The proposed bill would amend current statutes regarding the Public Safety Cancer Insurance Policy Program by changing the method of calculating administrative costs. Under current law, the board may use up to ten percent of the account's deposited monies for administrative costs. The bill would modify this to allow the board to use up to ten percent of the total claims paid, averaged over the previous five years, excluding claim processing costs. Additionally, the deadline for determining administrative costs would shift from July 31 to June 30, and the provision allowing the use of funds from previous years if no deposits were made in a given year would be removed.

Furthermore, the bill clarifies that employers required to participate in the program must pay the premiums for the program and include these premiums as wages for participating firefighters and peace officers, subject to federal and state income and employment taxes. The bill also makes technical changes to ensure that the program's income and coverage are excluded from gross income for federal tax purposes, aligning with the legislature's intent.

Statutes affected:
Introduced Version: 38-643
House Engrossed Version: 38-643