(REPRINTED WITH ADOPTED AMENDMENTS)

 

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.

 

~

 

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; revising the procedures for allocating money in the fund; providing that a portion of the money in the fund may be used to pay certain administrative costs incurred by the state treasurer and the department of human resources; providing for the appointment and terms of office of certain officers of the task force for the fund; increasing the maximum allowable subsidies under the program of subsidies for the provision of prescription drugs and pharmaceutical services to senior citizens; 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 paragraph (a) of subsection 5 of NRS

1-5  439.620, the division shall, except as otherwise provided in subsection 3,

1-6  award grants for existing or new programs which assist senior citizens

1-7  with independent living, including, without limitation, programs which

1-8  provide:

1-9    (a) Respite care or relief for family caretakers;

1-10    (b) Transportation to new or existing services to assist senior citizens

1-11  in living independently; and

1-12    (c) Care in the home which allows senior citizens to remain at home

1-13  instead of in institutional care.

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

2-2  services division of the department shall, except as otherwise provided in

2-3  subsection 3:

2-4    (a) Prioritize and quantify the needs of senior citizens for the

2-5  programs;

2-6    (b) Develop, solicit and accept grant applications;

2-7    (c) As appropriate, expand or augment existing state programs for

2-8  senior citizens upon approval of the interim finance committee pursuant

2-9  to subsection 4;

2-10    (d) Award grants;

2-11  (e) Conduct annual evaluations of programs to which grants have

2-12  been awarded; and

2-13  (f) Submit annual reports concerning the grant program to the

2-14  governor and the interim finance committee.

2-15  3.  The aging services division of the department shall not expend or

2-16  transfer any money allocated to the aging services division pursuant to

2-17  paragraph (a) of subsection 5 of NRS 439.620 to subsidize any portion of

2-18  the cost of policies of health insurance that provide coverage to senior

2-19  citizens for prescription drugs and pharmaceutical services pursuant to

2-20  NRS 439.635 to 439.690, inclusive, and section 3 of this act.

2-21  4.  The aging services division of the department shall submit each

2-22  proposed grant that would be used to expand or augment an existing

2-23  state program to the interim finance committee for approval before the

2-24  grant is awarded. The request for approval must include a description of

2-25  the proposed use of the money and the person or entity that would be

2-26  authorized to expend the money.

2-27    5.  A condition of a grant that is awarded pursuant to this section

2-28  must be that not more than 8 percent of the grant may be used for

2-29  administrative expenses or other indirect costs.

2-30    Sec. 3. 1.  From the money allocated to the department pursuant to

2-31  paragraph (b) of subsection 5 of NRS 439.620, the department shall

2-32  subsidize all or a portion of the cost of policies of health insurance that

2-33  provide coverage to senior citizens for prescription drugs and

2-34  pharmaceutical services pursuant to this section and NRS 439.635 to

2-35  439.690, inclusive.

2-36    2.  The department shall submit a quarterly report to the governor

2-37  and the interim finance committee regarding the general manner in

2-38  which expenditures have been made pursuant to this section and

2-39  regarding the status of the program established pursuant to this section

2-40  and NRS 439.635 to 439.690, inclusive.

2-41    Sec. 4.  NRS 439.620 is hereby amended to read as follows:

2-42    439.620  1.  The fund for a healthy Nevada is hereby created in the

2-43  state treasury. The state treasurer shall deposit in the fund:

2-44    (a) Fifty percent of all money received by this state pursuant to any

2-45  settlement entered into by the State of Nevada and a manufacturer of

2-46  tobacco products; and

2-47    (b) Fifty percent of all money recovered by this state from a judgment

2-48  in a civil action against a manufacturer of tobacco products.

3-1    2.  The state treasurer shall administer the fund. As administrator of the

3-2  fund, the state treasurer:

3-3    (a) Shall maintain the financial records of the fund;

3-4    (b) Shall invest the money in the fund as the money in other state funds

3-5  is invested;

3-6    (c) Shall manage any account associated with the fund;

3-7    (d) Shall maintain any instruments that evidence investments made with

3-8  the money in the fund;

3-9    (e) Shall allocate the money in the fund pursuant to subsection 5;

3-10    (f) May contract with vendors for any good or service that is necessary

3-11  to carry out the provisions of this section; and

3-12    [(f)] (g) May perform any other duties necessary to administer the fund.

3-13  3.  The interest and income earned on the money in the fund must, after

3-14  deducting any applicable charges, be credited to the fund. All claims

3-15  against the fund must be paid as other claims against the state are paid.

3-16  4.  The interim finance committee may allocate for expenditure:

3-17  (a) Not more than 2 percent of the money in the fund [may be used] , as

3-18  calculated pursuant to this subsection, each year to pay the costs [of

3-19  administering] incurred by the state treasurer to administer the fund[.] ;

3-20  and

3-21  (b) Not more than 3 percent of the money in the fund, as calculated

3-22  pursuant to this subsection, each year to pay the costs incurred by the

3-23  department, including, without limitation, the aging services division of

3-24  the department, to carry out its duties set forth in NRS 439.625 to

3-25  439.690, inclusive, and sections 2 and 3 of this act.

3-26  The amount of money available for allocation to pay for such costs must

3-27  be calculated at the beginning of each fiscal year based on the sum of the

3-28  unallocated portion of the balance of the fund, including, without

3-29  limitation, any interest and income earned on the money in the fund,

3-30  plus the total amount of money anticipated by the state treasurer to be

3-31  deposited in the fund during that fiscal year. Any money which is

3-32  allocated pursuant to this subsection or subsection 5 and which is not

3-33  expended by the end of the fiscal year for the purpose for which it was

3-34  allocated shall be deemed an unallocated portion of the balance of the

3-35  fund for the purpose of the calculation made pursuant to this subsection.

3-36  5.  After the amount of the administrative costs allocated pursuant to

3-37  subsection 4 has been subtracted from the amount of money in the fund

3-38  for a healthy Nevada and the amount of money which was allocated in

3-39  previous years pursuant to this subsection and which was not expended

3-40  has been subtracted from the amount of money in the fund, the state

3-41  treasurer shall allocate the remaining amount of money in the fund in

3-42  the following manner:

3-43  (a) Thirty percent to the aging services division of the department for

3-44  awarding grants pursuant to section 2 of this act;

3-45  (b) Thirty percent to the department for expenditure pursuant to

3-46  section 3 of this act;

3-47  (c) Twenty percent to the task force for the fund for a healthy Nevada

3-48  for allocation pursuant to paragraph (c) of subsection 1 of NRS

3-49  439.630; and

4-1    (d) Twenty percent to the task force for the fund for a healthy Nevada

4-2  for allocation pursuant to paragraph (d) of subsection 1 of NRS 439.630.

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

4-4  5 and that is not expended by the end of any fiscal year for the purpose

4-5  for which it was allocated must remain allocated to the same person,

4-6  division, department, or task force to which it was allocated for the same

4-7  purpose for which it was allocated and does not revert to the state general

4-8  fund at the end of any fiscal year.

4-9    7.  The money in the fund remains in the fund and does not revert to the

4-10  state general fund at the end of any fiscal year.

4-11    [6.] 8. All money that is deposited or paid into the fund is hereby

4-12  appropriated to the department [and, except as otherwise provided in

4-13  paragraphs (c) and (d) of subsection 1 of NRS 439.630,] and may only be

4-14  expended pursuant to an allocation made [by the task force for the fund for

4-15  a healthy Nevada.] pursuant to this section. Money expended from the

4-16  fund for a healthy Nevada must not be used to supplant existing methods of

4-17  funding that are available to public agencies.

4-18  Sec. 5.  NRS 439.625 is hereby amended to read as follows:

4-19  439.625  1.  The task force for the fund for a healthy Nevada is hereby

4-20  created. The membership of the task force consists of:

4-21  (a) Three members appointed by the majority leader of the senate, one

4-22  of whom must be a senator and one of whom must be a member of a

4-23  nonprofit organization dedicated to health issues in this state; [and]

4-24  (b) Three members appointed by the speaker of the assembly, one of

4-25  whom must be an assemblyman and one of whom must be a member of a

4-26  nonprofit organization dedicated to health issues in this state; and

4-27  (c) Three members appointed by the governor, one of whom must have

4-28  experience with and knowledge of matters relating to

4-29  health care.

4-30  Each member appointed pursuant to this subsection must be a resident of

4-31  this state and must not be employed in the executive or judicial branch of

4-32  state government.

4-33  [2.] Each person who appoints members pursuant to this subsection [1]

4-34  shall ensure that insofar as practicable, the members whom he appoints

4-35  reflect the ethnic and geographical diversity of this state.

4-36  2.  At its first meeting on or after July 1 of each odd-numbered year,

4-37  the task force shall select the chairman and vice chairman of the task

4-38  force from among the legislative members of the task force. Each such

4-39  officer shall hold office for a term of 2 years or until his successor is

4-40  selected. The chairmanship of the task force must alternate each

4-41  biennium between the houses of the legislature.

4-42  3.  For each day or portion of a day during which a member of the task

4-43  force who is a legislator attends a meeting of the task force or is otherwise

4-44  engaged in the work of the task force, except during a regular or special

4-45  session of the legislature, he is entitled to receive the:

4-46  (a) Compensation provided for a majority of the members of the

4-47  legislature during the first 60 days of the preceding session;

4-48  (b) Per diem allowance provided for state officers and employees

4-49  generally; and

5-1    (c) Travel expenses provided pursuant to NRS 218.2207.

5-2  The compensation, per diem allowances and travel expenses of the

5-3  legislative members of the task force must be paid from the legislative

5-4  fund.

5-5    4.  Members of the task force who are not legislators serve without

5-6  salary, except that they are entitled to receive travel expenses provided for

5-7  state officers and employees generally. The travel expenses of:

5-8    (a) A member of the task force who is an officer or employee of a local

5-9  government thereof must be paid by the local government that employs

5-10  him.

5-11  (b) Each remaining member of the task force must be paid from the

5-12  legislative fund.

5-13  5.  Each member of the task force who is an officer or employee of a

5-14  local government must be relieved from his duties without loss of his

5-15  regular compensation so that he may perform his duties relating to the task

5-16  force in the most timely manner practicable. A local government shall not

5-17  require an officer or employee who is a member of the task force to:

5-18  (a) Make up the time he is absent from work to fulfill his obligations as

5-19  a member of the task force; or

5-20  (b) Take annual leave or compensatory time for the absence.

5-21  6.  The department shall provide such administrative support to the task

5-22  force as is required to carry out the duties of the task force. The state health

5-23  officer shall provide such technical advice and assistance to the task force

5-24  as is requested by the task force.

5-25    Sec. 6.  NRS 439.630 is hereby amended to read as follows:

5-26    439.630  1.  The task force for the fund for a healthy Nevada shall:

5-27    (a) Conduct public hearings to accept public testimony from a wide

5-28  variety of sources and perspectives regarding existing or proposed

5-29  programs that:

5-30      (1) Promote public health;

5-31      (2) Improve health services for children, senior citizens and persons

5-32  with disabilities;

5-33      (3) Reduce or prevent the use of tobacco;

5-34      (4) Reduce or prevent the abuse of and addiction to alcohol and

5-35  drugs; and

5-36      (5) Offer other general or specific information on health care in this

5-37  state.

5-38    (b) Establish a process to evaluate the health and health needs of the

5-39  residents of this state and a system to rank the health problems of the

5-40  residents of this state, including, without limitation, the specific health

5-41  problems that are endemic to urban and rural communities.

5-42    (c) [Reserve not more than 30 percent of all revenues deposited in the

5-43  fund for a healthy Nevada each year for direct expenditure by the

5-44  department to pay for prescription drugs and pharmaceutical services for

5-45  senior citizens pursuant to NRS 439.635 to 439.690, inclusive. The

5-46  department shall submit a quarterly report to the governor and interim

5-47  finance committee regarding the general manner in which expenditures

5-48  have been made pursuant to this paragraph and the status of the program.

6-1    (d) Reserve not more than 30 percent of all revenues deposited in the

6-2  fund for a healthy Nevada each year for allocation by the aging services

6-3  division of the department in the form of grants for existing or new

6-4  programs that assist senior citizens with independent living, including,

6-5  without limitation, programs that provide:

6-6       (1) Respite care or relief of family caretakers;

6-7       (2) Transportation to new or existing services to assist senior citizens

6-8  in living independently; and

6-9       (3) Care in the home which allows senior citizens to remain at home

6-10  instead of in institutional care.

6-11    (e) Allocate] From the money allocated to the task force pursuant to

6-12  paragraph (c) of subsection 5 of NRS 439.620, allocate for expenditure

6-13  [not more than 20 percent of all revenues deposited in the fund for a

6-14  healthy Nevada each year] money for programs that prevent, reduce or

6-15  treat the use of tobacco and the consequences of the use of tobacco.

6-16    [(f) Allocate]

6-17    (d) From the money allocated to the task force pursuant to paragraph

6-18  (d) of subsection 5 of NRS 439.620, allocate for expenditure [not more

6-19  than 20 percent of all revenues deposited in the fund each year for a

6-20  healthy Nevada] money for programs that improve health services for

6-21  children and for persons with disabilities.

6-22    [(g)] (e) Maximize expenditures through local, federal and private

6-23  matching contributions.

6-24    [(h)] (f) Ensure that any money expended from the fund for a healthy

6-25  Nevada will not be used to supplant existing methods of funding that are

6-26  available to public agencies.

6-27    [(i)] (g) Develop policies and procedures for the administration and

6-28  distribution of grants and other expenditures to state agencies, political

6-29  subdivisions, nonprofit organizations, universities and community

6-30  colleges. A condition of any such grant must be that not more than 8

6-31  percent of the grant may be used for administrative expenses or other

6-32  indirect costs. The procedures must require at least one competitive round

6-33  of requests for proposals.

6-34    [(j)] (h) To make the allocations required by paragraphs [(e) and (f) of

6-35  subsection 1:] (c) and (d):

6-36      (1) Prioritize and quantify the needs for these programs;

6-37      (2) Develop, solicit and accept grant applications for allocations;

6-38      (3) Conduct annual evaluations of programs to which allocations

6-39  have been awarded; and

6-40      (4) Submit annual reports concerning the programs to the governor

6-41  and the interim finance committee.

6-42    [(k)] (i) Transmit a report of all findings, recommendations and

6-43  expenditures to the governor and each regular session of the legislature.

6-44    2.  The task force may take such other actions as are necessary to carry

6-45  out its duties.

6-46    3.  The department shall take all actions necessary to ensure that all

6-47  allocations for expenditures made by the task force are carried out as

6-48  directed by the task force.

7-1    4.  [To make the allocations required by paragraph (d) of subsection 1,

7-2  the aging services division of the department shall:

7-3    (a) Prioritize and quantify the needs of senior citizens for these

7-4  programs;

7-5    (b) Develop, solicit and accept grant applications for allocations;

7-6    (c) As appropriate, expand or augment existing state programs for

7-7  senior citizens upon approval of the interim finance committee;

7-8    (d) Award grants or other allocations;

7-9    (e) Conduct annual evaluations of programs to which grants or other

7-10  allocations have been awarded; and

7-11    (f) Submit annual reports concerning the grant program to the governor

7-12  and the interim finance committee.

7-13    5.  The aging services division of the department shall submit each

7-14  proposed grant which would be used to expand or augment an existing

7-15  state program to the interim finance committee for approval before the

7-16  grant is awarded. The request for approval must include a description of

7-17  the proposed use of the money and the person or entity that would be

7-18  authorized to expend the money.

7-19    6.] The department, on behalf of the task force, shall submit each

7-20  allocation proposed pursuant to paragraph [(e) or (f)] (c) or (d) of

7-21  subsection 1 which would be used to expand or augment an existing state

7-22  program to the interim finance committee for approval before the grant is

7-23  awarded. The request for approval must include a description of the

7-24  proposed use of the money and the person or entity that would be

7-25  authorized to expend the money.

7-26    Sec. 7.  NRS 439.635 is hereby amended to read as follows:

7-27    439.635  As used in NRS 439.635 to 439.690, inclusive, and section 3

7-28  of this act, unless the context otherwise requires, the words and terms

7-29  defined in NRS 439.640, 439.645 and 439.650 have the meanings ascribed

7-30  to them in those sections.

7-31  Sec. 8.  NRS 439.665 is hereby amended to read as follows:

7-32  439.665  1.  The department shall enter into contracts with private

7-33  insurers who transact health insurance in this state to arrange for the

7-34  availability, at a reasonable cost, of policies of health insurance that

7-35  provide coverage to senior citizens for prescription drugs and

7-36  pharmaceutical services.

7-37  2.  Within the limits of the money available for this purpose in the fund

7-38  for a healthy Nevada, a senior citizen who is not eligible for Medicaid and

7-39  who purchases a policy of health insurance that is made available pursuant

7-40  to subsection 1 is entitled to an annual grant from the trust fund to

7-41  subsidize all or a portion of the cost of that insurance if he has been

7-42  domiciled in this state for at least 1 year immediately preceding the date of

7-43  his application and his household income is within one of the income

7-44  ranges for which grants are provided pursuant to this [subsection] section.

7-45  3.  A senior citizen described in subsection 2 who purchases a policy

7-46  of health insurance that is made available pursuant to subsection 1 is

7-47  entitled to an annual grant to the extent determined by the percentage

7-48  shown opposite his household income on the following schedule:

 

8-1                                                           Percent of

8-2    Amount of HouseholdCost of Insurance Allowable

8-3    Income Is Over  But Not Over       as a Subsidy

8-4               $0        —  [$12,700                    90

8-5        12,700       —]    14,800           [80] 100

8-6        14,800        —     17,000             [50] 80

8-7        17,000        —     19,100             [25] 50

8-8        19,100        —     21,500             [10] 25

 

8-9    [3.] 4.  The amount of any subsidy granted pursuant to this section

8-10  must not exceed the annual cost of insurance that provides coverage for

8-11  prescription drugs and pharmaceutical services . [or $480 per year,

8-12  whichever is less.]

8-13    Sec. 9.  NRS 218.6827 is hereby amended to read as follows:

8-14    218.6827  1.  Except as otherwise provided in subsections 2 and 3, the

8-15  interim finance committee may exercise the powers conferred upon it by

8-16  law only when the legislature is not in regular or special session.

8-17    2.  During a regular session, the interim finance committee may also

8-18  perform the duties imposed on it by subsection 5 of NRS 284.115,

8-19  subsection 2 of NRS 321.335, NRS 322.007, subsection 2 of NRS 323.020,

8-20  NRS 323.050, subsection 1 of NRS 323.100, subsection 1 of NRS 341.145,

8-21  NRS 353.220, 353.224, 353.2705 to 353.2771, inclusive, and 353.335,

8-22  paragraph (b) of subsection 4 of NRS 407.0762, NRS 428.375, 439.620,

8-23  439.630, subsection 6 of NRS 445B.830 and NRS 538.650 and section 2

8-24  of this act. In performing those duties, the senate standing committee on

8-25  finance and the assembly standing committee on ways and means may

8-26  meet separately and transmit the results of their respective votes to the

8-27  chairman of the interim finance committee to determine the action of the

8-28  interim finance committee as a whole.

8-29    3.  During a regular or special session, the interim finance committee

8-30  may exercise the powers and duties conferred upon it pursuant to the

8-31  provisions of NRS 353.2705 to 353.2771, inclusive.

8-32    4.  If the interim finance committee determines that a fundamental

8-33  review of the base budget of a state agency is necessary, it shall, by

8-34  resolution, notify the legislative commission of that finding for assignment

8-35  of the review to a legislative committee for the fundamental review of the

8-36  base budgets of state agencies established pursuant to NRS 218.5382.

8-37  Sec. 10.  1.  As soon as practicable after the effective date of this

8-38  section, the task force for the fund for a healthy Nevada shall select:

8-39  (a) The chairman of the task force from among the members of the task

8-40  force who are members of the senate; and

8-41  (b) The vice chairman of the task force from among the remaining

8-42  legislative members of the task force.

8-43  2.  Each officer selected pursuant to subsection 1 shall hold office for a

8-44  term of 2 years or until his successor is selected.

8-45    Sec. 11.  This act becomes effective on July 1, 2001.

 

8-46  H