CHAPTER NO. 907

HOUSE BILL NO. 2106

By Representatives Jackson, West

Substituted for: Senate Bill No. 2365

By Senator Springer

AN ACT to amend Tennessee Code Annotated, Section 8-27-303, relative to group insurance for local education personnel and the local utilization of funds generated by the Basic Education Program insurance component.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:

SECTION 1. Tennessee Code Annotated, Section 8-27-303, is amended by deleting subsection (j) in its entirety and substituting instead the following paragraph:

Beginning July 1, 1998, each local education agency shall pay on behalf of each eligible employee, as defined in Section 8-27-302(d)(2), participating in the health insurance coverage authorized by Section 8-27-302(a) or subdivision (a)(2) as a minimum the percentage specified in the general appropriations act of the premium collected on behalf of each such employee. Distribution of a like amount to each eligible employee through a flexible spending arrangement authorized by Section 125 of the Internal Revenue Service Code shall satisfy the requirements of this subsection. Such amounts shall be certified to the Commissioner of Education and the director of each local education agency by the local education insurance committee each fiscal year.

SECTION 2. This act shall take effect upon becoming law, the public welfare requiring it.

PASSED: April 22, 1998

APPROVED this 7th day of May 1998