As Reported by House Local Governments and Townships Committee    1            

123rd General Assembly                                             4            

   Regular Session                             Sub. H. B. No. 379  5            

      1999-2000                                                    6            


     REPRESENTATIVES PETERSON-ALLEN-BARRETT-BRITTON-DISTEL-        8            

      FLANNERY-JACOBSON-NETZLEY-SCHULER-TERWILLEGER-TRAKAS-        9            

       WILLAMOWSKI-O'BRIEN-CAREY-HOOPS-VERICH-YOUNG-EVANS          10           


_________________________________________________________________   11           

                          A   B I L L                                           

             To enact section 505.603 of the Revised Code to       13           

                provide townships with the ability to offer cash   14           

                payments, in lieu of otherwise offered health                   

                benefits or life insurance benefits, to their      15           

                officers and employees through a "cafeteria plan"  16           

                that meets Internal Revenue Code requirements.                  




BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:        18           

      Section 1.  That section 505.603 of the Revised Code be      20           

enacted to read as follows:                                        21           

      Sec. 505.603.  IN ADDITION TO OR IN LIEU OF PROVIDING        23           

BENEFITS TO TOWNSHIP OFFICERS AND EMPLOYEES UNDER SECTIONS         24           

505.60, 505.601, OR 505.602 OF THE REVISED CODE, A BOARD OF        25           

TOWNSHIP TRUSTEES MAY OFFER BENEFITS TO OFFICERS AND EMPLOYEES     26           

THROUGH A CAFETERIA PLAN THAT MEETS THE REQUIREMENTS OF SECTION    27           

125 OF THE "INTERNAL REVENUE CODE OF 1986," 100 STAT. 2085, 26     29           

U.S.C.A. 125, AS AMENDED, AFTER FIRST ADOPTING A POLICY            31           

AUTHORIZING AN OFFICER OR EMPLOYEE TO RECEIVE A CASH PAYMENT IN    32           

LIEU OF A BENEFIT OTHERWISE OFFERED TO TOWNSHIP OFFICERS OR                     

EMPLOYEES UNDER ANY OF THOSE SECTIONS, BUT ONLY IF THE CASH        33           

PAYMENT DOES NOT EXCEED TWENTY-FIVE PER CENT OF THE COST OF        34           

PREMIUMS OR PAYMENTS THAT OTHERWISE WOULD BE PAID BY THE BOARD     35           

FOR BENEFITS FOR THE OFFICER OR EMPLOYEE UNDER AN OFFERED POLICY,  36           

CONTRACT, OR PLAN.  NO CASH PAYMENT IN LIEU OF A BENEFIT SHALL BE  37           

MADE PURSUANT TO THIS SECTION UNLESS THE OFFICER OR EMPLOYEE       38           

                                                          2      


                                                                 
SIGNS A STATEMENT AFFIRMING THAT THE OFFICER OR EMPLOYEE IS        39           

COVERED UNDER ANOTHER HEALTH INSURANCE OR HEALTH CARE POLICY,      40           

CONTRACT, OR PLAN IN THE CASE OF A HEALTH BENEFIT, OR A LIFE       41           

INSURANCE POLICY IN THE CASE OF A LIFE INSURANCE BENEFIT, AND      42           

SETTING FORTH THE NAME OF THE EMPLOYER, IF ANY, THAT SPONSORS THE  43           

COVERAGE, THE NAME OF THE CARRIER THAT PROVIDES THE COVERAGE, AND  44           

AN IDENTIFYING NUMBER OF THE APPLICABLE POLICY, CONTRACT, OR       45           

PLAN.