SB544

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; authorizing certain periodic state employees to receive extended coverage from the public employees’ benefits program; renaming the interim retirement committee and expanding its duties to include the review of 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

2-1 employees of the state may, upon written requests of the officer or

2-2 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 the [~~committee on benefits]~~ board of the public

2-6 employees’ benefits program has approved the request;

2-7 4. The United States for the purchase of savings bonds and similar

2-8 obligations of the United States; and

2-9 5. Employee organizations and labor organizations.

2-10 The state controller may adopt regulations necessary to withhold money

2-11 from the salaries or wages of officers and employees of the executive

2-12 department.

2-13 Sec. 2. NRS 284.355 is hereby amended to read as follows:

2-14 284.355 1. Except as otherwise provided in this section, all

2-15 employees in the public service, whether in the classified or unclassified

2-16 service, are entitled to sick and disability leave with pay of 1 1/4 working

2-17 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, the

2-19 amount of additional unused sick leave which he is entitled to carry forward

2-20 from one year to the next is limited to one-half of the unused sick leave

2-21 accrued during that year, but the department may by regulation provide for

2-22 subsequent use of unused sick leave accrued but not carried forward by

2-23 reason of this limitation in cases where the employee is suffering from a

2-24 long-term or chronic illness and has used all sick leave otherwise available

2-25 to him. Upon the retirement of an employee, his termination through no

2-26 fault of his own or his death while in public employment, the employee or

2-27 his beneficiaries are entitled to payment for his unused sick leave in excess

2-28 of 30 days, exclusive of any unused sick leave accrued but not carried

2-29 forward, according to his number of years of public service, except service

2-30 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 than

2-32 $2,500.

2-33 (b) For 15 years of service or more but less than 20 years, not more than

2-34 $4,000.

2-35 (c) For 20 years of service or more but less than 25 years, not more than

2-36 $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 disability

2-39 leave for long-term employees and for prorated sick and disability leave for

2-40 part-time employees.

2-41 2. An employee entitled to payment for unused sick leave pursuant to

2-42 subsection 1 may elect to receive the payment in any one or more of the

2-43 following forms:

3-1 (a) A lump-sum payment.

3-2 (b) An advanced payment of the premiums or contributions for

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

3-4 287 of NRS. If the insurance coverage is terminated and the money

3-5 advanced for premiums or contributions pursuant to this subsection

3-6 exceeds the amount which is payable for premiums or contributions for the

3-7 period for which the former employee was actually covered, the unused

3-8 portion of the advanced payment must be paid promptly to the former

3-9 employee or, if he is deceased, to his beneficiary.

3-10 (c) The purchase of additional retirement credit, if he is otherwise

3-11 eligible pursuant to chapter 286 of NRS.

3-12 3. Officers and members of the faculty of the University and

3-13 Community College System of Nevada are entitled to sick and disability

3-14 leave as provided by the regulations adopted pursuant to subsection 2 of

3-15 NRS 284.345.

3-16 4. The department may by regulation provide policies concerning

3-17 employees with mental or emotional disorders which:

3-18 (a) Utilize a liberal approach to the granting of sick leave or leave

3-19 without pay when it is necessary for them to be absent for treatment or

3-20 temporary hospitalization.

3-21 (b) Provide for the retention of their jobs for reasonable periods of

3-22 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 and

3-25 health benefits.

3-26 5. The director shall establish by regulation a schedule for the accrual

3-27 of sick leave for employees who regularly work more than 40 hours per

3-28 week or 80 hours biweekly. The schedule must provide for the accrual of

3-29 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 believes

3-32 that an employee has taken sick or disability leave to which he was not

3-33 entitled. If, after notice to the employee and a hearing, the commission

3-34 determines that he has in fact taken sick or disability leave to which he was

3-35 not entitled, the commission may order the forfeiture of all or part of his

3-36 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 serves

3-39 at the pleasure of the board. The executive officer shall select an operations

3-40 officer, investment officer, manager of information systems, administrative

3-41 assistant and administrative analyst whose appointments are effective upon

3-42 confirmation by the board. The operations officer, investment officer,

4-1 manager of information systems, administrative assistant and administrative

4-2 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 administrative

4-5 analyst are entitled to annual salaries fixed by the board with the approval

4-6 of the interim retirement and benefits committee of the legislature [.]

4-7 created pursuant to section 36.5 of this act. The salaries of these

4-8 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 in

4-11 business administration or public administration or equivalent degree.

4-12 (b) Possess at least 5 years’ experience in a high level administrative or

4-13 executive capacity, including responsibility for a variety of administrative

4-14 functions such as retirement, insurance, investment or fiscal operations.

4-15 4. The operations officer and the investment officer must each be a

4-16 graduate of a 4-year college or university with a degree in business

4-17 administration or public administration or an equivalent degree.

4-18 5. Except as otherwise provided in NRS 284.143, the executive officer

4-19 shall not pursue any other business or occupation or perform the duties of

4-20 any other office of profit during normal office hours unless on leave

4-21 approved in advance. The executive officer shall not participate in any

4-22 business enterprise or investment in real or personal property if the system

4-23 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:

4-25 286.211 1. The board shall, with the advice of the interim retirement

4-26 and benefits committee [:] of the legislature created pursuant to section

4-27 36.5 of this act:

4-28 (a) Adopt regulations for the evaluation of requests for enrollment under

4-29 the police and firemen’s retirement fund; and

4-30 (b) Determine those positions eligible under the early retirement

4-31 provisions for police officers and firemen.

4-32 2. Service in any position which has not been determined by the board

4-33 to be eligible does not entitle a member to early retirement as a fireman or

4-34 police officer.

4-35 Sec. 3. NRS 286.615 is hereby amended to read as follows:

4-36 286.615 1. In addition to the options provided in NRS 287.023 and

4-37 subject to the requirements of that section, any officer or employee of the

4-38 governing body of any county, school district, municipal corporation,

4-39 political subdivision, public corporation or other public agency of the State

4-40 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 by

4-42 any group insurance or medical and hospital service established pursuant to

4-43 NRS 287.010 and 287.020, has the option of having the executive officer

5-1 deduct and pay his premium or contribution for that group insurance or

5-2 medical and hospital service coverage, as well as the amount due or to

5-3 become due upon any obligation designated by the board pursuant to

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

5-5 (a) He notifies the executive officer to discontinue the deduction; or

5-6 (b) Any of his dependents elect to assume the premium or contribution

5-7 applicable to the dependent’s coverage before the death of such a retired

5-8 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 of

5-10 subsection 1, including , but not limited to , regulations governing the

5-11 number and types of obligations, amounts for the payment of which may be

5-12 deducted and paid by the board at the option of the officer or employee

5-13 pursuant to this section.

5-14 3. The executive officer, board and system are not liable for any

5-15 damages resulting from errors or omissions concerning the deductions and

5-16 payment of premiums or contributions authorized pursuant to this section

5-17 unless willful neglect or gross negligence is proven.

5-18 Sec. 4. Chapter 287 of NRS is hereby amended by adding thereto the

5-19 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 5

5-21 to 12.5, inclusive, of this act, unless the context otherwise requires, the

5-22 words and terms defined in sections 6 and 7 of this act have the

5-23 meanings ascribed to them in those sections.

5-24 Sec. 6. "Board" means the board of the public employees’ benefits

5-25 program created by NRS 287.041.

5-26 Sec. 7. "Program" means the public employees’ benefits program

5-27 established pursuant to subsection 1 of NRS 287.043.

5-28 Sec. 8. 1. A majority of the members of the board constitutes a

5-29 quorum for the transaction of business.

5-30 2. The governor shall designate one of the members of the board to

5-31 serve as the chairman.

5-32 3. The board shall meet at least once every calendar quarter and at

5-33 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 to

5-37 be released by the board for competitive bidding; or

5-38 (c) As otherwise provided pursuant to chapter 241 of NRS.

5-39 5. As used in this section, "request for a proposal" has the meaning

5-40 ascribed to it in subsection 6 of NRS 333.020.

6-1 Sec. 9. The board may reimburse a witness whom the board requests

6-2 appear before it and who has expertise in a field that is relevant to the

6-3 program for any expenses relating to the testimony of the witness that the

6-4 board deems reasonable.

6-5 Sec. 10. 1. The board shall employ an executive officer who is in

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

6-7 board. The board may delegate to the executive officer the exercise or

6-8 discharge of any power, duty or function vested in or imposed upon the

6-9 board.

6-10 2. The executive officer must:

6-11 (a) Be a graduate of a 4-year college or university with a degree in

6-12 business administration or public administration or an equivalent degree,

6-13 as determined by the board; and

6-14 (b) Possess at least 5 years’ experience in a high-level administrative

6-15 or executive capacity in the field of insurance, management of

6-16 employees’ benefits or risk management, including, without limitation,

6-17 responsibility for a variety of administrative functions such as personnel,

6-18 accounting, data processing or the structuring of insurance programs.

6-19 3. Except as otherwise provided in NRS 284.143, the executive

6-20 officer shall not pursue any other business or occupation or perform the

6-21 duties of any other office of profit during normal office hours unless on

6-22 leave approved in advance. The executive officer shall not participate in

6-23 any business enterprise or investment with any vendor or provider to the

6-24 program.

6-25 4. The executive officer is entitled to an annual salary fixed by the

6-26 board with the approval of the interim retirement and benefits committee

6-27 of the legislature created pursuant to section 36.5 of this act. The salary

6-28 of the executive officer is exempt from the limitations set forth in NRS

6-29 281.123.

6-30 Sec. 11. 1. Each member of the board and the executive officer

6-31 shall complete at least 16 hours of continuing education relating to the

6-32 administration of group benefits for public employees each year.

6-33 2. While attending courses of continuing education, a member of the

6-34 board who is a public employee and the executive officer must be granted

6-35 administrative leave with pay and are entitled to receive the travel

6-36 expenses provided for state officers and employees generally.

6-37 3. While attending courses of continuing education, a member of the

6-38 board who is not a public employee is entitled to receive the per diem

6-39 allowance and travel expenses provided for state officers and employees

6-40 generally.

6-41 Sec. 11.5. 1. A participating state employee whose position is only

6-42 authorized for 4 to 6 months every other year and who plans to return to

6-43 the same or a similar position for the next period during which such a

7-1 position is authorized may retain his membership in and his dependents’

7-2 coverage by the program after his employment ceases for:

7-3 (a) Six full calendar months in addition to the period of extended

7-4 coverage required by federal law following the termination of

7-5 employment; or

7-6 (b) Twenty-four full calendar months, if no period of extended

7-7 coverage is required by federal law.

7-8 2. An employee who elects to continue his participation in the

7-9 program pursuant to subsection 1 shall pay the entire premium or

7-10 contribution plus allowable administrative fees for his insurance until the

7-11 date on which he is reemployed.

7-12 3. Failure to return to the same or a similar position for any reason,

7-13 whether the decision was made by the former employee or the state, does

7-14 not affect the application of this section.

7-15 Sec. 12. (Deleted by amendment.)

7-16 Sec. 12.5. 1. If approved by the board pursuant to this section, a

7-17 group of not less than 300 officers, employees or retired employees, or

7-18 any combination thereof, that participate in the program may leave the

7-19 program and secure life, accident or health insurance, or any

7-20 combination thereof, for the group from an:

7-21 (a) Insurer that is authorized by the commissioner of insurance to

7-22 provide such insurance; or

7-23 (b) Employee benefit plan, as defined in 29 U.S.C. § 1002(3) that has

7-24 been approved by the board. The board may approve an employee benefit

7-25 plan unless the board finds that the plan is not operated pursuant to such

7-26 sound accounting and financial management practices as to ensure that

7-27 the group will continue to receive adequate benefits.

7-28 2. Before entering into a contract with the insurer or approved

7-29 employee benefit plan, the group shall submit the proposed contract to

7-30 the board for approval. The board may approve the contract unless the

7-31 departure of the group from the program would cause an increase of

7-32 more than 5 percent in the costs of premiums or contributions for the

7-33 remaining participants in the program. In determining whether to

7-34 approve a proposed contract, the board shall follow the criteria set forth

7-35 in the regulations adopted by the board pursuant to subsection 4 and may

7-36 consider the cumulative impact of groups that have left or are proposing

7-37 to leave the program. Except as otherwise provided in this section, the

7-38 board has discretion in determining whether to approve a contract. If the

7-39 board approves a proposed contract pursuant to this subsection, the

7-40 group that submitted the proposed contract is not authorized to leave the

7-41 program until 120 days after the date on which the board approves the

7-42 proposed contract.

8-1 3. The board shall disburse periodically to the insurer or employee

8-2 benefit plan with which a group contracts pursuant to this section the

8-3 total amount set forth in the contract for premiums or contributions for

8-4 the members of the group for that period but not to exceed the amount

8-5 appropriated to or authorized for the department, agency, commission or

8-6 public agency that employs the members of the group for premiums or

8-7 contributions for the members of the group for that period, after

8-8 deducting any administrative costs related to the group.

8-9 4. The board shall adopt regulations establishing the criteria

8-10 pursuant to which the board will approve proposed contracts pursuant to

8-11 subsection 2.

8-12 Sec. 13. NRS 287.023 is hereby amended to read as follows:

8-13 287.023 1. Whenever an officer or employee of the governing body

8-14 of any county, school district, municipal corporation, political subdivision,

8-15 public corporation or other public agency of the State of Nevada retires

8-16 under the conditions set forth in NRS 286.510 or 286.620 and, at the time

8-17 of his retirement, was covered or had his dependents covered by any group

8-18 insurance or medical and hospital service established pursuant to NRS

8-19 287.010 and 287.020, the officer or employee has the option upon

8-20 retirement to cancel or continue any such group insurance or [~~join the~~

8-21 ~~state’s program of group insurance or]~~ medical and hospital service

8-22 coverage or join the public employees’ benefits program to the extent that

8-23 such coverage is not provided to him or a dependent by the Health

8-24 Insurance for the Aged Act , [(] 42 U.S.C. §§ 1395 et seq. [~~).]~~

8-25 2. A retired person who continues coverage under the [~~state’s program~~

8-26 ~~of group insurance]~~ public employees’ benefits program shall assume the

8-27 portion of the premium or membership costs for the coverage continued

8-28 which the governing body does not pay on behalf of retired officers or

8-29 employees. A person who joins the [~~state’s]~~ public employees’ benefits

8-30 program for the first time upon retirement shall assume all costs for the

8-31 coverage. A dependent of such a retired person has the option, which may

8-32 be exercised to the same extent and in the same manner as the retired

8-33 person, to cancel or continue coverage in effect on the date the retired

8-34 person dies. The dependent is not required to continue to receive retirement

8-35 payments from the public employees’ retirement system [~~in order]~~ to

8-36 continue coverage.

8-37 3. Except as otherwise provided in NRS 287.0235, notice of the

8-38 selection of the option must be given in writing to the last public employer

8-39 of the officer or employee within 30 days after the date of retirement or

8-40 death, as the case may be. If no notice is given by that date, the retired

8-41 employee and his dependents shall be deemed to have selected the option

8-42 to cancel the coverage or not to join the [~~state’s]~~ public employees’

8-43 benefits program, as the case may be.

9-1 4. The governing body of any county, school district, municipal

9-2 corporation, political subdivision, public corporation or other public

9-3 agency of this state may pay the cost, or any part of the cost, of group

9-4 insurance and medical and hospital service coverage for persons eligible

9-5 for that coverage [~~under]~~ pursuant to subsection 1, but it must not pay a

9-6 greater portion than it does for its current officers and employees.

9-7 Sec. 14. NRS 287.0235 is hereby amended to read as follows:

9-8 287.0235 1. Notwithstanding the provisions of NRS 287.023 and

9-9 287.045, a person or the surviving spouse of a person who did not, at the

9-10 time of his retirement pursuant to the conditions set forth in NRS 286.510

9-11 or 286.620, have the option to participate in the [~~state’s program of group~~

9-12 ~~insurance]~~ public employees’ benefits program may join the [~~state’s~~

9-13 ~~program of group insurance,]~~ public employees’ benefits program, to the

9-14 extent that such coverage is not provided to him or a dependent by the

9-15 Health Insurance for the Aged Act , [(] 42 U.S.C. §§ 1395 et seq. , [~~),]~~ by:

9-16 (a) Providing the public employees’ retirement board with written notice

9-17 of his intention to enroll in the [~~state’s]~~ public employees’ benefits

9-18 program during a period of open enrollment;

9-19 (b) Showing evidence of his good health as a condition of enrollment;

9-20 (c) Accepting the [~~state program’s]~~ current plan of insurance of the

9-21 public employees’ benefits program and any subsequent changes to the

9-22 plan; and

9-23 (d) Paying any portion of the [~~policy’s]~~ premiums or contributions for

9-24 the program in the manner set forth in NRS 286.615, which are due [~~from]~~

9-25 after the date of enrollment.

9-26 The public employees’ retirement board shall, beginning on September 1,

9-27 1997, have a biennial period of open enrollment between September 1 of

9-28 each odd-numbered year and January 31 of each even-numbered year

9-29 during which eligible retired persons may join the [~~state’s program of group~~

9-30 ~~insurance]~~ public employees’ benefits program pursuant to this section.

9-31 2. The public employees’ retirement board shall, on or before

9-32 September 1, 1997, and every September 1 of each odd-numbered year

9-33 thereafter, notify eligible retired persons described in subsection 1 of the

9-34 period of open enrollment by:

9-35 (a) Mailing a notice regarding the period of open enrollment to all

9-36 retired persons who are, according to its records, eligible to join the [~~state’s~~

9-37 ~~program of group insurance;]~~ public employees’ benefits program;

9-38 (b) Posting a notice of the period of open enrollment at its principal

9-39 office and at least three other separate prominent places, such as a library,

9-40 community center or courthouse; and

9-41 (c) Publicizing the period of open enrollment in any other manner

9-42 reasonably calculated to inform additional eligible retired persons.

10-1 3. The public employees’ retirement board shall notify the [~~committee~~

10-2 ~~on benefits]~~ board of the public employees’ benefits program of the

10-3 enrollment of any person on or before March 1 immediately following the

10-4 period of open enrollment. The [~~committee on benefits]~~ board of the public

10-5 employees’ benefits program shall approve or disapprove the request for

10-6 enrollment within 90 days after receipt of the request. Enrollment shall be

10-7 deemed to occur on the day the request is approved.

10-8 4. Enrollment in the [~~state’s program of group insurance]~~ public

10-9 employees’ benefits program pursuant to this section excludes claims for

10-10 expenses for any condition for which medical advice, treatment or

10-11 consultation was rendered within 12 months before enrollment unless:

10-12 (a) The person has not received any medical advice, treatment or

10-13 consultation for a period of 6 consecutive months after enrollment; or

10-14 (b) The insurance coverage has been in effect more than 12 consecutive

10-15 months.

10-16 Sec. 15. NRS 287.025 is hereby amended to read as follows:

10-17 287.025 The governing body of any county, school district, municipal

10-18 corporation, political subdivision, public corporation or other public

10-19 agency of the State of Nevada may, in addition to the other powers granted

10-20 in NRS 287.010 and 287.020:

10-21 1. Negotiate and contract with any other such agency or with the

10-22 [~~committee on benefits for the state’s group insurance plan]~~ board of the

10-23 public employees’ benefits program to secure group insurance for its

10-24 officers and employees and their dependents by participation in any group

10-25 insurance plan established or to be established or in the [~~state’s group~~

10-26 ~~insurance plan;]~~ public employees’ benefits program; and

10-27 2. To secure group health , [~~or]~~ life or workers’ compensation

10-28 insurance for its officers and employees and their dependents, participate as

10-29 a member of a nonprofit cooperative association or nonprofit corporation

10-30 that has been established in this state to secure such insurance for its

10-31 members from an insurer licensed pursuant to the provisions of Title 57 of

10-32 NRS.

10-33 3. In addition to the provisions of subsection 2, participate as a

10-34 member of a nonprofit cooperative association or nonprofit corporation that

10-35 has been established in this state to:

10-36 (a) Facilitate contractual arrangements for the provision of medical

10-37 services to its members’ officers and employees and their dependents and

10-38 for related administrative services.

10-39 (b) Procure health-related information and disseminate that information

10-40 to its members’ officers and employees and their dependents.

10-41 Sec. 16. NRS 287.030 is hereby amended to read as follows:

10-42 287.030 No provisions of law prohibiting, restricting or limiting the

10-43 assignment of or order for wages or salary shall be deemed in any way to

11-1 prohibit, restrict or limit the powers enumerated in NRS 287.010 and

11-2 287.020, nor the right and power of officers or employees to authorize and

11-3 approve payment of premiums or contributions by wage and salary

11-4 deductions.

11-5 Sec. 17. NRS 287.040 is hereby amended to read as follows:

11-6 287.040 The provisions of NRS 287.010 to 287.040, inclusive, and

11-7 section 2 of Senate Bill No. 404 of this [~~act,]~~ session, do not make it

11-8 compulsory upon any governing body of any county, school district,

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

11-10 public agency of the State of Nevada to, except as otherwise provided in

11-11 section 2 of Senate Bill No. 404 of this [~~act,]~~ session, make any

11-12 contributions for the payment of any premiums or other costs for group

11-13 insurance or medical or hospital services, or upon any officer or employee

11-14 of any county, school district, municipal corporation, political subdivision,

11-15 public corporation or other public agency of this state to accept or join any

11-16 plan of group insurance or to assign his wages or salary or to authorize

11-17 deductions from his wages or salary in payment of premiums or

11-18 contributions therefor.

11-19 Sec. 18. NRS 287.041 is hereby amended to read as follows:

11-20 287.041 1. There is hereby created the [~~committee on benefits to be~~

11-21 ~~composed of five]~~ board of the public employees’ benefits program. The

11-22 board consists of nine members appointed as follows:

11-23 [~~1. Two members must be selected by the board of directors of the~~

11-24 ~~State of Nevada Employees Association.~~

11-25 ~~2. One member must be the director of the department of~~

11-26 ~~administration.~~

11-27 ~~3. Two members, one of whom must be an employee retired from state~~

11-28 ~~service, must be appointed by the governor.]~~

11-29 (a) One member who is a professional employee of the University and

11-30 Community College System of Nevada, appointed by the governor upon

11-31 consideration of any recommendations of organizations that represent

11-32 employees of the University and Community College System of Nevada.

11-33 (b) One member who is retired from public employment, appointed by

11-34 the governor upon consideration of any recommendations of

11-35 organizations that represent retired public employees.

11-36 (c) Two members who are employees of the state, appointed by the

11-37 governor upon consideration of any recommendations of organizations

11-38 that represent state employees.

11-39 (d) One member appointed by the governor upon consideration of any

11-40 recommendations of organizations that represent employees of local

11-41 governments that participate in the program.

11-42 (e) One member who is employed by this state in a managerial

11-43 capacity and has substantial and demonstrated experience in risk

12-1 management, portfolio investment strategies or employee benefits

12-2 programs appointed by the governor. The governor may appoint the

12-3 executive officer of the public employees’ retirement system to fill this

12-4 position.

12-5 (f) Two members who have substantial and demonstrated experience

12-6 in risk management, portfolio investment strategies or employee benefits

12-7 programs appointed by the governor.

12-8 (g) The director of the department of administration or his designee.

12-9 2. Of the six persons appointed to the board pursuant to paragraphs

12-10 (a) to (e), inclusive, of subsection 1, at least one member must have an

12-11 advanced degree in business administration, economics, accounting,

12-12 insurance, risk management or health care administration, and at least

12-13 two members must have education or proven experience in the

12-14 management of employees’ benefits, insurance, risk management, health

12-15 care administration or business administration.

12-16 3. Each person appointed as a member of the board must:

12-17 (a) Except for a member appointed pursuant to paragraph (f) of

12-18 subsection 1, have been a participant in the program for at least 1 year

12-19 before his appointment;

12-20 (b) Except for a member appointed pursuant to paragraph (f) of

12-21 subsection 1, be a current employee of the State of Nevada or another

12-22 public employer that participates in the program or a retired public

12-23 employee who is a participant in the program; and

12-24 (c) Not be an elected officer of the State of Nevada or any of its

12-25 political subdivisions.

12-26 4. Except as otherwise provided in this subsection, after the initial

12-27 terms, the term of an appointed member of the board is 4 years and until

12-28 his successor is appointed and takes office unless the member no longer

12-29 possesses the qualifications for appointment set forth in this section or is

12-30 removed by the governor. If a member loses the requisite qualifications

12-31 within the last 12 months of his term, the member may serve the

12-32 remainder of his term. Members are eligible for reappointment. A

12-33 vacancy occurring in the membership of the board must be filled in the

12-34 same manner as the original appointment.

12-35 5. The appointed members of the board serve at the pleasure of the

12-36 governor. If the governor wishes to remove a member from the board for

12-37 any reason other than malfeasance or misdemeanor, the governor shall

12-38 provide the member with written notice which states the reason for and

12-39 the effective date of the removal.

12-40 Sec. 19. NRS 287.042 is hereby amended to read as follows:

12-41 287.042 1. [~~A majority of the members of the committee on benefits~~

12-42 ~~constitutes a quorum for the transaction of business.~~

13-1 ~~2.]~~ No member who is a public employee may receive any

13-2 compensation for his services as a member of the [~~committee.]~~ board. Any

13-3 member who is [~~employed in the service of the state]~~ a public employee

13-4 must be granted administrative leave from his duties to engage in the

13-5 business of the [~~committee]~~ board without loss of his regular

13-6 compensation. Such leave does not reduce the amount of the member’s

13-7 [~~annual leave.~~

13-8 ~~3.]~~ other accrued leave.

13-9 2. A member of the [~~committee]~~ board who is not a public employee is

13-10 entitled to receive $80 per day for his attendance at meetings of the

13-11 [~~committee.]~~ board.

13-12 Sec. 20. NRS 287.043 is hereby amended to read as follows:

13-13 287.043 [~~The committee on benefits shall:~~

13-14 ~~1. Act as an advisory body on matters]~~

13-15 1. The board shall:

13-16 (a) Establish and carry out a program to be known as the public

13-17 employees’ benefits program which:

13-18 (1) Must include a program relating to group life, accident or health

13-19 insurance, or any combination of these [,] ; and

13-20 (2) May include a program to reduce taxable compensation or other

13-21 forms of compensation other than deferred compensation,

13-22 for the benefit of all state officers and employees and other persons who

13-23 participate in the [~~state’s program of group insurance.~~

13-24 ~~2.]~~ program.

13-25 (b) Ensure that the program is funded on an actuarially sound basis

13-26 and operated in accordance with sound insurance and business practices.

13-27 2. In establishing and carrying out the program, the board shall:

13-28 (a) Except as otherwise provided in this [~~subsection,]~~ paragraph,

13-29 negotiate and contract with the governing body of any public agency

13-30 enumerated in NRS 287.010 which is desirous of obtaining group insurance

13-31 for its officers, employees and retired employees by participation in the

13-32 [~~state’s program of group insurance. The committee]~~ program. The board

13-33 shall establish separate rates and coverage for those officers, employees

13-34 and retired employees based on actuarial reports.

13-35 [~~3.]~~ (b) Give public notice in writing of proposed changes in rates or

13-36 coverage to each participating public employer who may be affected by the

13-37 changes. Notice must be provided at least 30 days before the effective date

13-38 of the changes.

13-39 [~~4.]~~ (c) Purchase policies of life, accident or health insurance, or any

13-40 combination of these, or , if applicable, a program to reduce the amount of

13-41 taxable compensation pursuant to 26 U.S.C. § 125, from any company

13-42 qualified to do business in this state or provide similar coverage through a

13-43 plan of self-insurance established pursuant to NRS 287.0433 for the

14-1 benefit of all eligible public officers, employees and retired employees who

14-2 participate in the [~~state’s program.~~

14-3 ~~5. Consult the state risk manager and obtain his advice in the~~

14-4 ~~performance of the duties set forth in this section.~~

14-5 ~~6.]~~ program.

14-6 (d) Except as otherwise provided in this Title, develop and establish

14-7 other employee benefits as necessary.

14-8 [~~7.]~~ (e) Investigate and approve or disapprove any contract proposed

14-9 pursuant to section 12.5 of this act.

14-10 (f) Adopt such regulations and perform such other duties as are

14-11 necessary to carry out the provisions of NRS 287.041 to 287.049, inclusive,

14-12 and sections 2 and 3 of Senate Bill No. 404 of this [~~act,]~~ session, and

14-13 sections 5 to 12.5, inclusive, of this act, including , without limitation, the

14-14 establishment of:

14-15 [~~(a)]~~ (1) Fees for applications for participation in the [~~state’s]~~ program

14-16 and for the late payment of premiums [;

14-17 ~~(b)]~~ or contributions;

14-18 (2) Conditions for entry and reentry into the [~~state’s]~~ program by

14-19 public agencies enumerated in NRS 287.010; [~~and~~

14-20 ~~(c)]~~ (3) The levels of participation in the [~~state’s]~~ program required for

14-21 employees of participating public agencies [.

14-22 ~~8.]~~ ;

14-23 (4) Procedures by which a group of participants in the program

14-24 may leave the program pursuant to section 12.5 of this act and conditions

14-25 and procedures for reentry into the program by such participants; and

14-26 (5) Specific procedures for the determination of contested claims.

14-27 (g) Appoint an independent certified public accountant. The accountant

14-28 shall provide [~~an]~~ :

14-29 (1) An annual audit of the [~~plan and]~~ program; and

14-30 (2) A biennial audit of the program to determine whether the

14-31 program complies with federal and state laws relating to taxes and

14-32 employee benefits.

14-33 The accountant shall report to the [~~committee]~~ board and the [~~legislative~~

14-34 ~~commission. For the purposes of]~~ interim retirement and benefits

14-35 committee of the legislature created pursuant to section 36.5 of this act.

14-36 3. The board may use any services provided to state agencies and

14-37 shall use the services of the purchasing division of the department of

14-38 administration to establish and carry out the program.

14-39 4. The board may make recommendations to the legislature

14-40 concerning legislation that it deems necessary and appropriate regarding

14-41 the program.

14-42 5. The state and any other public employers that participate in the

14-43 program are not liable for any obligation of the program other than

15-1 indemnification of the board and its employees against liability relating

15-2 to the administration of the program, subject to the limitations specified

15-3 in NRS 41.0349.

15-4 6. As used in this section, "employee benefits" includes any form of

15-5 compensation provided to a state employee pursuant to this Title except

15-6 federal benefits, wages earned, legal holidays, deferred compensation and

15-7 benefits available pursuant to chapter 286 of NRS.

15-8 Sec. 21. NRS 287.0433 is hereby amended to read as follows:

15-9 287.0433 The [~~committee on benefits]~~ board may establish a plan of

15-10 life, accident or health insurance and provide for the payment of

15-11 contributions into the [~~self-insurance fund,]~~ fund for the public employees’

15-12 benefits program established pursuant to NRS 287.0435, a schedule of

15-13 benefits and the disbursement of benefits from the fund. The [~~committee]~~

15-14 board may reinsure any risk or any part of such a risk. [~~Payments into and~~

15-15 ~~disbursements from the fund must be so arranged as to keep the fund~~

15-16 ~~solvent.]~~

15-17 Sec. 22. NRS 287.0434 is hereby amended to read as follows:

15-18 287.0434 The [~~committee on benefits]~~ board may:

15-19 1. Use its assets to pay the expenses of health care for its members and

15-20 covered dependents, to pay its employees’ salaries and to pay

15-21 administrative and other expenses.

15-22 2. Enter into contracts relating to the administration of [~~a plan of~~

15-23 ~~insurance,]~~ the program, including , without limitation, contracts with

15-24 licensed administrators and qualified actuaries.

15-25 3. Enter into contracts with physicians, surgeons, hospitals, health

15-26 maintenance organizations and rehabilitative facilities for medical, surgical

15-27 and rehabilitative care and the evaluation, treatment and nursing care of

15-28 members and covered dependents.

15-29 4. Enter into contracts for the services of other experts and specialists

15-30 as required by [~~a plan of insurance.]~~ the program.

15-31 5. Charge and collect from an insurer, health maintenance organization,

15-32 organization for dental care or nonprofit medical service corporation, a fee

15-33 for the actual expenses incurred by the [~~committee,]~~ board, the state or a

15-34 participating public employer in administering a plan of insurance offered

15-35 by that insurer, organization or corporation.

15-36 Sec. 23. NRS 287.0435 is hereby amended to read as follows:

15-37 287.0435 1. [~~If any plan of self-insurance is adopted by the~~

15-38 ~~committee on benefits, there is created a self-insurance fund as a trust fund~~

15-39 ~~for the purpose of receiving contributions. The self-insurance]~~ All money

15-40 received for the program, including, without limitation, premiums and

15-41 contributions, must be deposited in the state treasury for credit to the

15-42 fund for the public employees’ benefits program which is hereby created

15-43 as a trust fund. The fund must be accounted for as an internal service fund.

16-1 Payments into and disbursements from the fund must be so arranged as

16-2 to keep the fund solvent at all times.

16-3 2. The money in the fund must be invested as other money of the state

16-4 is invested and any income from investments paid into the fund for the

16-5 benefit of the fund.

16-6 3. Disbursements from the fund must be made as any other claims

16-7 against the state are paid.

16-8 4. The state treasurer may charge a reasonable fee for his services in

16-9 administering the fund, but the state, the state general fund and the state

16-10 treasurer are not liable to the fund for any loss sustained by the fund as a

16-11 result of any investment made on behalf of the fund or any loss sustained in

16-12 the operation of the [~~plan of self-insurance. The state is liable for~~

16-13 ~~indemnification of the committee on benefits, the state risk manager and~~

16-14 ~~other employees of the state against liability relating to the administration~~

16-15 ~~of the state’s program of group insurance, subject to the limitations~~

16-16 ~~specified in NRS 41.0349.]~~ program.

16-17 Sec. 24. NRS 287.0437 is hereby amended to read as follows:

16-18 287.0437 [~~The committee on benefits may employ professional,~~

16-19 ~~technical and clerical personnel as necessary to assist it in the operation of~~

16-20 ~~the plan of self-insurance. Their salaries and other costs must be paid out of~~

16-21 ~~the self-insurance fund. The committee shall prepare a budget for these~~

16-22 ~~costs in the manner prescribed for state agencies.]~~

16-23 1. The executive officer may appoint a quality control officer,

16-24 operations officer, accounting officer, information technology systems

16-25 officer and executive assistant who are in the unclassified service of the

16-26 state and serve at the pleasure of the executive officer. The appointment

16-27 and dismissal of the quality control officer are subject to the approval of

16-28 the board.

16-29 2. The quality control officer, operations officer, accounting officer

16-30 and information technology systems officer must each be a graduate of a

16-31 4-year college or university with a degree that is appropriate to their

16-32 respective responsibilities or possess equivalent experience as determined

16-33 by the board.

16-34 3. The quality control officer, operations officer, accounting officer,

16-35 information technology systems officer and executive assistant are

16-36 entitled to annual salaries fixed by the board with the approval of the

16-37 interim retirement and benefits committee of the legislature created

16-38 pursuant to section 36.5 of this act. The salaries of these employees are

16-39 exempt from the limitations set forth in NRS 281.123.

16-40 4. The executive officer may employ such staff in the classified

16-41 service of the state as are necessary for the performance of his duties,

16-42 within limits of legislative appropriations or other available money.

17-1 Sec. 25. NRS 287.0438 is hereby amended to read as follows:

17-2 287.0438 Except for the files of individual members and former

17-3 members, the correspondence, files, minutes and books of the [~~plan]~~

17-4 program are public records.

17-5 Sec. 26. NRS 287.0439 is hereby amended to read as follows:

17-6 287.0439 1. A participating public employer shall, on request,

17-7 furnish to the [~~committee on benefits]~~ board any information necessary to

17-8 carry out the provisions of this chapter. Members of the [~~committee]~~ board

17-9 and its employees or agents may examine under oath any officer, agent or

17-10 employee of a participating public employer concerning the information.

17-11 2. The books, records and payrolls of a participating public employer

17-12 must be available for inspection by members of the [~~committee]~~ board and

17-13 its employees and agents to obtain any information necessary for the

17-14 administration of the [~~plan,]~~ program, including , without limitation, the

17-15 accuracy of the payroll and identity of employees.

17-16 Sec. 27. NRS 287.044 is hereby amended to read as follows:

17-17 287.044 1. A part of the cost of the premiums or contributions for

17-18 that group insurance, not to exceed the amount specified by law, applied to

17-19 both group life and group accident or health coverage, for each public

17-20 officer, except a senator or assemblyman, or employee electing to

17-21 participate in the [~~group insurance]~~ program, may be paid by the

17-22 department, agency, commission or public agency which employs the

17-23 officer or employee in whose behalf that part is paid from money

17-24 appropriated to or authorized for that department, agency, commission or

17-25 public agency for that purpose. Participation by the state in the cost of

17-26 premiums or contributions must not exceed the amounts specified by law. If

17-27 an officer or employee chooses to cover his dependents, whenever this

17-28 option is made available by the [~~committee on benefits,]~~ board, except as

17-29 otherwise provided in sections 2 and 3 of Senate Bill No. 404 of this [~~act,]~~

17-30 session, he must pay the difference between the amount of the premium or

17-31 contribution for the coverage for himself and his dependents and the

17-32 amount paid by the state.

17-33 2. A department, agency, commission or public agency shall not pay

17-34 any part of those premiums or contributions if the group life insurance or

17-35 group accident or health insurance is not approved by the [~~committee on~~

17-36 ~~benefits.]~~ board.

17-37 Sec. 28. NRS 287.0445 is hereby amended to read as follows:

17-38 287.0445 The department, agency, commission or public agency which

17-39 employed an officer or employee who:

17-40 1. Was injured in the course of that employment;

17-41 2. Receives compensation for a temporary total disability pursuant to

17-42 NRS 616C.475; and

18-1 3. Was a member of the [~~state’s program of group insurance]~~ program

18-2 at the time of the injury,

18-3 shall pay the state’s share of the cost of the premiums [~~of the group~~

18-4 ~~insurance]~~ or contributions for the program for that officer or employee

18-5 for [~~a period of]~~ not more than 9 months after the injury or until the officer

18-6 or employee is able to return to work, whichever is less. If the previous

18-7 injury recurs within 1 month after the employee returns to work and the

18-8 employee again receives compensation pursuant to NRS 616C.475 as a

18-9 result of the previous injury, the department, agency, commission or public

18-10 agency shall not, except as otherwise provided in this subsection, pay the

18-11 state’s share of the cost of the premiums or contributions for the period

18-12 during which the employee is unable to work as a result of the recurring

18-13 previous injury. If the initial period of disability was less than 9 months, the

18-14 department, agency, commission or public agency shall pay, during the

18-15 recurrence, the state’s share of the costs of the premiums or contributions

18-16 for a period which, when added to the initial period, equals not more than 9

18-17 months.

18-18 Sec. 29. NRS 287.045 is hereby amended to read as follows:

18-19 287.045 1. Except as otherwise provided in this section, every officer

18-20 or employee of the state is eligible to participate in the program on the first

18-21 day of the month following the completion of 90 days of full-time

18-22 employment.

18-23 2. Professional employees of the University and Community College

18-24 System of Nevada who have annual employment contracts are eligible to

18-25 participate in the program on:

18-26 (a) The effective dates of their respective employment contracts, if those

18-27 dates are on the first day of a month; or

18-28 (b) The first day of the month following the effective dates of their

18-29 respective employment contracts, if those dates are not on the first day of a

18-30 month.

18-31 3. Every officer or employee who is employed by a participating public

18-32 agency on a permanent and full-time basis on the date the agency enters

18-33 into an agreement to participate in the [~~state’s group insurance]~~ program,

18-34 and every officer or employee who commences his employment after that

18-35 date is eligible to participate in the program on the first day of the month

18-36 following the completion of 90 days of full-time employment.

18-37 4. Every senator and assemblyman is eligible to participate in the

18-38 program on the first day of the month following the 90th day after his initial

18-39 term of office begins.

18-40 5. An officer or employee of the governing body of any county, school

18-41 district, municipal corporation, political subdivision, public corporation or

18-42 other public agency of the State of Nevada who retires under the conditions

18-43 set forth in NRS 286.510 or 286.620 and was not participating in the

19-1 [~~state’s group insurance]~~ program at the time of his retirement is eligible to

19-2 participate in the program 30 days after notice of the selection to participate

19-3 is given pursuant to NRS 287.023 or 287.0235. The [~~committee on~~

19-4 ~~benefits]~~ board shall make a separate accounting for these retired persons.

19-5 For the first year following enrollment, the rates charged must be the full

19-6 actuarial costs determined by the actuary based upon the expected claims

19-7 experience with these retired persons. The claims experience of these

19-8 retired persons must not be commingled with the retired persons who were

19-9 members of the [~~state’s]~~ program before their retirement, nor with active

19-10 employees of the state. After the first year following enrollment, the rates

19-11 charged must be the full actuarial costs determined by the actuary based

19-12 upon the past claims experience of these retired persons since enrolling.

19-13 6. Notwithstanding the provisions of subsections 1, 3 and 4, if the

19-14 [~~committee on benefits]~~ board does not, pursuant to NRS 689B.580, elect

19-15 to exclude the program from compliance with NRS 689B.340 to 689B.590,

19-16 inclusive, and if the coverage under the program is provided by a health

19-17 maintenance organization authorized to transact insurance in this state

19-18 pursuant to chapter 695C of NRS, any affiliation period imposed by the

19-19 program may not exceed the statutory limit for an affiliation period set forth

19-20 in NRS 689B.500.

19-21 Sec. 30. NRS 287.046 is hereby amended to read as follows:

19-22 287.046 1. Except as otherwise provided in subsection 6, any state or

19-23 other participating officer or employee who elects to participate in the

19-24 [~~state’s group insurance]~~ program may participate, and the department,

19-25 agency, commission or public agency that employs the officer or employee

19-26 shall pay the state’s share of the cost of the premiums or contributions for

19-27 the [~~group insurance]~~ program from money appropriated or authorized as

19-28 provided in NRS 287.044. Employees who elect to participate in the

19-29 [~~state’s group insurance]~~ program must authorize deductions from their

19-30 compensation for the payment of premiums or contributions [~~on the~~

19-31 ~~insurance.]~~ for the program.

19-32 2. The department of personnel shall pay a percentage of the base

19-33 amount provided by law for that fiscal year toward the cost of the premiums

19-34 or contributions for [~~group insurance]~~ the program for persons retired from

19-35 the service of the state who have continued to participate [.] in the

19-36 program. Except as otherwise provided in subsection 3, the percentage to

19-37 be paid must be calculated as follows:

19-38 (a) For those persons who retire before January 1, 1994, 100 percent of

19-39 the base amount provided by law for that fiscal year.

19-40 (b) For those persons who retire on or after January 1, 1994, with at

19-41 least 5 years of state service, 25 percent plus an additional 7.5 percent for

19-42 each year of service in excess of 5 years to a maximum of 137.5 percent,

20-1 excluding service purchased pursuant to NRS 286.300, of the base amount

20-2 provided by law for that fiscal year.

20-3 3. If the amount calculated pursuant to subsection 2 exceeds the actual

20-4 premium [~~of]~~ or contribution for the plan of the program that the retired

20-5 participant selects, the balance must be credited to the [~~self-insurance]~~ fund

20-6 for the public employees’ benefits program created pursuant to NRS

20-7 287.0435.

20-8 4. For the purposes of subsection 2:

20-9 (a) Credit for service must be calculated in the manner provided by

20-10 chapter 286 of NRS.

20-11 (b) No proration may be made for a partial year of service.

20-12 5. The department shall agree through the [~~committee on benefits]~~

20-13 board with the insurer for billing of remaining premiums or contributions

20-14 for the retired participant and his dependents to the retired participant and

20-15 to his dependents who elect to continue coverage under the [~~group~~

20-16 ~~insurance]~~ program after his death.

20-17 6. A senator or assemblyman who elects to participate in the [~~state’s~~

20-18 ~~group insurance]~~ program shall pay the entire premium or contribution for

20-19 his insurance.

20-20 Sec. 31. NRS 287.0465 is hereby amended to read as follows:

20-21 287.0465 1. If an officer or employee of the state or a dependent of

20-22 such an officer or employee incurs an illness or injury for which medical

20-23 services are payable under the plan for self-insurance [~~adopted]~~ established

20-24 by the [~~committee on benefits]~~ board and the illness or injury is incurred

20-25 under circumstances creating a legal liability in some person, other than the

20-26 officer, employee or dependent, to pay all or part of the cost of those

20-27 services, the [~~committee on benefits]~~ board is subrogated to the right of the

20-28 officer, employee or dependent to the extent of all such costs, and may join

20-29 or intervene in any action by the officer, employee or dependent or his

20-30 successors in interest, to enforce that legal liability.

20-31 2. If an officer, employee or dependent or his successors in interest fail

20-32 or refuse to commence an action to enforce that legal liability, the

20-33 [~~committee on benefits]~~ board may commence an independent action, after

20-34 notice to the officer, employee or dependent or his successors in interest, to

20-35 recover all costs to which it is entitled. In any such action by the

20-36 [~~committee on benefits,]~~ board, the officer, employee or dependent may be

20-37 joined as a third party defendant.

20-38 3. If the [~~committee on benefits]~~ board is subrogated to the rights of

20-39 the officer, employee or dependent or his successors in interest as provided

20-40 in subsection 1, the [~~committee on benefits]~~ board has a lien upon the total

20-41 proceeds of any recovery from the persons liable, whether the proceeds of

20-42 the recovery are by way of a judgment or settlement or otherwise. Within

20-43 15 days after recovery by receipt of the proceeds of the judgment,

21-1 settlement or other recovery, the officer, employee or dependent or his

21-2 successors in interest shall notify the [~~committee on benefits]~~ board of the

21-3 recovery and pay the [~~committee on benefits]~~ board the amount due to it

21-4 pursuant to this section. The officer, employee or dependent or his

21-5 successors in interest are not entitled to double recovery for the same

21-6 injury.

21-7 4. The officer, employee or dependent or his successors in interest

21-8 shall notify the [~~committee on benefits]~~ board in writing before entering

21-9 any settlement or agreement or commencing any action to enforce the legal

21-10 liability referred to in subsection 1.

21-11 Sec. 32. NRS 287.047 is hereby amended to read as follows:

21-12 287.047 If the retention is consistent with the terms of any agreement

21-13 between the state and the insurance company which issued the policies

21-14 pursuant to the program or with the plan of self-insurance [:] of the

21-15 program:

21-16 1. A participating state employee who retires on or after July 1, 1985,

21-17 may retain his membership in and his dependents’ coverage by the [~~state’s~~

21-18 ~~program of group insurance.]~~ program.

21-19 2. A participating legislator who retires from the service of the state or

21-20 who completes 8 years of service as such may retain his membership in and

21-21 his dependents’ coverage by the [~~state’s program of group insurance.~~]

21-22 program.

21-23 Sec. 33. NRS 287.0475 is hereby amended to read as follows:

21-24 287.0475 1. A public employee who has retired pursuant to NRS

21-25 286.510 or 286.620 or a retirement program provided pursuant to NRS

21-26 286.802, or the surviving spouse of such a retired public employee who is

21-27 deceased may, in any even-numbered year, reinstate any insurance, except

21-28 life insurance, which was provided to him and his dependents at the time of

21-29 his retirement [~~under NRS 287.010, 287.020 or 287.0433]~~ pursuant to

21-30 NRS 287.010 or 287.020 or the program as a public employee by:

21-31 (a) Giving written notice of his intent to reinstate the insurance to the

21-32 employee’s last public employer not later than January 31, of an even-

21-33 numbered year;

21-34 (b) Accepting the public employer’s current program or plan of

21-35 insurance and any subsequent changes thereto; and

21-36 (c) Paying any portion of the [~~policy’s premiums,]~~ premiums or

21-37 contributions of the public employer’s program or plan of insurance, in

21-38 the manner set forth in NRS 286.615, which are due from the date of

21-39 reinstatement and not paid by the public employer.

21-40 The last public employer shall give the insurer notice of the reinstatement

21-41 no later than March 31, of the year in which the public employee or

21-42 surviving spouse gives notice of his intent to reinstate the insurance. The

22-1 insurer shall approve or disapprove the request for reinstatement within 90

22-2 days after the date of the request.

22-3 2. Reinstatement of insurance excludes claims for expenses for any

22-4 condition for which medical advice, treatment or consultation was rendered

22-5 within [~~12]~~ 6 months before reinstatement unless:

22-6 (a) The person has not received any medical advice, treatment or

22-7 consultation for a period of 6 consecutive months after the reinstatement; or

22-8 (b) The reinstated insurance has been in effect more than 12 consecutive

22-9 months.

22-10 [~~3. The retired public employee, his dependents and the surviving~~

22-11 ~~spouse of a retired public employee who is deceased must show evidence~~

22-12 ~~of their good health as a condition of the reinstatement.]~~

22-13 Sec. 34. NRS 287.048 is hereby amended to read as follows:

22-14 287.048 NRS 287.041 to 287.047, inclusive, and sections 5 to 12.5,

22-15 inclusive, of this act, do not require any officer or employee of the State of

22-16 Nevada to accept or join the [~~state’s program of group insurance,]~~

22-17 program, or to assign his wages or salary to or authorize deductions from

22-18 his wages or salary in payment of premiums or contributions for [~~group~~

22-19 ~~insurance.]~~ the program.

22-20 Sec. 35. NRS 287.049 is hereby amended to read as follows:

22-21 287.049 The cost of premiums or contributions for [~~group insurance]~~

22-22 the program as provided in NRS 287.044 must be budgeted for as other

22-23 expenditures of the state are budgeted for.

22-24 Sec. 36. NRS 287.245 is hereby amended to read as follows:

22-25 287.245 1. The state may agree with any of its employees, and the

22-26 board of regents of the University of Nevada may agree with any of its

22-27 employees, to reduce the amount of taxable compensation due to an

22-28 employee in accordance with a program established pursuant to 26 U.S.C. §

22-29 125 by the [~~committee on benefits.]~~ board of the public employees’

22-30 benefits program.

22-31 2. Political subdivisions of this state may agree with any of their

22-32 employees to reduce the amount of taxable compensation due to an

22-33 employee in accordance with a program established pursuant to 26 U.S.C. §

22-34 125.

22-35 3. The employer shall deduct an amount from the taxable

22-36 compensation of an employee pursuant to the agreement between the

22-37 employer and the employee.

22-38 4. An employer shall not make any reduction in the taxable

22-39 compensation of an employee pursuant to this section until the program

22-40 established meets the requirements of 26 U.S.C. § 125 for eligibility.

22-41 5. The [~~committee on benefits]~~ board of the public employees’

22-42 benefits program may establish and administer a program pursuant to 26

22-43 U.S.C. § 125. The [~~committee]~~ board may:

23-1 (a) Create an appropriate fund for administration of money and other

23-2 assets resulting from the money deducted [~~under]~~ pursuant to the program.

23-3 (b) Delegate to one or more state agencies or institutions of the

23-4 University and Community College System of Nevada the responsibility for

23-5 administering the program for their respective employees, including [:] ,

23-6 without limitation:

23-7 (1) Collection of money deducted;

23-8 (2) Transmittal of money collected to depositories within the state

23-9 designated by the [~~committee;]~~ board; and

23-10 (3) Payment for eligible uses.

23-11 (c) Contract with a natural person, corporation, institution or other

23-12 entity, directly or through a state agency or institution of the University and

23-13 Community College System of Nevada, for services necessary to the

23-14 administration of the plan, including [:] , without limitation:

23-15 (1) Consolidated billing;

23-16 (2) The keeping of records for each participating employee and the

23-17 program;

23-18 (3) The control and safeguarding of assets;

23-19 (4) Programs for communication with employees; and

23-20 (5) The administration and coordination of the program.

23-21 6. Each employee who participates in a program established by the

23-22 [~~committee]~~ board of the public employees’ benefits program pursuant to

23-23 this section shall pay a proportionate share of the cost to administer the

23-24 program as determined by the [~~committee.]~~ board.

23-25 7. The provisions of this section do not supersede, make inoperative or

23-26 reduce the benefits provided by the public employees’ retirement system or

23-27 by any other retirement, pension or benefit program established by law.

23-28 Sec. 36.5. Chapter 218 of NRS is hereby amended by adding thereto a

23-29 new section to read as follows:

23-30 1. There is hereby created an interim retirement and benefits

23-31 committee of the legislature to review the operation of the public

23-32 employees’ retirement system and the public employees’ benefits

23-33 program and to make recommendations to the public employees’

23-34 retirement board and the board of the public employees’ benefits

23-35 program, the legislative commission and the legislature. The interim

23-36 retirement and benefits committee consists of six members appointed as

23-37 follows:

23-38 (a) Three members of the senate, one of whom is the chairman of the

23-39 committee on finance during the preceding session and two of whom are

23-40 appointed by the majority leader of the senate.

23-41 (b) Three members of the assembly, one of whom is the chairman of

23-42 the committee on ways and means and two of whom are appointed by the

23-43 speaker of the assembly.

24-1 2. The immediate past chairman of the senate standing committee on

24-2 finance is the chairman of the interim retirement and benefits committee

24-3 for the period ending with the convening of each odd-numbered session

24-4 of the legislature. The immediate past chairman of the assembly standing

24-5 committee on ways and means is the chairman of the interim retirement

24-6 and benefits committee during the next legislative interim, and the

24-7 chairmanship alternates between the houses of the legislature according

24-8 to this pattern.

24-9 3. The interim retirement and benefits committee may exercise the

24-10 powers conferred on it by law only when the legislature is not in regular

24-11 or special session and shall meet at the call of the chairman.

24-12 4. The director of the legislative counsel bureau shall provide a

24-13 secretary for the interim retirement and benefits committee.

24-14 5. The members of the interim retirement and benefits committee are

24-15 entitled to receive the compensation provided for a majority of the

24-16 members of the legislature during the first 60 days of the preceding

24-17 session, the per diem allowance provided for state officers and employees

24-18 generally and the travel expenses provided by NRS 218.2207 for each day

24-19 of attendance at a meeting of the committee and while engaged in the

24-20 business of the committee. Per diem allowances, compensation and travel

24-21 expenses of the members of the committee must be paid from the

24-22 legislative fund.

24-23 Sec. 37. NRS 233B.039 is hereby amended to read as follows:

24-24 233B.039 1. The following agencies are entirely exempted from the

24-25 requirements of this chapter:

24-26 (a) The governor.

24-27 (b) The department of prisons.

24-28 (c) The University and Community College System of Nevada.

24-29 (d) The office of the military.

24-30 (e) The state gaming control board.

24-31 (f) The Nevada gaming commission.

24-32 (g) The welfare division of the department of human resources.

24-33 (h) The division of health care financing and policy of the department of

24-34 human resources.

24-35 (i) The state board of examiners acting pursuant to chapter 217 of NRS.

24-36 (j) Except as otherwise provided in NRS 533.365, the office of the state

24-37 engineer.

24-38 2. Except as otherwise provided in NRS 391.323, the department of

24-39 education, the [~~committee on benefits]~~ board of the public employees’

24-40 benefits program and the commission on professional standards in

24-41 education are subject to the provisions of this chapter for the purpose of

24-42 adopting regulations but not with respect to any contested case.

24-43 3. The special provisions of:

25-1 (a) Chapter 612 of NRS for the distribution of regulations by and the

25-2 judicial review of decisions of the employment security division of the

25-3 department of employment, training and rehabilitation;

25-4 (b) Chapters 616A to 617, inclusive, of NRS for the determination of

25-5 contested claims;

25-6 (c) Chapter 703 of NRS for the judicial review of decisions of the public

25-7 utilities commission of Nevada;

25-8 (d) Chapter 91 of NRS for the judicial review of decisions of the

25-9 administrator of the securities division of the office of the secretary of state;

25-10 and

25-11 (e) NRS 90.800 for the use of summary orders in contested cases,

25-12 prevail over the general provisions of this chapter.

25-13 4. The provisions of NRS 233B.122, 233B.124, 233B.125 and

25-14 233B.126 do not apply to the department of human resources in the

25-15 adjudication of contested cases involving the issuance of letters of approval

25-16 for health facilities and agencies.

25-17 5. The provisions of this chapter do not apply to:

25-18 (a) Any order for immediate action, including, but not limited to,

25-19 quarantine and the treatment or cleansing of infected or infested animals,

25-20 objects or premises, made under the authority of the state board of

25-21 agriculture, the state board of health, the state board of sheep

25-22 commissioners or any other agency of this state in the discharge of a

25-23 responsibility for the preservation of human or animal health or for insect

25-24 or pest control; or

25-25 (b) An extraordinary regulation of the state board of pharmacy adopted

25-26 pursuant to NRS 453.2184.

25-27 6. The state board of parole commissioners is subject to the provisions

25-28 of this chapter for the purpose of adopting regulations but not with respect

25-29 to any contested case.

25-30 Sec. 38. NRS 277.067 is hereby amended to read as follows:

25-31 277.067 1. Except as otherwise provided in subsection 2, any two or

25-32 more political subdivisions of this state, agencies of the state or the

25-33 University and Community College System of Nevada may enter into a

25-34 cooperative agreement for the purchase of insurance or the establishment of

25-35 a self-insurance reserve or fund for coverage under a plan of:

25-36 (a) Casualty insurance, as that term is defined in NRS 681A.020;

25-37 (b) Marine and transportation insurance, as that term is defined in NRS

25-38 681A.050;

25-39 (c) Property insurance, as that term is defined in NRS 681A.060;

25-40 (d) Surety insurance, as that term is defined in NRS 681A.070;

25-41 (e) Health insurance, as that term is defined in NRS 681A.030; or

25-42 (f) Insurance for any combination of these kinds of protection.

26-1 2. Any political subdivision of the state, any agency of the state or the

26-2 University and Community College System of Nevada which participates in

26-3 the [~~state’s program of group insurance]~~ public employees’ benefits

26-4 program shall obtain the approval of the [~~committee on benefits]~~ board of

26-5 the public employees’ benefits program before it enters into a cooperative

26-6 agreement for the purchase of health insurance pursuant to paragraph (e) of

26-7 subsection 1.

26-8 3. Any such agreement may obligate the respective parties to pledge

26-9 revenues or contribute money to secure the obligations or pay the expenses

26-10 of the cooperative undertaking and may provide for the establishment of a

26-11 separate entity to administer the undertaking.

26-12 Sec. 39. Chapter 331 of NRS is hereby amended by adding thereto a

26-13 new section to read as follows:

26-14 The state risk manager may employ such staff as is necessary for the

26-15 performance of his duties, within limits of legislative appropriations or

26-16 other available money.

26-17 Sec. 40. NRS 331.184 is hereby amended to read as follows:

26-18 331.184 The state risk manager shall:

26-19 1. Direct and supervise all administrative and technical activities of the

26-20 risk management division.

26-21 2. Determine the nature and extent of requirements for insurance, other

26-22 than group life, accident or health insurance, on risks of an insurable nature

26-23 of the state and any of its agencies, the premiums for which are payable in

26-24 whole or in part from public money.

26-25 3. Negotiate for, procure, purchase and have placed, through a licensed

26-26 insurance agent or broker residing or domiciled in Nevada, or continued in

26-27 effect all insurance coverages, other than employee group life, accident or

26-28 health insurance, which may be reasonably obtainable, whether from

26-29 insurers authorized to transact business in this state or under the surplus

26-30 lines provisions of chapter 685A of NRS.

26-31 4. Conduct periodic inspections of premises, property and risks to

26-32 determine insurability, risk and premium rate, and submit a written report

26-33 of each inspection and appraisal, together with any recommendations that

26-34 appear appropriate, to the administrator of the agency most responsible for

26-35 the premises, property or risk, and to the director of the department of

26-36 administration.

26-37 5. Provide for self-insurance if the potential loss is relatively

26-38 insignificant or if the risk is highly predictable and the probability of loss is

26-39 so slight that the cost of insuring the risk is not a prudent expenditure of

26-40 public funds, or if insurance is unavailable or unavailable at a reasonable

26-41 cost.

26-42 6. Select reasonable deductibles when it appears economically

26-43 advantageous to the state to do so.

27-1 7. Select comprehensive and blanket coverages insuring the property of

27-2 two or more state agencies when that appears economically advisable.

27-3 8. Investigate and determine the reliability and financial condition of

27-4 insurers, and the services they provide.

27-5 9. Minimize risks by adopting and promoting programs to control

27-6 losses and encourage safety.

27-7 10. Perform any of the services described in subsections 2, 3 and 4 for

27-8 any political subdivision of the state at the request of its managing officer

27-9 or governing body.

27-10 11. [~~Act as adviser to the committee on benefits.~~

27-11 ~~12.]~~ Perform any other function of risk management as directed by the

27-12 director of the department of administration.

27-13 Sec. 41. Chapter 679B of NRS is hereby amended by adding thereto a

27-14 new section to read as follows:

27-15 1. The commissioner shall adopt regulations which require the use of

27-16 uniform claim forms and billing codes and the ability to make

27-17 compatible electronic data transfers for all insurers and administrators

27-18 authorized to conduct business in this state relating to a health care plan

27-19 or health insurance or providing or arranging for the provision of health

27-20 care services, including, without limitation, an insurer that issues a

27-21 policy of health insurance, an insurer that issues a policy of group health

27-22 insurance, a carrier serving small employers, a fraternal benefit society,

27-23 a hospital or medical service corporation, a health maintenance

27-24 organization, a plan for dental care and a prepaid limited health service

27-25 organization.

27-26 2. As used in this section:

27-27 (a) "Administrator" has the meaning ascribed to it in NRS 683A.025.

27-28 (b) "Health care plan" means a policy, contract, certificate or

27-29 agreement offered or issued by an insurer to provide, deliver, arrange

27-30 for, pay for or reimburse any of the costs of health care services.

27-31 Sec. 42. NRS 689B.065 is hereby amended to read as follows:

27-32 689B.065 1. A policy of group health insurance issued to replace any

27-33 discontinued policy or coverage for group health insurance must:

27-34 (a) Provide coverage for all persons who were covered under the

27-35 previous policy or coverage on the date it was discontinued; and

27-36 (b) Except as otherwise provided in subsection 2, provide benefits

27-37 which are at least as extensive as the benefits provided by the previous

27-38 policy or coverage, except that benefits may be reduced or excluded to the

27-39 extent that such a reduction or exclusion was permissible under the terms of

27-40 the previous policy or coverage,

27-41 if that replacement policy is issued within 60 days after the date on which

27-42 the previous policy or coverage was discontinued.

28-1 2. If an employer obtains a replacement policy pursuant to subsection 1

28-2 to cover his employees, any benefits provided by the previous policy or

28-3 coverage may be reduced if notice of the reduction is given to his

28-4 employees pursuant to NRS 608.1577.

28-5 3. Any insurer which issues a replacement policy pursuant to

28-6 subsection 1 may submit a written request to the insurer who provided the

28-7 previous policy or coverage for a statement of benefits which were

28-8 provided under that policy or coverage. Upon receiving such a request, the

28-9 insurer who provided the previous policy or coverage shall give a written

28-10 statement to the insurer providing the replacement policy which indicates

28-11 what benefits were provided and what exclusions or reductions were in

28-12 effect under the previous policy or coverage.

28-13 4. The provisions of this section:

28-14 (a) Apply to a self-insured employer who provides health benefits to his

28-15 employees and replaces those benefits with a policy of group health

28-16 insurance.

28-17 (b) Do not apply to the [~~state’s program of group insurance]~~ public

28-18 employees’ benefits program established pursuant to NRS 287.041 to

28-19 287.049, inclusive [.] , and sections 5 to 12.5, inclusive, of this act.

28-20 Sec. 42.5. Section 18 of this act is hereby amended to read as follows:

28-21 Sec. 18. NRS 287.041 is hereby amended to read as follows:

28-22 287.041 1. There is hereby created the board of the public

28-23 employees’ benefits program. The board consists of [~~nine]~~ seven

28-24 members appointed as follows:

28-25 (a) One member who is an employee of the University and

28-26 Community College System of Nevada, appointed by the governor

28-27 upon consideration of any recommendations of organizations that

28-28 represent employees of the University and Community College

28-29 System of Nevada.

28-30 (b) One member who is retired from public employment,

28-31 appointed by the governor upon consideration of any

28-32 recommendations of organizations that represent retired public

28-33 employees.

28-34 (c) Two members who are employees of the state, appointed by

28-35 the governor upon consideration of any recommendations of

28-36 organizations that represent state employees.

28-37 (d) One member appointed by the governor upon consideration

28-38 of any recommendations of organizations that represent employees

28-39 of local governments that participate in the program.

28-40 (e) One member who is employed by this state in a managerial

28-41 capacity and has substantial and demonstrated experience in risk

28-42 management, portfolio investment strategies or employee benefits

28-43 programs appointed by the governor. The governor may appoint the

29-1 executive officer of the public employees’ retirement system to fill

29-2 this position.

29-3 (f) [~~Two members who have substantial and demonstrated~~

29-4 ~~experience in risk management, portfolio investment strategies or~~

29-5 ~~employee benefits programs appointed by the governor.~~

29-6 ~~(g)]~~ The director of the department of administration or his

29-7 designee.

29-8 2. Of the six persons appointed to the board pursuant to

29-9 paragraphs (a) to (e), inclusive, of subsection 1, at least one member

29-10 must have an advanced degree in business administration,

29-11 economics, accounting, insurance, risk management or health care

29-12 administration, and at least two members must have education or

29-13 proven experience in the management of employees’ benefits,

29-14 insurance, risk management, health care administration or business

29-15 administration.

29-16 3. Each person appointed as a member of the board must:

29-17 (a) [~~Except for a member appointed pursuant to paragraph (f) of~~

29-18 ~~subsection 1, have]~~ Have been a participant in the program for at

29-19 least 1 year before his appointment;

29-20 (b) [~~Except for a member appointed pursuant to paragraph (f) of~~

29-21 ~~subsection 1, be]~~ Be a current employee of the State of Nevada or

29-22 another public employer that participates in the program or a retired

29-23 public employee who is a participant in the program; and

29-24 (c) Not be an elected officer of the State of Nevada or any of its

29-25 political subdivisions.

29-26 4. Except as otherwise provided in this subsection, after the

29-27 initial terms, the term of an appointed member of the board is 4

29-28 years and until his successor is appointed and takes office unless the

29-29 member no longer possesses the qualifications for appointment set

29-30 forth in this section or is removed by the governor. If a member

29-31 loses the requisite qualifications within the last 12 months of his

29-32 term, the member may serve the remainder of his term. Members

29-33 are eligible for reappointment. A vacancy occurring in the

29-34 membership of the board must be filled in the same manner as the

29-35 original appointment.

29-36 5. The appointed members of the board serve at the pleasure of

29-37 the governor. If the governor wishes to remove a member from the

29-38 board for any reason other than malfeasance or misdemeanor, the

29-39 governor shall provide the member with written notice which states

29-40 the reason for and the effective date of the removal.

30-1 Sec. 42.7. Section 3 of Assembly Bill No. 12 of this session is hereby

30-2 amended to read as follows:

30-3 Sec. 3. NRS 233B.039 is hereby amended to read as follows:

30-4 233B.039 1. The following agencies are entirely exempted

30-5 from the requirements of this chapter:

30-6 (a) The governor.

30-7 (b) The department of prisons.

30-8 (c) The University and Community College System of Nevada.

30-9 (d) The office of the military.

30-10 (e) The state gaming control board.

30-11 (f) The Nevada gaming commission.

30-12 (g) The welfare division of the department of human resources.

30-13 (h) The division of health care financing and policy of the

30-14 department of human resources.

30-15 (i) The state board of examiners acting pursuant to chapter 217

30-16 of NRS.

30-17 (j) Except as otherwise provided in NRS 533.365, the office of

30-18 the state engineer.

30-19 (k) The division of industrial relations of the department of

30-20 business and industry acting to enforce the provisions of NRS

30-21 618.375.

30-22 (l) The board to review claims in adopting resolutions to carry

30-23 out its duties pursuant to NRS 590.830.

30-24 2. Except as otherwise provided in NRS 391.323, the

30-25 department of education, the board of the public employees’

30-26 benefits program and the commission on professional standards in

30-27 education are subject to the provisions of this chapter for the

30-28 purpose of adopting regulations but not with respect to any

30-29 contested case.

30-30 3. The special provisions of:

30-31 (a) Chapter 612 of NRS for the distribution of regulations by and

30-32 the judicial review of decisions of the employment security division

30-33 of the department of employment, training and rehabilitation;

30-34 (b) Chapters 616A to 617, inclusive, of NRS for the

30-35 determination of contested claims;

30-36 (c) Chapter 703 of NRS for the judicial review of decisions of

30-37 the public utilities commission of Nevada;

30-38 (d) Chapter 91 of NRS for the judicial review of decisions of the

30-39 administrator of the securities division of the office of the secretary

30-40 of state; and

30-41 (e) NRS 90.800 for the use of summary orders in contested

30-42 cases,

30-43 prevail over the general provisions of this chapter.

31-1 4. The provisions of NRS 233B.122, 233B.124, 233B.125 and

31-2 233B.126 do not apply to the department of human resources in the

31-3 adjudication of contested cases involving the issuance of letters of

31-4 approval for health facilities and agencies.

31-5 5. The provisions of this chapter do not apply to:

31-6 (a) Any order for immediate action, including, but not limited to,

31-7 quarantine and the treatment or cleansing of infected or infested

31-8 animals, objects or premises, made under the authority of the state

31-9 board of agriculture, the state board of health, the state board of

31-10 sheep commissioners or any other agency of this state in the

31-11 discharge of a responsibility for the preservation of human or

31-12 animal health or for insect or pest control; or

31-13 (b) An extraordinary regulation of the state board of pharmacy

31-14 adopted pursuant to NRS 453.2184.

31-15 6. The state board of parole commissioners is subject to the

31-16 provisions of this chapter for the purpose of adopting regulations

31-17 but not with respect to any contested case.

31-18 Secs. 43-46. (Deleted by amendment.)

31-19 Sec. 47. Section 3 of Assembly Bill No. 176 of this session is hereby

31-20 amended to read as follows:

31-21 Sec. 3. 1. Notwithstanding the provisions of NRS 287.041 to

31-22 287.049, inclusive, to the contrary, the operation of the Committee

31-23 on Benefits, created by NRS 287.041, is hereby [~~indefinitely]~~

31-24 suspended and the committee shall not transact any business or hold

31-25 any meetings [~~after the effective date of this act.~~

31-26 ~~2. On and after the effective date of this act, the]~~ until the

31-27 members of the board of the public employees’ benefits program

31-28 are appointed pursuant to section 48 of Senate Bill No. 544 of this

31-29 session.

31-30 2. The Governor, or his designee, shall administer the

31-31 provisions of NRS 287.041 to 287.049, inclusive [.] , until the

31-32 members of the board of the public employees’ benefits program

31-33 are appointed pursuant to section 48 of Senate Bill No. 544 of this

31-34 session. For this purpose, the Governor or his designee are hereby

31-35 granted all powers necessary and proper to ensure the efficient and

31-36 effective operation of the plan of self-insurance for state officers

31-37 and employees and all other programs and benefits authorized by

31-38 NRS 287.041 to 287.049, inclusive, and shall act on behalf of the

31-39 Committee on Benefits in all matters relating to any contracts or

31-40 other matters to which the committee is a party.

31-41 3. The State of Nevada is liable for indemnification of the

31-42 Governor and his designee against liability relating to the

31-43 administration of the state’s program of group insurance or the

32-1 public employees’ benefits program, subject to the limitations

32-2 specified in NRS 41.0349.

32-3 Sec. 47.2. Section 3 of Senate Bill No. 404 of this session is hereby

32-4 amended to read as follows:

32-5 Sec. 3. 1. Except as otherwise provided in subsection 4, the

32-6 surviving spouse and any surviving child of a police officer or

32-7 fireman who was employed by a participating public agency and

32-8 who was killed in the line of duty may join or continue coverage

32-9 under the [~~state’s program of group insurance]~~ public employees’

32-10 benefits program if the police officer or fireman was a participant

32-11 or would have been eligible to participate on the date of the death of

32-12 the police officer or fireman. If the surviving spouse or child elects

32-13 to join or discontinue coverage under the [~~state’s program of group~~

32-14 ~~insurance]~~ public employees’ benefits program pursuant to this

32-15 subsection, the spouse, child or legal guardian of the child must

32-16 notify in writing the participating public agency that employed the

32-17 police officer or fireman within 60 days after the date of death of

32-18 the police officer or fireman.

32-19 2. Except as otherwise provided in subsection 4, the surviving

32-20 spouse and any surviving child of a volunteer fireman who was

32-21 killed in the line of duty and who was officially a member of a

32-22 volunteer fire department in this state is eligible to join the [~~state’s~~

32-23 ~~program of group insurance.]~~ public employees’ benefits program.

32-24 If such a spouse or child elects to join the [~~state’s program of group~~

32-25 ~~insurance,]~~ public employees’ benefits program, the spouse, child

32-26 or legal guardian of the child must notify in writing the [~~committee~~

32-27 ~~on benefits]~~ board within 60 days after the date of death of the

32-28 volunteer fireman.

32-29 3. The participating public agency that employed the police

32-30 officer or fireman shall pay the entire cost of the premiums or

32-31 contributions for the [~~state’s program of group insurance]~~ public

32-32 employees’ benefits program for the surviving spouse or child who

32-33 meets the requirements set forth in subsection 1. The State of

32-34 Nevada shall pay the entire cost of the premiums or contributions

32-35 for the [~~state’s program of group insurance]~~ public employees’

32-36 benefits program for the surviving spouse or child who elects to

32-37 join the [~~state’s program of group insurance]~~ public employees’

32-38 benefits program pursuant to subsection 2.

32-39 4. A surviving spouse is eligible to receive coverage pursuant

32-40 to this section for the duration of the life of the surviving spouse. A

32-41 surviving child is eligible to receive coverage pursuant to this

32-42 section until the child reaches:

32-43 (a) The age of 18 years; or

33-1 (b) The age of 23 years, if the child is enrolled as a full-time

33-2 student in an accredited university, college or trade school.

33-3 5. As used in this section "police officer" has the meaning

33-4 ascribed to it in NRS 617.135.

33-5 Sec. 47.3. Section 3 of Senate Bill No. 404 of this session is hereby

33-6 amended to read as follows:

33-7 Sec. 3. 1. Except as otherwise provided in subsection 4, the

33-8 surviving spouse and any surviving child of a police officer or

33-9 fireman who was employed by a participating public agency and

33-10 who was killed in the line of duty may join or continue coverage

33-11 under the public employees’ benefits program or another insurer

33-12 or employee benefit plan approved by the board pursuant to

33-13 section 12.5 of Senate Bill No. 544 of this session if the police

33-14 officer or fireman was a participant or would have been eligible to

33-15 participate on the date of the death of the police officer or fireman.

33-16 If the surviving spouse or child elects to join or discontinue

33-17 coverage under the public employees’ benefits program pursuant to

33-18 this subsection, the spouse, child or legal guardian of the child must

33-19 notify in writing the participating public agency that employed the

33-20 police officer or fireman within 60 days after the date of death of

33-21 the police officer or fireman.

33-22 2. Except as otherwise provided in subsection 4, the surviving

33-23 spouse and any surviving child of a volunteer fireman who was

33-24 killed in the line of duty and who was officially a member of a

33-25 volunteer fire department in this state is eligible to join the public

33-26 employees’ benefits program. If such a spouse or child elects to join

33-27 the public employees’ benefits program the spouse, child or legal

33-28 guardian of the child must notify in writing the board within 60 days

33-29 after the date of death of the volunteer fireman.

33-30 3. The participating public agency that employed the police

33-31 officer or fireman shall pay the entire cost of the premiums or

33-32 contributions for the public employees’ benefits program or

33-33 another insurer or employee benefit plan approved by the board

33-34 pursuant to section 12.5 of Senate Bill No. 544 of this session for

33-35 the surviving spouse or child who meets the requirements set forth

33-36 in subsection 1. The State of Nevada shall pay the entire cost of the

33-37 premiums or contributions for the public employees’ benefits

33-38 program for the surviving spouse or child who elects to join the

33-39 public employees’ benefits program pursuant to subsection 2.

33-40 4. A surviving spouse is eligible to receive coverage pursuant

33-41 to this section for the duration of the life of the surviving spouse. A

33-42 surviving child is eligible to receive coverage pursuant to this

33-43 section until the child reaches:

34-1 (a) The age of 18 years; or

34-2 (b) The age of 23 years, if the child is enrolled as a full-time

34-3 student in an accredited university, college or trade school.

34-4 5. As used in this section "police officer" has the meaning

34-5 ascribed to it in NRS 617.135.

34-6 Sec. 47.5. NRS 286.113 and 287.0432 are hereby repealed.

34-7 Sec. 48. 1. The terms of the persons who are members of the

34-8 committee on benefits on June 30, 1999, expire on that date.

34-9 2. As soon as practicable on or before July 1, 1999, the appointing

34-10 authorities set forth in subsection 1 of NRS 287.041, as amended by this

34-11 act, shall appoint members of the board. The initial appointed members of

34-12 the board shall, at the first meeting of the board after their appointment,

34-13 draw lots to determine which:

34-14 (a) Member will serve an initial term that begins on July 1, 1999, and

34-15 expires on July 1, 2000;

34-16 (b) Member will serve an initial term that begins on July 1, 1999, and

34-17 expires on July 1, 2001;

34-18 (c) Member will serve an initial term that begins on July 1, 1999, and

34-19 expires on July 1, 2002; and

34-20 (d) Two members will serve initial terms that begin on July 1, 1999, and

34-21 expire on July 1, 2003.

34-22 Sec. 48.5. On or before February 5, 2001, the board of the public

34-23 employees’ benefits program created pursuant to NRS 287.041 shall submit

34-24 a copy of the regulations adopted by the board pursuant to section 12.5 of

34-25 this act to the 71st session of the Nevada Legislature.

34-26 Sec. 49. 1. This section and sections 41, 47 and 48 of this act

34-27 become effective upon passage and approval.

34-28 2. Sections 1 to 12, inclusive, 13 to 28, inclusive, 30 to 40, inclusive,

34-29 42, 42.7, 47.2, 48.5 and 50 of this act become effective on July 1, 1999.

34-30 3. Section 29 of this act becomes effective at 12:01 a.m. on July 1,

34-31 1999.

34-32 4. Section 12.5 and 47.3 of this act become effective on July 1, 1999,

34-33 for the purpose of adopting regulations, and on January 1, 2001, for all

34-34 other purposes.

34-35 5. Section 18 of this act expires by limitation on July 1, 2003.

34-36 6. Section 42.5 of this act becomes effective on July 1, 2003.

34-37 Sec. 50. The legislative counsel shall:

34-38 1. In preparing the reprint and supplements to the Nevada Revised

34-39 Statutes, with respect to any section that is not amended by this act or is

34-40 further amended by another act, appropriately change any reference to:

34-41 (a) "Committee on benefits" to "board of the public employees’ benefits

34-42 program."

35-1 (b) "State’s program of group insurance" to "public employees’ benefits

35-2 program."

35-3 2. In preparing supplements to the Nevada Administrative Code,

35-4 appropriately change any reference to:

35-5 (a) "Committee on benefits" to "board of the public employees’ benefits

35-6 program."

35-7 (b) "State’s program of group insurance" to "public employees’ benefits

35-8 program."

35-9 TEXT OF REPEALED SECTIONS

35-10 286.113 Interim retirement committee: Composition; chairman;

35-11 functions; salary, subsistence and travel of members.

35-12 1. There is hereby created an interim retirement committee of the

35-13 legislature composed of:

35-14 (a) Three members of the senate, one of whom is the chairman of the

35-15 committee on finance during the preceding session and two of whom shall

35-16 be appointed by the majority leader of the senate.

35-17 (b) Three members of the assembly, one of whom is the chairman of the

35-18 committee on ways and means and two of whom shall be appointed by the

35-19 speaker.

35-20 2. The immediate past chairman of the committee on ways and means

35-21 shall be the chairman of the interim retirement committee for the period

35-22 ending with the convening of the 60th session of the legislature. The

35-23 immediate past chairman of the committee on finance shall be the chairman

35-24 of the interim retirement committee during the next legislative interim, and

35-25 the chairmanship shall continue to alternate between the houses of the

35-26 legislature according to this pattern.

35-27 3. The interim retirement committee exists only when the legislature is

35-28 not in regular or special session. During those times, it shall meet at the call

35-29 of the chairman to review the operation of the system and to make

35-30 recommendations to the board, the legislative commission and the

35-31 legislature.

35-32 4. The director of the legislative counsel bureau shall provide a

35-33 secretary for the interim retirement committee. Each member of the

35-34 committee is entitled to a salary of $80 for each day or part of a day during

35-35 which he attends a committee meeting or is otherwise engaged in the work

35-36 of the committee. Per diem allowances, salary and travel expenses of

35-37 members of the committee must be paid from the legislative fund.

36-1 287.0432 Committee on benefits: Procedures for contested claims.
36-2 The committee on benefits shall by regulation provide for specific

36-3 procedures for the determination of contested claims.