S.F. 2102 Section 1. NEW SECTION . 8A.471 Definitions. 1 As used in this part, unless the context otherwise requires: 2 1. “Nonstate public employee” means an employee or elected 3 official of a public school district who is not part of a 4 bargaining unit guaranteed the right to negotiate the terms of 5 health insurance coverage under section 20.9. 6 2. “State health or medical group insurance plan” or “state 7 plan” means a health or medical group insurance plan for 8 employees of the state. 9 Sec. 2. NEW SECTION . 8A.472 Nonstate public employees —— 10 coverage. 11 1. Nonstate public employees may obtain coverage under the 12 state plan in accordance with this section. 13 2. A public school district may submit an application 14 to the department for coverage under the state plan of all 15 of the public school district’s nonstate public employees. 16 If a public school district submits such an application for 17 coverage, the department shall provide such coverage no later 18 than the first day of the third calendar month following such 19 application. 20 3. Premium rates for public school districts shall be the 21 total premium rate paid by the state inclusive of any premiums 22 paid by state employees for the particular state health care 23 product offered by the state plan. 24 Sec. 3. NEW SECTION . 8A.473 Premium payments —— 25 administrative fees. 26 1. A public school district participating in the state plan 27 shall pay the monthly amount determined by the department, for 28 coverage of its employees or elected officials as appropriate 29 under the state plan. A public school district may require 30 each covered employee or elected official to contribute a 31 portion of the cost of such coverage under the state plan, 32 subject to any collective bargaining obligation applicable to 33 the public school district. If any payment due by a public 34 school district under this section is not timely paid, after 35 -1- LSB 6579XS (1) 91 sc/ns 1/ 4

S.F. 2102 the due date interest shall be added to such payment at the 1 prevailing rate of interest, as determined by the department. 2 Such interest shall be paid by the public school district. 3 2. The department shall charge a public school district 4 participating in the state plan an administrative fee 5 calculated on a per-month basis per covered employee or elected 6 official. 7 3. Payments made pursuant to this section shall be deposited 8 in the Iowa health care coverage partnership program trust fund 9 created in section 8A.474. 10 4. If a public school district fails to make premium 11 payments as required under this section, the department may 12 direct the treasurer of state, or any other office of the state 13 that is the custodian of any moneys made available by reason 14 of any grant, allocation, or appropriation by the state or 15 state agencies payable to the public school district at any 16 time subsequent to the failure of the public school district, 17 to pay such premiums and interest that are due and unpaid and 18 to withhold payment of moneys payable to the public school 19 district until the amount of the premiums and interest then 20 due and unpaid by the public school district has been paid 21 to the state or until the treasurer of state determines that 22 arrangements, satisfactory to the treasurer of state, have been 23 made for the payment of such premiums and interest. However, 24 such moneys shall not be withheld from a public school district 25 if such withholding will adversely affect the receipt of any 26 federal grant or aid in connection with such moneys. 27 Sec. 4. NEW SECTION . 8A.474 Iowa health care coverage 28 partnership program trust fund. 29 1. An Iowa health care coverage partnership program trust 30 fund is created in the state treasury under the control of 31 the department. The trust fund shall consist of all moneys 32 deposited in the fund and other assets that must be held in 33 trust and is appropriated to the department for the exclusive 34 benefit of nonstate public employees covered under the 35 -2- LSB 6579XS (1) 91 sc/ns 2/ 4

S.F. 2102 state plan, including for payment of insurance premiums and 1 administrative fees for nonstate public employees covered under 2 the state plan. 3 2. The director is the trustee of the fund and shall 4 administer the fund. Any loss to the fund shall be charged 5 against the trust and the director shall not be personally 6 liable for such loss. 7 3. Moneys in the fund are not subject to section 8.33. 8 Notwithstanding section 12C.7, subsection 2, interest or 9 earnings on moneys in the fund shall be credited to the fund. 10 Sec. 5. NEW SECTION . 8A.475 Rules. 11 The department, by rule, shall develop procedures for the 12 implementation and administration of the provisions contained 13 in this part. 14 Sec. 6. NEW SECTION . 8A.476 Reporting. 15 On or before December 31 of each year, the department 16 shall submit to the governor and general assembly a report 17 on the health care coverage provided to nonstate public 18 employees, detailing costs, enrollment metrics, operational 19 efficiency, and stakeholder feedback, including the financial 20 and operational impact of the expanded enrollment eligibility 21 for state health or medical group insurance plans, including 22 overall cost savings for members and the state. 23 Sec. 7. EFFECTIVE DATE. This Act takes effect July 1, 2027. 24 EXPLANATION 25 The inclusion of this explanation does not constitute agreement with 26 the explanation’s substance by the members of the general assembly. 27 This bill allows employees and elected officials of a 28 public school district who are not part of a bargaining unit 29 guaranteed the right to negotiate the terms of health insurance 30 coverage under Code section 20.9 (public employment relations 31 Act —— scope of negotiations) to apply for coverage and enroll 32 in a state health or medical group insurance plan provided to 33 state employees by the department of administrative services 34 (DAS). Premium payments for coverage received through a state 35 -3- LSB 6579XS (1) 91 sc/ns 3/ 4

S.F. 2102 plan must be the same as for state employees, including any 1 premiums paid by state employees. 2 Each public school district that participates in a state 3 health or medical group insurance plan must pay monthly 4 premium amounts for coverage to DAS, plus administrative 5 fees calculated on a per-month basis per employee or elected 6 official. A public school district may require each covered 7 employee or elected official to contribute a portion of the 8 cost of such coverage under the state plan, subject to any 9 collective bargaining obligations. The payments are to be 10 deposited in the Iowa health care coverage partnership program 11 trust fund, created in the bill, and expended for coverage 12 being provided to the covered employees or elected officials. 13 If monthly premium payments are not made, DAS may charge 14 interest on the unpaid balance. If a public school district 15 fails to make premium payments, DAS may direct the treasurer of 16 state or other state entity to withhold grants, allocations, 17 or appropriations payable to the public school district, until 18 the premium payments are made. 19 The bill requires DAS to submit an annual report to the 20 governor and the general assembly on the health care coverage 21 provided to nonstate public employees. 22 The bill takes effect July 1, 2027. 23 -4- LSB 6579XS (1) 91 sc/ns 4/ 4