Chapter 640 Oregon Laws 2003

AN ACT

HB 2172

Relating to self-insurance programs managed by Public Employees’ Benefit Board; amending ORS 243.105, 243.145, 243.167, 243.285 and 292.051.

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

SECTION 1. ORS 243.105 is amended to read:

243.105. As used in ORS 243.105 to 243.285, unless the context requires otherwise:

(1) “Benefit plan” includes, but is not limited to[,]:

(a) Contracts for insurance or other [benefit based on life; supplemental medical, supplemental dental, optical, accidental death or disability insurance; group medical, surgical, hospital or any other remedial] benefits, including medical, dental, vision, life, disability and other health care recognized by state law[;], and related services and supplies[. “Benefit plan” includes];

(b) Comparable benefits for employees who rely on spiritual means of healing; and

(c) Self-insurance programs managed by the Public Employees’ Benefit Board.

(2) “Board” means the Public Employees’ Benefit Board.

(3) “Carrier” means an insurance company or health care service contractor holding a valid certificate of authority from the Director of the Department of Consumer and Business Services, or two or more companies or contractors acting together pursuant to a joint venture, partnership or other joint means of operation, or a board-approved guarantor of benefit plan coverage and compensation.

(4)(a) “Eligible employee” means an officer or employee of a state agency who elects to participate in one of the group benefit plans described in ORS 243.135. The term includes state officers and employees in the exempt, unclassified and classified service, and state officers and employees, whether or not retired, who:

(A) Are receiving a service or disability retirement allowance under the Public Employees Retirement System or are receiving a service or disability retirement allowance or pension under any other retirement or disability benefit plan or system offered by the State of Oregon for its officers and employees;

(B) Are eligible to receive a service retirement allowance under the Public Employees Retirement System and have reached earliest retirement age under ORS chapter 238; or

(C) Are eligible to receive a service retirement allowance or pension under another retirement benefit plan or system offered by the State of Oregon and have attained earliest retirement age under the plan or system.

(b) “Eligible employee” does not include individuals:

(A) Engaged as independent contractors;

(B) Whose periods of employment in emergency work are on an intermittent or irregular basis;

(C) Who are employed on less than half-time basis unless the individuals are employed in positions classified as job-sharing positions or unless the individuals are defined as eligible under rules of the board;

(D) Appointed under ORS 240.309;

(E) Provided sheltered employment or made-work by the state in an employment or industries program maintained for the benefit of such individuals; or

(F) Provided student health care services in conjunction with their enrollment as students at the state institutions of higher education.

(5) “Family member” means an eligible employee’s spouse and any unmarried child or stepchild within age limits and other conditions imposed by the board with regard to unmarried children or stepchildren.

(6) “Payroll disbursing officer” means the officer or official authorized to disburse moneys in payment of salaries and wages of employees of a state agency.

(7) “Premium” means the monthly or other periodic charge for a benefit plan.

(8) “State agency” means every state officer, board, commission, department or other activity of state government.

SECTION 2. ORS 243.145 is amended to read:

243.145. (1) The Public Employees’ Benefit Board shall have authority to employ whatever means are reasonably necessary to carry out the purposes of ORS 243.105 to 243.285 and 292.051. Such authority shall include but is not limited to authority to self-insure and to seek clarification, amendment, modification, suspension or termination of any agreement or contract that in the board’s judgment requires such action.

(2) Upon providing specific notice in writing to the carrier, the affected employee organization or organizations, the Oregon Department of Administrative Services and affected, eligible employees, and after affording opportunity for a public hearing upon the issues that may be involved, the board may enter an order withdrawing approval of any benefit plan. Thirty days after entry of the order, the board shall terminate all withholding authorizations of eligible employees and terminate all board-approved participation in the plan.

(3) The board by order may terminate the participation of any state agency if within three months the state agency fails to perform any action required by ORS 243.105 to 243.285 and 292.051 or by board rule.

SECTION 3. ORS 243.167 is amended to read:

243.167. (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 and self-insure. 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 4. ORS 243.285 is amended to read:

243.285. (1) Upon receipt of the request in writing of an eligible employee so to do, the payroll disbursing officer authorized to disburse funds in payment of the salary or wages of the eligible employee may deduct from the salary or wages of the employee an amount of money indicated in [such] the request for payment of the applicable amount set forth in [contracts made] benefit plans selected by the employee or [made] selected on the employee’s behalf for:

(a) Group health and related services and supplies, including such insurance for family members of the eligible employee.

(b) Group life insurance, including life insurance for family members of the eligible employee.

(c) Group dental and related services and supplies, or any other remedial care recognized by state law and related services and supplies, recognized under state law, including such insurance for family members of the eligible employee.

(d) Group indemnity insurance for accidental death and dismemberment and for loss of income due to accident, sickness or other disability, including such insurance for family members of the eligible employee.

(e) Other [benefit plans] benefits, including self-insurance programs, that are approved and provided by the Public Employees’ Benefit Board.

(2) Moneys deducted [pursuant to] under subsection (1) of this section shall be paid over promptly:

(a) To the carriers or persons responsible for payment of premiums to carriers, in accordance with the terms of the contracts made by the eligible employees or on their behalf; or

(b) With respect to self-insurance benefits, in accordance with rules, procedures and directions of the Public Employees’ Benefit Board.

SECTION 5. ORS 292.051 is amended to read:

292.051. (1) Except as authority over contracts for health benefit plans described in ORS 243.135 is vested in the Public Employees’ Benefit Board, upon receipt of the request in writing of an officer or employee so to do, the state official authorized to disburse funds in payment of the salary or wages of the officer or employee may deduct from the salary or wages of the officer or employee an amount of money indicated in the request for payment of the applicable amount set forth in [contracts made] benefit plans selected by the officers or employees or in their behalf for:

(a) Group life insurance, including life insurance for dependents of officers or employees.

(b) Group dental and related services and supplies, or any other remedial care recognized by state law and related services and supplies, other than medical, surgical or hospital care, recognized under state law, including such insurance for dependents of state officers or employees.

(c) Group indemnity insurance for accidental death and dismemberment and for loss of income due to accident, sickness or other disability, including such insurance for dependents of state officers or employees.

(d) Automobile casualty insurance under a monthly payroll deduction program endorsed or offered by an employee organization representing 500 or more state employees. Membership in the employee organization [shall not be] is not a requirement for participation in this program.

(e) Legal insurance under a monthly payroll deduction program endorsed or offered by an employee organization representing 500 or more state employees.

(f) Self-insurance programs that are approved and provided by the Public Employees’ Benefit Board.

(2) The Oregon Department of Administrative Services may establish and collect a fee to cover costs of administering this section.

(3) No state official authorized to disburse funds in payment of salaries or wages is required to make deductions as authorized by subsection (1) of this section for more than one [contract] benefit plan of the type referred to in each of the paragraphs in subsection (1) of this section per eligible employee.

(4) Moneys deducted [pursuant to] under subsection (1) of this section shall be paid over promptly:

(a) To the insurance companies, agencies or hospital associations, or persons responsible for payment of premiums to the companies, agencies or associations, in accordance with the terms of the contracts made by the officers or employees or in their behalf; or

(b) With respect to self-insurance benefits, in accordance with rules, procedures and directions of the Public Employees’ Benefit Board.

(5) As used in this section, “officer or employee” means all persons who receive salaries or wages disbursed by any state official.

Approved by the Governor August 12, 2003

Filed in the office of Secretary of State August 13, 2003

Effective date January 1, 2004

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