MISSISSIPPI LEGISLATURE

1997 Regular Session

To: Education; Appropriations

By: Senator(s) Bean

AN ACT TO AMEND SECTIONS 37-19-34 AND 25-15-261, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT STATE FUNDED INSURANCE ALLOTMENTS SHALL BE APPROPRIATED TO PROVIDE THE COST OF HEALTH INSURANCE BENEFITS FOR CHILD NUTRITION PROGRAM AND FEDERAL TITLE I PERSONNEL WHERE FEDERAL FUNDING THEREFOR IS NOT AVAILABLE; AND FOR RELATED PURPOSES. 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Section 37-19-34, Mississippi Code of 1972, is amended as follows:

37-19-34. The State Board of Education shall allot to each school district such funds appropriated to pay one hundred percent (100%) of the cost of the Public School Employees Health Insurance Plan created under Article 7, Chapter 15, Title 25, Mississippi Code of 1972, for all district employees who work no less than twenty (20) hours during each week and regular nonstudent school bus drivers employed by the district.

Where the use of federal funding is allowable to defray, in full or in part, the cost of participation in the insurance plan by district employees who work no less than twenty (20) hours during each week and regular nonstudent school bus drivers, whose salaries are paid, in full or in part, by federal funds, the allowance under this section shall be reduced to the extent of the federal funding; except that where state funds are appropriated to support in full or in part participating child nutrition program and federal Title I personnel, the allowance under this section shall be reduced only to the extent that cost is not provided. Where the use of federal funds is allowable but not available, it is the intent of the Legislature that state funds shall be allotted for the cost of participation for such employees * * *.

The State Department of Education, in accordance with rules and regulations established by the State Board of Education, may withhold a school district's minimum program funds for failure of the district to timely report student, fiscal and personnel data necessary to meet state and/or federal requirements. The rules and regulations promulgated by the State Board of Education shall require the withholding of minimum program funds for those districts that fail to remit premiums, interest penalties and/or late charges under the Public School Employees Health Insurance Plan. Noncompliance with such rules and regulations shall result in a violation of compulsory accreditation standards as established by the State Board of Education and Commission on School Accreditation.

SECTION 2. Section 25-15-261, Mississippi Code of 1972, is amended as follows:

25-15-261. (1) Each eligible employee may participate in the program by signing up for the plan at the time of employment. Each eligible employee who declines coverage under the plan must sign a waiver of coverage. After acceptance in the plan, the employee may cease his or her participation by filing a specific disclaimer with the department. Forms for this purpose shall be prescribed and issued by the department. All eligible employees will be eligible to participate in this self-insured plan on the effective date of the plan or on the date on which they are employed by the school district, if later, provided they make any necessary contributions as set out hereunder. Prior to the initial enrollment cutoff date for the plan, all participating employees who are currently covered under the Public School Employees Health Insurance Plan or under a group health plan sponsored by any participating school district or community/junior college district shall be eligible for full benefits under this plan on the first day of his or her participation regardless of any preexisting health condition or injury. All other participating employees shall have coverage of preexisting illness within one (1) year after enrollment in the plan. Spouses of employees, unmarried dependent children from birth to age nineteen (19) years, unmarried dependent children who are full-time students up to age twenty-three (23) years, and physically or mentally handicapped children, regardless of age, are eligible under this plan as of the date the employee becomes eligible.

If both spouses are eligible employees who participate in the plan, the benefits shall apply individually to each spouse by virtue of his or her participation in the plan. If those spouses also have one or more eligible dependents participating in the plan, the cost of their dependents shall be calculated at

a special family plan rate. The cost for participation by the dependents shall be paid by the spouse who elects to carry such dependents under his or her coverage. The special family plan rate shall apply also if the public school, community/junior college district or public library employee's spouse is a covered eligible employee under the State Employees Health Insurance Plan.

(2) The state shall annually provide one hundred percent (100%) of the cost of the above insurance plan for all district employees who work no less than twenty (20) hours during each week and regular nonstudent school bus drivers. Where federal funding is allowable to defray, in full or in part, the cost of participation in the program by district employees who work no less than twenty (20) hours during each week and regular nonstudent school bus drivers, whose salaries are paid, in full or in part, by federal funds, the allowance under this section shall be reduced to the extent of such federal funding; except that where state funds are appropriated to support in full or in part participating child nutrition program and federal Title I personnel, the allowance under this section shall be reduced only to the extent that cost is not provided. Where the use of federal funds is allowable but not available, it is the intent of the Legislature that state funds shall be allotted for the cost of participation for such employees * * *.

Any local contribution to the cost of insurance paid by the school district during the fiscal year immediately preceding July 1, 1994, shall be converted into salary supplements or fringe benefits in that school district for certificated employees and teacher assistants. Any local contribution to the cost of insurance paid by the school district for noncertificated employees during the fiscal year immediately preceding July 1, 1994, shall be converted into salary supplements or fringe benefits in that school district.

(3) The state shall provide annually, by line item in the community/junior college appropriation bill, such funds to pay one hundred percent (100%) of the cost of the plan for all community/junior college district employees who work no less than twenty (20) hours during each week.

Where the use of federal funding is allowable to defray, in full or in part, the cost of participation in the insurance plan by community/junior college district employees who work no less than twenty (20) hours during each week, whose salaries are paid, in full or in part, by federal funds, the allowance under this section shall be reduced to the extent of the federal funding. Where the use of federal funds is allowable but not available, it is the intent of the Legislature that community/junior college districts contribute the cost of participation for such employees from local funds.

Any community/junior college district may contribute to the cost of coverage for any district employee from local community/junior college district funds, and any public school district may contribute to the cost of coverage for any district employee from nonminimum program funds. Any part of the cost of such coverage for participating employees of public school districts and public community/junior college districts that is not paid by the state or by the districts shall be paid by the participating employees, which shall be deducted from the salaries of the employees in a manner determined by the department.

Any funds appropriated for the cost of insurance by line item in the community/junior colleges appropriation bill which are not expended during the fiscal year for which such funds were appropriated shall be carried forward for the same purposes during the next succeeding fiscal year.

Any local contribution to the cost of insurance paid by a community/junior college district for eligible employees during the fiscal year immediately preceding July 1, 1994, shall be converted into salary supplements or fringe benefits distributed among all full-time employees of the district.

(4) The state shall not share in the cost of coverage for retired employees. Any retired employee electing to purchase retired health insurance will have the full cost of such insurance deducted monthly from his State of Mississippi retirement plan check or directly billed to him. If the department determines actuarially that the premium paid by the participating retirees adversely affects the overall cost of the plan to the state, then the department may impose a premium surcharge, not to exceed fifteen percent (15%), upon such participating retired employees who are under the age for Medicare eligibility.

SECTION 3. All new programs authorized in this act are subject to the availability of funds specifically appropriated therefor by the Legislature.

SECTION 4. This act shall take effect and be in force from and after July 1, 1997.