Senate Bill No. 539–Committee on Human Resources and Facilities

 

(On Behalf of Department of Human
Resources—Director's Office)

 

March 26, 2001

____________

 

Referred to Committee on Human Resources and Facilities

 

SUMMARY—Makes various changes concerning fund for a healthy Nevada. (BDR 40‑536)

 

FISCAL NOTE:    Effect on Local Government: No.

                                 Effect on the State: No.

 

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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 the fund for a healthy Nevada; providing that a portion of the money in the fund may be used to pay certain administrative costs incurred by the department of human resources; revising the procedures for allocating money in the fund; revising provisions relating to the program of subsidies for the provision of prescription drugs and pharmaceutical services to senior citizens; increasing the maximum allowable subsidies for senior citizens who participate in that program; authorizing the department of human resources to change that program under certain circumstances; 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. Chapter 439 of NRS is hereby amended by adding thereto

1-2  the provisions set forth as sections 2 and 3 of this act.

1-3    Sec. 2.  1.  From the money allocated to the aging services division

1-4  of the department pursuant to NRS 439.620, the division shall award

1-5  grants for existing or new programs which assist senior citizens with

1-6  independent living, including, without limitation, programs which

1-7  provide:

1-8    (a) Respite care or relief for family caretakers;

1-9    (b) Transportation to new or existing services to assist senior citizens

1-10  in living independently; and

1-11    (c) Care in the home which allows senior citizens to remain at home

1-12  instead of in institutional care.

1-13    2.  In carrying out its duties set forth in subsection 1, the aging

1-14  services division of the department shall:

2-1    (a) Prioritize and quantify the needs of senior citizens for the

2-2  programs;

2-3    (b) Develop, solicit and accept grant applications;

2-4    (c) As appropriate, expand or augment existing state programs for

2-5  senior citizens upon approval of the interim finance committee pursuant

2-6  to subsection 3;

2-7    (d) Award grants;

2-8    (e) Conduct annual evaluations of programs to which grants have

2-9  been awarded; and

2-10    (f) Submit annual reports concerning the grant program to the

2-11  governor and the interim finance committee.

2-12    3.  The aging services division of the department shall submit each

2-13  proposed grant that would be used to expand or augment an existing

2-14  state program to the interim finance committee for approval before the

2-15  grant is awarded. The request for approval must include a description of

2-16  the proposed use of the money and the person or entity that would be

2-17  authorized to expend the money.

2-18    4.  A condition of a grant that is awarded pursuant to this section

2-19  must be that not more than 8 percent of the grant may be used for

2-20  administrative expenses or other indirect costs.

2-21    Sec. 3. 1.  From the money allocated to the department pursuant to

2-22  NRS 439.620, the department shall, except as otherwise provided in

2-23  subsections 6 and 7 of NRS 439.665, subsidize all or a portion of the cost

2-24  of policies of health insurance that provide coverage to senior citizens for

2-25  prescription drugs and pharmaceutical services pursuant to this section

2-26  and NRS 439.635 to 439.690, inclusive.

2-27    2.  The department shall submit a quarterly report to the governor

2-28  and the interim finance committee regarding the general manner in

2-29  which expenditures have been made pursuant to this section and

2-30  regarding the status of the program established pursuant to this section

2-31  and NRS 439.635 to 439.690, inclusive.

2-32    Sec. 4.  NRS 439.620 is hereby amended to read as follows:

2-33    439.620  1.  The fund for a healthy Nevada is hereby created in the

2-34  state treasury. The state treasurer shall deposit in the fund:

2-35    (a) Fifty percent of all money received by this state pursuant to any

2-36  settlement entered into by the State of Nevada and a manufacturer of

2-37  tobacco products; and

2-38    (b) Fifty percent of all money recovered by this state from a judgment

2-39  in a civil action against a manufacturer of tobacco products.

2-40    2.  The state treasurer shall administer the fund. As administrator of the

2-41  fund, the state treasurer:

2-42    (a) Shall maintain the financial records of the fund;

2-43    (b) Shall invest the money in the fund as the money in other state funds

2-44  is invested;

2-45    (c) Shall manage any account associated with the fund;

2-46    (d) Shall maintain any instruments that evidence investments made with

2-47  the money in the fund;

2-48    (e) Shall allocate the money in the fund pursuant to subsection 5;

3-1    (f) May contract with vendors for any good or service that is necessary

3-2  to carry out the provisions of this section; and

3-3    [(f)] (g) May perform any other duties necessary to administer the fund.

3-4    3.  The interest and income earned on the money in the fund must, after

3-5  deducting any applicable charges, be credited to the fund. All claims

3-6  against the fund must be paid as other claims against the state are paid.

3-7    4.  [Not] The interim finance committee may allocate for expenditure

3-8  not more than [2] 5 percent of the money in the fund [may be used] , as

3-9  calculated pursuant to this subsection, each year to pay the costs [of

3-10  administering] incurred by the state treasurer to administer the fund[.]

3-11  and the costs incurred by the department including, without limitation,

3-12  the aging services division of the department, to carry out its duties set

3-13  forth in NRS 439.625 to 439.690, inclusive, and sections 2 and 3 of this

3-14  act. The amount of money available for allocation to pay for such costs

3-15  must be calculated at the beginning of each fiscal year based on the sum

3-16  of the unallocated portion of the balance of the fund, including, without

3-17  limitation, any interest and income earned on the money in the fund,

3-18  plus the total amount of money anticipated by the state treasurer to be

3-19  deposited in the fund during that fiscal year. Any money which is

3-20  allocated pursuant to this subsection or subsection 5 and which is not

3-21  expended by the end of the fiscal year for the purpose for which it was

3-22  allocated shall be deemed an unallocated portion of the balance of the

3-23  fund for the purpose of the calculation made pursuant to this subsection.

3-24    5.  After the amount of the administrative costs allocated pursuant to

3-25  subsection 4 has been subtracted from the amount of money in the fund

3-26  for a healthy Nevada and the amount of money which was allocated in

3-27  previous years pursuant to this subsection and which was not expended

3-28  has been subtracted from the amount of money in the fund, the state

3-29  treasurer shall allocate the remaining amount of money in the fund in

3-30  the following manner:

3-31    (a) Thirty percent to the aging services division of the department for

3-32  awarding grants pursuant to section 2 of this act;

3-33    (b) Thirty percent to the department for expenditure pursuant to

3-34  section 3 of this act;

3-35    (c) Twenty percent to the task force for the fund for a healthy Nevada

3-36  for allocation pursuant to paragraph (c) of subsection 1 of NRS 439.630;

3-37  and

3-38    (d) Twenty percent to the task force for the fund for a healthy Nevada

3-39  for allocation pursuant to paragraph (d) of subsection 1 of NRS 439.630.

3-40    6.  Any amount of money that is allocated pursuant to subsection 4 or

3-41  5 and that is not expended by the end of any fiscal year for the purpose

3-42  for which it was allocated must remain allocated to the same person,

3-43  division, department, or task force to which it was allocated for the same

3-44  purpose for which it was allocated and does not revert to the state general

3-45  fund at the end of any fiscal year.

3-46    7.  The money in the fund remains in the fund and does not revert to the

3-47  state general fund at the end of any fiscal year.

3-48    [6.] 8. All money that is deposited or paid into the fund is hereby

3-49  appropriated to the department [and, except as otherwise provided in

4-1  paragraphs (c) and (d) of subsection 1 of NRS 439.630,] and may only be

4-2  expended pursuant to an allocation made [by the task force for the fund for

4-3  a healthy Nevada.] pursuant to this section. Money expended from the

4-4  fund for a healthy Nevada must not be used to supplant existing methods of

4-5  funding that are available to public agencies.

4-6    Sec. 5.  NRS 439.630 is hereby amended to read as follows:

4-7    439.630  1.  The task force for the fund for a healthy Nevada shall:

4-8    (a) Conduct public hearings to accept public testimony from a wide

4-9  variety of sources and perspectives regarding existing or proposed

4-10  programs that:

4-11      (1) Promote public health;

4-12      (2) Improve health services for children, senior citizens and persons

4-13  with disabilities;

4-14      (3) Reduce or prevent the use of tobacco;

4-15      (4) Reduce or prevent the abuse of and addiction to alcohol and

4-16  drugs; and

4-17      (5) Offer other general or specific information on health care in this

4-18  state.

4-19    (b) Establish a process to evaluate the health and health needs of the

4-20  residents of this state and a system to rank the health problems of the

4-21  residents of this state, including, without limitation, the specific health

4-22  problems that are endemic to urban and rural communities.

4-23    (c) [Reserve not more than 30 percent of all revenues deposited in the

4-24  fund for a healthy Nevada each year for direct expenditure by the

4-25  department to pay for prescription drugs and pharmaceutical services for

4-26  senior citizens pursuant to NRS 439.635 to 439.690, inclusive. The

4-27  department shall submit a quarterly report to the governor and interim

4-28  finance committee regarding the general manner in which expenditures

4-29  have been made pursuant to this paragraph and the status of the program.

4-30    (d) Reserve not more than 30 percent of all revenues deposited in the

4-31  fund for a healthy Nevada each year for allocation by the aging services

4-32  division of the department in the form of grants for existing or new

4-33  programs that assist senior citizens with independent living, including,

4-34  without limitation, programs that provide:

4-35      (1) Respite care or relief of family caretakers;

4-36      (2) Transportation to new or existing services to assist senior citizens

4-37  in living independently; and

4-38      (3) Care in the home which allows senior citizens to remain at home

4-39  instead of in institutional care.

4-40    (e) Allocate] From the money allocated to the task force pursuant to

4-41  NRS 439.620, allocate for expenditure [not more than 20 percent of all

4-42  revenues deposited in the fund for a healthy Nevada each year] money for

4-43  programs that prevent, reduce or treat the use of tobacco and the

4-44  consequences of the use of tobacco.

4-45    [(f) Allocate]

4-46    (d) From the money allocated to the task force pursuant to NRS

4-47  439.620, allocate for expenditure [not more than 20 percent of all revenues

4-48  deposited in the fund each year for a healthy Nevada] money for programs

4-49  that improve health services for children and for persons with disabilities.

5-1    [(g)] (e) Maximize expenditures through local, federal and private

5-2  matching contributions.

5-3    [(h)] (f) Ensure that any money expended from the fund for a healthy

5-4  Nevada will not be used to supplant existing methods of funding that are

5-5  available to public agencies.

5-6    [(i)] (g) Develop policies and procedures for the administration and

5-7  distribution of grants and other expenditures to state agencies, political

5-8  subdivisions, nonprofit organizations, universities and community

5-9  colleges. A condition of any such grant must be that not more than 8

5-10  percent of the grant may be used for administrative expenses or other

5-11  indirect costs. The procedures must require at least one competitive round

5-12  of requests for proposals.

5-13    [(j)] (h) To make the allocations required by paragraphs [(e) and (f) of

5-14  subsection 1:] (c) and (d):

5-15      (1) Prioritize and quantify the needs for these programs;

5-16      (2) Develop, solicit and accept grant applications for allocations;

5-17      (3) Conduct annual evaluations of programs to which allocations

5-18  have been awarded; and

5-19      (4) Submit annual reports concerning the programs to the governor

5-20  and the interim finance committee.

5-21    [(k)] (i) Transmit a report of all findings, recommendations and

5-22  expenditures to the governor and each regular session of the legislature.

5-23    2.  The task force may take such other actions as are necessary to carry

5-24  out its duties.

5-25    3.  The department shall take all actions necessary to ensure that all

5-26  allocations for expenditures made by the task force are carried out as

5-27  directed by the task force.

5-28    4.  [To make the allocations required by paragraph (d) of subsection 1,

5-29  the aging services division of the department shall:

5-30    (a) Prioritize and quantify the needs of senior citizens for these

5-31  programs;

5-32    (b) Develop, solicit and accept grant applications for allocations;

5-33    (c) As appropriate, expand or augment existing state programs for

5-34  senior citizens upon approval of the interim finance committee;

5-35    (d) Award grants or other allocations;

5-36    (e) Conduct annual evaluations of programs to which grants or other

5-37  allocations have been awarded; and

5-38    (f) Submit annual reports concerning the grant program to the governor

5-39  and the interim finance committee.

5-40    5.  The aging services division of the department shall submit each

5-41  proposed grant which would be used to expand or augment an existing

5-42  state program to the interim finance committee for approval before the

5-43  grant is awarded. The request for approval must include a description of

5-44  the proposed use of the money and the person or entity that would be

5-45  authorized to expend the money.

5-46    6.] The department, on behalf of the task force, shall submit each

5-47  allocation proposed pursuant to paragraph [(e) or (f)] (c) or (d) of

5-48  subsection 1 which would be used to expand or augment an existing state

5-49  program to the interim finance committee for approval before the grant is

6-1  awarded. The request for approval must include a description of the

6-2  proposed use of the money and the person or entity that would be

6-3  authorized to expend the money.

6-4    Sec. 6.  NRS 439.635 is hereby amended to read as follows:

6-5    439.635  As used in NRS 439.635 to 439.690, inclusive, and section 3

6-6  of this act, unless the context otherwise requires, the words and terms

6-7  defined in NRS 439.640, 439.645 and 439.650 have the meanings ascribed

6-8  to them in those sections.

6-9    Sec. 7.  NRS 439.665 is hereby amended to read as follows:

6-10    439.665  1.  The department shall enter into contracts with private

6-11  insurers who transact health insurance in this state to arrange for the

6-12  availability, at a reasonable cost, of policies of health insurance that

6-13  provide coverage to senior citizens for prescription drugs and

6-14  pharmaceutical services. In arranging for the availability of such policies

6-15  of health insurance, the department:

6-16    (a) Shall arrange for the availability of a basic policy of health

6-17  insurance that provides such coverage; and

6-18    (b) May arrange for the availability of more than one type of policy of

6-19  health insurance that provides such coverage.

6-20    2.  Within the limits of the money available for this purpose in the fund

6-21  for a healthy Nevada, a senior citizen who is not eligible for Medicaid and

6-22  who purchases [a] any policy of health insurance that is made available

6-23  pursuant to subsection 1 is entitled to an annual grant from the trust fund to

6-24  subsidize all or a portion of the cost of that insurance if he has been

6-25  domiciled in this state for at least 1 year immediately preceding the date of

6-26  his application and , except as otherwise provided in subsection 5, his

6-27  household income is within one of the income ranges for which grants are

6-28  provided pursuant to this [subsection] section.

6-29    3.  A senior citizen described in subsection 2 who purchases the basic

6-30  policy of health insurance is entitled to an annual grant to the extent

6-31  determined by the percentage shown opposite his household income on the

6-32  following schedule:

 

6-33                                                          Percent of

6-34  Amount of HouseholdCost of Insurance Allowable

6-35  Income Is OverBut Not Over         as a Subsidy

6-36           $0    —     $12,700                [90] 100

6-37     12,700    —       14,800                  [80] 90

6-38     14,800    —       17,000                  [50] 80

6-39     17,000    —       19,100                  [25] 50

6-40     19,100    —       21,500                  [10] 25

 

6-41    [3.] 4.  The amount of any subsidy granted pursuant to this section

6-42  [must] :

6-43    (a) Must not exceed the annual cost of the basic policy of health

6-44  insurance that provides coverage for prescription drugs and pharmaceutical

6-45  services [or $480 per year, whichever is less.] ; and

7-1    (b) Must be calculated as if the senior citizen for whom the subsidy is

7-2  provided had purchased the basic policy of health insurance, regardless

7-3  of the type of policy that the senior citizen actually purchased.

7-4    5.  The department may waive the eligibility requirement set forth in

7-5  subsection 2 regarding household income upon written request of the

7-6  applicant if the circumstances of the applicant’s household have changed

7-7  as a result of:

7-8    (a) Illness;

7-9    (b) Disability; or

7-10    (c) Extreme financial hardship based on a significant reduction of

7-11  income, when considering the applicant’s current financial

7-12  circumstances.

7-13  An applicant who requests such a waiver shall include with that request

7-14  all medical and financial documents that support his request.

7-15    6.  If the Federal Government provides any coverage of prescription

7-16  drugs and pharmaceutical services for senior citizens who are eligible for

7-17  a subsidy pursuant to subsections 1 to 5, inclusive, the department may,

7-18  upon approval of the legislature or the interim finance committee if the

7-19  legislature is not in session, change any program established pursuant to

7-20  NRS 439.635 to 439.690, inclusive, and section 3 of this act, and

7-21  otherwise provide assistance with prescription drugs and pharmaceutical

7-22  services for senior citizens within the limits of the money available for

7-23  this purpose in the fund for a healthy Nevada.

7-24    7.  The provisions of subsections 1 to 5, inclusive, do not apply if the

7-25  department provides assistance with prescription drugs and

7-26  pharmaceutical services for senior citizens pursuant to subsection 6.

7-27    Sec. 8.  NRS 218.6827 is hereby amended to read as follows:

7-28    218.6827  1.  Except as otherwise provided in subsections 2 and 3, the

7-29  interim finance committee may exercise the powers conferred upon it by

7-30  law only when the legislature is not in regular or special session.

7-31    2.  During a regular session, the interim finance committee may also

7-32  perform the duties imposed on it by subsection 5 of NRS 284.115,

7-33  subsection 2 of NRS 321.335, NRS 322.007, subsection 2 of NRS 323.020,

7-34  NRS 323.050, subsection 1 of NRS 323.100, subsection 1 of NRS 341.145,

7-35  NRS 353.220, 353.224, 353.2705 to 353.2771, inclusive, and 353.335,

7-36  paragraph (b) of subsection 4 of NRS 407.0762, NRS 428.375, 439.620,

7-37  439.630, subsection 6 of NRS 445B.830 and NRS 538.650 and section 2

7-38  of this act. In performing those duties, the senate standing committee on

7-39  finance and the assembly standing committee on ways and means may

7-40  meet separately and transmit the results of their respective votes to the

7-41  chairman of the interim finance committee to determine the action of the

7-42  interim finance committee as a whole.

7-43    3.  During a regular or special session, the interim finance committee

7-44  may exercise the powers and duties conferred upon it pursuant to the

7-45  provisions of NRS 353.2705 to 353.2771, inclusive.

7-46    4.  If the interim finance committee determines that a fundamental

7-47  review of the base budget of a state agency is necessary, it shall, by

7-48  resolution, notify the legislative commission of that finding for assignment

8-1  of the review to a legislative committee for the fundamental review of the

8-2  base budgets of state agencies established pursuant to NRS 218.5382.

8-3    Sec. 9.  This act becomes effective on July 1, 2001.

 

8-4  H