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 [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).

 

AN ACT relating to governmental administration; revising the provisions governing the state’s program of group insurance and other benefits by replacing the committee on benefits with the board of the public employees’ benefits program, changing the related powers and duties, requiring the appointment of an executive officer and certain other officers, providing education and experience requirements for members of the board and appointed officers and requiring members of the board and the executive officer to complete continuing education; creating a temporary interim benefits committee of the legislature to review the operation of the public employees’ benefits program; authorizing certain public employees to secure insurance from an insurer or employee benefit plan other than through the public employees’ benefits program; removing the duty of the state risk manager to act as an adviser for group insurance and other employees’ benefits; authorizing the state risk manager to employ necessary staff to perform his duties; requiring the commissioner of insurance to adopt regulations providing for uniform claim forms and billing codes and compatible electronic data transfers relating to the provision of health care, health care plans or health insurance for certain insurers and administrators; and providing other matters properly relating thereto.

 

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:

1-2 281.129 Any officer of the state, except the legislative fiscal officer,

1-3 who disburses money in payment of salaries and wages of officers and

1-4 employees of the state may, upon written requests of the officer or

1-5 employee specifying amounts, withhold those amounts and pay them to:

2-1 1. Charitable organizations;

2-2 2. Employee credit unions;

2-3 3. Insurers, if the [committee on benefits] board of the public

2-4 employees’ benefits program has approved the request;

2-5 4. The United States for the purchase of savings bonds and similar

2-6 obligations of the United States; and

2-7 5. Employee organizations and labor organizations.

2-8 The state controller may adopt regulations necessary to withhold money

2-9 from the salaries or wages of officers and employees of the executive

2-10 department.

2-11 Sec. 2. NRS 284.355 is hereby amended to read as follows:

2-12 284.355 1. Except as otherwise provided in this section, all

2-13 employees in the public service, whether in the classified or unclassified

2-14 service, are entitled to sick and disability leave with pay of 1 1/4 working

2-15 days for each month of service, which may be cumulative from year to year.

2-16 After an employee has accumulated 90 working days of sick leave, the

2-17 amount of additional unused sick leave which he is entitled to carry forward

2-18 from one year to the next is limited to one-half of the unused sick leave

2-19 accrued during that year, but the department may by regulation provide for

2-20 subsequent use of unused sick leave accrued but not carried forward by

2-21 reason of this limitation in cases where the employee is suffering from a

2-22 long-term or chronic illness and has used all sick leave otherwise available

2-23 to him. Upon the retirement of an employee, his termination through no

2-24 fault of his own or his death while in public employment, the employee or

2-25 his beneficiaries are entitled to payment for his unused sick leave in excess

2-26 of 30 days, exclusive of any unused sick leave accrued but not carried

2-27 forward, according to his number of years of public service, except service

2-28 with a political subdivision of the state, as follows:

2-29 (a) For 10 years of service or more but less than 15 years, not more than

2-30 $2,500.

2-31 (b) For 15 years of service or more but less than 20 years, not more than

2-32 $4,000.

2-33 (c) For 20 years of service or more but less than 25 years, not more than

2-34 $6,000.

2-35 (d) For 25 years of service or more, not more than $8,000.

2-36 The department may by regulation provide for additional sick and disability

2-37 leave for long-term employees and for prorated sick and disability leave for

2-38 part-time employees.

2-39 2. An employee entitled to payment for unused sick leave pursuant to

2-40 subsection 1 may elect to receive the payment in any one or more of the

2-41 following forms:

2-42 (a) A lump-sum payment.

3-1 (b) An advanced payment of the premiums or contributions for

3-2 insurance coverage for which he is otherwise eligible pursuant to chapter

3-3 287 of NRS. If the insurance coverage is terminated and the money

3-4 advanced for premiums or contributions pursuant to this subsection

3-5 exceeds the amount which is payable for premiums or contributions for the

3-6 period for which the former employee was actually covered, the unused

3-7 portion of the advanced payment must be paid promptly to the former

3-8 employee or, if he is deceased, to his beneficiary.

3-9 (c) The purchase of additional retirement credit, if he is otherwise

3-10 eligible pursuant to chapter 286 of NRS.

3-11 3. Officers and members of the faculty of the University and

3-12 Community College System of Nevada are entitled to sick and disability

3-13 leave as provided by the regulations adopted pursuant to subsection 2 of

3-14 NRS 284.345.

3-15 4. The department may by regulation provide policies concerning

3-16 employees with mental or emotional disorders which:

3-17 (a) Utilize a liberal approach to the granting of sick leave or leave

3-18 without pay when it is necessary for them to be absent for treatment or

3-19 temporary hospitalization.

3-20 (b) Provide for the retention of their jobs for reasonable periods of

3-21 absence, and where extended absence necessitates separation or retirement,

3-22 provide for their reemployment if at all possible after recovery.

3-23 (c) Protect employee benefits such as retirement, life insurance and

3-24 health benefits.

3-25 5. The director shall establish by regulation a schedule for the accrual

3-26 of sick leave for employees who regularly work more than 40 hours per

3-27 week or 80 hours biweekly. The schedule must provide for the accrual of

3-28 sick leave at the same rate proportionately as employees who work a 40-

3-29 hour week accrue sick leave.

3-30 6. The department may investigate any instance in which it believes

3-31 that an employee has taken sick or disability leave to which he was not

3-32 entitled. If, after notice to the employee and a hearing, the commission

3-33 determines that he has in fact taken sick or disability leave to which he was

3-34 not entitled, the commission may order the forfeiture of all or part of his

3-35 accrued sick leave.

3-36 Sec. 3. NRS 286.615 is hereby amended to read as follows:

3-37 286.615 1. In addition to the options provided in NRS 287.023 and

3-38 subject to the requirements of that section, any officer or employee of the

3-39 governing body of any county, school district, municipal corporation,

3-40 political subdivision, public corporation or other public agency of the State

3-41 of Nevada, who retires under the conditions set forth in NRS 286.510 and,

3-42 at the time of his retirement, was covered or had his dependents covered by

3-43 any group insurance or medical and hospital service established pursuant to

4-1 NRS 287.010 and 287.020, has the option of having the executive officer

4-2 deduct and pay his premium or contribution for that group insurance or

4-3 medical and hospital service coverage, as well as the amount due or to

4-4 become due upon any obligation designated by the board pursuant to

4-5 subsection 2, from his monthly retirement allowance until:

4-6 (a) He notifies the executive officer to discontinue the deduction; or

4-7 (b) Any of his dependents elect to assume the premium or contribution

4-8 applicable to the dependent’s coverage before the death of such a retired

4-9 person and continue coverage pursuant to NRS 287.023 after his death.

4-10 2. The board may adopt regulations to carry out the provisions of

4-11 subsection 1, including , but not limited to , regulations governing the

4-12 number and types of obligations, amounts for the payment of which may be

4-13 deducted and paid by the board at the option of the officer or employee

4-14 pursuant to this section.

4-15 3. The executive officer, board and system are not liable for any

4-16 damages resulting from errors or omissions concerning the deductions and

4-17 payment of premiums or contributions authorized pursuant to this section

4-18 unless willful neglect or gross negligence is proven.

4-19 Sec. 4. Chapter 287 of NRS is hereby amended by adding thereto the

4-20 provisions set forth as sections 5 to 12.5, inclusive, of this act.

4-21 Sec. 5. As used in NRS 287.041 to 287.049, inclusive, and sections 5

4-22 to 12.5, inclusive, of this act, unless the context otherwise requires, the

4-23 words and terms defined in sections 6 and 7 of this act have the

4-24 meanings ascribed to them in those sections.

4-25 Sec. 6. "Board" means the board of the public employees’ benefits

4-26 program created by NRS 287.041.

4-27 Sec. 7. "Program" means the public employees’ benefits program

4-28 established pursuant to subsection 1 of NRS 287.043.

4-29 Sec. 8. 1. A majority of the members of the board constitutes a

4-30 quorum for the transaction of business.

4-31 2. The governor shall designate one of the members of the board to

4-32 serve as the chairman.

4-33 3. The board shall meet at least once every calendar quarter and at

4-34 other times upon the call of the chairman.

4-35 4. The board may meet in closed session:

4-36 (a) To discuss matters relating to personnel;

4-37 (b) To prepare a request for a proposal or other solicitation for bids to

4-38 be released by the board for competitive bidding; or

4-39 (c) As otherwise provided pursuant to chapter 241 of NRS.

4-40 5. As used in this section, "request for a proposal" has the meaning

4-41 ascribed to it in subsection 6 of NRS 333.020.

5-1 Sec. 9. The board may reimburse a witness whom the board requests

5-2 appear before it and who has expertise in a field that is relevant to the

5-3 program for any expenses relating to the testimony of the witness that the

5-4 board deems reasonable.

5-5 Sec. 10. 1. The board shall employ an executive officer who is in

5-6 the unclassified service of the state and serves at the pleasure of the

5-7 board. The board may delegate to the executive officer the exercise or

5-8 discharge of any power, duty or function vested in or imposed upon the

5-9 board.

5-10 2. The executive officer must:

5-11 (a) Be a graduate of a 4-year college or university with a degree in

5-12 business administration or public administration or an equivalent degree,

5-13 as determined by the board; and

5-14 (b) Possess at least 5 years’ experience in a high-level administrative

5-15 or executive capacity in the field of insurance, management of

5-16 employees’ benefits or risk management, including, without limitation,

5-17 responsibility for a variety of administrative functions such as personnel,

5-18 accounting, data processing or the structuring of insurance programs.

5-19 3. Except as otherwise provided in NRS 284.143, the executive

5-20 officer shall not pursue any other business or occupation or perform the

5-21 duties of any other office of profit during normal office hours unless on

5-22 leave approved in advance. The executive officer shall not participate in

5-23 any business enterprise or investment with any vendor or provider to the

5-24 program.

5-25 4. The executive officer is entitled to an annual salary fixed by the

5-26 board with the approval of the interim benefits committee created

5-27 pursuant to section 12 of this act. The salary of the executive officer is

5-28 exempt from the limitations set forth in NRS 281.123.

5-29 Sec. 11. 1. Each member of the board and the executive officer

5-30 shall complete at least 16 hours of continuing education relating to the

5-31 administration of group benefits for public employees each year.

5-32 2. While attending courses of continuing education, a member of the

5-33 board who is a public employee and the executive officer must be granted

5-34 administrative leave with pay and are entitled to receive the travel

5-35 expenses provided for state officers and employees generally.

5-36 3. While attending courses of continuing education, a member of the

5-37 board who is not a public employee is entitled to receive the per diem

5-38 allowance and travel expenses provided for state officers and employees

5-39 generally.

5-40 Sec. 12. 1. There is hereby created an interim benefits committee

5-41 of the legislature to review the operation of the program and to make

5-42 recommendations to the board, the legislative commission and the

6-1 legislature. The interim benefits committee consists of six members

6-2 appointed as follows:

6-3 (a) Three members of the senate, one of whom is appointed by the

6-4 chairman of the committee on finance during the preceding session and

6-5 two of whom are appointed by the majority leader of the senate.

6-6 (b) Three members of the assembly, one of whom is appointed by the

6-7 chairman of the committee on ways and means and two of whom are

6-8 appointed by the speaker of the assembly.

6-9 2. The interim benefits committee may exercise the powers conferred

6-10 on it by law only when the legislature is not in regular or special session

6-11 and shall meet at the call of the chairman.

6-12 3. The director of the legislative counsel bureau shall provide a

6-13 secretary for the interim benefits committee.

6-14 4. The members of the interim benefits committee are entitled to

6-15 receive the compensation provided for a majority of the members of the

6-16 legislature during the first 60 days of the preceding session, the per diem

6-17 allowance provided for state officers and employees generally and the

6-18 travel expenses provided by NRS 218.2207 for each day of attendance at

6-19 a meeting of the committee and while engaged in the business of the

6-20 committee. Per diem allowances, compensation and travel expenses of

6-21 the members of the committee must be paid from the legislative fund.

6-22 Sec. 12.5. 1. If approved by the board pursuant to this section, a

6-23 group of not less than 300 officers, employees or retired employees, or

6-24 any combination thereof, that participate in the program may leave the

6-25 program and secure life, accident or health insurance, or any

6-26 combination thereof, for the group from an:

6-27 (a) Insurer that is authorized by the commissioner of insurance to

6-28 provide such insurance; or

6-29 (b) Employee benefit plan, as defined in 29 U.S.C. § 1002(3) that has

6-30 been approved by the board. The board shall approve an employee

6-31 benefit plan unless the board finds that the plan is not operated pursuant

6-32 to such sound accounting and financial management practices as to

6-33 ensure that the group will continue to receive adequate benefits.

6-34 2. Before entering into a contract with the insurer or approved

6-35 employee benefit plan, the group shall submit the proposed contract to

6-36 the board for approval. The board may approve the contract unless the

6-37 departure of the group from the program would cause an increase of

6-38 more than 10 percent in the costs of premiums or contributions for the

6-39 remaining participants in the program.

6-40 3. The board shall disburse periodically to the insurer or employee

6-41 benefit plan with which a group contracts pursuant to this section the

6-42 total amount set forth in the contract for premiums or contributions for

6-43 the members of the group for that period but not to exceed the amount

7-1 appropriated to or authorized for the department, agency, commission or

7-2 public agency that employs the members of the group for premiums or

7-3 contributions for the members of the group for that period, after

7-4 deducting any administrative costs related to the group.

7-5 Sec. 13. NRS 287.023 is hereby amended to read as follows:

7-6 287.023 1. Whenever an officer or employee of the governing body

7-7 of any county, school district, municipal corporation, political subdivision,

7-8 public corporation or other public agency of the State of Nevada retires

7-9 under the conditions set forth in NRS 286.510 or 286.620 and, at the time

7-10 of his retirement, was covered or had his dependents covered by any group

7-11 insurance or medical and hospital service established pursuant to NRS

7-12 287.010 and 287.020, the officer or employee has the option upon

7-13 retirement to cancel or continue any such group insurance or [join the

7-14 state’s program of group insurance or] medical and hospital service

7-15 coverage or join the public employees’ benefits program to the extent that

7-16 such coverage is not provided to him or a dependent by the Health

7-17 Insurance for the Aged Act , [(] 42 U.S.C. §§ 1395 et seq. [).]

7-18 2. A retired person who continues coverage under the [state’s program

7-19 of group insurance] public employees’ benefits program shall assume the

7-20 portion of the premium or membership costs for the coverage continued

7-21 which the governing body does not pay on behalf of retired officers or

7-22 employees. A person who joins the [state’s] public employees’ benefits

7-23 program for the first time upon retirement shall assume all costs for the

7-24 coverage. A dependent of such a retired person has the option, which may

7-25 be exercised to the same extent and in the same manner as the retired

7-26 person, to cancel or continue coverage in effect on the date the retired

7-27 person dies. The dependent is not required to continue to receive retirement

7-28 payments from the public employees’ retirement system [in order] to

7-29 continue coverage.

7-30 3. Except as otherwise provided in NRS 287.0235, notice of the

7-31 selection of the option must be given in writing to the last public employer

7-32 of the officer or employee within 30 days after the date of retirement or

7-33 death, as the case may be. If no notice is given by that date, the retired

7-34 employee and his dependents shall be deemed to have selected the option

7-35 to cancel the coverage or not to join the [state’s] public employees’

7-36 benefits program, as the case may be.

7-37 4. The governing body of any county, school district, municipal

7-38 corporation, political subdivision, public corporation or other public

7-39 agency of this state may pay the cost, or any part of the cost, of group

7-40 insurance and medical and hospital service coverage for persons eligible

7-41 for that coverage [under] pursuant to subsection 1, but it must not pay a

7-42 greater portion than it does for its current officers and employees.

8-1 Sec. 14. NRS 287.0235 is hereby amended to read as follows:

8-2 287.0235 1. Notwithstanding the provisions of NRS 287.023 and

8-3 287.045, a person or the surviving spouse of a person who did not, at the

8-4 time of his retirement pursuant to the conditions set forth in NRS 286.510

8-5 or 286.620, have the option to participate in the [state’s program of group

8-6 insurance] public employees’ benefits program may join the [state’s

8-7 program of group insurance,] public employees’ benefits program, to the

8-8 extent that such coverage is not provided to him or a dependent by the

8-9 Health Insurance for the Aged Act , [(] 42 U.S.C. §§ 1395 et seq. , [),] by:

8-10 (a) Providing the public employees’ retirement board with written notice

8-11 of his intention to enroll in the [state’s] public employees’ benefits

8-12 program during a period of open enrollment;

8-13 (b) Showing evidence of his good health as a condition of enrollment;

8-14 (c) Accepting the [state program’s] current plan of insurance of the

8-15 public employees’ benefits program and any subsequent changes to the

8-16 plan; and

8-17 (d) Paying any portion of the [policy’s] premiums or contributions for

8-18 the program in the manner set forth in NRS 286.615, which are due [from]

8-19 after the date of enrollment.

8-20 The public employees’ retirement board shall, beginning on September 1,

8-21 1997, have a biennial period of open enrollment between September 1 of

8-22 each odd-numbered year and January 31 of each even-numbered year

8-23 during which eligible retired persons may join the [state’s program of group

8-24 insurance] public employees’ benefits program pursuant to this section.

8-25 2. The public employees’ retirement board shall, on or before

8-26 September 1, 1997, and every September 1 of each odd-numbered year

8-27 thereafter, notify eligible retired persons described in subsection 1 of the

8-28 period of open enrollment by:

8-29 (a) Mailing a notice regarding the period of open enrollment to all

8-30 retired persons who are, according to its records, eligible to join the [state’s

8-31 program of group insurance;] public employees’ benefits program;

8-32 (b) Posting a notice of the period of open enrollment at its principal

8-33 office and at least three other separate prominent places, such as a library,

8-34 community center or courthouse; and

8-35 (c) Publicizing the period of open enrollment in any other manner

8-36 reasonably calculated to inform additional eligible retired persons.

8-37 3. The public employees’ retirement board shall notify the [committee

8-38 on benefits] board of the public employees’ benefits program of the

8-39 enrollment of any person on or before March 1 immediately following the

8-40 period of open enrollment. The [committee on benefits] board of the public

8-41 employees’ benefits program shall approve or disapprove the request for

8-42 enrollment within 90 days after receipt of the request. Enrollment shall be

8-43 deemed to occur on the day the request is approved.

9-1 4. Enrollment in the [state’s program of group insurance] public

9-2 employees’ benefits program pursuant to this section excludes claims for

9-3 expenses for any condition for which medical advice, treatment or

9-4 consultation was rendered within 12 months before enrollment unless:

9-5 (a) The person has not received any medical advice, treatment or

9-6 consultation for a period of 6 consecutive months after enrollment; or

9-7 (b) The insurance coverage has been in effect more than 12 consecutive

9-8 months.

9-9 Sec. 15. NRS 287.025 is hereby amended to read as follows:

9-10 287.025 The governing body of any county, school district, municipal

9-11 corporation, political subdivision, public corporation or other public

9-12 agency of the State of Nevada may, in addition to the other powers granted

9-13 in NRS 287.010 and 287.020:

9-14 1. Negotiate and contract with any other such agency or with the

9-15 [committee on benefits for the state’s group insurance plan] board of the

9-16 public employees’ benefits program to secure group insurance for its

9-17 officers and employees and their dependents by participation in any group

9-18 insurance plan established or to be established or in the [state’s group

9-19 insurance plan;] public employees’ benefits program; and

9-20 2. To secure group health insurance or related medical services for its

9-21 officers and employees and their dependents, excluding industrial

9-22 insurance, participate as a member of a nonprofit cooperative association or

9-23 nonprofit corporation established in this state solely to purchase such

9-24 insurance or medical services for its members from an insurer licensed

9-25 pursuant to the provisions of Title 57 of NRS.

9-26 Sec. 16. NRS 287.030 is hereby amended to read as follows:

9-27 287.030 No provisions of law prohibiting, restricting or limiting the

9-28 assignment of or order for wages or salary shall be deemed in any way to

9-29 prohibit, restrict or limit the powers enumerated in NRS 287.010 and

9-30 287.020, nor the right and power of officers or employees to authorize and

9-31 approve payment of premiums or contributions by wage and salary

9-32 deductions.

9-33 Sec. 17. NRS 287.040 is hereby amended to read as follows:

9-34 287.040 The provisions of NRS 287.010 to 287.040, inclusive, do not

9-35 make it compulsory upon any governing body of any county, school

9-36 district, municipal corporation, political subdivision, public corporation or

9-37 other public agency of the State of Nevada to make any contributions for

9-38 the payment of any premiums or other costs for group insurance or medical

9-39 or hospital services, or upon any officer or employee of any county, school

9-40 district, municipal corporation, political subdivision, public corporation or

9-41 other public agency of this state to accept or join any plan of group

9-42 insurance or to assign his wages or salary or to authorize deductions from

9-43 his wages or salary in payment of premiums or contributions therefor.

10-1 Sec. 18. NRS 287.041 is hereby amended to read as follows:

10-2 287.041 1. There is hereby created the [committee on benefits to be

10-3 composed of five] board of the public employees’ benefits program. The

10-4 board consists of nine members appointed as follows:

10-5 [1. Two members must be selected by the board of directors of the

10-6 State of Nevada Employees Association.

10-7 2. One member must be the director of the department of

10-8 administration.

10-9 3. Two members, one of whom must be an employee retired from state

10-10 service, must be appointed by the governor.]

10-11 (a) One member who has an advanced degree in business

10-12 administration, economics, accounting, insurance, risk management or

10-13 health care administration, appointed by the governor from a list of

10-14 nominees submitted by organizations that represent employees of the

10-15 University and Community College System of Nevada.

10-16 (b) One member who is retired from employment by the State of

10-17 Nevada, appointed by the governor upon consideration of any

10-18 recommendations of organizations that represent retired public

10-19 employees.

10-20 (c) One member who is a classified employee of the state and is not a

10-21 member of an employee organization that represents classified employees

10-22 of the State of Nevada, appointed by the governor.

10-23 (d) One member appointed by the governor from a list of nominees

10-24 submitted by organizations that represent employees of the state.

10-25 (e) One member appointed by the governor from lists of nominees

10-26 submitted by employee organizations representing employees of local

10-27 governments that participate in the program. Each such organization

10-28 may submit a list of not more than three nominees.

10-29 (f) One member who has substantial and demonstrated experience in

10-30 risk management, portfolio investment strategies or employee benefits

10-31 programs appointed by the governor. The governor may appoint the

10-32 executive officer of the public employees’ retirement system to fill this

10-33 position.

10-34 (g) Two members who have substantial and demonstrated experience

10-35 in risk management, portfolio investment strategies or employee benefits

10-36 programs appointed by the governor.

10-37 (h) The director of the department of administration or his designee.

10-38 2. A person appointed to the board pursuant to paragraphs (b) to (e),

10-39 inclusive, of subsection 1 must be appointed on the basis of education or

10-40 proven experience in the management of employees’ benefits, insurance,

10-41 risk management, health care administration or business administration.

10-42 3. Each person appointed as a member of the board must:

11-1 (a) Except for a member appointed pursuant to paragraph (g) of

11-2 subsection 2, have been a participant in the program for at least 1 year

11-3 before his appointment;

11-4 (b) Except for a member appointed pursuant to paragraph (g) of

11-5 subsection 2, be a current employee of the State of Nevada or another

11-6 public employer that participates in the program or a retired employee of

11-7 the State of Nevada; and

11-8 (c) Not be an elected officer of the State of Nevada or any of its

11-9 political subdivisions.

11-10 4. Except as otherwise provided in this subsection, after the initial

11-11 terms, the term of an appointed member of the board is 4 years and until

11-12 his successor is appointed and takes office unless the member no longer

11-13 possesses the qualifications for appointment set forth in this section. If a

11-14 member loses the requisite qualifications within the last 12 months of his

11-15 term, the member may serve the remainder of his term. Members are

11-16 eligible for reappointment. A vacancy occurring in the membership of

11-17 the board must be filled in the same manner as the original appointment.

11-18 5. The appointed members of the board serve at the pleasure of the

11-19 appointing authority in each case.

11-20 Sec. 19. NRS 287.042 is hereby amended to read as follows:

11-21 287.042 1. [A majority of the members of the committee on benefits

11-22 constitutes a quorum for the transaction of business.

11-23 2.] No member who is a public employee may receive any

11-24 compensation for his services as a member of the [committee.] board. Any

11-25 member who is [employed in the service of the state] a public employee

11-26 must be granted administrative leave from his duties to engage in the

11-27 business of the [committee] board without loss of his regular

11-28 compensation. Such leave does not reduce the amount of the member’s

11-29 [annual leave.

11-30 3.] other accrued leave.

11-31 2. A member of the [committee] board who is not a public employee is

11-32 entitled to receive $80 per day for his attendance at meetings of the

11-33 [committee.] board.

11-34 Sec. 20. NRS 287.043 is hereby amended to read as follows:

11-35 287.043 [The committee on benefits shall:

11-36 1. Act as an advisory body on matters]

11-37 1. The board shall:

11-38 (a) Establish and carry out a program to be known as the public

11-39 employees’ benefits program which:

11-40 (1) Must include a program relating to group life, accident or health

11-41 insurance, or any combination of these [,] ; and

11-42 (2) May include a program to reduce taxable compensation or other

11-43 forms of compensation other than deferred compensation,

12-1 for the benefit of all state officers and employees and other persons who

12-2 participate in the [state’s program of group insurance.

12-3 2. ] program.

12-4 (b) Ensure that the program is funded on an actuarially sound basis

12-5 and operated in accordance with sound insurance and business practices.

12-6 2. In establishing and carrying out the program, the board shall:

12-7 (a) Except as otherwise provided in this [subsection,] paragraph,

12-8 negotiate and contract with the governing body of any public agency

12-9 enumerated in NRS 287.010 which is desirous of obtaining group insurance

12-10 for its officers, employees and retired employees by participation in the

12-11 [state’s program of group insurance. The committee] program. The board

12-12 shall establish separate rates and coverage for those officers, employees

12-13 and retired employees based on actuarial reports.

12-14 [3.] (b) Give public notice in writing of proposed changes in rates or

12-15 coverage to each participating public employer who may be affected by the

12-16 changes. Notice must be provided at least 30 days before the effective date

12-17 of the changes.

12-18 [4.] (c) Purchase policies of life, accident or health insurance, or any

12-19 combination of these, or , if applicable, a program to reduce the amount of

12-20 taxable compensation pursuant to 26 U.S.C. § 125, from any company

12-21 qualified to do business in this state or provide similar coverage through a

12-22 plan of self-insurance established pursuant to NRS 287.0433 for the

12-23 benefit of all eligible public officers, employees and retired employees who

12-24 participate in the [state’s program.

12-25 5. Consult the state risk manager and obtain his advice in the

12-26 performance of the duties set forth in this section.

12-27 6.] program.

12-28 (d) Except as otherwise provided in this Title, develop and establish

12-29 other employee benefits as necessary.

12-30 [7.] (e) Investigate and approve or disapprove any contract proposed

12-31 pursuant to section 12.5 of this act.

12-32 (f) Adopt such regulations and perform such other duties as are

12-33 necessary to carry out the provisions of NRS 287.041 to 287.049, inclusive,

12-34 and sections 5 to 12.5, inclusive, of this act, including , without limitation,

12-35 the establishment of:

12-36 [(a)] (1) Fees for applications for participation in the [state’s] program

12-37 and for the late payment of premiums [;

12-38 (b)] or contributions;

12-39 (2) Conditions for entry and reentry into the [state’s] program by

12-40 public agencies enumerated in NRS 287.010; [and

12-41 (c)] (3) The levels of participation in the [state’s] program required for

12-42 employees of participating public agencies [.

12-43 8.] ;

13-1 (4) Procedures by which a group of participants in the program

13-2 may leave the program pursuant to section 12.5 of this act and conditions

13-3 and procedures for reentry into the program by such participants; and

13-4 (5) Specific procedures for the determination of contested claims.

13-5 (g) Appoint an independent certified public accountant. The accountant

13-6 shall provide [an] :

13-7 (1) An annual audit of the [plan and] program; and

13-8 (2) A biennial audit of the program to determine whether the

13-9 program complies with all applicable federal and state laws relating to

13-10 taxes and employee benefits.

13-11 The accountant shall report to the [committee] board and the [legislative

13-12 commission. For the purposes of] interim benefits committee created by

13-13 section 12 of this act.

13-14 3. The board may use any services provided to state agencies and

13-15 shall use the services of the purchasing division of the department of

13-16 administration to establish and carry out the program.

13-17 4. The board may make recommendations to the legislature

13-18 concerning legislation that it deems necessary and appropriate regarding

13-19 the program.

13-20 5. The state and any other public employers that participate in the

13-21 program are not liable for any obligation of the program other than

13-22 indemnification of the board and its employees against liability relating

13-23 to the administration of the program, subject to the limitations specified

13-24 in NRS 41.0349.

13-25 6. As used in this section, "employee benefits" includes any form of

13-26 compensation provided to a state employee pursuant to this Title except

13-27 federal benefits, wages earned, legal holidays, deferred compensation and

13-28 benefits available pursuant to chapter 286 of NRS.

13-29 Sec. 21. NRS 287.0433 is hereby amended to read as follows:

13-30 287.0433 The [committee on benefits] board may establish a plan of

13-31 life, accident or health insurance and provide for the payment of

13-32 contributions into the [self-insurance fund,] fund for the public employees’

13-33 benefits program established pursuant to NRS 287.0435, a schedule of

13-34 benefits and the disbursement of benefits from the fund. The [committee]

13-35 board may reinsure any risk or any part of such a risk. [Payments into and

13-36 disbursements from the fund must be so arranged as to keep the fund

13-37 solvent.]

13-38 Sec. 22. NRS 287.0434 is hereby amended to read as follows:

13-39 287.0434 The [committee on benefits] board may:

13-40 1. Use its assets to pay the expenses of health care for its members and

13-41 covered dependents, to pay its employees’ salaries and to pay

13-42 administrative and other expenses.

14-1 2. Enter into contracts relating to the administration of [a plan of

14-2 insurance,] the program, including , without limitation, contracts with

14-3 licensed administrators and qualified actuaries.

14-4 3. Enter into contracts with physicians, surgeons, hospitals, health

14-5 maintenance organizations and rehabilitative facilities for medical, surgical

14-6 and rehabilitative care and the evaluation, treatment and nursing care of

14-7 members and covered dependents.

14-8 4. Enter into contracts for the services of other experts and specialists

14-9 as required by [a plan of insurance.] the program.

14-10 5. Charge and collect from an insurer, health maintenance organization,

14-11 organization for dental care or nonprofit medical service corporation, a fee

14-12 for the actual expenses incurred by the [committee,] board, the state or a

14-13 participating public employer in administering a plan of insurance offered

14-14 by that insurer, organization or corporation.

14-15 Sec. 23. NRS 287.0435 is hereby amended to read as follows:

14-16 287.0435 1. [If any plan of self-insurance is adopted by the

14-17 committee on benefits, there is created a self-insurance fund as a trust fund

14-18 for the purpose of receiving contributions. The self-insurance] All money

14-19 received for the program, including, without limitation, premiums and

14-20 contributions, must be deposited in the state treasury for credit to the

14-21 fund for the public employees’ benefits program which is hereby created

14-22 as a trust fund. The fund must be accounted for as an internal service fund.

14-23 Payments into and disbursements from the fund must be so arranged as

14-24 to keep the fund solvent at all times.

14-25 2. The money in the fund must be invested as other money of the state

14-26 is invested and any income from investments paid into the fund for the

14-27 benefit of the fund.

14-28 3. Disbursements from the fund must be made as any other claims

14-29 against the state are paid.

14-30 4. The state treasurer may charge a reasonable fee for his services in

14-31 administering the fund, but the state, the state general fund and the state

14-32 treasurer are not liable to the fund for any loss sustained by the fund as a

14-33 result of any investment made on behalf of the fund or any loss sustained in

14-34 the operation of the [plan of self-insurance. The state is liable for

14-35 indemnification of the committee on benefits, the state risk manager and

14-36 other employees of the state against liability relating to the administration

14-37 of the state’s program of group insurance, subject to the limitations

14-38 specified in NRS 41.0349.] program.

14-39 Sec. 24. NRS 287.0437 is hereby amended to read as follows:

14-40 287.0437 [The committee on benefits may employ professional,

14-41 technical and clerical personnel as necessary to assist it in the operation of

14-42 the plan of self-insurance. Their salaries and other costs must be paid out of

15-1 the self-insurance fund. The committee shall prepare a budget for these

15-2 costs in the manner prescribed for state agencies.]

15-3 1. The executive officer may appoint a quality control officer,

15-4 operations officer, accounting officer, information technology systems

15-5 officer and executive assistant who are in the unclassified service of the

15-6 state and serve at the pleasure of the executive officer. The appointment

15-7 and dismissal of the quality control officer are subject to the approval of

15-8 the board.

15-9 2. The quality control officer, operations officer, accounting officer

15-10 and information technology systems officer must each be a graduate of a

15-11 4-year college or university with a degree that is appropriate to their

15-12 respective responsibilities or possess equivalent experience as determined

15-13 by the board.

15-14 3. The quality control officer, operations officer, accounting officer,

15-15 information technology systems officer and executive assistant are

15-16 entitled to annual salaries fixed by the board with the approval of the

15-17 interim benefits committee created by section 12 of this act. The salaries

15-18 of these employees are exempt from the limitations set forth in NRS

15-19 281.123.

15-20 4. The executive officer may employ such staff in the classified

15-21 service of the state as are necessary for the performance of his duties,

15-22 within limits of legislative appropriations or other available money.

15-23 Sec. 25. NRS 287.0438 is hereby amended to read as follows:

15-24 287.0438 Except for the files of individual members and former

15-25 members, the correspondence, files, minutes and books of the [plan]

15-26 program are public records.

15-27 Sec. 26. NRS 287.0439 is hereby amended to read as follows:

15-28 287.0439 1. A participating public employer shall, on request,

15-29 furnish to the [committee on benefits] board any information necessary to

15-30 carry out the provisions of this chapter. Members of the [committee] board

15-31 and its employees or agents may examine under oath any officer, agent or

15-32 employee of a participating public employer concerning the information.

15-33 2. The books, records and payrolls of a participating public employer

15-34 must be available for inspection by members of the [committee] board and

15-35 its employees and agents to obtain any information necessary for the

15-36 administration of the [plan,] program, including , without limitation, the

15-37 accuracy of the payroll and identity of employees.

15-38 Sec. 27. NRS 287.044 is hereby amended to read as follows:

15-39 287.044 1. A part of the cost of the premiums or contributions for

15-40 that group insurance, not to exceed the amount specified by law, applied to

15-41 both group life and group accident or health coverage, for each public

15-42 officer, except a senator or assemblyman, or employee electing to

15-43 participate in the [group insurance] program, may be paid by the

16-1 department, agency, commission or public agency which employs the

16-2 officer or employee in whose behalf that part is paid from money

16-3 appropriated to or authorized for that department, agency, commission or

16-4 public agency for that purpose. Participation by the state in the cost of

16-5 premiums or contributions must not exceed the amounts specified by law. If

16-6 an officer or employee chooses to cover his dependents, whenever this

16-7 option is made available by the [committee on benefits,] board, he must

16-8 pay the difference between the amount of the premium or contribution for

16-9 the coverage for himself and his dependents and the amount paid by the

16-10 state.

16-11 2. A department, agency, commission or public agency shall not pay

16-12 any part of those premiums or contributions if the group life insurance or

16-13 group accident or health insurance is not approved by the [committee on

16-14 benefits.] board.

16-15 Sec. 28. NRS 287.0445 is hereby amended to read as follows:

16-16 287.0445 The department, agency, commission or public agency which

16-17 employed an officer or employee who:

16-18 1. Was injured in the course of that employment;

16-19 2. Receives compensation for a temporary total disability pursuant to

16-20 NRS 616C.475; and

16-21 3. Was a member of the [state’s program of group insurance] program

16-22 at the time of the injury,

16-23 shall pay the state’s share of the cost of the premiums [of the group

16-24 insurance] or contributions for the program for that officer or employee

16-25 for [a period of] not more than 9 months after the injury or until the officer

16-26 or employee is able to return to work, whichever is less. If the previous

16-27 injury recurs within 1 month after the employee returns to work and the

16-28 employee again receives compensation pursuant to NRS 616C.475 as a

16-29 result of the previous injury, the department, agency, commission or public

16-30 agency shall not, except as otherwise provided in this subsection, pay the

16-31 state’s share of the cost of the premiums or contributions for the period

16-32 during which the employee is unable to work as a result of the recurring

16-33 previous injury. If the initial period of disability was less than 9 months, the

16-34 department, agency, commission or public agency shall pay, during the

16-35 recurrence, the state’s share of the costs of the premiums or contributions

16-36 for a period which, when added to the initial period, equals not more than 9

16-37 months.

16-38 Sec. 29. NRS 287.045 is hereby amended to read as follows:

16-39 287.045 1. Except as otherwise provided in this section, every officer

16-40 or employee of the state is eligible to participate in the program on the first

16-41 day of the month following the completion of 90 days of full-time

16-42 employment.

17-1 2. Professional employees of the University and Community College

17-2 System of Nevada who have annual employment contracts are eligible to

17-3 participate in the program on:

17-4 (a) The effective dates of their respective employment contracts, if those

17-5 dates are on the first day of a month; or

17-6 (b) The first day of the month following the effective dates of their

17-7 respective employment contracts, if those dates are not on the first day of a

17-8 month.

17-9 3. Every officer or employee who is employed by a participating public

17-10 agency on a permanent and full-time basis on the date the agency enters

17-11 into an agreement to participate in the [state’s group insurance] program,

17-12 and every officer or employee who commences his employment after that

17-13 date is eligible to participate in the program on the first day of the month

17-14 following the completion of 90 days of full-time employment.

17-15 4. Every senator and assemblyman is eligible to participate in the

17-16 program on the first day of the month following the 90th day after his initial

17-17 term of office begins.

17-18 5. An officer or employee of the governing body of any county, school

17-19 district, municipal corporation, political subdivision, public corporation or

17-20 other public agency of the State of Nevada who retires under the conditions

17-21 set forth in NRS 286.510 or 286.620 and was not participating in the

17-22 [state’s group insurance] program at the time of his retirement is eligible to

17-23 participate in the program 30 days after notice of the selection to participate

17-24 is given pursuant to NRS 287.023 or 287.0235. The [committee on

17-25 benefits] board shall make a separate accounting for these retired persons.

17-26 For the first year following enrollment, the rates charged must be the full

17-27 actuarial costs determined by the actuary based upon the expected claims

17-28 experience with these retired persons. The claims experience of these

17-29 retired persons must not be commingled with the retired persons who were

17-30 members of the [state’s] program before their retirement, nor with active

17-31 employees of the state. After the first year following enrollment, the rates

17-32 charged must be the full actuarial costs determined by the actuary based

17-33 upon the past claims experience of these retired persons since enrolling.

17-34 6. Notwithstanding the provisions of subsections 1, 3 and 4, if the

17-35 [committee on benefits] board does not, pursuant to NRS 689B.580, elect

17-36 to exclude the program from compliance with NRS 689B.340 to 689B.600,

17-37 inclusive, and if the coverage under the program is provided by a health

17-38 maintenance organization authorized to transact insurance in this state

17-39 pursuant to chapter 695C of NRS, any affiliation period imposed by the

17-40 program may not exceed the statutory limit for an affiliation period set forth

17-41 in NRS 689B.500.

18-1 Sec. 30. NRS 287.046 is hereby amended to read as follows:

18-2 287.046 1. Except as otherwise provided in subsection 6, any state or

18-3 other participating officer or employee who elects to participate in the

18-4 [state’s group insurance] program may participate, and the department,

18-5 agency, commission or public agency that employs the officer or employee

18-6 shall pay the state’s share of the cost of the premiums or contributions for

18-7 the [group insurance] program from money appropriated or authorized as

18-8 provided in NRS 287.044. Employees who elect to participate in the

18-9 [state’s group insurance] program must authorize deductions from their

18-10 compensation for the payment of premiums or contributions [on the

18-11 insurance.] for the program.

18-12 2. The department of personnel shall pay a percentage of the base

18-13 amount provided by law for that fiscal year toward the cost of the premiums

18-14 or contributions for [group insurance] the program for persons retired from

18-15 the service of the state who have continued to participate [.] in the

18-16 program. Except as otherwise provided in subsection 3, the percentage to

18-17 be paid must be calculated as follows:

18-18 (a) For those persons who retire before January 1, 1994, 100 percent of

18-19 the base amount provided by law for that fiscal year.

18-20 (b) For those persons who retire on or after January 1, 1994, with at

18-21 least 5 years of state service, 25 percent plus an additional 7.5 percent for

18-22 each year of service in excess of 5 years to a maximum of 137.5 percent,

18-23 excluding service purchased pursuant to NRS 286.300, of the base amount

18-24 provided by law for that fiscal year.

18-25 3. If the amount calculated pursuant to subsection 2 exceeds the actual

18-26 premium [of] or contribution for the plan of the program that the retired

18-27 participant selects, the balance must be credited to the [self-insurance] fund

18-28 for the public employees’ benefits program created pursuant to NRS

18-29 287.0435.

18-30 4. For the purposes of subsection 2:

18-31 (a) Credit for service must be calculated in the manner provided by

18-32 chapter 286 of NRS.

18-33 (b) No proration may be made for a partial year of service.

18-34 5. The department shall agree through the [committee on benefits]

18-35 board with the insurer for billing of remaining premiums or contributions

18-36 for the retired participant and his dependents to the retired participant and

18-37 to his dependents who elect to continue coverage under the [group

18-38 insurance] program after his death.

18-39 6. A senator or assemblyman who elects to participate in the [state’s

18-40 group insurance] program shall pay the entire premium or contribution for

18-41 his insurance.

19-1 Sec. 31. NRS 287.0465 is hereby amended to read as follows:

19-2 287.0465 1. If an officer or employee of the state or a dependent of

19-3 such an officer or employee incurs an illness or injury for which medical

19-4 services are payable under the plan for self-insurance [adopted] established

19-5 by the [committee on benefits] board and the illness or injury is incurred

19-6 under circumstances creating a legal liability in some person, other than the

19-7 officer, employee or dependent, to pay all or part of the cost of those

19-8 services, the [committee on benefits] board is subrogated to the right of the

19-9 officer, employee or dependent to the extent of all such costs, and may join

19-10 or intervene in any action by the officer, employee or dependent or his

19-11 successors in interest, to enforce that legal liability.

19-12 2. If an officer, employee or dependent or his successors in interest fail

19-13 or refuse to commence an action to enforce that legal liability, the

19-14 [committee on benefits] board may commence an independent action, after

19-15 notice to the officer, employee or dependent or his successors in interest, to

19-16 recover all costs to which it is entitled. In any such action by the

19-17 [committee on benefits,] board, the officer, employee or dependent may be

19-18 joined as a third party defendant.

19-19 3. If the [committee on benefits] board is subrogated to the rights of

19-20 the officer, employee or dependent or his successors in interest as provided

19-21 in subsection 1, the [committee on benefits] board has a lien upon the total

19-22 proceeds of any recovery from the persons liable, whether the proceeds of

19-23 the recovery are by way of a judgment or settlement or otherwise. Within

19-24 15 days after recovery by receipt of the proceeds of the judgment,

19-25 settlement or other recovery, the officer, employee or dependent or his

19-26 successors in interest shall notify the [committee on benefits] board of the

19-27 recovery and pay the [committee on benefits] board the amount due to it

19-28 pursuant to this section. The officer, employee or dependent or his

19-29 successors in interest are not entitled to double recovery for the same

19-30 injury.

19-31 4. The officer, employee or dependent or his successors in interest

19-32 shall notify the [committee on benefits] board in writing before entering

19-33 any settlement or agreement or commencing any action to enforce the legal

19-34 liability referred to in subsection 1.

19-35 Sec. 32. NRS 287.047 is hereby amended to read as follows:

19-36 287.047 If the retention is consistent with the terms of any agreement

19-37 between the state and the insurance company which issued the policies

19-38 pursuant to the program or with the plan of self-insurance [:] of the

19-39 program:

19-40 1. A participating state employee who retires on or after July 1, 1985,

19-41 may retain his membership in and his dependents’ coverage by the [state’s

19-42 program of group insurance.] program.

20-1 2. A participating legislator who retires from the service of the state or

20-2 who completes 8 years of service as such may retain his membership in and

20-3 his dependents’ coverage by the [state’s program of group insurance.]

20-4 program.

20-5 Sec. 33. NRS 287.0475 is hereby amended to read as follows:

20-6 287.0475 1. A public employee who has retired pursuant to NRS

20-7 286.510 or 286.620 or a retirement program provided pursuant to NRS

20-8 286.802, or the surviving spouse of such a retired public employee who is

20-9 deceased may, in any even-numbered year, reinstate any insurance, except

20-10 life insurance, which was provided to him and his dependents at the time of

20-11 his retirement [under NRS 287.010, 287.020 or 287.0433] pursuant to

20-12 NRS 287.010 or 287.020 or the program as a public employee by:

20-13 (a) Giving written notice of his intent to reinstate the insurance to the

20-14 employee’s last public employer not later than January 31, of an even-

20-15 numbered year;

20-16 (b) Accepting the public employer’s current program or plan of

20-17 insurance and any subsequent changes thereto; and

20-18 (c) Paying any portion of the [policy’s premiums,] premiums or

20-19 contributions of the public employer’s program or plan of insurance, in

20-20 the manner set forth in NRS 286.615, which are due from the date of

20-21 reinstatement and not paid by the public employer.

20-22 The last public employer shall give the insurer notice of the reinstatement

20-23 no later than March 31, of the year in which the public employee or

20-24 surviving spouse gives notice of his intent to reinstate the insurance. The

20-25 insurer shall approve or disapprove the request for reinstatement within 90

20-26 days after the date of the request.

20-27 2. Reinstatement of insurance excludes claims for expenses for any

20-28 condition for which medical advice, treatment or consultation was rendered

20-29 within [12] 6 months before reinstatement unless:

20-30 (a) The person has not received any medical advice, treatment or

20-31 consultation for a period of 6 consecutive months after the reinstatement; or

20-32 (b) The reinstated insurance has been in effect more than 12 consecutive

20-33 months.

20-34 [3. The retired public employee, his dependents and the surviving

20-35 spouse of a retired public employee who is deceased must show evidence

20-36 of their good health as a condition of the reinstatement.]

20-37 Sec. 34. NRS 287.048 is hereby amended to read as follows:

20-38 287.048 NRS 287.041 to 287.047, inclusive, and sections 5 to 12.5,

20-39 inclusive, of this act, do not require any officer or employee of the State of

20-40 Nevada to accept or join the [state’s program of group insurance,]

20-41 program, or to assign his wages or salary to or authorize deductions from

20-42 his wages or salary in payment of premiums or contributions for [group

20-43 insurance.] the program.

21-1 Sec. 35. NRS 287.049 is hereby amended to read as follows:

21-2 287.049 The cost of premiums or contributions for [group insurance]

21-3 the program as provided in NRS 287.044 must be budgeted for as other

21-4 expenditures of the state are budgeted for.

21-5 Sec. 36. NRS 287.245 is hereby amended to read as follows:

21-6 287.245 1. The state may agree with any of its employees, and the

21-7 board of regents of the University of Nevada may agree with any of its

21-8 employees, to reduce the amount of taxable compensation due to an

21-9 employee in accordance with a program established pursuant to 26 U.S.C. §

21-10 125 by the [committee on benefits.] board of the public employees’

21-11 benefits program.

21-12 2. Political subdivisions of this state may agree with any of their

21-13 employees to reduce the amount of taxable compensation due to an

21-14 employee in accordance with a program established pursuant to 26 U.S.C. §

21-15 125.

21-16 3. The employer shall deduct an amount from the taxable

21-17 compensation of an employee pursuant to the agreement between the

21-18 employer and the employee.

21-19 4. An employer shall not make any reduction in the taxable

21-20 compensation of an employee pursuant to this section until the program

21-21 established meets the requirements of 26 U.S.C. § 125 for eligibility.

21-22 5. The [committee on benefits] board of the public employees’

21-23 benefits program may establish and administer a program pursuant to 26

21-24 U.S.C. § 125. The [committee] board may:

21-25 (a) Create an appropriate fund for administration of money and other

21-26 assets resulting from the money deducted [under] pursuant to the program.

21-27 (b) Delegate to one or more state agencies or institutions of the

21-28 University and Community College System of Nevada the responsibility for

21-29 administering the program for their respective employees, including [:] ,

21-30 without limitation:

21-31 (1) Collection of money deducted;

21-32 (2) Transmittal of money collected to depositories within the state

21-33 designated by the [committee;] board; and

21-34 (3) Payment for eligible uses.

21-35 (c) Contract with a natural person, corporation, institution or other

21-36 entity, directly or through a state agency or institution of the University and

21-37 Community College System of Nevada, for services necessary to the

21-38 administration of the plan, including [:] , without limitation:

21-39 (1) Consolidated billing;

21-40 (2) The keeping of records for each participating employee and the

21-41 program;

21-42 (3) The control and safeguarding of assets;

21-43 (4) Programs for communication with employees; and

22-1 (5) The administration and coordination of the program.

22-2 6. Each employee who participates in a program established by the

22-3 [committee] board of the public employees’ benefits program pursuant to

22-4 this section shall pay a proportionate share of the cost to administer the

22-5 program as determined by the [committee.] board.

22-6 7. The provisions of this section do not supersede, make inoperative or

22-7 reduce the benefits provided by the public employees’ retirement system or

22-8 by any other retirement, pension or benefit program established by law.

22-9 Sec. 37. NRS 233B.039 is hereby amended to read as follows:

22-10 233B.039 1. The following agencies are entirely exempted from the

22-11 requirements of this chapter:

22-12 (a) The governor.

22-13 (b) The department of prisons.

22-14 (c) The University and Community College System of Nevada.

22-15 (d) The office of the military.

22-16 (e) The state gaming control board.

22-17 (f) The Nevada gaming commission.

22-18 (g) The welfare division of the department of human resources.

22-19 (h) The state board of examiners acting pursuant to chapter 217 of NRS.

22-20 (i) Except as otherwise provided in NRS 533.365, the office of the state

22-21 engineer.

22-22 2. Except as otherwise provided in NRS 391.323, the department of

22-23 education, the [committee on benefits] board of the public employees’

22-24 benefits program and the commission on professional standards in

22-25 education are subject to the provisions of this chapter for the purpose of

22-26 adopting regulations but not with respect to any contested case.

22-27 3. The special provisions of:

22-28 (a) Chapter 612 of NRS for the distribution of regulations by and the

22-29 judicial review of decisions of the employment security division of the

22-30 department of employment, training and rehabilitation;

22-31 (b) Chapters 616A to 617, inclusive, of NRS for the determination of

22-32 contested claims;

22-33 (c) Chapter 703 of NRS for the judicial review of decisions of the public

22-34 utilities commission of Nevada;

22-35 (d) Chapter 91 of NRS for the judicial review of decisions of the

22-36 administrator of the securities division of the office of the secretary of state;

22-37 and

22-38 (e) NRS 90.800 for the use of summary orders in contested cases,

22-39 prevail over the general provisions of this chapter.

22-40 4. The provisions of NRS 233B.122, 233B.124, 233B.125 and

22-41 233B.126 do not apply to the department of human resources in the

22-42 adjudication of contested cases involving the issuance of letters of approval

22-43 for health facilities and agencies.

23-1 5. The provisions of this chapter do not apply to:

23-2 (a) Any order for immediate action, including, but not limited to,

23-3 quarantine and the treatment or cleansing of infected or infested animals,

23-4 objects or premises, made under the authority of the state board of

23-5 agriculture, the state board of health, the state board of sheep

23-6 commissioners or any other agency of this state in the discharge of a

23-7 responsibility for the preservation of human or animal health or for insect

23-8 or pest control; or

23-9 (b) An extraordinary regulation of the state board of pharmacy adopted

23-10 pursuant to NRS 453.2184.

23-11 6. The state board of parole commissioners is subject to the provisions

23-12 of this chapter for the purpose of adopting regulations but not with respect

23-13 to any contested case.

23-14 Sec. 38. NRS 277.067 is hereby amended to read as follows:

23-15 277.067 1. Except as otherwise provided in subsection 2, any two or

23-16 more political subdivisions of this state, agencies of the state or the

23-17 University and Community College System of Nevada may enter into a

23-18 cooperative agreement for the purchase of insurance or the establishment of

23-19 a self-insurance reserve or fund for coverage under a plan of:

23-20 (a) Casualty insurance, as that term is defined in NRS 681A.020;

23-21 (b) Marine and transportation insurance, as that term is defined in NRS

23-22 681A.050;

23-23 (c) Property insurance, as that term is defined in NRS 681A.060;

23-24 (d) Surety insurance, as that term is defined in NRS 681A.070;

23-25 (e) Health insurance, as that term is defined in NRS 681A.030; or

23-26 (f) Insurance for any combination of these kinds of protection.

23-27 2. Any political subdivision of the state, any agency of the state or the

23-28 University and Community College System of Nevada which participates in

23-29 the [state’s program of group insurance] public employees’ benefits

23-30 program shall obtain the approval of the [committee on benefits] board of

23-31 the public employees’ benefits program before it enters into a cooperative

23-32 agreement for the purchase of health insurance pursuant to paragraph (e) of

23-33 subsection 1.

23-34 3. Any such agreement may obligate the respective parties to pledge

23-35 revenues or contribute money to secure the obligations or pay the expenses

23-36 of the cooperative undertaking and may provide for the establishment of a

23-37 separate entity to administer the undertaking.

23-38 Sec. 39. Chapter 331 of NRS is hereby amended by adding thereto a

23-39 new section to read as follows:

23-40 The state risk manager may employ such staff as is necessary for the

23-41 performance of his duties, within limits of legislative appropriations or

23-42 other available money.

24-1 Sec. 40. NRS 331.184 is hereby amended to read as follows:

24-2 331.184 The state risk manager shall:

24-3 1. Direct and supervise all administrative and technical activities of the

24-4 risk management division.

24-5 2. Determine the nature and extent of requirements for insurance, other

24-6 than group life, accident or health insurance, on risks of an insurable nature

24-7 of the state and any of its agencies, the premiums for which are payable in

24-8 whole or in part from public money.

24-9 3. Negotiate for, procure, purchase and have placed, through a licensed

24-10 insurance agent or broker residing or domiciled in Nevada, or continued in

24-11 effect all insurance coverages, other than employee group life, accident or

24-12 health insurance, which may be reasonably obtainable, whether from

24-13 insurers authorized to transact business in this state or under the surplus

24-14 lines provisions of chapter 685A of NRS.

24-15 4. Conduct periodic inspections of premises, property and risks to

24-16 determine insurability, risk and premium rate, and submit a written report

24-17 of each inspection and appraisal, together with any recommendations that

24-18 appear appropriate, to the administrator of the agency most responsible for

24-19 the premises, property or risk, and to the director of the department of

24-20 administration.

24-21 5. Provide for self-insurance if the potential loss is relatively

24-22 insignificant or if the risk is highly predictable and the probability of loss is

24-23 so slight that the cost of insuring the risk is not a prudent expenditure of

24-24 public funds, or if insurance is unavailable or unavailable at a reasonable

24-25 cost.

24-26 6. Select reasonable deductibles when it appears economically

24-27 advantageous to the state to do so.

24-28 7. Select comprehensive and blanket coverages insuring the property of

24-29 two or more state agencies when that appears economically advisable.

24-30 8. Investigate and determine the reliability and financial condition of

24-31 insurers, and the services they provide.

24-32 9. Minimize risks by adopting and promoting programs to control

24-33 losses and encourage safety.

24-34 10. Perform any of the services described in subsections 2, 3 and 4 for

24-35 any political subdivision of the state at the request of its managing officer

24-36 or governing body.

24-37 11. [Act as adviser to the committee on benefits.

24-38 12.] Perform any other function of risk management as directed by the

24-39 director of the department of administration.

24-40 Sec. 41. Chapter 679B of NRS is hereby amended by adding thereto a

24-41 new section to read as follows:

24-42 1. The commissioner shall adopt regulations which require the use of

24-43 uniform claim forms and billing codes and the ability to make

25-1 compatible electronic data transfers for all insurers and administrators

25-2 authorized to conduct business in this state relating to a health care plan

25-3 or health insurance or providing or arranging for the provision of health

25-4 care services, including, without limitation, an insurer that issues a

25-5 policy of health insurance, an insurer that issues a policy of group health

25-6 insurance, a carrier serving small employers, a fraternal benefit society,

25-7 a hospital or medical service corporation, a health maintenance

25-8 organization, a plan for dental care and a prepaid limited health service

25-9 organization.

25-10 2. As used in this section:

25-11 (a) "Administrator" has the meaning ascribed to it in NRS 683A.025.

25-12 (b) "Health care plan" means a policy, contract, certificate or

25-13 agreement offered or issued by an insurer to provide, deliver, arrange

25-14 for, pay for or reimburse any of the costs of health care services.

25-15 Sec. 42. NRS 689B.065 is hereby amended to read as follows:

25-16 689B.065 1. A policy of group health insurance issued to replace any

25-17 discontinued policy or coverage for group health insurance must:

25-18 (a) Provide coverage for all persons who were covered under the

25-19 previous policy or coverage on the date it was discontinued; and

25-20 (b) Except as otherwise provided in subsection 2, provide benefits

25-21 which are at least as extensive as the benefits provided by the previous

25-22 policy or coverage, except that benefits may be reduced or excluded to the

25-23 extent that such a reduction or exclusion was permissible under the terms of

25-24 the previous policy or coverage,

25-25 if that replacement policy is issued within 60 days after the date on which

25-26 the previous policy or coverage was discontinued.

25-27 2. If an employer obtains a replacement policy pursuant to subsection 1

25-28 to cover his employees, any benefits provided by the previous policy or

25-29 coverage may be reduced if notice of the reduction is given to his

25-30 employees pursuant to NRS 608.1577.

25-31 3. Any insurer which issues a replacement policy pursuant to

25-32 subsection 1 may submit a written request to the insurer who provided the

25-33 previous policy or coverage for a statement of benefits which were

25-34 provided under that policy or coverage. Upon receiving such a request, the

25-35 insurer who provided the previous policy or coverage shall give a written

25-36 statement to the insurer providing the replacement policy which indicates

25-37 what benefits were provided and what exclusions or reductions were in

25-38 effect under the previous policy or coverage.

25-39 4. The provisions of this section:

25-40 (a) Apply to a self-insured employer who provides health benefits to his

25-41 employees and replaces those benefits with a policy of group health

25-42 insurance.

26-1 (b) Do not apply to the [state’s program of group insurance] public

26-2 employees’ benefits program established pursuant to NRS 287.041 to

26-3 287.049, inclusive [.] , and sections 5 to 12.5, inclusive, of this act.

26-4 Sec. 43. NRS 287.0432 is hereby repealed.

26-5 Sec. 44. Section 10 of this act is hereby amended to read as follows:

26-6 Sec. 10. 1. The board shall employ an executive officer who

26-7 is in the unclassified service of the state and serves at the pleasure

26-8 of the board. The board may delegate to the executive officer the

26-9 exercise or discharge of any power, duty or function vested in or

26-10 imposed upon the board.

26-11 2. The executive officer must:

26-12 (a) Be a graduate of a 4-year college or university with a degree

26-13 in business administration or public administration or an equivalent

26-14 degree, as determined by the board; and

26-15 (b) Possess at least 5 years’ experience in a high-level

26-16 administrative or executive capacity in the field of insurance,

26-17 management of employees’ benefits or risk management, including,

26-18 without limitation, responsibility for a variety of administrative

26-19 functions such as personnel, accounting, data processing or the

26-20 structuring of insurance programs.

26-21 3. Except as otherwise provided in NRS 284.143, the executive

26-22 officer shall not pursue any other business or occupation or perform

26-23 the duties of any other office of profit during normal office hours

26-24 unless on leave approved in advance. The executive officer shall

26-25 not participate in any business enterprise or investment with any

26-26 vendor or provider to the program.

26-27 4. The executive officer is entitled to an annual salary fixed by

26-28 the board . [with the approval of the interim benefits committee

26-29 created pursuant to section 12 of this act.] The salary of the

26-30 executive officer is exempt from the limitations set forth in NRS

26-31 281.123.

26-32 Sec. 45. Section 20 of this act is hereby amended to read as follows:

26-33 Sec. 20. NRS 287.043 is hereby amended to read as follows:

26-34 287.043 1. The board shall:

26-35 (a) Establish and carry out a program to be known as the public

26-36 employees’ benefits program which:

26-37 (1) Must include a program relating to group life, accident or

26-38 health insurance, or any combination of these; and

26-39 (2) May include a program to reduce taxable compensation or

26-40 other forms of compensation other than deferred compensation,

26-41 for the benefit of all state officers and employees and other persons

26-42 who participate in the program.

27-1 (b) Ensure that the program is funded on an actuarially sound

27-2 basis and operated in accordance with sound insurance and business

27-3 practices.

27-4 2. In establishing and carrying out the program, the board shall:

27-5 (a) Except as otherwise provided in this paragraph, negotiate and

27-6 contract with the governing body of any public agency enumerated

27-7 in NRS 287.010 which is desirous of obtaining group insurance for

27-8 its officers, employees and retired employees by participation in the

27-9 program. The board shall establish separate rates and coverage for

27-10 those officers, employees and retired employees based on actuarial

27-11 reports.

27-12 (b) Give public notice in writing of proposed changes in rates or

27-13 coverage to each participating public employer who may be

27-14 affected by the changes. Notice must be provided at least 30 days

27-15 before the effective date of the changes.

27-16 (c) Purchase policies of life, accident or health insurance, or any

27-17 combination of these, or, if applicable, a program to reduce the

27-18 amount of taxable compensation pursuant to 26 U.S.C. § 125, from

27-19 any company qualified to do business in this state or provide similar

27-20 coverage through a plan of self-insurance established pursuant to

27-21 NRS 287.0433 for the benefit of all eligible public officers,

27-22 employees and retired employees who participate in the program.

27-23 (d) Except as otherwise provided in this Title, develop and

27-24 establish other employee benefits as necessary.

27-25 (e) Investigate and approve or disapprove any contract proposed

27-26 pursuant to section 12.5 of this act.

27-27 (f) Adopt such regulations and perform such other duties as are

27-28 necessary to carry out the provisions of NRS 287.041 to 287.049,

27-29 inclusive, and sections 5 to 12.5, inclusive, of this act, including,

27-30 without limitation, the establishment of:

27-31 (1) Fees for applications for participation in the program and

27-32 for the late payment of premiums or contributions;

27-33 (2) Conditions for entry and reentry into the program by

27-34 public agencies enumerated in NRS 287.010;

27-35 (3) The levels of participation in the program required for

27-36 employees of participating public agencies; and

27-37 (4) Procedures by which a group of participants in the

27-38 program may leave the program pursuant to section 12.5 of this act

27-39 and conditions and procedures for reentry into the program by such

27-40 participants; and

27-41 (5) Specific procedures for the determination of contested

27-42 claims.

28-1 (g) Appoint an independent certified public accountant. The

28-2 accountant shall provide:

28-3 (1) An annual audit of the program; and

28-4 (2) A biennial audit of the program to determine whether the

28-5 program complies with all applicable federal and state laws relating

28-6 to taxes and employee benefits.

28-7 The accountant shall report to the board . [and the interim benefits

28-8 committee created by section 12 of this act.]

28-9 3. The board may use any services provided to state agencies

28-10 and shall use the services of the purchasing division of the

28-11 department of administration to establish and carry out the program.

28-12 4. The board may make recommendations to the legislature

28-13 concerning legislation that it deems necessary and appropriate

28-14 regarding the program.

28-15 5. The state and any other public employers that participate in

28-16 the program are not liable for any obligation of the program other

28-17 than indemnification of the board and its employees against liability

28-18 relating to the administration of the program, subject to the

28-19 limitations specified in NRS 41.0349.

28-20 6. As used in this section, "employee benefits" includes any

28-21 form of compensation provided to a state employee pursuant to this

28-22 Title except federal benefits, wages earned, legal holidays, deferred

28-23 compensation and benefits available pursuant to chapter 286 of

28-24 NRS.

28-25 Sec. 46. Section 24 of this act is hereby amended to read as follows:

28-26 Sec. 24. NRS 287.0437 is hereby amended to read as follows:

28-27 287.0437 1. The executive officer may appoint a quality

28-28 control officer, operations officer, accounting officer, information

28-29 technology systems officer and executive assistant who are in the

28-30 unclassified service of the state and serve at the pleasure of the

28-31 executive officer. The appointment and dismissal of the quality

28-32 control officer are subject to the approval of the board.

28-33 2. The quality control officer, operations officer, accounting

28-34 officer and information technology systems officer must each be a

28-35 graduate of a 4-year college or university with a degree that is

28-36 appropriate to their respective responsibilities or possess equivalent

28-37 experience as determined by the board.

28-38 3. The quality control officer, operations officer, accounting

28-39 officer, information technology systems officer and executive

28-40 assistant are entitled to annual salaries fixed by the board . [with the

28-41 approval of the interim benefits committee created by section 12 of

28-42 this act.] The salaries of these employees are exempt from the

28-43 limitations set forth in NRS 281.123.

29-1 4. The executive officer may employ such staff in the classified

29-2 service of the state as are necessary for the performance of his

29-3 duties, within limits of legislative appropriations or other available

29-4 money.

29-5 Sec. 47. Section 3 of Assembly Bill No. 176 of this session is hereby

29-6 amended to read as follows:

29-7 Sec. 3. 1. Notwithstanding the provisions of NRS 287.041 to

29-8 287.049, inclusive, to the contrary, the operation of the Committee

29-9 on Benefits, created by NRS 287.041, is hereby [indefinitely]

29-10 suspended and the committee shall not transact any business or hold

29-11 any meetings [after the effective date of this act.

29-12 2. On and after the effective date of this act, the] until July 1,

29-13 1999.

29-14 2. The Governor, or his designee, shall administer the

29-15 provisions of NRS 287.041 to 287.049, inclusive [.] , until July 1,

29-16 1999. For this purpose, the Governor or his designee are hereby

29-17 granted all powers necessary and proper to ensure the efficient and

29-18 effective operation of the plan of self-insurance for state officers

29-19 and employees and all other programs and benefits authorized by

29-20 NRS 287.041 to 287.049, inclusive, and shall act on behalf of the

29-21 Committee on Benefits in all matters relating to any contracts or

29-22 other matters to which the committee is a party.

29-23 3. The State of Nevada is liable for indemnification of the

29-24 Governor and his designee against liability relating to the

29-25 administration of the state’s program of group insurance, subject to

29-26 the limitations specified in NRS 41.0349.

29-27 Sec. 48. 1. The terms of the persons who are members of the

29-28 committee on benefits on June 30, 1999, expire on that date.

29-29 2. As soon as practicable on or before July 1, 1999, the appointing

29-30 authorities set forth in subsection 1 of NRS 287.041, as amended by this

29-31 act, shall appoint members of the board. The initial appointed members of

29-32 the board shall, at the first meeting of the board after their appointment,

29-33 draw lots to determine which:

29-34 (a) Member will serve an initial term that begins on July 1, 1999, and

29-35 expires on July 1, 2000;

29-36 (b) Member will serve an initial term that begins on July 1, 1999, and

29-37 expires on July 1, 2001;

29-38 (c) Member will serve an initial term that begins on July 1, 1999, and

29-39 expires on July 1, 2002; and

29-40 (d) Two members will serve initial terms that begin on July 1, 1999, and

29-41 expire on July 1, 2003.

30-1 Sec. 49. 1. This section and sections 41, 47 and 48 of this act

30-2 become effective upon passage and approval.

30-3 2. Sections 1 to 40, inclusive, 42, 43 and 50 of this act become

30-4 effective on July 1, 1999.

30-5 3. Sections 44, 45 and 46 of this act become effective on July 1, 2001.

30-6 4. Section 12 of this act expires by limitation on July 1, 2001.

30-7 Sec. 50. The legislative counsel shall:

30-8 1. In preparing the reprint and supplements to the Nevada Revised

30-9 Statutes, with respect to any section that is not amended by this act or is

30-10 further amended by another act, appropriately change any reference to

30-11 "committee on benefits" to "board of the public employees’ benefits

30-12 program."

30-13 2. In preparing supplements to the Nevada Administrative Code,

30-14 appropriately change any reference to "committee on benefits" to "board of

30-15 the public employees’ benefits program."

 

30-16 TEXT OF REPEALED SECTION

 

30-17 287.0432 Committee on benefits: Procedures for contested claims.
30-18 The committee on benefits shall by regulation provide for specific

30-19 procedures for the determination of contested claims.

~