1 STATE OF OKLAHOMA
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2 2nd Session of the 59th Legislature (2024)
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3 HOUSE BILL 3586 By: Strom
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6 AS INTRODUCED
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7 An Act relating to state employee health insurance;
7 amending 70 O.S. 2021, Section 14-108.1, which
8 relates to health insurance plan for employees;
8 modifying references to entity names; amending 70
9 O.S. 2021, Section 26-104, which relates to funding
9 to provide flexible benefit allowance; modifying
10 references to entity names; amending 70 O.S. 2021,
10 Section 26-105, which relates to use of flexible
11 benefit allowance; modifying references to entity
11 names; amending 74 O.S. 2021, Section 85.58A, which
12 relates to establishment of comprehensive
12 professional risk management program; modifying
13 references to entity names; amending 74 O.S. 2021,
13 Section 1316.2, which relates to continuance of
14 health and dental insurance benefits; modifying
14 citations; amending 74 O.S. 2021, Section 1321, which
15 relates to determination of rates and benefits;
15 modifying references to entity names; amending 74
16 O.S. 2021, Section 1332, which relates to
16 establishment of disability insurance program for
17 state employees; modifying references to entity names
17 and updating citations; amending 74 O.S. 2021,
18 Section 1332.1, which relates to collections from
18 state agencies; modifying references to entity names;
19 amending 74 O.S. 2021, Section 1346, which relates to
19 creation of flexible benefit revolving fund;
20 modifying references to entity names; amending 74
20 O.S. 2021, Section 1370, which relates to flexible
21 benefit dollars in the Oklahoma State Employees
21 Benefits Act; modifying references to entity names;
22 and providing an effective date.
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Req. No. 9487 Page 1
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2 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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3 SECTION 1. AMENDATORY 70 O.S. 2021, Section 14-108.1, is
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4 amended to read as follows:
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5 A. The board of education of each technology center school
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6 district in this state shall provide a health insurance plan for the
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7 employees of the technology center school district. Technology
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8 center school districts may obtain health and dental insurance
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9 coverage as provided for in the State and Education Employees Group
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10 Insurance Oklahoma Employees Insurance and Benefits Act or may
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11 obtain other health insurance coverage. Any technology center
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12 district that does not participate in the health and dental
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13 insurance plans offered through the State and Education Employees
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14 Group Insurance Oklahoma Employees Insurance and Benefits Act shall
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15 obtain health insurance coverage for the employees which provides
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16 open enrollment, and provide for the continuation of health
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17 insurance coverage, including supplemental Medicare insurance
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18 coverage, for those district employees who retire from said district
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19 after September 30, 1991, with a vested benefit in the Teachers'
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20 Retirement System of Oklahoma. A retired person who begins
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21 receiving benefits from the Teachers' Retirement System of Oklahoma
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22 after September 30, 1991, who retires from a technology center
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23 school district that provides other health insurance coverage, and
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24 who elects to continue said health insurance coverage shall pay to
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Req. No. 9487 Page 2
 1 the technology center school district the premium rate for the
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2 health insurance minus an amount equal to the premium rate of the
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3 Medicare supplement or the amount determined pursuant to subsection
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4 (4) of Section 1316.3 of Title 74 of the Oklahoma Statutes,
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5 whichever is less, which shall be paid by the Teachers' Retirement
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6 System of Oklahoma to the technology center school district. The
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7 technology center school district shall remit to the health
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8 insurance coverage provider the total premium due less any
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9 uncollected amounts payable from retired technology center school
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10 district employees or their qualified survivors.
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11 B. A technology center school district that participates in
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12 health insurance coverage other than the health insurance plan
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13 offered by the State and Education Employees Group Insurance
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14 Oklahoma Employees Insurance and Benefits Act shall not be required
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15 to pay any portion of the premium for the employees or the
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16 dependents of the employees of said school district. Unless a
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17 school district negotiates an agreement with its employees regarding
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18 health insurance pursuant to Sections 509.1 through 509.9 of this
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19 title, and to the extent that the agreement provides for the members
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20 of the recognized bargaining unit, a technology center school
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21 district that participates in health insurance coverage other than
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22 the health insurance plan offered by the State and Education
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23 Employees Group Insurance Oklahoma Employees Insurance and Benefits
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24 Act is prohibited from acquiring additional or supplemental health
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Req. No. 9487 Page 3
 1 or dental insurance for any board member, superintendent or any
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2 other employee which is not available to all employees of said
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3 district, and said technology center school district shall not pay a
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4 greater portion of the employee or dependent premium for any health
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5 or dental insurance plan or plans provided by said technology center
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6 school district on behalf of any board member, superintendent or
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7 employee than that portion paid on behalf of all participating
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8 employees of said district.
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9 C. If a technology center school district obtains health
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10 insurance coverage from a source other than through the State and
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11 Education Employees Group Insurance Oklahoma Employees Insurance and
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12 Benefits Act, the employees of the technology center school district
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13 who would be eligible to participate in the health and dental plans
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14 may require the board of education of the technology center school
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15 district to call an election to allow said employees to vote as to
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16 whether the technology center school district shall participate in
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17 the health and dental insurance plans offered through the State and
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18 Education Employees Group Insurance Oklahoma Employees Insurance and
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19 Benefits Act. Upon the filing with the board of education of a
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20 petition calling for such an election which is signed by no less
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21 than thirty percent (30%) of the eligible employees of the
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22 technology center school district, the board of education shall call
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23 an election for the purpose of determining whether the technology
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24 center school district shall participate in the health and dental
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Req. No. 9487 Page 4
 1 insurance plans offered through the State and Education Employees
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2 Group Insurance Oklahoma Employees Insurance and Benefits Act. The
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3 election shall be held within thirty (30) days of the filing of the
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4 petition. If a majority of those eligible employees voting at the
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5 election vote to participate in the health and dental insurance
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6 plans offered through the State and Education Employees Group
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7 Insurance Oklahoma Employees Insurance and Benefits Act, the board
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8 of education of the technology center school district shall apply
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9 for such participation within thirty (30) days of the election.
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10 D. If a technology center school district does not have any
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11 health insurance coverage of the type required by this section, that
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12 technology center school district shall immediately be enrolled in
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13 the health and dental insurance plans offered through the State and
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14 Education Employees Group Insurance Oklahoma Employees Insurance and
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15 Benefits Act.
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16 E. A carrier providing health insurance coverage for employees
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17 of a technology center school district health insurance group which
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18 replaces a previous carrier for such technology center school
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19 district employees shall provide coverage for each retired employee
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20 who is receiving a benefit or terminates employment with a vested
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21 benefit from the Teachers' Retirement System of Oklahoma and who is
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22 enrolled in the health insurance group by the previous carrier at
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23 the time the previous carrier providing health insurance coverage is
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24 replaced. Notwithstanding any provision in this section to the
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 1 contrary, any person who retires pursuant to the provisions of the
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2 Teachers' Retirement System of Oklahoma prior to May 1, 1993, or
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3 terminates service with a vested benefit, pursuant to the provisions
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4 of the Teachers' Retirement System of Oklahoma prior to May 1, 1993,
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5 may continue to participate in the health and dental plans
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6 authorized by the provisions of the State and Education Employees
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7 Group Insurance Oklahoma Employees Insurance and Benefits Act.
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8 F. In the event a technology center school district ceases to
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9 exist, the assets and duties of said technology center school
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10 district are transferred to one or more other technology center
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11 school districts, said other technology center school district or
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12 districts do not agree to employ all of the former employees of the
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13 technology center school district that is ceasing to exist, and said
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14 former employees who are not being reemployed have rights under
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15 federal or state law to continue group insurance coverage, the
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16 annexing technology center school district having the largest
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17 general fund revenue for the most recent preceding fiscal year for
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18 which data is available shall provide group insurance coverage to
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19 said former employees not being retained during the period as
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20 required by law.
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21 SECTION 2. AMENDATORY 70 O.S. 2021, Section 26-104, is
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22 amended to read as follows:
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23 A. Each fiscal year, the Legislature shall appropriate adequate
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24 funding to the State Board of Education and the State Board of
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Req. No. 9487 Page 6
 1 Career and Technology Education for the purpose of providing a
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2 flexible benefit allowance to school district employees pursuant to
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3 this act. Unless the Legislature appropriates adequate funding
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4 specifically for the purpose of providing a flexible benefit
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5 allowance to school district employees, the Oklahoma State Board of
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6 Education shall allocate from the funds appropriated to the Oklahoma
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7 State Board of Education for the support of public school activities
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8 an amount to fully fund the flexible benefit allowance, which shall
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9 occur first prior to allocating the funds for any other purpose.
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10 The amount appropriated for funding and disbursed to school
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11 districts shall be calculated by multiplying the number of eligible
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12 school district employees employed by school districts which are
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13 participating in the health insurance plan offered by the State and
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14 Education Employees Group Insurance Oklahoma Employees Insurance and
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15 Benefits Board or are self-insured as counted in February of each
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16 year by the amount of the flexible benefit allowance credited to the
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17 eligible school employees as established in Section 26-105 of this
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18 title. Each Board shall disburse the total amount appropriated for
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19 funding the flexible benefit allowance to school districts during
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20 the fiscal year. From the total amount appropriated, each Board
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21 shall disburse the appropriate amounts, based on the number of
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22 eligible school district employees employed by that school district,
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23 to each school district.
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 1 B. Every school district shall establish or make available to
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2 school district employees a cafeteria plan pursuant to 26 U.S.C.
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3 Section 125 of the United States Code. The plan shall offer, as a
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4 benefit, major medical health care plan coverage.
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5 C. The flexible benefit allowance amount established pursuant
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6 to Section 26-105 of this title shall be credited to each eligible
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7 school district employee. School district employees shall elect
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8 whether to use the flexible benefit allowance to pay for coverage in
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9 the health insurance plan offered by the State and Education
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10 Employees Group Insurance Oklahoma Employees Insurance and Benefits
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11 Board or the self-insured plan offered by the school district and
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12 may receive the excess flexible benefit allowance as taxable
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13 compensation as provided in Section 26-105 of this title.
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14 D. The administrator of the cafeteria plan shall maintain a
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15 separate account for each participating school district employee.
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16 School districts shall forward the school district employee flexible
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17 benefit allowance amounts to the administrator for elected purchases
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18 of cafeteria plan benefits.
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19 E. Expenses included in an employee's salary adjustment
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20 agreement pursuant to the cafeteria plan shall be limited to
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21 expenses for:
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22 1. Premiums for any health insurance, health maintenance
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23 organization, life insurance, long term disability insurance, dental
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Req. No. 9487 Page 8
 1 insurance or high deductible health benefit plan offered to
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2 employees and their dependents; and
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3 2. All other eligible benefit programs offered under 26 U.S.C.
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4 Section 125 of the United States Code.
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5 F. The flexible benefit allowance amount established in Section
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6 26-105 of this title shall not be included as income in computation
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7 of state retirement contributions and benefits or as part of the
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8 Minimum Salary Schedule for teachers established in Section 18-
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9 114.12 of this title. School districts shall not consider the
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10 flexible benefit allowance amount as income for eligible support
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11 employees and thereby shall not reduce the salary of an eligible
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12 support employee.
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13 SECTION 3. AMENDATORY 70 O.S. 2021, Section 26-105, is
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14 amended to read as follows:
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15 A. The flexible benefit allowance shall be used by a school
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16 district employee who is participating in the cafeteria plan to
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17 purchase major medical health care plan coverage offered by the
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18 school district through a cafeteria plan. Any excess flexible
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19 benefit allowance over the cost of the major medical coverage
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20 purchased by the employee who is participating in the cafeteria plan
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21 may be used to purchase any of the additional benefits offered by
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22 the school district or may be taken as taxable compensation as
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23 provided in subsection C of this section. Certified personnel who
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24 choose not to participate in the school-district-sponsored cafeteria
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 1 plan shall receive Sixty-nine Dollars and seventy-one cents ($69.71)
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2 per month as taxable compensation in lieu of the flexible benefit
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3 allowance amount provided in subsection B of this section. Support
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4 personnel who choose not to participate in the school-district-
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5 sponsored cafeteria plan shall receive One Hundred Eighty-nine
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6 Dollars and sixty-nine cents ($189.69) per month as taxable
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7 compensation in lieu of the flexible benefit allowance amount
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8 provided in subsection B of this section.
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9 B. Each eligible school district employee shall be credited
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10 annually with a specified amount as a flexible benefit allowance
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11 which shall be available for the purchase of benefits. The amount
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12 of the flexible benefit allowance credited to each eligible school
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13 district employee shall be communicated to the employee prior to