House Bill No. 3126 proposes an amendment to the Insurance Code by adding Section 1579.1551, which establishes a program for small school districts to participate in the uniform group coverage program for active school employees. This section specifically applies to school districts that had previously discontinued their participation in the program as of September 1, 2022, and have 500 or fewer employees at the time of re-election. The bill allows these districts to rejoin the program before the fifth anniversary of their discontinuation, provided they notify the trustee by December 31, 2025, and meet any additional requirements set by the trustee.

Furthermore, the bill stipulates that for the plan year starting September 1, 2026, a risk stabilization fee will be imposed on the premiums of participating districts. Once a district elects to participate under this new section, it cannot discontinue participation until September 1, 2031. The trustee is also granted the authority to impose further requirements and conditions for participation, and the section itself will expire on September 1, 2031. The act is set to take effect on September 1, 2025.

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