(REPRINTED WITH ADOPTED AMENDMENTS) SECOND REPRINT
Assembly Bill No. 339-Assemblymen de Braga, Segerblom, Neighbors, Chowning, Koivisto, Manendo, Evans, Price, Collins, Parks, Giunchigliani, Amodei, Close, Herrera, Goldwater and Ohrenschall
April 8, 1997
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Referred to Committee on Government Affairs
SUMMARY--Provides for state contribution to cost of certain group insurance or medical and hospital coverage for retired employees of school district. (BDR 23-1047)
FISCAL NOTE: Effect on Local Government: No.
Effect on the State or on Industrial Insurance: Contains Appropriation not included in Executive Budget.
EXPLANATION - Matter in italics is new; matter in brackets [ ] is material to be omitted.
AN ACT relating to public employees; providing for the payment by the state under certain circumstances of a portion of the cost of certain group insurance or medical and hospital service coverage for a retired employee of a school district; making an appropriation; and providing other matters properly relating thereto.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1 The provisions of NRS 287.023, 287.0235, 287.040 and 287.0475 to the contrary notwithstanding:
1. For the fiscal year 1998-1999, the director of the department of administration, based on information provided to him by the public employees' retirement system, shall, to the extent of the appropriation made in section 2 of this act, pay to each school district a pro rata portion of the premium, membership cost or contribution for group insurance or medical and hospital service coverage on behalf of each person who retired from the service of that school district with at least 5 years of service and who is eligible for that coverage pursuant to NRS 287.023, 287.0235, 287.045 or 287.0475. All money received by a school district pursuant to this subsection must:
(a) If the school district self-funds such coverage, be applied by the school district to reduce the premium, membership cost or contribution that would otherwise be paid by the retired person.
(b) If the school district does not self-fund such coverage, be transferred by the school district to the appropriate insurer to reduce the premium, membership cost or contribution that would otherwise be paid by the retired person.
The money received by a school district pursuant to this subsection may not be expended for any other purpose and must not be considered as existing available revenues for the purposes of NRS 288.217.
2. Except as otherwise provided in this subsection, the amount to be paid on behalf of a retired person pursuant to subsection 1 must, to the extent of legislative appropriations, be equal to the monthly base amount of $2.10, multiplied by the number of years of service credited to the retired person, excluding any service purchased pursuant to NRS 286.300. The amount paid must not exceed the actual cost of the coverage selected by the retired person. For the purposes of this subsection:
(a) Credit for service must be calculated in the manner set forth in chapter 286 of NRS.
(b) No proration may be made for a partial year of service.
(c) If the amount of the legislative appropriation for this purpose is less than or exceeds the amount necessary to pay a credit calculated on a monthly base amount of $2.10, the amount of the actual credits must be adjusted proportionally.
(d) If the payment of all or part of the cost of such insurance coverage is currently paid by a school district for retired employees, the amount of the payment required pursuant to this section is in addition to the amount currently paid, not to exceed the actual cost of the coverage selected.
3. The school district, if self-funded, shall apply a credit pursuant to subsection 2 and thereafter bill the remaining premiums, membership costs or contributions for the retired person to the retired person. If the school district is not self-funded, the school district shall enter into an agreement with the insurer for the insurer to apply the credit and thereafter bill the remaining premiums, membership costs or contributions for the retired person to the retired person. If coverage is provided through the state's group insurance program, this agreement must be made through the committee on benefits.
4. Each school district shall set forth separately in the information it submits pursuant to NRS 387.303 to the superintendent of public instruction and the department of taxation:
(a) The actual expenditures made in the prior fiscal year on behalf of persons retired from the service of a school district for the payment of the cost of health insurance pursuant to subsection 1; and
(b) An estimate of the expenditure requirements on behalf of persons retired from the service of a school district for the payment of the cost of health insurance in accordance with subsection 1 for the current fiscal year.
5. For the purposes of preparing the biennial budget request for the distributive school account, the actual expenditures made in the prior fiscal year on behalf of persons retired from the service of a school district for payment of the cost of health insurance and estimates for each of the years in the upcoming biennium must be separately identified.
Sec. 2. 1. There is hereby appropriated from the state general fund to the department of administration, for the fiscal year 1998-1999, the sum of $3,000,000 for the purpose of making the payments required pursuant to section 1 of this act.
2. The money appropriated pursuant to subsection 1 must not be committed for expenditure after June 30, 1999, and reverts to the state general fund as soon as all payments of money committed have been made.
Sec. 3. This act becomes effective on July 1, 1997.