71st OREGON LEGISLATIVE ASSEMBLY--2001 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 3062
 
                         Senate Bill 768
 
Sponsored by Senator HANNON
 
 
                             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.
 
  Modifies requirements for association or group of employers
seeking to provide health benefits through multiple employer
welfare arrangement.
 
                        A BILL FOR AN ACT
Relating to multiple employer welfare arrangements; creating new
  provisions; and amending ORS 750.305 and 750.307.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 750.305 is amended to read:
  750.305. An association or group of employers seeking to
provide health benefits through a multiple employer welfare
arrangement must apply for a certificate of multiple employer
welfare arrangement on a form prescribed by the Director of the
Department of Consumer and Business Services. The application
must be completed and submitted to the director along with all of
the following:
  (1) Copies of all articles, bylaws, agreements and other
documents or instruments describing the rights and obligations of
employers, employees and beneficiaries with respect to the
multiple employer welfare arrangement.
  (2) A copy of the trust agreement of the multiple employer
welfare arrangement.
  (3) Current financial statements of the multiple employer
welfare arrangement on the basis of statutory accounting
principles.
  (4) Proof of a bond for the purpose and in the form and amount
required by ORS 750.318.
  (5) A statement showing in full detail the plan for offering
health care benefits through the multiple employer welfare
arrangement. The plan must show that the association or group of
employers and the trust meet the requirements of ORS 750.307 and
750.309 and must show the procedure established for handling
claims for benefits in the event of dissolution of the multiple
employer welfare arrangement.
  (6) Copies of all contracts or other instruments proposed to be
made, offered or sold through the multiple employer welfare
arrangement to its member employers, together with a copy of its
plan description and the proposed printed matter to be used in
the solicitation of member employers.
  (7) Evidence that the multiple employer welfare arrangement has
applications from   { - five - }   { + two + } or more employers
meeting the requirements of ORS 750.307 and will provide similar
benefits for
  { - 200 - }   { + 50 + } or more participating employees.
  (8) Proof of adequate reserves according to the requirements of
ORS 750.315.
  (9) Proof of deposit with the Department of Consumer and
Business Services of the initial amount required under ORS
750.309 (4) as a guarantee of the due execution of the trust
obligation.
  SECTION 2. ORS 750.307 is amended to read:
  750.307. A trust carrying out a multiple employer welfare
arrangement must be established and maintained by an association
or group of employers meeting the following requirements:
  (1) The association or group must be composed of   { - five - }
 { + two + } or more employers that are in the same  { + or
similar + } trade or industry, including employers in closely
related businesses that provide support, services or supplies
primarily to that trade or industry.
    { - (2) The association or group must be engaged in
substantive activity for its members other than sponsorship of an
employee welfare benefit plan. - }
    { - (3) - }   { + (2) + } At the time of application for a
certificate of multiple employer welfare arrangement, the
association or group must have applications for participation in
the multiple employer welfare arrangement from   { - five - }
 { + two + } or more employers and show that it will provide
similar benefits for   { - 200 - }   { + 50 + } or more
participating employees.
    { - (4) - }   { + (3) + } The association or group must have
been in existence as an association or group described in
subsection (1) of this section for a period of not less than
 { - two years - }   { + one year + } prior to the date of
application for the certificate of multiple employer welfare
arrangement.
    { - (5) - }   { + (4) + } The association or group must
establish and maintain an employee welfare benefit plan through
the multiple employer welfare arrangement, and the plan must be
controlled and sponsored directly by participating employers.
    { - (6) - }   { + (5) + } The association or group must show
that the annual gross contributions of the employee welfare
benefit plan will be not less than   { - $50,000 - }
 { + $___ + } for a plan that provides only vision benefits,
 { - $175,000 - }   { + $___ + } for a plan that provides only
dental benefits, and   { - $450,000 - }   { + $___ + } for any
other plan.
  SECTION 3.  { + The amendments to ORS 750.305 and 750.307 by
sections 1 and 2 of this 2001 Act apply to applications for
certificates of multiple employer welfare arrangement submitted
to the Director of the Department of Consumer and Business
Services on or after the effective date of this 2001 Act. + }
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