S.F. _____ Section 1. NEW SECTION . 8A.454A Health insurance plans —— 1 benefits and modifications. 2 Benefits and modifications to benefits under a health 3 insurance plan established for state employees pursuant to 4 chapter 509A shall be determined by a state employee 5 organization through the collective bargaining process. 6 PART 5 7 IOWA HEALTH CARE COVERAGE PARTNERSHIP PROGRAM 8 Sec. 2. NEW SECTION . 8A.471 Definitions. 9 As used in this part, unless the context otherwise requires: 10 1. “Nonprofit employer” means a nonprofit corporation that 11 is either of the following and does not include a nonstate 12 public employer: 13 a. A corporation subject to chapter 504. 14 b. A corporation which qualifies under 26 U.S.C. § 15 501(c)(3). 16 2. “Nonstate public employee” means any employee or elected 17 official of a nonstate public employer. 18 3. “Nonstate public employer” means a political subdivision 19 of the state, including a quasi-public agency. 20 4. “Political subdivision of the state” means a political 21 subdivision of the state or its offices or units, including but 22 not limited to a county, city, community college, or school 23 district. 24 5. “State health or medical group insurance plan” or “state 25 plan” means a health or medical group insurance plan for 26 employees of the state. 27 Sec. 3. NEW SECTION . 8A.472 Nonstate public employees —— 28 coverage. 29 1. Nonstate public employees may obtain coverage under the 30 state plan in accordance with this section. 31 2. A nonstate public employer may submit an application 32 to the department for coverage under the state plan of all 33 of such employer’s nonstate public employees. If a nonstate 34 public employer submits such an application for coverage, the 35 -1- LSB 2140SC (4) 85 av/rj 1/ 6

S.F. _____ department shall provide such coverage no later than the first 1 day of the third calendar month following such application. 2 3. Notwithstanding any other provisions of state law, 3 initial participation in the state plan shall be a permissive 4 subject of collective bargaining and shall be subject to 5 binding arbitration only if the employee organization and 6 the nonstate public employer mutually agree to bargain over 7 such initial participation. Such mutual agreement shall be 8 in writing and signed by the authorized representatives of 9 the employee organization and the nonstate public employer. 10 Continuation in the state plan, after initial participation, 11 shall be a mandatory subject of bargaining, and shall be 12 subject to binding arbitration in accordance with the same 13 procedures and standards that apply to any other mandatory 14 subject of bargaining pursuant to state law. 15 4. Premium rates for nonstate public employers shall be the 16 total premium rate paid by the state inclusive of any premiums 17 paid by state employees for the particular state health care 18 product offered by the state plan. 19 Sec. 4. NEW SECTION . 8A.473 Employees of nonprofit 20 employers —— coverage. 21 1. Employees of nonprofit employers may obtain coverage 22 under the state plan in accordance with this section. 23 2. A nonprofit employer may submit an application to the 24 department for coverage under the state plan of all of such 25 employer’s employees. If a nonprofit employer submits such an 26 application for coverage, the department shall provide such 27 coverage no later than the first day of the third calendar 28 month following such application. However, the department 29 shall not approve an application for coverage under the 30 state plan if the department determines that approval of such 31 coverage would cause the state plan to be subject to the 32 requirements of the federal Employee Retirement Income Security 33 Act of 1974, as codified at 29 U.S.C. § 1001 et seq. If the 34 department determines that the state plan is compliant with 35 -2- LSB 2140SC (4) 85 av/rj 2/ 6

S.F. _____ such federal requirements, the department shall resume approval 1 of applications for coverage under the state plan as provided 2 in this section. 3 3. Premium rates for nonprofit employers shall be the total 4 premium rate paid by the state inclusive of any premiums paid 5 by state employees for the particular state health care product 6 offered by the state plan. 7 Sec. 5. NEW SECTION . 8A.474 Premium payments —— 8 administrative fees. 9 1. A nonstate public employer or nonprofit employer 10 participating in the state plan shall pay the monthly amount 11 determined by the department, for coverage of its employees 12 or elected officials as appropriate under the state plan. A 13 nonstate public employer or nonprofit employer may require each 14 covered employee or elected official to contribute a portion 15 of the cost of such coverage under the state plan, subject 16 to any collective bargaining obligation applicable to such 17 employer. If any payment due by a nonstate public employer or 18 nonprofit employer under this section is not timely paid, after 19 the due date interest shall be added to such payment at the 20 prevailing rate of interest, as determined by the department. 21 Such interest shall be paid by the nonstate public employer or 22 nonprofit employer. 23 2. The department shall charge a nonstate public employer 24 or nonprofit employer participating in the state plan an 25 administrative fee calculated on a per-month basis per covered 26 employee or elected official. 27 3. Payments made pursuant to this section shall be deposited 28 in the Iowa health care coverage partnership program trust fund 29 created in section 8A.475. Moneys deposited in the Iowa health 30 care coverage partnership program trust fund shall be expended 31 for payment of insurance premiums and administrative fees for 32 employees and elected officials covered under the state plan. 33 4. If a nonstate public employer fails to make premium 34 payments as required under this section, the department may 35 -3- LSB 2140SC (4) 85 av/rj 3/ 6

S.F. _____ direct the treasurer of state, or any other office of the state 1 that is the custodian of any moneys made available by reason of 2 any grant, allocation, or appropriation by the state or state 3 agencies payable to the nonstate public employer at any time 4 subsequent to the failure of the nonstate public employer, to 5 pay such premiums and interest that are due and unpaid and 6 to withhold payment of moneys payable to the nonstate public 7 employer until the amount of the premiums and interest then 8 due and unpaid by the nonstate public employer has been paid 9 to the state or until the treasurer of state determines that 10 arrangements, satisfactory to the treasurer of state, have been 11 made for the payment of such premiums and interest. However, 12 such moneys shall not be withheld from a nonstate public 13 employer if such withholding will adversely affect the receipt 14 of any federal grant or aid in connection with such moneys. 15 5. If a nonprofit employer fails to make premium payments, 16 the department may terminate the nonprofit employer’s employee 17 participation in the state plan and request the attorney 18 general to recover any premiums and interest due and unpaid. 19 Sec. 6. NEW SECTION . 8A.475 Iowa health care coverage 20 partnership program trust fund. 21 1. A separate, special Iowa health care coverage 22 partnership program trust fund is created in the state treasury 23 under the control of the department. The trust fund shall 24 consist of all moneys deposited in the fund and other assets 25 that must be held in trust and shall be used for the exclusive 26 benefit of employees and elected officials covered under the 27 state plan as provided in section 8A.474. 28 2. The director is the trustee of the fund and shall 29 administer the fund. Any loss to the fund shall be charged 30 against the trust and the director shall not be personally 31 liable for such loss. 32 3. Moneys in the fund are not subject to section 8.33. 33 Notwithstanding section 12C.7, subsection 2, interest or 34 earnings on moneys in the fund shall be credited to the fund. 35 -4- LSB 2140SC (4) 85 av/rj 4/ 6

S.F. _____ Sec. 7. NEW SECTION . 8A.476 Rules. 1 The department, by rule, shall develop procedures for the 2 implementation and administration of the provisions contained 3 in this part 5. 4 Sec. 8. EFFECTIVE DATE. This Act takes effect January 1, 5 2014. 6 EXPLANATION 7 This bill relates to health care coverage under the state 8 health insurance plan. The bill provides that benefits 9 and modifications to benefits under a health insurance plan 10 established for state employees pursuant to Code chapter 509A 11 shall be determined by a state employee organization through 12 the collective bargaining process. 13 The bill allows employees and elected officials of a 14 nonstate public employer and employees of a nonprofit employer 15 to apply for coverage and enroll in a state health or medical 16 group insurance plan provided to state employees by the 17 department of administrative services (DAS). 18 Premium payments for coverage received through a state plan 19 must be the same as for state employees, including any premiums 20 paid by state employees. 21 Each employer who participates in a state health or medical 22 group insurance plan must pay monthly premium amounts for 23 coverage to DAS, plus administrative fees calculated on a 24 per-month basis per employee or elected official. An employer 25 may require each covered employee or elected official to 26 contribute a portion of the cost of such coverage under the 27 state plan, subject to any collective bargaining obligations. 28 The payments are to be deposited in the Iowa health care 29 coverage partnership program trust fund created in Code section 30 8A.475 and expended for coverage being provided to the covered 31 employees or elected officials. 32 If monthly premium payments are not made, DAS may charge 33 interest on the unpaid balance. If a nonstate public employer 34 fails to make premium payments, DAS may direct the treasurer 35 -5- LSB 2140SC (4) 85 av/rj 5/ 6

S.F. _____ of state to withhold grants, allocations, or appropriations 1 payable to the nonstate public employer, until the premium 2 payments are made. If a nonprofit employer fails to make 3 premium payments, DAS may terminate participation of that 4 employer’s employees in the state plan and request the attorney 5 general to recover the unpaid premiums and interest. 6 For purposes of the program, a “nonstate public employer” is 7 a political subdivision of the state, including but not limited 8 to counties, cities, community colleges, quasi-public agencies, 9 and school districts. A “nonprofit employer” is a corporation 10 organized or recognized as a nonprofit corporation under state 11 or federal law. 12 The department of administrative services shall, by rule, 13 adopt procedures to implement and administer the provisions of 14 the bill. 15 The bill may cause a state agency or political subdivision to 16 offer for sale to the public a service or product that competes 17 with private enterprise. 18 The bill takes effect January 1, 2014. 19 -6- LSB 2140SC (4) 85 av/rj 6/ 6