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 and2-1
employees of the state may, upon written requests of the officer or2-2
employee specifying amounts, withhold those amounts and pay them to:2-3
1. Charitable organizations;2-4
2. Employee credit unions;2-5
3. Insurers, if the2-6
employees’ benefits program has approved the request;2-7
4. The United States for the purchase of savings bonds and similar2-8
obligations of the United States; and2-9
5. Employee organizations and labor organizations.2-10
The state controller may adopt regulations necessary to withhold money2-11
from the salaries or wages of officers and employees of the executive2-12
department.2-13
Sec. 2. NRS 284.355 is hereby amended to read as follows: 284.355 1. Except as otherwise provided in this section, all2-15
employees in the public service, whether in the classified or unclassified2-16
service, are entitled to sick and disability leave with pay of 1 1/4 working2-17
days for each month of service, which may be cumulative from year to year.2-18
After an employee has accumulated 90 working days of sick leave, the2-19
amount of additional unused sick leave which he is entitled to carry forward2-20
from one year to the next is limited to one-half of the unused sick leave2-21
accrued during that year, but the department may by regulation provide for2-22
subsequent use of unused sick leave accrued but not carried forward by2-23
reason of this limitation in cases where the employee is suffering from a2-24
long-term or chronic illness and has used all sick leave otherwise available2-25
to him. Upon the retirement of an employee, his termination through no2-26
fault of his own or his death while in public employment, the employee or2-27
his beneficiaries are entitled to payment for his unused sick leave in excess2-28
of 30 days, exclusive of any unused sick leave accrued but not carried2-29
forward, according to his number of years of public service, except service2-30
with a political subdivision of the state, as follows:2-31
(a) For 10 years of service or more but less than 15 years, not more than2-32
$2,500.2-33
(b) For 15 years of service or more but less than 20 years, not more than2-34
$4,000.2-35
(c) For 20 years of service or more but less than 25 years, not more than2-36
$6,000.2-37
(d) For 25 years of service or more, not more than $8,000.2-38
The department may by regulation provide for additional sick and disability2-39
leave for long-term employees and for prorated sick and disability leave for2-40
part-time employees.2-41
2. An employee entitled to payment for unused sick leave pursuant to2-42
subsection 1 may elect to receive the payment in any one or more of the2-43
following forms:3-1
(a) A lump-sum payment.3-2
(b) An advanced payment of the premiums or contributions for3-3
insurance coverage for which he is otherwise eligible pursuant to chapter3-4
287 of NRS. If the insurance coverage is terminated and the money3-5
advanced for premiums or contributions pursuant to this subsection3-6
exceeds the amount which is payable for premiums or contributions for the3-7
period for which the former employee was actually covered, the unused3-8
portion of the advanced payment must be paid promptly to the former3-9
employee or, if he is deceased, to his beneficiary.3-10
(c) The purchase of additional retirement credit, if he is otherwise3-11
eligible pursuant to chapter 286 of NRS.3-12
3. Officers and members of the faculty of the University and3-13
Community College System of Nevada are entitled to sick and disability3-14
leave as provided by the regulations adopted pursuant to subsection 2 of3-15
NRS 284.345.3-16
4. The department may by regulation provide policies concerning3-17
employees with mental or emotional disorders which:3-18
(a) Utilize a liberal approach to the granting of sick leave or leave3-19
without pay when it is necessary for them to be absent for treatment or3-20
temporary hospitalization.3-21
(b) Provide for the retention of their jobs for reasonable periods of3-22
absence, and where extended absence necessitates separation or retirement,3-23
provide for their reemployment if at all possible after recovery.3-24
(c) Protect employee benefits such as retirement, life insurance and3-25
health benefits.3-26
5. The director shall establish by regulation a schedule for the accrual3-27
of sick leave for employees who regularly work more than 40 hours per3-28
week or 80 hours biweekly. The schedule must provide for the accrual of3-29
sick leave at the same rate proportionately as employees who work a 40-3-30
hour week accrue sick leave.3-31
6. The department may investigate any instance in which it believes3-32
that an employee has taken sick or disability leave to which he was not3-33
entitled. If, after notice to the employee and a hearing, the commission3-34
determines that he has in fact taken sick or disability leave to which he was3-35
not entitled, the commission may order the forfeiture of all or part of his3-36
accrued sick leave.3-37
Sec. 2.3. NRS 286.160 is hereby amended to read as follows:3-38
286.160 1. The board shall employ an executive officer who serves3-39
at the pleasure of the board. The executive officer shall select an operations3-40
officer, investment officer, manager of information systems, administrative3-41
assistant and administrative analyst whose appointments are effective upon3-42
confirmation by the board. The operations officer, investment officer,4-1
manager of information systems, administrative assistant and administrative4-2
analyst serve at the pleasure of the executive officer.4-3
2. The executive officer, operations officer, investment officer,4-4
manager of information systems, administrative assistant and administrative4-5
analyst are entitled to annual salaries fixed by the board with the approval4-6
of the interim retirement and benefits committee of the legislature4-7
created pursuant to section 36.5 of this act. The salaries of these4-8
employees are exempt from the limitations of NRS 281.123.4-9
3. The executive officer must:4-10
(a) Be a graduate of a 4-year college or university with a degree in4-11
business administration or public administration or equivalent degree.4-12
(b) Possess at least 5 years’ experience in a high level administrative or4-13
executive capacity, including responsibility for a variety of administrative4-14
functions such as retirement, insurance, investment or fiscal operations.4-15
4. The operations officer and the investment officer must each be a4-16
graduate of a 4-year college or university with a degree in business4-17
administration or public administration or an equivalent degree.4-18
5. Except as otherwise provided in NRS 284.143, the executive officer4-19
shall not pursue any other business or occupation or perform the duties of4-20
any other office of profit during normal office hours unless on leave4-21
approved in advance. The executive officer shall not participate in any4-22
business enterprise or investment in real or personal property if the system4-23
owns or has a direct financial interest in that enterprise or property.4-24
Sec. 2.6. NRS 286.211 is hereby amended to read as follows: 286.211 1. The board shall, with the advice of the interim retirement4-26
and benefits committee4-27
36.5 of this act:4-28
(a) Adopt regulations for the evaluation of requests for enrollment under4-29
the police and firemen’s retirement fund; and4-30
(b) Determine those positions eligible under the early retirement4-31
provisions for police officers and firemen.4-32
2. Service in any position which has not been determined by the board4-33
to be eligible does not entitle a member to early retirement as a fireman or4-34
police officer.4-35
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 and4-37
subject to the requirements of that section, any officer or employee of the4-38
governing body of any county, school district, municipal corporation,4-39
political subdivision, public corporation or other public agency of the State4-40
of Nevada, who retires under the conditions set forth in NRS 286.510 and,4-41
at the time of his retirement, was covered or had his dependents covered by4-42
any group insurance or medical and hospital service established pursuant to4-43
NRS 287.010 and 287.020, has the option of having the executive officer5-1
deduct and pay his premium or contribution for that group insurance or5-2
medical and hospital service coverage, as well as the amount due or to5-3
become due upon any obligation designated by the board pursuant to5-4
subsection 2, from his monthly retirement allowance until:5-5
(a) He notifies the executive officer to discontinue the deduction; or5-6
(b) Any of his dependents elect to assume the premium or contribution5-7
applicable to the dependent’s coverage before the death of such a retired5-8
person and continue coverage pursuant to NRS 287.023 after his death.5-9
2. The board may adopt regulations to carry out the provisions of5-10
subsection 1, including , but not limited to , regulations governing the5-11
number and types of obligations, amounts for the payment of which may be5-12
deducted and paid by the board at the option of the officer or employee5-13
pursuant to this section.5-14
3. The executive officer, board and system are not liable for any5-15
damages resulting from errors or omissions concerning the deductions and5-16
payment of premiums or contributions authorized pursuant to this section5-17
unless willful neglect or gross negligence is proven.5-18
Sec. 4. Chapter 287 of NRS is hereby amended by adding thereto the5-19
provisions set forth as sections 5 to 12.5, inclusive, of this act.5-20
Sec. 5. As used in NRS 287.041 to 287.049, inclusive, and sections 55-21
to 12.5, inclusive, of this act, unless the context otherwise requires, the5-22
words and terms defined in sections 6 and 7 of this act have the5-23
meanings ascribed to them in those sections.5-24
Sec. 6. "Board" means the board of the public employees’ benefits5-25
program created by NRS 287.041.5-26
Sec. 7. "Program" means the public employees’ benefits program5-27
established pursuant to subsection 1 of NRS 287.043.5-28
Sec. 8. 1. A majority of the members of the board constitutes a5-29
quorum for the transaction of business.5-30
2. The governor shall designate one of the members of the board to5-31
serve as the chairman.5-32
3. The board shall meet at least once every calendar quarter and at5-33
other times upon the call of the chairman.5-34
4. The board may meet in closed session:5-35
(a) To discuss matters relating to personnel;5-36
(b) To prepare a request for a proposal or other solicitation for bids to5-37
be released by the board for competitive bidding; or5-38
(c) As otherwise provided pursuant to chapter 241 of NRS.5-39
5. As used in this section, "request for a proposal" has the meaning5-40
ascribed to it in subsection 6 of NRS 333.020.5-41
Sec. 9. The board may reimburse a witness whom the board requests5-42
appear before it and who has expertise in a field that is relevant to the6-1
program for any expenses relating to the testimony of the witness that the6-2
board deems reasonable. Sec. 10. 1. The board shall employ an executive officer who is in6-4
the unclassified service of the state and serves at the pleasure of the6-5
board. The board may delegate to the executive officer the exercise or6-6
discharge of any power, duty or function vested in or imposed upon the6-7
board.6-8
2. The executive officer must:6-9
(a) Be a graduate of a 4-year college or university with a degree in6-10
business administration or public administration or an equivalent degree,6-11
as determined by the board; and6-12
(b) Possess at least 5 years’ experience in a high-level administrative6-13
or executive capacity in the field of insurance, management of6-14
employees’ benefits or risk management, including, without limitation,6-15
responsibility for a variety of administrative functions such as personnel,6-16
accounting, data processing or the structuring of insurance programs.6-17
3. Except as otherwise provided in NRS 284.143, the executive6-18
officer shall not pursue any other business or occupation or perform the6-19
duties of any other office of profit during normal office hours unless on6-20
leave approved in advance. The executive officer shall not participate in6-21
any business enterprise or investment with any vendor or provider to the6-22
program.6-23
4. The executive officer is entitled to an annual salary fixed by the6-24
board with the approval of the interim retirement and benefits committee6-25
of the legislature created pursuant to section 36.5 of this act. The salary6-26
of the executive officer is exempt from the limitations set forth in NRS6-27
281.123.6-28
Sec. 11. 1. Each member of the board and the executive officer6-29
shall complete at least 16 hours of continuing education relating to the6-30
administration of group benefits for public employees each year.6-31
2. While attending courses of continuing education, a member of the6-32
board who is a public employee and the executive officer must be granted6-33
administrative leave with pay and are entitled to receive the travel6-34
expenses provided for state officers and employees generally.6-35
3. While attending courses of continuing education, a member of the6-36
board who is not a public employee is entitled to receive the per diem6-37
allowance and travel expenses provided for state officers and employees6-38
generally.6-39
Sec. 11.5. 1. A participating state employee whose position is only6-40
authorized for 4 to 6 months every other year and who plans to return to6-41
the same or a similar position for the next period during which such a6-42
position is authorized may retain his membership in and his dependents’6-43
coverage by the program after his employment ceases for:7-1
(a) Six full calendar months in addition to the period of extended7-2
coverage required by federal law following the termination of7-3
employment; or7-4
(b) Twenty-four full calendar months, if no period of extended7-5
coverage is required by federal law.7-6
2. An employee who elects to continue his participation in the7-7
program pursuant to subsection 1 shall pay the entire premium or7-8
contribution plus allowable administrative fees for his insurance until the7-9
date on which he is reemployed.7-10
3. Failure to return to the same or a similar position for any reason,7-11
whether the decision was made by the former employee or the state, does7-12
not affect the application of this section.7-13
Sec. 12. (Deleted by amendment.)7-14
Sec. 12.5. 1. If approved by the board pursuant to this section, a7-15
group of not less than 300 officers, employees or retired employees, or7-16
any combination thereof, that participate in the program may leave the7-17
program and secure life, accident or health insurance, or any7-18
combination thereof, for the group from an:7-19
(a) Insurer that is authorized by the commissioner of insurance to7-20
provide such insurance; or7-21
(b) Employee benefit plan, as defined in 29 U.S.C. § 1002(3) that has7-22
been approved by the board. The board may approve an employee benefit7-23
plan unless the board finds that the plan is not operated pursuant to such7-24
sound accounting and financial management practices as to ensure that7-25
the group will continue to receive adequate benefits.7-26
2. Before entering into a contract with the insurer or approved7-27
employee benefit plan, the group shall submit the proposed contract to7-28
the board for approval. The board may approve the contract unless the7-29
departure of the group from the program would cause an increase of7-30
more than 5 percent in the costs of premiums or contributions for the7-31
remaining participants in the program. In determining whether to7-32
approve a proposed contract, the board shall follow the criteria set forth7-33
in the regulations adopted by the board pursuant to subsection 4 and may7-34
consider the cumulative impact of groups that have left or are proposing7-35
to leave the program. Except as otherwise provided in this section, the7-36
board has discretion in determining whether to approve a contract. If the7-37
board approves a proposed contract pursuant to this subsection, the7-38
group that submitted the proposed contract is not authorized to leave the7-39
program until 120 days after the date on which the board approves the7-40
proposed contract.7-41
3. The board shall disburse periodically to the insurer or employee7-42
benefit plan with which a group contracts pursuant to this section the7-43
total amount set forth in the contract for premiums or contributions for8-1
the members of the group for that period but not to exceed the amount8-2
appropriated to or authorized for the department, agency, commission or8-3
public agency that employs the members of the group for premiums or8-4
contributions for the members of the group for that period, after8-5
deducting any administrative costs related to the group.8-6
4. The board shall adopt regulations establishing the criteria8-7
pursuant to which the board will approve proposed contracts pursuant to8-8
subsection 2.8-9
Sec. 13. NRS 287.023 is hereby amended to read as follows: 287.023 1. Whenever an officer or employee of the governing body8-11
of any county, school district, municipal corporation, political subdivision,8-12
public corporation or other public agency of the State of Nevada retires8-13
under the conditions set forth in NRS 286.510 or 286.620 and, at the time8-14
of his retirement, was covered or had his dependents covered by any group8-15
insurance or medical and hospital service established pursuant to NRS8-16
287.010 and 287.020, the officer or employee has the option upon8-17
retirement to cancel or continue any such group insurance or8-18
8-19
coverage or join the public employees’ benefits program to the extent that8-20
such coverage is not provided to him or a dependent by the Health8-21
Insurance for the Aged Act ,8-22
2. A retired person who continues coverage under the8-23
8-24
portion of the premium or membership costs for the coverage continued8-25
which the governing body does not pay on behalf of retired officers or8-26
employees. A person who joins the8-27
program for the first time upon retirement shall assume all costs for the8-28
coverage. A dependent of such a retired person has the option, which may8-29
be exercised to the same extent and in the same manner as the retired8-30
person, to cancel or continue coverage in effect on the date the retired8-31
person dies. The dependent is not required to continue to receive retirement8-32
payments from the public employees’ retirement system8-33
continue coverage.8-34
3. Except as otherwise provided in NRS 287.0235, notice of the8-35
selection of the option must be given in writing to the last public employer8-36
of the officer or employee within 30 days after the date of retirement or8-37
death, as the case may be. If no notice is given by that date, the retired8-38
employee and his dependents shall be deemed to have selected the option8-39
to cancel the coverage or not to join the8-40
benefits program, as the case may be.8-41
4. The governing body of any county, school district, municipal8-42
corporation, political subdivision, public corporation or other public8-43
agency of this state may pay the cost, or any part of the cost, of group9-1
insurance and medical and hospital service coverage for persons eligible9-2
for that coverage9-3
greater portion than it does for its current officers and employees.9-4
Sec. 14. NRS 287.0235 is hereby amended to read as follows: 287.0235 1. Notwithstanding the provisions of NRS 287.023 and9-6
287.045, a person or the surviving spouse of a person who did not, at the9-7
time of his retirement pursuant to the conditions set forth in NRS 286.5109-8
or 286.620, have the option to participate in the9-9
9-10
9-11
extent that such coverage is not provided to him or a dependent by the9-12
Health Insurance for the Aged Act ,9-13
(a) Providing the public employees’ retirement board with written notice9-14
of his intention to enroll in the9-15
program during a period of open enrollment;9-16
(b) Showing evidence of his good health as a condition of enrollment;9-17
(c) Accepting the9-18
public employees’ benefits program and any subsequent changes to the9-19
plan; and9-20
(d) Paying any portion of the9-21
the program in the manner set forth in NRS 286.615, which are due9-22
after the date of enrollment.9-23
The public employees’ retirement board shall, beginning on September 1,9-24
1997, have a biennial period of open enrollment between September 1 of9-25
each odd-numbered year and January 31 of each even-numbered year9-26
during which eligible retired persons may join the9-27
9-28
2. The public employees’ retirement board shall, on or before9-29
September 1, 1997, and every September 1 of each odd-numbered year9-30
thereafter, notify eligible retired persons described in subsection 1 of the9-31
period of open enrollment by:9-32
(a) Mailing a notice regarding the period of open enrollment to all9-33
retired persons who are, according to its records, eligible to join the9-34
9-35
(b) Posting a notice of the period of open enrollment at its principal9-36
office and at least three other separate prominent places, such as a library,9-37
community center or courthouse; and9-38
(c) Publicizing the period of open enrollment in any other manner9-39
reasonably calculated to inform additional eligible retired persons.9-40
3. The public employees’ retirement board shall notify the9-41
9-42
enrollment of any person on or before March 1 immediately following the9-43
period of open enrollment. The10-1
employees’ benefits program shall approve or disapprove the request for10-2
enrollment within 90 days after receipt of the request. Enrollment shall be10-3
deemed to occur on the day the request is approved.10-4
4. Enrollment in the10-5
employees’ benefits program pursuant to this section excludes claims for10-6
expenses for any condition for which medical advice, treatment or10-7
consultation was rendered within 12 months before enrollment unless:10-8
(a) The person has not received any medical advice, treatment or10-9
consultation for a period of 6 consecutive months after enrollment; or10-10
(b) The insurance coverage has been in effect more than 12 consecutive10-11
months. Sec. 15. NRS 287.025 is hereby amended to read as follows: 287.025 The governing body of any county, school district, municipal10-14
corporation, political subdivision, public corporation or other public10-15
agency of the State of Nevada may, in addition to the other powers granted10-16
in NRS 287.010 and 287.020:10-17
1. Negotiate and contract with any other such agency or with the10-18
10-19
public employees’ benefits program to secure group insurance for its10-20
officers and employees and their dependents by participation in any group10-21
insurance plan established or to be established or in the10-22
10-23
2. To secure group health ,10-24
insurance for its officers and employees and their dependents, participate as10-25
a member of a nonprofit cooperative association or nonprofit corporation10-26
that has been established in this state to secure such insurance for its10-27
members from an insurer licensed pursuant to the provisions of Title 57 of10-28
NRS.10-29
3. In addition to the provisions of subsection 2, participate as a10-30
member of a nonprofit cooperative association or nonprofit corporation that10-31
has been established in this state to:10-32
(a) Facilitate contractual arrangements for the provision of medical10-33
services to its members’ officers and employees and their dependents and10-34
for related administrative services.10-35
(b) Procure health-related information and disseminate that information10-36
to its members’ officers and employees and their dependents.10-37
Sec. 16. NRS 287.030 is hereby amended to read as follows: 287.030 No provisions of law prohibiting, restricting or limiting the10-39
assignment of or order for wages or salary shall be deemed in any way to10-40
prohibit, restrict or limit the powers enumerated in NRS 287.010 and10-41
287.020, nor the right and power of officers or employees to authorize and10-42
approve payment of premiums or contributions by wage and salary10-43
deductions.11-1
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 not11-3
make it compulsory upon any governing body of any county, school11-4
district, municipal corporation, political subdivision, public corporation or11-5
other public agency of the State of Nevada to make any contributions for11-6
the payment of any premiums or other costs for group insurance or medical11-7
or hospital services, or upon any officer or employee of any county, school11-8
district, municipal corporation, political subdivision, public corporation or11-9
other public agency of this state to accept or join any plan of group11-10
insurance or to assign his wages or salary or to authorize deductions from11-11
his wages or salary in payment of premiums or contributions therefor.11-12
Sec. 18. NRS 287.041 is hereby amended to read as follows: 287.041 1. There is hereby created the11-14
11-15
board consists of nine members appointed as follows:11-16
11-17
11-18
11-19
11-20
11-21
11-22
(a) One member who is a professional employee of the University and11-23
Community College System of Nevada, appointed by the governor upon11-24
consideration of any recommendations of organizations that represent11-25
employees of the University and Community College System of Nevada.11-26
(b) One member who is retired from public employment, appointed by11-27
the governor upon consideration of any recommendations of11-28
organizations that represent retired public employees.11-29
(c) Two members who are employees of the state, appointed by the11-30
governor upon consideration of any recommendations of organizations11-31
that represent state employees.11-32
(d) One member appointed by the governor upon consideration of any11-33
recommendations of organizations that represent employees of local11-34
governments that participate in the program.11-35
(e) One member who is employed by this state in a managerial11-36
capacity and has substantial and demonstrated experience in risk11-37
management, portfolio investment strategies or employee benefits11-38
programs appointed by the governor. The governor may appoint the11-39
executive officer of the public employees’ retirement system to fill this11-40
position.11-41
(f) Two members who have substantial and demonstrated experience11-42
in risk management, portfolio investment strategies or employee benefits11-43
programs appointed by the governor.12-1
(g) The director of the department of administration or his designee.12-2
2. Of the six persons appointed to the board pursuant to paragraphs12-3
(a) to (e), inclusive, of subsection 1, at least one member must have an12-4
advanced degree in business administration, economics, accounting,12-5
insurance, risk management or health care administration, and at least12-6
two members must have education or proven experience in the12-7
management of employees’ benefits, insurance, risk management, health12-8
care administration or business administration.12-9
3. Each person appointed as a member of the board must:12-10
(a) Except for a member appointed pursuant to paragraph (f) of12-11
subsection 1, have been a participant in the program for at least 1 year12-12
before his appointment;12-13
(b) Except for a member appointed pursuant to paragraph (f) of12-14
subsection 1, be a current employee of the State of Nevada or another12-15
public employer that participates in the program or a retired public12-16
employee who is a participant in the program; and12-17
(c) Not be an elected officer of the State of Nevada or any of its12-18
political subdivisions.12-19
4. Except as otherwise provided in this subsection, after the initial12-20
terms, the term of an appointed member of the board is 4 years and until12-21
his successor is appointed and takes office unless the member no longer12-22
possesses the qualifications for appointment set forth in this section or is12-23
removed by the governor. If a member loses the requisite qualifications12-24
within the last 12 months of his term, the member may serve the12-25
remainder of his term. Members are eligible for reappointment. A12-26
vacancy occurring in the membership of the board must be filled in the12-27
same manner as the original appointment.12-28
5. The appointed members of the board serve at the pleasure of the12-29
governor. If the governor wishes to remove a member from the board for12-30
any reason other than malfeasance or misdemeanor, the governor shall12-31
provide the member with written notice which states the reason for and12-32
the effective date of the removal.12-33
Sec. 19. NRS 287.042 is hereby amended to read as follows: 287.042 1.12-35
12-36
12-37
compensation for his services as a member of the12-38
member who is12-39
must be granted administrative leave from his duties to engage in the12-40
business of the12-41
compensation. Such leave does not reduce the amount of the member’s12-42
12-43
13-1
2. A member of the13-2
entitled to receive $80 per day for his attendance at meetings of the13-3
13-4
Sec. 20. NRS 287.043 is hereby amended to read as follows: 287.04313-6
13-7
1. The board shall:13-8
(a) Establish and carry out a program to be known as the public13-9
employees’ benefits program which:13-10
(1) Must include a program relating to group life, accident or health13-11
insurance, or any combination of these13-12
(2) May include a program to reduce taxable compensation or other13-13
forms of compensation other than deferred compensation,13-14
for the benefit of all state officers and employees and other persons who13-15
participate in the13-16
13-17
(b) Ensure that the program is funded on an actuarially sound basis13-18
and operated in accordance with sound insurance and business practices.13-19
2. In establishing and carrying out the program, the board shall:13-20
(a) Except as otherwise provided in this13-21
negotiate and contract with the governing body of any public agency13-22
enumerated in NRS 287.010 which is desirous of obtaining group insurance13-23
for its officers, employees and retired employees by participation in the13-24
13-25
shall establish separate rates and coverage for those officers, employees13-26
and retired employees based on actuarial reports.13-27
13-28
coverage to each participating public employer who may be affected by the13-29
changes. Notice must be provided at least 30 days before the effective date13-30
of the changes.13-31
13-32
combination of these, or , if applicable, a program to reduce the amount of13-33
taxable compensation pursuant to 26 U.S.C. § 125, from any company13-34
qualified to do business in this state or provide similar coverage through a13-35
plan of self-insurance established pursuant to NRS 287.0433 for the13-36
benefit of all eligible public officers, employees and retired employees who13-37
participate in the13-38
13-39
13-40
13-41
(d) Except as otherwise provided in this Title, develop and establish13-42
other employee benefits as necessary.14-1
14-2
pursuant to section 12.5 of this act.14-3
(f) Adopt such regulations and perform such other duties as are14-4
necessary to carry out the provisions of NRS 287.041 to 287.049, inclusive,14-5
and sections 5 to 12.5, inclusive, of this act, including , without limitation,14-6
the establishment of:14-7
14-8
and for the late payment of premiums14-9
14-10
(2) Conditions for entry and reentry into the14-11
public agencies enumerated in NRS 287.010;14-12
14-13
employees of participating public agencies14-14
14-15
(4) Procedures by which a group of participants in the program14-16
may leave the program pursuant to section 12.5 of this act and conditions14-17
and procedures for reentry into the program by such participants; and14-18
(5) Specific procedures for the determination of contested claims.14-19
(g) Appoint an independent certified public accountant. The accountant14-20
shall provide14-21
(1) An annual audit of the14-22
(2) A biennial audit of the program to determine whether the14-23
program complies with federal and state laws relating to taxes and14-24
employee benefits.14-25
The accountant shall report to the14-26
14-27
committee of the legislature created pursuant to section 36.5 of this act.14-28
3. The board may use any services provided to state agencies and14-29
shall use the services of the purchasing division of the department of14-30
administration to establish and carry out the program.14-31
4. The board may make recommendations to the legislature14-32
concerning legislation that it deems necessary and appropriate regarding14-33
the program.14-34
5. The state and any other public employers that participate in the14-35
program are not liable for any obligation of the program other than14-36
indemnification of the board and its employees against liability relating14-37
to the administration of the program, subject to the limitations specified14-38
in NRS 41.0349.14-39
6. As used in this section, "employee benefits" includes any form of14-40
compensation provided to a state employee pursuant to this Title except14-41
federal benefits, wages earned, legal holidays, deferred compensation and14-42
benefits available pursuant to chapter 286 of NRS.15-1
Sec. 21. NRS 287.0433 is hereby amended to read as follows: 287.0433 The15-3
life, accident or health insurance and provide for the payment of15-4
contributions into the15-5
benefits program established pursuant to NRS 287.0435, a schedule of15-6
benefits and the disbursement of benefits from the fund. The15-7
board may reinsure any risk or any part of such a risk.15-8
15-9
15-10
Sec. 22. NRS 287.0434 is hereby amended to read as follows: 287.0434 The15-12
1. Use its assets to pay the expenses of health care for its members and15-13
covered dependents, to pay its employees’ salaries and to pay15-14
administrative and other expenses.15-15
2. Enter into contracts relating to the administration of15-16
15-17
licensed administrators and qualified actuaries.15-18
3. Enter into contracts with physicians, surgeons, hospitals, health15-19
maintenance organizations and rehabilitative facilities for medical, surgical15-20
and rehabilitative care and the evaluation, treatment and nursing care of15-21
members and covered dependents.15-22
4. Enter into contracts for the services of other experts and specialists15-23
as required by15-24
5. Charge and collect from an insurer, health maintenance organization,15-25
organization for dental care or nonprofit medical service corporation, a fee15-26
for the actual expenses incurred by the15-27
participating public employer in administering a plan of insurance offered15-28
by that insurer, organization or corporation.15-29
Sec. 23. NRS 287.0435 is hereby amended to read as follows: 287.0435 1.15-31
15-32
15-33
received for the program, including, without limitation, premiums and15-34
contributions, must be deposited in the state treasury for credit to the15-35
fund for the public employees’ benefits program which is hereby created15-36
as a trust fund. The fund must be accounted for as an internal service fund.15-37
Payments into and disbursements from the fund must be so arranged as15-38
to keep the fund solvent at all times.15-39
2. The money in the fund must be invested as other money of the state15-40
is invested and any income from investments paid into the fund for the15-41
benefit of the fund.15-42
3. Disbursements from the fund must be made as any other claims15-43
against the state are paid.16-1
4. The state treasurer may charge a reasonable fee for his services in16-2
administering the fund, but the state, the state general fund and the state16-3
treasurer are not liable to the fund for any loss sustained by the fund as a16-4
result of any investment made on behalf of the fund or any loss sustained in16-5
the operation of the16-6
16-7
16-8
16-9
16-10
Sec. 24. NRS 287.0437 is hereby amended to read as follows: 287.043716-12
16-13
16-14
16-15
16-16
1. The executive officer may appoint a quality control officer,16-17
operations officer, accounting officer, information technology systems16-18
officer and executive assistant who are in the unclassified service of the16-19
state and serve at the pleasure of the executive officer. The appointment16-20
and dismissal of the quality control officer are subject to the approval of16-21
the board.16-22
2. The quality control officer, operations officer, accounting officer16-23
and information technology systems officer must each be a graduate of a16-24
4-year college or university with a degree that is appropriate to their16-25
respective responsibilities or possess equivalent experience as determined16-26
by the board.16-27
3. The quality control officer, operations officer, accounting officer,16-28
information technology systems officer and executive assistant are16-29
entitled to annual salaries fixed by the board with the approval of the16-30
interim retirement and benefits committee of the legislature created16-31
pursuant to section 36.5 of this act. The salaries of these employees are16-32
exempt from the limitations set forth in NRS 281.123.16-33
4. The executive officer may employ such staff in the classified16-34
service of the state as are necessary for the performance of his duties,16-35
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 former16-38
members, the correspondence, files, minutes and books of the16-39
program are public records.16-40
Sec. 26. NRS 287.0439 is hereby amended to read as follows: 287.0439 1. A participating public employer shall, on request,16-42
furnish to the16-43
carry out the provisions of this chapter. Members of the17-1
and its employees or agents may examine under oath any officer, agent or17-2
employee of a participating public employer concerning the information.17-3
2. The books, records and payrolls of a participating public employer17-4
must be available for inspection by members of the17-5
its employees and agents to obtain any information necessary for the17-6
administration of the17-7
accuracy of the payroll and identity of employees.17-8
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 for17-10
that group insurance, not to exceed the amount specified by law, applied to17-11
both group life and group accident or health coverage, for each public17-12
officer, except a senator or assemblyman, or employee electing to17-13
participate in the17-14
department, agency, commission or public agency which employs the17-15
officer or employee in whose behalf that part is paid from money17-16
appropriated to or authorized for that department, agency, commission or17-17
public agency for that purpose. Participation by the state in the cost of17-18
premiums or contributions must not exceed the amounts specified by law. If17-19
an officer or employee chooses to cover his dependents, whenever this17-20
option is made available by the17-21
pay the difference between the amount of the premium or contribution for17-22
the coverage for himself and his dependents and the amount paid by the17-23
state.17-24
2. A department, agency, commission or public agency shall not pay17-25
any part of those premiums or contributions if the group life insurance or17-26
group accident or health insurance is not approved by the17-27
17-28
Sec. 28. NRS 287.0445 is hereby amended to read as follows: 287.0445 The department, agency, commission or public agency which17-30
employed an officer or employee who:17-31
1. Was injured in the course of that employment;17-32
2. Receives compensation for a temporary total disability pursuant to17-33
NRS 616C.475; and17-34
3. Was a member of the17-35
at the time of the injury,17-36
shall pay the state’s share of the cost of the premiums17-37
17-38
for17-39
or employee is able to return to work, whichever is less. If the previous17-40
injury recurs within 1 month after the employee returns to work and the17-41
employee again receives compensation pursuant to NRS 616C.475 as a17-42
result of the previous injury, the department, agency, commission or public17-43
agency shall not, except as otherwise provided in this subsection, pay the18-1
state’s share of the cost of the premiums or contributions for the period18-2
during which the employee is unable to work as a result of the recurring18-3
previous injury. If the initial period of disability was less than 9 months, the18-4
department, agency, commission or public agency shall pay, during the18-5
recurrence, the state’s share of the costs of the premiums or contributions18-6
for a period which, when added to the initial period, equals not more than 918-7
months.18-8
Sec. 29. NRS 287.045 is hereby amended to read as follows: 287.045 1. Except as otherwise provided in this section, every officer18-10
or employee of the state is eligible to participate in the program on the first18-11
day of the month following the completion of 90 days of full-time18-12
employment.18-13
2. Professional employees of the University and Community College18-14
System of Nevada who have annual employment contracts are eligible to18-15
participate in the program on:18-16
(a) The effective dates of their respective employment contracts, if those18-17
dates are on the first day of a month; or18-18
(b) The first day of the month following the effective dates of their18-19
respective employment contracts, if those dates are not on the first day of a18-20
month.18-21
3. Every officer or employee who is employed by a participating public18-22
agency on a permanent and full-time basis on the date the agency enters18-23
into an agreement to participate in the18-24
and every officer or employee who commences his employment after that18-25
date is eligible to participate in the program on the first day of the month18-26
following the completion of 90 days of full-time employment.18-27
4. Every senator and assemblyman is eligible to participate in the18-28
program on the first day of the month following the 90th day after his initial18-29
term of office begins.18-30
5. An officer or employee of the governing body of any county, school18-31
district, municipal corporation, political subdivision, public corporation or18-32
other public agency of the State of Nevada who retires under the conditions18-33
set forth in NRS 286.510 or 286.620 and was not participating in the18-34
18-35
participate in the program 30 days after notice of the selection to participate18-36
is given pursuant to NRS 287.023 or 287.0235. The18-37
18-38
For the first year following enrollment, the rates charged must be the full18-39
actuarial costs determined by the actuary based upon the expected claims18-40
experience with these retired persons. The claims experience of these18-41
retired persons must not be commingled with the retired persons who were18-42
members of the18-43
employees of the state. After the first year following enrollment, the rates19-1
charged must be the full actuarial costs determined by the actuary based19-2
upon the past claims experience of these retired persons since enrolling.19-3
6. Notwithstanding the provisions of subsections 1, 3 and 4, if the19-4
19-5
to exclude the program from compliance with NRS 689B.340 to 689B.590,19-6
inclusive, and if the coverage under the program is provided by a health19-7
maintenance organization authorized to transact insurance in this state19-8
pursuant to chapter 695C of NRS, any affiliation period imposed by the19-9
program may not exceed the statutory limit for an affiliation period set forth19-10
in NRS 689B.500.19-11
Sec. 30. NRS 287.046 is hereby amended to read as follows: 287.046 1. Except as otherwise provided in subsection 6, any state or19-13
other participating officer or employee who elects to participate in the19-14
19-15
agency, commission or public agency that employs the officer or employee19-16
shall pay the state’s share of the cost of the premiums or contributions for19-17
the19-18
provided in NRS 287.044. Employees who elect to participate in the19-19
19-20
compensation for the payment of premiums or contributions19-21
19-22
2. The department of personnel shall pay a percentage of the base19-23
amount provided by law for that fiscal year toward the cost of the premiums19-24
or contributions for19-25
the service of the state who have continued to participate19-26
program. Except as otherwise provided in subsection 3, the percentage to19-27
be paid must be calculated as follows:19-28
(a) For those persons who retire before January 1, 1994, 100 percent of19-29
the base amount provided by law for that fiscal year.19-30
(b) For those persons who retire on or after January 1, 1994, with at19-31
least 5 years of state service, 25 percent plus an additional 7.5 percent for19-32
each year of service in excess of 5 years to a maximum of 137.5 percent,19-33
excluding service purchased pursuant to NRS 286.300, of the base amount19-34
provided by law for that fiscal year.19-35
3. If the amount calculated pursuant to subsection 2 exceeds the actual19-36
premium19-37
participant selects, the balance must be credited to the19-38
for the public employees’ benefits program created pursuant to NRS19-39
287.0435.19-40
4. For the purposes of subsection 2:19-41
(a) Credit for service must be calculated in the manner provided by19-42
chapter 286 of NRS.19-43
(b) No proration may be made for a partial year of service.20-1
5. The department shall agree through the20-2
board with the insurer for billing of remaining premiums or contributions20-3
for the retired participant and his dependents to the retired participant and20-4
to his dependents who elect to continue coverage under the20-5
20-6
6. A senator or assemblyman who elects to participate in the20-7
20-8
his insurance.20-9
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 of20-11
such an officer or employee incurs an illness or injury for which medical20-12
services are payable under the plan for self-insurance20-13
by the20-14
under circumstances creating a legal liability in some person, other than the20-15
officer, employee or dependent, to pay all or part of the cost of those20-16
services, the20-17
officer, employee or dependent to the extent of all such costs, and may join20-18
or intervene in any action by the officer, employee or dependent or his20-19
successors in interest, to enforce that legal liability.20-20
2. If an officer, employee or dependent or his successors in interest fail20-21
or refuse to commence an action to enforce that legal liability, the20-22
20-23
notice to the officer, employee or dependent or his successors in interest, to20-24
recover all costs to which it is entitled. In any such action by the20-25
20-26
joined as a third party defendant.20-27
3. If the20-28
the officer, employee or dependent or his successors in interest as provided20-29
in subsection 1, the20-30
proceeds of any recovery from the persons liable, whether the proceeds of20-31
the recovery are by way of a judgment or settlement or otherwise. Within20-32
15 days after recovery by receipt of the proceeds of the judgment,20-33
settlement or other recovery, the officer, employee or dependent or his20-34
successors in interest shall notify the20-35
recovery and pay the20-36
pursuant to this section. The officer, employee or dependent or his20-37
successors in interest are not entitled to double recovery for the same20-38
injury.20-39
4. The officer, employee or dependent or his successors in interest20-40
shall notify the20-41
any settlement or agreement or commencing any action to enforce the legal20-42
liability referred to in subsection 1.21-1
Sec. 32. NRS 287.047 is hereby amended to read as follows: 287.047 If the retention is consistent with the terms of any agreement21-3
between the state and the insurance company which issued the policies21-4
pursuant to the program or with the plan of self-insurance21-5
program:21-6
1. A participating state employee who retires on or after July 1, 1985,21-7
may retain his membership in and his dependents’ coverage by the21-8
21-9
2. A participating legislator who retires from the service of the state or21-10
who completes 8 years of service as such may retain his membership in and21-11
his dependents’ coverage by the21-12
program.21-13
Sec. 33. NRS 287.0475 is hereby amended to read as follows: 287.0475 1. A public employee who has retired pursuant to NRS21-15
286.510 or 286.620 or a retirement program provided pursuant to NRS21-16
286.802, or the surviving spouse of such a retired public employee who is21-17
deceased may, in any even-numbered year, reinstate any insurance, except21-18
life insurance, which was provided to him and his dependents at the time of21-19
his retirement21-20
NRS 287.010 or 287.020 or the program as a public employee by:21-21
(a) Giving written notice of his intent to reinstate the insurance to the21-22
employee’s last public employer not later than January 31, of an even-21-23
numbered year;21-24
(b) Accepting the public employer’s current program or plan of21-25
insurance and any subsequent changes thereto; and21-26
(c) Paying any portion of the21-27
contributions of the public employer’s program or plan of insurance, in21-28
the manner set forth in NRS 286.615, which are due from the date of21-29
reinstatement and not paid by the public employer.21-30
The last public employer shall give the insurer notice of the reinstatement21-31
no later than March 31, of the year in which the public employee or21-32
surviving spouse gives notice of his intent to reinstate the insurance. The21-33
insurer shall approve or disapprove the request for reinstatement within 9021-34
days after the date of the request.21-35
2. Reinstatement of insurance excludes claims for expenses for any21-36
condition for which medical advice, treatment or consultation was rendered21-37
within21-38
(a) The person has not received any medical advice, treatment or21-39
consultation for a period of 6 consecutive months after the reinstatement; or21-40
(b) The reinstated insurance has been in effect more than 12 consecutive21-41
months.22-1
22-2
22-3
22-4
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 12.5,22-6
inclusive, of this act, do not require any officer or employee of the State of22-7
Nevada to accept or join the22-8
program, or to assign his wages or salary to or authorize deductions from22-9
his wages or salary in payment of premiums or contributions for22-10
22-11
Sec. 35. NRS 287.049 is hereby amended to read as follows: 287.049 The cost of premiums or contributions for22-13
the program as provided in NRS 287.044 must be budgeted for as other22-14
expenditures of the state are budgeted for.22-15
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 the22-17
board of regents of the University of Nevada may agree with any of its22-18
employees, to reduce the amount of taxable compensation due to an22-19
employee in accordance with a program established pursuant to 26 U.S.C. §22-20
125 by the22-21
benefits program.22-22
2. Political subdivisions of this state may agree with any of their22-23
employees to reduce the amount of taxable compensation due to an22-24
employee in accordance with a program established pursuant to 26 U.S.C. §22-25
125.22-26
3. The employer shall deduct an amount from the taxable22-27
compensation of an employee pursuant to the agreement between the22-28
employer and the employee.22-29
4. An employer shall not make any reduction in the taxable22-30
compensation of an employee pursuant to this section until the program22-31
established meets the requirements of 26 U.S.C. § 125 for eligibility.22-32
5. The22-33
benefits program may establish and administer a program pursuant to 2622-34
U.S.C. § 125. The22-35
(a) Create an appropriate fund for administration of money and other22-36
assets resulting from the money deducted22-37
(b) Delegate to one or more state agencies or institutions of the22-38
University and Community College System of Nevada the responsibility for22-39
administering the program for their respective employees, including22-40
without limitation:22-41
(1) Collection of money deducted;22-42
(2) Transmittal of money collected to depositories within the state22-43
designated by the23-1
(3) Payment for eligible uses.23-2
(c) Contract with a natural person, corporation, institution or other23-3
entity, directly or through a state agency or institution of the University and23-4
Community College System of Nevada, for services necessary to the23-5
administration of the plan, including23-6
(1) Consolidated billing;23-7
(2) The keeping of records for each participating employee and the23-8
program;23-9
(3) The control and safeguarding of assets;23-10
(4) Programs for communication with employees; and23-11
(5) The administration and coordination of the program.23-12
6. Each employee who participates in a program established by the23-13
23-14
this section shall pay a proportionate share of the cost to administer the23-15
program as determined by the23-16
7. The provisions of this section do not supersede, make inoperative or23-17
reduce the benefits provided by the public employees’ retirement system or23-18
by any other retirement, pension or benefit program established by law.23-19
Sec. 36.5. Chapter 218 of NRS is hereby amended by adding thereto a23-20
new section to read as follows:23-21
1. There is hereby created an interim retirement and benefits23-22
committee of the legislature to review the operation of the public23-23
employees’ retirement system and the public employees’ benefits23-24
program and to make recommendations to the public employees’23-25
retirement board and the board of the public employees’ benefits23-26
program, the legislative commission and the legislature. The interim23-27
retirement and benefits committee consists of six members appointed as23-28
follows:23-29
(a) Three members of the senate, one of whom is the chairman of the23-30
committee on finance during the preceding session and two of whom are23-31
appointed by the majority leader of the senate.23-32
(b) Three members of the assembly, one of whom is the chairman of23-33
the committee on ways and means and two of whom are appointed by the23-34
speaker of the assembly.23-35
2. The immediate past chairman of the senate standing committee on23-36
finance is the chairman of the interim retirement and benefits committee23-37
for the period ending with the convening of each odd-numbered session23-38
of the legislature. The immediate past chairman of the assembly standing23-39
committee on ways and means is the chairman of the interim retirement23-40
and benefits committee during the next legislative interim, and the23-41
chairmanship alternates between the houses of the legislature according23-42
to this pattern.24-1
3. The interim retirement and benefits committee may exercise the24-2
powers conferred on it by law only when the legislature is not in regular24-3
or special session and shall meet at the call of the chairman.24-4
4. The director of the legislative counsel bureau shall provide a24-5
secretary for the interim retirement and benefits committee.24-6
5. The members of the interim retirement and benefits committee are24-7
entitled to receive the compensation provided for a majority of the24-8
members of the legislature during the first 60 days of the preceding24-9
session, the per diem allowance provided for state officers and employees24-10
generally and the travel expenses provided by NRS 218.2207 for each day24-11
of attendance at a meeting of the committee and while engaged in the24-12
business of the committee. Per diem allowances, compensation and travel24-13
expenses of the members of the committee must be paid from the24-14
legislative fund.24-15
Sec. 37. NRS 233B.039 is hereby amended to read as follows: 233B.039 1. The following agencies are entirely exempted from the24-17
requirements of this chapter:24-18
(a) The governor.24-19
(b) The department of prisons.24-20
(c) The University and Community College System of Nevada.24-21
(d) The office of the military.24-22
(e) The state gaming control board.24-23
(f) The Nevada gaming commission.24-24
(g) The welfare division of the department of human resources.24-25
(h) The division of health care financing and policy of the department of24-26
human resources.24-27
(i) The state board of examiners acting pursuant to chapter 217 of NRS.24-28
(j) Except as otherwise provided in NRS 533.365, the office of the state24-29
engineer.24-30
2. Except as otherwise provided in NRS 391.323, the department of24-31
education, the24-32
benefits program and the commission on professional standards in24-33
education are subject to the provisions of this chapter for the purpose of24-34
adopting regulations but not with respect to any contested case.24-35
3. The special provisions of:24-36
(a) Chapter 612 of NRS for the distribution of regulations by and the24-37
judicial review of decisions of the employment security division of the24-38
department of employment, training and rehabilitation;24-39
(b) Chapters 616A to 617, inclusive, of NRS for the determination of24-40
contested claims;24-41
(c) Chapter 703 of NRS for the judicial review of decisions of the public24-42
utilities commission of Nevada;25-1
(d) Chapter 91 of NRS for the judicial review of decisions of the25-2
administrator of the securities division of the office of the secretary of state;25-3
and25-4
(e) NRS 90.800 for the use of summary orders in contested cases,25-5
prevail over the general provisions of this chapter.25-6
4. The provisions of NRS 233B.122, 233B.124, 233B.125 and25-7
233B.126 do not apply to the department of human resources in the25-8
adjudication of contested cases involving the issuance of letters of approval25-9
for health facilities and agencies.25-10
5. The provisions of this chapter do not apply to:25-11
(a) Any order for immediate action, including, but not limited to,25-12
quarantine and the treatment or cleansing of infected or infested animals,25-13
objects or premises, made under the authority of the state board of25-14
agriculture, the state board of health, the state board of sheep25-15
commissioners or any other agency of this state in the discharge of a25-16
responsibility for the preservation of human or animal health or for insect25-17
or pest control; or25-18
(b) An extraordinary regulation of the state board of pharmacy adopted25-19
pursuant to NRS 453.2184.25-20
6. The state board of parole commissioners is subject to the provisions25-21
of this chapter for the purpose of adopting regulations but not with respect25-22
to any contested case.25-23
Sec. 38. NRS 277.067 is hereby amended to read as follows: 277.067 1. Except as otherwise provided in subsection 2, any two or25-25
more political subdivisions of this state, agencies of the state or the25-26
University and Community College System of Nevada may enter into a25-27
cooperative agreement for the purchase of insurance or the establishment of25-28
a self-insurance reserve or fund for coverage under a plan of:25-29
(a) Casualty insurance, as that term is defined in NRS 681A.020;25-30
(b) Marine and transportation insurance, as that term is defined in NRS25-31
681A.050;25-32
(c) Property insurance, as that term is defined in NRS 681A.060;25-33
(d) Surety insurance, as that term is defined in NRS 681A.070;25-34
(e) Health insurance, as that term is defined in NRS 681A.030; or25-35
(f) Insurance for any combination of these kinds of protection.25-36
2. Any political subdivision of the state, any agency of the state or the25-37
University and Community College System of Nevada which participates in25-38
the25-39
program shall obtain the approval of the25-40
the public employees’ benefits program before it enters into a cooperative25-41
agreement for the purchase of health insurance pursuant to paragraph (e) of25-42
subsection 1.26-1
3. Any such agreement may obligate the respective parties to pledge26-2
revenues or contribute money to secure the obligations or pay the expenses26-3
of the cooperative undertaking and may provide for the establishment of a26-4
separate entity to administer the undertaking.26-5
Sec. 39. Chapter 331 of NRS is hereby amended by adding thereto a26-6
new section to read as follows:26-7
The state risk manager may employ such staff as is necessary for the26-8
performance of his duties, within limits of legislative appropriations or26-9
other available money.26-10
Sec. 40. NRS 331.184 is hereby amended to read as follows: 331.184 The state risk manager shall:26-12
1. Direct and supervise all administrative and technical activities of the26-13
risk management division.26-14
2. Determine the nature and extent of requirements for insurance, other26-15
than group life, accident or health insurance, on risks of an insurable nature26-16
of the state and any of its agencies, the premiums for which are payable in26-17
whole or in part from public money.26-18
3. Negotiate for, procure, purchase and have placed, through a licensed26-19
insurance agent or broker residing or domiciled in Nevada, or continued in26-20
effect all insurance coverages, other than employee group life, accident or26-21
health insurance, which may be reasonably obtainable, whether from26-22
insurers authorized to transact business in this state or under the surplus26-23
lines provisions of chapter 685A of NRS.26-24
4. Conduct periodic inspections of premises, property and risks to26-25
determine insurability, risk and premium rate, and submit a written report26-26
of each inspection and appraisal, together with any recommendations that26-27
appear appropriate, to the administrator of the agency most responsible for26-28
the premises, property or risk, and to the director of the department of26-29
administration.26-30
5. Provide for self-insurance if the potential loss is relatively26-31
insignificant or if the risk is highly predictable and the probability of loss is26-32
so slight that the cost of insuring the risk is not a prudent expenditure of26-33
public funds, or if insurance is unavailable or unavailable at a reasonable26-34
cost.26-35
6. Select reasonable deductibles when it appears economically26-36
advantageous to the state to do so.26-37
7. Select comprehensive and blanket coverages insuring the property of26-38
two or more state agencies when that appears economically advisable.26-39
8. Investigate and determine the reliability and financial condition of26-40
insurers, and the services they provide.26-41
9. Minimize risks by adopting and promoting programs to control26-42
losses and encourage safety.27-1
10. Perform any of the services described in subsections 2, 3 and 4 for27-2
any political subdivision of the state at the request of its managing officer27-3
or governing body.27-4
11.27-5
27-6
director of the department of administration.27-7
Sec. 41. Chapter 679B of NRS is hereby amended by adding thereto a27-8
new section to read as follows:27-9
1. The commissioner shall adopt regulations which require the use of27-10
uniform claim forms and billing codes and the ability to make27-11
compatible electronic data transfers for all insurers and administrators27-12
authorized to conduct business in this state relating to a health care plan27-13
or health insurance or providing or arranging for the provision of health27-14
care services, including, without limitation, an insurer that issues a27-15
policy of health insurance, an insurer that issues a policy of group health27-16
insurance, a carrier serving small employers, a fraternal benefit society,27-17
a hospital or medical service corporation, a health maintenance27-18
organization, a plan for dental care and a prepaid limited health service27-19
organization.27-20
2. As used in this section:27-21
(a) "Administrator" has the meaning ascribed to it in NRS 683A.025.27-22
(b) "Health care plan" means a policy, contract, certificate or27-23
agreement offered or issued by an insurer to provide, deliver, arrange27-24
for, pay for or reimburse any of the costs of health care services.27-25
Sec. 42. NRS 689B.065 is hereby amended to read as follows: 689B.065 1. A policy of group health insurance issued to replace any27-27
discontinued policy or coverage for group health insurance must:27-28
(a) Provide coverage for all persons who were covered under the27-29
previous policy or coverage on the date it was discontinued; and27-30
(b) Except as otherwise provided in subsection 2, provide benefits27-31
which are at least as extensive as the benefits provided by the previous27-32
policy or coverage, except that benefits may be reduced or excluded to the27-33
extent that such a reduction or exclusion was permissible under the terms of27-34
the previous policy or coverage,27-35
if that replacement policy is issued within 60 days after the date on which27-36
the previous policy or coverage was discontinued.27-37
2. If an employer obtains a replacement policy pursuant to subsection 127-38
to cover his employees, any benefits provided by the previous policy or27-39
coverage may be reduced if notice of the reduction is given to his27-40
employees pursuant to NRS 608.1577.27-41
3. Any insurer which issues a replacement policy pursuant to27-42
subsection 1 may submit a written request to the insurer who provided the27-43
previous policy or coverage for a statement of benefits which were28-1
provided under that policy or coverage. Upon receiving such a request, the28-2
insurer who provided the previous policy or coverage shall give a written28-3
statement to the insurer providing the replacement policy which indicates28-4
what benefits were provided and what exclusions or reductions were in28-5
effect under the previous policy or coverage.28-6
4. The provisions of this section:28-7
(a) Apply to a self-insured employer who provides health benefits to his28-8
employees and replaces those benefits with a policy of group health28-9
insurance.28-10
(b) Do not apply to the28-11
employees’ benefits program established pursuant to NRS 287.041 to28-12
287.049, inclusive28-13
Sec. 42.5. Section 18 of this act is hereby amended to read as follows:28-14
Sec. 18. NRS 287.041 is hereby amended to read as follows:28-15
287.041 1. There is hereby created the board of the public28-16
employees’ benefits program. The board consists of28-17
members appointed as follows:28-18
(a) One member who is an employee of the University and28-19
Community College System of Nevada, appointed by the governor28-20
upon consideration of any recommendations of organizations that28-21
represent employees of the University and Community College28-22
System of Nevada.28-23
(b) One member who is retired from public employment,28-24
appointed by the governor upon consideration of any28-25
recommendations of organizations that represent retired public28-26
employees.28-27
(c) Two members who are employees of the state, appointed by28-28
the governor upon consideration of any recommendations of28-29
organizations that represent state employees.28-30
(d) One member appointed by the governor upon consideration28-31
of any recommendations of organizations that represent employees28-32
of local governments that participate in the program.28-33
(e) One member who is employed by this state in a managerial28-34
capacity and has substantial and demonstrated experience in risk28-35
management, portfolio investment strategies or employee benefits28-36
programs appointed by the governor. The governor may appoint the28-37
executive officer of the public employees’ retirement system to fill28-38
this position.28-39
(f)28-40
28-41
28-42
28-43
designee.29-1
2. Of the six persons appointed to the board pursuant to29-2
paragraphs (a) to (e), inclusive, of subsection 1, at least one member29-3
must have an advanced degree in business administration,29-4
economics, accounting, insurance, risk management or health care29-5
administration, and at least two members must have education or29-6
proven experience in the management of employees’ benefits,29-7
insurance, risk management, health care administration or business29-8
administration.29-9
3. Each person appointed as a member of the board must:29-10
(a)29-11
29-12
least 1 year before his appointment;29-13
(b)29-14
29-15
another public employer that participates in the program or a retired29-16
public employee who is a participant in the program; and29-17
(c) Not be an elected officer of the State of Nevada or any of its29-18
political subdivisions.29-19
4. Except as otherwise provided in this subsection, after the29-20
initial terms, the term of an appointed member of the board is 429-21
years and until his successor is appointed and takes office unless the29-22
member no longer possesses the qualifications for appointment set29-23
forth in this section or is removed by the governor. If a member29-24
loses the requisite qualifications within the last 12 months of his29-25
term, the member may serve the remainder of his term. Members29-26
are eligible for reappointment. A vacancy occurring in the29-27
membership of the board must be filled in the same manner as the29-28
original appointment.29-29
5. The appointed members of the board serve at the pleasure of29-30
the governor. If the governor wishes to remove a member from the29-31
board for any reason other than malfeasance or misdemeanor, the29-32
governor shall provide the member with written notice which states29-33
the reason for and the effective date of the removal.29-34
Secs. 43-46. (Deleted by amendment.)29-35
Sec. 47. Section 3 of Assembly Bill No. 176 of this session is hereby29-36
amended to read as follows:29-37
Sec. 3. 1. Notwithstanding the provisions of NRS 287.041 to29-38
287.049, inclusive, to the contrary, the operation of the Committee29-39
on Benefits, created by NRS 287.041, is hereby29-40
suspended and the committee shall not transact any business or hold29-41
any meetings29-42
29-43
members of the board of the public employees’ benefits program30-1
are appointed pursuant to section 48 of Senate Bill No. 544 of this30-2
session.30-3
2. The Governor, or his designee, shall administer the30-4
provisions of NRS 287.041 to 287.049, inclusive30-5
members of the board of the public employees’ benefits program30-6
are appointed pursuant to section 48 of Senate Bill No. 544 of this30-7
session. For this purpose, the Governor or his designee are hereby30-8
granted all powers necessary and proper to ensure the efficient and30-9
effective operation of the plan of self-insurance for state officers30-10
and employees and all other programs and benefits authorized by30-11
NRS 287.041 to 287.049, inclusive, and shall act on behalf of the30-12
Committee on Benefits in all matters relating to any contracts or30-13
other matters to which the committee is a party.30-14
3. The State of Nevada is liable for indemnification of the30-15
Governor and his designee against liability relating to the30-16
administration of the state’s program of group insurance, subject to30-17
the limitations specified in NRS 41.0349.30-18
Sec. 47.5. NRS 286.113 and 287.0432 are hereby repealed.30-19
Sec. 48. 1. The terms of the persons who are members of the30-20
committee on benefits on June 30, 1999, expire on that date.30-21
2. As soon as practicable on or before July 1, 1999, the appointing30-22
authorities set forth in subsection 1 of NRS 287.041, as amended by this30-23
act, shall appoint members of the board. The initial appointed members of30-24
the board shall, at the first meeting of the board after their appointment,30-25
draw lots to determine which:30-26
(a) Member will serve an initial term that begins on July 1, 1999, and30-27
expires on July 1, 2000;30-28
(b) Member will serve an initial term that begins on July 1, 1999, and30-29
expires on July 1, 2001;30-30
(c) Member will serve an initial term that begins on July 1, 1999, and30-31
expires on July 1, 2002; and30-32
(d) Two members will serve initial terms that begin on July 1, 1999, and30-33
expire on July 1, 2003.30-34
Sec. 48.5. On or before February 5, 2001, the board of the public30-35
employees’ benefits program created pursuant to NRS 287.041 shall submit30-36
a copy of the regulations adopted by the board pursuant to section 12.5 of30-37
this act to the 71st session of the Nevada Legislature.30-38
Sec. 49. 1. This section and sections 41, 47 and 48 of this act30-39
become effective upon passage and approval.30-40
2. Sections 1 to 12, inclusive, 13 to 28, inclusive, 30 to 40, inclusive,30-41
42, 48.5 and 50 of this act become effective on July 1, 1999.30-42
3. Section 29 of this act becomes effective at 12:01 a.m. on July 1,30-43
1999.31-1
4. Section 12.5 of this act becomes effective on July 1, 1999, for the31-2
purpose of adopting regulations, and on July 1, 2001, for all other31-3
purposes.31-4
5. Section 18 of this act expires by limitation on July 1, 2003.31-5
6. Section 42.5 of this act becomes effective on July 1, 2003.31-6
Sec. 50. The legislative counsel shall:31-7
1. In preparing the reprint and supplements to the Nevada Revised31-8
Statutes, with respect to any section that is not amended by this act or is31-9
further amended by another act, appropriately change any reference to31-10
"committee on benefits" to "board of the public employees’ benefits31-11
program."31-12
2. In preparing supplements to the Nevada Administrative Code,31-13
appropriately change any reference to "committee on benefits" to "board of31-14
the public employees’ benefits program."
31-15
TEXT OF REPEALED SECTIONS286.113 Interim retirement committee: Composition; chairman;
31-17
functions; salary, subsistence and travel of members.31-18
1. There is hereby created an interim retirement committee of the31-19
legislature composed of:31-20
(a) Three members of the senate, one of whom is the chairman of the31-21
committee on finance during the preceding session and two of whom shall31-22
be appointed by the majority leader of the senate.31-23
(b) Three members of the assembly, one of whom is the chairman of the31-24
committee on ways and means and two of whom shall be appointed by the31-25
speaker.31-26
2. The immediate past chairman of the committee on ways and means31-27
shall be the chairman of the interim retirement committee for the period31-28
ending with the convening of the 60th session of the legislature. The31-29
immediate past chairman of the committee on finance shall be the chairman31-30
of the interim retirement committee during the next legislative interim, and31-31
the chairmanship shall continue to alternate between the houses of the31-32
legislature according to this pattern.31-33
3. The interim retirement committee exists only when the legislature is31-34
not in regular or special session. During those times, it shall meet at the call31-35
of the chairman to review the operation of the system and to make31-36
recommendations to the board, the legislative commission and the31-37
legislature.31-38
4. The director of the legislative counsel bureau shall provide a31-39
secretary for the interim retirement committee. Each member of the32-1
committee is entitled to a salary of $80 for each day or part of a day during32-2
which he attends a committee meeting or is otherwise engaged in the work32-3
of the committee. Per diem allowances, salary and travel expenses of32-4
members of the committee must be paid from the legislative fund.32-5
287.0432 Committee on benefits: Procedures for contested claims.32-7
procedures for the determination of contested claims.
~