Text: HF02273 Text: HF02275 Text: HF02200 - HF02299 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. Section 296.7, subsection 1, Code 2003, is
1 2 amended to read as follows:
1 3 1. A school district or community college corporation may
1 4 contract indebtedness and issue general obligation bonds or
1 5 enter into insurance agreements obligating the school district
1 6 or corporation to make payments beyond its current budget year
1 7 for one or more of the following mechanisms to protect the
1 8 school district or corporation from tort liability, loss of
1 9 property, environmental hazards, or any other risk associated
1 10 with the operation of the school district or corporation:
1 11 a. To procure or provide for a policy of insurance.
1 12 b. To provide a self-insurance program.
1 13 c. To establish and maintain a local government risk pool.
1 14 d. To cover the cost of health insurance premium rate
1 15 increases pursuant to subsection 3, paragraph "b".
1 16 However, this subsection does not apply to an insurance
1 17 program described in subsection 3, paragraph "a".
1 18 Sec. 2. Section 296.7, subsection 3, Code 2003, is amended
1 19 to read as follows:
1 20 3. a. A school district, providing an insurance program
1 21 as described in subsection 2, shall not contract indebtedness
1 22 and issue general obligation bonds or enter into insurance
1 23 agreements obligating the school district to make payments
1 24 beyond its current budget year for that employee benefit plan.
1 25 A school district may, however, apply to the school budget
1 26 review committee for relief if necessitated by the expenses in
1 27 the school district's insurance program as described in
1 28 subsection 2.
1 29 b. Notwithstanding paragraph "a", a school district may
1 30 contract indebtedness and issue general obligation bonds
1 31 pursuant to subsection 1 for health insurance premium rate
1 32 increases that exceed the school district's three-year moving
1 33 average rate of premium increase. For purposes of this
1 34 paragraph, "health insurance" means employee benefit plans
1 35 providing hospital and surgical, medical expense, major
2 1 medical, dental, and prescription drug benefits. Bonds issued
2 2 pursuant to this paragraph shall be issued for a three-year
2 3 period, in an amount sufficient to pay the cost of an annually
2 4 redetermined three-year moving average rate of premium
2 5 increase.
2 6 Sec. 3. Section 296.7, subsection 4, paragraph b, Code
2 7 2003, is amended to read as follows:
2 8 b. Premium on an insurance policy, including a stop loss
2 9 or reinsurance policy, except as limited by subsection 3,
2 10 paragraph "a".
2 11 Sec. 4. Section 296.7, subsection 6, Code 2003, is amended
2 12 to read as follows:
2 13 6. Notwithstanding the other provisions of this section or
2 14 any other statute, the tax levy authorized by this section
2 15 shall not be used to pay the costs of employee benefits,
2 16 including, but not limited to costs for hospital and surgical,
2 17 medical expense, major medical, dental, prescription drug,
2 18 disability, or life insurance benefits. This subsection shall
2 19 not apply, however, to levies for the cost of health insurance
2 20 rate increases that exceed the school district's three-year
2 21 moving average rate of premium increase pursuant to subsection
2 22 3, paragraph "b".
2 23 EXPLANATION
2 24 This bill provides that a school district may contract
2 25 indebtedness and issue general obligation bonds for health
2 26 insurance rate increases that exceed the school district's
2 27 three-year moving average rate of premium increase. The bill
2 28 provides that "health insurance" refers to employee benefit
2 29 plans providing hospital and surgical, medical expense, major
2 30 medical, dental, and prescription drug benefits. The bill
2 31 provides that bonds may be issued for a three-year period in
2 32 an amount sufficient to pay the cost of an annually
2 33 redetermined three-year moving average rate of premium
2 34 increase. The bill provides for this authority,
2 35 notwithstanding Code section 296.7, subsections 3 and 6, which
3 1 currently prohibit contracting indebtedness and issuing
3 2 general obligation bonds in connection with hospital and
3 3 surgical, medical expense, major medical, dental, prescription
3 4 drug, disability, or life insurance costs or benefits. A tax
3 5 levy for premium increases as provided in the bill would be
3 6 included in the district management levy under Code section
3 7 298.4.
3 8 LSB 5964HH 80
3 9 rn/pj/5
Text: HF02273 Text: HF02275 Text: HF02200 - HF02299 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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