Assembly Bill No. 459--Assemblymen Bache, Ernaut, 
    Carpenter, Anderson, Neighbors, Giunchigliani, 
    Lambert, Arberry, Dini, de Braga, Fettic, 
    Goldwater, Marvel and Spitler

                  CHAPTER........

AN ACT relating to the program of deferred compensation for state 
       employees; making various changes regarding the committee 
       established to administer the program; limiting the 
       authority to make withdrawals from 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.  Chapter 287 of NRS is hereby 
amended by adding thereto the provisions set forth as 
sections 2 and 3 of this act.
  Sec. 2.  \1.  The governor shall appoint a 
committee to administer the program. The committee must 
consist of:
  (a) Three members who are employed by state agencies whose 
payrolls are administered by the department of personnel;
  (b) One member who is employed by a state agency whose 
payroll is administered by an entity other than the 
department of personnel; and
  (c) One member who has retired from employment by the 
state or the University and Community College System of 
Nevada.
Each member of the committee must be a participant in the 
program, have participated in the program for not less than 
2 years and have been nominated for membership by five or 
more persons who have each participated in the program for 
not less than 6 months.
  2.  After their initial terms, members of the committee 
serve terms of 4 years or until their successors have been 
appointed and have qualified.
  3.  A vacancy on the committee occurs when a member dies, 
resigns or becomes ineligible for membership on the 
committee. A person becomes ineligible for membership on the 
committee when:
  (a) He ceases to be a participant in the program; or
  (b) Except as otherwise provided in this paragraph, he 
ceases to have the qualifications for membership required by 
the paragraph of subsection 1 under which he was appointed. 
A member of the committee who ceases to have those 
qualifications may serve the remainder of his term if that 
period does not exceed 24 months.
  4.  For the purposes of this section, "participant in the 
program" means a person who is:
  (a) Deferring compensation pursuant to the program;
  (b) Maintaining deferred compensation in the program; or
  (c) Receiving payments of deferred compensation pursuant 
to the program.\\
  Sec. 3.  \No money may be withdrawn or 
appropriated from the program, except:
  1.  For payment to a participant or beneficiary of a 
participant pursuant to the terms of the program;
  2.  In the amount required to pay the necessary expenses 
of administering the program; or
  3.  As specifically authorized by federal law or 
regulation or by a special act of the legislature.\\
  Sec. 4.  NRS 287.250 is hereby amended to read 
as follows:
  287.250  As used in NRS 287.250 to 287.370, inclusive, 
\and sections 2 and 3 of this act,\\ unless the 
context otherwise requires, the words and terms defined in 
NRS 287.260 to 287.310, inclusive, have the meanings 
ascribed to them in those sections.
  Sec. 5.  NRS 287.330 is hereby amended to read 
as follows:
  287.330  1.  The [governor shall appoint a committee, 
which must include the attorney general or his designee, to 
administer the program.] \committee shall:
  (a) At its first meeting each year, designate one of its 
members to serve as chairman of the committee for a term of 
1 year or until his successor has been designated.
  (b) Act in such a manner as to promote the collective best 
interests of the participants in the program.
  2.\\  The committee may:
  (a) Create an appropriate account for administration of 
money and other assets resulting from compensation deferred 
pursuant to the program.
  (b) With the approval of the governor, delegate to one or 
more state agencies or institutions of the University and 
Community College System of Nevada the responsibility for 
administering the program for their respective employees, 
including:
    (1) Collection of deferred compensation;
    (2) Transmittal of money collected to depositories 
within the state designated by the committee; and
    (3) Payment of deferred compensation to participating 
employees.
  (c) Contract with a private person, corporation, 
institution or other entity, directly or through a state 
agency or institution of the University and Community 
College System of Nevada, for services necessary to the 
administration of the plan, including \,\\ without 
limitation:
    (1) Consolidated billing;
    (2) The keeping of records for each participating 
employee and the program;
    (3) The purchase, control and safeguarding of assets;
    (4) Programs for communication with employees; and
    (5) The administration and coordination of the program.
  [2.] \3.\\  The committee and its individual 
members are not liable for any decision relating to 
investments if the committee has:
  (a) Obtained the advice of qualified counsel on 
investments \.\\ [;]
  (b) Established proper objectives and policies relating to 
investments \.\\ [; and
  (c) Exercised that degree of care and judgment which 
persons of ordinary prudence and reasonable discretion 
exercise in the management of their own affairs, considering 
probable income as well as the probable safety of their 
capital.]
  \(c) Discharged its duties regarding the decision:
    (1) Solely in the interest of the participants in the 
program; and
    (2) With the care, skill, prudence and diligence that, 
under the circumstances existing at the time of the 
decision, a prudent person who is familiar with similar 
investments would use while acting in a similar capacity in 
conducting an enterprise of similar character and 
purpose.
  (d) Selected at least two plans from separate and distinct 
providers from which the participants in the program may 
choose.
  (e) Solicited proposals from qualified providers of plans 
in January of each odd-numbered year.\\
  Sec. 6.  1.  The terms of the members of the 
committee established pursuant to NRS 287.330 who are 
serving on September 30, 1995, expire on that date.
  2.  As soon as practicable after the effective date of 
this section, the governor shall appoint to the committee 
established pursuant to section 2 of this act:
  (a) One of the members required pursuant to paragraph (a) 
of subsection 1 of that section to an initial term that 
commences on October 1, 1995, and expires on September 30, 
1999.
  (b) One of the members required pursuant to paragraph (a) 
of subsection 1 of that section, and the member required 
pursuant to paragraph (b) of subsection 1 of that section to 
initial terms that commence on October 1, 1995, and expire 
on September 30, 1998.
  (c) One of the members required pursuant to paragraph (a) 
of subsection 1 of that section, and the member required 
pursuant to paragraph (c) of subsection 1 of that section, 
to initial terms that commence on October 1, 1995, and 
expire on September 30, 1997.
  Sec. 7.  1.  This section and section 6 of 
this act become effective upon passage and approval.
  2.  Sections 1 to 5, inclusive, of this act become 
effective on October 1, 1995.

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