MISSISSIPPI LEGISLATURE

2006 Regular Session

To: Insurance; Appropriations

By: Representative Mayo

House Bill 165

AN ACT TO AMEND SECTION 25-17-3, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE CAFETERIA PLANS OF STATE AGENCIES SHALL INCLUDE REIMBURSEMENT FOR AUTOMOBILE INSURANCE PREMIUMS, IF ALLOWED UNDER FEDERAL INTERNAL REVENUE SERVICE REGULATIONS; AND FOR RELATED PURPOSES.

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

     SECTION 1.  Section 25-17-3, Mississippi Code of 1972, is amended as follows:

     25-17-3.  Notwithstanding any other benefit plan offered to any eligible employee of a state agency or local governmental entity, all state agencies shall, and any local governmental entity may contract for and adopt a benefit plan which meets the requirements of a cafeteria plan as defined in Section 125 et seq. of the Internal Revenue Code of 1986, and regulations thereunder, for the benefit of eligible employees and their dependents.  The cafeteria plans of state agencies shall include reimbursement for automobile insurance premiums, if allowed under federal Internal Revenue Service regulations.  The maximum benefit available under a health flexible spending account shall be Five Thousand Dollars ($5,000.00) per participating employee per plan year, unless federal Internal Revenue Service regulations allow that the available benefit at any point in time may be limited by the premium paid as of that point in time.  * * * Any state agency or local governmental entity may contract for insurance to cover its potential for loss under a health flexible spending account.

     SECTION 2.  This act shall take effect and be in force from and after July 1, 2006.