HB 511 — GROUP INSURANCE SALARY AMOUNTS

HOUSE BILL 511 5454TH THLEGISLATURE LEGISLATURE- STATE OF NEW MEXICO - STATEOFNEWMEXICO- FIRST SESSIO,SESSION, 2019 INTRODUCED BY Natalie Figueroa 6Pursuant 8to 10House ANRule ACT24-1, RELATINGthis TOdocument PUBLICincorporates SCHOOLamendments EMPLOYEES;that have been adopted prior to consideration of this measure by the House.

ADJUSTINGIt EMPLOYEEis SALARYa AMOUNTStool USEDto INshow THEthe DETERMINATIONamendments OFin GROUPcontext INSURANCEand CONTRIBUTIONis RATESnot FORto SCHOOLbe DISTRICTS,used CHARTERfor SCHOOLSthe ANDpurpose PARTICIPATINGof ENTITIESamendments. IN THE PUBLIC SCHOOL INSURANCE AUTHORITY.

eAN tACT 17RELATING BETO ITPUBLIC ENACTEDSCHOOL BYEMPLOYEES; THE LEGISLATURE OF THE STATE OF NEW MEXICO:

wADJUSTING lEMPLOYEE nSALARY dh 18AMOUNTS SECTIONUSED 1.IN THE DETERMINATION OF GROUP INSURANCE g o CONTRIBUTION RATES FOR SCHOOL DISTRICTS, CHARTER SCHOOLS AND t hr g e i k PARTICIPATING ENTITIES IN THE PUBLIC SCHOOL INSURANCE AUTHORITY h r i s HSEICº HECº;

SectionMAKING 22-29-10AN NMSAAPPROPRIATION»HEC»HSEIC. 1978 (being Laws 1989, = = 19 Chapter 373, Section 5, as amended) is amended to read:

ah l, it, ae u g e rb 20l "22-29-10.e e h BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

GROUPn INSURANCEd CONTRIBUTIONS.--d ai t= m= mo 21h A.SECTION 1.

GroupSection insurance22-29-10 contributionsNMSA for1978 school(being dLaws r1989, el 22] districts,b charter,d schoolsi anda participatingº entities in the c e sChapter k373, 23Section authority5, shallas beamended) madeis asamended follows:to read:

er ai n= br 24t (1)e atw leastd seventy-fivem percenta ofn theo cost"22-29-10. u [ of the insurance of an employee whose annual salary is less .213067.1 than [fifteen thousand dollars ($15,000) ] twenty thousand dollars ($20,000);

(2)GROUP atINSURANCE leastCONTRIBUTIONS.-- seventyd percentm of: the cost of the insurance of an employee whose annual salary is [fifteen thousand dollars ($15,000)] twenty thousand dollars ($20,000) 6 or more but less than [twenty thousand dollars ($20,000)] twenty-five thousand dollars ($25,000) ;

(3)b ate leastd sixty-fives percentº ofo thet costn of= the.213067.1 insurances ofk anm employeee whosee annuala salaryn ise [twentyd thousandr dollarse ($20,000)]l twenty-fiveu thousand[ dollarsA ($25,000)d orA. more but less than [twenty-five thousand dollars ($25,000);

Group insurance contributions for school districts, charter schools and participating entities in the authority shall be made as follows:

(1) at least seventy-five percent of the cost of the insurance of an employee whose annual salary is less than [fifteen thousand dollars ($15,000) ] twenty thousand dollars ($20,000);

(2) at least seventy percent of the cost of the insurance of an employee whose annual salary is [fifteen thousand dollars ($15,000)] twenty thousand dollars ($20,000) or more but less than [twenty thousand dollars ($20,000)] twenty-five thousand dollars ($25,000) ;

(3) at least sixty-five percent of the cost of the insurance of an employee whose annual salary is [twenty thousand dollars ($20,000)] twenty-five thousand dollars ($25,000) or more but less than [twenty-five thousand dollars h ($25,000);

and u » r (4) at least sixty percent of the cost of the t h g e l i insurance of an employee whose annual salary is [twenty-five h r i s thousand dollars ($25,000)] thirty thousand dollars ($30,000) h , e h or more.

t u g e b l e 17e , gh B.

Within available revenue, school districts, e e n d 18d i = = o h charter schools and participating entities in the authority may = = l ] 19b ,d i a º r contribute up to eighty percent of the cost of the insurance of ae l r i= 20t e w d m a n o all employees.

td em a: t C.

Wheneverb a school district, charter school or m m 21 e d r e 22t participatingº entityo int then authority= offers.213067.1 tos itsk employeesm c e r- c2 23- alternative health plan benefit options, including health e a n be 24d maintenancer organizations,e preferredl provider organizations or u [ panelA doctord plans,C. the school district, charter school or .213067.1 - 2 - participating entity may pay an amount on behalf of the employee and family member for the indemnity health insurance plan sufficient to result in equal employee monthly costs to the cost of the health maintenance organization plans, preferred provider organization plans or panel doctor plans, regardless of the percentage limitations in the Public School Insurance Authority Act.

SchoolWhenever districts,a school district, charter schoolsschool andor participating entitiesentity in the authority mayoffers payto upits toemployees onealternative hundredhealth percentplan ofbenefit options, including health maintenance organizations, preferred provider organizations or panel doctor plans, the firstschool fiftydistrict, thousandcharter dollarsschool ($50,000)or ofparticipating termentity lifemay insurance."pay -an 3amount -on 13behalf 15of ethe eemployee 17and efamily emember nfor dthe 18indemnity =health =insurance lplan ]sufficient 19to aresult lin requal iemployee 20monthly tcosts eto athe tcost mof mthe 21health emaintenance dorganization rplans, epreferred 22provider corganization eplans ror cpanel 23doctor eplans, aregardless nof bthe 24percentage ulimitations [in .213067.1the Public School Insurance Authority Act.

School districts, charter schools and participating entities in the authority may pay up to one hundred percent of the first fifty thousand dollars ($50,000) of term life insurance." HSEICº HECºSECTION 2.

APPROPRIATION.--Three million five h hundred thousand dollars ($3,500,000) is appropriated from the u » r general fund to the public education department for expenditure t h g e l i in fiscal year 2020 to be added to the state equalization h r i s guarantee distribution.

Any unexpended or unencumbered balance h , e h remaining at the end of fiscal year 2020 shall revert to the t u g e b l e e , gh general fund.»HEC»HSEIC n d d i = = o h - 3 - l ] b ,d i a º r e r = t e w d m a n o d m :

b r e t º o t n = .213067.1 s k m e e a n e d r e l u [ A d