House Bill 123

AN ACT TO AMEND SECTION 37-151-95, MISSISSIPPI CODE OF 1972, TO AUTHORIZE LOCAL SCHOOL BOARDS TO OFFER SUPPLEMENTAL COMPENSATION TO ANY MEDICARE-ELIGIBLE RETIRED BUS DRIVER IF HE OR SHE CHOOSES TO SECURE MEDICARE COVERAGE IN LIEU OF PARTICIPATING IN STATE AND SCHOOL EMPLOYEES' LIFE AND HEALTH INSURANCE PLAN; AND FOR RELATED PURPOSES.

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

SECTION 1. Section 37-151-95, Mississippi Code of 1972, is amended as follows:

37-151-95. (1) Adequate education program funds shall include one hundred percent (100%) of the cost of the State and School Employees' Life and 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.

(2) 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. Where the use of federal funds is allowable but not available, it is the intent of the Legislature that school districts contribute the cost of participation for such employees from local funds, except that parent fees for child nutrition programs shall not be increased to cover such cost.

(3) The State Department of Education, in accordance with rules and regulations established by the State Board of Education, may withhold a school district's adequate education 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 adequate education program funds for those districts that fail to remit premiums, interest penalties and/or late charges under the State and School Employees' Life and 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.

(4) (a) The local school board may offer any retired nonstudent school bus driver supplemental compensation if he or she chooses to secure Medicare coverage in lieu of participating in the State and School Employees' Life and Health Insurance Plan, as the case may be, limited to an amount which shall not exceed the school district's cost for the bus driver to participate in the State and School Employees' Life and Health Insurance Plan. The provisions of this subsection shall not apply to coverage by Medicaid. Nothing in this subsection shall be construed to require a school bus driver to choose Medicare coverage in lieu of participating in the State and School Employees' Life and Health Insurance Plan, and a school district shall not withhold participation in the State and School Employees' Life and Health Insurance Plan by a Medicare-eligible bus driver who is otherwise eligible for the State and School Employees' Life and Health Insurance Plan.

(b) Before the supplemental compensation may be provided, as specified under this subsection, the retired bus driver shall provide verifiable proof that he or she has secured coverage under Medicare. Receipt of purchase for the Medicare coverage shall be provided on an annual basis to the school district.

SECTION 2. This act shall take effect and be in force from and after July 1, 2022.