Committee hears bill to remove PEBP quality control officerreporting requirement

The Senate Committee on Government Affairs heard testimony on Senate Bill 32 on Feb. 1, 2025, in a remote hearing with locations in Carson City and Las Vegas. Celestina Glover, executive officer for the Public Employees' Benefits Program (PEBP), told the committee the bill "eliminates the section in the bill or the paragraph in the statute, where the QC officer reports to the director of the Department of Administration." The hearing included proponents and several public witnesses opposing the measure.

Glover said the quality control officer position no longer performs an internal-audit function and has shifted to member-facing work that includes education, plan-document drafting, appeals and complaint navigation. She told senators the agency retains multiple audit and oversight mechanisms, including independent vendor audits, quarterly vendor reviews, annual financial audits, an OPEB valuation and biennial compliance reports delivered to the Interim Retirement and Benefits Committee. "We would continue with the same number of audits," she said in response to a committee question about audit frequency.

Opponents told the committee they feared the change would remove an important independent reporting line. Doug Unger of the Nevada Faculty Alliance described the Alliance's position: "The Nevada Faculty Alliance opposes SB 32 which would change the structure of the quality control officer inside PAB." Marlene Lockhart, who said she helped craft the 2017 change, testified in opposition and urged keeping an independent oversight function outside the agency. Tess Offerman, representing AFSCME Retirees, and Randy Saltero, representing AFSCME, also testified they oppose the bill as written and urged continued external oversight.

Senators asked for more clarity on the 2017 statutory change (introduced as SB 502) that moved reporting and on whether the PEBP board had been consulted. Glover said the BDR process required initial confidentiality and that she has since discussed the proposal with the board chair, who she said voiced no objection; she offered to arrange for the chair to speak to the committee if members wanted direct confirmation.

No committee vote or formal action was taken during the hearing. Committee members and witnesses indicated they expect additional conversations and possible amendments; the committee chair asked staff to share any follow-up communications from the PEBP board with members.