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STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
SENATE BILL 91 By: Garvin
AS INTRODUCED
An Act relating to education employee health
insurance benefits; amending 70 O.S. 2021 , Section
26-105, which relates to the school district employee
cafeteria plan; increasing allowance re ceived by
certain personnel in lieu of flexible benefit
allowance; requiring certain documentation; updating
statutory reference; providing an effective date; and
declaring an emergen cy.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF O KLAHOMA:
SECTION 1. AMENDATORY 70 O.S. 2021, 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 participating 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 ove r the cost of the major medical
coverage purchased by the emp loyee who is participating in the
cafeteria plan may be used to purcha se any of the additional
benefits offered by the school district or may be taken as taxable
compensation as provided in subse ction C of this section.
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2. Certified personnel who choose n ot to participate in the
school-district-sponsored cafeteria plan shall r eceive Sixty-nine
Dollars and seventy-one cents ($69.71) per month as taxable
compensation in lieu of the flexible benef it allowance amount
provided in subsection B of this section. For the fiscal year
ending June 30, 2024, and each fiscal year thereafter, certified
personnel who choose not to participate in the school -district-
sponsored cafeteria plan shall receive one-half (1/2) of the
flexible benefit allowance amount for the given plan year per month
as taxable compensation in lieu of the full flexible benefit
allowance amount provided in subsection B of this section.
3. Support personnel who choose not to participate in the
school-district-sponsored cafeteria plan shall receive O ne Hundred
Eighty-nine Dollars and sixty-nine cents ($189.69) 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, 2024, and each fiscal year there after, support
personnel who choose no t to participate in the school -district-
sponsored cafeteria plan shall receive one-half (1/2) of the
flexible benefit allowance amount for the given plan year per month
as taxable compensation i n lieu of the full flexible benefit
allowance amount provided in subsection B of this section.
4. Certified and support personnel who cho ose not to
participate in the cafeteria plan pursuant to th is subsection shall
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provide proof of coverage under a separate health insurance pla n 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 distri ct employee shall be credited
annually with a specified amount as a flex ible benefit allowance
which shall be available for the purchase of benefits. The amount
of the flexible benefit allowance credited to each eligible school
district employee shall be communicated to the employee prior to the
enrollment period for each pla n 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 b enefit
allowance amount for support pe rsonnel 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 30, 20 04, the flexible
benefit allowance amount for ce rtified personnel shall be no less
than fifty-eight percent (58%) of the premium amount for the
HealthChoice (Hi) option plan for an individual offered by the State
and Education Employees Group Insurance Boa rd. For the fiscal year
ending June 30, 2003, a nd each fiscal year ther eafter, 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 for an individual offered by the State
and Education Employees Group Insurance Board.
3. For the fiscal year ending June 30, 2005, and each fiscal
year thereafter, the flexible benefit allowance amount for certified
personnel shall be no less than one hundred pe rcent (100%) of the
premium amount for the Healt hChoice (Hi) option plan for an
individual offered by the Stat e and Education Employees Group
Insurance Board.
C. If a school district employee who is participating in the
cafeteria plan elects benefits whos e sum total is less than the
flexible benefit allowance, the employee sh all receive any excess
flexible benefit allowance as taxable compensation. Such taxable
compensation shall be paid in substantially equal amounts each pay
period over the plan year. Except as otherwise provided for in
subsection D of this section, on ter mination during a plan year, a
participating school district employee shall have no right to
receive any taxable cash compensation allocated to the portion of
the plan year after the t ermination of the employee.
D. In cases where t he employee of a school district fulfills
the terms of their c ontract and terminates employment for the
subsequent year, the employee shall be entitled to the flexible
benefit allowance for the remainder of t he current benefit term.
For purposes of this s ubsection, “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 b e held
prior to the beginning of each plan year. The enrollme nt period
dates will be determined annually and will be announced by the
school district, providing provided the enrollment period shall end
no later than thirty (30) days before the beginning of the pla n
year. Each school district employee shall make an irrevocab le
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 required to use in making their
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 ele ction as provided
in this act Section 26-101 et seq. of this title .
H. A district board of educati on shall have the option of
providing a flexible benefit allowance to the superintendent of the
school district in an am ount not more than the amo unt of the
flexible benefit allowance establishe d for certified personnel in
subsection B of this section. Fu nding for the flexible benefit
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allowance for a superintendent shall be provided through local
revenue.
SECTION 2. This act shall become ef fective July 1, 2023.
SECTION 3. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereb y
declared to exist, by reason whereof this act shall take effect and
be in full force from an d after its passage and approval.
59-1-588 RD 12/29/2022 3:22:47 PM