exempt

                                                   (REPRINTED WITH ADOPTED AMENDMENTS)

 

Assembly Bill No. 564–Committee on Government Affairs

 

March 26, 2001

____________

 

Referred to Committee on Government Affairs

 

SUMMARY—Makes various changes relating to public employees’ benefits program. (BDR 23‑1346)

 

FISCAL NOTE:            Effect on Local Government: No.

                                    Effect on the State: Yes.

 

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to programs for public employees; requiring the commingling of the claims experience of active and retired state employees to determine rates and coverage; prohibiting the board of the public employees’ benefits program from entering into certain contracts; requiring the board to provide an annual report regarding the administration and operation of the program to the director of the legislative counsel bureau; 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 287.043 is hereby amended to read as follows:

1-2    287.043  1.  The board shall:

1-3    (a) Establish and carry out a program to be known as the public

1-4  employees’ benefits program which:

1-5       (1) Must include a program relating to group life, accident or health

1-6  insurance, or any combination of these; and

1-7       (2) May include a program to reduce taxable compensation or other

1-8  forms of compensation other than deferred compensation,

1-9  for the benefit of all state officers and employees and other persons who

1-10  participate in the program.

1-11    (b) Ensure that the program is funded on an actuarially sound basis and

1-12  operated in accordance with sound insurance and business practices.

1-13    2.  In establishing and carrying out the program, the board shall:

1-14    (a) For the purpose of establishing actuarial data to determine rates

1-15  and coverage for active and retired state officers and employees and their

1-16  dependents, commingle the claims experience of such active and retired

1-17  officers and employees and their dependents.

1-18    (b) Except as otherwise provided in this paragraph, negotiate and

1-19  contract with the governing body of any public agency enumerated in NRS

1-20  287.010 which is desirous of obtaining group insurance for its officers,

2-1  employees and retired employees by participation in the program. The

2-2  board shall establish separate rates and coverage for those officers,

2-3  employees and retired employees based on actuarial reports.

2-4    [(b)] (c) Give public notice in writing of proposed changes in rates or

2-5  coverage to each participating public employer who may be affected by the

2-6  changes. Notice must be provided at least 30 days before the effective date

2-7  of the changes.

2-8    [(c)] (d) Purchase policies of life, accident or health insurance, or any

2-9  combination of these, or, if applicable, a program to reduce the amount of

2-10  taxable compensation pursuant to 26 U.S.C. § 125, from any company

2-11  qualified to do business in this state or provide similar coverage through a

2-12  plan of self-insurance established pursuant to NRS 287.0433 for the benefit

2-13  of all eligible public officers, employees and retired employees who

2-14  participate in the program.

2-15    [(d)] (e) Except as otherwise provided in this Title, develop and

2-16  establish other employee benefits as necessary.

2-17    [(e)] (f) Investigate and approve or disapprove any contract proposed

2-18  pursuant to NRS 287.0479.

2-19    [(f)] (g) Adopt such regulations and perform such other duties as are

2-20  necessary to carry out the provisions of NRS 287.0402 to 287.049,

2-21  inclusive, including, without limitation, the establishment of:

2-22      (1) Fees for applications for participation in the program and for the

2-23  late payment of premiums or contributions;

2-24      (2) Conditions for entry and reentry into the program by public

2-25  agencies enumerated in NRS 287.010;

2-26      (3) The levels of participation in the program required for employees

2-27  of participating public agencies;

2-28      (4) Procedures by which a group of participants in the program may

2-29  leave the program pursuant to NRS 287.0479 and conditions and

2-30  procedures for reentry into the program by such participants; and

2-31      (5) Specific procedures for the determination of contested claims.

2-32    [(g)] (h) Appoint an independent certified public accountant. The

2-33  accountant shall provide:

2-34      (1) An annual audit of the program; and

2-35      (2) A biennial audit of the program to determine whether the program

2-36  complies with federal and state laws relating to taxes and employee

2-37  benefits.

2-38  The accountant shall report to the board and the interim retirement and

2-39  benefits committee of the legislature created pursuant to NRS 218.5373.

2-40    3. The board shall submit an annual report regarding the

2-41  administration and operation of the program to the director of the

2-42  legislative counsel bureau not more than 6 months before the board

2-43  establishes rates and coverage for members for the following calendar

2-44  year. The report must include, without limitation:

2-45    (a) The amount paid by the program in the preceding calendar year

2-46  for the claims of active and retired state officers and employees; and

2-47    (b) The amount paid by the program in the preceding calendar year

2-48  for the claims of retired members of the program who were provided

2-49  coverage for medical or hospital service, or both, by the Health

3-1  Insurance for the Aged Act, 42 U.S.C. §§ 1395 et seq., or a plan that

3-2  provides similar coverage.

3-3    4. The board may use any services provided to state agencies and shall

3-4  use the services of the purchasing division of the department of

3-5  administration to establish and carry out the program.

3-6    [4.] 5.  The board may make recommendations to the legislature

3-7  concerning legislation that it deems necessary and appropriate regarding

3-8  the program.

3-9    [5.] 6.  The state and any other public employers that participate in the

3-10  program are not liable for any obligation of the program other than

3-11  indemnification of the board and its employees against liability relating to

3-12  the administration of the program, subject to the limitations specified in

3-13  NRS 41.0349.

3-14    [6.] 7.  As used in this section, “employee benefits” includes any form

3-15  of compensation provided to a state employee pursuant to this Title except

3-16  federal benefits, wages earned, legal holidays, deferred compensation and

3-17  benefits available pursuant to chapter 286 of NRS.

3-18    Sec. 2.  NRS 287.0434 is hereby amended to read as follows:

3-19    287.0434  The board may:

3-20    1.  Use its assets to pay the expenses of health care for its members and

3-21  covered dependents, to pay its employees’ salaries and to pay

3-22  administrative and other expenses.

3-23    2.  Enter into contracts relating to the administration of the program,

3-24  including, without limitation, contracts with licensed administrators and

3-25  qualified actuaries. Each such contract with a licensed administrator:

3-26    (a) Must be submitted to the commissioner of insurance not less than 30

3-27  days before the date on which the contract is to become effective for

3-28  approval as to the reasonableness of administrative charges in relation to

3-29  contributions collected and benefits provided.

3-30    (b) Does not become effective unless approved by the commissioner.

3-31    (c) Shall be deemed to be approved if not disapproved by the

3-32  commissioner of insurance within 30 days after its submission.

3-33    3.  Enter into contracts with physicians, surgeons, hospitals, health

3-34  maintenance organizations and rehabilitative facilities for medical, surgical

3-35  and rehabilitative care and the evaluation, treatment and nursing care of

3-36  members and covered dependents. The board shall not enter into a

3-37  contract pursuant to this subsection unless provision is made by the

3-38  board to offer all the services specified in the request for proposals, either

3-39  by a health maintenance organization or through separate action of the

3-40  board.

3-41    4.  Enter into contracts for the services of other experts and specialists

3-42  as required by the program.

3-43    5.  Charge and collect from an insurer, health maintenance

3-44  organization, organization for dental care or nonprofit medical service

3-45  corporation, a fee for the actual expenses incurred by the board, the state or

3-46  a participating public employer in administering a plan of insurance offered

3-47  by that insurer, organization or corporation.

3-48    Sec. 3. On or after January 1, 2002, the board of the public

3-49  employees’ benefits program shall not enter into or renew any contract that

4-1  does not comply with subsection 3 of NRS 287.0434, as amended by this

4-2  act.

4-3    Sec. 4. This act becomes effective on January 1, 2002.

 

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