Assembly Bill No. 263–Committee on Ways and Means

 

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AN ACT relating to public employees’ benefits; reducing the number of days of notice that participants in the Public Employees’ Benefits Program must be given before being required to select or change a policy of health insurance that will result in a change in premiums or coverage; 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 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 with the governing body of any public agency

 enumerated in NRS 287.010 that wishes to obtain group insurance

 for its officers, employees and retired employees by participation in

 the Program. The Board shall establish separate rates and coverage

 for those officers, employees and retired employees based on

 actuarial reports.

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

 public notice in writing of any proposed changes in rates or

 coverage to each participating public employer who 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 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. The notice must be provided at

 least [60] 30 days before the date a state officer, employee, retired

 employee or other person 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 public

 officers, employees and retired 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, 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;

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

 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 year. The report must include, without limitation:

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

 year for the claims of active and retired state officers and

 employees; and

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

 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 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. 2.  This act becomes effective upon passage and approval.

 

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