Assembly Bill No. 249–Committee on
Government Affairs

 

(On Behalf of the Public Employees’ Benefits Program)

 

March 6, 2003

____________

 

Referred to Concurrent Committees on Government
Affairs and Ways and Means

 

SUMMARY—Makes various changes concerning Public Employees’ Benefits Program. (BDR 23‑549)

 

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 Public Employees’ Benefits Program; requiring certain agencies to use the amounts specified by the Public Employees’ Benefits Program for coverage by the Program for payroll deductions from the salaries of participating officers and employees; requiring the Public Employees’ Retirement System and each public employer that participates in the Program to provide information
to the Program concerning the change in status of an active or retired officer or employee; eliminating the requirement that certain retired persons show evidence of good health as a condition of enrollment in the Program; limiting the subsidy paid by the State of Nevada for retired state officers and employees to years of state service; repealing the prospective expiration of two positions on the Board of the Program; repealing the period of open enrollment for certain retired persons to join the Program; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

2-1  Section 1.  NRS 281.129 is hereby amended to read as follows:

2-2  281.129  1.  Any officer of the State, except the Legislative

2-3  Fiscal Officer, who disburses money in payment of salaries and

2-4  wages of officers and employees of the State [may,] :

2-5  (a) May, upon written requests of the officer or employee

2-6  specifying amounts, withhold those amounts and pay them to:

2-7  [1.] (1) Charitable organizations;

2-8  [2.] (2) Employee credit unions;

2-9  [3.  Insurers, if the Board of the Public Employees’ Benefits

2-10  Program has approved the request;

2-11      4.] (3) Except as otherwise provided in paragraph (b),

2-12  insurers;

2-13          (4) The United States for the purchase of savings bonds and

2-14  similar obligations of the United States; and

2-15      [5.] (5) Employee organizations and labor organizations.

2-16      (b) Shall, upon receipt of information from the Public

2-17  Employees’ Benefits Program specifying amounts of premiums or

2-18  contributions for coverage by the Program, withhold those

2-19  amounts from the salaries or wages of officers and employees who

2-20  participate in the Program and pay those amounts to the Program.

2-21      2.  The State Controller may adopt regulations necessary to

2-22  withhold money from the salaries or wages of officers and

2-23  employees of the executive department.

2-24      Sec. 2.  Chapter 286 of NRS is hereby amended by adding

2-25  thereto a new section to read as follows:

2-26      1.  The System shall provide to the Public Employees’ Benefits

2-27  Program:

2-28      (a) Written notice regarding a change in the status of a

2-29  member or a dependent of a member that affects the eligibility of

2-30  the member or dependent to participate in the Program. Such

2-31  notice must be provided to the Program, on a form prescribed by

2-32  the Program, within 15 calendar days after the System is notified

2-33  or otherwise becomes aware of the change in status.

2-34      (b) Upon request, any other information necessary for the

2-35  Program to carry out the provisions of NRS 287.0402 to 287.049,

2-36  inclusive.

2-37      2.  The System shall reimburse the Public Employees’

2-38  Benefits Program for any premium or contribution that was not

2-39  paid to the Program as a result of the failure of the System to

2-40  provide the notice required pursuant to subsection 1. The System

2-41  shall not require any member or dependent of a member to

2-42  reimburse the System for the amount of any premium or

2-43  contribution for which the System is liable to the Program

2-44  pursuant to this subsection.

 

3-1  Sec. 3.  NRS 286.615 is hereby amended to read as follows:

3-2  286.615  1.  In addition to the options provided in NRS

3-3  287.023 and subject to the requirements of that section, any officer

3-4  or employee of the governing body of any county, school district,

3-5  municipal corporation, political subdivision, public corporation or

3-6  other [public] local governmental agency of the State of Nevada,

3-7  who retires under the conditions set forth in NRS 1A.350, 1A.480,

3-8  286.510 or 286.620 and, at the time of his retirement, was covered

3-9  or had his dependents covered by any group insurance or medical

3-10  and hospital service established pursuant to NRS 287.010 [and

3-11  287.020,] , 287.020 or paragraph (b), (c) or (d) of subsection 1 of

3-12  NRS 287.025, has the option of having the Executive Officer deduct

3-13  and pay his premium or contribution for that [group insurance or

3-14  medical and hospital service] coverage, as well as the amount due or

3-15  to become due upon any obligation designated by the Board

3-16  pursuant to subsection 2, from his monthly retirement allowance

3-17  until:

3-18      (a) He notifies the Executive Officer to discontinue the

3-19  deduction; or

3-20      (b) Any of his dependents elect to assume the premium or

3-21  contribution applicable to the dependent’s coverage before the death

3-22  of such a retired person and continue coverage pursuant to NRS

3-23  287.023 after his death.

3-24      2.  The Board may adopt regulations to carry out the provisions

3-25  of subsection 1, including, but not limited to, regulations governing

3-26  the number and types of obligations, amounts for the payment of

3-27  which may be deducted and paid by the Board at the option of the

3-28  officer or employee pursuant to this section.

3-29      3.  The Executive Officer, Board and System are not liable for

3-30  any damages resulting from errors or omissions concerning the

3-31  deductions and payment of premiums or contributions authorized

3-32  pursuant to this section unless willful neglect or gross negligence is

3-33  proven.

3-34      Sec. 4.  Chapter 287 of NRS is hereby amended by adding

3-35  thereto the provisions set forth as sections 5, 6 and 7 of this act.

3-36      Sec. 5.  “Participating local governmental agency” means a

3-37  county, school district, municipal corporation, political

3-38  subdivision, public corporation or other local governmental

3-39  agency that has an agreement in effect with the Program pursuant

3-40  to paragraph (a) of subsection 1 of NRS 287.025 to obtain group

3-41  insurance from the Program.

3-42      Sec. 6.  “Participating public agency” means any

3-43  participating local governmental agency and participating state

3-44  agency.

4-1  Sec. 7.  “Participating state agency” means a department,

4-2  commission, board, bureau or other agency of the Executive,

4-3  Legislative and Judicial Branches of State Government, including,

4-4  without limitation, the Public Employees’ Retirement System and

4-5  the University and Community College System of Nevada.

4-6  Sec. 8.  NRS 287.010 is hereby amended to read as follows:

4-7  287.010  1.  The governing body of any county, school

4-8  district, municipal corporation, political subdivision, public

4-9  corporation or other [public] local governmental agency of the State

4-10  of Nevada may:

4-11      (a) Adopt and carry into effect a system of group life, accident

4-12  or health insurance, or any combination thereof, for the benefit of its

4-13  officers and employees, and the dependents of officers and

4-14  employees who elect to accept the insurance and who, where

4-15  necessary, have authorized the governing body to make deductions

4-16  from their compensation for the payment of premiums on the

4-17  insurance.

4-18      (b) Purchase group policies of life, accident or health insurance,

4-19  or any combination thereof, for the benefit of such officers and

4-20  employees, and the dependents of such officers and employees, as

4-21  have authorized the purchase, from insurance companies authorized

4-22  to transact the business of such insurance in the State of Nevada,

4-23  and, where necessary, deduct from the compensation of officers and

4-24  employees the premiums upon insurance and pay the deductions

4-25  upon the premiums.

4-26      (c) Provide group life, accident or health coverage through a

4-27  self-insurance reserve fund and, where necessary, deduct

4-28  contributions to the maintenance of the fund from the compensation

4-29  of officers and employees and pay the deductions into the fund. The

4-30  money accumulated for this purpose through deductions from the

4-31  compensation of officers and employees and contributions of

4-32  the governing body must be maintained as an internal service fund

4-33  as defined by NRS 354.543. The money must be deposited in a state

4-34  or national bank or credit union authorized to transact business in

4-35  the State of Nevada. Any independent administrator of a fund

4-36  created under this section is subject to the licensing requirements of

4-37  chapter 683A of NRS, and must be a resident of this state. Any

4-38  contract with an independent administrator must be approved by

4-39  the Commissioner of Insurance as to the reasonableness of

4-40  administrative charges in relation to contributions collected and

4-41  benefits provided. The provisions of NRS 689B.030 to 689B.050,

4-42  inclusive, and 689B.575 apply to coverage provided pursuant to this

4-43  paragraph, except that the provisions of NRS 689B.0359 do not

4-44  apply to such coverage.

5-1  (d) Defray part or all of the cost of maintenance of a self-

5-2  insurance fund or of the premiums upon insurance. The money for

5-3  contributions must be budgeted for in accordance with the laws

5-4  governing the county, school district, municipal corporation,

5-5  political subdivision, public corporation or other [public] local

5-6  governmental agency of the State of Nevada.

5-7  2.  If a school district offers group insurance to its officers and

5-8  employees pursuant to this section, members of the board of trustees

5-9  of the school district must not be excluded from participating in the

5-10  group insurance. If the amount of the deductions from compensation

5-11  required to pay for the group insurance exceeds the compensation to

5-12  which a trustee is entitled, the difference must be paid by the trustee.

5-13      Sec. 9.  NRS 287.020 is hereby amended to read as follows:

5-14      287.020  1.  The governing body of any county, school

5-15  district, municipal corporation, political subdivision, public

5-16  corporation or other [public] local governmental agency of the State

5-17  of Nevada may adopt and carry into effect a system of medical or

5-18  hospital service, or a combination thereof, through nonprofit

5-19  membership corporations defraying the cost of medical service or

5-20  hospital care, or both, open to participation by all licentiates of the

5-21  particular class , [(]whether doctors of medicine, doctors of

5-22  osteopathy or doctors of chiropractic , [)] offering services through

5-23  such a nonprofit membership corporation, for the benefit of such of

5-24  their officers and employees, and the dependents of such officers

5-25  and employees, as may elect to accept membership in such nonprofit

5-26  corporation and who have authorized the governing body to make

5-27  deductions from their compensation for the payment of membership

5-28  dues.

5-29      2.  A part, not to exceed 50 percent, of the cost of such

5-30  membership dues may be defrayed by such governing body by

5-31  contribution. The money for such contributions must be budgeted

5-32  for in accordance with the laws governing such county, school

5-33  district, municipal corporation, political subdivision, public

5-34  corporation or other [public] local governmental agency of the State

5-35  of Nevada.

5-36      3.  The power conferred in this section, with respect to the

5-37  rendition of medical or hospital service, or a combination thereof, is

5-38  coextensive with the power conferred in NRS 287.010 with respect

5-39  to insurance companies.

5-40      4.  If a school district offers coverage for medical service or

5-41  hospital care, or both, to its officers and employees pursuant to this

5-42  section, members of the board of trustees of the school district must

5-43  not be excluded from participating in the coverage. If the amount of

5-44  the deductions from compensation required to pay for the coverage

6-1  exceeds the compensation to which a trustee is entitled, the

6-2  difference must be paid by the trustee.

6-3  Sec. 10.  NRS 287.021 is hereby amended to read as follows:

6-4  287.021  1.  Except as otherwise provided in subsection 3, the

6-5  surviving spouse and any surviving child of a police officer or

6-6  fireman who was:

6-7  (a) Employed by a public agency that had established group

6-8  insurance or medical and hospital service pursuant to NRS 287.010,

6-9  287.020 or paragraph (b), (c) or (d) of subsection 1 of 287.025; and

6-10      (b) Killed in the line of duty,

6-11  may elect to accept or continue coverage under that group insurance

6-12  or medical and hospital service if the police officer or fireman was a

6-13  participant or would have been eligible to participate in the group

6-14  insurance or medical and hospital service on the date of the death of

6-15  the police officer or fireman. If the surviving spouse or child elects

6-16  to accept coverage under the group insurance or medical and

6-17  hospital service in which the police officer or fireman would have

6-18  been eligible to participate or to discontinue coverage under the

6-19  group insurance or medical and hospital service in which the police

6-20  officer or fireman was a participant, the spouse, child or legal

6-21  guardian of the child must notify in writing the public agency that

6-22  employed the police officer or fireman within 60 days after the date

6-23  of death of the police officer or fireman.

6-24      2.  The public agency that employed the police officer or

6-25  fireman shall pay the entire cost of the premiums or contributions

6-26  for the group insurance or medical and hospital service for the

6-27  surviving spouse or child who meets the requirements set forth in

6-28  subsection 1.

6-29      3.  A surviving spouse is eligible to receive coverage pursuant

6-30  to this section for the duration of the life of the surviving spouse. A

6-31  surviving child is eligible to receive coverage pursuant to this

6-32  section until the child reaches:

6-33      (a) The age of 18 years; or

6-34      (b) The age of 23 years, if the child is enrolled as a full-time

6-35  student in an accredited university, college or trade school.

6-36      4.  As used in this section “police officer” has the meaning

6-37  ascribed to it in NRS 617.135.

6-38      Sec. 11.  NRS 287.023 is hereby amended to read as follows:

6-39      287.023  1.  Whenever an officer or employee of the

6-40  governing body of any county, school district, municipal

6-41  corporation, political subdivision, public corporation or other

6-42  [public] local governmental agency of the State of Nevada retires

6-43  under the conditions set forth in NRS 1A.350 or 1A.480, or 286.510

6-44  or 286.620 and, at the time of his retirement, was covered or had his

6-45  dependents covered by any group insurance or medical and hospital

7-1  service established pursuant to NRS 287.010 [and 287.020,] ,

7-2  287.020 or paragraph (b), (c) or (d) of subsection 1 of NRS

7-3  287.025, the officer or employee has the option upon retirement to

7-4  cancel or continue any such group insurance or medical and hospital

7-5  service coverage or join the Public Employees’ Benefits Program to

7-6  the extent that such coverage is not provided to him or a dependent

7-7  by the Health Insurance for the Aged Act, 42 U.S.C. §§ 1395 et seq.

7-8  2.  A retired person who continues coverage under the Public

7-9  Employees’ Benefits Program shall assume the portion of the

7-10  premium or [membership] contribution costs for the coverage

7-11  continued which the governing body does not pay on behalf of

7-12  retired officers or employees. A person who joins the Public

7-13  Employees’ Benefits Program for the first time upon retirement

7-14  shall assume all costs for the coverage. A dependent of such a

7-15  retired person has the option, which may be exercised to the same

7-16  extent and in the same manner as the retired person, to cancel or

7-17  continue coverage in effect on the date the retired person dies. The

7-18  dependent is not required to continue to receive retirement payments

7-19  from the Public Employees’ Retirement System to continue

7-20  coverage.

7-21      3.  [Except as otherwise provided in NRS 287.0235, notice]

7-22  Notice of the selection of the option must be given in writing to the

7-23  last public employer of the officer or employee within 60 days after

7-24  the date of retirement or death, as the case may be. If no notice is

7-25  given by that date, the retired officer or employee and his

7-26  dependents shall be deemed to have selected the option to cancel the

7-27  coverage for the group insurance or medical and hospital service

7-28  established pursuant to NRS 287.010, 287.020 or paragraph (b),

7-29  (c) or (d) of subsection 1 of NRS 287.025 or not to join the Public

7-30  Employees’ Benefits Program, as the case may be.

7-31      4.  The governing body of any county, school district,

7-32  municipal corporation, political subdivision, public corporation or

7-33  other [public] local governmental agency of this state may pay the

7-34  cost, or any part of the cost, of group insurance and medical and

7-35  hospital service coverage provided pursuant to NRS 287.010,

7-36  287.020 or paragraph (b), (c) or (d) of subsection 1 of NRS

7-37  287.025 for persons eligible for that coverage pursuant to

7-38  subsection 1, but it must not pay a greater portion than it does for its

7-39  current officers and employees.

7-40      Sec. 12.  NRS 287.0235 is hereby amended to read as follows:

7-41      287.0235  1.  Notwithstanding the provisions of NRS 287.023

7-42  and 287.045, a person or the surviving spouse of a person who did

7-43  not, at the time of his retirement pursuant to the conditions set forth

7-44  in NRS 1A.350 or 1A.480, or 286.510 or 286.620, have the option

7-45  to participate in the Public Employees’ Benefits Program may join

8-1  the Public Employees’ Benefits Program, to the extent that such

8-2  coverage is not provided to him or a dependent by the Health

8-3  Insurance for the Aged Act, 42 U.S.C. §§ 1395 et seq., by:

8-4  (a) Providing the Public Employees’ Retirement Board with

8-5  written notice of his intention to enroll in the Public Employees’

8-6  Benefits Program during a period of open enrollment;

8-7  (b) [Showing evidence of his good health as a condition of

8-8  enrollment;

8-9  (c)] Accepting the current plan of insurance of the Public

8-10  Employees’ Benefits Program and any subsequent changes to the

8-11  plan; and

8-12      [(d)] (c) Paying any portion of the premiums or contributions for

8-13  the Program in the manner set forth in NRS 1A.470 or 286.615,

8-14  which are due after the date of enrollment.

8-15  The Public Employees’ Retirement Board shall, beginning on

8-16  September 1, 1997, have a biennial period of open enrollment

8-17  between September 1 of each odd-numbered year and January 31 of

8-18  each even-numbered year during which eligible retired persons may

8-19  join the Public Employees’ Benefits Program pursuant to this

8-20  section.

8-21      2.  The Public Employees’ Retirement Board shall, on or before

8-22  September 1, 1997, and every September 1 of each odd-numbered

8-23  year thereafter, notify eligible retired persons described in

8-24  subsection 1 of the period of open enrollment by:

8-25      (a) Mailing a notice regarding the period of open enrollment to

8-26  all retired persons who are, according to its records, eligible to join

8-27  the Public Employees’ Benefits Program;

8-28      (b) Posting a notice of the period of open enrollment at its

8-29  principal office and at least three other separate prominent places,

8-30  such as a library, community center or courthouse; and

8-31      (c) Publicizing the period of open enrollment in any other

8-32  manner reasonably calculated to inform additional eligible retired

8-33  persons.

8-34      3.  The Public Employees’ Retirement Board shall notify the

8-35  Board of the Public Employees’ Benefits Program of the enrollment

8-36  of any person on or before March 1 immediately following the

8-37  period of open enrollment. The Board of the Public Employees’

8-38  Benefits Program shall approve or disapprove the request for

8-39  enrollment within 90 days after receipt of the request. Enrollment

8-40  shall be deemed to occur on the day the request is approved.

8-41      4.  Enrollment in the Public Employees’ Benefits Program

8-42  pursuant to this section excludes claims for expenses for any

8-43  condition for which medical advice, treatment or consultation was

8-44  rendered within 12 months before enrollment unless[:

9-1  (a) The person has not received any medical advice, treatment or

9-2  consultation for a period of 6 consecutive months after enrollment;

9-3  or

9-4  (b) The] the insurance coverage has been in effect more than 12

9-5  consecutive months.

9-6  Sec. 13.  NRS 287.024 is hereby amended to read as follows:

9-7  287.024  1.  If a member of the board of trustees of a school

9-8  district who has served at least one full term of office does not seek

9-9  reelection or is defeated for reelection and, upon the expiration of

9-10  his term of office, was covered or had his dependents covered by

9-11  any group insurance or medical and hospital service established

9-12  pursuant to NRS 287.010 [and 287.020,] , 287.020 or paragraph

9-13  (b), (c) or (d) of subsection 1 of NRS 287.025, the board member

9-14  has the option upon the expiration of his term of office to cancel or

9-15  continue any such group insurance to the extent that such coverage

9-16  is not provided to him or a dependent by the Health Insurance for

9-17  the Aged Act, 42 U.S.C. §§ 1395 et seq. A board member who

9-18  continues coverage under the program of group insurance shall

9-19  assume all costs for the continued coverage. A dependent of such a

9-20  board member has the option, which may be exercised to the same

9-21  extent and in the same manner as the board member, to cancel or

9-22  continue coverage in effect on the date the board member dies.

9-23      2.  Notice of the selection of the option must be given in writing

9-24  to the board of trustees of the school district within 30 days after the

9-25  expiration of the board member’s term of office or the date of his

9-26  death, as the case may be. If no notice is given by that date, the

9-27  board member and his dependents shall be deemed to have selected

9-28  the option to cancel the coverage.

9-29      Sec. 14.  NRS 287.025 is hereby amended to read as follows:

9-30      287.025  1.  The governing body of any county, school

9-31  district, municipal corporation, political subdivision, public

9-32  corporation or other [public] local governmental agency of the State

9-33  of Nevada may, in addition to the other powers granted in NRS

9-34  287.010 and 287.020:

9-35      [1.] (a) Negotiate and contract with [any other such agency or

9-36  with] the Board of the Public Employees’ Benefits Program to

9-37  secure group insurance for its officers and employees and their

9-38  dependents by participation in [any group insurance plan established

9-39  or to be established or in] the Public Employees’ Benefits Program.

9-40  [Each such contract:

9-41      (a) Must be submitted to the Commissioner of Insurance not less

9-42  than 30 days before the date on which the contract is to become

9-43  effective for approval.

9-44      (b) Does not become effective unless approved by the

9-45  Commissioner.

10-1      (c) Shall be deemed to be approved if not disapproved by the

10-2  Commissioner of Insurance within 30 days after its submission.

10-3      2.] (b) Negotiate and contract with another county, school

10-4  district, municipal corporation, political subdivision, public

10-5  corporation or other local governmental agency of the State of

10-6  Nevada to secure group insurance for its officers and employees

10-7  and their dependents by participation in any group insurance plan

10-8  established or to be established by the other local governmental

10-9  agency.

10-10     (c) To secure group health, life or workers’ compensation

10-11  insurance for its officers and employees and their dependents,

10-12  participate as a member of a nonprofit cooperative association or

10-13  nonprofit corporation that has been established in this state to secure

10-14  such insurance for its members from an insurer licensed pursuant to

10-15  the provisions of title 57 of NRS.

10-16     [3.] (d) In addition to the provisions of [subsection 2,]

10-17  paragraph (c), participate as a member of a nonprofit cooperative

10-18  association or nonprofit corporation that has been established in this

10-19  state to:

10-20     [(a)] (1) Facilitate contractual arrangements for the provision of

10-21  medical services to its members’ officers and employees and their

10-22  dependents and for related administrative services.

10-23     [(b)] (2) Procure health-related information and disseminate that

10-24  information to its members’ officers and employees and their

10-25  dependents.

10-26     2.  Each contract negotiated pursuant to paragraph (a) or (b)

10-27  of subsection 1:

10-28     (a) Must be submitted to the Commissioner of Insurance for

10-29  approval not less than 30 days before the date on which the

10-30  contract is to become effective.

10-31     (b) Does not become effective unless approved by the

10-32  Commissioner of Insurance.

10-33     (c) Shall be deemed to be approved if not disapproved by

10-34  the Commissioner of Insurance within 30 days after its

10-35  submission.

10-36     Sec. 15.  NRS 287.030 is hereby amended to read as follows:

10-37     287.030  No provisions of law prohibiting, restricting or

10-38  limiting the assignment of or order for wages or salary shall be

10-39  deemed in any way to prohibit, restrict or limit the powers

10-40  enumerated in NRS 287.010 [and 287.020,] , 287.020 or 287.025

10-41  nor the right and power of officers or employees to authorize and

10-42  approve payment of premiums or contributions by wage and salary

10-43  deductions.

 

 

11-1      Sec. 16.  NRS 287.040 is hereby amended to read as follows:

11-2      287.040  The provisions of NRS 287.010 to 287.040, inclusive,

11-3  do not make it compulsory upon any governing body of any county,

11-4  school district, municipal corporation, political subdivision, public

11-5  corporation or other [public] local governmental agency of the State

11-6  of Nevada to, except as otherwise provided in NRS 287.021, make

11-7  any contributions for the payment of any premiums or other costs

11-8  for group insurance or medical or hospital services, or upon any

11-9  officer or employee of any county, school district, municipal

11-10  corporation, political subdivision, public corporation or other

11-11  [public agency] local governmental agency of this state to accept or

11-12  join any plan of group insurance or to assign his wages or salary [or

11-13  to authorize deductions from his wages or salary] in payment of

11-14  premiums or contributions therefor.

11-15     Sec. 17.  NRS 287.0402 is hereby amended to read as follows:

11-16     287.0402  As used in NRS 287.0402 to 287.049, inclusive, and

11-17  sections 5, 6 and 7 of this act, unless the context otherwise requires,

11-18  the words and terms defined in NRS 287.0404 and 287.0406 and

11-19  sections 5, 6 and 7 of this act have the meanings ascribed to them in

11-20  those sections.

11-21     Sec. 18.  NRS 287.043 is hereby amended to read as follows:

11-22     287.043  1.  The Board shall:

11-23     (a) Establish and carry out a program to be known as the Public

11-24  Employees’ Benefits Program which:

11-25         (1) Must include a program relating to group life, accident or

11-26  health insurance, or any combination of these; and

11-27         (2) May include a program to reduce taxable compensation

11-28  or other forms of compensation other than deferred

11-29  compensation,

11-30  for the benefit of all state officers and employees and other persons

11-31  who participate in the Program.

11-32     (b) Ensure that the Program is funded on an actuarially sound

11-33  basis and operated in accordance with sound insurance and business

11-34  practices.

11-35     2.  In establishing and carrying out the Program, the Board

11-36  shall:

11-37     (a) For the purpose of establishing actuarial data to determine

11-38  rates and coverage for active and retired state officers and

11-39  employees and their dependents, commingle the claims experience

11-40  of such active and retired officers and employees and their

11-41  dependents.

11-42     (b) Except as otherwise provided in this paragraph, negotiate

11-43  and contract pursuant to paragraph (a) of subsection 1 of NRS

11-44  287.025 with the governing body of any [public agency enumerated

11-45  in NRS 287.010] county, school district, municipal corporation,

12-1  political subdivision, public corporation or other local

12-2  governmental agency of the State of Nevada that wishes to obtain

12-3  group insurance for its active and retired officers[, employees and

12-4  retired] and employees and their dependents by participation in the

12-5  Program. The Board shall establish separate rates and coverage for

12-6  those active and retired officers[, employees and retired] and

12-7  employees and their dependents based on actuarial reports.

12-8      (c) Except as otherwise provided in paragraph (d), provide

12-9  public notice in writing of any proposed changes in rates or

12-10  coverage to each participating public [employer who] agency that

12-11  may be affected by the changes. Notice must be provided at least 30

12-12  days before the effective date of the changes.

12-13     (d) If a proposed change is a change in the premium or

12-14  contribution charged for , or coverage of , health insurance, provide

12-15  written notice of the proposed change to all [state officers,

12-16  employees, retired employees and other persons who participate in

12-17  the Program who may be affected by the proposed change.]

12-18  participating active and retired public officers and employees. The

12-19  notice must be provided at least 60 days before the date [a state

12-20  officer, employee, retired employee or other person] on which a

12-21  participating active or retired public officer or employee is required

12-22  to select or change his policy of health insurance.

12-23     (e) Purchase policies of life, accident or health insurance, or any

12-24  combination of these, or, if applicable, a program to reduce the

12-25  amount of taxable compensation pursuant to 26 U.S.C. § 125, from

12-26  any company qualified to do business in this state or provide similar

12-27  coverage through a plan of self-insurance established pursuant to

12-28  NRS 287.0433 for the benefit of all eligible active and retired

12-29  public officers[, employees and retired] and employees who

12-30  participate in the Program.

12-31     (f) Except as otherwise provided in this title, develop and

12-32  establish other employee benefits as necessary.

12-33     (g) Investigate and approve or disapprove any contract proposed

12-34  pursuant to NRS 287.0479.

12-35     (h) Adopt such regulations and perform such other duties as are

12-36  necessary to carry out the provisions of NRS 287.0402 to 287.049,

12-37  inclusive, and sections 5, 6 and 7 of this act, including, without

12-38  limitation, the establishment of:

12-39         (1) Fees for applications for participation in the Program and

12-40  for the late payment of premiums or contributions;

12-41         (2) Conditions for entry and reentry into the Program by

12-42  [public agencies enumerated in NRS 287.010;] local governmental

12-43  agencies that wish to enter or reenter the Program pursuant to

12-44  paragraph (a) of subsection 1 of NRS 287.025;

13-1          (3) The levels of participation in the Program required for

13-2  officers and employees of participating public agencies;

13-3          (4) Procedures by which a group of participants in the

13-4  Program may leave the Program pursuant to NRS 287.0479 and

13-5  conditions and procedures for reentry into the Program by those

13-6  participants; and

13-7          (5) Specific procedures for the determination of contested

13-8  claims.

13-9      (i) Appoint an independent certified public accountant. The

13-10  accountant shall:

13-11         (1) Provide an annual audit of the Program; and

13-12         (2) Report to the Board and the Interim Retirement and

13-13  Benefits Committee of the Legislature created pursuant to

13-14  NRS 218.5373.

13-15     (j) Appoint an attorney who specializes in employee benefits.

13-16  The attorney shall:

13-17         (1) Perform a biennial review of the Program to determine

13-18  whether the Program complies with federal and state laws relating to

13-19  taxes and employee benefits; and

13-20         (2) Report to the Board and the Interim Retirement and

13-21  Benefits Committee of the Legislature created pursuant to

13-22  NRS 218.5373.

13-23     3.  The Board shall submit an annual report regarding the

13-24  administration and operation of the Program to the Director of

13-25  the Legislative Counsel Bureau not more than 6 months before the

13-26  Board establishes rates and coverage for members for the following

13-27  [calendar] plan year. The report must include, without limitation:

13-28     (a) The amount paid by the Program in the preceding [calendar]

13-29  plan year for the claims of active and retired state officers and

13-30  employees[;] who participated in the Program; and

13-31     (b) The amount paid by the Program in the preceding [calendar]

13-32  plan year for the claims of retired members of the Program who

13-33  were provided coverage for medical or hospital service, or both, by

13-34  the Health Insurance for the Aged Act, 42 U.S.C. §§ 1395 et seq., or

13-35  a plan that provides similar coverage.

13-36     4.  The Board may use any services provided to state agencies

13-37  and shall use the services of the Purchasing Division of the

13-38  Department of Administration to establish and carry out the

13-39  Program.

13-40     5.  The Board may make recommendations to the Legislature

13-41  concerning legislation that it deems necessary and appropriate

13-42  regarding the Program.

13-43     6.  [The State and any other public employers that participate in

13-44  the Program are] A participating public agency is not liable for any

13-45  obligation of the Program other than indemnification of the Board

14-1  and its employees against liability relating to the administration of

14-2  the Program, subject to the limitations specified in NRS 41.0349.

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

14-4  form of compensation provided to a public employee except federal

14-5  benefits, wages earned, legal holidays, deferred compensation and

14-6  benefits available pursuant to chapter 286 of NRS.

14-7      Sec. 19.  NRS 287.0434 is hereby amended to read as follows:

14-8      287.0434  The Board may:

14-9      1.  Use its assets to pay the expenses of health care for its

14-10  members and covered dependents, to pay its employees’ salaries and

14-11  to pay administrative and other expenses.

14-12     2.  Enter into contracts relating to the administration of the

14-13  Program, including, without limitation, contracts with licensed

14-14  administrators and qualified actuaries. Each such contract with a

14-15  licensed administrator:

14-16     (a) Must be submitted to the Commissioner of Insurance not less

14-17  than 30 days before the date on which the contract is to become

14-18  effective for approval as to the reasonableness of administrative

14-19  charges in relation to contributions collected and benefits provided.

14-20     (b) Does not become effective unless approved by the

14-21  Commissioner.

14-22     (c) Shall be deemed to be approved if not disapproved by the

14-23  Commissioner [of Insurance] within 30 days after its submission.

14-24     3.  Enter into contracts with physicians, surgeons, hospitals,

14-25  health maintenance organizations and rehabilitative facilities for

14-26  medical, surgical and rehabilitative care and the evaluation,

14-27  treatment and nursing care of members and covered dependents.

14-28  The Board shall not enter into a contract pursuant to this subsection

14-29  unless:

14-30     (a) Provision is made by the Board to offer all the services

14-31  specified in the request for proposals, either by a health maintenance

14-32  organization or through separate action of the Board.

14-33     (b) The rates set forth in the contract are based on the

14-34  commingled claims experience of active and retired state officers

14-35  and employees and their dependents.

14-36     4.  Enter into contracts for the services of other experts and

14-37  specialists as required by the Program.

14-38     5.  Charge and collect from an insurer, health maintenance

14-39  organization, organization for dental care or nonprofit medical

14-40  service corporation, a fee for the actual expenses incurred by the

14-41  Board[, the State] or a participating public [employer] agency in

14-42  administering a plan of insurance offered by that insurer,

14-43  organization or corporation.

 

 

15-1      Sec. 20.  NRS 287.0439 is hereby amended to read as follows:

15-2      287.0439  1.  A participating public [employer shall, on

15-3  request,] agency shall furnish to the Board [any] :

15-4      (a) Written notice regarding a change in the status of an

15-5  employee of the participating public agency or a dependent of

15-6  such an employee that affects the eligibility of the employee or

15-7  dependent to participate in the Program. Such notice must be

15-8  provided to the Program, on a form prescribed by the Program,

15-9  within 15 calendar days after the participating public agency is

15-10  notified or otherwise becomes aware of the change in status.

15-11     (b) Upon request, any other information necessary to carry out

15-12  the provisions of this chapter.

15-13     2.  Members of the Board and its employees or agents may

15-14  examine under oath any officer, agent or employee of a participating

15-15  public [employer] agency concerning the information[.

15-16     2.] required pursuant to this section.

15-17     3. The books, records and payrolls of a participating public

15-18  [employer] agency must be available for inspection by members of

15-19  the Board and its employees and agents to obtain any information

15-20  necessary for the administration of the Program, including, without

15-21  limitation, the accuracy of the payroll and identity of employees.

15-22     4.  A participating public agency shall reimburse the Program

15-23  for any premium or contribution that was not paid to the Program

15-24  as a result of the failure of the participating public agency to

15-25  furnish the notice required pursuant to paragraph (a) of

15-26  subsection 1. The participating public agency shall not require any

15-27  employee or his dependent to reimburse the participating public

15-28  agency for the amount of any premium or contribution for which

15-29  the participating public agency is liable to the Program pursuant

15-30  to this subsection.

15-31     Sec. 21.  NRS 287.044 is hereby amended to read as follows:

15-32     287.044  1.  A part of the cost of the premiums or

15-33  contributions for [that] group insurance[,] provided by the

15-34  Program, not to exceed the amount specified by law, applied to both

15-35  group life and group accident or health coverage, for each [public]

15-36  state officer, except a Senator or Assemblyman, or employee

15-37  electing to participate in the Program, may be paid by the

15-38  [department, agency, commission or public] participating state

15-39  agency which employs the officer or employee in whose behalf that

15-40  part is paid from money appropriated to or authorized for that

15-41  [department, agency, commission or public] participating state

15-42  agency for that purpose. Participation by the State in the cost of

15-43  premiums or contributions must not exceed the amounts specified

15-44  by law. If [an] a state officer or employee chooses to cover his

15-45  dependents, whenever this option is made available by the Board,

16-1  except as otherwise provided in NRS 287.021 and 287.0477, he

16-2  must pay the difference between the amount of the premium or

16-3  contribution for the coverage for himself and his dependents and the

16-4  amount paid by the [State.] participating state agency that employs

16-5  the officer or employee.

16-6      2.  A [department, agency, commission or public] participating

16-7  state agency shall not pay any part of those premiums or

16-8  contributions if the group life insurance or group accident or health

16-9  insurance is not approved by the Board.

16-10     Sec. 22.  NRS 287.0445 is hereby amended to read as follows:

16-11     287.0445  The [department, agency, commission or public]

16-12  participating state agency which employed [an] a state officer or

16-13  employee who:

16-14     1.  Was injured in the course of that employment;

16-15     2.  Receives compensation for a temporary total disability

16-16  pursuant to NRS 616C.475; and

16-17     3.  Was a member of the Program at the time of the

16-18  injury,

16-19  shall pay the State’s share of the cost of the premiums or

16-20  contributions for the Program for that officer or employee for not

16-21  more than 9 months after the injury or until the officer or employee

16-22  is able to return to work, whichever is less. If the previous injury

16-23  recurs within 1 month after the employee returns to work and the

16-24  employee again receives compensation pursuant to NRS 616C.475

16-25  as a result of the previous injury, the [department, agency,

16-26  commission or public] participating state agency shall not, except

16-27  as otherwise provided in this subsection, pay the state’s share of the

16-28  cost of the premiums or contributions for the period during which

16-29  the employee is unable to work as a result of the recurring previous

16-30  injury. If the initial period of disability was less than 9 months, the

16-31  [department, agency, commission or public] participating state

16-32  agency shall pay, during the recurrence, the State’s share of the

16-33  costs of the premiums or contributions for a period which, when

16-34  added to the initial period, equals not more than 9 months.

16-35     Sec. 23.  NRS 287.045 is hereby amended to read as follows:

16-36     287.045  1.  Except as otherwise provided in this section,

16-37  every state officer or employee [of the State] is eligible to

16-38  participate in the Program on the first day of the month following

16-39  the completion of 90 days of full-time employment.

16-40     2.  Professional employees of the University and Community

16-41  College System of Nevada who have annual employment contracts

16-42  are eligible to participate in the Program on:

16-43     (a) The effective dates of their respective employment contracts,

16-44  if those dates are on the first day of a month; or

17-1      (b) The first day of the month following the effective dates of

17-2  their respective employment contracts, if those dates are not on the

17-3  first day of a month.

17-4      3.  Every officer or employee who is employed by a

17-5  participating [public] local governmental agency on a permanent

17-6  and full-time basis on the date on which the participating local

17-7  governmental agency enters into an agreement to participate in the

17-8  Program[,] pursuant to paragraph (a) of subsection 1 of NRS

17-9  287.025, and every officer or employee who commences his

17-10  employment with that participating local governmental agency

17-11  after that date is eligible to participate in the Program on the first

17-12  day of the month following the completion of 90 days of full-time

17-13  employment.

17-14     4.  Every Senator and Assemblyman is eligible to participate in

17-15  the Program on the first day of the month following the 90th day

17-16  after his initial term of office begins.

17-17     5.  An officer or employee of the governing body of any

17-18  county, school district, municipal corporation, political subdivision,

17-19  public corporation or other [public] local governmental agency of

17-20  the State of Nevada who retires under the conditions set forth in

17-21  NRS 1A.350 or 1A.480, or 286.510 or 286.620 and was not

17-22  participating in the Program at the time of his retirement is eligible

17-23  to participate in the Program 60 days after notice of the selection to

17-24  participate is given pursuant to NRS 287.023 . [or 287.0235.] The

17-25  Board shall make a separate accounting for these retired persons.

17-26  For the first year following enrollment, the rates charged must be

17-27  the full actuarial costs determined by the actuary based upon the

17-28  expected claims experience with these retired persons. The claims

17-29  experience of these retired persons must not be commingled with

17-30  the retired persons who [were members of] participated in the

17-31  Program before their retirement, nor with active state officers and

17-32  employees [of the State.] who participate in the Program. After the

17-33  first year following enrollment, the rates charged must be the full

17-34  actuarial costs determined by the actuary based upon the past claims

17-35  experience of these retired persons since enrolling.

17-36     6.  Notwithstanding the provisions of subsections 1, 3 and 4, if

17-37  the Board does not, pursuant to NRS 689B.580, elect to exclude the

17-38  Program from compliance with NRS 689B.340 to 689B.590,

17-39  inclusive, and if the coverage under the Program is provided by a

17-40  health maintenance organization authorized to transact insurance in

17-41  this state pursuant to chapter 695C of NRS, any affiliation period

17-42  imposed by the Program may not exceed the statutory limit for an

17-43  affiliation period set forth in NRS 689B.500.

 

 

18-1      Sec. 24.  NRS 287.046 is hereby amended to read as follows:

18-2      287.046  1.  Except as otherwise provided in subsection 6, any

18-3  active state [or other participating] officer or employee who elects to

18-4  participate in the Program may participate, and the [department,

18-5  agency, commission or public] participating state agency that

18-6  employs the officer or employee shall pay the State’s share of the

18-7  cost of the premiums or contributions for the program from money

18-8  appropriated or authorized as provided in NRS 287.044.

18-9  [Employees] State officers and employees who elect to participate

18-10  in the Program must authorize deductions from their compensation

18-11  for the payment of premiums or contributions for the Program. Any

18-12  deduction from the compensation of [an] a state officer or employee

18-13  for the payment of a premium or contribution for health insurance

18-14  must be based on the actual cost of providing that health insurance

18-15  after deducting any amount of the premium or contribution which is

18-16  paid by the [department, agency, commission or public]

18-17  participating state agency that employs the employee. As used in

18-18  this subsection, “actual cost” includes any amount which has been

18-19  approved by the Board and which is paid by any [department,

18-20  agency, commission or public agency of this state] participating

18-21  state agency for:

18-22     (a) A program of supplemental insurance;

18-23     (b) Subsidization of premiums or contributions for health

18-24  insurance for dependents and retired participants;

18-25     (c) Administrative costs relating to the provision of the health

18-26  insurance; and

18-27     (d) Costs required to maintain adequate reserves.

18-28     2.  The Department of Personnel shall pay a percentage of the

18-29  base amount provided by law for that fiscal year toward the cost of

18-30  the premiums or contributions for the Program for persons retired

18-31  from [the service of the State who have continued] state service who

18-32  elect to participate in the Program. Except as otherwise provided in

18-33  subsection 3, the percentage to be paid must be calculated as

18-34  follows:

18-35     (a) For those persons who retire before January 1, 1994, 100

18-36  percent of the base amount provided by law for that fiscal year.

18-37     (b) For those persons who retire on or after January 1, 1994,

18-38  with at least 5 years of state service, 25 percent plus an additional

18-39  7.5 percent for each year of state service in excess of 5 years to a

18-40  maximum of 137.5 percent, excluding service purchased pursuant to

18-41  NRS 1A.310 or 286.300, of the base amount provided by law for

18-42  that fiscal year.

18-43     3.  If the amount calculated pursuant to subsection 2 exceeds

18-44  the actual premium or contribution for the plan of the Program that

18-45  the retired participant selects, the balance must be credited to the

19-1  Fund for the Public Employees’ Benefits Program created pursuant

19-2  to NRS 287.0435.

19-3      4.  For the purposes of subsection 2:

19-4      (a) Credit for service must be calculated in the manner provided

19-5  by chapter 286 of NRS.

19-6      (b) No proration may be made for a partial year of state service.

19-7      5.  The Department shall agree through the Board with the

19-8  insurer for billing of remaining premiums or contributions for the

19-9  retired participant and his dependents to the retired participant and

19-10  to his dependents who elect to continue coverage under the Program

19-11  after his death.

19-12     6.  A Senator or Assemblyman who elects to participate in the

19-13  Program shall pay the entire premium or contribution for his

19-14  insurance.

19-15     Sec. 25.  NRS 287.047 is hereby amended to read as follows:

19-16     287.047  If the retention is consistent with the terms of any

19-17  agreement between the State and the insurance company which

19-18  issued the policies pursuant to the Program or with the plan of

19-19  self-insurance of the Program:

19-20     1.  A participating state officer or employee who retires on or

19-21  after July 1, 1985, may retain his membership in and his

19-22  dependents’ coverage by the Program.

19-23     2.  A participating Legislator who retires from the service of the

19-24  State or who completes 8 years of service as such may retain his

19-25  membership in and his dependents’ coverage by the Program.

19-26     Sec. 26.  NRS 287.0475 is hereby amended to read as follows:

19-27     287.0475  1.  A public officer or employee who has retired

19-28  pursuant to NRS 1A.350 or 1A.480, or 286.510 or 286.620, or a

19-29  retirement program provided pursuant to NRS 286.802, or the

19-30  surviving spouse of such a retired public officer or employee who is

19-31  deceased may, in any even-numbered year, reinstate any insurance,

19-32  except life insurance, which was provided to him and his dependents

19-33  at the time of his retirement pursuant to NRS 287.010 , [or] 287.020

19-34  or 287.025 or the program as a public officer or employee by:

19-35     (a) Giving written notice of his intent to reinstate the insurance

19-36  to the [employee’s] last public employer of the public officer or

19-37  employee not later than January 31, of an even-numbered year;

19-38     (b) Accepting the public employer’s current program or plan of

19-39  insurance and any subsequent changes thereto; and

19-40     (c) Paying any portion of the premiums or contributions of the

19-41  public employer’s program or plan of insurance, in the manner set

19-42  forth in NRS 1A.470 or 286.615, which are due from the date of

19-43  reinstatement and not paid by the public employer.

19-44  The last public employer shall give the insurer notice of the

19-45  reinstatement no later than March 31[,] of the year in which the

20-1  public officer or employee or surviving spouse gives notice of his

20-2  intent to reinstate the insurance. The insurer shall approve or

20-3  disapprove the request for reinstatement within 90 days after the

20-4  date of the request.

20-5      2.  Reinstatement of insurance excludes claims for expenses for

20-6  any condition for which medical advice, treatment or consultation

20-7  was rendered within [6] 12 months before reinstatement unless[:

20-8      (a) The person has not received any medical advice, treatment or

20-9  consultation for a period of 6 consecutive months after the

20-10  reinstatement; or

20-11     (b) The] the reinstated insurance has been in effect more than 12

20-12  consecutive months.

20-13     Sec. 27.  NRS 287.0479 is hereby amended to read as follows:

20-14     287.0479  1.  If approved by the Board pursuant to this

20-15  section, a group of not less than 300 active state officers[,] or

20-16  employees or retired state officers or employees, or any

20-17  combination thereof, that participate in the Program may leave the

20-18  Program and secure life, accident or health insurance, or any

20-19  combination thereof, for the group from an:

20-20     (a) Insurer that is authorized by the Commissioner of Insurance

20-21  to provide such insurance; or

20-22     (b) Employee benefit plan, as defined in 29 U.S.C. § 1002(3),

20-23  that has been approved by the Board. The Board may approve an

20-24  employee benefit plan unless the Board finds that the plan is not

20-25  operated pursuant to such sound accounting and financial

20-26  management practices as to ensure that the group will continue to

20-27  receive adequate benefits.

20-28     2.  Before entering into a contract with the insurer or approved

20-29  employee benefit plan, the group shall submit the proposed contract

20-30  to the Board for approval. The Board may approve the contract

20-31  unless the departure of the group from the Program would cause an

20-32  increase of more than 5 percent in the costs of premiums or

20-33  contributions for the remaining participants in the Program. In

20-34  determining whether to approve a proposed contract, the Board shall

20-35  follow the criteria set forth in the regulations adopted by the Board

20-36  pursuant to subsection 4 and may consider the cumulative impact of

20-37  groups that have left or are proposing to leave the Program. Except

20-38  as otherwise provided in this section, the Board has discretion in

20-39  determining whether to approve a contract. If the Board approves a

20-40  proposed contract pursuant to this subsection, the group that

20-41  submitted the proposed contract is not authorized to leave the

20-42  Program until 120 days after the date on which the Board approves

20-43  the proposed contract.

20-44     3.  The Board shall disburse periodically to the insurer or

20-45  employee benefit plan with which a group contracts pursuant to this

21-1  section the total amount set forth in the contract for premiums or

21-2  contributions for the members of the group for that period but not to

21-3  exceed the amount appropriated to or authorized for the

21-4  [department, agency, commission or public] participating state

21-5  agency that employs the members of the group for premiums or

21-6  contributions for the members of the group for that period, after

21-7  deducting any administrative costs related to the group.

21-8      4.  The Board shall adopt regulations establishing the criteria

21-9  pursuant to which the Board will approve proposed contracts

21-10  pursuant to subsection 2.

21-11     Sec. 28.  NRS 287.048 is hereby amended to read as follows:

21-12     287.048  NRS 287.0402 to 287.047, inclusive, do not require

21-13  any officer or employee of the State of Nevada to accept or join the

21-14  Program, or to assign his wages or salary [to or authorize deductions

21-15  from his wages or salary] in payment of premiums or contributions

21-16  for the Program.

21-17     Sec. 29.  NRS 1A.470 is hereby amended to read as follows:

21-18     1A.470  1.  In addition to the options provided in NRS

21-19  287.023 and subject to the requirements of that section, any justice

21-20  of the Supreme Court or district judge who retires under the

21-21  conditions set forth in NRS 1A.350 and, at the time of his

21-22  retirement, was covered or had his dependents covered by any group

21-23  insurance or medical and hospital service established pursuant to

21-24  NRS 287.010 [and 287.020,] , 287.020 or paragraph (b), (c) or (d)

21-25  of subsection 1 of NRS 287.025, has the option of having the

21-26  Executive Officer of the Board deduct and pay his premium or

21-27  contribution for that group insurance or medical and hospital service

21-28  coverage, as well as the amount due or to become due upon any

21-29  obligation designated by the Board pursuant to subsection 2, from

21-30  his monthly retirement allowance until:

21-31     (a) He notifies the Executive Officer of the Board to discontinue

21-32  the deduction; or

21-33     (b) Any of his dependents elect to assume the premium or

21-34  contribution applicable to the dependent’s coverage before the death

21-35  of such a retired justice or judge and continue coverage pursuant to

21-36  NRS 287.023 after his death.

21-37     2.  The Board may adopt regulations to carry out the provisions

21-38  of subsection 1, including, without limitation, regulations governing

21-39  the number and types of obligations, amounts for the payment of

21-40  which may be deducted and paid by the Board at the option of the

21-41  retired justice or judge pursuant to this section.

21-42     3.  The Executive Officer of the Board, the Board and the

21-43  System are not liable for any damages resulting from errors or

21-44  omissions concerning the deductions and payment of premiums or

22-1  contributions authorized pursuant to this section unless willful

22-2  neglect or gross negligence is proven.

22-3      Sec. 30.  NRS 218.6853 is hereby amended to read as follows:

22-4      218.6853  1.  The Chief of the Administrative Division is ex

22-5  officio Legislative Fiscal Officer. As such Officer, he shall keep a

22-6  complete, accurate and adequate set of accounting records and

22-7  reports for all legislative operations, including any records and

22-8  reports required by the Federal Government for the administration

22-9  of federal revenue and income tax laws.

22-10     2.  The Chief shall withhold from the pay of each Legislator,

22-11  employee of the Legislature and employee of the Legislative

22-12  Counsel Bureau the amount of tax specified by the Federal

22-13  Government and shall transmit the amount deducted to the Internal

22-14  Revenue Service of the United States Department of the Treasury.

22-15     3.  The Chief shall, upon receipt of information from the

22-16  Public Employees’ Benefits Program specifying amounts of

22-17  premiums or contributions for coverage by the Program, withhold

22-18  from the pay of each employee of the Legislature and employee of

22-19  the Legislative Counsel Bureau who participates in the Public

22-20  Employees’ Benefits Program those amounts and pay those

22-21  amounts to the Program.

22-22     4.  The Chief may provide for the purchase of United States

22-23  savings bonds or similar United States obligations by salary

22-24  deduction for any Legislator, legislative employee or employee of

22-25  the Legislative Counsel Bureau who submits a written request for

22-26  these deductions and purchases. The Chief shall provide forms

22-27  authorizing deductions for and purchases of these United States

22-28  obligations.

22-29     [4.] 5. The Chief may withhold from the pay of a Legislator,

22-30  employee of the Legislature or employee of the Legislative Counsel

22-31  Bureau such amount as the claimant specifies in writing for payment

22-32  to his credit union. Any money which is withheld must be

22-33  transmitted by the Chief in accordance with the claimant’s written

22-34  instructions. The Chief may adopt regulations necessary to carry out

22-35  the provisions of this subsection.

22-36     Sec. 31.  Section 49 of chapter 573, Statutes of Nevada 1999,

22-37  at page 3048, is hereby amended to read as follows:

22-38     Sec. 49.  1.  This section and sections 41, 47 and 48 of

22-39  this act become effective upon passage and approval.

22-40     2.  Sections 1 to 12, inclusive, 13 to 28, inclusive, 30

22-41  to 40, inclusive, 42, 42.7, 47.2, 48.5 and 50 of this act become

22-42  effective on July 1, 1999.

22-43     3.  Section 29 of this act becomes effective at 12:01 a.m.

22-44  on July 1, 1999.

23-1      4.  Sections 12.5 and 47.3 of this act become effective on

23-2  July 1, 1999, for the purpose of adopting regulations, and on

23-3  January 1, 2001, for all other purposes.

23-4      [5.  Section 18 of this act expires by limitation on July 1,

23-5  2003.

23-6      6.  Section 42.5 of this act becomes effective on July 1,

23-7  2003.]

23-8      Sec. 32.  1.  NRS 287.0235 is hereby repealed.

23-9      2.  Section 42.5 of chapter 573, Statutes of Nevada 1999, at

23-10  page 3043, is hereby repealed.

23-11     Sec. 33.  1.  This section and sections 1 to 10, inclusive, 12 to

23-12  22, inclusive, and 25 to 31, inclusive, of this act become effective on

23-13  July 1, 2003.

23-14     2.  Sections 11, 23, 24 and 32 of this act become effective on

23-15  July 1, 2004.

 

23-16  TEXT OF REPEALED SECTIONS

 

23-17     287.0235  Option of certain retired persons to join public

23-18   employees’ benefits program; notification of period of open

23-19   enrollment; approval or disapproval of request for enrollment;

23-20   exclusion of certain claims for expenses.

23-21     1.  Notwithstanding the provisions of NRS 287.023 and

23-22   287.045, a person or the surviving spouse of a person who did not,

23-23   at the time of his retirement pursuant to the conditions set forth in

23-24   NRS 286.510 or 286.620, have the option to participate in the

23-25   Public Employees’ Benefits Program may join the Public

23-26   Employees’ Benefits Program, to the extent that such coverage is

23-27   not provided to him or a dependent by the Health Insurance for the

23-28   Aged Act, 42 U.S.C. §§ 1395 et seq., by:

23-29     (a) Providing the Public Employees’ Retirement Board with

23-30   written notice of his intention to enroll in the Public Employees’

23-31   Benefits Program during a period of open enrollment;

23-32     (b) Accepting the current plan of insurance of the Public

23-33   Employees’ Benefits Program and any subsequent changes to the

23-34   plan; and

23-35     (c) Paying any portion of the premiums or contributions for the

23-36   Program in the manner set forth in NRS 286.615, which are due

23-37   after the date of enrollment.

23-38  The Public Employees’ Retirement Board shall, beginning on

23-39   September 1, 1997, have a biennial period of open enrollment

23-40   between September 1 of each odd-numbered year and January 31 of

24-1  each even-numbered year during which eligible retired persons may

24-2  join the Public Employees’ Benefits Program pursuant to this

24-3   section.

24-4      2.  The Public Employees’ Retirement Board shall, on or before

24-5   September 1, 1997, and every September 1 of each odd-numbered

24-6   year thereafter, notify eligible retired persons described in

24-7   subsection 1 of the period of open enrollment by:

24-8      (a) Mailing a notice regarding the period of open enrollment to

24-9   all retired persons who are, according to its records, eligible to join

24-10   the Public Employees’ Benefits Program;

24-11     (b) Posting a notice of the period of open enrollment at its

24-12   principal office and at least three other separate prominent places,

24-13   such as a library, community center or courthouse; and

24-14     (c) Publicizing the period of open enrollment in any other

24-15   manner reasonably calculated to inform additional eligible retired

24-16   persons.

24-17     3.  The Public Employees’ Retirement Board shall notify the

24-18   Board of the Public Employees’ Benefits Program of the enrollment

24-19   of any person on or before March 1 immediately following the

24-20   period of open enrollment. The Board of the Public Employees’

24-21   Benefits Program shall approve or disapprove the request for

24-22   enrollment within 90 days after receipt of the request. Enrollment

24-23   shall be deemed to occur on the day the request is approved.

24-24     4.  Enrollment in the Public Employees’ Benefits Program

24-25   pursuant to this section excludes claims for expenses for any

24-26   condition for which medical advice, treatment or consultation was

24-27   rendered within 12 months before enrollment unless the insurance

24-28   coverage has been in effect more than 12 consecutive months.

24-29     Section 42.5 of chapter 573, Statutes of Nevada 1999:

24-30     Sec. 42.5.  Section 18 of this act is hereby amended to

24-31   read as follows:

24-32     Sec. 18.  NRS 287.041 is hereby amended to read as

24-33   follows:

24-34     287.041  1.  There is hereby created the board of the

24-35   public employees’ benefits program. The board consists

24-36   of seven members appointed as follows:

24-37     (a) One member who is an employee of the University

24-38   and Community College System of Nevada, appointed by

24-39   the governor upon consideration of any recommendations

24-40   of organizations that represent employees of the

24-41   University and Community College System of Nevada.

24-42     (b) One member who is retired from public

24-43   employment, appointed by the governor upon

24-44   consideration of any recommendations of organizations

24-45   that represent retired public employees.

25-1      (c) Two members who are employees of the state,

25-2  appointed by the governor upon consideration of any

25-3   recommendations of organizations that represent state

25-4   employees.

25-5      (d) One member appointed by the governor upon

25-6   consideration of any recommendations of organizations

25-7   that represent employees of local governments that

25-8   participate in the program.

25-9      (e) One member who is employed by this state in a

25-10   managerial capacity and has substantial and demonstrated

25-11   experience in risk management, portfolio investment

25-12   strategies or employee benefits programs appointed by

25-13   the governor. The governor may appoint the executive

25-14   officer of the public employees’ retirement system to fill

25-15   this position.

25-16     (f) The director of the department of administration or

25-17   his designee.

25-18     2.  Of the six persons appointed to the board pursuant

25-19   to paragraphs (a) to (e), inclusive, of subsection 1, at least

25-20   one member must have an advanced degree in business

25-21   administration, economics, accounting, insurance, risk

25-22   management or health care administration, and at least

25-23   two members must have education or proven experience

25-24   in the management of employees’ benefits, insurance, risk

25-25   management, health care administration or business

25-26   administration.

25-27     3.  Each person appointed as a member of the board

25-28   must:

25-29     (a) Have been a participant in the program for at least 1

25-30   year before his appointment;

25-31     (b) Be a current employee of the State of Nevada or

25-32   another public employer that participates in the program

25-33   or a retired public employee who is a participant in the

25-34   program; and

25-35     (c) Not be an elected officer of the State of Nevada or

25-36   any of its political subdivisions.

25-37     4.  Except as otherwise provided in this subsection,

25-38   after the initial terms, the term of an appointed member of

25-39   the board is 4 years and until his successor is appointed

25-40   and takes office unless the member no longer possesses

25-41   the qualifications for appointment set forth in this section

25-42   or is removed by the governor. If a member loses the

25-43   requisite qualifications within the last 12 months of his

25-44   term, the member may serve the remainder of his term.

25-45   Members are eligible for reappointment. A vacancy

26-1  occurring in the membership of the board must be filled in

26-2  the same manner as the original appointment.

26-3      5.  The appointed members of the board serve at the

26-4   pleasure of the governor. If the governor wishes to

26-5   remove a member from the board for any reason other

26-6   than malfeasance or misdemeanor, the governor shall

26-7   provide the member with written notice which states the

26-8   reason for and the effective date of the removal.

 

26-9  H