Bill Text: IN HB1260 | 2011 | Regular Session | Engrossed
Bill Title: School corporation health insurance.
Spectrum: Bipartisan Bill
Status: (Passed) 2011-05-16 - Effective 07/01/2011 [HB1260 Detail]
Download: Indiana-2011-HB1260-Engrossed.html
Citations Affected: IC 20-26.
Synopsis: School corporation health insurance. Specifies certain
requirements and recommendations for school corporation employee
health coverage programs.
Effective: July 1, 2011.
(SENATE SPONSORS _ CHARBONNEAU, ARNOLD, HERSHMAN)
January 12, 2011, read first time and referred to Committee on Education.
February 8, 2011, amended, reported _ Do Pass. Recommitted to Committee on Ways and
Means pursuant to Rule 127.
February 17, 2011, amended, reported _ Do Pass.
March 28, 2011, read second time, amended, ordered engrossed.
March 29, 2011, engrossed.
March 30, 2011, read third time, passed. Yeas 81, nays 12.
March 31, 2011, read first time and referred to Committee on Appropriations.
April 7, 2011, amended, reported favorably _ Do Pass.
April 11, 2011, read second time, amended, ordered engrossed.
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A BILL FOR AN ACT to amend the Indiana Code concerning
education and to make an appropriation.
(1) In the name of the school corporation, to sue and be sued and to enter into contracts in matters permitted by applicable law.
(2) To take charge of, manage, and conduct the educational affairs of the school corporation and to establish, locate, and provide the necessary schools, school libraries, other libraries where permitted by law, other buildings, facilities, property, and equipment.
(3) To appropriate from the school corporation's general fund an amount, not to exceed the greater of three thousand dollars ($3,000) per budget year or one dollar ($1) per pupil, not to exceed twelve thousand five hundred dollars ($12,500), based on the school corporation's previous year's ADM, to promote the best
interests of the school corporation through:
(A) the purchase of meals, decorations, memorabilia, or
awards;
(B) provision for expenses incurred in interviewing job
applicants; or
(C) developing relations with other governmental units.
(4) To:
(A) Acquire, construct, erect, maintain, hold, and contract for
construction, erection, or maintenance of real estate, real estate
improvements, or an interest in real estate or real estate
improvements, as the governing body considers necessary for
school purposes, including buildings, parts of buildings,
additions to buildings, rooms, gymnasiums, auditoriums,
playgrounds, playing and athletic fields, facilities for physical
training, buildings for administrative, office, warehouse, repair
activities, or housing school owned buses, landscaping, walks,
drives, parking areas, roadways, easements and facilities for
power, sewer, water, roadway, access, storm and surface
water, drinking water, gas, electricity, other utilities and
similar purposes, by purchase, either outright for cash (or
under conditional sales or purchase money contracts providing
for a retention of a security interest by the seller until payment
is made or by notes where the contract, security retention, or
note is permitted by applicable law), by exchange, by gift, by
devise, by eminent domain, by lease with or without option to
purchase, or by lease under IC 20-47-2, IC 20-47-3, or
IC 20-47-5.
(B) Repair, remodel, remove, or demolish, or to contract for
the repair, remodeling, removal, or demolition of the real
estate, real estate improvements, or interest in the real estate
or real estate improvements, as the governing body considers
necessary for school purposes.
(C) Provide for conservation measures through utility
efficiency programs or under a guaranteed savings contract as
described in IC 36-1-12.5.
(5) To acquire personal property or an interest in personal
property as the governing body considers necessary for school
purposes, including buses, motor vehicles, equipment, apparatus,
appliances, books, furniture, and supplies, either by cash purchase
or under conditional sales or purchase money contracts providing
for a security interest by the seller until payment is made or by
notes where the contract, security, retention, or note is permitted
by applicable law, by gift, by devise, by loan, or by lease with or
without option to purchase and to repair, remodel, remove,
relocate, and demolish the personal property. All purchases and
contracts specified under the powers authorized under subdivision
(4) and this subdivision are subject solely to applicable law
relating to purchases and contracting by municipal corporations
in general and to the supervisory control of state agencies as
provided in section 6 of this chapter.
(6) To sell or exchange real or personal property or interest in real
or personal property that, in the opinion of the governing body, is
not necessary for school purposes, in accordance with IC 20-26-7,
to demolish or otherwise dispose of the property if, in the opinion
of the governing body, the property is not necessary for school
purposes and is worthless, and to pay the expenses for the
demolition or disposition.
(7) To lease any school property for a rental that the governing
body considers reasonable or to permit the free use of school
property for:
(A) civic or public purposes; or
(B) the operation of a school age child care program for
children who are at least five (5) years of age and less than
fifteen (15) years of age that operates before or after the school
day, or both, and during periods when school is not in session;
if the property is not needed for school purposes. Under this
subdivision, the governing body may enter into a long term lease
with a nonprofit corporation, community service organization, or
other governmental entity, if the corporation, organization, or
other governmental entity will use the property to be leased for
civic or public purposes or for a school age child care program.
However, if payment for the property subject to a long term lease
is made from money in the school corporation's debt service fund,
all proceeds from the long term lease must be deposited in the
school corporation's debt service fund so long as payment for the
property has not been made. The governing body may, at the
governing body's option, use the procedure specified in
IC 36-1-11-10 in leasing property under this subdivision.
(8) To:
(A) Employ, contract for, and discharge superintendents,
supervisors, principals, teachers, librarians, athletic coaches
(whether or not they are otherwise employed by the school
corporation and whether or not they are licensed under
IC 20-28-5), business managers, superintendents of buildings
and grounds, janitors, engineers, architects, physicians,
dentists, nurses, accountants, teacher aides performing
noninstructional duties, educational and other professional
consultants, data processing and computer service for school
purposes, including the making of schedules, the keeping and
analyzing of grades and other student data, the keeping and
preparing of warrants, payroll, and similar data where
approved by the state board of accounts as provided below,
and other personnel or services as the governing body
considers necessary for school purposes.
(B) Fix and pay the salaries and compensation of persons and
services described in this subdivision.
(C) Classify persons or services described in this subdivision
and to adopt schedules of salaries or compensation.
(D) Determine the number of the persons or the amount of the
services employed or contracted for as provided in this
subdivision.
(E) Determine the nature and extent of the duties of the
persons described in this subdivision.
The compensation, terms of employment, and discharge of
teachers are, however, subject to and governed by the laws
relating to employment, contracting, compensation, and discharge
of teachers. The compensation, terms of employment, and
discharge of bus drivers are subject to and governed by laws
relating to employment, contracting, compensation, and discharge
of bus drivers. The forms and procedures relating to the use of
computer and data processing equipment in handling the financial
affairs of the school corporation must be submitted to the state
board of accounts for approval so that the services are used by the
school corporation when the governing body determines that it is
in the best interest of the school corporation while at the same
time providing reasonable accountability for the funds expended.
(9) Notwithstanding the appropriation limitation in subdivision
(3), when the governing body by resolution considers a trip by an
employee of the school corporation or by a member of the
governing body to be in the interest of the school corporation,
including attending meetings, conferences, or examining
equipment, buildings, and installation in other areas, to permit the
employee to be absent in connection with the trip without any loss
in pay and to reimburse the employee or the member the
employee's or member's reasonable lodging and meal expenses
and necessary transportation expenses. To pay teaching personnel
for time spent in sponsoring and working with school related trips
or activities.
(10) To transport children to and from school, when in the
opinion of the governing body the transportation is necessary,
including considerations for the safety of the children and without
regard to the distance the children live from the school. The
transportation must be otherwise in accordance with applicable
law.
(11) To provide a lunch program for a part or all of the students
attending the schools of the school corporation, including the
establishment of kitchens, kitchen facilities, kitchen equipment,
lunch rooms, the hiring of the necessary personnel to operate the
lunch program, and the purchase of material and supplies for the
lunch program, charging students for the operational costs of the
lunch program, fixing the price per meal or per food item. To
operate the lunch program as an extracurricular activity, subject
to the supervision of the governing body. To participate in a
surplus commodity or lunch aid program.
(12) To purchase textbooks, to furnish textbooks without cost or
to rent textbooks to students, to participate in a textbook aid
program, all in accordance with applicable law.
(13) To accept students transferred from other school corporations
and to transfer students to other school corporations in accordance
with applicable law.
(14) To make budgets, to appropriate funds, and to disburse the
money of the school corporation in accordance with applicable
law. To borrow money against current tax collections and
otherwise to borrow money, in accordance with IC 20-48-1.
(15) To purchase insurance or to establish and maintain a
program of self-insurance relating to the liability of the school
corporation or the school corporation's employees in connection
with motor vehicles or property and for additional coverage to the
extent permitted and in accordance with IC 34-13-3-20. To
purchase additional insurance or to establish and maintain a
program of self-insurance protecting the school corporation and
members of the governing body, employees, contractors, or agents
of the school corporation from liability, risk, accident, or loss
related to school property, school contract, school or school
related activity, including the purchase of insurance or the
establishment and maintenance of a self-insurance program
protecting persons described in this subdivision against false
imprisonment, false arrest, libel, or slander for acts committed in
the course of the persons' employment, protecting the school
corporation for fire and extended coverage and other casualty
risks to the extent of replacement cost, loss of use, and other
insurable risks relating to property owned, leased, or held by the
school corporation. In accordance with IC 20-26-17, to:
(A) participate in a state employee health plan under
IC 5-10-8-6.6 or IC 5-10-8-6.7;
(B) purchase insurance; or
(C) establish and maintain a program of self-insurance;
to benefit school corporation employees, including accident,
sickness, health, or dental coverage, provided that a plan of
self-insurance must include an aggregate stop-loss provision.
(16) To make all applications, to enter into all contracts, and to
sign all documents necessary for the receipt of aid, money, or
property from the state, the federal government, or from any other
source.
(17) To defend a member of the governing body or any employee
of the school corporation in any suit arising out of the
performance of the member's or employee's duties for or
employment with, the school corporation, if the governing body
by resolution determined that the action was taken in good faith.
To save any member or employee harmless from any liability,
cost, or damage in connection with the performance, including the
payment of legal fees, except where the liability, cost, or damage
is predicated on or arises out of the bad faith of the member or
employee, or is a claim or judgment based on the member's or
employee's malfeasance in office or employment.
(18) To prepare, make, enforce, amend, or repeal rules,
regulations, and procedures:
(A) for the government and management of the schools,
property, facilities, and activities of the school corporation, the
school corporation's agents, employees, and pupils and for the
operation of the governing body; and
(B) that may be designated by an appropriate title such as
"policy handbook", "bylaws", or "rules and regulations".
(19) To ratify and approve any action taken by a member of the
governing body, an officer of the governing body, or an employee
of the school corporation after the action is taken, if the action
could have been approved in advance, and in connection with the
action to pay the expense or compensation permitted under
IC 20-26-1 through IC 20-26-5, IC 20-26-7, IC 20-40-12, and
IC 20-48-1 or any other law.
(20) To exercise any other power and make any expenditure in carrying out the governing body's general powers and purposes provided in this chapter or in carrying out the powers delineated in this section which is reasonable from a business or educational standpoint in carrying out school purposes of the school corporation, including the acquisition of property or the employment or contracting for services, even though the power or expenditure is not specifically set out in this chapter. The specific powers set out in this section do not limit the general grant of powers provided in this chapter except where a limitation is set out in IC 20-26-1 through IC 20-26-5, IC 20-26-7, IC 20-40-12, and IC 20-48-1 by specific language or by reference to other law.
Chapter 17. School Corporation Employee Health Coverage
Sec. 1. As used in this chapter, "cost of coverage" includes any deposit to a health savings account that is related to a high deductible health plan.
Sec. 2. As used in this chapter, "health plan" refers to any of the following:
(1) A hospital or medical expense incurred policy or certificate.
(2) A hospital or medical service plan contract.
(3) A health maintenance organization subscriber contract.
(4) A self-funded employer plan that provides coverage for health care services.
The term includes a high deductible health plan with a related health savings account.
Sec. 3. The employer share of the cost of coverage under a health plan provided by a school corporation for the school corporation's employees may not exceed by more than twelve percent (12%) the employer share of the cost of coverage under the same type of health plan:
(1) described in IC 5-10-8-7(b) or IC 5-10-8-7(c); and
(2) provided by the state for state employees;
for any twelve (12) month period beginning on the first health plan issue or renewal date that occurs after December 31, 2011.
Sec. 4. If a school corporation for any twelve (12) month period beginning on the first health plan issue or renewal date that occurs after December 31, 2011, spends in excess of the amount specified in section 3 of this chapter, the school corporation shall do the
following:
(1) Not more than forty-five (45) days after the renewal date
on which the school corporation is determined to be
noncompliant with section 3 of this chapter, submit to the
state personnel department a plan to achieve compliance. The
plan may include health plan benefit changes and
implementation of best practices described in section 6 of this
chapter.
(2) Twelve (12) months after the date a plan is submitted
under subdivision (1), certify to the state personnel
department the school corporation's compliance with section
3 of this chapter.
(3) If the school corporation fails to file the certification
described in subdivision (2), beginning on the first renewal or
expiration date of the school corporation's health plan after
the twelve (12) month period described in subdivision (2)
expires, elect to participate in the state employee health plan
as provided in IC 5-10-8-6.7 to provide any school corporation
employee health coverage.
A school corporation shall provide additional information, data,
and documentation that is requested by the state personnel
department to substantiate compliance with this section.
Sec. 5. The following apply with respect to a school
corporation's employee health coverage program:
(1) If the school corporation pays a commission, a bonus, an
override, a contingency fee, or any other compensation to an
insurance producer or other adviser in connection with the
health coverage, the school corporation shall:
(A) specify the commission, bonus, override, contingency
fee, or other compensation in the school corporation's
annual budget fixed under IC 6-1.1-17; and
(B) make the information specified under clause (A)
available to the public upon request.
(2) The school corporation shall perform audits once each five
(5) years to ensure that covered dependents of school
corporation employees are entitled to coverage under the
school corporation's employee health coverage program.
(3) The school corporation may allow:
(A) members of the school corporation's governing body;
or
(B) an attorney of the school corporation's governing
body;
to be covered under the school corporation's employee health coverage program.
(4) All individuals insured under the school corporation's employee health coverage program:
(A) are eligible for the same coverage as all other individuals insured under the program; and
(B) to the extent allowed by federal law, may pay different amounts for the coverage.
Sec. 6. A school corporation may consider the following best practices with respect to the school corporation's employee health coverage program:
(1) Obtaining more than one (1) estimate for the coverage, including use of health care service discounts and medical management, to obtain the most cost savings in the program.
(2) Requiring employer contributions of at least fifty percent (50%) and not more than eighty-five percent (85%) of the cost of the coverage.
(3) Offering at least one (1) of each of the following, in accordance with the requirements of the Internal Revenue Code, as an option for the school corporation's employees:
(A) A high deductible health plan with a health savings account.
(B) A health reimbursement arrangement.
(4) Offering wellness programs to the school corporation's employees.
(5) Either:
(A) joining a consortium or trust of school corporations; or
(B) electing to participate in the state employee health plan as provided in IC 5-10-8-6.7;
to provide school corporation employee health coverage to all school corporation employees.
(6) Providing medical clinics on the property of the school corporation for individuals insured under the school corporation employee health coverage program.
Sec. 7. A consortium or trust of school corporations referred to in this chapter shall accept any school corporation for participation in the consortium or trust if the school corporation agrees to participate in the consortium's or trust's best practice requirements.
Sec. 8. (a) This chapter does not require a school corporation employee to participate in a school corporation's employee health coverage program.
(b) With respect to a collective bargaining agreement that is in effect on July 1, 2011, this chapter does not:
(1) give a party to the collective bargaining agreement any greater rights under the collective bargaining agreement than the party had before July 1, 2011; or
(2) annul, modify, or limit the collective bargaining agreement.
Sec. 9. Not later than December 31 in each calendar year, a school corporation shall report the following information for the school year ending in the calendar year to the legislative council in an electronic format under IC 5-14-6 and the state personnel department:
(1) The employer's share of the cost of coverage of the state employee health plan used by the school corporation, in total and separated out to show the amount payable per covered individual by type of family or single coverage plan.
(2) The covered individual's share of the cost of coverage of the state employee health plan used by the school corporation, in total and separated out to show the amount payable per covered individual by type of family or single coverage plan.
(3) The total cost of coverage incurred by the individual's covered by the health plan and the school corporation.
A school corporation shall provide additional information, data, and documentation that is requested by the state personnel department to substantiate compliance with this section.
