Bill Summary – FastDemocracy

67th Legislature                                                                                                   SB 110.1
                                                   SENATE BILL NO. 110
                                            INTRODUCED BY R. OSMUNDSON
                        BY REQUEST OF THE OFFICE OF BUDGET AND PROGRAM PLANNING
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   A BILL FOR AN ACT ENTITLED: “AN ACT AUTHORIZING THE GOVERNOR AND THE COMMISSIONER OF
   HIGHER EDUCATION TO SUSPEND THE EMPLOYER CONTRIBUTION FOR STATE EMPLOYEE GROUP
   BENEFITS; AMENDING SECTIONS 2-18-703 AND 7-4-2502, MCA; PROVIDING FOR CONTINGENT
   VOIDNESS; AND PROVIDING AN EFFECTIVE DATE AND A TERMINATION DATE.”
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   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
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              Section 1. Section 2-18-703, MCA, is amended to read:
              "2-18-703.   Contributions. (1) Each Except as provided in subsection (2)(f), each agency, as defined
   in 2-18-601, and the state compensation insurance fund shall contribute the amount specified in this section
   toward the group benefits cost.
              (2)   (a) Except as provided in subsection (2)(b), for employees defined in 2-18-701 and for members
   of the legislature, the employer contribution for group benefits is $1,054 a month.
              (b)   For employees defined in 2-18-701 and for members of the legislature, beginning January 2020
   and for each succeeding month, the cost of group benefits, including both the employer and employee
   contributions for group benefits and health flexible spending accounts, may not exceed the monthly amount for
   self-only coverage and coverage other than self-only that will trigger the excise tax under 26 U.S.C. 4980I,
   including any cost-of-living adjustments under 26 U.S.C. 4980I. This section limits contributions for group
   benefits only to the extent needed to avoid triggering the excise tax under 26 U.S.C. 4980I.
              (c)   Except as provided in subsection (2)(d), for employees of the Montana university system, the
   employer contribution for group benefits is $1,054 a month.
              (d)   For employees of the Montana university system, beginning the earlier of July 2020 or the first
   month in 2020 in which the excise tax under 26 U.S.C. 4980I applies, and for each succeeding month, the cost
   of group benefits, including both the employer and employee contributions for group benefits and health flexible
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67th Legislature                                                                                                         SB 110.1
   spending accounts, may not exceed the monthly amount for self-only coverage and coverage other than self-
   only that will trigger the excise tax under 26 U.S.C. 4980I, including any cost-of-living adjustments under 26
   U.S.C. 4980I. This section limits contributions for group benefits only to the extent needed to avoid triggering
   the excise tax under 26 U.S.C. 4980I.
              (e)   (i) If a state employee is terminated to achieve a reduction in force, the continuation of
   contributions for group benefits beyond the termination date is subject to negotiation under 39-31-305 and to
   the protections of 2-18-1205. Permanent part-time, seasonal part-time, and temporary part-time employees
   who are regularly scheduled to work less than 20 hours a week are not eligible for the group benefit
   contribution. An employee who elects not to be covered by a state-sponsored group benefit plan may not
   receive the state contribution. A portion of the employer contribution for group benefits may be applied to an
   employee's costs for participation in Part B of medicare under Title XVIII of the Social Security Act, as
   amended, if the state group benefit plan is the secondary payer and medicare the primary payer.
              (ii) Payments required under this subsection (2)(e) may be suspended if a state agency or unit of the
   Montana university system is directed to suspend the employer contribution for the state employee group
   benefit plan or university system group benefit plan pursuant to subsection (2)(f).
              (f) The approving authority, as defined in 17-7-102, shall direct a state agency or unit of the Montana
   university system to suspend the employer contribution for the state employee group benefit plan or university
   system group benefit plan described in subsections (1) and (2)(a) through (2)(d) for a period of up to 2 months.
              (3)   For employees of elementary and high school districts, the employer's contributions may exceed
   but may not be less than $10 a month.
              (4)   (a) For employees of political subdivisions, as defined in 2-9-101, except school districts, the
   employer's contributions may exceed but may not be less than $10 a month.
              (b)   Subject to the public hearing requirement provided in 2-9-212(2)(b), the amount in excess of the
   base contribution of a local government's property tax levy for contributions for group benefits as determined in
   subsection (4)(c) is not subject to the mill levy calculation limitation provided for in 15-10-420.
              (c)   (i) Subject to subsections (4)(c)(ii) and (4)(c)(iii), the base contribution is determined by
   multiplying the average annual contribution for each employee on July 1, 1999, times the number of employees
   for whom the employer makes contributions for group benefits under 2-9-212 on July 1 of each fiscal year.
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67th Legislature                                                                                                      SB 110.1
              (ii) If a political subdivision did not make contributions for group benefits on or before July 1, 1999, and
   subsequently does so, the base contribution is determined by multiplying the average annual contribution for
   each employee in the first year the political subdivision provides contributions for group benefits times the
   number of employees for whom the employer makes contributions for group benefits under 2-9-212 on July 1 of
   each fiscal year.
              (iii) If a political subdivision has made contributions for group benefits but has not previously levied for
   contributions in excess of the base contribution, the political subdivision's base is determined by multiplying the
   average annual contribution for each employee at the beginning of the fiscal year immediately preceding the
   year in which the levy will first be levied times the number of employees for whom the employer made
   contributions for group benefits under 2-9-212 in that fiscal year.
              (5)   Unused employer contributions for any state employee must be transferred to an account
   established for this purpose by the department of administration and upon transfer may be used to offset losses
   occurring to the group of which the employee is eligible to be a member.
              (6)   Unused employer contributions for any government employee may be transferred to an account
   established for this purpose by a self-insured government and upon transfer may be used to offset losses
   occurring to the group of which the employee is eligible to be a member or to increase the reserves of the
   group.
              (7)   The laws prohibiting discrimination on the basis of marital status in Title 49 do not prohibit bona
   fide group insurance plans from providing greater or additional contributions for insurance benefits to
   employees with dependents than to employees without dependents or with fewer dependents."
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              Section 2. Section 7-4-2502, MCA, is amended to read:
              "7-4-2502.    Payment of salaries of county officials and assistants -- state share for county
   attorney -- statutory appropriation. (1) The salaries of the county officers and their assistants may be paid
   monthly, twice monthly, or every 2 weeks out of the general fund of the county and upon the order of the board
   of county commissioners.
              (2)   The funding for the salary and health insurance benefits for the county attorney is a shared
   responsibility of the state and the county. The state's share is payable as provided in subsection (3).
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67th Legislature                                                                                                      SB 110.1
              (3)     (a) For each fiscal year, the department of justice shall pay to each county and consolidated
   government the amount calculated under subsection (3)(b). Payments must be made quarterly.
              (b)     (i) For each county and consolidated government with a full-time county attorney, the amount paid
   each fiscal year must be equal to 50% of 85% of a district court judge's salary most recently set under 3-5-211
   plus an amount equal to 50% of the employer contribution for group benefits under 2-18-703(2) for an
   employee as defined in 2-18-701.
              (ii) For each county and consolidated government with a part-time county attorney, the total amount
   paid each fiscal year must be equal to the amount calculated under subsection (3)(b)(i) prorated according to
   the position's regular work hours.
              (iii)   The payments required under subsection (3)(b)(i) are not affected if the governor directs a state
   agency to not pay the employer contribution for employee group benefits pursuant to 2-18-703(2)(f).
              (c)     For the purpose of this subsection (3), the following definitions apply:
              (i)     "Full-time county attorney" means that as of July 1 immediately preceding the regular legislative
   session, the county attorney position has been established as a full-time position pursuant to 7-4-2706.
              (ii) "Part-time county attorney" means that as of July 1 immediately preceding the regular legislative
   session, the county attorney position has been established as a part-time position pursuant to 7-4-2706.
              (iii) "Salary" means wage plus the employer contributions required for retirement, workers'
   compensation insurance, and the Federal Insurance Contributions Act as determined for a district court judge.
              (4)     The amount to be paid to each county pursuant to subsection (3) is statutorily appropriated, as
   provided in 17-7-502, from the general fund to the department of justice.
              (5)     The board may, under limitations and restrictions prescribed by law, fix the compensation of all
   county officers not otherwise fixed by law and provide for the payment of the compensation and may, for all or
   the remainder of each fiscal year, in conjunction with setting salaries for other officers as provided in 7-4-2504,
   set their salaries at the prior fiscal year level."
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              NEW SECTION. Section 3.           Contingent voidness. If House Bill No. 2, including general fund budget
   reductions related to the suspension of employee group benefits payments for up to 2 months, is not passed
   and approved, then [this act] is void.
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67th Legislature                                                                                              SB 110.1
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              NEW SECTION. Section 4.   Effective date. [This act] is effective July 1, 2021.
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              NEW SECTION. Section 5.   Termination. [This act] terminates June 30, 2022.
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Statutes affected: 
SB0110_1.pdf: 2-18-703, 7-4-2502
SB0110_X.pdf: 2-18-703, 7-4-2502
Enrolled: 2-18-703, 7-4-2502
Introduced: 2-18-703, 7-4-2502