Bill Summary – FastDemocracy

Stricken language would be deleted from and underlined language would be added to present law.
 State of Arkansas                    As Engrossed:       H3/9/21
 93rd General Assembly                        A Bill
 Regular Session, 2021                                                             HOUSE BILL 1337
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 By: Representatives Lundstrum, Bentley, Brooks, Bryant, Christiansen, Cloud, C. Cooper, Furman,
 Hollowell, M. McElroy, Pilkington, Rye, Tollett
 By: Senators Rapert, Irvin
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                                   For An Act To Be Entitled
                 AN ACT TO AMEND THE LAW CONCERNING THE STATE AND
                 PUBLIC SCHOOL LIFE AND HEALTH INSURANCE PROGRAM; TO
                 ENSURE A SUSTAINABLE SYSTEM OF HEALTH BENEFITS FOR
                 STATE EMPLOYEES AND PUBLIC SCHOOL EMPLOYEES; TO
                 CLARIFY THE DUTIES AND RESPONSIBILITIES OF THE STATE
                 AND PUBLIC SCHOOL LIFE AND HEALTH INSURANCE BOARD; TO
                 INCREASE REPRESENTATION OF MEMBERS OF THE STATE AND
                 PUBLIC SCHOOL LIFE AND HEALTH INSURANCE PROGRAM ON
                 THE STATE AND PUBLIC SCHOOL LIFE AND HEALTH INSURANCE
                 BOARD; TO INCREASE OVERSIGHT OF THE STATE AND PUBLIC
                 SCHOOL LIFE AND HEALTH INSURANCE PROGRAM; TO INCREASE
                 THE STATE CONTRIBUTION TO THE STATE AND PUBLIC SCHOOL
                 LIFE AND HEALTH INSURANCE PROGRAM; TO DECLARE AN
                 EMERGENCY; AND FOR OTHER PURPOSES.
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                                               Subtitle
                         TO AMEND THE LAW CONCERNING THE STATE AND
                         PUBLIC SCHOOL LIFE AND HEALTH INSURANCE
                         PROGRAM; TO ENSURE A SUSTAINABLE SYSTEM
                         OF HEALTH BENEFITS FOR STATE EMPLOYEES
                         AND PUBLIC SCHOOL EMPLOYEES; AND TO
                         DECLARE AN EMERGENCY.
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 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
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     *ANS159*                                                                    03-09-2021 11:49:33 ANS159
     As Engrossed:    H3/9/21                                                     HB1337
      SECTION 1.    Arkansas Code  21-5-402(a)(1), concerning the membership
 of the State and Public School Life and Health Insurance Board, is amended to
 read as follows:
      (a)(1)     The State and Public School Life and Health Insurance Board is
 created, composed of the following fifteen (15) seventeen (17) voting
 members:
                    (A)     A Two (2) state employee employees who is are eligible
 to participate in the State and Public School Life and Health Insurance
 Program, appointed by the Governor;
                    (B)     Two (2) public school employees, at least one (1) of
 whom is employed by a rural school district, appointed by the Governor;
                    (C)     The Insurance Commissioner or his or her designee;
                    (D)     The Commissioner of Elementary and Secondary Education
 or his or her designee;
                    (E)     The Secretary of the Department of Transformation and
 Shared Services or his or her designee;
                    (F)     Three (3) members who are engaged in employee benefits
 management or risk management, at least one (1) of whom is a licensed
 healthcare provider, appointed by the Governor;
                    (G)     Two (2) members, one (1) of whom is a retired public
 school employee and one (1) of whom is a who are retired state employee
 employees, appointed by the Governor;
                    (H)     One (1) retired public school employee, appointed by
 the Governor;
                    (I)     Two (2) members, at least one (1) of whom is a current
 public school employee who is employed by a school district as an
 administrator and one (1) of whom may be a current or retired public school
 employee who was employed by a school district as an administrator, appointed
 by the Governor;
                    (I)(J)     The Director of the Arkansas State Board of
 Pharmacy or his or her state employee pharmacist designee;
                    (J)     The Director of Health Facility Services of the
 Department of Health or his or her designee; and
                    (K)     One (1) member who is a member of the Arkansas
 Medical, Dental, and Pharmaceutical Association, Inc. appointed by the
 Governor.
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     As Engrossed:   H3/9/21                                                    HB1337
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      SECTION 2.    Arkansas Code  21-5-403(b), concerning reporting by the
 Director of the Employee Benefits Division, is amended to read as follows:
      (b)   The Director of the Employee Benefits Division and the board shall
 report upon request quarterly to the House Committee on Insurance and
 Commerce and the Senate Committee on Insurance and Commerce regarding the
 State and Public School Life and Health Insurance Program.
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      SECTION 3.    Arkansas Code  21-5-404(1), concerning powers, functions,
 and duties of the State and Public School Life and Health Insurance Board, is
 amended to add an additional subdivision to read as follows:
                    (D)    Beginning in the 2022 plan year, any new or
 significantly modified cost-containment measures, premium increases greater
 than five percent (5%) over the previous plan year, proposals to limit or
 eliminate plan benefits or eligibility, or other significant changes to the
 plan design under the program shall be presented to the House Committee on
 Insurance and Commerce and the Senate Committee on Insurance and Commerce in
 a public meeting for review and approval before final adoption of the changes
 to the plan;
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      SECTION 4.    Arkansas Code  21-5-404(12)(A)(i), concerning the
 membership of the Benefits Subcommittee of the State and Public School Life
 and Health Insurance Board, is amended to add an additional subdivision to
 read as follows:
                                 (e)   Two (2) retired state employees.
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      SECTION 5.    Arkansas Code  21-5-404(12)(B)(i)(d)(1), concerning the
 membership of the Drug Utilization and Evaluation Subcommittee of the State
 and Public School Life and Health Insurance Board, is amended to read as
 follows:
                                 (d)(1)    One (1) state employee, one (1) retired
 state employee, and two (2) public school employees, appointed by the board.
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      SECTION 6.    Arkansas Code  21-5-414(b), concerning state contributions
 to the State and Public School Life and Health Insurance Program and partial
 state contribution of employee premiums, is amended to read as follows:
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     As Engrossed:        H3/9/21                                                       HB1337
          (b)   Participating entities shall make a monthly contribution equal to
 the number of budgeted state employee positions multiplied by the monthly
 contribution authorized by the Chief Fiscal Officer of the State, not to
 exceed four hundred fifty dollars ($450) five hundred dollars ($500) monthly
 for each state employee budgeted position into a fund designated for state
 employee health benefits to partially defray the cost of life and health
 benefits for state employees and retirees participating in the program.
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          SECTION 7.    EMERGENCY CLAUSE.       It is found and determined by the
 General Assembly of the State of Arkansas that the State and Public School
 Life and Health Insurance Board requires an expansion of representation of
 members of the State and Public School Life and Health Insurance Program, and
 the State and Public School Life and Health Insurance Program requires
 additional oversight to ensure affordable health insurance options are
 available to state and public school employees; that an urgent need exists to
 expand representation on the State and Public School Life and Health
 Insurance Board and start implementing the necessary oversight of the State
 and Public School Life and Health Insurance Program to avoid increased and
 unnecessary costs; and that this act is immediately necessary to improve the
 financial stability and viability of the State and Public School Life and
 Health Insurance Program through increased oversight and membership
 representation on the State and Public School Life and Health Insurance
 Board.     Therefore, an emergency is declared to exist, and this act being
 immediately necessary for the preservation of the public peace, health, and
 safety shall become effective on:
                (1)    The date of its approval by the Governor;
                (2)    If the bill is neither approved nor vetoed by the Governor,
 the expiration of the period of time during which the Governor may veto the
 bill; or
                (3)    If the bill is vetoed by the Governor and the veto is
 overridden, the date the last house overrides the veto.
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                                      /s/Lundstrum
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                                                4                 03-09-2021 11:49:33 ANS159
Statutes affected: 
Old version HB1337 Original - 1-28-2021 01:46 PM: 21-5-402(a), 21-5-403(b), 21-5-404(1), 21-5-404(12), 21-5-414(b)
Old version HB1337 V2 - 3-9-2021 11:51 AM: 21-5-402(a), 21-5-403(b), 21-5-404(1), 21-5-404(12), 21-5-414(b)
HB 1337: 21-5-402(a), 21-5-403(b), 21-5-404(1), 21-5-404(12), 21-5-414(b)