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STATE OF OKLAHOMA
2nd Session of the 58th Legislature (2022)
SENATE BILL 1127 By: Bullard
AS INTRODUCED
An Act relating to state insurance; amending 70 O.S.
2021, Section 26-105, which relates to teacher
benefit allowance; increasing allowance received by
education employees for opting out of school-
district-sponsored insurance plan; requiring certain
documentation; amending 74 O.S. 2021, Sections 1303
and 1308.3, which relate to the Oklahoma Employees
Insurance and Benefits Act; modifying definition of
employee; modifying amount received by employees
opting out of certain insurance plan; providing an
effective date; and declaring an emergency.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 70 O.S. 20 21, Section 26-105, is
amended to read as follows:
Section 26-105. A. 1. The flexible benefit allowance shall be
used by a school district employee who is particip ating in the
cafeteria plan to purchase major medical health care plan coverage
offered by the school district through a cafeteria plan. Any excess
flexible benefit allowance over the cost of the major medical
coverage purchased by the employee who is par ticipating in the
cafeteria plan may be used to purchase any of the additional
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benefits offered by the school district or may be taken as taxable
compensation as provided in subsection C of this section.
2. Certified personnel who choose not to particip ate in the
school-district-sponsored cafeteria plan shall receive Sixty-nine
Dollars and seventy-one cents ($69.71) per month as taxable
compensation in lieu of the flexible benefit allowance amount
provided in subsection B of this section. For the fiscal year
ending June 30, 2023, and each fiscal year thereafter, certified
personnel who choose not to participa te in the school-district-
sponsored cafeteria pl an shall receive Three Hundred Dollars
($300.00) per month as taxable comp ensation in lieu of the flexible
benefit allowance amount provided in subs ection B of this section.
3. Support personnel who choose not to participat e in the
school-district-sponsored cafeteria plan shall receive One Hundred
Eighty-nine Dollars and sixty -nine cents ($189.69) per month as
taxable compensation in lieu of the flexible b enefit allowance
amount provided in su bsection B of this section. For the fiscal
year ending June 30, 2023, and each fiscal year thereafter, support
personnel who choose not to participate in the sch ool-district-
sponsored cafeteria plan shall receive Three Hundred Dollars
($300.00) per month as taxable compensation in lieu of the f lexible
benefit allowance amount provided in subsection B of thi s section.
4. Certified or support personnel who choose not to participate
in the cafeteria plan pursuant to this sub section shall provide
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proof of coverage under a separate health insurance plan and sign an
affidavit attesting that the employee is currently covered and does
not require school-district-sponsored health insurance each plan
year.
B. Each eligible school d istrict employee shall be credited
annually with a specified amount as a flexible benefi t allowance
which shall be available for the purchase of benefits. The amount
of the flexible benefit allowance credited to each eligible school
district employee shal l be communicated to the employee prior to the
enrollment period for each plan year.
1. For the fiscal year ending June 30, 2002, the flexible
benefit allowance amount for certified personnel shall be no less
than Sixty-nine Dollars and seventy-one cents ($69.71) per month.
For the fiscal year ending June 30, 2002, the flexible benefit
allowance amount for supp ort personnel shall be no less than One
Hundred Eighty-nine Dollars and sixty -nine cents ($189.69) per
month.
2. For the fiscal year ending June 3 0, 2004, the flexible
benefit allowance amount for certified personnel shall be no less
than fifty-eight percent (58%) of the premium amount for the
HealthChoice (Hi) option plan for an individual offe red by the State
and Education Employees Group Insuranc e Board. For the fiscal year
ending June 30, 2003, and each fiscal year thereafter, the flexible
benefit allowance amount for support personnel shall be no less than
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one hundred percent (100%) of the premium amount for the
HealthChoice (Hi) option plan fo r an individual offered by the State
and Education Employees Group Insurance Board.
3. For the fiscal year e nding June 30, 2005, and each fiscal
year thereafter, the flexible benefit allowance amount for certified
personnel shall be no less than one hundr ed percent (100%) of the
premium amount for the HealthChoice (Hi) option plan for an
individual offered by th e State and Education Employees Group
Insurance Board.
C. If a school district employee who is participating in the
cafeteria plan elects benefits whose sum total is less than the
flexible benefit allowance, the employee shall receive any excess
flexible benefit allowance as taxable compensation. Such taxable
compensation shall be paid in subst antially equal amounts each pay
period over the plan ye ar. Except as otherwise provided for in
subsection D of this section, on termination du ring a plan year, a
participating school district employee shall have no right to
receive any taxable cash compen sation allocated to the portion of
the plan year after the termination of the employee.
D. In cases where the employee of a school district fu lfills
the terms of their contract and terminates employment for the
subsequent year, the employee shall be entit led to the flexible
benefit allowance for the remainder of the current benefit term.
For purposes of this subsection, "benefit term" shall mean the
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twelve-month period after the initiation of benefits for the
position held by the employee.
E. Each school district employee shall make an annual election
of benefits under the plan during an enrollment period to be held
prior to the beginning of ea ch plan year. The en rollment period
dates will be determined annually and will be announced by the
school district, providing the enrollment period shall end no later
than thirty (30) days before the beginning of the plan year. Each
school district emplo yee shall make an irr evocable advance election
for the plan year or the remainder of the plan year pursuant to
procedures the school district shall prescribe.
F. The school district shall prescribe the forms that school
district employees shall be require d to use in making th eir
elections, and may prescribe deadlines and other procedures for
filing the elections.
G. School district employees hired after the closing of the
enrollment period shall be allowed to make an election as provided
in this act.
H. A district board of e ducation shall have the option of
providing a flexible benefit allowance to the superintende nt of the
school district in an amount not more than th e amount of the
flexible benefit allowance established for certified personnel in
subsection B of this sectio n. Funding for the flexible benefit
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allowance for a superintendent shall be provided throug h local
revenue.
SECTION 2. AMENDATORY 74 O.S. 2021, Section 1303, is
amended to read as follows:
Section 1303. For the purposes of and as used in the Oklahoma
Employees Insurance and Benefits Act:
1. "Board" means the Oklahoma Employees In surance and Benefits
Board as created by t he Oklahoma Employees Insurance and Benefits
Act;
2. "Plan" means the Oklahoma Emplo yees Insurance Plan;
3. "Employee" means those state employees, education employees
and other eligible employees participating i n the Oklahoma Employees
Insurance and Benefits Act. For the purpose of Section 1308.3 of
this title, employee shall not includ e education employees;
4. "Education employee" means those employees ot her than
adjunct professors employed by a state institut ion of higher
education, in the service of an education entity who are members or
are or will be eligible to become members of t he Teachers'
Retirement System of O klahoma and who receive compensation for such
service after the education entity begins to pa rticipate in the
Oklahoma Employees Insu rance and Benefits Act and visiting faculty
who are not eligible for membership in the T eachers' Retirement
System of Oklahoma;
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5. "Adjunct professor" means a person employed by an
institution of higher education wh o is attached in a subordinate or
temporary capacity to the faculty or staff, and who is contracted to
instruct in a given speci fic discipline;
6. "Visiting faculty" means a person employed by an ins titution
of higher education who is not eligible for aca demic rank or tenure,
other than an adjunct professor, and who is contracted to instruct
in a given specific discipline generall y not to exceed one (1)
academic year;
7. "Education entity" means a school district, a technology
center school district, or a n institution comprising The Oklahoma
State System of Higher Education;
8. "State employee" means and includes each officer or employee
in the service of the Stat e of Oklahoma who, after January 1, 1 966,
received compensation for service rendered to the S tate of Oklahoma
on a warrant issued pur suant to a payroll certified by a department
or by an elected or duly appointed officer of the state or who
receives payment for the performance of personal ser vices on a
warrant issued pursuant to a payroll certifie d by a department and
drawn by the State Treasurer against appropriations made by the
Legislature from any state fund or against trust funds held by the
State Treasurer, who is employed in a position normally requiring
actual performance of duty during not less than one thousand (1,000)
hours per year, and whose employment is not seasonal or temporary,
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except that a person elected by popular vote will be considered an
employee during the person 's tenure in office; provided, however,
that employees who are o therwise eligible who are on approved le ave
without pay shall be eligible to continue coverage during such leave
not to exceed twenty-four (24) months, as provided and published in
the Office of Management and Enterprise Services Rules for
Employment, from the date the employee goes on such leav e provided
the employee pays the full premiums due or persons who are drawing
disability benefits under the State Employees Disability Program Act
or meet each and every requirement of the State Employees Disability
Program shall be eligible to continue co verage provided the person
pays the full premiums due;
9. "Carrier" means the State of Oklahoma or a state designated
Health Maintenance Organization (HMO). S uch HMO shall be a
federally qualified Health Maintenanc e Organization under 42 U.S.C.,
Section 300e et seq.;
10. "Health insurance plan " means a self-insured plan by the
State of Oklahoma for the purpose of paying the cost of hospital and
medical care up to the maximum coverage provided by said plan or
prepaid medical plan(s) offered to employees a s an alternative to
the state-administered plan by federally qualified HMOs which have
contracted with the state;
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11. "Life insurance plan" means a self-insured plan for the
purpose of paying death and dismemberment benefits up to the maximum
coverage provided by the plan;
12. "Dental benefits plan " means a plan by the State of
Oklahoma for the purpose of paying the cost of dental care up to the
maximum coverage provided by the plan; whenever the term "dental
insurance plan" or a term of like import appea rs in the Oklahoma
Employees Insurance and Benefits Act, the term shall mean "dental
benefits plan";
13. "Other insurance" means any type of coverage other tha n
basic hospital and medical benefits, major medical ben efits,
comprehensive benefits, life insu rance benefits or dental insurance
benefits, which the Plan may be directed to offer;
14. "Dependent" means an employee's spouse or any unmarried
child:
a. under the age of twenty -five (25) years, regardless of
residence, provided that the employee is pr imarily
responsible for their support, including :
(1) an adopted child, and
(2) a stepchild or child who lives with the em ployee
in a regular parent-child relationship, or
b. regardless of age who is incapable of self -support
because of mental or physica l incapacity that existed
prior to reaching the age of twenty -five (25) years;
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15. "Comprehensive benefits" means benefits which reimburse the
expense of hospital room and board, other hospital services, certain
outpatient expenses, maternity benefits, su rgical expense, including
obstetrical care, in -hospital medical care expense, diagnostic
radiological and laboratory benefi ts, physicians' services provided
by house and office calls, treatments administered in physicia ns'
office, prescription drugs, psych iatric services, Christian Science
practitioners' services, Christian Science nurses ' services,
optometric medical services for injury or illness of the eye, ho me
health care, home nursing service, hospice care, and suc h other
benefits as may be determined by the Board. Such benefits shall be
provided on a copayment or coinsurance basis, the insured to pay a
proportion of the cost of such benefits, and may be su bject to a
deductible that applies to all or part of the be nefits as determined
by the Board; and
16. "Life insurance coverage" shall include a maximum amount of
basic life insurance or benefit with or without a double indemnity
provision and an amount of accidental death and dismemberment
insurance or benefit pe r employee to be provided by the Stat e of
Oklahoma, and the employee shall have the option to purchase
additional life insura nce or benefits on the employee 's life up to
the amount provided by the plan. Such basic life insurance
benefits, with or without double indemnity, and accidental deat h and
dismemberment benefits shall not exclude coverage for death or
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dismemberment resulting from war, insurrection or riot . The Board
may also extend dependen t life insurance in an amount to be
determined by the Board to each insured employee who elects to
insure the employee's eligible dependents. Premiums for the
dependent life insurance shall be paid wholly by the employ ee.
SECTION 3. AMENDATORY 74 O.S. 20 21, Section 1308.3, is
amended to read as follows:
Section 1308.3. Any active employee, as defined pursuant to
Section 2 of this act, who is active and eligible to participate or
who is a participant may opt out of the state 's basic plan as
outlined in Sections 1370 and 1371 of this title , or may opt out of
the health and dental basic pl an options only and retain the life
and disability plan benefits, provided that the participant is
currently covered by a separate group health i nsurance plan or will
be covered by a separate group health i nsurance plan at or before
the beginning of the ne xt plan year. Any active employee eligible
to participate or who is a participant opting out of coverage
pursuant to this section shall provide proof of the coverage under a
separate health insurance plan participation and sign an affidavit
attesting that the participant is currently covered and does not
require state-provided health insurance each plan year. Any active
employee opting out of the state 's basic plan or the health and
dental basic plan optio ns pursuant to this section shall receive One
Hundred Fifty Dollars ($150.00) in lieu of the flexible benefit
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amount the employee would be otherwise eligible to receive. Any
savings realized by the state as a result of a participant opting
out of health insurance plan coverage shall be retained by the
state. For the fiscal year ending June 30, 2023, and each fiscal
year thereafter any active employee opting out of the state's basic
plan or the health and dental basic plan options pursuant to this
section shall receive Three Hundred Dollars ($300.00) per month.
SECTION 4. This act shall become effective July 1, 2022.
SECTION 5. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and approval.
58-2-2277 RJ 12/2/2021 2:38:30 PM