Assembly Bill No. 123–Assemblymen de Braga, Chowning, Freeman, Gibbons, Anderson, Berman, Claborn, Collins, Giunchigliani, Koivisto, Lee, Manendo, Mortenson, Oceguera, Parks, Parnell and Smith
CHAPTER..........
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 679B.130 is hereby amended to read as follows:
679B.130 1. The commissioner may adopt reasonable regulations for
the administration of any provision of this code or chapters 616A to 617,
inclusive, of NRS[.] and section 2 of this act.
2. A person who willfully violates any regulation of the commissioner
is subject to such suspension or revocation of a certificate of authority or
license, or administrative fine in lieu of such suspension or revocation, as
may be applicable under this code or chapter 616A, 616B, 616C, 616D or
617 of NRS for violation of the provision to which the regulation relates.
No penalty applies to any act done or omitted in good faith in conformity
with any such regulation, notwithstanding that the regulation may, after
the act or omission, be amended, rescinded or determined by a judicial or
other authority to be invalid for any reason.
Sec. 2. Chapter 287 of NRS is hereby amended by adding thereto a
new section to read as follows:
If the board provides health insurance through a plan of self
-insurance, it shall comply with the provisions of NRS 689B.255,
695G.150, 695G.160, 695G.170 and 695G.200 to 695G.230, inclusive, in
the same manner as an insurer that is licensed pursuant to Title 57 of
NRS is required to comply with those provisions.
Sec. 3. NRS 287.0402 is hereby amended to read as follows:
287.0402 As used in NRS 287.0402 to 287.049, inclusive, and section
2 of this act, unless the context otherwise requires, the words and terms
defined in NRS 287.0404 and 287.0406 have the meanings ascribed to
them in those sections.
Sec. 4. NRS 287.043 is hereby amended to read as follows:
287.043 1. The board shall:
(a) Establish and carry out a program to be known as the public
employees’ benefits program which:
(1) Must include a program relating to group life, accident or health
insurance, or any combination of these; and
(2) May include a program to reduce taxable compensation or other
forms of compensation other than deferred compensation,
for the benefit of all state officers and employees and other persons who
participate in the program.
(b) Ensure that the program is funded on an actuarially sound basis and
operated in accordance with sound insurance and business practices.
2. In establishing and carrying out the program, the board shall:
(a) Except as otherwise provided in this paragraph, negotiate and
contract with the governing body of any public agency enumerated in NRS
287.010 [which is desirous of obtaining] that wishes to obtain group
insurance for its officers, employees and retired employees by
participation in the program. The board may establish separate rates and
coverage for those officers, employees and retired employees based on
actuarial reports.
(b) [Give] Except as otherwise provided in paragraph (c), provide
public notice in writing of any proposed changes in rates or coverage to
each participating public employer who may be affected by the changes.
Notice must be provided at least 30 days before the effective date of the
changes.
(c) If a proposed change is a change in the premium charged for or
coverage of health insurance, provide written notice of the proposed
change to all state officers, employees, retired employees and other
persons who participate in the program who may be affected by the
proposed change. The notice must be provided at least 60 days before the
date a state officer, employee, retired employee or other person is
required to select or change his policy of health insurance.
(d) Purchase policies of life, accident or health insurance, or any
combination of these, or, if applicable, a program to reduce the amount of
taxable compensation pursuant to 26 U.S.C. § 125, from any company
qualified to do business in this state or provide similar coverage through a
plan of self-insurance established pursuant to NRS 287.0433 for the
benefit of all eligible public officers, employees and retired employees
who participate in the program.
[(d)] (e) Except as otherwise provided in this Title, develop and
establish other employee benefits as necessary.
[(e)] (f) Investigate and approve or disapprove any contract proposed
pursuant to NRS 287.0479.
[(f)] (g) Adopt such regulations and perform such other duties as are
necessary to carry out the provisions of NRS 287.0402 to 287.049,
inclusive, and section 2 of this act, including, without limitation, the
establishment of:
(1) Fees for applications for participation in the program and for the
late payment of premiums or contributions;
(2) Conditions for entry and reentry into the program by public
agencies enumerated in NRS 287.010;
(3) The levels of participation in the program required for employees
of participating public agencies;
(4) Procedures by which a group of participants in the program may
leave the program pursuant to NRS 287.0479 and conditions and
procedures for reentry into the program by [such] those participants; and
(5) Specific procedures for the determination of contested claims.
[(g)] (h) Appoint an independent certified public accountant. The
accountant shall:
(1) Provide an annual audit of the program; and
(2) Report to the board and the interim retirement and benefits
committee of the legislature created pursuant to NRS 218.5373.
[(h)] (i)Appoint an attorney who specializes in employee benefits. The
attorney shall:
(1) Perform a biennial review of the program to determine whether
the program complies with federal and state laws relating to taxes and
employee benefits; and
(2) Report to the board and the interim retirement and benefits
committee of the legislature created pursuant to NRS 218.5373.
3. The board may use any services provided to state agencies and shall
use the services of the purchasing division of the department of
administration to establish and carry out the program.
4. The board may make recommendations to the legislature concerning
legislation that it deems necessary and appropriate regarding the program.
5. The state and any other public employers that participate in the
program are not liable for any obligation of the program other than
indemnification of the board and its employees against liability relating to
the administration of the program, subject to the limitations specified in
NRS 41.0349.
6. As used in this section, “employee benefits” includes any form of
compensation provided to a public employee except federal benefits,
wages earned, legal holidays, deferred compensation and benefits
available pursuant to chapter 286 of NRS.
Sec. 5. NRS 287.046 is hereby amended to read as follows:
287.046 1. Except as otherwise provided in subsection 6, any state or
other participating officer or employee who elects to participate in the
program may participate, and the department, agency, commission or
public agency that employs the officer or employee shall pay the state’s
share of the cost of the premiums or contributions for the program from
money appropriated or authorized as provided in NRS 287.044.
Employees who elect to participate in the program must authorize
deductions from their compensation for the payment of premiums or
contributions for the program. Any deduction from the compensation of
an employee for the payment of a premium for health insurance must be
based on the actual cost of providing that health insurance after
deducting any amount of the premium which is paid by the department,
agency, commission or public agency that employs the employee. As
used in this subsection, “actual cost” includes any amount which has
been approved by the board and which is paid by any department,
agency, commission or public agency of this state for:
(a) A program of supplemental insurance;
(b) Subsidization of premiums for health insurance for dependents
and retired participants;
(c) Administrative costs relating to the provision of the health
insurance; and
(d) Costs required to maintain adequate reserves.
2. The department of personnel shall pay a percentage of the base
amount provided by law for that fiscal year toward the cost of the
premiums or contributions for the program for persons retired from the
service of the state who have continued to participate in the program.
Except as otherwise provided in subsection 3, the percentage to be paid
must be calculated as follows:
(a) For those persons who retire before January 1, 1994, 100 percent of
the base amount provided by law for that fiscal year.
(b) For those persons who retire on or after January 1, 1994, with at
least 5 years of state service, 25 percent plus an additional 7.5 percent for
each year of service in excess of 5 years to a maximum of 137.5 percent,
excluding service purchased pursuant to NRS 286.300, of the base amount
provided by law for that fiscal year.
3. If the amount calculated pursuant to subsection 2 exceeds the actual
premium or contribution for the plan of the program that the retired
participant selects, the balance must be credited to the fund for the public
employees’ benefits program created pursuant to NRS 287.0435.
4. For the purposes of subsection 2:
(a) Credit for service must be calculated in the manner provided by
chapter 286 of NRS.
(b) No proration may be made for a partial year of service.
5. The department shall agree through the board with the insurer for
billing of remaining premiums or contributions for the retired participant
and his dependents to the retired participant and to his dependents who
elect to continue coverage under the program after his death.
6. A senator or assemblyman who elects to participate in the program
shall pay the entire premium or contribution for his insurance.
Sec. 6. This act becomes effective on January 1, 2002.
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