Chapter 655 Oregon Laws 2001

AN ACT

SB 416

Relating to Public Employees’ Benefit Board; creating new provisions; and amending ORS 243.125, 243.165 and 243.185.

Be It Enacted by the People of the State of Oregon:

SECTION 1. Section 2 of this 2001 Act is added to and made a part of ORS 243.105 to 243.285.

SECTION 2. (1) There is created the Public Employees’ Revolving Fund, separate and distinct from the General Fund. The balances of the Public Employees’ Revolving Fund are continuously appropriated to cover expenses incurred in connection with the administration of ORS 243.105 to 243.285 and 292.051. Assets of the Public Employees’ Revolving Fund may be retained for limited periods of time as established by the Public Employees’ Benefit Board by rule. Among other purposes, the board may retain the funds to control expenditures and to stabilize benefit premium rates. The board may establish subaccounts within the Public Employees’ Revolving Fund.

(2) There is appropriated to the Public Employees’ Revolving Fund all unused employer contributions for employee benefits and all refunds, dividends, unused premiums and other payments attributable to any employee contribution or employer contribution made from any carrier or contractor that has provided employee benefits administered by the board, and all interest earned on such moneys.

SECTION 3. ORS 243.165 is amended to read:

243.165. (1) There hereby is created in the General Fund an account to be known as the Public Employees’ Benefit Account, the balances of which are continuously appropriated to cover administrative expenses incurred in connection with the administration of ORS 243.105 to 243.285 and 292.051.

(2) There hereby is appropriated to the Public Employees’ Benefit Account [all refunds and dividends from any carrier or contractor because of any agreement or contract entered into between the carrier and the Public Employees’ Benefit Board and], subject to ORS 243.185, an amount not to exceed two percent of the monthly [state] employer and employee contributions for any benefit available under ORS 243.105 to 243.285 and 292.051.

SECTION 4. ORS 243.185 is amended to read:

243.185. Subject to legislative or Emergency Board approval of budgetary authorization for operation of the Public Employees’ Benefit Board and its administration of the health benefit plans and other duties under ORS 243.105 to 243.285 and 292.051, an amount not to exceed two percent of the [state] employer and [the] employee contributions shall be forwarded by each payroll disbursing officer to the board and deposited by it in the State Treasury to the credit of the Public Employees’ Benefit Account to meet administrative and other costs authorized by ORS 243.105 to 243.285 and 292.051. [However, no such assessment shall be required for any month in which the balance in the account exceeds five percent of the monthly total of state and employee contributions.] The board shall take action to ensure that the balance in the account does not exceed five percent of the monthly total of employer and employee contributions for more than 120 days.

SECTION 5. ORS 243.125 is amended to read:

243.125. (1) The Public Employees’ Benefit Board shall prescribe rules for the conduct of its business. The board shall study all matters connected with the providing of adequate benefit plan coverage for eligible state employees on the best basis possible with relation both to the welfare of the employees and to the state. The board shall design benefits, devise specifications, analyze carrier responses to advertisements for bids and decide on the award of contracts. Contracts shall be signed by the chairperson on behalf of the board.

(2) In carrying out its duties under subsection (1) of this section, the goal of the board shall be to provide a high quality plan of health and other benefits for state employees at a cost affordable to both the employer and the employees.

(3) Subject to ORS 183.310 to 183.550, the board may make rules not inconsistent with ORS 243.105 to 243.285 and 292.051 to determine the terms and conditions of eligible employee participation and coverage.

(4) The board shall prepare specifications, invite bids and do acts necessary to award contracts for health benefit plan and dental benefit plan coverage of eligible employees [for a one- or two-year period] in accordance with the criteria set forth in ORS 243.135 (1).

(5) The board may retain consultants, brokers or other advisory personnel when necessary and, subject to the State Personnel Relations Law, shall employ such personnel as are required to perform the functions of the board.

Approved by the Governor June 28, 2001

Filed in the office of Secretary of State June 28, 2001

Effective date January 1, 2002

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