AB249_EN

Assembly Bill No. 249–Committee on
Government Affairs

CHAPTER..........

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; 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:

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

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

Fiscal Officer, who disburses money in payment of salaries and

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

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

specifying amounts, withhold those amounts and pay them to:

[1.] (1) Charitable organizations;

[2.] (2) Employee credit unions;

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

Program has approved the request;

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

insurers;

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

similar obligations of the United States; and

[5.] (5) Employee organizations and labor organizations.

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

Employees’ Benefits Program specifying amounts of premiums or

contributions for coverage by the Program, withhold those

amounts from the salaries or wages of officers and employees who

participate in the Program and pay those amounts to the Program.

2. The State Controller may adopt regulations necessary to

withhold money from the salaries or wages of officers and

employees of the executive department.

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

thereto a new section to read as follows:

The System shall provide to the Public Employees’ Benefits

Program written notice regarding a change in the payment status

of a recipient of benefits provided pursuant to this chapter that

affects the eligibility of the recipient to participate in the Program.

Such notice must be provided by the System to the Program, in a

format agreed upon by the System and the Program, within 30

calendar days after the System is notified of the change in

payment status.

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

286.615 1. In addition to the options provided in NRS

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

or employee of [the governing body of any county, school district,

municipal corporation, political subdivision, public corporation or

other public agency of the State of Nevada,] a governmental entity

enumerated in subsection 1 of NRS 287.023, who retires under the

conditions set forth in NRS 1A.350, 1A.480, 286.510 or 286.620

and, at the time of his retirement, was covered or had his dependents

covered by any group insurance or medical and hospital service

established pursuant to NRS 287.010 [and 287.020,] , 287.020 or

paragraph (b), (c) or (d) of subsection 1 of NRS 287.025, has the

option of having the Executive Officer deduct and pay his premium

or contribution for that [group insurance or medical and hospital

service] coverage, as well as the amount due or to become due upon

any obligation designated by the Board pursuant to subsection 2,

from his monthly retirement allowance until:

(a) He notifies the Executive Officer to discontinue the

deduction; or

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

contribution applicable to the dependent’s coverage before the death

of such a retired person and continue coverage pursuant to NRS

287.023 after his death.

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

of subsection 1, including, but not limited to, regulations governing

the number and types of obligations, amounts for the payment of

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

officer or employee pursuant to this section.

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

any damages resulting from errors or omissions concerning the

deductions and payment of premiums or contributions authorized

pursuant to this section unless willful neglect or gross negligence is

proven.

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

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

Sec. 5. “Participating local governmental agency” means a

county, school district, municipal corporation, political

subdivision, public corporation or other local governmental

agency that has an agreement in effect with the Program pursuant

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

insurance from the Program.

Sec. 6. “Participating public agency” means any

participating local governmental agency and participating state

agency.

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

commission, board, bureau or other agency of the Executive,

Legislative and Judicial Branches of State Government, including,

without limitation, the Public Employees’ Retirement System and

the University and Community College System of Nevada.

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

287.010 1. The governing body of any county, school

district, municipal corporation, political subdivision, public

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

of Nevada may:

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

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

officers and employees, and the dependents of officers and

employees who elect to accept the insurance and who, where

necessary, have authorized the governing body to make deductions

from their compensation for the payment of premiums on the

insurance.

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

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

employees, and the dependents of such officers and employees, as

have authorized the purchase, from insurance companies authorized

to transact the business of such insurance in the State of Nevada,

and, where necessary, deduct from the compensation of officers and

employees the premiums upon insurance and pay the deductions

upon the premiums.

self-insurance reserve fund and, where necessary, deduct

contributions to the maintenance of the fund from the compensation

of officers and employees and pay the deductions into the fund. The

money accumulated for this purpose through deductions from the

compensation of officers and employees and contributions of

the governing body must be maintained as an internal service fund

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

or national bank or credit union authorized to transact business in

the State of Nevada. Any independent administrator of a fund

created under this section is subject to the licensing requirements of

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

contract with an independent administrator must be approved by

the Commissioner of Insurance as to the reasonableness of

administrative charges in relation to contributions collected and

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

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

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

apply to such coverage.

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

insurance fund or of the premiums upon insurance. The money for

contributions must be budgeted for in accordance with the laws

governing the county, school district, municipal corporation,

political subdivision, public corporation or other [public] local

governmental agency of the State of Nevada.

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

employees pursuant to this section, members of the board of trustees

of the school district must not be excluded from participating in the

group insurance. If the amount of the deductions from compensation

required to pay for the group insurance exceeds the compensation to

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

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

287.020 1. The governing body of any county, school

district, municipal corporation, political subdivision, public

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

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

hospital service, or a combination thereof, through nonprofit

membership corporations defraying the cost of medical service or

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

particular class , [(]whether doctors of medicine, doctors of

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

such a nonprofit membership corporation, for the benefit of such of

their officers and employees, and the dependents of such officers

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

corporation and who have authorized the governing body to make

deductions from their compensation for the payment of membership

dues.

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

membership dues may be defrayed by such governing body by

contribution. The money for such contributions must be budgeted

for in accordance with the laws governing such county, school

district, municipal corporation, political subdivision, public

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

of Nevada.

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

rendition of medical or hospital service, or a combination thereof, is

coextensive with the power conferred in NRS 287.010 with respect

to insurance companies.

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

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

section, members of the board of trustees of the school district must

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

the deductions from compensation required to pay for the coverage

exceeds the compensation to which a trustee is entitled, the

difference must be paid by the trustee.

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

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

surviving spouse and any surviving child of a police officer or

fireman who was:

(a) Employed by a public agency that had established group

insurance or medical and hospital service pursuant to NRS 287.010,

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

(b) Killed in the line of duty,

may elect to accept or continue coverage under that group insurance

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

participant or would have been eligible to participate in the group

insurance or medical and hospital service on the date of the death of

the police officer or fireman. If the surviving spouse or child elects

to accept coverage under the group insurance or medical and

hospital service in which the police officer or fireman would have

been eligible to participate or to discontinue coverage under the

group insurance or medical and hospital service in which the police

officer or fireman was a participant, the spouse, child or legal

guardian of the child must notify in writing the public agency that

employed the police officer or fireman within 60 days after the date

of death of the police officer or fireman.

2. The public agency that employed the police officer or

fireman shall pay the entire cost of the premiums or contributions

for the group insurance or medical and hospital service for the

surviving spouse or child who meets the requirements set forth in

subsection 1.

3. A surviving spouse is eligible to receive coverage pursuant

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

surviving child is eligible to receive coverage pursuant to this

section until the child reaches:

(a) The age of 18 years; or

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

student in an accredited university, college or trade school.

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

ascribed to it in NRS 617.135.

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

287.023 1. Whenever an officer or employee of the

governing body of any county, school district, municipal

corporation, political subdivision, public corporation or other

[public] local governmental agency of the State of Nevada retires

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

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

dependents covered by any group insurance or medical and hospital

service established pursuant to NRS 287.010 [and 287.020,] ,

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

287.025, the officer or employee has the option upon retirement to

cancel or continue any such group insurance or medical and hospital

service coverage or join the Public Employees’ Benefits Program to

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

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

2. A retired person who continues coverage under the Public

Employees’ Benefits Program shall assume the portion of the

premium or [membership] contribution costs for the coverage

continued which the governing body does not pay on behalf of

retired officers or employees. A person who joins the Public

Employees’ Benefits Program for the first time upon retirement

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

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

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

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

dependent is not required to continue to receive retirement payments

from the Public Employees’ Retirement System to continue

coverage.

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

Notice of the selection of the option must be given in writing to the

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

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

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

dependents shall be deemed to have selected the option to cancel the

coverage for the group insurance or medical and hospital service

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

Employees’ Benefits Program, as the case may be.

4. The governing body of any county, school district,

municipal corporation, political subdivision, public corporation or

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

cost, or any part of the cost, of group insurance and medical and

hospital service coverage provided pursuant to NRS 287.010,

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

287.025 for persons eligible for that coverage pursuant to subsection

1, but it must not pay a greater portion than it does for its current

officers and employees.

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

287.0235 1. Notwithstanding the provisions of NRS 287.023

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

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

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

to participate in the Public Employees’ Benefits Program may join

the Public Employees’ Benefits Program, to the extent that such

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

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

(a) Providing the Public Employees’ Retirement Board with

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

Benefits Program during a period of open enrollment;

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

enrollment;

(c)] Accepting the current plan of insurance of the Public

Employees’ Benefits Program and any subsequent changes to the

plan; and

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

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

which are due after the date of enrollment.

The Public Employees’ Retirement Board shall, beginning on

September 1, 1997, have a biennial period of open enrollment

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

each even-numbered year during which eligible retired persons may

join the Public Employees’ Benefits Program pursuant to this

section.

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

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

year thereafter, notify eligible retired persons described in

subsection 1 of the period of open enrollment by:

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

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

the Public Employees’ Benefits Program;

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

principal office and at least three other separate prominent places,

such as a library, community center or courthouse; and

manner reasonably calculated to inform additional eligible retired

persons.

3. The Public Employees’ Retirement Board shall notify the

Board of the Public Employees’ Benefits Program of the enrollment

of any person on or before March 1 immediately following the

period of open enrollment. The Board of the Public Employees’

Benefits Program shall approve or disapprove the request for

enrollment within 90 days after receipt of the request. Enrollment

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

4. Enrollment in the Public Employees’ Benefits Program

pursuant to this section excludes claims for expenses for any

condition for which medical advice, treatment or consultation was

rendered within 12 months before enrollment unless[:

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

consultation for a period of 6 consecutive months after enrollment;

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

consecutive months.

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

287.024 1. If a member of the board of trustees of a school

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

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

his term of office, was covered or had his dependents covered by

any group insurance or medical and hospital service established

pursuant to NRS 287.010 [and 287.020,] , 287.020 or paragraph

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

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

continue any such group insurance to the extent that such coverage

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

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

continues coverage under the program of group insurance shall

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

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

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

continue coverage in effect on the date the board member dies.

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

to the board of trustees of the school district within 30 days after the

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

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

board member and his dependents shall be deemed to have selected

the option to cancel the coverage.

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

287.025 1. The governing body of any county, school

district, municipal corporation, political subdivision, public

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

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

287.010 and 287.020:

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

with] the Board of the Public Employees’ Benefits Program to

secure group insurance for its officers and employees and their

dependents by participation in [any group insurance plan established

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

[Each such contract:

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

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

effective for approval.

(b) Does not become effective unless approved by the

Commissioner.

Commissioner of Insurance within 30 days after its submission.

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

district, municipal corporation, political subdivision, public

corporation or other local governmental agency of the State of

Nevada to secure group insurance for its officers and employees

and their dependents by participation in any group insurance plan

established or to be established by the other local governmental

agency.

insurance for its officers and employees and their dependents,

participate as a member of a nonprofit cooperative association or

nonprofit corporation that has been established in this state to secure

such insurance for its members from an insurer licensed pursuant to

the provisions of title 57 of NRS.

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

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

association or nonprofit corporation that has been established in this

state to:

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

medical services to its members’ officers and employees and their

dependents and for related administrative services.

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

information to its members’ officers and employees and their

dependents.

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

of subsection 1:

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

approval not less than 30 days before the date on which the

contract is to become effective.

(b) Does not become effective unless approved by the

Commissioner of Insurance.

the Commissioner of Insurance within 30 days after its

submission.

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

287.030 No provisions of law prohibiting, restricting or

limiting the assignment of or order for wages or salary shall be

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

enumerated in NRS 287.010 [and 287.020,] , 287.020 or 287.025

nor the right and power of officers or employees to authorize and

approve payment of premiums or contributions by wage and salary

deductions.

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

287.040 The provisions of NRS 287.010 to 287.040, inclusive,

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

school district, municipal corporation, political subdivision, public

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

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

any contributions for the payment of any premiums or other costs

for group insurance or medical or hospital services, or upon any

officer or employee of any county, school district, municipal

corporation, political subdivision, public corporation or other

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

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

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

premiums or contributions therefor.

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

287.0402 As used in NRS 287.0402 to 287.049, inclusive, and

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

the words and terms defined in NRS 287.0404 and 287.0406 and

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

those sections.

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

287.043 1. The Board shall:

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

Employees’ Benefits Program which:

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

health insurance, or any combination of these; and

(2) May include a program to reduce taxable compensation

or other forms of compensation other than deferred

compensation,

for the benefit of all state officers and employees and other persons

who participate in the Program.

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

basis and operated in accordance with sound insurance and business

practices.

2. In establishing and carrying out the Program, the Board

shall:

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

rates and coverage for active and retired state officers and

employees and their dependents, commingle the claims experience

of such active and retired officers and employees and their

dependents.

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

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

287.025 with the governing body of any [public agency enumerated

in NRS 287.010] county, school district, municipal corporation,

political subdivision, public corporation or other local

governmental agency of the State of Nevada that wishes to obtain

group insurance for its active and retired officers[, employees and

retired] and employees and their dependents by participation in the

Program. The Board shall establish separate rates and coverage for

those active and retired officers[, employees and retired] and

employees and their dependents based on actuarial reports.

public notice in writing of any proposed changes in rates or

coverage to each participating public [employer who] agency that

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

days before the effective date of the changes.

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

contribution charged for , or coverage of , health insurance, provide

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

employees, retired employees and other persons who participate in

the Program who may be affected by the proposed change.]

participating active and retired public officers and employees. The

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

officer, employee, retired employee or other person] on which a

participating active or retired public officer or employee is required

to select or change his policy of health insurance.

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

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

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

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

coverage through a plan of self-insurance established pursuant to

NRS 287.0433 for the benefit of all eligible active and retired

public officers[, employees and retired] and employees who

participate in the Program.

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

establish other employee benefits as necessary.

(g) Investigate and approve or disapprove any contract proposed

pursuant to NRS 287.0479.

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

necessary to carry out the provisions of NRS 287.0402 to 287.049,

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

limitation, the establishment of:

(1) Fees for applications for participation in the Program and

for the late payment of premiums or contributions;

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

[public agencies enumerated in NRS 287.010;] local governmental

agencies that wish to enter or reenter the Program pursuant to

paragraph (a) of subsection 1 of NRS 287.025;

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

officers and employees of participating public agencies;

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

Program may leave the Program pursuant to NRS 287.0479 and

conditions and procedures for reentry into the Program by those

participants; and

(5) Specific procedures for the determination of contested

claims.

(i) Appoint an independent certified public accountant. The

accountant shall:

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

(2) Report to the Board and the Interim Retirement and

Benefits Committee of the Legislature created pursuant to

NRS 218.5373.

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

The attorney shall:

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

whether the Program complies with federal and state laws relating to

taxes and employee benefits; and

(2) Report to the Board and the Interim Retirement and

Benefits Committee of the Legislature created pursuant to

NRS 218.5373.

3. The Board shall submit an annual report regarding the

administration and operation of the Program to the Director of

the Legislative Counsel Bureau not more than 6 months before the

Board establishes rates and coverage for members for the following

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

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

plan year for the claims of active and retired state officers and

employees[;] who participated in the Program; and

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

plan year for the claims of retired members of the Program who

were provided coverage for medical or hospital service, or both, by

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

a plan that provides similar coverage.

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

and shall use the services of the Purchasing Division of the

Department of Administration to establish and carry out the

Program.

5. The Board may make recommendations to the Legislature

concerning legislation that it deems necessary and appropriate

regarding the Program.

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

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

obligation of the Program other than indemnification of the Board

and its employees against liability relating to the administration of

the Program, subject to the limitations specified in NRS 41.0349.

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

form of compensation provided to a public employee except federal

benefits, wages earned, legal holidays, deferred compensation and

benefits available pursuant to chapter 286 of NRS.

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

287.0434 The Board may:

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

members and covered dependents, to pay its employees’ salaries and

to pay administrative and other expenses.

2. Enter into contracts relating to the administration of the

Program, including, without limitation, contracts with licensed

administrators and qualified actuaries. Each such contract with a

licensed administrator:

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

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

effective for approval as to the reasonableness of administrative

charges in relation to contributions collected and benefits provided.

(b) Does not become effective unless approved by the

Commissioner.

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

3. Enter into contracts with physicians, surgeons, hospitals,

health maintenance organizations and rehabilitative facilities for

medical, surgical and rehabilitative care and the evaluation,

treatment and nursing care of members and covered dependents.

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

unless:

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

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

organization or through separate action of the Board.

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

commingled claims experience of active and retired state officers

and employees and their dependents.

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

specialists as required by the Program.

5. Charge and collect from an insurer, health maintenance

organization, organization for dental care or nonprofit medical

service corporation, a fee for the actual expenses incurred by the

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

administering a plan of insurance offered by that insurer,

organization or corporation.

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

287.0439 1. A participating public [employer shall, on

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

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

employee of the participating public agency or a dependent of

such an employee that affects the eligibility of the employee or

dependent to participate in the Program. Such notice must be

provided to the Program, on a form prescribed by the Program,

within 15 calendar days after the participating public agency is

notified or otherwise becomes aware of the change in status.

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

the provisions of this chapter.

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

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

public [employer] agency concerning the information[.

2.] required pursuant to this section.

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

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

the Board and its employees and agents to obtain any information

necessary for the administration of the Program, including, without

limitation, the accuracy of the payroll and identity of employees.

4. A participating public agency shall reimburse the Program

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

as a result of the failure of the participating public agency to

furnish the notice required pursuant to paragraph (a) of

subsection 1. The participating public agency shall not require any

employee or his dependent to reimburse the participating public

agency for the amount of any premium or contribution for which

the participating public agency is liable to the Program pursuant

to this subsection.

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

287.044 1. A part of the cost of the premiums or

contributions for [that] group insurance[,] provided by the

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

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

state officer, except a Senator or Assemblyman, or employee

electing to participate in the Program, may be paid by the

[department, agency, commission or public] participating state

agency which employs the officer or employee in whose behalf that

part is paid from money appropriated to or authorized for that

[department, agency, commission or public] participating state

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

premiums or contributions must not exceed the amounts specified

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

dependents, whenever this option is made available by the Board,

except as otherwise provided in NRS 287.021 and 287.0477, he

must pay the difference between the amount of the premium or

contribution for the coverage for himself and his dependents and the

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

the officer or employee.

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

state agency shall not pay any part of those premiums or

contributions if the group life insurance or group accident or health

insurance is not approved by the Board.

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

287.0445 The [department, agency, commission or public]

participating state agency which employed [an] a state officer or

employee who:

1. Was injured in the course of that employment;

2. Receives compensation for a temporary total disability

pursuant to NRS 616C.475; and

3. Was a member of the Program at the time of the

injury,

shall pay the State’s share of the cost of the premiums or

contributions for the Program for that officer or employee for not

more than 9 months after the injury or until the officer or employee

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

recurs within 1 month after the employee returns to work and the

employee again receives compensation pursuant to NRS 616C.475

as a result of the previous injury, the [department, agency,

commission or public] participating state agency shall not, except

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

cost of the premiums or contributions for the period during which

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

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

[department, agency, commission or public] participating state

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

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

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

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

287.045 1. Except as otherwise provided in this section,

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

participate in the Program on the first day of the month following

the completion of 90 days of full-time employment.

2. Professional employees of the University and Community

College System of Nevada who have annual employment contracts

are eligible to participate in the Program on:

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

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

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

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

first day of a month.

3. Every officer or employee who is employed by a

participating [public] local governmental agency on a permanent

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

governmental agency enters into an agreement to participate in the

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

287.025, and every officer or employee who commences his

employment with that participating local governmental agency

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

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

employment.

4. Every Senator and Assemblyman is eligible to participate in

the Program on the first day of the month following the 90th day

after his initial term of office begins.

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

county, school district, municipal corporation, political subdivision,

public corporation or other [public] local governmental agency of

the State of Nevada who retires under the conditions set forth in

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

participating in the Program at the time of his retirement is eligible

to participate in the Program 60 days after notice of the selection to

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

Board shall make a separate accounting for these retired persons.

For the first year following enrollment, the rates charged must be

the full actuarial costs determined by the actuary based upon the

expected claims experience with these retired persons. The claims

experience of these retired persons must not be commingled with

the retired persons who [were members of] participated in the

Program before their retirement, nor with active state officers and

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

first year following enrollment, the rates charged must be the full

actuarial costs determined by the actuary based upon the past claims

experience of these retired persons since enrolling.

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

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

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

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

health maintenance organization authorized to transact insurance in

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

imposed by the Program may not exceed the statutory limit for an

affiliation period set forth in NRS 689B.500.

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

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

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

participate in the Program may participate, and the [department,

agency, commission or public] participating state agency that

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

cost of the premiums or contributions for the program from money

appropriated or authorized as provided in NRS 287.044.

[Employees] State officers and employees who elect to participate

in the Program must authorize deductions from their compensation

for the payment of premiums or contributions for the Program. Any

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

for the payment of a premium or contribution for health insurance

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

after deducting any amount of the premium or contribution which is

paid by the [department, agency, commission or public]

participating state agency that employs the employee. As used in

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

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

agency, commission or public agency of this state] participating

state agency for:

(a) A program of supplemental insurance;

(b) Subsidization of premiums or contributions for health

insurance for dependents and retired participants;

insurance; and

(d) Costs required to maintain adequate reserves.

2. The Department of Personnel shall pay a percentage of the

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

the premiums or contributions for the Program for persons who

have retired [from the service of the State who have continued] with

state service and who elect to participate in the Program. Except as

otherwise provided in subsection 3, the percentage to be paid must

be calculated as follows:

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

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

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

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

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

maximum of 137.5 percent, excluding service purchased pursuant to

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

that fiscal year.

3. If the amount calculated pursuant to subsection 2 exceeds

the actual premium or contribution for the plan of the Program that

the retired participant selects, the balance must be credited to the

Fund for the Public Employees’ Benefits Program created pursuant

to NRS 287.0435.

4. For the purposes of subsection 2:

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

by chapter 286 of NRS.

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

5. The Department shall agree through the Board with the

insurer for billing of remaining premiums or contributions for the

retired participant and his dependents to the retired participant and

to his dependents who elect to continue coverage under the Program

after his death.

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

Program shall pay the entire premium or contribution for his

insurance.

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

287.047 If the retention is consistent with the terms of any

agreement between the State and the insurance company which

issued the policies pursuant to the Program or with the plan of

self-insurance of the Program:

1. A participating state officer or employee who retires on or

after July 1, 1985, may retain his membership in and his

dependents’ coverage by the Program.

2. A participating Legislator who retires from the service of the

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

membership in and his dependents’ coverage by the Program.

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

287.0475 1. A public officer or employee who has retired

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

retirement program provided pursuant to NRS 286.802, or the

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

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

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

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

or 287.025 or the program as a public officer or employee by:

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

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

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

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

insurance and any subsequent changes thereto; and

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

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

reinstatement and not paid by the public employer.

The last public employer shall give the insurer notice of the

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

public officer or employee or surviving spouse gives notice of his

intent to reinstate the insurance. The insurer shall approve or

disapprove the request for reinstatement within 90 days after the

date of the request.

2. Reinstatement of insurance excludes claims for expenses for

any condition for which medical advice, treatment or consultation

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

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

consultation for a period of 6 consecutive months after the

reinstatement; or

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

consecutive months.

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

287.0479 1. If approved by the Board pursuant to this

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

employees or retired state officers or employees, or any

combination thereof, that participate in the Program may leave the

Program and secure life, accident or health insurance, or any

combination thereof, for the group from an:

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

to provide such insurance; or

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

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

employee benefit plan unless the Board finds that the plan is not

operated pursuant to such sound accounting and financial

management practices as to ensure that the group will continue to

receive adequate benefits.

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

employee benefit plan, the group shall submit the proposed contract

to the Board for approval. The Board may approve the contract

unless the departure of the group from the Program would cause an

increase of more than 5 percent in the costs of premiums or

contributions for the remaining participants in the Program. In

determining whether to approve a proposed contract, the Board shall

follow the criteria set forth in the regulations adopted by the Board

pursuant to subsection 4 and may consider the cumulative impact of

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

as otherwise provided in this section, the Board has discretion in

determining whether to approve a contract. If the Board approves a

proposed contract pursuant to this subsection, the group that

submitted the proposed contract is not authorized to leave the

Program until 120 days after the date on which the Board approves

the proposed contract.

3. The Board shall disburse periodically to the insurer or

employee benefit plan with which a group contracts pursuant to this

section the total amount set forth in the contract for premiums or

contributions for the members of the group for that period but not to

exceed the amount appropriated to or authorized for the

[department, agency, commission or public] participating state

agency that employs the members of the group for premiums or

contributions for the members of the group for that period, after

deducting any administrative costs related to the group.

4. The Board shall adopt regulations establishing the criteria

pursuant to which the Board will approve proposed contracts

pursuant to subsection 2.

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

287.048 NRS 287.0402 to 287.047, inclusive, do not require

any officer or employee of the State of Nevada to accept or join the

Program, or to assign his wages or salary [to or authorize deductions

from his wages or salary] in payment of premiums or contributions

for the Program.

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

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

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

of the Supreme Court or district judge who retires under the

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

retirement, was covered or had his dependents covered by any group

insurance or medical and hospital service established pursuant to

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

of subsection 1 of NRS 287.025, has the option of having the

Executive Officer of the Board deduct and pay his premium or

contribution for that group insurance or medical and hospital service

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

obligation designated by the Board pursuant to subsection 2, from

his monthly retirement allowance until:

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

the deduction; or

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

contribution applicable to the dependent’s coverage before the death

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

NRS 287.023 after his death.

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

of subsection 1, including, without limitation, regulations governing

the number and types of obligations, amounts for the payment of

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

retired justice or judge pursuant to this section.

3. The Executive Officer of the Board, the Board and the

System are not liable for any damages resulting from errors or

omissions concerning the deductions and payment of premiums or

contributions authorized pursuant to this section unless willful

neglect or gross negligence is proven.

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

218.6853 1. The Chief of the Administrative Division is ex

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

complete, accurate and adequate set of accounting records and

reports for all legislative operations, including any records and

reports required by the Federal Government for the administration

of federal revenue and income tax laws.

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

employee of the Legislature and employee of the Legislative

Counsel Bureau the amount of tax specified by the Federal

Government and shall transmit the amount deducted to the Internal

Revenue Service of the United States Department of the Treasury.

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

Public Employees’ Benefits Program specifying amounts of

premiums or contributions for coverage by the Program, withhold

from the pay of each employee of the Legislature and employee of

the Legislative Counsel Bureau who participates in the Public

Employees’ Benefits Program those amounts and pay those

amounts to the Program.

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

savings bonds or similar United States obligations by salary

deduction for any Legislator, legislative employee or employee of

the Legislative Counsel Bureau who submits a written request for

these deductions and purchases. The Chief shall provide forms

authorizing deductions for and purchases of these United States

obligations.

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

employee of the Legislature or employee of the Legislative Counsel

Bureau such amount as the claimant specifies in writing for payment

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

transmitted by the Chief in accordance with the claimant’s written

instructions. The Chief may adopt regulations necessary to carry out

the provisions of this subsection.

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

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

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

this act become effective upon passage and approval.

2. Sections 1 to 12, inclusive, 13 to 28, inclusive, 30

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

effective on July 1, 1999.

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

on July 1, 1999.

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

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

January 1, 2001, for all other purposes.

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

2003.

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

2003.]

Sec. 32. 1. NRS 287.0235 is hereby repealed.

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

page 3043, is hereby repealed.

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

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

July 1, 2003.

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

July 1, 2004.

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