(Reprinted with amendments adopted on May 29, 2003)
SECOND REPRINT A.B. 249
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.
Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).
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; restricting the authority of the State Controller with respect to the adoption of certain regulations regarding payroll deductions that will be paid to employee organizations or labor organizations; 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; providing that the subsidy paid by the State of Nevada for coverage by the Program of retirees applies to any retired public officer or employee with state service; limiting that subsidy 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:
1-1 Section 1. NRS 281.129 is hereby amended to read as follows:
1-2 281.129 1. Any officer of the State, except the Legislative
1-3 Fiscal Officer, who disburses money in payment of salaries and
1-4 wages of officers and employees of the State [may,] :
1-5 (a) May, upon written requests of the officer or employee
1-6 specifying amounts, withhold those amounts and pay them to:
1-7 [1.] (1) Charitable organizations;
1-8 [2.] (2) Employee credit unions;
1-9 [3. Insurers, if the Board of the Public Employees’ Benefits
1-10 Program has approved the request;
1-11 4.] (3) Except as otherwise provided in paragraph (b),
1-12 insurers;
1-13 (4) The United States for the purchase of savings bonds and
1-14 similar obligations of the United States; and
1-15 [5.] (5) Employee organizations and labor organizations [. The]
1-16 that have 100 members or to which amounts are withheld and paid
1-17 pursuant to this subparagraph as of January 1, 2003.
1-18 (b) Shall, upon receipt of information from the Public
1-19 Employees’ Benefits Program specifying amounts of premiums or
1-20 contributions for coverage by the Program, withhold those
1-21 amounts from the salaries or wages of officers and employees who
1-22 participate in the Program and pay those amounts to the Program.
1-23 2. Except as otherwise provided in this subsection, the State
1-24 Controller may adopt regulations necessary to withhold money from
1-25 the salaries or wages of officers and employees of the executive
1-26 department. The State Controller may not adopt regulations
1-27 relating to the withholding of money and the payment of such
1-28 money to employee organizations or labor organizations.
1-29 Sec. 2. Chapter 286 of NRS is hereby amended by adding
1-30 thereto a new section to read as follows:
1-31 The System shall provide to the Public Employees’ Benefits
1-32 Program written notice regarding a change in the payment status
1-33 of a recipient of benefits provided pursuant to this chapter that
1-34 affects the eligibility of the recipient to participate in the Program.
1-35 Such notice must be provided by the System to the Program, in a
1-36 format agreed upon by the System and the Program, within 30
1-37 calendar days after the System is notified of the change in
1-38 payment status.
2-1 Sec. 3. NRS 286.615 is hereby amended to read as follows:
2-2 286.615 1. In addition to the options provided in NRS
2-3 287.023 and subject to the requirements of that section, any officer
2-4 or employee of [the governing body of any county, school district,
2-5 municipal corporation, political subdivision, public corporation or
2-6 other public agency of the State of Nevada,] a governmental entity
2-7 enumerated in subsection 1 of NRS 287.023, who retires under the
2-8 conditions set forth in NRS 1A.350, 1A.480, 286.510 or 286.620
2-9 and, at the time of his retirement, was covered or had his dependents
2-10 covered by any group insurance or medical and hospital service
2-11 established pursuant to NRS 287.010 [and 287.020,] , 287.020 or
2-12 paragraph (b), (c) or (d) of subsection 1 of NRS 287.025, has the
2-13 option of having the Executive Officer deduct and pay his premium
2-14 or contribution for that [group insurance or medical and hospital
2-15 service] coverage, as well as the amount due or to become due upon
2-16 any obligation designated by the Board pursuant to subsection 2,
2-17 from his monthly retirement allowance until:
2-18 (a) He notifies the Executive Officer to discontinue the
2-19 deduction; or
2-20 (b) Any of his dependents elect to assume the premium or
2-21 contribution applicable to the dependent’s coverage before the death
2-22 of such a retired person and continue coverage pursuant to NRS
2-23 287.023 after his death.
2-24 2. The Board may adopt regulations to carry out the provisions
2-25 of subsection 1, including, but not limited to, regulations governing
2-26 the number and types of obligations, amounts for the payment of
2-27 which may be deducted and paid by the Board at the option of the
2-28 officer or employee pursuant to this section.
2-29 3. The Executive Officer, Board and System are not liable for
2-30 any damages resulting from errors or omissions concerning the
2-31 deductions and payment of premiums or contributions authorized
2-32 pursuant to this section unless willful neglect or gross negligence is
2-33 proven.
2-34 Sec. 4. Chapter 287 of NRS is hereby amended by adding
2-35 thereto the provisions set forth as sections 5, 6 and 7 of this act.
2-36 Sec. 5. “Participating local governmental agency” means a
2-37 county, school district, municipal corporation, political
2-38 subdivision, public corporation or other local governmental
2-39 agency that has an agreement in effect with the Program pursuant
2-40 to paragraph (a) of subsection 1 of NRS 287.025 to obtain group
2-41 insurance from the Program.
2-42 Sec. 6. “Participating public agency” means any
2-43 participating local governmental agency and participating state
2-44 agency.
3-1 Sec. 7. “Participating state agency” means a department,
3-2 commission, board, bureau or other agency of the Executive,
3-3 Legislative and Judicial Branches of State Government, including,
3-4 without limitation, the Public Employees’ Retirement System and
3-5 the University and Community College System of Nevada.
3-6 Sec. 8. NRS 287.010 is hereby amended to read as follows:
3-7 287.010 1. The governing body of any county, school
3-8 district, municipal corporation, political subdivision, public
3-9 corporation or other [public] local governmental agency of the State
3-10 of Nevada may:
3-11 (a) Adopt and carry into effect a system of group life, accident
3-12 or health insurance, or any combination thereof, for the benefit of its
3-13 officers and employees, and the dependents of officers and
3-14 employees who elect to accept the insurance and who, where
3-15 necessary, have authorized the governing body to make deductions
3-16 from their compensation for the payment of premiums on the
3-17 insurance.
3-18 (b) Purchase group policies of life, accident or health insurance,
3-19 or any combination thereof, for the benefit of such officers and
3-20 employees, and the dependents of such officers and employees, as
3-21 have authorized the purchase, from insurance companies authorized
3-22 to transact the business of such insurance in the State of Nevada,
3-23 and, where necessary, deduct from the compensation of officers and
3-24 employees the premiums upon insurance and pay the deductions
3-25 upon the premiums.
3-26 (c) Provide group life, accident or health coverage through a
3-27 self-insurance reserve fund and, where necessary, deduct
3-28 contributions to the maintenance of the fund from the compensation
3-29 of officers and employees and pay the deductions into the fund. The
3-30 money accumulated for this purpose through deductions from the
3-31 compensation of officers and employees and contributions of
3-32 the governing body must be maintained as an internal service fund
3-33 as defined by NRS 354.543. The money must be deposited in a state
3-34 or national bank or credit union authorized to transact business in
3-35 the State of Nevada. Any independent administrator of a fund
3-36 created under this section is subject to the licensing requirements of
3-37 chapter 683A of NRS, and must be a resident of this state. Any
3-38 contract with an independent administrator must be approved by
3-39 the Commissioner of Insurance as to the reasonableness of
3-40 administrative charges in relation to contributions collected and
3-41 benefits provided. The provisions of NRS 689B.030 to 689B.050,
3-42 inclusive, and 689B.575 apply to coverage provided pursuant to this
3-43 paragraph, except that the provisions of NRS 689B.0359 do not
3-44 apply to such coverage.
4-1 (d) Defray part or all of the cost of maintenance of a self-
4-2 insurance fund or of the premiums upon insurance. The money for
4-3 contributions must be budgeted for in accordance with the laws
4-4 governing the county, school district, municipal corporation,
4-5 political subdivision, public corporation or other [public] local
4-6 governmental agency of the State of Nevada.
4-7 2. If a school district offers group insurance to its officers and
4-8 employees pursuant to this section, members of the board of trustees
4-9 of the school district must not be excluded from participating in the
4-10 group insurance. If the amount of the deductions from compensation
4-11 required to pay for the group insurance exceeds the compensation to
4-12 which a trustee is entitled, the difference must be paid by the trustee.
4-13 Sec. 9. NRS 287.020 is hereby amended to read as follows:
4-14 287.020 1. The governing body of any county, school
4-15 district, municipal corporation, political subdivision, public
4-16 corporation or other [public] local governmental agency of the State
4-17 of Nevada may adopt and carry into effect a system of medical or
4-18 hospital service, or a combination thereof, through nonprofit
4-19 membership corporations defraying the cost of medical service or
4-20 hospital care, or both, open to participation by all licentiates of the
4-21 particular class , [(]whether doctors of medicine, doctors of
4-22 osteopathy or doctors of chiropractic , [)] offering services through
4-23 such a nonprofit membership corporation, for the benefit of such of
4-24 their officers and employees, and the dependents of such officers
4-25 and employees, as may elect to accept membership in such nonprofit
4-26 corporation and who have authorized the governing body to make
4-27 deductions from their compensation for the payment of membership
4-28 dues.
4-29 2. A part, not to exceed 50 percent, of the cost of such
4-30 membership dues may be defrayed by such governing body by
4-31 contribution. The money for such contributions must be budgeted
4-32 for in accordance with the laws governing such county, school
4-33 district, municipal corporation, political subdivision, public
4-34 corporation or other [public] local governmental agency of the State
4-35 of Nevada.
4-36 3. The power conferred in this section, with respect to the
4-37 rendition of medical or hospital service, or a combination thereof, is
4-38 coextensive with the power conferred in NRS 287.010 with respect
4-39 to insurance companies.
4-40 4. If a school district offers coverage for medical service or
4-41 hospital care, or both, to its officers and employees pursuant to this
4-42 section, members of the board of trustees of the school district must
4-43 not be excluded from participating in the coverage. If the amount of
4-44 the deductions from compensation required to pay for the coverage
5-1 exceeds the compensation to which a trustee is entitled, the
5-2 difference must be paid by the trustee.
5-3 Sec. 10. NRS 287.021 is hereby amended to read as follows:
5-4 287.021 1. Except as otherwise provided in subsection 3, the
5-5 surviving spouse and any surviving child of a police officer or
5-6 fireman who was:
5-7 (a) Employed by a public agency that had established group
5-8 insurance or medical and hospital service pursuant to NRS 287.010,
5-9 287.020 or paragraph (b), (c) or (d) of subsection 1 of 287.025; and
5-10 (b) Killed in the line of duty,
5-11 may elect to accept or continue coverage under that group insurance
5-12 or medical and hospital service if the police officer or fireman was a
5-13 participant or would have been eligible to participate in the group
5-14 insurance or medical and hospital service on the date of the death of
5-15 the police officer or fireman. If the surviving spouse or child elects
5-16 to accept coverage under the group insurance or medical and
5-17 hospital service in which the police officer or fireman would have
5-18 been eligible to participate or to discontinue coverage under the
5-19 group insurance or medical and hospital service in which the police
5-20 officer or fireman was a participant, the spouse, child or legal
5-21 guardian of the child must notify in writing the public agency that
5-22 employed the police officer or fireman within 60 days after the date
5-23 of death of the police officer or fireman.
5-24 2. The public agency that employed the police officer or
5-25 fireman shall pay the entire cost of the premiums or contributions
5-26 for the group insurance or medical and hospital service for the
5-27 surviving spouse or child who meets the requirements set forth in
5-28 subsection 1.
5-29 3. A surviving spouse is eligible to receive coverage pursuant
5-30 to this section for the duration of the life of the surviving spouse. A
5-31 surviving child is eligible to receive coverage pursuant to this
5-32 section until the child reaches:
5-33 (a) The age of 18 years; or
5-34 (b) The age of 23 years, if the child is enrolled as a full-time
5-35 student in an accredited university, college or trade school.
5-36 4. As used in this section “police officer” has the meaning
5-37 ascribed to it in NRS 617.135.
5-38 Sec. 11. NRS 287.023 is hereby amended to read as follows:
5-39 287.023 1. Whenever an officer or employee of the
5-40 governing body of any county, school district, municipal
5-41 corporation, political subdivision, public corporation or other
5-42 [public] local governmental agency of the State of Nevada retires
5-43 under the conditions set forth in NRS 1A.350 or 1A.480, or 286.510
5-44 or 286.620 and, at the time of his retirement, was covered or had his
5-45 dependents covered by any group insurance or medical and hospital
6-1 service established pursuant to NRS 287.010 [and 287.020,] ,
6-2 287.020 or paragraph (b), (c) or (d) of subsection 1 of NRS
6-3 287.025, the officer or employee has the option upon retirement to
6-4 cancel or continue any such group insurance or medical and hospital
6-5 service coverage or join the Public Employees’ Benefits Program to
6-6 the extent that such coverage is not provided to him or a dependent
6-7 by the Health Insurance for the Aged Act, 42 U.S.C. §§ 1395 et seq.
6-8 2. A retired person who continues coverage under the Public
6-9 Employees’ Benefits Program shall assume the portion of the
6-10 premium or [membership] contribution costs for the coverage
6-11 continued which the governing body does not pay on behalf of
6-12 retired officers or employees. A person who joins the Public
6-13 Employees’ Benefits Program for the first time upon retirement
6-14 shall assume all costs for the coverage. A dependent of such a
6-15 retired person has the option, which may be exercised to the same
6-16 extent and in the same manner as the retired person, to cancel or
6-17 continue coverage in effect on the date the retired person dies. The
6-18 dependent is not required to continue to receive retirement payments
6-19 from the Public Employees’ Retirement System to continue
6-20 coverage.
6-21 3. [Except as otherwise provided in NRS 287.0235, notice]
6-22 Notice of the selection of the option must be given in writing to the
6-23 last public employer of the officer or employee within 60 days after
6-24 the date of retirement or death, as the case may be. If no notice is
6-25 given by that date, the retired officer or employee and his
6-26 dependents shall be deemed to have selected the option to cancel the
6-27 coverage for the group insurance or medical and hospital service
6-28 established pursuant to NRS 287.010, 287.020 or paragraph (b),
6-29 (c) or (d) of subsection 1 of NRS 287.025 or not to join the Public
6-30 Employees’ Benefits Program, as the case may be.
6-31 4. The governing body of any county, school district,
6-32 municipal corporation, political subdivision, public corporation or
6-33 other [public] local governmental agency of this state may pay the
6-34 cost, or any part of the cost, of group insurance and medical and
6-35 hospital service coverage provided pursuant to NRS 287.010,
6-36 287.020 or paragraph (b), (c) or (d) of subsection 1 of NRS
6-37 287.025 for persons eligible for that coverage pursuant to
6-38 subsection 1, but it must not pay a greater portion than it does for its
6-39 current officers and employees.
6-40 Sec. 12. NRS 287.0235 is hereby amended to read as follows:
6-41 287.0235 1. Notwithstanding the provisions of NRS 287.023
6-42 and 287.045, a person or the surviving spouse of a person who did
6-43 not, at the time of his retirement pursuant to the conditions set forth
6-44 in NRS 1A.350 or 1A.480, or 286.510 or 286.620, have the option
6-45 to participate in the Public Employees’ Benefits Program may join
7-1 the Public Employees’ Benefits Program, to the extent that such
7-2 coverage is not provided to him or a dependent by the Health
7-3 Insurance for the Aged Act, 42 U.S.C. §§ 1395 et seq., by:
7-4 (a) Providing the Public Employees’ Retirement Board with
7-5 written notice of his intention to enroll in the Public Employees’
7-6 Benefits Program during a period of open enrollment;
7-7 (b) [Showing evidence of his good health as a condition of
7-8 enrollment;
7-9 (c)] Accepting the current plan of insurance of the Public
7-10 Employees’ Benefits Program and any subsequent changes to the
7-11 plan; and
7-12 [(d)] (c) Paying any portion of the premiums or contributions for
7-13 the Program in the manner set forth in NRS 1A.470 or 286.615,
7-14 which are due after the date of enrollment.
7-15 The Public Employees’ Retirement Board shall, beginning on
7-16 September 1, 1997, have a biennial period of open enrollment
7-17 between September 1 of each odd-numbered year and January 31 of
7-18 each even-numbered year during which eligible retired persons may
7-19 join the Public Employees’ Benefits Program pursuant to this
7-20 section.
7-21 2. The Public Employees’ Retirement Board shall, on or before
7-22 September 1, 1997, and every September 1 of each odd-numbered
7-23 year thereafter, notify eligible retired persons described in
7-24 subsection 1 of the period of open enrollment by:
7-25 (a) Mailing a notice regarding the period of open enrollment to
7-26 all retired persons who are, according to its records, eligible to join
7-27 the Public Employees’ Benefits Program;
7-28 (b) Posting a notice of the period of open enrollment at its
7-29 principal office and at least three other separate prominent places,
7-30 such as a library, community center or courthouse; and
7-31 (c) Publicizing the period of open enrollment in any other
7-32 manner reasonably calculated to inform additional eligible retired
7-33 persons.
7-34 3. The Public Employees’ Retirement Board shall notify the
7-35 Board of the Public Employees’ Benefits Program of the enrollment
7-36 of any person on or before March 1 immediately following the
7-37 period of open enrollment. The Board of the Public Employees’
7-38 Benefits Program shall approve or disapprove the request for
7-39 enrollment within 90 days after receipt of the request. Enrollment
7-40 shall be deemed to occur on the day the request is approved.
7-41 4. Enrollment in the Public Employees’ Benefits Program
7-42 pursuant to this section excludes claims for expenses for any
7-43 condition for which medical advice, treatment or consultation was
7-44 rendered within 12 months before enrollment unless[:
8-1 (a) The person has not received any medical advice, treatment or
8-2 consultation for a period of 6 consecutive months after enrollment;
8-3 or
8-4 (b) The] the insurance coverage has been in effect more than 12
8-5 consecutive months.
8-6 Sec. 13. NRS 287.024 is hereby amended to read as follows:
8-7 287.024 1. If a member of the board of trustees of a school
8-8 district who has served at least one full term of office does not seek
8-9 reelection or is defeated for reelection and, upon the expiration of
8-10 his term of office, was covered or had his dependents covered by
8-11 any group insurance or medical and hospital service established
8-12 pursuant to NRS 287.010 [and 287.020,] , 287.020 or paragraph
8-13 (b), (c) or (d) of subsection 1 of NRS 287.025, the board member
8-14 has the option upon the expiration of his term of office to cancel or
8-15 continue any such group insurance to the extent that such coverage
8-16 is not provided to him or a dependent by the Health Insurance for
8-17 the Aged Act, 42 U.S.C. §§ 1395 et seq. A board member who
8-18 continues coverage under the program of group insurance shall
8-19 assume all costs for the continued coverage. A dependent of such a
8-20 board member has the option, which may be exercised to the same
8-21 extent and in the same manner as the board member, to cancel or
8-22 continue coverage in effect on the date the board member dies.
8-23 2. Notice of the selection of the option must be given in writing
8-24 to the board of trustees of the school district within 30 days after the
8-25 expiration of the board member’s term of office or the date of his
8-26 death, as the case may be. If no notice is given by that date, the
8-27 board member and his dependents shall be deemed to have selected
8-28 the option to cancel the coverage.
8-29 Sec. 14. NRS 287.025 is hereby amended to read as follows:
8-30 287.025 1. The governing body of any county, school
8-31 district, municipal corporation, political subdivision, public
8-32 corporation or other [public] local governmental agency of the State
8-33 of Nevada may, in addition to the other powers granted in NRS
8-34 287.010 and 287.020:
8-35 [1.] (a) Negotiate and contract with [any other such agency or
8-36 with] the Board of the Public Employees’ Benefits Program to
8-37 secure group insurance for its officers and employees and their
8-38 dependents by participation in [any group insurance plan established
8-39 or to be established or in] the Public Employees’ Benefits Program.
8-40 [Each such contract:
8-41 (a) Must be submitted to the Commissioner of Insurance not less
8-42 than 30 days before the date on which the contract is to become
8-43 effective for approval.
8-44 (b) Does not become effective unless approved by the
8-45 Commissioner.
9-1 (c) Shall be deemed to be approved if not disapproved by the
9-2 Commissioner of Insurance within 30 days after its submission.
9-3 2.] (b) Negotiate and contract with another county, school
9-4 district, municipal corporation, political subdivision, public
9-5 corporation or other local governmental agency of the State of
9-6 Nevada to secure group insurance for its officers and employees
9-7 and their dependents by participation in any group insurance plan
9-8 established or to be established by the other local governmental
9-9 agency.
9-10 (c) To secure group health, life or workers’ compensation
9-11 insurance for its officers and employees and their dependents,
9-12 participate as a member of a nonprofit cooperative association or
9-13 nonprofit corporation that has been established in this state to secure
9-14 such insurance for its members from an insurer licensed pursuant to
9-15 the provisions of title 57 of NRS.
9-16 [3.] (d) In addition to the provisions of [subsection 2,]
9-17 paragraph (c), participate as a member of a nonprofit cooperative
9-18 association or nonprofit corporation that has been established in this
9-19 state to:
9-20 [(a)] (1) Facilitate contractual arrangements for the provision of
9-21 medical services to its members’ officers and employees and their
9-22 dependents and for related administrative services.
9-23 [(b)] (2) Procure health-related information and disseminate that
9-24 information to its members’ officers and employees and their
9-25 dependents.
9-26 2. Each contract negotiated pursuant to paragraph (a) or (b)
9-27 of subsection 1:
9-28 (a) Must be submitted to the Commissioner of Insurance for
9-29 approval not less than 30 days before the date on which the
9-30 contract is to become effective.
9-31 (b) Does not become effective unless approved by the
9-32 Commissioner of Insurance.
9-33 (c) Shall be deemed to be approved if not disapproved by
9-34 the Commissioner of Insurance within 30 days after its
9-35 submission.
9-36 Sec. 15. NRS 287.030 is hereby amended to read as follows:
9-37 287.030 No provisions of law prohibiting, restricting or
9-38 limiting the assignment of or order for wages or salary shall be
9-39 deemed in any way to prohibit, restrict or limit the powers
9-40 enumerated in NRS 287.010 [and 287.020,] , 287.020 or 287.025
9-41 nor the right and power of officers or employees to authorize and
9-42 approve payment of premiums or contributions by wage and salary
9-43 deductions.
10-1 Sec. 16. NRS 287.040 is hereby amended to read as follows:
10-2 287.040 The provisions of NRS 287.010 to 287.040, inclusive,
10-3 do not make it compulsory upon any governing body of any county,
10-4 school district, municipal corporation, political subdivision, public
10-5 corporation or other [public] local governmental agency of the State
10-6 of Nevada to, except as otherwise provided in NRS 287.021, make
10-7 any contributions for the payment of any premiums or other costs
10-8 for group insurance or medical or hospital services, or upon any
10-9 officer or employee of any county, school district, municipal
10-10 corporation, political subdivision, public corporation or other
10-11 [public agency] local governmental agency of this state to accept or
10-12 join any plan of group insurance or to assign his wages or salary [or
10-13 to authorize deductions from his wages or salary] in payment of
10-14 premiums or contributions therefor.
10-15 Sec. 17. NRS 287.0402 is hereby amended to read as follows:
10-16 287.0402 As used in NRS 287.0402 to 287.049, inclusive, and
10-17 sections 5, 6 and 7 of this act, unless the context otherwise requires,
10-18 the words and terms defined in NRS 287.0404 and 287.0406 and
10-19 sections 5, 6 and 7 of this act have the meanings ascribed to them in
10-20 those sections.
10-21 Sec. 18. NRS 287.043 is hereby amended to read as follows:
10-22 287.043 1. The Board shall:
10-23 (a) Establish and carry out a program to be known as the Public
10-24 Employees’ Benefits Program which:
10-25 (1) Must include a program relating to group life, accident or
10-26 health insurance, or any combination of these; and
10-27 (2) May include a program to reduce taxable compensation
10-28 or other forms of compensation other than deferred
10-29 compensation,
10-30 for the benefit of all state officers and employees and other persons
10-31 who participate in the Program.
10-32 (b) Ensure that the Program is funded on an actuarially sound
10-33 basis and operated in accordance with sound insurance and business
10-34 practices.
10-35 2. In establishing and carrying out the Program, the Board
10-36 shall:
10-37 (a) For the purpose of establishing actuarial data to determine
10-38 rates and coverage for active and retired state officers and
10-39 employees and their dependents, commingle the claims experience
10-40 of such active and retired officers and employees and their
10-41 dependents.
10-42 (b) Except as otherwise provided in this paragraph, negotiate
10-43 and contract pursuant to paragraph (a) of subsection 1 of NRS
10-44 287.025 with the governing body of any [public agency enumerated
10-45 in NRS 287.010] county, school district, municipal corporation,
11-1 political subdivision, public corporation or other local
11-2 governmental agency of the State of Nevada that wishes to obtain
11-3 group insurance for its active and retired officers[, employees and
11-4 retired] and employees and their dependents by participation in the
11-5 Program. The Board shall establish separate rates and coverage for
11-6 those active and retired officers[, employees and retired] and
11-7 employees and their dependents based on actuarial reports.
11-8 (c) Except as otherwise provided in paragraph (d), provide
11-9 public notice in writing of any proposed changes in rates or
11-10 coverage to each participating public [employer who] agency that
11-11 may be affected by the changes. Notice must be provided at least 30
11-12 days before the effective date of the changes.
11-13 (d) If a proposed change is a change in the premium or
11-14 contribution charged for , or coverage of , health insurance, provide
11-15 written notice of the proposed change to all [state officers,
11-16 employees, retired employees and other persons who participate in
11-17 the Program who may be affected by the proposed change.]
11-18 participating active and retired public officers and employees. The
11-19 notice must be provided at least 60 days before the date [a state
11-20 officer, employee, retired employee or other person] on which a
11-21 participating active or retired public officer or employee is required
11-22 to select or change his policy of health insurance.
11-23 (e) Purchase policies of life, accident or health insurance, or any
11-24 combination of these, or, if applicable, a program to reduce the
11-25 amount of taxable compensation pursuant to 26 U.S.C. § 125, from
11-26 any company qualified to do business in this state or provide similar
11-27 coverage through a plan of self-insurance established pursuant to
11-28 NRS 287.0433 for the benefit of all eligible active and retired
11-29 public officers[, employees and retired] and employees who
11-30 participate in the Program.
11-31 (f) Except as otherwise provided in this title, develop and
11-32 establish other employee benefits as necessary.
11-33 (g) Investigate and approve or disapprove any contract proposed
11-34 pursuant to NRS 287.0479.
11-35 (h) Adopt such regulations and perform such other duties as are
11-36 necessary to carry out the provisions of NRS 287.0402 to 287.049,
11-37 inclusive, and sections 5, 6 and 7 of this act, including, without
11-38 limitation, the establishment of:
11-39 (1) Fees for applications for participation in the Program and
11-40 for the late payment of premiums or contributions;
11-41 (2) Conditions for entry and reentry into the Program by
11-42 [public agencies enumerated in NRS 287.010;] local governmental
11-43 agencies that wish to enter or reenter the Program pursuant to
11-44 paragraph (a) of subsection 1 of NRS 287.025;
12-1 (3) The levels of participation in the Program required for
12-2 officers and employees of participating public agencies;
12-3 (4) Procedures by which a group of participants in the
12-4 Program may leave the Program pursuant to NRS 287.0479 and
12-5 conditions and procedures for reentry into the Program by those
12-6 participants; and
12-7 (5) Specific procedures for the determination of contested
12-8 claims.
12-9 (i) Appoint an independent certified public accountant. The
12-10 accountant shall:
12-11 (1) Provide an annual audit of the Program; and
12-12 (2) Report to the Board and the Interim Retirement and
12-13 Benefits Committee of the Legislature created pursuant to
12-14 NRS 218.5373.
12-15 (j) Appoint an attorney who specializes in employee benefits.
12-16 The attorney shall:
12-17 (1) Perform a biennial review of the Program to determine
12-18 whether the Program complies with federal and state laws relating to
12-19 taxes and employee benefits; and
12-20 (2) Report to the Board and the Interim Retirement and
12-21 Benefits Committee of the Legislature created pursuant to
12-22 NRS 218.5373.
12-23 3. The Board shall submit an annual report regarding the
12-24 administration and operation of the Program to the Director of
12-25 the Legislative Counsel Bureau not more than 6 months before the
12-26 Board establishes rates and coverage for members for the following
12-27 [calendar] plan year. The report must include, without limitation:
12-28 (a) The amount paid by the Program in the preceding [calendar]
12-29 plan year for the claims of active and retired state officers and
12-30 employees[;] who participated in the Program; and
12-31 (b) The amount paid by the Program in the preceding [calendar]
12-32 plan year for the claims of retired members of the Program who
12-33 were provided coverage for medical or hospital service, or both, by
12-34 the Health Insurance for the Aged Act, 42 U.S.C. §§ 1395 et seq., or
12-35 a plan that provides similar coverage.
12-36 4. The Board may use any services provided to state agencies
12-37 and shall use the services of the Purchasing Division of the
12-38 Department of Administration to establish and carry out the
12-39 Program.
12-40 5. The Board may make recommendations to the Legislature
12-41 concerning legislation that it deems necessary and appropriate
12-42 regarding the Program.
12-43 6. [The State and any other public employers that participate in
12-44 the Program are] A participating public agency is not liable for any
12-45 obligation of the Program other than indemnification of the Board
13-1 and its employees against liability relating to the administration of
13-2 the Program, subject to the limitations specified in NRS 41.0349.
13-3 7. As used in this section, “employee benefits” includes any
13-4 form of compensation provided to a public employee except federal
13-5 benefits, wages earned, legal holidays, deferred compensation and
13-6 benefits available pursuant to chapter 286 of NRS.
13-7 Sec. 19. NRS 287.0434 is hereby amended to read as follows:
13-8 287.0434 The Board may:
13-9 1. Use its assets to pay the expenses of health care for its
13-10 members and covered dependents, to pay its employees’ salaries and
13-11 to pay administrative and other expenses.
13-12 2. Enter into contracts relating to the administration of the
13-13 Program, including, without limitation, contracts with licensed
13-14 administrators and qualified actuaries. Each such contract with a
13-15 licensed administrator:
13-16 (a) Must be submitted to the Commissioner of Insurance not less
13-17 than 30 days before the date on which the contract is to become
13-18 effective for approval as to the reasonableness of administrative
13-19 charges in relation to contributions collected and benefits provided.
13-20 (b) Does not become effective unless approved by the
13-21 Commissioner.
13-22 (c) Shall be deemed to be approved if not disapproved by the
13-23 Commissioner [of Insurance] within 30 days after its submission.
13-24 3. Enter into contracts with physicians, surgeons, hospitals,
13-25 health maintenance organizations and rehabilitative facilities for
13-26 medical, surgical and rehabilitative care and the evaluation,
13-27 treatment and nursing care of members and covered dependents.
13-28 The Board shall not enter into a contract pursuant to this subsection
13-29 unless:
13-30 (a) Provision is made by the Board to offer all the services
13-31 specified in the request for proposals, either by a health maintenance
13-32 organization or through separate action of the Board.
13-33 (b) The rates set forth in the contract are based on the
13-34 commingled claims experience of active and retired state officers
13-35 and employees and their dependents.
13-36 4. Enter into contracts for the services of other experts and
13-37 specialists as required by the Program.
13-38 5. Charge and collect from an insurer, health maintenance
13-39 organization, organization for dental care or nonprofit medical
13-40 service corporation, a fee for the actual expenses incurred by the
13-41 Board[, the State] or a participating public [employer] agency in
13-42 administering a plan of insurance offered by that insurer,
13-43 organization or corporation.
14-1 Sec. 20. NRS 287.0439 is hereby amended to read as follows:
14-2 287.0439 1. A participating public [employer shall, on
14-3 request,] agency shall furnish to the Board [any] :
14-4 (a) Written notice regarding a change in the status of an
14-5 employee of the participating public agency or a dependent of
14-6 such an employee that affects the eligibility of the employee or
14-7 dependent to participate in the Program. Such notice must be
14-8 provided to the Program, on a form prescribed by the Program,
14-9 within 15 calendar days after the participating public agency is
14-10 notified or otherwise becomes aware of the change in status.
14-11 (b) Upon request, any other information necessary to carry out
14-12 the provisions of this chapter.
14-13 2. Members of the Board and its employees or agents may
14-14 examine under oath any officer, agent or employee of a participating
14-15 public [employer] agency concerning the information[.
14-16 2.] required pursuant to this section.
14-17 3. The books, records and payrolls of a participating public
14-18 [employer] agency must be available for inspection by members of
14-19 the Board and its employees and agents to obtain any information
14-20 necessary for the administration of the Program, including, without
14-21 limitation, the accuracy of the payroll and identity of employees.
14-22 4. A participating public agency shall reimburse the Program
14-23 for any premium or contribution that was not paid to the Program
14-24 as a result of the failure of the participating public agency to
14-25 furnish the notice required pursuant to paragraph (a) of
14-26 subsection 1. The participating public agency shall not require any
14-27 employee or his dependent to reimburse the participating public
14-28 agency for the amount of any premium or contribution for which
14-29 the participating public agency is liable to the Program pursuant
14-30 to this subsection.
14-31 Sec. 21. NRS 287.044 is hereby amended to read as follows:
14-32 287.044 1. A part of the cost of the premiums or
14-33 contributions for [that] group insurance[,] provided by the
14-34 Program, not to exceed the amount specified by law, applied to both
14-35 group life and group accident or health coverage, for each [public]
14-36 state officer, except a Senator or Assemblyman, or employee
14-37 electing to participate in the Program, may be paid by the
14-38 [department, agency, commission or public] participating state
14-39 agency which employs the officer or employee in whose behalf that
14-40 part is paid from money appropriated to or authorized for that
14-41 [department, agency, commission or public] participating state
14-42 agency for that purpose. Participation by the State in the cost of
14-43 premiums or contributions must not exceed the amounts specified
14-44 by law. If [an] a state officer or employee chooses to cover his
14-45 dependents, whenever this option is made available by the Board,
15-1 except as otherwise provided in NRS 287.021 and 287.0477, he
15-2 must pay the difference between the amount of the premium or
15-3 contribution for the coverage for himself and his dependents and the
15-4 amount paid by the [State.] participating state agency that employs
15-5 the officer or employee.
15-6 2. A [department, agency, commission or public] participating
15-7 state agency shall not pay any part of those premiums or
15-8 contributions if the group life insurance or group accident or health
15-9 insurance is not approved by the Board.
15-10 Sec. 22. NRS 287.0445 is hereby amended to read as follows:
15-11 287.0445 The [department, agency, commission or public]
15-12 participating state agency which employed [an] a state officer or
15-13 employee who:
15-14 1. Was injured in the course of that employment;
15-15 2. Receives compensation for a temporary total disability
15-16 pursuant to NRS 616C.475; and
15-17 3. Was a member of the Program at the time of the
15-18 injury,
15-19 shall pay the State’s share of the cost of the premiums or
15-20 contributions for the Program for that officer or employee for not
15-21 more than 9 months after the injury or until the officer or employee
15-22 is able to return to work, whichever is less. If the previous injury
15-23 recurs within 1 month after the employee returns to work and the
15-24 employee again receives compensation pursuant to NRS 616C.475
15-25 as a result of the previous injury, the [department, agency,
15-26 commission or public] participating state agency shall not, except
15-27 as otherwise provided in this subsection, pay the state’s share of the
15-28 cost of the premiums or contributions for the period during which
15-29 the employee is unable to work as a result of the recurring previous
15-30 injury. If the initial period of disability was less than 9 months, the
15-31 [department, agency, commission or public] participating state
15-32 agency shall pay, during the recurrence, the State’s share of the
15-33 costs of the premiums or contributions for a period which, when
15-34 added to the initial period, equals not more than 9 months.
15-35 Sec. 23. NRS 287.045 is hereby amended to read as follows:
15-36 287.045 1. Except as otherwise provided in this section,
15-37 every state officer or employee [of the State] is eligible to
15-38 participate in the Program on the first day of the month following
15-39 the completion of 90 days of full-time employment.
15-40 2. Professional employees of the University and Community
15-41 College System of Nevada who have annual employment contracts
15-42 are eligible to participate in the Program on:
15-43 (a) The effective dates of their respective employment contracts,
15-44 if those dates are on the first day of a month; or
16-1 (b) The first day of the month following the effective dates of
16-2 their respective employment contracts, if those dates are not on the
16-3 first day of a month.
16-4 3. Every officer or employee who is employed by a
16-5 participating [public] local governmental agency on a permanent
16-6 and full-time basis on the date on which the participating local
16-7 governmental agency enters into an agreement to participate in the
16-8 Program[,] pursuant to paragraph (a) of subsection 1 of NRS
16-9 287.025, and every officer or employee who commences his
16-10 employment with that participating local governmental agency
16-11 after that date is eligible to participate in the Program on the first
16-12 day of the month following the completion of 90 days of full-time
16-13 employment.
16-14 4. Every Senator and Assemblyman is eligible to participate in
16-15 the Program on the first day of the month following the 90th day
16-16 after his initial term of office begins.
16-17 5. An officer or employee of the governing body of any
16-18 county, school district, municipal corporation, political subdivision,
16-19 public corporation or other [public] local governmental agency of
16-20 the State of Nevada who retires under the conditions set forth in
16-21 NRS 1A.350 or 1A.480, or 286.510 or 286.620 and was not
16-22 participating in the Program at the time of his retirement is eligible
16-23 to participate in the Program 60 days after notice of the selection to
16-24 participate is given pursuant to NRS 287.023 . [or 287.0235.] The
16-25 Board shall make a separate accounting for these retired persons.
16-26 For the first year following enrollment, the rates charged must be
16-27 the full actuarial costs determined by the actuary based upon the
16-28 expected claims experience with these retired persons. The claims
16-29 experience of these retired persons must not be commingled with
16-30 the retired persons who [were members of] participated in the
16-31 Program before their retirement, nor with active state officers and
16-32 employees [of the State.] who participate in the Program. After the
16-33 first year following enrollment, the rates charged must be the full
16-34 actuarial costs determined by the actuary based upon the past claims
16-35 experience of these retired persons since enrolling.
16-36 6. Notwithstanding the provisions of subsections 1, 3 and 4, if
16-37 the Board does not, pursuant to NRS 689B.580, elect to exclude the
16-38 Program from compliance with NRS 689B.340 to 689B.590,
16-39 inclusive, and if the coverage under the Program is provided by a
16-40 health maintenance organization authorized to transact insurance in
16-41 this state pursuant to chapter 695C of NRS, any affiliation period
16-42 imposed by the Program may not exceed the statutory limit for an
16-43 affiliation period set forth in NRS 689B.500.
17-1 Sec. 24. NRS 287.046 is hereby amended to read as follows:
17-2 287.046 1. Except as otherwise provided in subsection 6, any
17-3 active state [or other participating] officer or employee who elects to
17-4 participate in the Program may participate, and the [department,
17-5 agency, commission or public] participating state agency that
17-6 employs the officer or employee shall pay the State’s share of the
17-7 cost of the premiums or contributions for the program from money
17-8 appropriated or authorized as provided in NRS 287.044.
17-9 [Employees] State officers and employees who elect to participate
17-10 in the Program must authorize deductions from their compensation
17-11 for the payment of premiums or contributions for the Program. Any
17-12 deduction from the compensation of [an] a state officer or employee
17-13 for the payment of a premium or contribution for health insurance
17-14 must be based on the actual cost of providing that health insurance
17-15 after deducting any amount of the premium or contribution which is
17-16 paid by the [department, agency, commission or public]
17-17 participating state agency that employs the employee. As used in
17-18 this subsection, “actual cost” includes any amount which has been
17-19 approved by the Board and which is paid by any [department,
17-20 agency, commission or public agency of this state] participating
17-21 state agency for:
17-22 (a) A program of supplemental insurance;
17-23 (b) Subsidization of premiums or contributions for health
17-24 insurance for dependents and retired participants;
17-25 (c) Administrative costs relating to the provision of the health
17-26 insurance; and
17-27 (d) Costs required to maintain adequate reserves.
17-28 2. The Department of Personnel shall pay a percentage of the
17-29 base amount provided by law for that fiscal year toward the cost of
17-30 the premiums or contributions for the Program for persons who
17-31 have retired [from the service of the State who have continued] with
17-32 state service and who elect to participate in the Program. Except as
17-33 otherwise provided in subsection 3, the percentage to be paid must
17-34 be calculated as follows:
17-35 (a) For those persons who retire before January 1, 1994, 100
17-36 percent of the base amount provided by law for that fiscal year.
17-37 (b) For those persons who retire on or after January 1, 1994,
17-38 with at least 5 years of state service, 25 percent plus an additional
17-39 7.5 percent for each year of state service in excess of 5 years to a
17-40 maximum of 137.5 percent, excluding service purchased pursuant to
17-41 NRS 1A.310 or 286.300, of the base amount provided by law for
17-42 that fiscal year.
17-43 3. If the amount calculated pursuant to subsection 2 exceeds
17-44 the actual premium or contribution for the plan of the Program that
17-45 the retired participant selects, the balance must be credited to the
18-1 Fund for the Public Employees’ Benefits Program created pursuant
18-2 to NRS 287.0435.
18-3 4. For the purposes of subsection 2:
18-4 (a) Credit for service must be calculated in the manner provided
18-5 by chapter 286 of NRS.
18-6 (b) No proration may be made for a partial year of state service.
18-7 5. The Department shall agree through the Board with the
18-8 insurer for billing of remaining premiums or contributions for the
18-9 retired participant and his dependents to the retired participant and
18-10 to his dependents who elect to continue coverage under the Program
18-11 after his death.
18-12 6. A Senator or Assemblyman who elects to participate in the
18-13 Program shall pay the entire premium or contribution for his
18-14 insurance.
18-15 Sec. 25. NRS 287.047 is hereby amended to read as follows:
18-16 287.047 If the retention is consistent with the terms of any
18-17 agreement between the State and the insurance company which
18-18 issued the policies pursuant to the Program or with the plan of
18-19 self-insurance of the Program:
18-20 1. A participating state officer or employee who retires on or
18-21 after July 1, 1985, may retain his membership in and his
18-22 dependents’ coverage by the Program.
18-23 2. A participating Legislator who retires from the service of the
18-24 State or who completes 8 years of service as such may retain his
18-25 membership in and his dependents’ coverage by the Program.
18-26 Sec. 26. NRS 287.0475 is hereby amended to read as follows:
18-27 287.0475 1. A public officer or employee who has retired
18-28 pursuant to NRS 1A.350 or 1A.480, or 286.510 or 286.620, or a
18-29 retirement program provided pursuant to NRS 286.802, or the
18-30 surviving spouse of such a retired public officer or employee who is
18-31 deceased may, in any even-numbered year, reinstate any insurance,
18-32 except life insurance, which was provided to him and his dependents
18-33 at the time of his retirement pursuant to NRS 287.010 , [or] 287.020
18-34 or 287.025 or the program as a public officer or employee by:
18-35 (a) Giving written notice of his intent to reinstate the insurance
18-36 to the [employee’s] last public employer of the public officer or
18-37 employee not later than January 31, of an even-numbered year;
18-38 (b) Accepting the public employer’s current program or plan of
18-39 insurance and any subsequent changes thereto; and
18-40 (c) Paying any portion of the premiums or contributions of the
18-41 public employer’s program or plan of insurance, in the manner set
18-42 forth in NRS 1A.470 or 286.615, which are due from the date of
18-43 reinstatement and not paid by the public employer.
18-44 The last public employer shall give the insurer notice of the
18-45 reinstatement no later than March 31[,] of the year in which the
19-1 public officer or employee or surviving spouse gives notice of his
19-2 intent to reinstate the insurance. The insurer shall approve or
19-3 disapprove the request for reinstatement within 90 days after the
19-4 date of the request.
19-5 2. Reinstatement of insurance excludes claims for expenses for
19-6 any condition for which medical advice, treatment or consultation
19-7 was rendered within [6] 12 months before reinstatement unless[:
19-8 (a) The person has not received any medical advice, treatment or
19-9 consultation for a period of 6 consecutive months after the
19-10 reinstatement; or
19-11 (b) The] the reinstated insurance has been in effect more than 12
19-12 consecutive months.
19-13 Sec. 27. NRS 287.0479 is hereby amended to read as follows:
19-14 287.0479 1. If approved by the Board pursuant to this
19-15 section, a group of not less than 300 active state officers[,] or
19-16 employees or retired state officers or employees, or any
19-17 combination thereof, that participate in the Program may leave the
19-18 Program and secure life, accident or health insurance, or any
19-19 combination thereof, for the group from an:
19-20 (a) Insurer that is authorized by the Commissioner of Insurance
19-21 to provide such insurance; or
19-22 (b) Employee benefit plan, as defined in 29 U.S.C. § 1002(3),
19-23 that has been approved by the Board. The Board may approve an
19-24 employee benefit plan unless the Board finds that the plan is not
19-25 operated pursuant to such sound accounting and financial
19-26 management practices as to ensure that the group will continue to
19-27 receive adequate benefits.
19-28 2. Before entering into a contract with the insurer or approved
19-29 employee benefit plan, the group shall submit the proposed contract
19-30 to the Board for approval. The Board may approve the contract
19-31 unless the departure of the group from the Program would cause an
19-32 increase of more than 5 percent in the costs of premiums or
19-33 contributions for the remaining participants in the Program. In
19-34 determining whether to approve a proposed contract, the Board shall
19-35 follow the criteria set forth in the regulations adopted by the Board
19-36 pursuant to subsection 4 and may consider the cumulative impact of
19-37 groups that have left or are proposing to leave the Program. Except
19-38 as otherwise provided in this section, the Board has discretion in
19-39 determining whether to approve a contract. If the Board approves a
19-40 proposed contract pursuant to this subsection, the group that
19-41 submitted the proposed contract is not authorized to leave the
19-42 Program until 120 days after the date on which the Board approves
19-43 the proposed contract.
19-44 3. The Board shall disburse periodically to the insurer or
19-45 employee benefit plan with which a group contracts pursuant to this
20-1 section the total amount set forth in the contract for premiums or
20-2 contributions for the members of the group for that period but not to
20-3 exceed the amount appropriated to or authorized for the
20-4 [department, agency, commission or public] participating state
20-5 agency that employs the members of the group for premiums or
20-6 contributions for the members of the group for that period, after
20-7 deducting any administrative costs related to the group.
20-8 4. The Board shall adopt regulations establishing the criteria
20-9 pursuant to which the Board will approve proposed contracts
20-10 pursuant to subsection 2.
20-11 Sec. 28. NRS 287.048 is hereby amended to read as follows:
20-12 287.048 NRS 287.0402 to 287.047, inclusive, do not require
20-13 any officer or employee of the State of Nevada to accept or join the
20-14 Program, or to assign his wages or salary [to or authorize deductions
20-15 from his wages or salary] in payment of premiums or contributions
20-16 for the Program.
20-17 Sec. 29. NRS 1A.470 is hereby amended to read as follows:
20-18 1A.470 1. In addition to the options provided in NRS
20-19 287.023 and subject to the requirements of that section, any justice
20-20 of the Supreme Court or district judge who retires under the
20-21 conditions set forth in NRS 1A.350 and, at the time of his
20-22 retirement, was covered or had his dependents covered by any group
20-23 insurance or medical and hospital service established pursuant to
20-24 NRS 287.010 [and 287.020,] , 287.020 or paragraph (b), (c) or (d)
20-25 of subsection 1 of NRS 287.025, has the option of having the
20-26 Executive Officer of the Board deduct and pay his premium or
20-27 contribution for that group insurance or medical and hospital service
20-28 coverage, as well as the amount due or to become due upon any
20-29 obligation designated by the Board pursuant to subsection 2, from
20-30 his monthly retirement allowance until:
20-31 (a) He notifies the Executive Officer of the Board to discontinue
20-32 the deduction; or
20-33 (b) Any of his dependents elect to assume the premium or
20-34 contribution applicable to the dependent’s coverage before the death
20-35 of such a retired justice or judge and continue coverage pursuant to
20-36 NRS 287.023 after his death.
20-37 2. The Board may adopt regulations to carry out the provisions
20-38 of subsection 1, including, without limitation, regulations governing
20-39 the number and types of obligations, amounts for the payment of
20-40 which may be deducted and paid by the Board at the option of the
20-41 retired justice or judge pursuant to this section.
20-42 3. The Executive Officer of the Board, the Board and the
20-43 System are not liable for any damages resulting from errors or
20-44 omissions concerning the deductions and payment of premiums or
21-1 contributions authorized pursuant to this section unless willful
21-2 neglect or gross negligence is proven.
21-3 Sec. 30. NRS 218.6853 is hereby amended to read as follows:
21-4 218.6853 1. The Chief of the Administrative Division is ex
21-5 officio Legislative Fiscal Officer. As such Officer, he shall keep a
21-6 complete, accurate and adequate set of accounting records and
21-7 reports for all legislative operations, including any records and
21-8 reports required by the Federal Government for the administration
21-9 of federal revenue and income tax laws.
21-10 2. The Chief shall withhold from the pay of each Legislator,
21-11 employee of the Legislature and employee of the Legislative
21-12 Counsel Bureau the amount of tax specified by the Federal
21-13 Government and shall transmit the amount deducted to the Internal
21-14 Revenue Service of the United States Department of the Treasury.
21-15 3. The Chief shall, upon receipt of information from the
21-16 Public Employees’ Benefits Program specifying amounts of
21-17 premiums or contributions for coverage by the Program, withhold
21-18 from the pay of each employee of the Legislature and employee of
21-19 the Legislative Counsel Bureau who participates in the Public
21-20 Employees’ Benefits Program those amounts and pay those
21-21 amounts to the Program.
21-22 4. The Chief may provide for the purchase of United States
21-23 savings bonds or similar United States obligations by salary
21-24 deduction for any Legislator, legislative employee or employee of
21-25 the Legislative Counsel Bureau who submits a written request for
21-26 these deductions and purchases. The Chief shall provide forms
21-27 authorizing deductions for and purchases of these United States
21-28 obligations.
21-29 [4.] 5. The Chief may withhold from the pay of a Legislator,
21-30 employee of the Legislature or employee of the Legislative Counsel
21-31 Bureau such amount as the claimant specifies in writing for payment
21-32 to his credit union. Any money which is withheld must be
21-33 transmitted by the Chief in accordance with the claimant’s written
21-34 instructions. The Chief may adopt regulations necessary to carry out
21-35 the provisions of this subsection.
21-36 Sec. 31. Section 49 of chapter 573, Statutes of Nevada 1999,
21-37 at page 3048, is hereby amended to read as follows:
21-38 Sec. 49. 1. This section and sections 41, 47 and 48 of
21-39 this act become effective upon passage and approval.
21-40 2. Sections 1 to 12, inclusive, 13 to 28, inclusive, 30
21-41 to 40, inclusive, 42, 42.7, 47.2, 48.5 and 50 of this act become
21-42 effective on July 1, 1999.
21-43 3. Section 29 of this act becomes effective at 12:01 a.m.
21-44 on July 1, 1999.
22-1 4. Sections 12.5 and 47.3 of this act become effective on
22-2 July 1, 1999, for the purpose of adopting regulations, and on
22-3 January 1, 2001, for all other purposes.
22-4 [5. Section 18 of this act expires by limitation on July 1,
22-5 2003.
22-6 6. Section 42.5 of this act becomes effective on July 1,
22-7 2003.]
22-8 Sec. 32. 1. NRS 287.0235 is hereby repealed.
22-9 2. Section 42.5 of chapter 573, Statutes of Nevada 1999, at
22-10 page 3043, is hereby repealed.
22-11 Sec. 33. 1. This section and sections 1 to 10, inclusive, 12 to
22-12 22, inclusive, and 25 to 31, inclusive, of this act become effective on
22-13 July 1, 2003.
22-14 2. Sections 11, 23, 24 and 32 of this act become effective on
22-15 July 1, 2004.
22-16 TEXT OF REPEALED SECTIONS
22-17 287.0235 Option of certain retired persons to join public
22-18 employees’ benefits program; notification of period of open
22-19 enrollment; approval or disapproval of request for enrollment;
22-20 exclusion of certain claims for expenses.
22-21 1. Notwithstanding the provisions of NRS 287.023 and
22-22 287.045, a person or the surviving spouse of a person who did not,
22-23 at the time of his retirement pursuant to the conditions set forth in
22-24 NRS 286.510 or 286.620, have the option to participate in the
22-25 Public Employees’ Benefits Program may join the Public
22-26 Employees’ Benefits Program, to the extent that such coverage is
22-27 not provided to him or a dependent by the Health Insurance for the
22-28 Aged Act, 42 U.S.C. §§ 1395 et seq., by:
22-29 (a) Providing the Public Employees’ Retirement Board with
22-30 written notice of his intention to enroll in the Public Employees’
22-31 Benefits Program during a period of open enrollment;
22-32 (b) Accepting the current plan of insurance of the Public
22-33 Employees’ Benefits Program and any subsequent changes to the
22-34 plan; and
22-35 (c) Paying any portion of the premiums or contributions for the
22-36 Program in the manner set forth in NRS 286.615, which are due
22-37 after the date of enrollment.
22-38 The Public Employees’ Retirement Board shall, beginning on
22-39 September 1, 1997, have a biennial period of open enrollment
22-40 between September 1 of each odd-numbered year and January 31 of
23-1 each even-numbered year during which eligible retired persons may
23-2 join the Public Employees’ Benefits Program pursuant to this
23-3 section.
23-4 2. The Public Employees’ Retirement Board shall, on or before
23-5 September 1, 1997, and every September 1 of each odd-numbered
23-6 year thereafter, notify eligible retired persons described in
23-7 subsection 1 of the period of open enrollment by:
23-8 (a) Mailing a notice regarding the period of open enrollment to
23-9 all retired persons who are, according to its records, eligible to join
23-10 the Public Employees’ Benefits Program;
23-11 (b) Posting a notice of the period of open enrollment at its
23-12 principal office and at least three other separate prominent places,
23-13 such as a library, community center or courthouse; and
23-14 (c) Publicizing the period of open enrollment in any other
23-15 manner reasonably calculated to inform additional eligible retired
23-16 persons.
23-17 3. The Public Employees’ Retirement Board shall notify the
23-18 Board of the Public Employees’ Benefits Program of the enrollment
23-19 of any person on or before March 1 immediately following the
23-20 period of open enrollment. The Board of the Public Employees’
23-21 Benefits Program shall approve or disapprove the request for
23-22 enrollment within 90 days after receipt of the request. Enrollment
23-23 shall be deemed to occur on the day the request is approved.
23-24 4. Enrollment in the Public Employees’ Benefits Program
23-25 pursuant to this section excludes claims for expenses for any
23-26 condition for which medical advice, treatment or consultation was
23-27 rendered within 12 months before enrollment unless the insurance
23-28 coverage has been in effect more than 12 consecutive months.
23-29 Section 42.5 of chapter 573, Statutes of Nevada 1999:
23-30 Sec. 42.5. Section 18 of this act is hereby amended to
23-31 read as follows:
23-32 Sec. 18. NRS 287.041 is hereby amended to read as
23-33 follows:
23-34 287.041 1. There is hereby created the board of the
23-35 public employees’ benefits program. The board consists
23-36 of seven members appointed as follows:
23-37 (a) One member who is an employee of the University
23-38 and Community College System of Nevada, appointed by
23-39 the governor upon consideration of any recommendations
23-40 of organizations that represent employees of the
23-41 University and Community College System of Nevada.
23-42 (b) One member who is retired from public
23-43 employment, appointed by the governor upon
23-44 consideration of any recommendations of organizations
23-45 that represent retired public employees.
24-1 (c) Two members who are employees of the state,
24-2 appointed by the governor upon consideration of any
24-3 recommendations of organizations that represent state
24-4 employees.
24-5 (d) One member appointed by the governor upon
24-6 consideration of any recommendations of organizations
24-7 that represent employees of local governments that
24-8 participate in the program.
24-9 (e) One member who is employed by this state in a
24-10 managerial capacity and has substantial and demonstrated
24-11 experience in risk management, portfolio investment
24-12 strategies or employee benefits programs appointed by
24-13 the governor. The governor may appoint the executive
24-14 officer of the public employees’ retirement system to fill
24-15 this position.
24-16 (f) The director of the department of administration or
24-17 his designee.
24-18 2. Of the six persons appointed to the board pursuant
24-19 to paragraphs (a) to (e), inclusive, of subsection 1, at least
24-20 one member must have an advanced degree in business
24-21 administration, economics, accounting, insurance, risk
24-22 management or health care administration, and at least
24-23 two members must have education or proven experience
24-24 in the management of employees’ benefits, insurance, risk
24-25 management, health care administration or business
24-26 administration.
24-27 3. Each person appointed as a member of the board
24-28 must:
24-29 (a) Have been a participant in the program for at least 1
24-30 year before his appointment;
24-31 (b) Be a current employee of the State of Nevada or
24-32 another public employer that participates in the program
24-33 or a retired public employee who is a participant in the
24-34 program; and
24-35 (c) Not be an elected officer of the State of Nevada or
24-36 any of its political subdivisions.
24-37 4. Except as otherwise provided in this subsection,
24-38 after the initial terms, the term of an appointed member of
24-39 the board is 4 years and until his successor is appointed
24-40 and takes office unless the member no longer possesses
24-41 the qualifications for appointment set forth in this section
24-42 or is removed by the governor. If a member loses the
24-43 requisite qualifications within the last 12 months of his
24-44 term, the member may serve the remainder of his term.
24-45 Members are eligible for reappointment. A vacancy
25-1 occurring in the membership of the board must be filled in
25-2 the same manner as the original appointment.
25-3 5. The appointed members of the board serve at the
25-4 pleasure of the governor. If the governor wishes to
25-5 remove a member from the board for any reason other
25-6 than malfeasance or misdemeanor, the governor shall
25-7 provide the member with written notice which states the
25-8 reason for and the effective date of the removal.
25-9 H