To amend section 505.60 of the Revised Code to provide townships with the option of offering health benefits, or cash payments in lieu of these benefits, to their officers and employees through a "cafeteria plan" meeting the requirements of the Internal Revenue Code and to allow townships to authorize the making of cash payments to their officers or employees in lieu of offered insurance benefits.

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

Sec. 505.60. (A) The board of township trustees of any township may procure and pay all or any part of the cost of insurance policies that may provide benefits for hospitalization, surgical care, major medical care, disability, dental care, eye care, medical care, hearing aids, prescription drugs, or sickness and accident insurance, or a combination of any of the foregoing types of insurance for township officers and employees. If the board so procures any such insurance policies, the board shall provide uniform coverage under these policies for township officers and full-time township employees and their immediate dependents and may provide coverage under these policies for part-time township employees and their immediate dependents, from the funds or budgets from which the officers or employees are compensated for services, such policies to be issued by an insurance company duly authorized to do business in this state. Any township officer or employee may refuse to accept the insurance coverage without affecting the availability of such insurance coverage to other township officers and employees.

The board may also contract for group health care services with health insuring corporations holding certificates of authority under Chapter 1751. of the Revised Code for township officers and employees. If the board so contracts, it shall provide uniform coverage under any such contracts for township officers and full-time township employees and their immediate dependents and may provide coverage under such contracts for part-time township employees and their immediate dependents, provided that each officer and employee so covered is permitted to:

(1) Choose between a plan offered by an insurance company and a plan offered by a health insuring corporation, and provided further that the officer of employee pays any amount by which the cost of the plan chosen exceeds the cost of the plan offered by the board under this section;

(2) Change the choice made under division (A) of this section at a time each year as determined in advance by the board.

An addition of a class or change of definition of coverage to the plan offered by the board may be made at any time that it is determined by the board to be in the best interest of the township. If the total cost to the township of the revised plan for any trustee's coverage does not exceed that cost under the plan in effect during the prior policy year, the revision of the plan does not cause an increase in that trustee's compensation.

The board may provide the benefits authorized under this section, without competitive bidding, by contributing to a health and welfare trust fund administered through or in conjunction with a collective bargaining representative of the township employees.

The board may also provide the benefits described in this section through an individual self-insurance program or a joint self-insurance program as provided in section 9.833 of the Revised Code.

(B) A board of township trustees may procure and pay all or any part of the cost of group life insurance to insure the lives of officers and full-time employees of the township. The amount of group life insurance coverage provided by the board to insure the lives of officers of the township shall not exceed fifty thousand dollars per officer.

(C) If a board of township trustees fails to pay one or more premiums for a policy, contract, or plan of insurance or health care services authorized by division (A) of this section and the failure causes a lapse, cancellation, or other termination of coverage under the policy, contract, or plan, it may reimburse a township officer or employee for, or pay on behalf of the officer or employee, any expenses incurred that would have been covered under the policy, contract, or plan.

(D) WHEN A BOARD OF TOWNSHIP TRUSTEES OFFERS HEALTH BENEFITS AUTHORIZED UNDER THIS SECTION TO AN OFFICER OR EMPLOYEE OF THE TOWNSHIP, THE BOARD MAY OFFER THE BENEFITS THROUGH A CAFETERIA PLAN MEETING THE REQUIREMENTS OF SECTION 125 OF THE "INTERNAL REVENUE CODE OF 1986," 100 STAT. 2085, 26 U.S.C.A. 125, AS AMENDED, AND AS PART OF THAT PLAN, MAY OFFER THE OFFICER OR EMPLOYEE THE OPTION OF RECEIVING A CASH PAYMENT IN ANY FORM PERMISSIBLE UNDER SUCH CAFETERIA PLANS. A CASH PAYMENT MADE TO AN OFFICER OR EMPLOYEE UNDER THIS DIVISION SHALL NOT EXCEED TWENTY-FIVE PER CENT OF THE COST OF PREMIUMS OR PAYMENTS THAT OTHERWISE WOULD BE PAID BY THE BOARD FOR BENEFITS FOR THE OFFICER OR EMPLOYEE UNDER A POLICY OR PLAN.

(E) THE BOARD OF TOWNSHIP TRUSTEES MAY ESTABLISH A POLICY AUTHORIZING ANY TOWNSHIP APPOINTING AUTHORITY TO MAKE A CASH PAYMENT TO ANY OFFICER OR EMPLOYEE IN LIEU OF PROVIDING A BENEFIT AUTHORIZED UNDER THIS SECTION IF THE OFFICER OR EMPLOYEE ELECTS TO TAKE THE CASH PAYMENT INSTEAD OF THE OFFERED BENEFIT. A CASH PAYMENT MADE TO AN OFFICER OR EMPLOYEE UNDER THIS DIVISION SHALL NOT EXCEED TWENTY-FIVE PER CENT OF THE COST OF PREMIUMS OR PAYMENTS THAT OTHERWISE WOULD BE PAID BY THE BOARD FOR BENEFITS FOR THE OFFICER OR EMPLOYEE UNDER AN OFFERED POLICY OR PLAN.

(F) NO CASH PAYMENT IN LIEU OF A HEALTH BENEFIT SHALL BE MADE TO A TOWNSHIP OFFICER OR EMPLOYEE UNDER DIVISION (D) OR (E) OF THIS SECTION UNLESS THE OFFICER OR EMPLOYEE SIGNS A STATEMENT AFFIRMING THAT THE OFFICER OR EMPLOYEE IS COVERED UNDER ANOTHER HEALTH INSURANCE OR HEALTH CARE POLICY, CONTRACT, OR PLAN, AND SETTING FORTH THE NAME OF THE EMPLOYER, IF ANY, THAT SPONSORS THE COVERAGE, THE NAME OF THE CARRIER THAT PROVIDES THE COVERAGE, AND IDENTIFYING NUMBER OF THE POLICY, CONTRACT, OR PLAN.

(G) As used in this section, "part-time township employee" means a township employee who is hired with the expectation that the employee will work not more than one thousand five hundred hours in any year.