House File 2001 - Introduced HOUSE FILE 2001 BY FREVERT , WENDT , WINCKLER , MASCHER , TAYLOR , MURPHY , D. OLSON , and BUKTA A BILL FOR An Act relating to utilization of the district management levy 1 to pay the cost of employee health insurance benefits. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5118HH (12) 83 ak/sc.1

H.F. 2001 Section 1. Section 296.7, subsection 3, Code 2009, is 1 amended to read as follows: 2 3. A Except as provided in section 298.4, a school district, 3 providing an insurance program as described in subsection 2, 4 shall not contract indebtedness and issue general obligation 5 bonds or enter into insurance agreements obligating the school 6 district to make payments beyond its current budget year for 7 that employee benefit plan. A school district may, however, 8 apply to the school budget review committee for relief if 9 necessitated by the expenses in the school district’s insurance 10 program as described in subsection 2. 11 Sec. 2. Section 298.4, Code 2009, is amended by adding the 12 following new subsection: 13 NEW SUBSECTION . 6. To pay the cost of employee health 14 benefits. For the purposes of this subsection, “employee 15 health benefits” means costs for hospital and surgical, medical 16 expense, major medical, dental, or prescription drug benefits. 17 In authorizing a levy pursuant to this subsection, the board 18 may, and upon the written request of not less than one hundred 19 eligible electors or thirty percent of the number of electors 20 voting at the last regular school election, whichever is 21 greater, shall, direct the county commissioner of elections to 22 submit the proposition of utilizing the management levy for 23 employee health benefits at the regular school election or at a 24 special election held on the second Tuesday in September of the 25 even-numbered year. The proposition is adopted if a majority 26 of those voting on the proposition at the election favors 27 approval of the proposition. The district management levy may, 28 in the board’s discretion, be utilized to fund all or a portion 29 of the district’s employee health benefit costs. Authorization 30 to levy pursuant to this subsection shall be in the board’s 31 discretion and shall not be subject to or imposed by arbitrator 32 decision. 33 EXPLANATION 34 This bill provides that the district management levy 35 -1- LSB 5118HH (12) 83 ak/sc.1 1/ 2

H.F. 2001 authorized in Code section 298.4 may be utilized by a school 1 district to pay the cost of school district employee health 2 benefits. The bill defines employee health benefits as 3 the costs for hospital and surgical, medical expense, major 4 medical, dental, or prescription drug benefits. These 5 benefits were previously specifically excluded from the list of 6 insurance benefits for which a school district is authorized 7 to contract indebtedness and issue general obligation bonds 8 pursuant to Code section 296.7. 9 The bill provides that the school district board of 10 directors may, and upon the written request of not less 11 than 100 eligible electors or 30 percent of the number of 12 electors voting at the last regular school election, whichever 13 is greater, shall, submit the proposition of utilizing the 14 management levy for employee health benefits at the regular 15 school election or at a special election held in September of 16 the even-numbered year. The proposition would be subject to a 17 majority vote of the electors voting on the proposition. The 18 bill provides that authorization to levy for employee health 19 benefits shall be in the board’s discretion and shall not be 20 subject to or imposed by the decision of an arbitrator. 21 -2- LSB 5118HH (12) 83 ak/sc.1 2/ 2