Senate Bill No. 28–Senator Mathews

 

CHAPTER..........

 

AN ACT relating to programs for public employees; providing that certain money set aside for group insurance for officers and employees of school districts must not be used for other purposes; 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. Chapter 287 of NRS is hereby amended by adding

thereto a new section to read as follows:

    1.  If the governing body of a school district:

    (a) Provides group life, accident or health coverage through a

self-insurance reserve fund as described in paragraph (c) of

subsection 1 of NRS 287.010; or

    (b) Establishes or carries into effect any other system of self-

funded life, accident or health coverage,

any money that is paid toward such coverage by officers and

employees of the school district in the form of contributions,

deductions and premiums, and any money that is set aside by the

school district for the matching of contributions, or for the

defraying of costs pursuant to paragraph (d) of subsection 1 of

NRS 287.010, must be deposited in a trust fund or otherwise held

in trust for the benefit of the officers and employees of the school

district.

    2.  Money that is deposited in a trust fund or otherwise held in

trust pursuant to subsection 1:

    (a) Must be used only for the purpose of funding, maintaining,

operating and administering the program or system of group

insurance;

    (b) Must not be loaned to the school district or the board of

trustees of the school district or its agent or any other

governmental entity; and

    (c) May be invested in any reasonable and prudent manner,

except that such money must not be invested to purchase any

obligations of the school district or the board of trustees of the

school district or its agent. All interest and income earned on the

money in the fund must be deposited in the fund.

    Sec. 2.  NRS 287.040 is hereby amended to read as follows:

    287.040  The provisions of NRS 287.010 to 287.040, inclusive,

and section 1 of this act do not make it compulsory upon any

governing body of any county, school district, municipal

corporation, political subdivision, public corporation or other public

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

 

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