Oklahoma 2024 Regular Session

Oklahoma House Bill HB1407 Compare Versions

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Version 2 (New)

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3		-	ENGR. H. B. NO. 1407 Page 1 1
	3	+	HB1407 HFLR Page 1
	4	+	BOLD FACE denotes Committee Amendments. 1
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28		-	ENGROSSED HOUSE
29		-	BILL NO. 1407 By: Culver of the House
	29	+	HOUSE OF REPRESENTATIVES - FLOOR VERSION
	30	+
	31	+	STATE OF OKLAHOMA
	32	+
	33	+	1st Session of the 59th Legislature (2023)
	34	+
	35	+	HOUSE BILL 1407 By: Culver of the House
30	36
31	37		and
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33	39		Stewart of the Senate
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	47	+	AS INTRODUCED
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42	49		[ state employee benefits - benefit allowance for
43	50		state employees - effective date ]
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50	57		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
51	58		SECTION 1. AMENDATORY 74 O.S. 2021, Section 1370, is
52	59		amended to read as follows:
53	60		Section 1370. A. Subject to the requirement that a participant
54	61		must elect the default benefits, the basic plan , or is a person who
55	62		has retired from a branch of the United States military and has been
56	63		provided with health care thr ough a federal plan, to the extent that
57	64		it is consistent with federal law, or is an active employee who is
58	65		eligible to participate and who is a participant who has opted out
59		-	of the state's basic plan according to the provisions of Section
60		-	1308.3 of this title, and provides proof of this cov erage, flexible
61		-	benefit dollars may be used to purchase any of the benefits offered
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63		-	ENGR. H. B. NO. 1407 Page 2 1
	67	+	HB1407 HFLR Page 2
	68	+	BOLD FACE denotes Committee Amendments. 1
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	93	+	of the state's basic plan according to the provisions of Section
	94	+	1308.3 of this title, and provides proof of this cov erage, flexible
	95	+	benefit dollars may be used to purchase any of the benefits offered
88	96		by the Oklahoma State Employees Benefits Coun cil under the flexible
89	97		benefits plan. A participant who has opted out of the state 's basic
90	98		plan and provided proof of other co verage as described in this
91	99		subsection shall receive One Hundred Fifty Dollars ($150.00) in lieu
92	100		of the flexible benefit monthly. A participant's flexible benefit
93	101		dollars for a plan year shall consist of the sum of (1) f lexible
94	102		benefit allowance credited to a participant by the participating
95	103		employer, and (2) pay conversion dollars elected by a participant.
96	104		B. Each participant sha ll be credited annually wit h a specified
97	105		amount as a flexible benefit allowance which shall be available for
98	106		the purchase of benefits. For participants on a biweekly payroll
99	107		system the disbursement of the flexible benefit allowance shall be
100	108		credited over twenty-four pay periods res ulting in two pay periods
101	109		that do not reflect a credit. The amou nt of the flexible benefit
102	110		allowance credited to each participant shall be communicated to him
103	111		or her prior to the enrollment period for each plan year.
104	112		C. Except as provided in subsection D of this section, for the
105	113		plan year beginning January 1, 2013, th e benefit allowance shall not
106	114		be less than the Plan Year 2012 benefit allowance amounts, and each
107	115		plan year thereafter, the amount of a participant 's benefit
108		-	allowance, which shall be the t otal amount the employer contributes
109		-	for the payment of insurance p remiums or other benefits, shall be :
110		-	1. The greater of the amount of benefit which the participant
111		-	would have qualified for as of plan year 2021, or an amount equal to
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113		-	ENGR. H. B. NO. 1407 Page 3 1
	117	+	HB1407 HFLR Page 3
	118	+	BOLD FACE denotes Committee Amendments. 1
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	143	+	allowance, which shall be the tot al amount the employer contributes
	144	+	for the payment of insurance p remiums or other benefits, shall be :
	145	+	1. The greater of the amount of benefit which the participant
	146	+	would have qualified for as of plan year 2021, or an amount equal to
138	147		the monthly premium of the HealthChoice High Option plan, the
139	148		average monthly premiums of the dental plans, the monthly pr emium of
140	149		the disability plan, and the monthly premium of the basic life
141	150		insurance plan offered to state employees or the amo unt determined
142	151		by the Council based on a formula for determining a participant 's
143	152		benefit credits consistent with the requirements of 26 U.S.C.,
144	153		Section 125(g)(2) and regulations thereunder;
145	154		2. The greater of the amount of benefit which the participant
146	155		would have qualified for as of plan year 2021 or an amount equal to
147	156		the monthly premium of the Healt hChoice High Option plan, the
148	157		average monthly premiums of the dental plans, the monthly premium of
149	158		the disability plan, and the monthly premium of the basic life
150	159		insurance plan offered to state employees plus one of the additional
151	160		amounts as follows for pa rticipants who elect to include one or more
152	161		dependents:
153	162		a. for a spouse, seventy-five percent (75%) of the
154	163		HealthChoice High Option plan, available for coverage
155	164		of a spouse,
156		-	b. for one child, seventy-five percent (75%) of the
157		-	HealthChoice High Option plan, for coverage of one
158		-	child,
159		-	c. for two or more children, seventy-five percent (75%)
160		-	of the HealthChoice High Option plan, for coverage of
161		-	two or more children,
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163		-	ENGR. H. B. NO. 1407 Page 4 1
	166	+	HB1407 HFLR Page 4
	167	+	BOLD FACE denotes Committee Amendments. 1
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	192	+	b. for one child, seventy-five percent (75%) of the
	193	+	HealthChoice High Option plan, for coverage of one
	194	+	child,
	195	+	c. for two or more children, seventy-five percent (75%)
	196	+	of the HealthChoice High Option plan, for coverage of
	197	+	two or more children,
188	198		d. for a spouse and one child, seventy-five percent (75%)
189	199		of the HealthChoice High Option plan, for coverage of
190	200		a spouse and one child, or
191	201		e. for a spouse and two or more children, seventy-five
192	202		percent (75%) of the HealthChoice High Option plan,
193	203		for coverage of a spouse and two or more children;
194	204		3. For the plan year beginning January 1, 2022, the am ount of a
195	205		participant's benefit allowance shall be increased by two percent
196	206		(2%) from the amount provided in the previous year;
197	207		4. For the plan year be ginning January 1, 2023, t he amount of a
198	208		participant's benefit allowance shall be increased by two perce nt
199	209		(2%) from the amount provided in the previous year; or
200	210		5. For the plan year begi nning January 1, 2024, the amount of a
201	211		participant's benefit allowance shall be increased by two percent
202	212		(2%) from the amount provided in the previous year;
203	213		6. For the plan year be ginning January 1, 202 5, the amount of a
204	214		participant's benefit allowance sh all be increased by two percent
205	215		(2%) from the amount provided in the previous year; or
206		-	7. The greater of the amount of benefit which the participant
207		-	would have qualified for as of pla n year 2023 2025, or an amount
208		-	equal to the monthly premium of the Healt hChoice High Option plan,
209		-	the average monthly premiums of the dental plans, the monthly
210		-	premium of the disability plan and the monthly premium of the basic
211		-	life insurance plan offered to s tate employees plus one of the
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213		-	ENGR. H. B. NO. 1407 Page 5 1
	217	+	HB1407 HFLR Page 5
	218	+	BOLD FACE denotes Committee Amendments. 1
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	243	+	7. The greater of the amount of benefit which the participant
	244	+	would have qualified for as of pla n year 2023 2025, or an amount
	245	+	equal to the monthly premium of the Healt hChoice High Option plan,
	246	+	the average monthly premiums of the dental plans, the monthly
	247	+	premium of the disability plan and the monthly premium of the basic
	248	+	life insurance plan offered to s tate employees plus one of the
238	249		additional amounts as follows for par ticipants who elect to include
239	250		one or more dependents:
240	251		a. for a spouse, seventy-five percent (75%) of the
241	252		HealthChoice High Option plan, available for coverage
242	253		of a spouse,
243	254		b. for one child, seventy-five percent (75%) of the
244	255		HealthChoice High Option plan, for coverage of one
245	256		child,
246	257		c. for two or more children, sev enty-five percent (75%)
247	258		of the HealthChoice High Option plan, for coverage of
248	259		two or more children,
249	260		d. for a spouse and one child , seventy-five percent (75%)
250	261		of the HealthChoice High Option plan, f or coverage of
251	262		a spouse and one child, or
252	263		e. for a spouse and two or more children, seventy-five
253	264		percent (75%) of the HealthChoice High Option plan,
254	265		for coverage of a spouse and two or mor e children.
255		-	D. To the extent that it is consistent with federal law s and
256		-	regulations, and in particul ar the regulations set forth by the
257		-	Secretary of Defense in 32 C.F.R. Section 199.8(d)(6), a benefit may
258		-	be provided to an employee who is an eligible TRI CARE beneficiary
259		-	whereby he or she may purchase a group TRICARE Supp lemental product
260		-	under a qualifying cafeteria plan consi stent with the requirements
261		-	of 26 U.S.C., Section 125, provided that:
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263		-	ENGR. H. B. NO. 1407 Page 6 1
	267	+	HB1407 HFLR Page 6
	268	+	BOLD FACE denotes Committee Amendments. 1
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	293	+	D. To the extent that it is consistent with federal law s and
	294	+	regulations, and in particul ar the regulations set forth by the
	295	+	Secretary of Defense in 32 C.F.R. Section 199.8(d)(6), a benefit may
	296	+	be provided to an employee who is an eligible TRI CARE beneficiary
	297	+	whereby he or she may purchase a group TRICARE Supp lemental product
	298	+	under a qualifying cafeteria plan consi stent with the requirements
	299	+	of 26 U.S.C., Section 125, provided that:
288	300		1. The state, as employer , may not provide any payment for nor
289	301		receive any consideration or compensation for offering the benefit ;
290	302		2. The employer's only involvement is in providing the
291	303		administrative support for the benefit under the cafeteria plan; and
292	304		3. The employee's participation in the plan is completely
293	305		voluntary.
294	306		The benefit allowance under paragraph 2 of subsection C of this
295	307		section of an employee whose plan participation includes a group
296	308		TRICARE Supplemental benefit shall not include any allowance or
297	309		portion thereof for such TRICARE Supplemental benefit.
298	310		E. This section shall not prohibit payments for supplemental
299	311		health insurance coverage made pursuant to Section 1314.4 of this
300	312		title or payments for the cost of providing health insurance
301	313		coverage for dependents of employees of the Grand River Dam
302	314		Authority.
303	315		F. If a participant desires to buy benefits whose sum total of
304	316		benefit prices is in excess of hi s or her flexible benefit
305		-	allowance, the participant may elect to use pay conversion dollars
306		-	to purchase such excess benefits. Pay conversion dollars may be
307		-	elected through a salary reduction agreement made pursuant to th e
308		-	election procedures of Section 1 371 of this title. The elected
309		-	amount shall be deducted from the participant's compensation in
310		-	equal amounts each pay period, with the exception of partic ipants on
311		-	a biweekly payroll system, where such deduction shall occ ur over
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313		-	ENGR. H. B. NO. 1407 Page 7 1
	318	+	HB1407 HFLR Page 7
	319	+	BOLD FACE denotes Committee Amendments. 1
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	344	+	allowance, the participant may elect to use pay conversion dollars
	345	+	to purchase such excess benefits. Pay conversion dollars may be
	346	+	elected through a salary reduction agreement made pursuant to th e
	347	+	election procedures of Section 1 371 of this title. The elected
	348	+	amount shall be deducted from the participant's compensation in
	349	+	equal amounts each pay period, with the exception of partic ipants on
	350	+	a biweekly payroll system, where such deduction shall occ ur over
338	351		twenty-four pay periods over the plan year. On termination of
339	352		employment during a plan year, a participant shall have no
340	353		obligation to pay the participating employer any pay conver sion
341	354		dollars allocated to the portion of the plan year after the
342	355		participant's termination of employm ent.
343	356		G. If a participant elects benefits whose sum total of benefit
344	357		prices is less than his or her flexible benefit allowance, he or she
345	358		shall receive any excess flexible benefit allowance as taxable
346	359		compensation. Such t axable compensation will be paid i n
347	360		substantially equal amounts each pay period, with the exception of
348	361		participants on a biweekly payroll system, where such deduction
349	362		shall occur over twent y-four pay periods over the plan year. On
350	363		termination during a pla n year, a participant shall have n o right to
351	364		receive any such taxable cash compensation allocated to the portion
352	365		of the plan year after the participant 's termination. Nothing
353	366		herein shall affect a participant's obligation to elect the minimum
354	367		benefits or to accept the default benefits of the plan with
355		-	corresponding reduction in the sum of his or her flexible benefit
356		-	allowance equal to the sum total benefit price of such minimum
357		-	benefits or default benefits.
358		-	SECTION 2. This act shall become effective November 1, 2023.
359	368
360		-	ENGR. H. B. NO. 1407 Page 8 1
	369	+	HB1407 HFLR Page 8
	370	+	BOLD FACE denotes Committee Amendments. 1
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385		-	Passed the House of Representatives the 9th day of March, 2023.
	395	+	corresponding reduction in the sum of his or her flexible benefit
	396	+	allowance equal to the sum total benefit price of such minimum
	397	+	benefits or default benefits.
	398	+	SECTION 2. This act shall become effective November 1, 2023.
386	399
387		-
388		-
389		-
390		-	Presiding Officer of the House
391		-	of Representatives
392		-
393		-
394		-
395		-	Passed the Senate the ___ day of __________, 2023.
396		-
397		-
398		-
399		-
400		-	Presiding Officer of the Senate
401		-
402		-
	400	+	COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS AND BUDGET , dated
	401	+	03/02/2023 - DO PASS, As Amended and Coauthored.