Oklahoma 2024 Regular Session

Oklahoma House Bill HB3586 Compare Versions

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Version 2 (New)

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1		-	An Act
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3	34		BILL NO. 3586 By: Strom of the House
4	35
5	36		and
6	37
7	38		Garvin of the Senate
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12	43		An Act relating to state employee health insurance;
13	44		amending 70 O.S. 2021, Section 14 -108.1, which
14	45		relates to health insurance pla n for employees;
15	46		modifying references to entity names; amending 70
16	47		O.S. 2021, Section 26 -104, which relates to funding
17	48		to provide flexible benefit allowance; modifying
18	49		references to entity names; amending 70 O.S. 2021,
19	50		Section 26-105, which relates to use of flexible
20	51		benefit allowance; modifying references to entity
21	52		names; amending 74 O.S. 2021, Section 85.58A, which
22	53		relates to establishment of comprehensive
23	54		professional risk management program; modifying
24	55		references to entity names; amending 74 O.S. 2021,
25	56		Section 1316.2, which relates to continuance of
26	57		health and dental insurance benefits; modifying
27	58		citations; amending 74 O.S. 2021, Section 1321, which
28	59		relates to determination of rates and benefits;
29	60		modifying references to entity names; amending 74
30	61		O.S. 2021, Section 1332, which relates to
31	62		establishment of disability insurance program for
32	63		state employees; modifying references to en tity names
33	64		and updating citations; amending 74 O.S. 2021,
34	65		Section 1332.1, which relates to collections from
35	66		state agencies; modify ing references to entity names;
36	67		amending 74 O.S. 2021, Section 1346, which relates to
37	68		creation of flexible benefit revolving fund;
38	69		modifying references to entity names; amending 74
39	70		O.S. 2021, Section 1370, which relates to flexible
40	71		benefit dollars in the O klahoma State Employees
41	72		Benefits Act; modifying references to entity names;
42	73		repealing 74 O.S. 2021, Section 1329.1, which rela tes
43	74		to mutual accountability incentive pilot program;
44	75		repealing 74 O.S. 2021, Sections 1381, 1382, 1383,
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45	103		and 1384, which relate to the Wellness Program Act;
46		-	and providing an effective date . ENR. H. B. NO. 3586 Page 2
47		-	SUBJECT: State employee health
	104	+	and providing an effective date.
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48	108
49	109		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
50		-
51	110		SECTION 1. AMENDATORY 70 O.S. 2021, Section 14 -108.1, is
52	111		amended to read as follows:
53		-
54	112		Section 14-108.1 A. The board of education of each technology
55	113		center school district in this state shall provide a health
56	114		insurance plan for the employees of the technology center school
57	115		district. Technology center school districts may obtain health and
58	116		dental insurance coverage as provided for in the State and Education
59	117		Employees Group Insurance Oklahoma Employees Insurance and Benefits
60	118		Act or may obtain other health insurance coverage. Any technology
61	119		center district that does not participate in the health and dental
62	120		insurance plans offered through the State and Education Employees
63	121		Group Insurance Oklahoma Employees Insurance and Benefits Act shall
64	122		obtain health insurance coverage for the employees which provides
65	123		open enrollment, and provide for the continuation of health
66	124		insurance coverage, including supplemental Medicare insurance
67	125		coverage, for those district employees who retire from said district
68	126		after September 30, 1991, with a vested benefit in the Teachers'
69	127		Retirement System of Oklahoma. A retired person who begins
70	128		receiving benefits from the Teachers' Retirement System of Oklahoma
71	129		after September 30, 1991, who retires from a technology center
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72	157		school district that provides other health insurance coverage, and
73	158		who elects to continue said health insurance coverage shall pay t o
74	159		the technology center school district the premium rate fo r the
75	160		health insurance minus an amount equal to the premium rate of the
76	161		Medicare supplement or the amount determined pursuant to subsection
77	162		(4) of Section 1316.3 of Title 74 of the Oklahoma Statute s,
78	163		whichever is less, which shall be paid by the Teachers' Retirement
79	164		System of Oklahoma to the technology center school district. The
80	165		technology center school district shall remit to the health
81	166		insurance coverage provider the total premium due less any
82	167		uncollected amounts payable from retired technology center s chool
83	168		district employees or their qualified survivors.
84		-
85	169		B. A technology center school district that participates in
86	170		health insurance coverage other than the health insurance plan
87	171		offered by the State and Education Employees Group Insurance
88	172		Oklahoma Employees Insurance and Benefits Act shall not be required
89	173		to pay any portion of the premium for the employees or the
90	174		dependents of the employees of said school district. Unless a
91		-	school district ~~negotiates~~ an agreement with its employees regarding ~~ENR. H. B. NO. 3586 Page 3~~
	175	+	school district negotia tes an agreement with its employees regarding
92	176		health insurance pursuant to Sections 509.1 through 509.9 of this
93	177		title, and to the extent that the agreement provides for the members
94	178		of the recognized bargaining unit, a technology center school
95	179		district that participates in health insurance coverage other than
96	180		the health insurance plan offered by the State and Education
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97	208		Employees Group Insurance Oklahoma Employees Insurance and Benefits
98	209		Act is prohibited from acquiring additional or supplemental health
99	210		or dental insurance for any board member, superintendent or any
100	211		other employee which is not available to all employees of said
101	212		district, and said technology center school district shall not pay a
102	213		greater portion of the employee or dependent premium for any healt h
103	214		or dental insurance plan or plans provided by said technology center
104	215		school district on behalf of any board member, superintendent or
105	216		employee than that portion paid on behalf of all participating
106	217		employees of said district.
107		-
108	218		C. If a technology center sc hool district obtains health
109	219		insurance coverage from a sour ce other than through the State and
110	220		Education Employees Group Insurance Oklahoma Employees Insurance and
111	221		Benefits Act, the employees of the technology center school district
112	222		who would be eligible t o participate in the health and dental plans
113	223		may require the board of education of the technology center school
114	224		district to call an election to allow said employees to vote as to
115	225		whether the technology center school district shall participate in
116	226		the health and dental insurance plans offered through the State and
117	227		Education Employees Group Insurance Oklahoma Employees Insurance and
118	228		Benefits Act. Upon the filing with the board of education of a
119	229		petition calling for such an election which is signed by no less
120	230		than thirty percent (30%) of the eligible employees of the
121	231		technology center school district, the board of education shall call
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122	259		an election for the purpose of determining whether the technology
123	260		center school district shall participate in the health and den tal
124	261		insurance plans offered through the State and Education Employees
125	262		Group Insurance Oklahoma Employees Insurance and Benefits Act. The
126	263		election shall be held within thirty (30) days of the filing of the
127	264		petition. If a majority of those eligible employe es voting at the
128	265		election vote to participate in the health and dental insurance
129	266		plans offered through the State and Education Employees Group
130	267		Insurance Oklahoma Employees Insurance and Benefits Act, the board
131	268		of education of the technology center school d istrict shall apply
132	269		for such participation within thirty (3 0) days of the election.
133		-
134	270		D. If a technology center school district does not have any
135	271		health insurance coverage of the type required by this section, that
136		-	technology center school district shall ~~immedi ately~~ be enrolled in ~~ENR. H. B. NO. 3586 Page 4~~
	272	+	technology center school district shall im mediately be enrolled in
137	273		the health and dental insurance plans offered through the State and
138	274		Education Employees Group Insurance Oklahoma Employees Insurance and
139	275		Benefits Act.
140		-
141	276		E. A carrier providing health insurance coverage for employees
142	277		of a technology center school district health insurance group which
143	278		replaces a previous carrier for such technology center school
144	279		district employees shall provide coverage for each retired employee
145	280		who is receiving a benefit or terminates employment with a vested
146	281		benefit from the Teachers' Retirement System of Oklahoma and who is
147	282		enrolled in the health insurance group by the previous carrier at
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148	310		the time the previous carrier providing health insurance coverage is
149	311		replaced. Notwithstanding any provision in this section to t he
150	312		contrary, any person who retires pursuant to the provisi ons of the
151	313		Teachers' Retirement System of Oklahoma prior to May 1, 1993, or
152	314		terminates service with a vested benefit, pursuant to the provisions
153	315		of the Teachers' Retirement System of Oklahoma prior to May 1, 1993,
154	316		may continue to participate in the health and dental plans
155	317		authorized by the provisions of the State and Education Employees
156	318		Group Insurance Oklahoma Employees Insurance and Benefits Act.
157		-
158	319		F. In the event a technology center school distric t ceases to
159	320		exist, the assets and duties of said technology center school
160	321		district are transferred to one or more other technology center
161	322		school districts, said other technology center school district or
162	323		districts do not agree to employ all of the former e mployees of the
163	324		technology center school district that is ceasing to exist, and said
164	325		former employees who are not being reemployed have rights under
165	326		federal or state law to continue group insurance coverage, the
166	327		annexing technology center school district h aving the largest
167	328		general fund revenue for the most recent preceding fiscal year for
168	329		which data is available shall provide group insurance coverage to
169	330		said former employees not being retained during the period as
170	331		required by law.
171		-
172	332		SECTION 2. AMENDATORY 70 O.S. 2021, Section 26 -104, is
173	333		amended to read as follows:
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174	360
175	361		Section 26-104. A. Each fiscal year, the Legislature shall
176	362		appropriate adequate funding to the State Board of Education and the
177	363		State Board of Career and Technology Educat ion for the purpose of
178	364		providing a flexible benefit allowan ce to school district employees
179	365		pursuant to this act. Unless the Legislature appropriates adequate
180	366		funding specifically for the purpose of providing a flexible benefit
181		-	allowance to school district employees, the Oklahoma State Board of ~~ENR. H. B. NO. 3586 Page 5~~
	367	+	allowance to school district employees, the Oklahoma State Board of
182	368		Education shall allocate from the funds appropriated to the Oklahoma
183	369		State Board of Education for the support of public school activities
184	370		an amount to fully fund the flexible benefit allowance, which shall
185	371		occur first prior to allocating the funds for any other purpose.
186	372		The amount appropriated for funding and disbursed to school
187	373		districts shall be calculated by multiplying the number of eligible
188	374		school district employees employed by school districts which are
189	375		participating in the health insurance plan offered by the State and
190	376		Education Employees Group Insurance Oklahoma Employees Insurance and
191	377		Benefits Board or are self-insured as counted in February of each
192	378		year by the amount of the flexible benefit allowance credite d to the
193	379		eligible school employees as established in Sectio n 26-105 of this
194	380		title. Each Board shall disburse the total amount appropriated for
195	381		funding the flexible benefit allowance to school districts during
196	382		the fiscal year. From the total amount approp riated, each Board
197	383		shall disburse the appropriate amounts, based on the number of
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198	411		eligible school district employees employed by that school district,
199	412		to each school district.
200		-
201	413		B. Every school district shall establish or make available to
202	414		school district employees a cafeteria plan pursuant to 26 U.S.C.
203	415		Section 125 of the United States Code. The plan shall offer, as a
204	416		benefit, major medical health care plan coverage.
205		-
206	417		C. The flexible benefit allowance amount established pursuant
207	418		to Section 26-105 of this title shall be credited to each eligible
208	419		school district employee. School district employees shall elect
209	420		whether to use the flexible benefit allowance to pay for coverage in
210	421		the health insurance plan offered by the State and Education
211	422		Employees Group Insura nce Oklahoma Employees Insurance and Benefits
212	423		Board or the self-insured plan offered by the school district and
213	424		may receive the excess flexible benefit allowance as taxable
214	425		compensation as provided in Section 26 -105 of this title.
215		-
216	426		D. The administrator of the cafeteria plan shall maintain a
217	427		separate account for each participating school district employee.
218	428		School districts shall forward the school district employee flexible
219	429		benefit allowance amounts to the administrator for elected purchases
220	430		of cafeteria plan benefits.
221		-
222	431		E. Expenses included in an employee's salary adjustment
223	432		agreement pursuant to the cafeteria plan shall be limited to
224	433		expenses for:
225		-	ENR. H. B. NO. 3586 Page 6
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226	461		1. Premiums for any health insurance, health maintenance
227	462		organization, life insurance, long term disability in surance, dental
228	463		insurance or high deductible health benefit plan offered to
229	464		employees and their dependents; and
230		-
231	465		2. All other eligible benefit programs offered under 26 U.S.C.
232	466		Section 125 of the United States Code.
233		-
234	467		F. The flexible benefit allowance amount established in Section
235	468		26-105 of this title shall not be i ncluded as income in computation
236	469		of state retirement contributions and benefits or as part of the
237	470		Minimum Salary Schedule for teachers established in Section 18 -
238	471		114.12 of this title. School distri cts shall not consider the
239	472		flexible benefit allowance amount as income for eligible support
240	473		employees and thereby shall not reduce the salary of an eligible
241	474		support employee.
242		-
243	475		SECTION 3. AMENDATORY 70 O.S. 2021, Section 26 -105, is
244	476		amended to read as follows:
245		-
246	477		Section 26-105. A. The flexible benefit allowance shall be
247	478		used by a school district employee who is participating in the
248	479		cafeteria plan to purchase major medical health care plan coverage
249	480		offered by the school district throug h a cafeteria plan. Any excess
250	481		flexible benefit allowance over the cost of the major medical
251	482		coverage purchased by the employee who is participating in the
252	483		cafeteria plan may be used to purchase any of the additional
253	484		benefits offered by the school distric t or may be taken as taxable
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254	512		compensation as provided in su bsection C of this section. Certified
255	513		personnel who choose not to participate in the school -district-
256	514		sponsored cafeteria plan shall receive Sixty -nine Dollars and
257	515		seventy-one cents ($69.71) per mo nth as taxable compensation in lieu
258	516		of the flexible benefit allowance amount provided in subsection B of
259	517		this section. Support personnel who choose not to participate in
260	518		the school-district-sponsored cafeteria plan shall receive One
261	519		Hundred Eighty-nine Dollars and sixty-nine cents ($189.69) per month
262	520		as taxable compensation in lieu of the flexible benefit allowance
263	521		amount provided in subsection B of this section.
264		-
265	522		B. Each eligible school district employee shall be credited
266	523		annually with a specified amount as a flexible benefit allowance
267	524		which shall be available for the purchase of benefits. The amount
268	525		of the flexible benefit allowance credited to each eligible school
269	526		district employee shall be communicated to the employee prior to the
270		-	enrollment period for each plan year. ENR. H. B. NO. 3586 Page 7
271		-
	527	+	enrollment period for each plan year.
272	528		1. For the fiscal year ending June 30, 20 02, the flexible
273	529		benefit allowance amount for certified personnel shall be no less
274	530		than Sixty-nine Dollars and seventy -one cents ($69.71) per month.
275	531		For the fiscal year ending June 30, 2002, the f lexible benefit
276	532		allowance amount for support personnel shall be no less than One
277	533		Hundred Eighty-nine Dollars and sixty -nine cents ($189.69) per
278	534		month.
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279	561
280	562		2. For the fiscal year ending June 30, 2004, the flexible
281	563		benefit allowance amount for certified personn el shall be no less
282	564		than fifty-eight percent (58%) of the p remium amount for the
283	565		HealthChoice (Hi) option plan for an individual offered by the State
284	566		and Education Employees Group Insurance Oklahoma Employees Insurance
285	567		and Benefits Board. For the fiscal y ear ending June 30, 2003, and
286	568		each fiscal year thereafter, the flexible benefit allowance amount
287	569		for support personnel shall be no less than one hundred percent
288	570		(100%) of the premium amount for the HealthChoice (Hi) option plan
289	571		for an individual offered by the State and Education Employees Group
290	572		Insurance Oklahoma Employees Insurance and Benefits Board.
291		-
292	573		3. For the fiscal year ending June 30, 2005, and each fiscal
293	574		year thereafter, the flexible benefit allowance amount for certified
294	575		personnel shall be no les s than one hundred percent (100%) of the
295	576		premium amount for the HealthChoice (Hi) option plan for an
296	577		individual offered by the State and Education Employees Group
297	578		Insurance Oklahoma Employees Insurance and Benefits Board.
298		-
299	579		C. If a school district employee who is participating in the
300	580		cafeteria plan elects benefits whose sum total is less than the
301	581		flexible benefit allowance, the employee shall receive any excess
302	582		flexible benefit allowance as taxable compensation. Such taxable
303	583		compensation shall be paid in su bstantially equal amounts each pay
304	584		period over the plan year. Except as otherwise provided for in
305	585		subsection D of this section, on termination during a plan year, a
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306	613		participating school district employee shall have no right to
307	614		receive any taxable cash com pensation allocated to the portion of
308	615		the plan year after t he termination of the employee.
309		-
310	616		D. In cases where the employee of a school district fulfills
311	617		the terms of their contract and terminates employment for the
312	618		subsequent year, the employee shall be en titled to the flexible
313	619		benefit allowance for the remainder of the current benefit term.
314		-	For purposes of this subsection, "benefit term" shall mean the ~~ENR. H. B. NO. 3586 Page 8~~
	620	+	For purposes of this subsection, "benefit term" shall mean the
315	621		twelve-month period after the initiation of benefits for the
316	622		position held by the employee.
317		-
318	623		E. Each school district employee shall make an annual election
319	624		of benefits under the plan during an enrollment period to be held
320	625		prior to the beginning of each plan year. The enrollment period
321	626		dates will be determined annually and will be announced by the
322	627		school district, providing the enrollment period shall end no later
323	628		than thirty (30) days before the beginning of the plan year. Each
324	629		school district employee shall make an irrevocable advance election
325	630		for the plan year or the remainder of the plan year pursuant to
326	631		procedures the school district shall prescribe.
327		-
328	632		F. The school district shall prescribe the forms that school
329	633		district employees shall be required to use in making their
330	634		elections, and may prescribe deadlines and other procedures for
331	635		filing the elections.
332	636
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333	663		G. School district employees hired after the closing of the
334	664		enrollment period shall be allowed to make an election as provided
335	665		in this act.
336		-
337	666		H. A district board of education shall have the option of
338	667		providing a flexible benefit allowance to the superinte ndent of the
339	668		school district in an amount not more than the amount of the
340	669		flexible benefit allowance established for certified personnel in
341	670		subsection B of this section. Funding for the flexible benefit
342	671		allowance for a superintendent shall be provided thr ough local
343	672		revenue.
344		-
345	673		SECTION 4. AMENDATORY 74 O.S. 2021, Section 85.58A, is
346	674		amended to read as follows:
347		-
348	675		Section 85.58A A. The Office of Management and Enterprise
349	676		Services (OMES) shall establish for all state agencies, whether or
350	677		not subject to the Oklahoma Central Purchasing Act, and oth er
351	678		entities as provided by law a comprehensive professional risk
352	679		management program which shall:
353		-
354	680		1. Identify and evaluate risks of loss and exposures to loss to
355	681		officers, employees and properties;
356		-
357	682		2. Minimize risks through loss -prevention and loss-control
358	683		programs;
359		-	ENR. H. B. NO. 3586 Page 9
360	684		3. Transfer risks, if economically advantageous to the state,
361	685		by acquiring commercial insurance, contractual pass through of
362	686		liability, or by other means;
363	687
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364	714		4. Consolidate and administe r risk management plans and
365	715		programs including self -insurance programs, except State Employees
366	716		Group Insurance;
367		-
368	717		5. Determine feasibility of and, if feasible, establish self -
369	718		insurance programs, considering whether a program may be self -
370	719		supporting to remain financially and actuarially sound;
371		-
372	720		6. Provide a system to allocate insurance and program costs to
373	721		determine payment for insurance coverage and program expenses
374	722		provided by the Office of Management and Enterprise Services;
375		-
376	723		7. When requested by a state re tirement system or the State and
377	724		Education Employees Group Insurance Oklahoma Employees Insurance and
378	725		Benefits Board, assist in obtaining insurance authorized by law. If
379	726		requested by the Oklahoma State Regents for Higher Education, assist
380	727		trust funds for which the State Regents serve as trustees in
381	728		obtaining insurance authorized by law;
382		-
383	729		8. Assist state agencies and officers, employees, and members
384	730		thereof, charged with licensing authority, in obtaining insurance
385	731		for liability for judgments, based on the l icensing authority,
386	732		rendered by any court pursuant to feder al law;
387		-
388	733		9. When requested by a public trust established pursuant to
389	734		Title 60 of the Oklahoma Statutes of which the State of Oklahoma is
390	735		the beneficiary, obtain, provide or assist the public trust in
391	736		obtaining insurance authorized by law or trust indenture covering
392	737		any board member, trustee, official, officer, employee or volunteer
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393	765		for errors and omissions or liability risks arising from the
394	766		performance of official duties pursuant to law or trust in denture;
395		-
396	767		10. When requested by the Oklahoma State Regents for Higher
397	768		Education, for the purpose of insuring real property required
398	769		pursuant to Section 4018 of Title 70 of the Oklahoma Statutes, of
399	770		which the Oklahoma State Regents for Higher Education is t he
400	771		beneficiary, obtain, provide or assist the Oklahoma State Regents
401	772		for Higher Education in obtaining insurance for the real property
402	773		pursuant to the provisions of this section; and
403		-	ENR. H. B. NO. 3586 Page 10
404	774		11. Authorize the Risk Management Administrator to declare an
405	775		emergency for the purpose of mitigating damages to any state -owned
406	776		property insured under the comprehensive professional risk
407	777		management program administered by OMES.
408		-
409	778		B. The Director of the Office of Management and Enterprise
410	779		Services may hire or contract for the s ervices of a Risk Management
411	780		Administrator to supervise the Comprehensive Professional Risk
412	781		Management Program established pursuant to this section. If
413	782		appointed by the Director as a state employee, the Risk Management
414	783		Administrator shall be in the unclas sified service.
415		-
416	784		C. The Risk Management Administrator shall evaluate insurance
417	785		coverage needs and in force for state agencies, whether or not
418	786		subject to the Oklahoma Central Purchasing Act, and other entities
419	787		as provided by law. All entities shall submit to the Risk
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420	815		Management Administrator all information which the Risk Management
421	816		Administrator deems necessary to perform this duty.
422		-
423	817		D. The Risk Management Administrator in conjunction with the
424	818		State Purchasing Director under the authority of the Director o f the
425	819		Office of Management and Enterprise Services may nego tiate insurance
426	820		coverage and insurance -related services including, but not limited
427	821		to, insurance brokerage and consulting services. The State
428	822		Purchasing Director shall ensure open processes for so licitation and
429	823		qualification of insurance coverage and services providers. The
430	824		State Purchasing Director shall award contracts for insurance
431	825		coverage and services to the provider or providers which offer the
432	826		best and final terms and conditions. The State Purchasing Director
433	827		may authorize the Risk Management Admi nistrator to bind for
434	828		insurance coverage with providers.
435		-
436	829		E. The school districts of this state may request the Risk
437	830		Management Administrator to advise for the purchase of insurance
438	831		coverage for the school districts.
439		-
440	832		F. A state agency, whether or not subject to the Oklahoma
441	833		Central Purchasing Act, that contemplates purchase of property and
442	834		casualty insurance, shall provide details of the proposed purchase
443	835		to the Risk Management Administrator for ap proval or disapproval
444	836		prior to the purchase.
445	837
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446	864		G. The Director of the Office of Management and Enterprise
447	865		Services shall promulgate rules to effect the provisions of the
448		-	comprehensive professional risk management program. ENR. H. B. NO. 3586 Page 11
449		-
	866	+	comprehensive professional risk management program.
450	867		H. 1. a. Any community action agen cy established pursuant to
451	868		Sections 5035 through 5040 of this title may
452	869		participate in the comprehensive professional risk
453	870		management program established pursuant to this
454	871		section for risks incurred as a result of operating a
455	872		Head Start program or providing transportation
456	873		services to the public. The Risk Managemen t
457	874		Administrator shall obtain or provide for insurance
458	875		coverage for such community action agencies or bonding
459	876		for employees of such community action agencies. Any
460	877		liability insurance coverage obtai ned or provided
461	878		shall include expenses for administrative and legal
462	879		services obtained or provided by the Risk Management
463	880		Administrator.
464		-
465	881		b. The Risk Management Administrator shall determine
466	882		criteria for participation in the risk management
467	883		program by such community action agencies. In
468	884		addition, the Risk Management Administrator may
469	885		require each such community action agency to:
470		-
471	886		(1) provide adequate qualified personnel and suitable
472	887		facilities and equipment for operating a Head
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473	915		Start program or providing trans portation
474	916		services to the public, and
475		-
476	917		(2) comply with such standards as are necessary for
477	918		the protection of the clients it serves.
478		-
479	919		2. To receive coverage pursuant to this section, a community
480	920		action agency shall make payments for any insurance coverage an d
481	921		shall otherwise comply with the provisions of this sectio n and rules
482	922		promulgated by the Office pursuant to the provisions of this
483	923		section.
484		-
485	924		3. Requests for the insurance coverage provided pursuant to the
486	925		provisions of this subsection shall be submitted i n writing to the
487	926		Risk Management Administrator by the community action agencies.
488		-
489	927		I. The Risk Management Administrator may provide or obtain for
490	928		any state agency, public trust with the state as a beneficiary and a
491	929		director, officer, employee or member ther eof, insurance for
492	930		liability for loss, including judgments, awards, settlements, costs
493		-	and legal expenses, resulting from violations of rights or ~~ENR. H. B. NO. 3586 Page 12~~
	931	+	and legal expenses, resulting from violations of rights or
494	932		privileges secured by the Constitution or laws of the United States
495	933		of America which occur while a director, o fficer, employee or member
496	934		is acting within the scope of service to the State of Oklahoma. The
497	935		insurance shall be for coverage in excess of the limits on liability
498	936		established by The Governmental Tort Claims Act but shall not limit
499	937		or waive any immunities now or hereafter available to the State of
500	938		Oklahoma or any state agency, any public trust with the state as a
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501	966		beneficiary, or any director, officer, employee or member thereof
502	967		including, but not limited to, any immunities under the Eleventh
503	968		Amendment to the Constitution of the United States, state sovereign
504	969		immunity, and any absolute or qualified immunity held by any
505	970		director, officer, employee or member.
506		-
507	971		SECTION 5. AMENDATORY 74 O.S. 2021, Section 1316.2, is
508	972		amended to read as fo llows:
509		-
510	973		Section 1316.2 A. Any employee, other than an educ ation
511	974		employee, who retires pursuant to the provisions of the Oklahoma
512	975		Public Employees Retirement System or who has a vested benefit
513	976		pursuant to the provisions of the Oklahoma Public Employees
514	977		Retirement System may continue in force the health and dental
515	978		insurance benefits authorized by the provisions of the Oklahoma
516	979		Employees Insurance and Benefits Act, or other employer insurance
517	980		benefits if the employer does not participate in the plans offered
518	981		by the Office of Management and Enterprise Services, if suc h
519	982		election to continue in force is made within thirty (30) days from
520	983		the date of termination of service. Except as otherwise provided
521	984		for in Section 840-2.27I of this title and subsection H of this
522	985		section, health and dental insurance coverage may not be reinstated
523	986		at a later time if the election to continue in force is declined.
524	987		Vested employees other than education employees who have terminated
525	988		service and are not receiving benefits and effectiv e July 1, 1996,
526	989		nonvested persons who have terminated servi ce with more than eight
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527	1017		(8) years of participating service with a participating employer,
528	1018		who within thirty (30) days from the date of termination of service
529	1019		elect to continue such coverage, shall pay the full cost of the
530	1020		insurance premium at the rate and pursuant to the terms and
531	1021		conditions established by the Office. Provided also, any employee
532	1022		other than an education employee who commences employment with a
533	1023		participating employer on or after Sept ember 1, 1991, who terminates
534	1024		service with such employer on or after July 1, 1996, but who
535	1025		otherwise has insufficient years of service to retire or terminate
536	1026		service with a vested benefit pursuant to the provisions of the
537	1027		Oklahoma Public Employees Retireme nt System or to elect to continue
538		-	coverage as a nonvested employee as provided in this section, but ~~ENR. H. B. NO. 3586 Page 13~~
	1028	+	coverage as a nonvested employee as provided in this section, but
539	1029		who, immediately prior to employment with the participating
540	1030		employer, was covered as a dependent on the health and dental
541	1031		insurance policy of a spouse who w as an active employee other than
542	1032		an education employee, may count as part of his or her credited
543	1033		service for the purpose of determining eligibility to elect to
544	1034		continue coverage under this section, the time during which the
545	1035		terminating employee was covered as such a dependent.
546		-
547	1036		B. 1. Health insurance benefit plans offered pursuant to this
548	1037		section shall include:
549		-
550	1038		a. indemnity plans offered through the Office,
551		-
552	1039		b. managed care plans offered as alternatives to the
553	1040		indemnity plans offered through the Office,
554	1041
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555	1068		c. Medicare supplements offered pursuant to the Oklahoma
556	1069		Employees Insurance and Benefits Act,
557		-
558	1070		d. Medicare risk-sharing contracts offered as
559	1071		alternatives to the Medicare supplements offered
560	1072		through the Office. All Medicare risk -sharing
561	1073		contracts shall be sub ject to a risk adjustment
562	1074		factor, based on generally accepted actuarial
563	1075		principles for adverse selection which may occur, and
564		-
565	1076		e. for the Oklahoma Public Employees Retirement System,
566	1077		other employer-provided health insurance benefit plans
567	1078		if the employer does not participate in the plans
568	1079		offered pursuant to the Okla homa Employees Insurance
569	1080		and Benefits Act.
570		-
571	1081		2. Health insurance benefit plans offered pursuant to this
572	1082		section shall provide prescription drug benefits, except for plans
573	1083		designed pursuant to the Me dicare Prescription Drug Improvement and
574	1084		Modernization Act of 2003, pursuant to 42 USCA Section 1395w -101, et
575	1085		seq., for which provision of prescription drug benefits is optional,
576	1086		and except for plans offered pursuant to subparagraph e of paragraph
577	1087		1 of this subsection.
578		-
579	1088		C. 1. Designated public retirement systems shall contribute a
580	1089		monthly amount towards the health insurance premium of certain
581	1090		individuals receiving benefits from the public retirement system as
582	1091		follows:
583		-	ENR. H. B. NO. 3586 Page 14
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584	1119		a. a retired employee, other than an e ducation employee
585	1120		or an employee who participates in the defined
586	1121		contribution system administered by the Oklahoma
587	1122		Public Employees Retirement System on or after
588	1123		November 1, 2015, who is receiving benefits from the
589	1124		Oklahoma Public Employees Retirement Syste m after
590	1125		September 30, 1988, shall have One Hundred Five
591	1126		Dollars ($105.00), or the premium rate of the health
592	1127		insurance benefit plan, whichever is less, paid by the
593	1128		Oklahoma Public Employees Retirement System to the
594	1129		Board or to another insurance carrier or other
595	1130		qualified benefits administrator of the employer if
596	1131		the employer does not participate in the plans offered
597	1132		by the Office in the manner specified in subsection G
598	1133		of this section,
599		-
600	1134		b. a retired employee or surviving spouse other than an
601	1135		education employee who is receiving benefits from the
602	1136		Oklahoma Law Enforcem ent Retirement System after
603	1137		September 30, 1988, is under sixty -five (65) years of
604	1138		age and is not otherwise eligible for Medicare shall
605	1139		have the premium rate for the health insurance benefit
606	1140		plan or One Hundred Five Dollars ($105.00), whichever
607	1141		is less, paid by the Oklahoma Law Enforcement
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	1168	+
608	1169		Retirement System to the Office in the manner
609	1170		specified in subsection G of this section,
610		-
611	1171		c. a retired employee other than an education employee
612	1172		who is receiving benefits from the Oklahoma Law
613	1173		Enforcement Retirement System after September 30,
614	1174		1988, is sixty-five (65) years of age or older or who
615	1175		is under sixty-five (65) years of age and is eligible
616	1176		for Medicare shall have One Hundred Five Dollars
617	1177		($105.00), or the pr emium rate of the health insurance
618	1178		benefit plan, whichever is less, paid by the Oklahoma
619	1179		Law Enforcement Retirement System to the Office in the
620	1180		manner specified in subsection G of this section, and
621		-
622	1181		d. a retired employee other than an education employee
623	1182		who is receiving benefits from the Uniform Retirement
624	1183		System for Justices and Judges after September 30,
625	1184		1988, shall have One Hundred Five Dollars ($105.00),
626	1185		or the premium rate of the health insurance plan,
627		-	whichever is less, paid by the Uniform Retirement ~~ENR. H. B. NO. 3586 Page 15~~
	1186	+	whichever is less, paid by the Uniform Retirement
628	1187		System for Justices and Judges to the Office in the
629	1188		manner specified in subsection G of this section.
630		-
631	1189		2. Premium payments made pursuant to this section shall be made
632	1190		subject to the following conditions:
633		-
634	1191		a. the health plan shall be authorized by the provisi ons
635	1192		of the Oklahoma Employees Insurance and Benefits Act,
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636	1220		except that if an employer from which an employee
637	1221		retired or with a vested benefit pursuant to the
638	1222		provisions of the Oklahoma Public Employees Retirement
639	1223		System does not participate in the plans aut horized by
640	1224		the provisions of the Oklahoma Employees Insurance and
641	1225		Benefits Act, the health plan will be the health
642	1226		insurance benefits of the employer from which the
643	1227		individual retired or vested,
644		-
645	1228		b. for plans offered by the Oklahoma Employees Insurance
646	1229		and Benefits Act, the amount to be paid shall be
647	1230		determined pursuant to the provisions of this
648	1231		subsection and shall first be applied in whole or in
649	1232		part to the prescription drug coverage premium. Any
650	1233		remaining amount shall be applied toward the medical
651	1234		coverage premium,
652		-
653	1235		c. for all plans, if the amount paid by the public
654	1236		retirement system does not cover the full cost of the
655	1237		elected coverage, the individual shall pay the
656	1238		remaining premium amount, and
657		-
658	1239		d. payment shall be made by the retirement systems in the
659	1240		manner specified under subsection G of this section.
660		-
661	1241		D. For any member of the Oklahoma Law Enforcement Retirement
662	1242		System killed in the line of duty, whether the member was killed in
663	1243		the line of duty prior to May 18, 2005, or on or after May 18, 2005,
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664	1271		or if the member was on a disability leave status at the time of
665	1272		death, the surviving spouse or dependents of such deceased member of
666	1273		the Oklahoma Law Enforcement Retirement System may elect to continue
667	1274		or commence health and dental insurance benefits, provided th e
668	1275		dependents pay the full cost of such insurance, and for d eaths
669	1276		occurring on or after July 1, 2002, such election is made within
670	1277		thirty (30) days of the date of death. The eligibility for the
671	1278		benefits shall terminate for the surviving children when the
672		-	children cease to quali fy as dependents. ENR. H. B. NO. 3586 Page 16
673		-
	1279	+	children cease to qualify as dependents.
674	1280		E. Effective July 1, 2004, a retired member of the Oklahoma Law
675	1281		Enforcement Retirement System who retired from the System by means
676	1282		of a personal and traumatic injury of a catastrophic nature and in
677	1283		the line of duty and any surviving spouse of such retired member and
678	1284		any surviving spouse of a member who was killed in the line of duty
679	1285		shall have one hundred percent (100%) of the retired member's or
680	1286		surviving spouse's health care premium cost, whether the member or
681	1287		surviving spouse elects coverage under the Medicare supplement or
682	1288		Medicare risk-sharing contract, paid by the Oklahoma Law Enforcement
683	1289		Retirement System to the Office in the manner specified in
684	1290		subsection H of this section. For plans offered by the Office, su ch
685	1291		contributions will first be applied in whole or in part to the
686	1292		prescription drug coverage premium, if any.
687		-
688	1293		F. Dependents of a deceased employee who was on active work
689	1294		status or on a disability leave at the time of death or of a
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690	1322		participating retardant or of any person who has elected to receive
691	1323		a vested benefit under the Oklahoma Public Employees Retirement
692	1324		System, the Uniform Retirement System for Justices and Judges or the
693	1325		Oklahoma Law Enforcement Retirement System may continue the health
694	1326		and dental insurance benefits in force, provided the dependents pay
695	1327		the full cost of such insurance and they were covered as eligible
696	1328		dependents at the time of such death and such election is made
697	1329		within thirty (30) days of date of death. The eligibility for the
698	1330		benefits shall terminate for the surviving children when the
699	1331		children cease to qualify as dependents.
700		-
701	1332		G. The amounts required to be paid by the Oklahoma Public
702	1333		Employees Retirement System, the Uniform Retirement System for
703	1334		Justices and Judges and the Oklahoma Law Enforcement Retirement
704	1335		System pursuant to this section shall be forwarded no later than the
705	1336		tenth day of each month following the month for which payment is due
706	1337		by the Oklahoma Public Employees Retirement System Board of Trustees
707	1338		or the Oklahoma Law E nforcement Retirement Board to the Office for
708	1339		deposit in the Health, Dental and Life Insurance Reserve Fund or to
709	1340		another insurance carrier or other administrator of qualified
710	1341		benefits of the employer as provided for in subsection H of Section
711	1342		1315 of this title.
712		-
713	1343		H. Upon retirement from employment of the Board of Regents of
714	1344		the University of Oklahoma, any person who was or is employed at the
715	1345		George Nigh Rehabilitation Institute and who transferred employment
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716	1373		pursuant to Section 3427 of Title 70 of the Okla homa Statutes, any
717		-	person who was employed at the Medical Technology and Research ~~ENR. H. B. NO. 3586 Page 17~~
	1374	+	person who was employed at the Medical Technology and Research
718	1375		Authority and who transferred employment pursuant to Section 7068 of
719	1376		this title and any person who is a member of the Oklahoma Law
720	1377		Enforcement Retirement System pursuant to t he authority of Section
721	1378		2-314 of Title 47 of the Oklahoma S tatutes may participate in the
722	1379		benefits authorized by the provisions of the Oklahoma Employees
723	1380		Insurance and Benefits Act for retired participants including
724	1381		health, dental and life insurance benefi ts, if such election to
725	1382		participate is made within thirty (30) days from the date of
726	1383		termination of service. Life insurance benefits for any such person
727	1384		who transferred employment shall not exceed the coverage the person
728	1385		had at the time of such transfer. Retirees who transferred
729	1386		employment and who participate pu rsuant to this paragraph shall pay
730	1387		the premium for elected benefits less any amounts paid by a state
731	1388		retirement system pursuant to this section.
732		-
733	1389		SECTION 6. AMENDATORY 74 O .S. 2021, Section 1321, is
734	1390		amended to read as follows:
735		-
736	1391		Section 1321. A. The Office of Management and Enterprise
737	1392		Services shall have the authority to determine all rates and life,
738	1393		dental and health benefits. All rates shall be compiled in a
739	1394		comprehensive Schedule of Benefits. The Schedule of Benefits shall
740	1395		be available for inspection during regular business hours at the
741	1396		Office of Management and Enterprise Services. The Office shall have
	1397	+
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742	1424		the authority to annually adjust the rates and benefits based on
743	1425		claim experience.
744		-
745	1426		B. The premiums for such insurance plans offered for the next
746	1427		plan year shall be established as follows:
747		-
748	1428		1. For active employees and their dependents, the Office's
749	1429		premium determination shall be made no later than the bid submission
750	1430		date for health maintenance organizations set by the Oklahoma State
751	1431		Employees Benefits Council Oklahoma Employees Insurance and Benefits
752	1432		Board, which shall be set in August no later than the third Friday
753	1433		of that month; and
754		-
755	1434		2. For all other covered members and dependents, the Office's
756	1435		and the health maintenance organizations' premium determinations
757	1436		shall be no later than the fourth Friday of September.
758		-
759	1437		C. The Office may approve a mid -year adjustment provided the
760	1438		need for an adjustment is substantiated by an act uarial
761	1439		determination or more current experience rating. Th e only
762		-	publication or notice requirements that shall apply ~~t o~~ the Schedule ~~ENR. H. B. NO. 3586 Page 18~~
	1440	+	publication or notice requirements that shall apply to the Schedule
763	1441		of Benefits shall be those requirements provided in the Oklahoma
764	1442		Open Meeting Act. It is the intent of the Legislature th at the
765	1443		benefits provided not include cosmetic dental procedures except for
766	1444		certain orthodontic procedures as adopted by the Director.
767		-
768	1445		SECTION 7. AMENDATORY 74 O.S. 2021, Section 1332, is
769	1446		amended to read as follows:
	1447	+
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770	1473
771	1474		Section 1332. A. The State and Education Employees Group
772	1475		Insurance Oklahoma Employees Insurance and Benefits Board shall
773	1476		establish a Disability Insurance Program for state employees. The
774	1477		program shall consist of a long -term disability plan and a short -
775	1478		term disability plan. Participation in the program shall be limited
776	1479		to state employees who have been state employees for a period of not
777	1480		less than one (1) month and who are eligible for enrollment in the
778	1481		Health Insurance Plan administered by the Board. No state employee
779	1482		shall be eligible to receive any benefits from the long -term
780	1483		disability program unless the state employee has used all of the
781	1484		sick leave of the employee. The Board shall promulgate such rules
782	1485		as are necessary for adoption and administration of the Disabi lity
783	1486		Insurance Program, including but not limited to benefit eligibility
784	1487		requirements, methods for computing benefit amounts, benefits
785	1488		amounts, and verification of medical and health status of employees
786	1489		applying for or receiving benefits.
787		-
788	1490		B. The Disability Insurance Program shall be funded from
789	1491		appropriations made by the Legislature. Employees shall not be
790	1492		required to make contributions to participate in the program.
791		-
792	1493		C. Employee disability insurance coverage shall begin on March
793	1494		1, 1986.
794		-
795	1495		D. The Board shall establish a grievance procedure by which a
796	1496		three-member grievance panel established in the same manner as
797	1497		specified in paragraph 6 of Section 1306 Section 1304.1 of this
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798	1525		title shall act as an appeals body for complaints regarding the
799	1526		allowance and payment of claims, eligibility, and other matters.
800	1527		The grievance procedure provided by this subsection shall be the
801	1528		exclusive remedy available to persons having complaints against the
802	1529		insurer. Such grievance procedure shall be subject to the Oklahoma
803	1530		Administrative Procedures Act, including provisions for the review
804	1531		of agency decisions by the district court. The grievance panel
805	1532		shall schedule a hearing regarding the allowance and payment of
806	1533		claims, eligibility and other matters within sixty (60) days from
807		-	the date the grievance ~~p anel~~ receives a written request for a ~~ENR. H. B. NO. 3586 Page 19~~
	1534	+	the date the grievance panel receives a written request for a
808	1535		hearing. Upon written request to the grievance panel received not
809	1536		less than ten (10) days before the hearing date, the grievance panel
810	1537		shall cause a full stenographic record of the proceedings to be made
811	1538		by a licensed or certified court reporter at the insured employee's
812	1539		expense.
813		-
814	1540		E. The Board may establish a claim processing division for
815	1541		claims administration or may contract for claims administration
816	1542		services with a private insurance carrier or a company that
817	1543		specializes in claims administration of any i nsurance that the Board
818	1544		may be directed to offer.
819		-
820	1545		SECTION 8. AMENDATORY 74 O.S. 2021, Section 1332.1, is
821	1546		amended to read as follows:
822		-
823	1547		Section 1332.1 A. The State and Education Employees Group
824	1548		Insurance The Oklahoma Employees Insurance and Benefits Board shall
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825	1576		collect from state agencies each month, the premium amount, as
826	1577		determined by the Board, for each employee of a state agency that
827	1578		participates in the Disability Insura nce Program. Said sum shall be
828	1579		deposited in the State Empl oyees Disability Insurance Reserve Fund
829	1580		for use in accordance with law.
830		-
831	1581		B. The State and Education Employees Group Insurance Oklahoma
832	1582		Employees Insurance and Benefits Board shall submit a monthly
833	1583		statement of the revenues and disbursements of the Disability
834	1584		Insurance Program to the Governor, the Speaker of the House of
835	1585		Representatives, the President Pro Tempore of the Senate and the
836	1586		Legislative Service Bureau. The Legislative Service Bureau shall
837	1587		distribute copies of such monthly statements to the fiscal staff of
838	1588		the House of Representatives and the State Senate.
839		-
840	1589		C. On or before March 1 of each year, the State and Education
841	1590		Employees Group Insurance Oklahoma Employees Insurance and Benefits
842	1591		Board shall submit a report of the actuarially -determined future
843	1592		needs of the Disability Insurance Program. Said report shall be
844	1593		submitted and distributed as provided for in subsection B of this
845	1594		section.
846		-
847	1595		D. The Board shall provide for the continuation of depen dent
848	1596		health coverage to disability recipients for that peri od of time
849	1597		when the employee is qualified as disabled but not yet received
850	1598		disability benefit income.
851		-	ENR. H. B. NO. 3586 Page 20
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852	1626		E. The Board shall deduct all dependent health coverage
853	1627		premiums due and owing from the first retroactive disability payment
854	1628		and each payment thereafter.
855		-
856	1629		SECTION 9. AMENDATORY 74 O.S. 2021, Section 1346, is
857	1630		amended to read as follows:
858		-
859	1631		Section 1346. There is hereby created in the State Treasury a
860	1632		revolving fund for the State and Education Employees Group Insurance
861	1633		Oklahoma Employees Insurance and Benefits Board to be designated the
862	1634		"Flexible Benefit Revolving Fund". The fund shall be a continuing
863	1635		fund, not subject to fiscal year limitations, and shall consist of
864	1636		employee payroll deductions and contributions for flexible spending
865	1637		accounts. All monies accruing to the credit of said fund are hereby
866	1638		appropriated and may be budgeted and expended by the State and
867	1639		Education Employees Group Insurance Oklahoma Employees Insurance a nd
868	1640		Benefits Board for expenses of the state employees flexi ble benefits
869	1641		plan and for expenses authorized by law. The State and Education
870	1642		Employees Group Insurance Oklahoma Employees Insurance and Benefits
871	1643		Board is authorized to pay employee claim costs as sociated with the
872	1644		state employees flexible benefits plan from monies accrued for said
873	1645		purpose. Expenditures from said funds shall be pursuant to the laws
874	1646		of the state and statutes relating to the state employees flexible
875	1647		benefits plan.
876		-
877	1648		SECTION 10. AMENDATORY 74 O.S. 2021, Section 1370, is
878	1649		amended to read as follows:
	1650	+
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879	1676
880	1677		Section 1370. A. Subject to the requirement that a participant
881	1678		must elect the default benefits, the basic plan, or is a person who
882	1679		has retired from a branch of the Un ited States military and has been
883	1680		provided with health care through a federal plan, to the extent that
884	1681		it is consistent with federal law, or is an active employee who is
885	1682		eligible to participate and who is a participant who has opted out
886	1683		of the state's basic plan according to the provisions of Section
887	1684		1308.3 of this title, and provides proof of this coverage, flexible
888	1685		benefit dollars may be used to purchase any of the benefits offered
889	1686		by the Oklahoma State Employees Benefits Council Oklahoma Employees
890	1687		Insurance and Benefits Board under the flexible benefits plan. A
891	1688		participant who has opted out of the state's basic plan and provided
892	1689		proof of other coverage as described in this subsection shall
893	1690		receive One Hundred Fifty Dollars ($150.00) in lieu of the flexib le
894	1691		benefit monthly. A participant's flexible benefit dolla rs for a
895		-	plan year shall consist of the sum of (1) flexible benefit allowance ~~ENR. H. B. NO. 3586 Page 21~~
	1692	+	plan year shall consist of the sum of (1) flexible benefit allowance
896	1693		credited to a participant by the participating employer, and (2) pay
897	1694		conversion dollars elected by a participant.
898		-
899	1695		B. Each participant shall be credited annually with a specified
900	1696		amount as a flexible benefit allowance which shall be available for
901	1697		the purchase of benefits. For participants on a biweekly payroll
902	1698		system the disbursement of the flexible benefit allowance shal l be
903	1699		credited over twenty -four pay periods resulting in two pay periods
904	1700		that do not reflect a credit. The amount of the flexible benefit
	1701	+
	1702	+	SENATE FLOOR VERSION - HB3586 SFLR Page 34
	1703	+	(Bold face denotes Committee Amendments) 1
	1704	+	2
	1705	+	3
	1706	+	4
	1707	+	5
	1708	+	6
	1709	+	7
	1710	+	8
	1711	+	9
	1712	+	10
	1713	+	11
	1714	+	12
	1715	+	13
	1716	+	14
	1717	+	15
	1718	+	16
	1719	+	17
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	1722	+	20
	1723	+	21
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	1726	+	24
	1727	+
905	1728		allowance credited to each participant shall be communicated to him
906	1729		or her prior to the enrollment period for each pla n year.
907		-
908	1730		C. Except as provided in subsection D of this section, for the
909	1731		plan year beginning January 1, 2013, the benefit allowance shall not
910	1732		be less than the Plan Year 2012 benefit allowance amounts, and each
911	1733		plan year thereafter, the amount of a participa nt's benefit
912	1734		allowance, which shall be the total amount the employer contributes
913	1735		for the payment of insurance premiums or other benefits, shall be:
914		-
915	1736		1. The greater of the amount of benefit which the participant
916	1737		would have qualified for as of plan year 2021 , or an amount equal to
917	1738		the monthly premium of the HealthChoice High Option plan, the
918	1739		average monthly premiums of the dental plans, the monthly premium of
919	1740		the disability plan, and the monthly premium of the basic life
920	1741		insurance plan offered to state employ ees or the amount determined
921	1742		by the Council based on a form ula for determining a participant's
922	1743		benefit credits consistent with the requirements of 26 U.S.C.,
923	1744		Section 125(g)(2) and regulations thereunder;
924		-
925	1745		2. The greater of the amount of benefit which the p articipant
926	1746		would have qualified for as of plan year 2021 or an amount equal to
927	1747		the monthly premium of the HealthChoice High Option plan, the
928	1748		average monthly premiums of the dental plans, the monthly premium of
929	1749		the disability plan, and the monthly premium o f the basic life
930	1750		insurance plan offered to state employees plus one of the additional
	1751	+
	1752	+	SENATE FLOOR VERSION - HB3586 SFLR Page 35
	1753	+	(Bold face denotes Committee Amendments) 1
	1754	+	2
	1755	+	3
	1756	+	4
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	1759	+	7
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	1761	+	9
	1762	+	10
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	1777	+
931	1778		amounts as follows for participants who elect to include one or more
932	1779		dependents:
933		-
934	1780		a. for a spouse, seventy -five percent (75%) of the
935	1781		HealthChoice High Option plan, availab le for coverage
936	1782		of a spouse,
937		-
938	1783		b. for one child, seventy -five percent (75%) of the
939	1784		HealthChoice High Option plan, for coverage of one
940		-	child, ENR. H. B. NO. 3586 Page 22
941		-
	1785	+	child,
942	1786		c. for two or more children, seventy -five percent (75%)
943	1787		of the HealthChoice High Option plan, for coverage of
944	1788		two or more children,
945		-
946	1789		d. for a spouse and one child, seventy -five percent (75%)
947	1790		of the HealthChoice High Option plan, for coverage of
948	1791		a spouse and one child, or
949		-
950	1792		e. for a spouse and two or more children, seventy -five
951	1793		percent (75%) of the HealthChoice High Option p lan,
952	1794		for coverage of a spouse and two or more children;
953		-
954	1795		3. For the plan year beginning January 1, 2022, the amount of a
955	1796		participant's benefit allowance shall be increased by two percent
956	1797		(2%) from the amount provided in the previous year;
957		-
958	1798		4. For the plan year beginning January 1, 2023, the amount of a
959	1799		participant's benefit allowance shall be increased by two percent
960	1800		(2%) from the amount provided in the previous year; or
	1801	+
	1802	+	SENATE FLOOR VERSION - HB3586 SFLR Page 36
	1803	+	(Bold face denotes Committee Amendments) 1
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	1823	+	21
	1824	+	22
	1825	+	23
	1826	+	24
961	1827
962	1828		5. The greater of the amount of benefit which the participant
963	1829		would have qualified for as of plan year 2023, or an amount equal to
964	1830		the monthly premium of the HealthChoice High Option plan, the
965	1831		average monthly premiums of the dental plans, the monthly premium of
966	1832		the disability plan and the monthly premium of the basic life
967	1833		insurance plan offered to state employees plus one of the additional
968	1834		amounts as follows for participants who elect to include one or more
969	1835		dependents:
970		-
971	1836		a. for a spouse, seventy -five percent (75%) of the
972	1837		HealthChoice High Option plan, available for coverage
973	1838		of a spouse,
974		-
975	1839		b. for one child, seventy-five percent (75%) of the
976	1840		HealthChoice High Option plan, for coverage of one
977	1841		child,
978		-
979	1842		c. for two or more children, seventy -five percent (75%)
980	1843		of the HealthChoice High Option plan, for coverage of
981	1844		two or more children,
982		-
983	1845		d. for a spouse and one child, seventy-five percent (75%)
984	1846		of the HealthChoice H igh Option plan, for coverage of
985		-	a spouse and one child, or ENR. H. B. NO. 3586 Page 23
986		-
	1847	+	a spouse and one child, or
987	1848		e. for a spouse and two or more children, seventy -five
988	1849		percent (75%) of the HealthChoice High Option plan,
989	1850		for coverage of a spouse and t wo or more children.
	1851	+
	1852	+	SENATE FLOOR VERSION - HB3586 SFLR Page 37
	1853	+	(Bold face denotes Committee Amendments) 1
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990	1877
991	1878		D. To the extent that it is consistent with federal laws and
992	1879		regulations, and in particular the regulations set forth by the
993	1880		Secretary of Defense in 32 C.F.R. Section 199.8(d)(6), a benefit may
994	1881		be provided to an employee who is an eli gible TRICARE beneficiary
995	1882		whereby he or she may purchase a group TRICARE Supplemental product
996	1883		under a qualifying cafeteria plan consistent with the requirements
997	1884		of 26 U.S.C., Section 125, provided that:
998		-
999	1885		1. The state, as employer, may not provide any payme nt for nor
1000	1886		receive any consideration or compensation for offering the benefit;
1001		-
1002	1887		2. The employer's only involvement is in providing the
1003	1888		administrative support for the benefit under the cafeteria plan; and
1004		-
1005	1889		3. The employee's participation in the plan is comp letely
1006	1890		voluntary.
1007		-
1008	1891		The benefit allowance under paragraph 2 o f subsection C of this
1009	1892		section of an employee whose plan participation includes a group
1010	1893		TRICARE Supplemental benefit shall not include any allowance or
1011	1894		portion thereof for such TRICARE Supplemental benefit.
1012		-
1013	1895		E. This section shall not prohibit payments for supplemental
1014	1896		health insurance coverage made pursuant to Section 1314.4 of this
1015	1897		title or payments for the cost of providing health insurance
1016	1898		coverage for dependents of employees of the Grand River D am
1017	1899		Authority.
1018		-
1019	1900		F. If a participant desires to buy benefits whose sum total of
1020	1901		benefit prices is in excess of his or her flexible benefit
	1902	+
	1903	+	SENATE FLOOR VERSION - HB3586 SFLR Page 38
	1904	+	(Bold face denotes Committee Amendments) 1
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	1927	+	24
	1928	+
1021	1929		allowance, the participant may elect to use pay conversion dollars
1022	1930		to purchase such excess benefits. Pay conversion do llars may be
1023	1931		elected through a salary reduction agreement made pursuant to the
1024	1932		election procedures of Section 1371 of this title. The elected
1025	1933		amount shall be deducted from the participant's compensation in
1026	1934		equal amounts each pay period, with the exception of participants on
1027	1935		a biweekly payroll system, where such d eduction shall occur over
1028	1936		twenty-four pay periods over the plan year. On termination of
1029	1937		employment during a plan year, a participant shall have no
1030		-	obligation to pay the participating employer any pay conversion ~~ENR. H. B. NO. 3586 Page 24~~
	1938	+	obligation to pay the participating employer any pay conversion
1031	1939		dollars allocated to the portion of the plan year after the
1032	1940		participant's termination of employment.
1033		-
1034	1941		G. If a participant elects benefits whose sum total of benefit
1035	1942		prices is less than his or her flexible benefit allowance, he or she
1036	1943		shall receive any excess flexible benefit allowance as taxable
1037	1944		compensation. Such taxable compensation will be paid in
1038	1945		substantially equal amounts each pay period, with the exception of
1039	1946		participants on a biweekly payroll system, where such deduction
1040	1947		shall occur over twenty-four pay periods over the plan year. On
1041	1948		termination during a plan year, a participant shall have no right to
1042	1949		receive any such taxable cash compensation allocated to the portion
1043	1950		of the plan year after the participant's termination. Nothing
1044	1951		herein shall affect a participant's obligation to elect the mi nimum
1045	1952		benefits or to accept the default benefits of the plan with
	1953	+
	1954	+	SENATE FLOOR VERSION - HB3586 SFLR Page 39
	1955	+	(Bold face denotes Committee Amendments) 1
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	1962	+	8
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	1967	+	13
	1968	+	14
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	1970	+	16
	1971	+	17
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	1974	+	20
	1975	+	21
	1976	+	22
	1977	+	23
	1978	+	24
	1979	+
1046	1980		corresponding reduction in the sum of his or her flexible benefit
1047	1981		allowance equal to the sum total benefit price of such minimum
1048	1982		benefits or default benefits.
1049		-
1050	1983		SECTION 11. REPEALER 74 O.S. 2021, Section 1329.1, is
1051	1984		hereby repealed.
1052		-
1053	1985		SECTION 12. REPEALER 74 O.S. 2021, Sections 1381, 1382,
1054	1986		1383, and 1384, are hereby repealed.
1055		-
1056	1987		SECTION 13. This act shall become effective November 1, 2024.
1057		-	ENR. H. B. NO. 3586 Page 25
1058		-	Passed the House of Representatives the 6th day of March, 2024.
1059		-
1060		-
1061		-
1062		-
1063		-	Presiding Officer of the House
1064		-	of Representatives
1065		-
1066		-
1067		-
1068		-	Passed the Senate the 25th day of April, 2024.
1069		-
1070		-
1071		-
1072		-
1073		-	Presiding Officer of the Senate
1074		-
1075		-
1076		-	OFFICE OF THE GOVERNOR
1077		-	Received by the Office of the Governor this ____________________
1078		-	day of ___________________, 20 _______, at _______ o'clock _______ M.
1079		-	By: _________________________________
1080		-	Approved by the Governor of the State of Oklahoma this _____ ____
1081		-	day of ___________________, 20_______, at _______ o'clock _______ M.
1082		-
1083		-
1084		-	_________________________________
1085		-	Governor of the State of Oklahoma
1086		-
1087		-	OFFICE OF THE SECRETARY OF STATE
1088		-	Received by the Office of the Secretary of State this __________
1089		-	day of ___________________, 20_______, at _______ o'clock _______ M.
1090		-	By: _________________________________
1091		-
	1988	+	COMMITTEE REPORT BY: COMMITTEE ON RETIREMENT AND INSURANCE
	1989	+	April 2, 2024 - DO PASS