House File 164
HOUSE FILE
BY FREVERT
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to utilization of the district management levy to
2 pay the cost of employee health insurance benefits.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
4 TLSB 1435YH 80
5 rn/cl/14
PAG LIN
1 1 Section 1. Section 296.7, subsection 3, Code 2003, is
1 2 amended to read as follows:
1 3 3. A Except as provided in section 298.4, a school
1 4 district, providing an insurance program as described in
1 5 subsection 2, shall not contract indebtedness and issue
1 6 general obligation bonds or enter into insurance agreements
1 7 obligating the school district to make payments beyond its
1 8 current budget year for that employee benefit plan. A school
1 9 district may, however, apply to the school budget review
1 10 committee for relief if necessitated by the expenses in the
1 11 school district's insurance program as described in subsection
1 12 2.
1 13 Sec. 2. Section 298.4, Code 2003, is amended by adding the
1 14 following new subsection:
1 15 NEW SUBSECTION. 6. To pay the cost of employee health
1 16 benefits. For the purposes of this subsection, employee
1 17 health benefits shall refer to costs for hospital and
1 18 surgical, medical expense, major medical, dental, or
1 19 prescription drug benefits. In authorizing a levy pursuant to
1 20 this subsection, the board may, and upon the written request
1 21 of not less than one hundred eligible electors or thirty
1 22 percent of the number of eligible electors voting at the last
1 23 regular school election, whichever is greater, shall, direct
1 24 the county commissioner of elections to provide for submitting
1 25 the proposition of utilizing the management levy for employee
1 26 health benefits in the notice of the regular school election.
1 27 The proposition is adopted if a majority of those voting on
1 28 the proposition at the election approves it. The district
1 29 management levy may, in the board's discretion, be utilized to
1 30 fund all, or a portion, of the district's employee health
1 31 benefit costs. Authorization to levy pursuant to this
1 32 subsection shall be in the board's discretion and shall not be
1 33 subject to or imposed by arbitrator decision.
1 34 EXPLANATION
1 35 This bill provides that the district management levy
2 1 authorized in Code section 298.4 may be utilized by a school
2 2 district to pay the cost of school district employee health
2 3 benefits. The bill provides that employee health benefits
2 4 include the costs for hospital and surgical, medical expense,
2 5 major medical, dental, or prescription drug benefits. These
2 6 benefits were previously specifically excluded from the list
2 7 of insurance benefits for which a school district is
2 8 authorized to contract indebtedness and issue general
2 9 obligation bonds pursuant to Code section 296.7.
2 10 The bill provides that the school district board of
2 11 directors may, and upon the written request of not less than
2 12 100 eligible electors or 30 percent of the number of eligible
2 13 electors voting at the last regular school election, whichever
2 14 is greater, shall, submit the proposition of utilizing the
2 15 management levy for employee health benefits in the notice of
2 16 the regular school election. The proposition would be subject
2 17 to a majority vote. The bill provides that authorization to
2 18 levy for employee health benefits shall be in the board's
2 19 discretion, and shall not be subject to or imposed by the
2 20 decision of an arbitrator.
2 21 LSB 1435YH 80
2 22 rn/cl/14.1