Bill Summary – FastDemocracy

Stricken language would be deleted from and underlined language would be added to present law.
                                            Act 111 of the Fiscal Session
 State of Arkansas
 93rd General Assembly                         A Bill
 Fiscal Session, 2022                                                                 HOUSE BILL 1097
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 By: Representatives Evans, Shepherd, Wardlaw, Eubanks, Cozart, Beaty Jr., Beck, M. Berry, S. Berry,
 Bragg, Brown, C. Cooper, Crawford, Dalby, M. Davis, Dotson, Ennett, K. Ferguson, C. Fite, D. Garner,
 Godfrey, Hawks, M. Hodges, Hollowell, Hudson, Jett, Love, Maddox, McCullough, S. Meeks, Nicks,
 Perry, Scott, S. Smith, Speaks, Vaught, Warren, D. Whitaker, Wing, Wooten
 By: Senators Irvin, Hickey, Rice, Beckham, L. Chesterfield, J. Dismang, Elliott, J. English, Flippo,
 Gilmore, Hill, K. Ingram, B. Johnson, G. Leding, B. Sample, D. Sullivan
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                                    For An Act To Be Entitled
                 AN ACT CONCERNING THE PUBLIC SCHOOL EMPLOYEES' HEALTH
                 INSURANCE PROGRAM; TO AMEND THE MANNER IN WHICH THE
                 PUBLIC SCHOOL EMPLOYEES' HEALTH INSURANCE PROGRAM IS
                 FUNDED; TO AMEND THE FOUNDATION FUNDING AMOUNT FOR
                 THE 2022-2023 SCHOOL YEAR AND EACH YEAR THEREAFTER;
                 TO REPEAL PROVISIONS CONCERNING THE GENERAL
                 FACILITIES AND SUPPLEMENTAL MILLAGE APPROPRIATIONS;
                 TO DECLARE AN EMERGENCY; AND FOR OTHER PURPOSES.
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                                                 Subtitle
                        TO AMEND THE PUBLIC SCHOOL EMPLOYEES'
                        HEALTH INSURANCE PROGRAM FUNDING; 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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         SECTION 1.      DO NOT CODIFY.        Legislative findings.
         The General Assembly finds that:
                 (1)    It is vital that the State and Public School Life and Health
 Insurance Program remain solvent;
                 (2)    It is the responsibility of the House Committee on Education
 and the Senate Committee on Education, through the biennial adequacy review
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 process required under  10-3-2102, to determine the health insurance
 contribution rate to be paid by each public school district each month for
 each eligible employee electing to participate in the public school
 employees health insurance program; and
                  (3)   In order to determine the contribution rate, the House
 Committee on Education and the Senate Committee on Education shall review the
 amount of funding provided through the matrix and state appropriation for
 public school employee health insurance.
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         SECTION 2.        Arkansas Code  6-17-1117(a), concerning the funding of the
 public school employees' health insurance program by a public school
 district, is amended to read as follows:
         (a)(1)     Beginning January 1, 2014 2023, a school district shall pay the
 health insurance contribution rate of one hundred fifty dollars ($150) per
 established by the House Committee on Education and the Senate Committee on
 Education through the biennial adequacy review process required by  10-3-
 2102 each month for each eligible employee electing to participate in the
 public school employees' health insurance program.
                  (2)   The minimum contribution rate under subdivision (a)(1) of
 this section shall increase annually by the same percentage that the General
 Assembly increases the per-student foundation funding amount under  6-20-
 2305.
                  (3)(A)     Unless exempt under subdivision (a)(5) of this section,
 the local contribution rate of a school district shall also increase by the
 same percentage that a school district increases the base salary for licensed
 personnel with a minimum of a bachelor's degree under the licensed salary
 schedule adopted by the school district.
                           (B)   As used in this section, local contribution rate
 means the minimum rate required under subdivision (a)(1) of this section in
 addition to the contribution amount a school district provides for health
 insurance above that minimum contribution rate.
                  (4)   A change to the local contribution rate under subdivision
 (a)(3) of this section is effective for the plan year after the change to the
 licensed salary schedule is adopted by a school district.
                  (5)   A school district is not required to increase the local
 contribution rate as directed under subdivision (a)(3) of this section if the
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 school district:
                    (A)   Is required to raise the base salary of licensed
 personnel with a minimum of a bachelor's degree due to an increase in the
 minimum teacher compensation schedule under  6-17-2403;
                    (B)   Has a participation rate of seventy-five percent (75%)
 or more of all eligible personnel participating in the public school
 employees' health insurance program; or
                    (C)   Has a local contribution rate of one hundred twenty-
 five percent (125%) or more of the minimum contribution rate required under
 this subsection.
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      SECTION 3.    Arkansas Code  6-17-1117(b)(1), concerning the funding of
 the public school employees' health insurance program by the Division of
 Elementary and Secondary Education, is amended to read as follows:
      (b)(1)(A)     The Division of Elementary and Secondary Education shall pay
 the Employee Benefits Division a minimum of sixty-one dollars ($61.00) per
 month the amount established by the House Committee on Education and the
 Senate Committee on Education through the biennial adequacy review process
 required by  10-3-2102, factored according to the medical component of the
 Consumer Price Index for All Urban Consumers, for each eligible employee
 electing to participate in the public school employees' health insurance
 program administered by the State Board of Finance.
                    (B)   The Division of Elementary and Secondary Education
 shall make the total contributions under subdivision (b)(1)(A) of this
 section by transferring fifty-five million dollars ($55,000,000) to the
 Employee Benefits Division in twelve (12) equal monthly installments.
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      SECTION 4.    Arkansas Code  6-17-1117(b)(3)(C), concerning the payment
 of excess funding towards the public school employees' health insurance
 program by the Division of Elementary and Secondary Education, is amended to
 read as follows:
                    (C)   If funding and appropriation are provided and exceed
 the amount needed to make the minimum contribution under subdivision
 (b)(1)(A) of this section, the Division of Elementary and Secondary Education
 shall pay a proportional share of the excess on behalf of each participant.
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      SECTION 5.    Arkansas Code  6-20-2305(a)(2)(B), concerning the
 foundation funding amount for the 2022-2023 school year and each year
 thereafter, is amended to read as follows:
                   (B)   For the 2022-2023 school year and each school year
 thereafter, the foundation funding amount is equal to seven thousand three
 hundred forty-nine dollars ($7,349) seven thousand four hundred thirteen
 dollars ($7,413) multiplied by the school district's average daily membership
 for the previous school year.
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      SECTION 6.    Arkansas Code  6-20-2503(e) and (f), concerning the
 general facilities and supplemental millage appropriations as they relate to
 bonded debt assistance, are repealed.
      (e)   The funded general facilities funding appropriation shall be
 distributed to the Employee Benefits Division for the exclusive benefit of
 public school employees participating in the State and Public School Life and
 Health Insurance Program.
      (f)   The funded supplemental millage appropriation shall be distributed
 to the Employee Benefits Division for the exclusive benefit of public school
 employees participating in the State and Public School Life and Health
 Insurance 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 Program is inadequate to provide sustainable
 affordable health benefits for public school employees and state employees;
 that an urgent need exists to address the state's funding and administration
 of benefits for public school employees and state employees in order for the
 program to remain viable and to avoid severe financial hardship to plan
 participants; and that this act is immediately necessary to provide
 affordable health benefit options in a timely manner to the state's public
 school employees participating in the program and state employees
 participating in the program.    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,
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 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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                               APPROVED: 3/1/22
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Statutes affected: 
HB 1097: 6-17-1117(a), 6-17-1117(b), 6-20-2305(a), 6-20-2503(e)
Act 111: 6-17-1117(a), 6-17-1117(b), 6-20-2305(a), 6-20-2503(e)