of insurance, management of5-12
employees’ benefits or risk management, including, without limitation,5-13
responsibility for a variety of administrative functions such as personnel,5-14
accounting, data processing or the structuring of insurance programs.5-15
3. Except as otherwise provided in NRS 284.143, the executive5-16
officer shall not pursue any other business or occupation or perform the5-17
duties of any other office of profit during normal office hours unless on5-18
leave approved in advance. The executive officer shall not participate in5-19
any business enterprise or investment with any vendor or provider to the5-20
program.5-21
4. The executive officer is entitled to an annual salary fixed by the5-22
board with the approval of the interim benefits committee created5-23
pursuant to section 12 of this act. The salary of the executive officer is5-24
exempt from the limitations set forth in NRS 281.123.5-25
Sec. 11. 1. Each member of the board and the executive officer5-26
shall complete at least 16 hours of continuing education relating to the5-27
administration of group benefits for public employees each year.5-28
2. While attending courses of continuing education, a member of the5-29
board who is a public employee and the executive officer must be granted5-30
administrative leave with pay and are entitled to receive the travel5-31
expenses provided for state officers and employees generally.5-32
3. While attending courses of continuing education, a member of the5-33
board who is not a public employee is entitled to receive the per diem5-34
allowance and travel expenses provided for state officers and employees5-35
generally.5-36
Sec. 12. 1. There is hereby created an interim benefits committee5-37
of the legislature to review the operation of the program and to make5-38
recommendations to the board, the legislative commission and the5-39
legislature. The interim benefits committee consists of six members5-40
appointed as follows:5-41
(a) Three members of the senate, one of whom is appointed by the5-42
chairman of the committee on finance during the preceding session and5-43
two of whom are appointed by the majority leader of the senate.6-1
(b) Three members of the assembly, one of whom is appointed by the6-2
chairman of the committee on ways and means and two of whom are6-3
appointed by the speaker of the assembly.6-4
2. The interim benefits committee may exercise the powers conferred6-5
on it by law only when the legislature is not in regular or special session6-6
and shall meet at the call of the chairman.6-7
3. The director of the legislative counsel bureau shall provide a6-8
secretary for the interim benefits committee.6-9
4. The members of the interim benefits committee are entitled to6-10
receive the compensation provided for a majority of the members of the6-11
legislature during the first 60 days of the preceding session, the per diem6-12
allowance provided for state officers and employees generally and the6-13
travel expenses provided by NRS 218.2207 for each day of attendance at6-14
a meeting of the committee and while engaged in the business of the6-15
committee. Per diem allowances, compensation and travel expenses of6-16
the members of the committee must be paid from the legislative fund.6-17
Sec. 13. NRS 287.023 is hereby amended to read as follows: 287.023 1. Whenever an officer or employee of the governing body6-19
of any county, school district, municipal corporation, political subdivision,6-20
public corporation or other public agency of the State of Nevada retires6-21
under the conditions set forth in NRS 286.510 or 286.620 and, at the time6-22
of his retirement, was covered or had his dependents covered by any group6-23
insurance or medical and hospital service established pursuant to NRS6-24
287.010 and 287.020, the officer or employee has the option upon6-25
retirement to cancel or continue any such group insurance or6-26
6-27
coverage or join the public employees’ benefits program to the extent that6-28
such coverage is not provided to him or a dependent by the Health6-29
Insurance for the Aged Act ,6-30
2. A retired person who continues coverage under the6-31
6-32
portion of the premium or membership costs for the coverage continued6-33
which the governing body does not pay on behalf of retired officers or6-34
employees. A person who joins the6-35
program for the first time upon retirement shall assume all costs for the6-36
coverage. A dependent of such a retired person has the option, which may6-37
be exercised to the same extent and in the same manner as the retired6-38
person, to cancel or continue coverage in effect on the date the retired6-39
person dies. The dependent is not required to continue to receive retirement6-40
payments from the public employees’ retirement system6-41
continue coverage.6-42
3. Except as otherwise provided in NRS 287.0235, notice of the6-43
selection of the option must be given in writing to the last public employer7-1
of the officer or employee within 30 days after the date of retirement or7-2
death, as the case may be. If no notice is given by that date, the retired7-3
employee and his dependents shall be deemed to have selected the option7-4
to cancel the coverage or not to join the7-5
benefits program, as the case may be.7-6
4. The governing body of any county, school district, municipal7-7
corporation, political subdivision, public corporation or other public7-8
agency of this state may pay the cost, or any part of the cost, of group7-9
insurance and medical and hospital service coverage for persons eligible7-10
for that coverage7-11
greater portion than it does for its current officers and employees.7-12
Sec. 14. NRS 287.0235 is hereby amended to read as follows: 287.0235 1. Notwithstanding the provisions of NRS 287.023 and7-14
287.045, a person or the surviving spouse of a person who did not, at the7-15
time of his retirement pursuant to the conditions set forth in NRS 286.5107-16
or 286.620, have the option to participate in the7-17
7-18
7-19
extent that such coverage is not provided to him or a dependent by the7-20
Health Insurance for the Aged Act ,7-21
(a) Providing the public employees’ retirement board with written notice7-22
of his intention to enroll in the7-23
program during a period of open enrollment;7-24
(b) Showing evidence of his good health as a condition of enrollment;7-25
(c) Accepting the7-26
public employees’ benefits program and any subsequent changes to the7-27
plan; and7-28
(d) Paying any portion of the7-29
the program in the manner set forth in NRS 286.615, which are due7-30
after the date of enrollment.7-31
The public employees’ retirement board shall, beginning on September 1,7-32
1997, have a biennial period of open enrollment between September 1 of7-33
each odd-numbered year and January 31 of each even-numbered year7-34
during which eligible retired persons may join the7-35
7-36
2. The public employees’ retirement board shall, on or before7-37
September 1, 1997, and every September 1 of each odd-numbered year7-38
thereafter, notify eligible retired persons described in subsection 1 of the7-39
period of open enrollment by:7-40
(a) Mailing a notice regarding the period of open enrollment to all7-41
retired persons who are, according to its records, eligible to join the7-42
8-1
(b) Posting a notice of the period of open enrollment at its principal8-2
office and at least three other separate prominent places, such as a library,8-3
community center or courthouse; and8-4
(c) Publicizing the period of open enrollment in any other manner8-5
reasonably calculated to inform additional eligible retired persons.8-6
3. The public employees’ retirement board shall notify the8-7
8-8
enrollment of any person on or before March 1 immediately following the8-9
period of open enrollment. The8-10
employees’ benefits program shall approve or disapprove the request for8-11
enrollment within 90 days after receipt of the request. Enrollment shall be8-12
deemed to occur on the day the request is approved.8-13
4. Enrollment in the8-14
employees’ benefits program pursuant to this section excludes claims for8-15
expenses for any condition for which medical advice, treatment or8-16
consultation was rendered within 12 months before enrollment unless:8-17
(a) The person has not received any medical advice, treatment or8-18
consultation for a period of 6 consecutive months after enrollment; or8-19
(b) The insurance coverage has been in effect more than 12 consecutive8-20
months. Sec. 15. NRS 287.025 is hereby amended to read as follows: 287.025 The governing body of any county, school district, municipal8-23
corporation, political subdivision, public corporation or other public8-24
agency of the State of Nevada may, in addition to the other powers granted8-25
in NRS 287.010 and 287.020:8-26
1. Negotiate and contract with any other such agency or with the8-27
8-28
public employees’ benefits program to secure group insurance for its8-29
officers and employees and their dependents by participation in any group8-30
insurance plan established or to be established or in the8-31
8-32
2. To secure group health insurance or related medical services for its8-33
officers and employees and their dependents, excluding industrial8-34
insurance, participate as a member of a nonprofit cooperative association or8-35
nonprofit corporation established in this state solely to purchase such8-36
insurance or medical services for its members from an insurer licensed8-37
pursuant to the provisions of Title 57 of NRS.8-38
Sec. 16. NRS 287.030 is hereby amended to read as follows: 287.030 No provisions of law prohibiting, restricting or limiting the8-40
assignment of or order for wages or salary shall be deemed in any way to8-41
prohibit, restrict or limit the powers enumerated in NRS 287.010 and9-1
287.020, nor the right and power of officers or employees to authorize and9-2
approve payment of premiums or contributions by wage and salary9-3
deductions.9-4
Sec. 17. NRS 287.040 is hereby amended to read as follows: 287.040 The provisions of NRS 287.010 to 287.040, inclusive, do not9-6
make it compulsory upon any governing body of any county, school9-7
district, municipal corporation, political subdivision, public corporation or9-8
other public agency of the State of Nevada to make any contributions for9-9
the payment of any premiums or other costs for group insurance or medical9-10
or hospital services, or upon any officer or employee of any county, school9-11
district, municipal corporation, political subdivision, public corporation or9-12
other public agency of this state to accept or join any plan of group9-13
insurance or to assign his wages or salary or to authorize deductions from9-14
his wages or salary in payment of premiums or contributions therefor.9-15
Sec. 18. NRS 287.041 is hereby amended to read as follows: 287.041 1. There is hereby created the9-17
9-18
board consists of seven members appointed as follows:9-19
9-20
9-21
9-22
9-23
9-24
9-25
(a) One member who has an advanced degree in business9-26
administration, economics, accounting, insurance, risk management or9-27
health care administration, appointed by the governor from a list of9-28
nominees submitted by organizations that represent employees of the9-29
University and Community College System of Nevada.9-30
(b) One member who is retired from employment by the State of9-31
Nevada, appointed by the governor upon consideration of any9-32
recommendations of organizations that represent retired public9-33
employees.9-34
(c) One member who is a classified employee of the state and is not a9-35
member of an employee organization that represents classified employees9-36
of the State of Nevada, appointed by the governor.9-37
(d) One member appointed by the governor from a list of nominees9-38
submitted by organizations that represent employees of the state.9-39
(e) One member appointed by the governor from lists of nominees9-40
submitted by employee organizations representing employees of local9-41
governments that participate in the program. Each such organization9-42
may submit a list of not more than three nominees.10-1
(f) One member who has substantial and demonstrated experience in10-2
risk management, portfolio investment strategies or employee benefits10-3
programs appointed by the governor. The governor may appoint the10-4
executive officer of the public employees’ retirement system to fill this10-5
position.10-6
(g) The director of the department of administration or his designee.10-7
2. A person appointed to the board pursuant to paragraphs (b) to (e),10-8
inclusive, of subsection 1 must be appointed on the basis of education or10-9
proven experience in the management of employees’ benefits, insurance,10-10
risk management, health care administration or business administration.10-11
3. Each person appointed as a member of the board must:10-12
(a) Have been a participant in the program for at least 1 year before10-13
his appointment;10-14
(b) Be a current employee of the State of Nevada or another public10-15
employer that participates in the program or a retired employee of the10-16
State of Nevada; and10-17
(c) Not be an elected officer of the State of Nevada or any of its10-18
political subdivisions.10-19
4. Except as otherwise provided in this subsection, after the initial10-20
terms, the term of an appointed member of the board is 4 years and until10-21
his successor is appointed and takes office unless the member no longer10-22
possesses the qualifications for appointment set forth in this section. If a10-23
member loses the requisite qualifications within the last 12 months of his10-24
term, the member may serve the remainder of his term. Members are10-25
eligible for reappointment. A vacancy occurring in the membership of10-26
the board must be filled in the same manner as the original appointment.10-27
5. The appointed members of the board serve at the pleasure of the10-28
appointing authority in each case.10-29
Sec. 19. NRS 287.042 is hereby amended to read as follows: 287.042 1.10-31
10-32
10-33
compensation for his services as a member of the10-34
member who is10-35
must be granted administrative leave from his duties to engage in the10-36
business of the10-37
compensation. Such leave does not reduce the amount of the member’s10-38
10-39
10-40
2. A member of the10-41
entitled to receive $80 per day for his attendance at meetings of the10-42
11-1
Sec. 20. NRS 287.043 is hereby amended to read as follows: 287.04311-3
11-4
1. The board shall:11-5
(a) Establish and carry out a program to be known as the public11-6
employees’ benefits program which:11-7
(1) Must include a program relating to group life, accident or health11-8
insurance, or any combination of these11-9
(2) May include a program to reduce taxable compensation or other11-10
forms of compensation other than deferred compensation,11-11
for the benefit of all state officers and employees and other persons who11-12
participate in the11-13
11-14
(b) Ensure that the program is funded on an actuarially sound basis11-15
and operated in accordance with sound insurance and business practices.11-16
2. In establishing and carrying out the program, the board shall:11-17
(a) Except as otherwise provided in this11-18
negotiate and contract with the governing body of any public agency11-19
enumerated in NRS 287.010 which is desirous of obtaining group insurance11-20
for its officers, employees and retired employees by participation in the11-21
11-22
shall establish separate rates and coverage for those officers, employees11-23
and retired employees based on actuarial reports.11-24
11-25
coverage to each participating public employer who may be affected by the11-26
changes. Notice must be provided at least 30 days before the effective date11-27
of the changes.11-28
11-29
combination of these, or , if applicable, a program to reduce the amount of11-30
taxable compensation pursuant to 26 U.S.C. § 125, from any company11-31
qualified to do business in this state or provide similar coverage through a11-32
plan of self-insurance established pursuant to NRS 287.0433 for the11-33
benefit of all eligible public officers, employees and retired employees who11-34
participate in the11-35
11-36
11-37
11-38
(d) Except as otherwise provided in this Title, develop and establish11-39
other employee benefits as necessary.11-40
11-41
necessary to carry out the provisions of NRS 287.041 to 287.049, inclusive,11-42
and sections 5 to 12, inclusive, of this act, including , without limitation,11-43
the establishment of:12-1
12-2
and for the late payment of premiums12-3
12-4
(2) Conditions for entry and reentry into the12-5
public agencies enumerated in NRS 287.010;12-6
12-7
employees of participating public agencies12-8
12-9
(4) Specific procedures for the determination of contested claims.12-10
(f) Appoint an independent certified public accountant. The accountant12-11
shall provide an annual audit of the12-12
12-13
interim benefits committee created by section 12 of this act.12-14
(g) Contract with an attorney who has experience in the laws relating12-15
to employee benefits. The contract must provide for the attorney to12-16
perform a biennial audit of the program to determine whether the12-17
program complies with all applicable federal and state laws relating to12-18
taxes and employee benefits and to provide the audit to the board.12-19
3. The board may use any services provided to state agencies and12-20
shall use the services of the purchasing division of the department of12-21
administration to establish and carry out the program.12-22
4. The board may make recommendations to the legislature12-23
concerning legislation that it deems necessary and appropriate regarding12-24
the program.12-25
5. The state and any other public employers that participate in the12-26
program are not liable for any obligation of the program other than12-27
indemnification of the board and its employees against liability relating12-28
to the administration of the program, subject to the limitations specified12-29
in NRS 41.0349.12-30
6. As used in this section, "employee benefits" includes any form of12-31
compensation provided to a state employee pursuant to this Title except12-32
federal benefits, wages earned, legal holidays, deferred compensation and12-33
benefits available pursuant to chapter 286 of NRS.12-34
Sec. 21. NRS 287.0433 is hereby amended to read as follows: 287.0433 The12-36
life, accident or health insurance and provide for the payment of12-37
contributions into the12-38
benefits program established pursuant to NRS 287.0435, a schedule of12-39
benefits and the disbursement of benefits from the fund. The12-40
board may reinsure any risk or any part of such a risk.12-41
12-42
13-1
Sec. 22. NRS 287.0434 is hereby amended to read as follows: 287.0434 The13-3
1. Use its assets to pay the expenses of health care for its members and13-4
covered dependents, to pay its employees’ salaries and to pay13-5
administrative and other expenses.13-6
2. Enter into contracts relating to the administration of13-7
13-8
licensed administrators and qualified actuaries.13-9
3. Enter into contracts with physicians, surgeons, hospitals, health13-10
maintenance organizations and rehabilitative facilities for medical, surgical13-11
and rehabilitative care and the evaluation, treatment and nursing care of13-12
members and covered dependents.13-13
4. Enter into contracts for the services of other experts and specialists13-14
as required by13-15
5. Charge and collect from an insurer, health maintenance organization,13-16
organization for dental care or nonprofit medical service corporation, a fee13-17
for the actual expenses incurred by the13-18
participating public employer in administering a plan of insurance offered13-19
by that insurer, organization or corporation.13-20
Sec. 23. NRS 287.0435 is hereby amended to read as follows: 287.0435 1.13-22
13-23
13-24
received for the program, including, without limitation, premiums and13-25
contributions, must be deposited in the state treasury for credit to the13-26
fund for the public employees’ benefits program which is hereby created13-27
as a trust fund. The fund must be accounted for as an internal service fund.13-28
Payments into and disbursements from the fund must be so arranged as13-29
to keep the fund solvent at all times.13-30
2. The money in the fund must be invested as other money of the state13-31
is invested and any income from investments paid into the fund for the13-32
benefit of the fund.13-33
3. Disbursements from the fund must be made as any other claims13-34
against the state are paid.13-35
4. The state treasurer may charge a reasonable fee for his services in13-36
administering the fund, but the state, the state general fund and the state13-37
treasurer are not liable to the fund for any loss sustained by the fund as a13-38
result of any investment made on behalf of the fund or any loss sustained in13-39
the operation of the13-40
13-41
13-42
13-43
14-1
Sec. 24. NRS 287.0437 is hereby amended to read as follows: 287.043714-3
14-4
14-5
14-6
14-7
1. The executive officer may appoint a quality control officer,14-8
operations officer, accounting officer, information technology systems14-9
officer and executive assistant who are in the unclassified service of the14-10
state and serve at the pleasure of the executive officer. The appointment14-11
and dismissal of the quality control officer are subject to the approval of14-12
the board.14-13
2. The quality control officer, operations officer, accounting officer14-14
and information technology systems officer must each be a graduate of a14-15
4-year college or university with a degree that is appropriate to their14-16
respective responsibilities or possess equivalent experience as determined14-17
by the board.14-18
3. The quality control officer, operations officer, accounting officer,14-19
information technology systems officer and executive assistant are14-20
entitled to annual salaries fixed by the board with the approval of the14-21
interim benefits committee created by section 12 of this act. The salaries14-22
of these employees are exempt from the limitations set forth in NRS14-23
281.123.14-24
4. The executive officer may employ such staff in the classified14-25
service of the state as are necessary for the performance of his duties,14-26
within limits of legislative appropriations or other available money. Sec. 25. NRS 287.0438 is hereby amended to read as follows: 287.0438 Except for the files of individual members and former14-29
members, the correspondence, files, minutes and books of the14-30
program are public records.14-31
Sec. 26. NRS 287.0439 is hereby amended to read as follows: 287.0439 1. A participating public employer shall, on request,14-33
furnish to the14-34
carry out the provisions of this chapter. Members of the14-35
and its employees or agents may examine under oath any officer, agent or14-36
employee of a participating public employer concerning the information.14-37
2. The books, records and payrolls of a participating public employer14-38
must be available for inspection by members of the14-39
its employees and agents to obtain any information necessary for the14-40
administration of the14-41
accuracy of the payroll and identity of employees.15-1
Sec. 27. NRS 287.044 is hereby amended to read as follows: 287.044 1. A part of the cost of the premiums or contributions for15-3
that group insurance, not to exceed the amount specified by law, applied to15-4
both group life and group accident or health coverage, for each public15-5
officer, except a senator or assemblyman, or employee electing to15-6
participate in the15-7
department, agency, commission or public agency which employs the15-8
officer or employee in whose behalf that part is paid from money15-9
appropriated to or authorized for that department, agency, commission or15-10
public agency for that purpose. Participation by the state in the cost of15-11
premiums or contributions must not exceed the amounts specified by law. If15-12
an officer or employee chooses to cover his dependents, whenever this15-13
option is made available by the15-14
pay the difference between the amount of the premium or contribution for15-15
the coverage for himself and his dependents and the amount paid by the15-16
state.15-17
2. A department, agency, commission or public agency shall not pay15-18
any part of those premiums or contributions if the group life insurance or15-19
group accident or health insurance is not approved by the15-20
15-21
Sec. 28. NRS 287.0445 is hereby amended to read as follows: 287.0445 The department, agency, commission or public agency which15-23
employed an officer or employee who:15-24
1. Was injured in the course of that employment;15-25
2. Receives compensation for a temporary total disability pursuant to15-26
NRS 616C.475; and15-27
3. Was a member of the15-28
at the time of the injury,15-29
shall pay the state’s share of the cost of the premiums15-30
15-31
for15-32
or employee is able to return to work, whichever is less. If the previous15-33
injury recurs within 1 month after the employee returns to work and the15-34
employee again receives compensation pursuant to NRS 616C.475 as a15-35
result of the previous injury, the department, agency, commission or public15-36
agency shall not, except as otherwise provided in this subsection, pay the15-37
state’s share of the cost of the premiums or contributions for the period15-38
during which the employee is unable to work as a result of the recurring15-39
previous injury. If the initial period of disability was less than 9 months, the15-40
department, agency, commission or public agency shall pay, during the15-41
recurrence, the state’s share of the costs of the premiums or contributions15-42
for a period which, when added to the initial period, equals not more than 915-43
months.16-1
Sec. 29. NRS 287.045 is hereby amended to read as follows: 287.045 1. Except as otherwise provided in this section, every officer16-3
or employee of the state is eligible to participate in the program on the first16-4
day of the month following the completion of 90 days of full-time16-5
employment.16-6
2. Professional employees of the University and Community College16-7
System of Nevada who have annual employment contracts are eligible to16-8
participate in the program on:16-9
(a) The effective dates of their respective employment contracts, if those16-10
dates are on the first day of a month; or16-11
(b) The first day of the month following the effective dates of their16-12
respective employment contracts, if those dates are not on the first day of a16-13
month.16-14
3. Every officer or employee who is employed by a participating public16-15
agency on a permanent and full-time basis on the date the agency enters16-16
into an agreement to participate in the16-17
and every officer or employee who commences his employment after that16-18
date is eligible to participate in the program on the first day of the month16-19
following the completion of 90 days of full-time employment.16-20
4. Every senator and assemblyman is eligible to participate in the16-21
program on the first day of the month following the 90th day after his initial16-22
term of office begins.16-23
5. An officer or employee of the governing body of any county, school16-24
district, municipal corporation, political subdivision, public corporation or16-25
other public agency of the State of Nevada who retires under the conditions16-26
set forth in NRS 286.510 or 286.620 and was not participating in the16-27
16-28
participate in the program 30 days after notice of the selection to participate16-29
is given pursuant to NRS 287.023 or 287.0235. The16-30
16-31
For the first year following enrollment, the rates charged must be the full16-32
actuarial costs determined by the actuary based upon the expected claims16-33
experience with these retired persons. The claims experience of these16-34
retired persons must not be commingled with the retired persons who were16-35
members of the16-36
employees of the state. After the first year following enrollment, the rates16-37
charged must be the full actuarial costs determined by the actuary based16-38
upon the past claims experience of these retired persons since enrolling.16-39
6. Notwithstanding the provisions of subsections 1, 3 and 4, if the16-40
16-41
to exclude the program from compliance with NRS 689B.340 to 689B.600,16-42
inclusive, and if the coverage under the program is provided by a health16-43
maintenance organization authorized to transact insurance in this state17-1
pursuant to chapter 695C of NRS, any affiliation period imposed by the17-2
program may not exceed the statutory limit for an affiliation period set forth17-3
in NRS 689B.500.17-4
Sec. 30. NRS 287.046 is hereby amended to read as follows: 287.046 1. Except as otherwise provided in subsection 6, any state or17-6
other participating officer or employee who elects to participate in the17-7
17-8
agency, commission or public agency that employs the officer or employee17-9
shall pay the state’s share of the cost of the premiums or contributions for17-10
the17-11
provided in NRS 287.044. Employees who elect to participate in the17-12
17-13
compensation for the payment of premiums or contributions17-14
17-15
2. The department of personnel shall pay a percentage of the base17-16
amount provided by law for that fiscal year toward the cost of the premiums17-17
or contributions for17-18
the service of the state who have continued to participate17-19
program. Except as otherwise provided in subsection 3, the percentage to17-20
be paid must be calculated as follows:17-21
(a) For those persons who retire before January 1, 1994, 100 percent of17-22
the base amount provided by law for that fiscal year.17-23
(b) For those persons who retire on or after January 1, 1994, with at17-24
least 5 years of state service, 25 percent plus an additional 7.5 percent for17-25
each year of service in excess of 5 years to a maximum of 137.5 percent,17-26
excluding service purchased pursuant to NRS 286.300, of the base amount17-27
provided by law for that fiscal year.17-28
3. If the amount calculated pursuant to subsection 2 exceeds the actual17-29
premium17-30
participant selects, the balance must be credited to the17-31
for the public employees’ benefits program created pursuant to NRS17-32
287.0435.17-33
4. For the purposes of subsection 2:17-34
(a) Credit for service must be calculated in the manner provided by17-35
chapter 286 of NRS.17-36
(b) No proration may be made for a partial year of service.17-37
5. The department shall agree through the17-38
board with the insurer for billing of remaining premiums or contributions17-39
for the retired participant and his dependents to the retired participant and17-40
to his dependents who elect to continue coverage under the17-41
18-1
6. A senator or assemblyman who elects to participate in the18-2
18-3
his insurance.18-4
Sec. 31. NRS 287.0465 is hereby amended to read as follows: 287.0465 1. If an officer or employee of the state or a dependent of18-6
such an officer or employee incurs an illness or injury for which medical18-7
services are payable under the plan for self-insurance18-8
by the18-9
under circumstances creating a legal liability in some person, other than the18-10
officer, employee or dependent, to pay all or part of the cost of those18-11
services, the18-12
officer, employee or dependent to the extent of all such costs, and may join18-13
or intervene in any action by the officer, employee or dependent or his18-14
successors in interest, to enforce that legal liability.18-15
2. If an officer, employee or dependent or his successors in interest fail18-16
or refuse to commence an action to enforce that legal liability, the18-17
18-18
notice to the officer, employee or dependent or his successors in interest, to18-19
recover all costs to which it is entitled. In any such action by the18-20
18-21
joined as a third party defendant.18-22
3. If the18-23
the officer, employee or dependent or his successors in interest as provided18-24
in subsection 1, the18-25
proceeds of any recovery from the persons liable, whether the proceeds of18-26
the recovery are by way of a judgment or settlement or otherwise. Within18-27
15 days after recovery by receipt of the proceeds of the judgment,18-28
settlement or other recovery, the officer, employee or dependent or his18-29
successors in interest shall notify the18-30
recovery and pay the18-31
pursuant to this section. The officer, employee or dependent or his18-32
successors in interest are not entitled to double recovery for the same18-33
injury.18-34
4. The officer, employee or dependent or his successors in interest18-35
shall notify the18-36
any settlement or agreement or commencing any action to enforce the legal18-37
liability referred to in subsection 1.18-38
Sec. 32. NRS 287.047 is hereby amended to read as follows: 287.047 If the retention is consistent with the terms of any agreement18-40
between the state and the insurance company which issued the policies18-41
pursuant to the program or with the plan of self-insurance18-42
program:19-1
1. A participating state employee who retires on or after July 1, 1985,19-2
may retain his membership in and his dependents’ coverage by the19-3
19-4
2. A participating legislator who retires from the service of the state or19-5
who completes 8 years of service as such may retain his membership in and19-6
his dependents’ coverage by the19-7
program.19-8
Sec. 33. NRS 287.0475 is hereby amended to read as follows: 287.0475 1. A public employee who has retired pursuant to NRS19-10
286.510 or 286.620 or a retirement program provided pursuant to NRS19-11
286.802, or the surviving spouse of such a retired public employee who is19-12
deceased may, in any even-numbered year, reinstate any insurance, except19-13
life insurance, which was provided to him and his dependents at the time of19-14
his retirement19-15
NRS 287.010 or 287.020 or the program as a public employee by:19-16
(a) Giving written notice of his intent to reinstate the insurance to the19-17
employee’s last public employer not later than January 31, of an even-19-18
numbered year;19-19
(b) Accepting the public employer’s current program or plan of19-20
insurance and any subsequent changes thereto; and19-21
(c) Paying any portion of the19-22
contributions of the public employer’s program or plan of insurance, in19-23
the manner set forth in NRS 286.615, which are due from the date of19-24
reinstatement and not paid by the public employer.19-25
The last public employer shall give the insurer notice of the reinstatement19-26
no later than March 31, of the year in which the public employee or19-27
surviving spouse gives notice of his intent to reinstate the insurance. The19-28
insurer shall approve or disapprove the request for reinstatement within 9019-29
days after the date of the request.19-30
2. Reinstatement of insurance excludes claims for expenses for any19-31
condition for which medical advice, treatment or consultation was rendered19-32
within19-33
(a) The person has not received any medical advice, treatment or19-34
consultation for a period of 6 consecutive months after the reinstatement; or19-35
(b) The reinstated insurance has been in effect more than 12 consecutive19-36
months.19-37
19-38
19-39
19-40
Sec. 34. NRS 287.048 is hereby amended to read as follows: 287.048 NRS 287.041 to 287.047, inclusive, and sections 5 to 12,19-42
inclusive, of this act, do not require any officer or employee of the State of19-43
Nevada to accept or join the20-1
program, or to assign his wages or salary to or authorize deductions from20-2
his wages or salary in payment of premiums or contributions for20-3
20-4
Sec. 35. NRS 287.049 is hereby amended to read as follows: 287.049 The cost of premiums or contributions for20-6
the program as provided in NRS 287.044 must be budgeted for as other20-7
expenditures of the state are budgeted for.20-8
Sec. 36. NRS 287.245 is hereby amended to read as follows: 287.245 1. The state may agree with any of its employees, and the20-10
board of regents of the University of Nevada may agree with any of its20-11
employees, to reduce the amount of taxable compensation due to an20-12
employee in accordance with a program established pursuant to 26 U.S.C. §20-13
125 by the20-14
benefits program.20-15
2. Political subdivisions of this state may agree with any of their20-16
employees to reduce the amount of taxable compensation due to an20-17
employee in accordance with a program established pursuant to 26 U.S.C. §20-18
125.20-19
3. The employer shall deduct an amount from the taxable20-20
compensation of an employee pursuant to the agreement between the20-21
employer and the employee.20-22
4. An employer shall not make any reduction in the taxable20-23
compensation of an employee pursuant to this section until the program20-24
established meets the requirements of 26 U.S.C. § 125 for eligibility.20-25
5. The20-26
benefits program may establish and administer a program pursuant to 2620-27
U.S.C. § 125. The20-28
(a) Create an appropriate fund for administration of money and other20-29
assets resulting from the money deducted20-30
(b) Delegate to one or more state agencies or institutions of the20-31
University and Community College System of Nevada the responsibility for20-32
administering the program for their respective employees, including20-33
without limitation:20-34
(1) Collection of money deducted;20-35
(2) Transmittal of money collected to depositories within the state20-36
designated by the20-37
(3) Payment for eligible uses.20-38
(c) Contract with a natural person, corporation, institution or other20-39
entity, directly or through a state agency or institution of the University and20-40
Community College System of Nevada, for services necessary to the20-41
administration of the plan, including20-42
(1) Consolidated billing;21-1
(2) The keeping of records for each participating employee and the21-2
program;21-3
(3) The control and safeguarding of assets;21-4
(4) Programs for communication with employees; and21-5
(5) The administration and coordination of the program.21-6
6. Each employee who participates in a program established by the21-7
21-8
this section shall pay a proportionate share of the cost to administer the21-9
program as determined by the21-10
7. The provisions of this section do not supersede, make inoperative or21-11
reduce the benefits provided by the public employees’ retirement system or21-12
by any other retirement, pension or benefit program established by law.21-13
Sec. 37. NRS 233B.039 is hereby amended to read as follows: 233B.039 1. The following agencies are entirely exempted from the21-15
requirements of this chapter:21-16
(a) The governor.21-17
(b) The department of prisons.21-18
(c) The University and Community College System of Nevada.21-19
(d) The office of the military.21-20
(e) The state gaming control board.21-21
(f) The Nevada gaming commission.21-22
(g) The welfare division of the department of human resources.21-23
(h) The state board of examiners acting pursuant to chapter 217 of NRS.21-24
(i) Except as otherwise provided in NRS 533.365, the office of the state21-25
engineer.21-26
2. Except as otherwise provided in NRS 391.323, the department of21-27
education, the21-28
benefits program and the commission on professional standards in21-29
education are subject to the provisions of this chapter for the purpose of21-30
adopting regulations but not with respect to any contested case.21-31
3. The special provisions of:21-32
(a) Chapter 612 of NRS for the distribution of regulations by and the21-33
judicial review of decisions of the employment security division of the21-34
department of employment, training and rehabilitation;21-35
(b) Chapters 616A to 617, inclusive, of NRS for the determination of21-36
contested claims;21-37
(c) Chapter 703 of NRS for the judicial review of decisions of the public21-38
utilities commission of Nevada;21-39
(d) Chapter 91 of NRS for the judicial review of decisions of the21-40
administrator of the securities division of the office of the secretary of state;21-41
and21-42
(e) NRS 90.800 for the use of summary orders in contested cases,21-43
prevail over the general provisions of this chapter.22-1
4. The provisions of NRS 233B.122, 233B.124, 233B.125 and22-2
233B.126 do not apply to the department of human resources in the22-3
adjudication of contested cases involving the issuance of letters of approval22-4
for health facilities and agencies.22-5
5. The provisions of this chapter do not apply to:22-6
(a) Any order for immediate action, including, but not limited to,22-7
quarantine and the treatment or cleansing of infected or infested animals,22-8
objects or premises, made under the authority of the state board of22-9
agriculture, the state board of health, the state board of sheep22-10
commissioners or any other agency of this state in the discharge of a22-11
responsibility for the preservation of human or animal health or for insect22-12
or pest control; or22-13
(b) An extraordinary regulation of the state board of pharmacy adopted22-14
pursuant to NRS 453.2184.22-15
6. The state board of parole commissioners is subject to the provisions22-16
of this chapter for the purpose of adopting regulations but not with respect22-17
to any contested case.22-18
Sec. 38. NRS 277.067 is hereby amended to read as follows: 277.067 1. Except as otherwise provided in subsection 2, any two or22-20
more political subdivisions of this state, agencies of the state or the22-21
University and Community College System of Nevada may enter into a22-22
cooperative agreement for the purchase of insurance or the establishment of22-23
a self-insurance reserve or fund for coverage under a plan of:22-24
(a) Casualty insurance, as that term is defined in NRS 681A.020;22-25
(b) Marine and transportation insurance, as that term is defined in NRS22-26
681A.050;22-27
(c) Property insurance, as that term is defined in NRS 681A.060;22-28
(d) Surety insurance, as that term is defined in NRS 681A.070;22-29
(e) Health insurance, as that term is defined in NRS 681A.030; or22-30
(f) Insurance for any combination of these kinds of protection.22-31
2. Any political subdivision of the state, any agency of the state or the22-32
University and Community College System of Nevada which participates in22-33
the22-34
program shall obtain the approval of the22-35
the public employees’ benefits program before it enters into a cooperative22-36
agreement for the purchase of health insurance pursuant to paragraph (e) of22-37
subsection 1.22-38
3. Any such agreement may obligate the respective parties to pledge22-39
revenues or contribute money to secure the obligations or pay the expenses22-40
of the cooperative undertaking and may provide for the establishment of a22-41
separate entity to administer the undertaking.23-1
Sec. 39. Chapter 331 of NRS is hereby amended by adding thereto a23-2
new section to read as follows:23-3
The state risk manager may employ such staff as is necessary for the23-4
performance of his duties, within limits of legislative appropriations or23-5
other available money.23-6
Sec. 40. NRS 331.184 is hereby amended to read as follows: 331.184 The state risk manager shall:23-8
1. Direct and supervise all administrative and technical activities of the23-9
risk management division.23-10
2. Determine the nature and extent of requirements for insurance, other23-11
than group life, accident or health insurance, on risks of an insurable nature23-12
of the state and any of its agencies, the premiums for which are payable in23-13
whole or in part from public money.23-14
3. Negotiate for, procure, purchase and have placed, through a licensed23-15
insurance agent or broker residing or domiciled in Nevada, or continued in23-16
effect all insurance coverages, other than employee group life, accident or23-17
health insurance, which may be reasonably obtainable, whether from23-18
insurers authorized to transact business in this state or under the surplus23-19
lines provisions of chapter 685A of NRS.23-20
4. Conduct periodic inspections of premises, property and risks to23-21
determine insurability, risk and premium rate, and submit a written report23-22
of each inspection and appraisal, together with any recommendations that23-23
appear appropriate, to the administrator of the agency most responsible for23-24
the premises, property or risk, and to the director of the department of23-25
administration.23-26
5. Provide for self-insurance if the potential loss is relatively23-27
insignificant or if the risk is highly predictable and the probability of loss is23-28
so slight that the cost of insuring the risk is not a prudent expenditure of23-29
public funds, or if insurance is unavailable or unavailable at a reasonable23-30
cost.23-31
6. Select reasonable deductibles when it appears economically23-32
advantageous to the state to do so.23-33
7. Select comprehensive and blanket coverages insuring the property of23-34
two or more state agencies when that appears economically advisable.23-35
8. Investigate and determine the reliability and financial condition of23-36
insurers, and the services they provide.23-37
9. Minimize risks by adopting and promoting programs to control23-38
losses and encourage safety.23-39
10. Perform any of the services described in subsections 2, 3 and 4 for23-40
any political subdivision of the state at the request of its managing officer23-41
or governing body.23-42
11.24-1
24-2
director of the department of administration.24-3
Sec. 41. Chapter 679B of NRS is hereby amended by adding thereto a24-4
new section to read as follows:24-5
1. The commissioner shall adopt regulations which require the use of24-6
uniform claim forms and billing codes and the ability to make24-7
compatible electronic data transfers for all insurers and administrators24-8
authorized to conduct business in this state relating to a health care plan24-9
or health insurance or providing or arranging for the provision of health24-10
care services, including, without limitation, an insurer that issues a24-11
policy of health insurance, an insurer that issues a policy of group health24-12
insurance, a carrier serving small employers, a fraternal benefit society,24-13
a hospital or medical service corporation, a health maintenance24-14
organization, a plan for dental care and a prepaid limited health service24-15
organization.24-16
2. As used in this section:24-17
(a) "Administrator" has the meaning ascribed to it in NRS 683A.025.24-18
(b) "Health care plan" means a policy, contract, certificate or24-19
agreement offered or issued by an insurer to provide, deliver, arrange24-20
for, pay for or reimburse any of the costs of health care services.24-21
Sec. 42. NRS 689B.065 is hereby amended to read as follows: 689B.065 1. A policy of group health insurance issued to replace any24-23
discontinued policy or coverage for group health insurance must:24-24
(a) Provide coverage for all persons who were covered under the24-25
previous policy or coverage on the date it was discontinued; and24-26
(b) Except as otherwise provided in subsection 2, provide benefits24-27
which are at least as extensive as the benefits provided by the previous24-28
policy or coverage, except that benefits may be reduced or excluded to the24-29
extent that such a reduction or exclusion was permissible under the terms of24-30
the previous policy or coverage,24-31
if that replacement policy is issued within 60 days after the date on which24-32
the previous policy or coverage was discontinued.24-33
2. If an employer obtains a replacement policy pursuant to subsection 124-34
to cover his employees, any benefits provided by the previous policy or24-35
coverage may be reduced if notice of the reduction is given to his24-36
employees pursuant to NRS 608.1577.24-37
3. Any insurer which issues a replacement policy pursuant to24-38
subsection 1 may submit a written request to the insurer who provided the24-39
previous policy or coverage for a statement of benefits which were24-40
provided under that policy or coverage. Upon receiving such a request, the24-41
insurer who provided the previous policy or coverage shall give a written25-1
statement to the insurer providing the replacement policy which indicates25-2
what benefits were provided and what exclusions or reductions were in25-3
effect under the previous policy or coverage.25-4
4. The provisions of this section:25-5
(a) Apply to a self-insured employer who provides health benefits to his25-6
employees and replaces those benefits with a policy of group health25-7
insurance.25-8
(b) Do not apply to the25-9
employees’ benefits program established pursuant to NRS 287.041 to25-10
287.049, inclusive25-11
Sec. 43. NRS 287.0432 is hereby repealed.25-12
Sec. 44. Section 10 of this act is hereby amended to read as follows:25-13
Sec. 10. 1. The board shall employ an executive officer who25-14
is in the unclassified service of the state and serves at the pleasure25-15
of the board. The board may delegate to the executive officer the25-16
exercise or discharge of any power, duty or function vested in or25-17
imposed upon the board.25-18
2. The executive officer must:25-19
(a) Be a graduate of a 4-year college or university with a degree25-20
in business administration or public administration or an equivalent25-21
degree, as determined by the board; and25-22
(b) Possess at least 5 years’ experience in a high-level25-23
administrative or executive capacity in the field of insurance,25-24
management of employees’ benefits or risk management, including,25-25
without limitation, responsibility for a variety of administrative25-26
functions such as personnel, accounting, data processing or the25-27
structuring of insurance programs.25-28
3. Except as otherwise provided in NRS 284.143, the executive25-29
officer shall not pursue any other business or occupation or perform25-30
the duties of any other office of profit during normal office hours25-31
unless on leave approved in advance. The executive officer shall25-32
not participate in any business enterprise or investment with any25-33
vendor or provider to the program.25-34
4. The executive officer is entitled to an annual salary fixed by25-35
the board .25-36
25-37
executive officer is exempt from the limitations set forth in NRS25-38
281.123.25-39
Sec. 45. Section 20 of this act is hereby amended to read as follows:25-40
Sec. 20. NRS 287.043 is hereby amended to read as follows:25-41
287.043 1. The board shall:25-42
(a) Establish and carry out a program to be known as the public25-43
employees’ benefits program which:26-1
(1) Must include a program relating to group life, accident or26-2
health insurance, or any combination of these; and26-3
(2) May include a program to reduce taxable compensation or26-4
other forms of compensation other than deferred compensation,26-5
for the benefit of all state officers and employees and other persons26-6
who participate in the program.26-7
(b) Ensure that the program is funded on an actuarially sound26-8
basis and operated in accordance with sound insurance and business26-9
practices.26-10
2. In establishing and carrying out the program, the board shall:26-11
(a) Except as otherwise provided in this paragraph, negotiate and26-12
contract with the governing body of any public agency enumerated26-13
in NRS 287.010 which is desirous of obtaining group insurance for26-14
its officers, employees and retired employees by participation in the26-15
program. The board shall establish separate rates and coverage for26-16
those officers, employees and retired employees based on actuarial26-17
reports.26-18
(b) Give public notice in writing of proposed changes in rates or26-19
coverage to each participating public employer who may be26-20
affected by the changes. Notice must be provided at least 30 days26-21
before the effective date of the changes.26-22
(c) Purchase policies of life, accident or health insurance, or any26-23
combination of these, or, if applicable, a program to reduce the26-24
amount of taxable compensation pursuant to 26 U.S.C. § 125, from26-25
any company qualified to do business in this state or provide similar26-26
coverage through a plan of self-insurance established pursuant to26-27
NRS 287.0433 for the benefit of all eligible public officers,26-28
employees and retired employees who participate in the program.26-29
(d) Except as otherwise provided in this Title, develop and26-30
establish other employee benefits as necessary.26-31
(e) Adopt such regulations and perform such other duties as are26-32
necessary to carry out the provisions of NRS 287.041 to 287.049,26-33
inclusive, and sections 5 to26-34
without limitation, the establishment of:26-35
(1) Fees for applications for participation in the program and26-36
for the late payment of premiums or contributions;26-37
(2) Conditions for entry and reentry into the program by26-38
public agencies enumerated in NRS 287.010;26-39
(3) The levels of participation in the program required for26-40
employees of participating public agencies; and26-41
(4) Specific procedures for the determination of contested26-42
claims.27-1
(f) Appoint an independent certified public accountant. The27-2
accountant shall provide an annual audit of the program and report27-3
to the board .27-4
27-5
(g) Contract with an attorney who has experience in the laws27-6
relating to employee benefits. The contract must provide for the27-7
attorney to perform a biennial audit of the program to determine27-8
whether the program complies with all applicable federal and state27-9
laws relating to taxes and employee benefits and to provide the27-10
audit to the board.27-11
3. The board may use any services provided to state agencies27-12
and shall use the services of the purchasing division of the27-13
department of administration to establish and carry out the program.27-14
4. The board may make recommendations to the legislature27-15
concerning legislation that it deems necessary and appropriate27-16
regarding the program.27-17
5. The state and any other public employers that participate in27-18
the program are not liable for any obligation of the program other27-19
than indemnification of the board and its employees against liability27-20
relating to the administration of the program, subject to the27-21
limitations specified in NRS 41.0349.27-22
6. As used in this section, "employee benefits" includes any27-23
form of compensation provided to a state employee pursuant to this27-24
Title except federal benefits, wages earned, legal holidays, deferred27-25
compensation and benefits available pursuant to chapter 286 of27-26
NRS.27-27
Sec. 46. Section 24 of this act is hereby amended to read as follows:27-28
Sec. 24. NRS 287.0437 is hereby amended to read as follows:27-29
287.0437 1. The executive officer may appoint a quality27-30
control officer, operations officer, accounting officer, information27-31
technology systems officer and executive assistant who are in the27-32
unclassified service of the state and serve at the pleasure of the27-33
executive officer. The appointment and dismissal of the quality27-34
control officer are subject to the approval of the board.27-35
2. The quality control officer, operations officer, accounting27-36
officer and information technology systems officer must each be a27-37
graduate of a 4-year college or university with a degree that is27-38
appropriate to their respective responsibilities or possess equivalent27-39
experience as determined by the board.27-40
3. The quality control officer, operations officer, accounting27-41
officer, information technology systems officer and executive27-42
assistant are entitled to annual salaries fixed by the board .27-43
28-1
28-2
limitations set forth in NRS 281.123.28-3
4. The executive officer may employ such staff in the classified28-4
service of the state as are necessary for the performance of his28-5
duties, within limits of legislative appropriations or other available28-6
money.28-7
Sec. 47. Section 3 of Assembly Bill No. 176 of this session is hereby28-8
amended to read as follows:28-9
Sec. 3. 1. Notwithstanding the provisions of NRS 287.041 to28-10
287.049, inclusive, to the contrary, the operation of the Committee28-11
on Benefits, created by NRS 287.041, is hereby28-12
suspended and the committee shall not transact any business or hold28-13
any meetings28-14
28-15
1999.28-16
2. The Governor, or his designee, shall administer the28-17
provisions of NRS 287.041 to 287.049, inclusive28-18
1999. For this purpose, the Governor or his designee are hereby28-19
granted all powers necessary and proper to ensure the efficient and28-20
effective operation of the plan of self-insurance for state officers28-21
and employees and all other programs and benefits authorized by28-22
NRS 287.041 to 287.049, inclusive, and shall act on behalf of the28-23
Committee on Benefits in all matters relating to any contracts or28-24
other matters to which the committee is a party.28-25
3. The State of Nevada is liable for indemnification of the28-26
Governor and his designee against liability relating to the28-27
administration of the state’s program of group insurance, subject to28-28
the limitations specified in NRS 41.0349.28-29
Sec. 48. 1. The terms of the persons who are members of the28-30
committee on benefits on June 30, 1999, expire on that date.28-31
2. As soon as practicable on or before July 1, 1999, the appointing28-32
authorities set forth in subsection 1 of NRS 287.041, as amended by this28-33
act, shall appoint members of the board. The initial appointed members of28-34
the board shall, at the first meeting of the board after their appointment,28-35
draw lots to determine which:28-36
(a) Member will serve an initial term that begins on July 1, 1999, and28-37
expires on July 1, 2000;28-38
(b) Member will serve an initial term that begins on July 1, 1999, and28-39
expires on July 1, 2001;28-40
(c) Member will serve an initial term that begins on July 1, 1999, and28-41
expires on July 1, 2002; and28-42
(d) Two members will serve initial terms that begin on July 1, 1999, and28-43
expire on July 1, 2003.29-1
Sec. 49. 1. This section and sections 41, 47 and 48 of this act29-2
become effective upon passage and approval.29-3
2. Sections 1 to 40, inclusive, 42, 43 and 50 of this act become29-4
effective on July 1, 1999.29-5
3. Sections 44, 45 and 46 of this act become effective on July 1, 2001.29-6
4. Section 12 of this act expires by limitation on July 1, 2001.29-7
Sec. 50. The legislative counsel shall:29-8
1. In preparing the reprint and supplements to the Nevada Revised29-9
Statutes, with respect to any section that is not amended by this act or is29-10
further amended by another act, appropriately change any reference to29-11
"committee on benefits" to "board of the public employees’ benefits29-12
program."29-13
2. In preparing supplements to the Nevada Administrative Code,29-14
appropriately change any reference to "committee on benefits" to "board of29-15
the public employees’ benefits program."
29-16
TEXT OF REPEALED SECTION287.0432 Committee on benefits: Procedures for contested claims.
The committee on benefits shall by regulation provide for specific
29-18
procedures for the determination of contested claims.~