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STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
HOUSE BILL 2006 By: Davis
AS INTRODUCED
An Act relating to schools; amending 70 O.S. 2021,
Section 5-117.5, which relates to provision for
health insurance for school district em ployees;
providing for health stipend option; 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. 2021, Section 5-117.5, is
amended to read as follows:
Section 5-117.5 A. The board of education o f each school
district in this state s hall provide a health insurance plan for the
employees of the school district. School districts may obtain
health and dental insurance covera ge as provided for in the State
and Education Employees Group Insurance Act or may obtain other
health insurance coverage. Any school district that does not
participate in the health and dental insurance plans offered through
the State and Education Emplo yees Group Insurance Act shall obtain
health insurance coverage for the empl oyees which provides open
enrollment, and provide for the continuation of health insurance
coverage, including supplemental Medicare insurance coverage, for
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those district employee s who retire from said district after
September 30, 1991, with a vested bene fit in the Teachers'
Retirement System of Oklahoma. A retired person who begins
receiving benefits from the Teachers ' Retirement System of Oklahoma
after September 30, 1991, who r etires from a school district that
provides other health insurance coverage, and who elects to continue
said health insurance coverage shall pay to the school district the
premium rate for the health insurance minus an amount equal to the
premium rate of the Medicare supplement or the amount determined
pursuant to subsection (4) o f Section 1316.3 of Title 74 of the
Oklahoma Statutes, whichever is less, which shall be paid by the
Teachers' Retirement System of Oklahoma to the school district. The
school district shall remit to the health insurance coverage
provider the total premiu m due less any uncollected amounts pay able
from retired school district employees or their qualified survivors.
B. A school district that participates in health insurance
coverage other than the health insurance plan offered by the State
and Education Employees Group Insurance Act shall not b e required to
pay any portion of the premiums for the employees or the dependents
of the employees of said school district, except as may othe rwise be
provided by law. Unless a school district negotiates an agreement
with its employees regarding health in surance pursuant to Sections
509.1 through 509.9 of this title, and to the extent that the
agreement provides for the members of the recognize d bargaining
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unit, a school district that participates in health insurance
coverage other than the health insuranc e plan offered by the State
and Education Employees Group Insurance Act is prohibited from
acquiring additional or supplemental health or dent al insurance for
any board member, school superintendent or any other employ ee which
is not available to all emplo yees of said district, and said school
district shall not pay a greater portion of the employee or
dependent premium for any health or dental insurance plan or plans
provided by said school district on behalf of any bo ard member,
school superintendent or e mployee than that portion paid on behalf
of all participating employees of said district.
C. If a school district obtains health insurance co verage from
a source other than through the State and Education Employees Gr oup
Insurance Act, the employees of th e school district who would be
eligible to participate in the health and dental plans may require
the board of education of the school distric t to call an election to
allow said employees to vote as to whether the scho ol district shall
participate in the h ealth and dental insurance plans offered through
the State and Education Employees Group Insurance Act. Upon the
filing with the board of edu cation of a petition calling for such an
election which is signed by no less than thirty percent (30%) of the
eligible employees of the school district, the board of education
shall call an election for the purpose of determining whether the
school district shall participate in the health and dental insurance
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plans offered through the State and Education Employees Gro up
Insurance Act. The election shall be held within thirty (30) days
of the filing of the petition. If a majority of those eligible
employees voting at the election vote to participate in the health
and dental insurance plans offered through the State an d Education
Employees Group Insurance Act, the board of education of the school
district shall apply for such participation within thirty (30) days
of the election.
D. If a school district does not have any health ins urance
coverage of the type required b y this section, that school district
shall immediately be enrolled in the health and dental insurance
plans offered through the State and Educ ation Employees Group
Insurance Act.
E. A carrier providing health insuranc e coverage for employees
of a school district health insurance group which replaces a
previous carrier for such school district employees shall provide
coverage for each retired em ployee who is receiving a benefit or
terminates employment with a vested ben efit from the Teachers'
Retirement System of Oklahoma and who is enrolled in the health
insurance group by the previous carrier at the time the previous
carrier providing health in surance coverage is replaced.
Notwithstanding any provision in this section to the contrary, any
person who retires pursuant to the provisions of the Teachers '
Retirement System of Oklahoma prior to May 1, 1993, or terminates
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service with a vested benefit , pursuant to the provisions of the
Teachers' Retirement System of Oklahoma prior to May 1, 1993, may
continue to participate in the health and dental plans authorized by
the provisions of the State and Education Employees Group Insurance
Act.
F. In the event a school district ceases to exist, the assets
and duties of said school district are transferred to one or mo re
other school districts, said other school district or districts do
not agree to employ all of the former employees of the school
district that is ceasing to exist, and said former employees who are
not being reemployed have rights under federal or state law to
continue group insurance coverage, the school district receiving all
or a portion of the assets and duties of the annexing school
district having the largest general fund revenue for the most recent
preceding fiscal year for which data is available shall provide
group insurance coverage to said former employees not being retained
during the period as required by law.
G. Any member of a district board of education who terminates
service on or after July 1, 2002, who has served ten (10) or more
years as a district board of education member in this state, and who
is participating at the time of termination in a health and/or
dental insurance plan offered by the school district, may elect upon
termination of such se rvice to continue participation in the health
and/or dental insurance plan that the member was participating in at
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the time of termination. The election provided in this subsectio n
shall be made within thirty (30) days from the date of the school
board member's termination of service. The sc hool board member
shall pay the full cost of the insurance premium for such after -
termination coverage at the rate and pursuant to the terms a nd
conditions of such health and/or dental plan.
H. The board of education of each school district in this state
shall, during the open enrollment period, offer employees the option
to opt-out of provided health insurance plans and instead receive a
health insurance stipend of One Hundred and Fifty Dollars ($150.00)
that shall be reflected in their salary.
SECTION 2. This act shall become effe ctive July 1, 2023.
SECTION 3. 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 an d approval.
59-1-5118 MJ 01/11/23