As Introduced 1
123rd General Assembly 4
Regular Session H. B. No. 379 5
1999-2000 6
REPRESENTATIVES PETERSON-ALLEN-BARRETT-BRITTON-DISTEL- 8
FLANNERY-JACOBSON-NETZLEY-SCHULER-TERWILLEGER- TRAKAS-WILLAMOWSKI 10
_________________________________________________________________ 11
A B I L L
To amend section 505.60 of the Revised Code to 13
provide townships with the option of offering 14
health benefits, or cash payments in lieu of
these benefits, to their officers and employees 15
through a "cafeteria plan" meeting the 16
requirements of the Internal Revenue Code and to
allow townships to authorize the making of cash 17
payments to their officers or employees in lieu
of offered insurance benefits. 18
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 20
Section 1. That section 505.60 of the Revised Code be 22
amended to read as follows: 23
Sec. 505.60. (A) The board of township trustees of any 32
township may procure and pay all or any part of the cost of 33
insurance policies that may provide benefits for hospitalization, 34
surgical care, major medical care, disability, dental care, eye 35
care, medical care, hearing aids, prescription drugs, or sickness 36
and accident insurance, or a combination of any of the foregoing 37
types of insurance for township officers and employees. If the 38
board so procures any such insurance policies, the board shall 39
provide uniform coverage under these policies for township 40
officers and full-time township employees and their immediate 41
dependents and may provide coverage under these policies for 42
part-time township employees and their immediate dependents, from 43
the funds or budgets from which the officers or employees are 44
2
compensated for services, such policies to be issued by an 46
insurance company duly authorized to do business in this state. 47
Any township officer or employee may refuse to accept the 48
insurance coverage without affecting the availability of such 49
insurance coverage to other township officers and employees. 50
The board may also contract for group health care services 53
with health insuring corporations holding certificates of 54
authority under Chapter 1751. of the Revised Code for township 56
officers and employees. If the board so contracts, it shall 57
provide uniform coverage under any such contracts for township 58
officers and full-time township employees and their immediate 59
dependents and may provide coverage under such contracts for 60
part-time township employees and their immediate dependents, 61
provided that each officer and employee so covered is permitted 62
to:
(1) Choose between a plan offered by an insurance company 64
and a plan offered by a health insuring corporation, and provided 65
further that the officer of employee pays any amount by which the 68
cost of the plan chosen exceeds the cost of the plan offered by 69
the board under this section; 70
(2) Change the choice made under division (A) of this 73
section at a time each year as determined in advance by the 74
board.
An addition of a class or change of definition of coverage 76
to the plan offered by the board may be made at any time that it 77
is determined by the board to be in the best interest of the 78
township. If the total cost to the township of the revised plan 79
for any trustee's coverage does not exceed that cost under the 80
plan in effect during the prior policy year, the revision of the 81
plan does not cause an increase in that trustee's compensation. 82
The board may provide the benefits authorized under this 84
section, without competitive bidding, by contributing to a health 85
and welfare trust fund administered through or in conjunction 86
with a collective bargaining representative of the township 87
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employees. 88
The board may also provide the benefits described in this 90
section through an individual self-insurance program or a joint 91
self-insurance program as provided in section 9.833 of the 92
Revised Code. 93
(B) A board of township trustees may procure and pay all 95
or any part of the cost of group life insurance to insure the 96
lives of officers and full-time employees of the township. The 97
amount of group life insurance coverage provided by the board to 98
insure the lives of officers of the township shall not exceed 99
fifty thousand dollars per officer. 100
(C) If a board of township trustees fails to pay one or 102
more premiums for a policy, contract, or plan of insurance or 103
health care services authorized by division (A) of this section 104
and the failure causes a lapse, cancellation, or other 105
termination of coverage under the policy, contract, or plan, it 106
may reimburse a township officer or employee for, or pay on 107
behalf of the officer or employee, any expenses incurred that 108
would have been covered under the policy, contract, or plan. 109
(D) WHEN A BOARD OF TOWNSHIP TRUSTEES OFFERS HEALTH 111
BENEFITS AUTHORIZED UNDER THIS SECTION TO AN OFFICER OR EMPLOYEE 112
OF THE TOWNSHIP, THE BOARD MAY OFFER THE BENEFITS THROUGH A 113
CAFETERIA PLAN MEETING THE REQUIREMENTS OF SECTION 125 OF THE 114
"INTERNAL REVENUE CODE OF 1986," 100 STAT. 2085, 26 U.S.C.A. 125, 118
AS AMENDED, AND AS PART OF THAT PLAN, MAY OFFER THE OFFICER OR 119
EMPLOYEE THE OPTION OF RECEIVING A CASH PAYMENT IN ANY FORM
PERMISSIBLE UNDER SUCH CAFETERIA PLANS. A CASH PAYMENT MADE TO 120
AN OFFICER OR EMPLOYEE UNDER THIS DIVISION SHALL NOT EXCEED 121
TWENTY-FIVE PER CENT OF THE COST OF PREMIUMS OR PAYMENTS THAT 122
OTHERWISE WOULD BE PAID BY THE BOARD FOR BENEFITS FOR THE OFFICER 123
OR EMPLOYEE UNDER A POLICY OR PLAN. 124
(E) THE BOARD OF TOWNSHIP TRUSTEES MAY ESTABLISH A POLICY 126
AUTHORIZING ANY TOWNSHIP APPOINTING AUTHORITY TO MAKE A CASH 127
PAYMENT TO ANY OFFICER OR EMPLOYEE IN LIEU OF PROVIDING A BENEFIT 128
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AUTHORIZED UNDER THIS SECTION IF THE OFFICER OR EMPLOYEE ELECTS 129
TO TAKE THE CASH PAYMENT INSTEAD OF THE OFFERED BENEFIT. A CASH 130
PAYMENT MADE TO AN OFFICER OR EMPLOYEE UNDER THIS DIVISION SHALL 131
NOT EXCEED TWENTY-FIVE PER CENT OF THE COST OF PREMIUMS OR 132
PAYMENTS THAT OTHERWISE WOULD BE PAID BY THE BOARD FOR BENEFITS 133
FOR THE OFFICER OR EMPLOYEE UNDER AN OFFERED POLICY OR PLAN. 134
(F) NO CASH PAYMENT IN LIEU OF A HEALTH BENEFIT SHALL BE 136
MADE TO A TOWNSHIP OFFICER OR EMPLOYEE UNDER DIVISION (D) OR (E) 138
OF THIS SECTION UNLESS THE OFFICER OR EMPLOYEE SIGNS A STATEMENT 139
AFFIRMING THAT THE OFFICER OR EMPLOYEE IS COVERED UNDER ANOTHER 140
HEALTH INSURANCE OR HEALTH CARE POLICY, CONTRACT, OR PLAN, AND 141
SETTING FORTH THE NAME OF THE EMPLOYER, IF ANY, THAT SPONSORS THE 142
COVERAGE, THE NAME OF THE CARRIER THAT PROVIDES THE COVERAGE, AND 143
IDENTIFYING NUMBER OF THE POLICY, CONTRACT, OR PLAN. 144
(G) As used in this section, "part-time township employee" 146
means a township employee who is hired with the expectation that 147
the employee will work not more than one thousand five hundred 148
hours in any year. 149
Section 2. That existing section 505.60 of the Revised 151
Code is hereby repealed. 152