77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session

NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .

LC 3923

                         House Bill 3508

Sponsored by Representative HANNA; Representatives CAMERON,
  DAVIS, GILLIAM, JOHNSON, KRIEGER, OLSON, PARRISH, THATCHER,
  WHISNANT

                             SUMMARY

The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.

  Authorizes Oregon University System to withdraw from Public
Employees' Benefit Board health benefit plan and establish or
participate in alternative employee health insurance plans.

                        A BILL FOR AN ACT
Relating to benefit plans for employees of the Oregon University
  System; amending ORS 243.107 and 351.094.
  Whereas the Public Employees' Benefit Board's average monthly
cost per member in 2009 was 32 percent above the average cost for
a large public sector employer; and
  Whereas the Oregon University System student resident tuition
increased 96.75 percent between 2003 and 2012; and
  Whereas the Oregon University System benefits costs have
increased 132 percent since the 2001-2002 school year; and
  Whereas the majority of the Oregon University System costs are
borne by tuition because of reduced state funding, thus impacting
affordability and the achievement of the statewide education goal
of 40-40-20; and
  Whereas the Oregon University System 2012 Health and Welfare
Plans Report estimated that the Oregon University System could
save approximately $67 million in two years by using a health
insurance program other than the Public Employees' Benefit Board;
now, therefore,
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 243.107 is amended to read:
  243.107.  { + (1)(a) + } A person employed by a public
university listed in ORS 352.002 or the Oregon Health and Science
University may be considered an eligible employee for
participation in one of the group benefit plans described in ORS
243.135  { + if the Oregon University System elects to
participate in a group benefit plan described in ORS 243.135.
  (b) Notwithstanding paragraph (a) of this subsection, the
Oregon University System may elect to establish or provide a
group benefit plan other than a plan described in ORS 243.135.
  (c) An eligible employee under paragraph (a) of this subsection
may participate in a group benefit plan described in ORS 243.135
or other group benefit plan established or provided by the Oregon
University System  + }if the State Board of Higher Education, or
the Oregon Health and Science University Board of Directors for
Oregon Health and Science University employees, determines that
funds are available therefor and if:
    { - (1) - }   { + (2) + } Notwithstanding ORS 243.105
(4)(b)(F), the person is a student enrolled in an institution of
higher education and is employed as a graduate teaching
assistant, graduate research assistant or a fellow at the
institution and elects to participate; or
    { - (2) - }   { + (3) + } Notwithstanding ORS 243.105
(4)(b)(B) or (C), the person is employed on a less than half-time
basis in an unclassified instructional or research support
capacity and elects to participate.
  SECTION 2. ORS 351.094 is amended to read:
  351.094. (1) { + (a) + } The State Board of Higher Education
shall provide group insurance to employees of the Oregon
University System through the Public Employees' Benefit Board or
may elect to provide alternative group health and welfare
insurance benefit plans to employees of the Oregon University
System if the same level of benefits is available at a lower cost
than through the Public Employees' Benefit Board.
   { +  (b) If the State Board of Higher Education elects to
provide a group health and welfare insurance benefit plan to
Oregon University System employees through the Public Employees'
Benefit Board, the State Board of Higher Education may
subsequently withdraw from the plan and establish or provide an
alternative group health insurance plan for the Oregon University
System employees if the alternative group health insurance plan
offers the same level of benefits at a lower cost than through
the Public Employees' Benefit Board. + }
  (2) For the purposes of ORS 243.555 to 243.575, if the State
Board of Higher Education chooses not to participate in the
benefit plans offered through the Public Employees' Benefit
Board, the State Board of Higher Education may have the authority
granted to the Public Employees' Benefit Board under ORS 243.555
to 243.575 for the administration of an appropriate expense
reimbursement plan.
  (3) The State Board of Higher Education shall offer one or more
deferred compensation plans to employees of the Oregon University
System. The Oregon University System shall, at the discretion of
the board, choose whether to offer its employees the state
deferred compensation plan established under ORS 243.401 to
243.507 or another deferred compensation plan that the board
elects to make available to the employees of the Oregon
University System.
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