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AB 188

Relating to: reduction of penalty surcharge when certain fines or forfeitures reduced. (FE)

2025-2026 Regular Session Introduced by Elijah Behnke and 8 co-sponsors

AB 188 would restore/expand retiree health subsidies, protect and boost Medicare-based HRAs, ease PEBP reinstatement after gaps, and require interim cost and operations study.

Senator Ratcliff added as a cosponsor
0
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Bill Summary · AB 188

AB 188 — Summary (2025): Public Employees’ Benefits Program (PEBP)

Status: Vetoed by the Governor (June 12, 2025)
Introduced: January 8, 2025 (Assemblymember Max Carter II)
Session: Nevada 83rd Legislature (2025) — Passed both houses; enrolled and delivered to Governor June 5, 2025; vetoed June 12, 2025.

Main purpose and intent

AB 188 would revise PEBP rules to (1) restore or expand retiree health‑benefit subsidies for certain state hires, (2) strengthen protections and improve the Health Reimbursement Arrangement (HRA) for Medicare‑enrolled retirees, (3) ease reinstatement of PEBP coverage after gaps, and (4) require periodic reporting and an interim study of PEBP operations and costs.

Key provisions

  • Restore retiree subsidy eligibility for persons initially hired on or after January 1, 2012, provided they have at least 15 years of state service and continuous PEBP participation since retirement. (Amended language limited credit to state service only; local employers may voluntarily supplement.)
  • Require the PEBP Board to biennially (by Aug. 31 of even‑numbered years) report to the Governor and Legislature on the typical full cost in Nevada for retirees to obtain actuarially comparable Medicare‑based coverage (Medicare Part B, Medigap/supplement, Part D, dental/vision).
  • Prohibit, with limited exceptions, PEBP from capping HRA balances for Medicare/exchange retirees at amounts below a multi‑year benchmark (conceptual language set the floor at roughly five years of maximum HRA contributions — about $15,600 under current rates); prevent routine reversion of HRA funds to the Retirees’ Fund except in specified circumstances.
  • Change reinstatement rules: remove the one‑time gap restriction and allow reinstatement during any open enrollment period; permit PEBP to require evidence of continuous other coverage for reinstatements after the first gap.
  • Require the Joint Interim Standing Committee on Government Affairs to study PEBP customer service and cost‑control issues during the 2025–26 interim.

Fiscal and timeline impacts

  • Earliest date post‑2011 hires could receive restored benefits: January 1, 2027 (15‑year service minimum).
  • Supporter estimates (Nevada Faculty Alliance) projected modest cost: PEBP estimate ~73 additional retirees in FY2027; fiscal estimate ranges — supporter analysis estimated FY2027 cost ~$544,354 (0.02% fringe rate increase), while PEBP’s fiscal note included ~$1.025 million (including administrative staffing and other costs).
  • Senate Amendment No. 980 added a General Fund appropriation ($2,003,655) for FY2027 to partially increase HRA contribution from $13 to $14 per month per year of service; it also raised the State share amounts for FY2027 (from $195 to $210 and $260 to $280 in two subsidy tiers) and explicitly noted the bill contains an unfunded mandate that may affect local governments.

Who supported/opposed / stakeholders

  • Supporters: Nevada Faculty Alliance, AFSCME Retirees Chapter 4041, Retired Public Employees of Nevada (RPEN) — emphasized fairness to post‑2011 hires, adequacy of HRAs, and retention of state staff.
  • PEBP raised fiscal/administrative cost concerns in its fiscal notes.

Procedural notes

  • Passed Assembly (3/20/2025) and Senate (6/2/2025) with amendments; multiple committee amendments and reprints (R1–R3).
  • Contained provisions viewed as an unfunded mandate for some local governments.
  • Enrolled and sent to Governor on June 5, 2025; vetoed June 12, 2025.

Compiled from official sources — confirm details with the bill’s official record.

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