House Bill 931

AN ACT TO PROVIDE SCHOOL DISTRICTS WITH THE DISCRETIONARY AUTHORITY TO PROVIDE HEALTH INSURANCE AND TO PAY THE COST OF HEALTH INSURANCE PREMIUMS FOR SCHOOL BOARD MEMBERS THROUGH THE STATE AND SCHOOL EMPLOYEES HEALTH INSURANCE PLAN; TO PROVIDE THAT NO STATE FUNDS MAY BE USED TO MAKE SUCH PAYMENTS AND LOCAL FUNDS MAY BE USED TO PAY 100% OF THE COST OF THE HEALTH INSURANCE PREMIUMS; TO REQUIRE THE SCHOOL BOARD TO TAKE OFFICIAL ACTION THROUGH A MEETING TO DECIDE UPON THE OPTION OF PROVIDING HEALTH INSURANCE TO ITS BOARD MEMBERS; TO REQUIRE A REFERENDUM TO BE HELD ON THE MATTER IF THE BOARD CHOOSES TO PROVIDE HEALTH INSURANCE; TO AUTHORIZE SCHOOL BOARDS TO RESCIND ITS DISCRETIONARY AUTHORITY TO PROVIDE AND PAY THE HEALTH INSURANCE PREMIUMS OF ITS MEMBERS; TO PROVIDE FOR A REVERSE REFERENDUM ON THE MATTER NOT LESS THAN A YEAR AFTER THE AUTHORITY TO PROVIDE HEALTH INSURANCE TO SCHOOL BOARD MEMBERS IS APPROVED FOR THE PURPOSE OF REVOKING THE AUTHORITY TO CONTINUE PROVIDING HEALTH INSURANCE FOR SCHOOL BOARD MEMBERS; TO AMEND SECTIONS 37-6-13, 25-15-3 AND 25-15-15, MISSISSIPPI CODE OF 1972, IN CONFORMITY TO THE PRECEDING PROVISIONS; TO BRING FORWARD SECTION 25-15-13, MISSISSIPPI CODE OF 1972, FOR THE PURPOSE OF POSSIBLE AMENDMENTS; AND FOR RELATED PURPOSES.

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

SECTION 1. (1) The public school districts of the state, in their discretion, may choose to provide health insurance and pay with local funds one hundred percent (100%) of the cost of the health insurance premiums of the State and School Employees Health Insurance Plan for members of the school board. No state funds shall be used for payment of the health insurance premiums under the authority of this section. If a school district chooses to provide health insurance and pay the health insurance premiums for school board members under the authority of this section, the district shall be authorized to pay any amount that is one hundred percent (100%) or less of the cost of the health insurance premiums.

(2) (a) Before a public school district chooses to provide health insurance and pay the health insurance premiums for school board members as permitted under subsection (1), the school board, at a regularly scheduled meeting upon which the matter is included as an agenda item, shall vote on the matter of providing and paying for such health insurance, which the results thereof shall be spread upon the minutes of the board. If the results of the vote on the matter is in favor of the option of providing board members with health insurance, then the board shall adopt, not later than the next regular meeting, a resolution calling a referendum to be called and held within the school district boundaries upon the question. The referendum shall be scheduled for not more than six (6) weeks after the date on which the school board's voted to affirm the option to provide and pay for its members' health insurance.

(b) When a referendum has been called, notice of the referendum shall be published at least five (5) days per week, unless the only newspaper published in the school district is published less than five (5) days per week, for at least three (3) consecutive weeks, in at least one (1) newspaper published in the school district. The notice shall be no less than one-fourth (¼) page in size, and the type used shall be no smaller than eighteen (18) point and surrounded by a one-fourth-inch solid black border. The notice may not be placed in that portion of the newspaper where legal notices and classified advertisements appear. The first publication of the notice shall be made not less than twenty-one (21) days before the date fixed for the referendum, and the last publication shall be made not more than seven (7) days before that date. If no newspaper is published in the school district, then the notice shall be published in a newspaper having a general circulation in the school district. The referendum shall be held, as far as is practicable, in the same manner as other referendums and elections are held in the county or municipality. At the referendum, all registered, qualified electors of the school district may vote. The ballots used at the referendum shall have printed thereon a brief statement of the purpose of the referendum and the words "FOR ALLOWING THE SCHOOL DISTRICT TO PROVIDE HEALTH INSURANCE AND PAY THE HEALTH INSURANCE PREMIUMS FOR MEMBERS OF THE SCHOOL BOARD," and "AGAINST ALLOWING THE SCHOOL DISTRICT TO PROVIDE HEALTH INSURANCE AND PAY THE HEALTH INSURANCE PREMIUMS FOR MEMBERS OF THE SCHOOL BOARD." The voter shall vote by placing a cross (X) or checkmark (✓) opposite his or her choice on the proposition. If a majority of the registered, qualified electors of the county school district who vote in the referendum vote in favor of the question, then the discretionary option of allowing school districts to provide and pay the health insurance premiums for school board members shall be approved. However, if a majority of the registered, qualified electors who vote in the referendum vote against the question, the school district shall be prohibited from providing and paying the health insurance premiums for school board members.

(c) A school board, acting on its own volition through an official action of the board, may rescind its discretionary authority to provide and pay the health insurance premiums for school board members without further need of a referendum on the matter.

(3) Similarly, not less than one (1) year after the approval of the initial referendum granting school districts the discretionary authority to provide and pay the health insurance premiums for school board members, if a petition signed by not less than twenty percent (20%) or one thousand five hundred (1,500), whichever is less, of the registered, qualified electors of the school district boundaries, is filed with the school board requesting that a referendum be called on the question of revoking the discretionary authority to provide and pay the health insurance premiums for school board members then the board shall adopt, not later than the next regular meeting, a resolution calling a referendum to be called and held within the school district boundaries upon the question. The referendum shall be scheduled for not more than six (6) weeks after the date the petition is filed with the board. The notice and procedure for conducting the referendum shall follow the same process prescribed in paragraph (b). However, in addition to a brief statement of the purpose of the referendum, the wording shall read, "FOR REVOKING THE SCHOOL DISTRICT'S DISCRETIONARY AUTHORITY TO PROVIDE HEALTH INSURANCE AND PAY THE HEALTH INSURANCE PREMIUMS FOR MEMBERS OF THE SCHOOL BOARD," and "AGAINST REVOKING THE SCHOOL DISTRICT'S DISCRETIONARY AUTHORITY TO PROVIDE HEALTH INSURANCE AND PAY THE HEALTH INSURANCE PREMIUMS FOR MEMBERS OF THE SCHOOL BOARD." The voter shall vote by placing a cross (X) or checkmark (✓) opposite his or her choice on the proposition. If a majority of the registered, qualified electors of the county school district who vote in the referendum vote in favor of the question, then the revocation of the school district's discretionary authority to provide and pay the health insurance premiums for school board members shall be approved. However, if a majority of the registered, qualified electors who vote in the referendum vote against the question, the school district shall continue to exercise its discretionary authority to provide and pay the health insurance premiums for school board members.

SECTION 2. Section 37-6-13, Mississippi Code of 1972, is amended as follows:

37-6-13. (1) Each person serving as a member of the school board of any school district shall receive per diem in the amount of Sixty-seven Dollars ($67.00) for no more than thirty-six (36) meetings of the school board during any one (1) fiscal year or, in his or her discretion, irrevocably may choose to receive as compensation for his or her services an annual salary in the amount of Two Thousand Four Hundred Dollars ($2,400.00), which choice shall remain in force for all successive terms or periods of service of that member. The receipt of the compensation shall not entitle any member of a school board to receive or be eligible for any state employee * * *~~group insurance,~~ retirement or other fringe benefits. However, each member shall be eligible to receive state employee group insurance benefits coverage, provided that, upon a decision of the board to allow insurance coverage to its members, the qualified electors who are residents of the school district in which the members serve elect to provide such insurance coverage, in the manner prescribed in Section 1 of this act. Each member shall be reimbursed for the necessary expenses and mileage in attending meetings of the school board. In addition to the foregoing, all members may be reimbursed for mileage and actual expenses incurred in the further performance of their duties, including attendance at any mandatory school board training session or at regional and national education meetings, when such mileage and other expenses are authorized by the board prior to the date on which they occur. Detailed vouchers shall be submitted for reimbursement for all expenses authorized by this section. Such reimbursement shall be in accordance with Section 25-3-41.

Such expenses shall be paid on order of the school board by pay certificates issued by the superintendent of the school district involved against the funds available for payment of the administrative expense of the district.

(2) (a) If a member of a school board misses twenty percent (20%) or more of the meetings of the school board during a calendar year, except for absences caused by required military duty, the member must reimburse the school district that portion of the total salary paid to the member that year which is proportionate to the number of meetings missed by the member in relation to the total number of school board meetings held during that year. For purposes of this subsection, consideration may be given only to meetings of which public notice is required.

(b) Before February 1 of each year, the president of each local school board shall submit a report to the State Board of Education containing the names of any members of the school board who missed twenty percent (20%) or more of the school board meetings during the preceding calendar year.

SECTION 3. Section 25-15-3, Mississippi Code of 1972, is amended as follows:

25-15-3. For the purposes of this article, the words and phrases used herein shall have the following meanings:

(a) "Employee" means a person who works full time for the State of Mississippi and receives his compensation in a direct payment from a department, agency or institution of the state government and any person who works full time for any school district, community/junior college, public library or university-based program authorized under Section 37-23-31 for deaf, aphasic and emotionally disturbed children or any regular nonstudent bus driver. This shall include legislators, employees of the legislative branch and the judicial branch of the state and "employees" shall include full-time salaried judges and full-time district attorneys and their staff * * * ~~and~~, full-time compulsory school attendance officers and select school board members under the authority of Section 37-6-13 and Section 1 of this act. For the purposes of this article, any "employee" making contributions to the State of Mississippi retirement plan shall be considered a full-time employee.

(b) "Department" means the Department of Finance and Administration.

(d) "Fund" means the State and School Employees Insurance Fund set up under this article.

(e) "Retiree" means any employee retired under the Mississippi retirement plan.

(f) "Board" means the State and School Employees Health Insurance Management Board created under Section 25-15-303.

SECTION 4. Section 25-15-13, Mississippi Code of 1972, is brought forward as follows:

25-15-13. Each eligible employee may participate in the plan 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 board. Forms for this purpose shall be prescribed and issued by the board. All eligible employees will be eligible to participate in the plan on the effective date of the plan or on the date on which they are employed by the state, whichever is later, provided they make the necessary contributions as provided in this article. 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-five (25) years, and physically or mentally handicapped children, regardless of age, are eligible under the 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.

SECTION 5. Section 25-15-15, Mississippi Code of 1972, is amended as follows:

25-15-15. (1) The board is authorized to determine the manner in which premiums and contributions by the state agencies, local school districts, colleges, universities, community/junior colleges and public libraries shall be collected to provide the self-insured health insurance program for employees as provided under this article. The state shall provide fifty percent (50%) of the cost of the above life insurance plan for all active full-time employees. The state shall provide one hundred percent (100%) of the cost of the health insurance plan for active full-time employees initially employed before January 1, 2006, except as otherwise provided in this section. For active full-time employees initially employed on or after January 1, 2006, the state shall provide one hundred percent (100%) of the cost of a basic level of health insurance, except as otherwise provided in this section, and the employees may pay additional amounts to purchase additional benefits or levels of coverage offered under the plan. The board, if determined to be necessary, may assess active full-time employees a portion of the active employee premium in an amount not to exceed Twenty Dollars ($20.00) per month, notwithstanding any language in this section to the contrary. All active full-time employees shall be given the opportunity to purchase coverage for their eligible dependents with the premiums for such dependent coverage, as well as the employee's fifty percent (50%) share for his life insurance coverage, to be deductible from the employee's salary by the agency, department or institution head, which deductions, together with the fifty percent (50%) share of such life insurance premiums of such employing agency, department or institution head from funds appropriated to or authorized to be expended by the employing agency, department or institution head, shall be deposited directly into a depository bank or special fund in the State Treasury, as determined by the board. These funds and interest earned on these funds may be used for the disbursement of claims and shall be exempt from the appropriation process.

(2) The state shall provide annually, by line item in the Mississippi Library Commission appropriation bill, such funds to pay one hundred percent (100%) of the cost of health insurance under the State and School Employees Health Insurance Plan, or any lesser percentage of the cost that is not assessed to the employees by the board, for full-time library staff members in each public library in Mississippi initially employed before January 1, 2006. For full-time library staff members initially employed on or after January 1, 2006, the state shall provide one hundred percent (100%) of the cost of a basic level of health insurance under the State and School Employees Health Insurance Plan, or any lesser percentage of the cost that is not assessed to the employees by the board, and the employees may pay additional amounts to purchase additional benefits or levels of coverage offered under the plan. The commission shall allot to each public library a sufficient amount of those funds appropriated to pay the costs of insurance for eligible employees. Any funds so appropriated by line item 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. If any premiums for the health insurance and/or late charges and interest penalties are not paid by a public library in a timely manner, as defined by the board, the Mississippi Library Commission, upon notice by the board, shall immediately withhold all subsequent disbursements of funds to that public library.

(3) The state shall annually provide one hundred percent (100%) of the cost of the health insurance plan, or any lesser percentage of the cost that is not assessed to the employees by the board, for public school district employees who work no less than twenty (20) hours during each week, select school board members under the authority of Section 37-6-13 and Section 1 of this act and regular nonstudent school bus drivers, if such employees and school bus drivers were initially employed and such school board members in continual service were initially elected or appointed before January 1, 2006. For such employees and school bus drivers initially employed and such school board members in continual service were initially elected or appointed on or after January 1, 2006, the state shall provide one hundred percent (100%) of the cost of a basic level of health insurance under the State and School Employees Health Insurance Plan, or any lesser percentage of the cost that is not assessed to the employees or school board members by the board, and the employees or school board members may pay additional amounts to purchase additional benefits or levels of coverage offered under the plan. 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 the week, select school board members under the authority of Section 37-6-13 and Section 1 of this act and regular nonstudent 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. 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 and select school board members from local funds, except that parent fees for child nutrition programs shall not be increased to cover such cost.

(4) 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 health insurance plan, or any lesser percentage of the cost that is not assessed to the employees by the board, for community/junior college district employees initially employed before January 1, 2006, who work no less than twenty (20) hours during each week. For such employees initially employed on or after January 1, 2006, the state shall provide one hundred percent (100%) of the cost of a basic level of health insurance under the State and School Employees Health Insurance Plan, or any lesser percentage of the cost that is not assessed to the employees by the board, and the employees may pay additional amounts to purchase additional benefits or levels of coverage offered under the plan.

(5) When 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.

(6) 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 shall be paid by the participating employees, which shall be deducted from the salaries of the employees in a manner determined by the board.

(7) 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.

(8) The board may establish and enforce late charges and interest penalties or other penalties for the purpose of requiring the prompt payment of all premiums for life and health insurance permitted under this chapter. All funds in excess of the amount needed for disbursement of claims shall be deposited in a special fund in the State Treasury to be known as the State and School Employees Insurance Fund. The State Treasurer shall invest all funds in the State and School Employees Insurance Fund and all interest earned shall be credited to the State and School Employees Insurance Fund. Such funds shall be placed with one or more depositories of the state and invested on the first day such funds are available for investment in certificates of deposit, repurchase agreements or in United States Treasury bills or as otherwise authorized by law for the investment of Public Employees' Retirement System funds, as long as such investment is made from competitive offering and at the highest and best market rate obtainable consistent with any available investment alternatives; however, such investments shall not be made in shares of stock, common or preferred, or in any other investments which would mature more than one (1) year from the date of investment. The board shall have the authority to draw from this fund periodically such funds as are necessary to operate the self-insurance plan or to pay to the insurance carrier the cost of operation of this plan, it being the purpose to limit the amount of participation by the state to fifty percent (50%) of the cost of the life insurance program and not to limit the contracting for additional benefits where the cost will be paid in full by the employee. The state shall not share in the cost of coverage for retired employees.

(9) The board shall also provide for the creation of an Insurance Reserve Fund and funds therein shall be invested by the State Treasurer with all interest earned credited to the State and School Employees Insurance Fund.

(10) Any retired employee electing to purchase retired life and health insurance will have the full cost of such insurance deducted monthly from his State of Mississippi retirement plan check or direct billed for the cost of the premium if the retirement check is insufficient to pay for the premium. If the board determines actuarially that the premium paid by the participating retirees adversely affects the overall cost of the plan to the state, then the board may impose a premium surcharge, not to exceed fifteen percent (15%), upon such participating retired employees who are under the age for Medicare eligibility and who were initially employed before January 1, 2006. For participating retired employees who are under the age for Medicare eligibility and who were initially employed on or after January 1, 2006, the board may impose a premium surcharge in an amount the board determines actuarially to cover the full cost of insurance.

(11) This section shall stand repealed on July 1, 2026.

SECTION 6. This act shall take effect and be in force from and after July 1, 2023.