An Act to permit technical college employees to join the state health plan.

Be it enacted by the Legislature of the State of South Dakota:

Section 1. That § 3-6E-1 be AMENDED:

3-6E-1. The bureau may establish a benefits plan for plan-eligible employees of the state and technical college employees, pursuant to section 2 of this Act. The plan may either be self-funded or established as a group health insurance program. The plan may provide for group health coverage against the financial cost of hospital, surgical, pharmacy, and medical treatment and care, and any other coverage or benefits the human resources commissioner determines is appropriate and desirable. The human resources commissioner may include a flexible benefit plan which that allows an employee to choose the employee's own benefits or levels of coverage.

Section 2. That a NEW SECTION be added to chapter 3-6E:

Notwithstanding any other sections of law, a technical college may join the plan on terms and conditions agreed upon by the human resources commissioner and the president of the technical college.

Except as otherwise provided in this section, a technical college employee who participates in the plan is considered a plan-eligible employee and a member of the plan under this chapter.

In lieu of the monthly state contribution described in § 3-6E-8, the LEA, as defined in § 13-39A-1, that employs a technical college employee shall contribute to the system an amount no less than the monthly contribution provided by the state for other plan-eligible employees.

In lieu of a payroll deduction by the state, as described under § 3-6E-9, a technical college participating in the plan may deduct from an employee's salary, and pay to the state treasurer any premium or contribution required by the human resources commissioner, pursuant to § 3-6E-9.

For the purpose of this chapter "technical college employee" means an individual who is a permanent employee of a technical college in this state, as listed in § 13-39A-42, and who is scheduled to work twenty or more hours a week, at least six months of each year.

Section 3. That § 3-6E-8 be AMENDED:

3-6E-8. The State of South DakotaThe state shall either make a monthly contribution to the system or otherwise provide for the amount necessary to make payment to the system for the full single rate monthly health insurance premium or contribution for the plan with the lowest actuarial value for each plan-eligible employee, except for a technical college employee, pursuant to section 2 of this Act. This amount shall must be transmitted to the account of the state employees' benefits plan in the Office of the State Treasurer. The state treasurer, after making a record of the receipts, shall credit the plan with an amount equal to that remitted or otherwise provided. Costs beyond this amount for other plans offered by the state shall must be paid by the employee through premiums. After the contribution has been assigned to the plan, the bureau shall disburse the contribution in accordance with this chapter and the rules promulgated pursuant to chapter 1-26 by the human resources commissioner.

Section 4. That § 3-6E-9 be AMENDED:

3-6E-9. The State of South DakotaThe state shall deduct on each payroll of a member, except for a member who is a technical college employee pursuant to section 2 of this Act, for each payroll period, the amount of the contribution or premium, including any administrative expense. The state shall make deductions from salaries of plan-eligible employees, except for technical college employees, pursuant to section 2 of this Act, and shall transmit monthly the amount specified to be deducted to the state treasurer. The state treasurer, after making a record of receipts, shall credit the benefits plan with an amount equal to that remitted by the state. After the credit has been assigned to the benefits plan, the human resources commissioner shall disburse credit in accordance with this chapter and the rules promulgated pursuant to chapter 1-26 by the human resources commissioner.

Section 5. That § 3-6E-13 be AMENDED:

3-6E-13. The human resources commissioner is responsible for the administration of this chapter and shall promulgate rules required for the effective administration of the provisions of this chapter pursuant to chapter 1-26. The rules may be promulgated in the following areas:

(1) To establish what benefits will are to be offered pursuant to this chapter;

(2) Participation in the plan by employees, retired employees, technical college employees, and dependents;

(3) Procedures for election of coverage;

(4) Effective dates of coverage if not specified by statute;

(5) Termination of coverage;

(6) Changes in dependent coverage;

(7) Collection of premiums and contributions;

(8) To coordinate the benefits plan with the health insurance plan authorized in this chapter; and

(9) Other provisions as required to meet federal law.

Section 6. This Act is effective beginning July 1, 2027.