1| STATE OF OKLAHOMA |
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2| 1st Session of the 59th Legislature (2023) |
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3|HOUSE BILL 2022 By: Wolfley |
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5| |
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6| AS INTRODUCED |
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7| An Act relating to schools; amending 70 O.S. 2021, |
| Sections 26-103, 26-104, and 26-105, which relate to |
8| the Larry Dickerson Education Flexible Benefits |
| Allowance Act; clarifying definition; adding |
9| definition for dependent; providing appropriation for |
| flexible benefit allowance to include school district |
10| employee dependents; modifying calculation for |
| appropriation amount; providing for disbursement of |
11| funds; modifying benefit election procedure; |
| prescribing additional monthly amount of flexible |
12| benefit allowance for health care coverage for |
| dependents; and providing an effective date. |
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16|BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: |
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17| SECTION 1. AMENDATORY 70 O.S. 2021, Section 26-103, is |
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18|amended to read as follows: |
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19| Section 26-103. The following words and phrases as used in |
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20|Section 26-101 et seq. of this title, unless a different meaning is |
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21|clearly required by the context, shall have the following meanings: |
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22| 1. "Benefit" means any of the benefits which may be purchased |
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23|or are required to be purchased under the cafeteria plan; |
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1| 2. "Cafeteria plan" means a benefit plan established pursuant |
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2|to 26 U.S.C. Section 125; |
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3| 3. "Flexible benefit allowance" means amounts credited by the |
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4|school district for each school district employee for the purchase |
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5|of benefits under the cafeteria plan; |
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6| 4. "Support personnel" means full-time employees of a school |
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7|district as determined by the standard period of labor which is |
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8|customarily understood to constitute full-time employment for the |
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9|type of services performed by the employees who are employed a |
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10|minimum of six (6) hours per day for a minimum of one hundred |
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11|seventy-two (172) days or a minimum of six (6) hours per day for a |
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12|minimum of one thousand thirty-two (1,032) hours per year and who |
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13|provide services not performed by certified personnel, which is |
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14|necessary for the efficient and satisfactory functioning of a school |
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15|district, and shall include cooks, janitors, maintenance personnel, |
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16|bus drivers, noncertified or nonregistered nurses, noncertified |
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17|librarians, and clerical employees of a school district but shall |
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18|not include adult education instructors or adult coordinators |
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19|employed by technology center school districts; |
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20| 5. "Plan year" means the twelve-month period established by the |
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21|school district for the cafeteria plan; |
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22| 6. "School district" means the public school districts and |
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23|technology center school districts of this state; |
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24| |
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1| 7. "School district employee" means certified personnel or |
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2|support personnel as defined in Section 26-101 et seq. of this title |
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3|section. Employees of an educational service provider contracted |
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4|with a school district pursuant to subsection G of Section 5-117 of |
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5|this title who perform functions that would otherwise be performed |
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6|by a school district employee shall be considered employees of a |
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7|school district for purposes of the Larry Dickerson Education |
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8|Flexible Benefits Allowance Act unless otherwise provided for in the |
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9|contract between the educational service provider and the |
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10|contracting school district; |
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11| 8. "Certified personnel" means a certified person employed on a |
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12|full-time basis to serve as a teacher, principal, supervisor, |
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13|administrator, counselor, librarian, or certified or registered |
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14|nurse, but shall not mean a superintendent of a school district; and |
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15| 9. "Self-insured" means a health care program in which the |
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16|school district funds the benefit plans from its own resources |
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17|without purchasing insurance and which may be administered by the |
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18|school district or by an outside administrator under contract with |
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19|the school district for administrative services. The State Board of |
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20|Education shall prepare by May 1st of each year a list of each |
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21|school district in the state that is self-insured and the number of |
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22|support personnel and the number of certified personnel that are |
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23|participating in each self-insured school district plan; and |
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1| 10. "Dependent" means a spouse, an unmarried child under |
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2|eighteen (18) years of age, an unmarried child who is under |
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3|twenty-six (26) years of age and who is financially dependent upon |
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4|the parent, and an unmarried child of any age who is medically |
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5|certified as disabled and dependent upon the parent. A person shall |
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6|only be considered a dependent if he or she does not have subsidized |
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7|coverage available from another source. |
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8| SECTION 2. AMENDATORY 70 O.S. 2021, Section 26-104, is |
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9|amended to read as follows: |
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10| Section 26-104. A. Each fiscal year, the Legislature shall |
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11|appropriate adequate funding to the State Board of Education and the |
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12|State Board of Career and Technology Education for the purpose of |
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13|providing a flexible benefit allowance to school district employees |
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14|and their dependents pursuant to this act. Unless the Legislature |
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15|appropriates adequate funding specifically for the purpose of |
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16|providing a flexible benefit allowance to school district employees |
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17|and their dependents, the Oklahoma State Board of Education shall |
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18|allocate from the funds appropriated to the Oklahoma State Board of |
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19|Education for the support of public school activities an amount to |
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20|fully fund the flexible benefit allowance, which shall occur first |
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21|prior to allocating the funds for any other purpose. The amount |
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22|appropriated for funding and disbursed to school districts shall be |
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23|calculated by multiplying the number of eligible school district |
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24|employees employed by school districts which are participating in |
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1|the health insurance plan offered by the State and Education |
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2|Employees Group Insurance Board or are self-insured as counted in |
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3|February of each year and their dependents by the amount of the |
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4|flexible benefit allowance credited to the eligible school employees |
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5|as established in pursuant to Section 26-105 of this title. Each |
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6|Board shall disburse the total amount appropriated for funding the |
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7|flexible benefit allowance to school districts during the fiscal |
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8|year. From the total amount appropriated, each Board shall disburse |
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9|the appropriate amounts, based on the number of eligible school |
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10|district employees employed by that school district and their |
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11|respective dependents, to each school district. |
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12| B. Every school district shall establish or make available to |
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13|school district employees a cafeteria plan pursuant to 26 U.S.C. |
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14|Section 125 of the United States Code. The plan shall offer, as a |
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15|benefit, major medical health care plan coverage. |
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16| C. The flexible benefit allowance amount established pursuant |
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17|to Section 26-105 of this title shall be credited to each eligible |
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18|school district employee. School district employees shall elect |
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19|whether to use the flexible benefit allowance to pay for coverage |
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20|for themselves and their dependents in the health insurance plan |
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21|offered by the State and Education Employees Group Insurance Board |
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22|or the self-insured plan offered by the school district and may |
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23|receive the excess flexible benefit allowance as taxable |
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24|compensation as provided in Section 26-105 of this title. |
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1| D. The administrator of the cafeteria plan shall maintain a |
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2|separate account for each participating school district employee. |
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3|School districts shall forward the school district employee flexible |
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4|benefit allowance amounts to the administrator for elected purchases |
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5|of cafeteria plan benefits. |
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6| E. Expenses included in an employee's salary adjustment |
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7|agreement pursuant to the cafeteria plan shall be limited to |
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8|expenses for: |
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9| 1. Premiums for any health insurance, health maintenance |
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10|organization, life insurance, long term disability insurance, dental |
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11|insurance or high deductible health benefit plan offered to |
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12|employees and their dependents; and |
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13| 2. All other eligible benefit programs offered under 26 U.S.C. |
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14|Section 125 of the United States Code. |
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15| F. The flexible benefit allowance amount established in Section |
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16|26-105 of this title shall not be included as income in computation |
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17|of state retirement contributions and benefits or as part of the |
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18|Minimum Salary Schedule for teachers established in Section |
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19|18-114.12 18-114.14 of this title. School districts shall not |
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20|consider the flexible benefit allowance amount as income for |
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21|eligible support employees and thereby shall not reduce the salary |
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22|of an eligible support employee. |
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23| SECTION 3. AMENDATORY 70 O.S. 2021, Section 26-105, is |
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24|amended to read as follows: |
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1| Section 26-105. A. The flexible benefit allowance shall be |
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2|used by a school district employee who is participating in the |
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3|cafeteria plan to purchase major medical health care plan coverage |
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4|offered by the school district through a cafeteria plan. Any excess |
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5|flexible benefit allowance over the cost of the major medical |
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6|coverage purchased by the employee who is participating in the |
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7|cafeteria plan may be used to purchase any of the additional |
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8|benefits offered by the school district or may be taken as taxable |
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9|compensation as provided in subsection C of this section. Certified |
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10|personnel who choose not to participate in the |
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11|school-district-sponsored cafeteria plan shall receive Sixty-nine |
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12|Dollars and seventy-one cents ($69.71) per month as taxable |
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13|compensation in lieu of the flexible benefit allowance amount |
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14|provided in subsection B of this section. Support personnel who |
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15|choose not to participate in the school-district-sponsored cafeteria |
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16|plan shall receive One Hundred Eighty-nine Dollars and sixty-nine |
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17|cents ($189.69) per month as taxable compensation in lieu of the |
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18|flexible benefit allowance amount provided in subsection B of this |
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19|section. |
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20| B. Each eligible school district employee shall be credited |
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21|annually with a specified amount as a flexible benefit allowance |
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22|which shall be available for the purchase of benefits. Each |
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23|eligible school district employee, who has dependents and elects to |
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24|enroll them in the cafeteria plan offered by the school district, |
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1|shall be credited One Hundred Fifty-four Dollars and ninety cents |
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2|($154.90) monthly as an additional flexible benefit allowance for |
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3|the purchase of major medical health care coverage through the |
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4|cafeteria plan for his or her dependents. The amount of the |
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5|flexible benefit allowance credited to each eligible school district |
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6|employee shall be communicated to the employee prior to the |
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7|enrollment period for each plan year. |
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8| 1. For the fiscal year ending June 30, 2002, the flexible |
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9|benefit allowance amount for certified personnel shall be no less |
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10|than Sixty-nine Dollars and seventy-one cents ($69.71) per month. |
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11|For the fiscal year ending June 30, 2002, the flexible benefit |
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12|allowance amount for support personnel shall be no less than One |
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13|Hundred Eighty-nine Dollars and sixty-nine cents ($189.69) per |
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14|month. |
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15| 2. For the fiscal year ending June 30, 2004, the flexible |
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16|benefit allowance amount for certified personnel shall be no less |
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17|than fifty-eight percent (58%) of the premium amount for the |
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18|HealthChoice (Hi) option plan for an individual offered by the State |
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19|and Education Employees Group Insurance Board. For the fiscal year |
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20|ending June 30, 2003, and each fiscal year thereafter, the flexible |
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21|benefit allowance amount for support personnel shall be no less than |
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22|one hundred percent (100%) of the premium amount for the |
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23|HealthChoice (Hi) option plan for an individual offered by the State |
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24|and Education Employees Group Insurance Board. |
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1| 3. For the fiscal year ending June 30, 2005, and each fiscal |
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2|year thereafter, the flexible benefit allowance amount for certified |
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3|personnel shall be no less than one hundred percent (100%) of the |
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4|premium amount for the HealthChoice (Hi) option plan for an |
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5|individual offered by the State and Education Employees Group |
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6|Insurance Board. |
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7| C. If a school district employee who is participating in the |
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8|cafeteria plan elects benefits whose sum total is less than the |
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9|flexible benefit allowance, the employee shall receive any excess |
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10|flexible benefit allowance as taxable compensation. Such taxable |
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11|compensation shall be paid in substantially equal amounts each pay |
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12|period over the plan year. Except as otherwise provided for in |
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13|subsection D of this section, on termination during a plan year, a |
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14|participating school district employee shall have no right to |
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15|receive any taxable cash compensation allocated to the portion of |
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16|the plan year after the termination of the employee. |
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17| D. In cases where the employee of a school district fulfills |
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18|the terms of their contract and terminates employment for the |
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19|subsequent year, the employee shall be entitled to the flexible |
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20|benefit allowance for the remainder of the current benefit term. |
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21|For purposes of this subsection, "benefit term" shall mean the |
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22|twelve-month period after the initiation of benefits for the |
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23|position held by the employee. |
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1| E. Each school district employee shall make an annual election |
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2|of benefits under the plan during an enrollment period to be held |
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3|prior to the beginning of each plan year. The enrollment period |
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4|dates will be determined annually and will be announced by the |
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5|school district, providing the enrollment period shall end no later |
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6|than thirty (30) days before the beginning of the plan year. Each |
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7|school district employee shall make an irrevocable advance election |
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8|for the plan year or the remainder of the plan year pursuant to |
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9|procedures the school district shall prescribe. |
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10| F. The school district shall prescribe the forms that school |
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11|district employees shall be required to use in making their |
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12|elections, and may prescribe deadlines and other procedures for |
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13|filing the elections. |
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14| G. School district employees hired after the closing of the |
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15|enrollment period shall be allowed to make an election as provided |
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16|in this act. |
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17| H. A district board of education shall have the option of |
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18|providing a flexible benefit allowance to the superintendent of the |
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19|school district in an amount not more than the amount of the |
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20|flexible benefit allowance established for certified personnel in |
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21|subsection B of this section. Funding for the flexible benefit |
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22|allowance for a superintendent shall be provided through local |
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23|revenue. |
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1| SECTION 4. This act shall become effective November 1, 2023. |
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3| 59-1-6548 EK 12/15/22 |
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