Amendment No. 577

Senate Amendment to Senate Bill No. 544 (BDR 23-230)

Proposed by: Committee on Government Affairs

Amendment Box:

Resolves Conflicts with: N/A

Amends: Summary: Title: Preamble: Joint Sponsorship:

ASSEMBLY ACTION Initial and Date | SENATE ACTION Initial and Date

Adopted Lost | Adopted Lost

Concurred In Not | Concurred In Not

Receded Not | Receded Not

Amend sec. 4, page 4, line 17, by deleting "12," and inserting "12.5".

Amend sec. 5, page 4, line 19, by deleting "12," and inserting "12.5,".

Amend the bill as a whole by adding a new section designated sec. 12.5, following sec. 12, to read as follows:

"Sec. 12.5. 1. If approved by the board pursuant to this section, a group of not less than 300 officers, employees or retired employees, or any combination thereof, that participate in the program may leave the program and secure life, accident or health insurance, or any combination thereof, for the group from an:

(a) Insurer that is authorized by the commissioner of insurance to provide such insurance; or

(b) Employee benefit plan, as defined in 29 U.S.C. § 1002(3) that has been approved by the board. The board shall approve an employee benefit plan unless the board finds that the plan is not operated pursuant to such sound accounting and financial management practices as to ensure that the group will continue to receive adequate benefits.

2. Before entering into a contract with the insurer or approved employee benefit plan, the group shall submit the proposed contract to the board for approval. The board may approve the contract unless the departure of the group from the program would cause an increase of more than 10 percent in the costs of premiums or contributions for the remaining participants in the program.

3. The board shall disburse periodically to the insurer or employee benefit plan with which a group contracts pursuant to this section the total amount set forth in the contract for premiums or contributions for the members of the group for that period but not to exceed the amount appropriated to or authorized for the department, agency, commission or public agency that employs the members of the group for premiums or contributions for the members of the group for that period, after deducting any administrative costs related to the group.".

Amend sec. 18, page 9, line 18, by deleting "seven" and inserting "nine".

Amend sec. 18, page 10, line 6, after "(g)" by inserting:

"Two members who have substantial and demonstrated experience in risk management, portfolio investment strategies or employee benefits programs appointed by the governor.

(h)".

Amend sec. 18, page 10, line 12, by deleting "Have" and inserting:

"Except for a member appointed pursuant to paragraph (g) of subsection 2, have".

Amend sec. 18, page 10, line 14, by deleting "Be" and inserting:

"Except for a member appointed pursuant to paragraph (g) of subsection 2, be".

Amend sec. 20, page 11, line 40, after "(e)" by inserting:

"Investigate and approve or disapprove any contract proposed pursuant to section 12.5 of this act.

(f)".

Amend sec. 20, page 11, line 42, by deleting "12," and inserting "12.5,".

Amend sec. 20, page 12, line 8, by deleting "and".

Amend sec. 20, page 12, line 9, after "(4)" by inserting:

"Procedures by which a group of participants in the program may leave the program pursuant to section 12.5 of this act and conditions and procedures for reentry into the program by such participants; and

(5)".

Amend sec. 20, page 12, line 10, by deleting "(f)" and inserting "(g)".

Amend sec. 20, page 12, by deleting lines 11 through 18 and inserting:

"shall provide [an] :

(1) An annual audit of the [plan and] program; and

(2) A biennial audit of the program to determine whether the program complies with all applicable federal and state laws relating to taxes and employee benefits.

The accountant shall report to the [committee] board and the [legislative commission. For the purposes of] interim benefits committee created by section 12 of this act.".

Amend sec. 34, page 19, line 41, by deleting "12," and inserting "12.5,".

Amend sec. 42, page 25, line 10, by deleting "12," and inserting "12.5,".

Amend sec. 45, page 26, line 31, after "(e)" by inserting:

"Investigate and approve or disapprove any contract proposed pursuant to section 12.5 of this act.

(f)".

Amend sec. 45, page 26, line 33, by deleting "[12,] 11," and inserting "12.5".

Amend sec. 45, page 26, by deleting line 41 and inserting:

"(4) Procedures by which a group of participants in the program may leave the program pursuant to section 12.5 of this act and conditions and procedures for reentry into the program by such participants; and

(5) Specific procedures for the determination of contested".

Amend sec. 45, page 27, line 1, by deleting "(f)" and inserting "(g)".

Amend sec. 45, page 27, by deleting lines 2 through 10 and inserting:

"accountant shall provide:

(1) An annual audit of the program; and

(2) A biennial audit of the program to determine whether the program complies with all applicable federal and state laws relating to taxes and employee benefits.

The accountant shall report to the board . [and the interim benefits committee created by section 12 of this act.]".

Amend the title of the bill, ninth line, after "program;" by inserting:

"authorizing certain public employees to secure insurance from an insurer or employee benefit plan other than through the public employees’ benefits program;".