SB355 By Senators Albritton and Waggoner RFD Finance and Taxation General Fund Rd 1 09-APR-15

SYNOPSIS: Under existing law, the membership of the State Employees' Insurance Board includes two active state employees, two retired state employees, two ex officio members, and five members from the State Personnel Board.

This bill would remove the members of the State Personnel Board from the State Employees' Insurance Board and create appointments to fill those positions.

A BILL TO BE ENTITLED AN ACT

To amend Section 36-29-2, Code of Alabama 1975, relating to the State Employees' Insurance Board; to remove the State Personnel Board members from the board and to create appointments to fill those positions.

BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:Section 1. Section 36-29-2, Code of Alabama 1975, is amended to read as follows:

§36-29-2.

The State Employees' Insurance Board shall consist of the members of the State Personnel Board two persons appointed by the Governor; one person appointed by the Speaker of the House of Representatives; one person appointed by the Lieutenant Governor; ,together with the Director of Finance, The State Treasurer, the Secretary-Treasurer of the Employees' Retirement System of Alabama, two members who are regular active employees of the state who are covered under the State Employees' Health Insurance Plan and two retirees who are covered under the State Employees' Health Insurance Plan who are receiving benefits from the Employees' Retirement System of Alabama.

(a) The present ex officio officers named shall constitute the membership of the board hereby created, and their successors in office, by virtue of assuming such office, shall succeed to membership on the board.

(b) The two active state employee members of the board shall be elected at the regular election for officers of the Alabama State Employees' Association. as follows:

At the expiration of the term of the existing state employee members of the board one state employee member of the board shall be elected for a two-year term and every four years thereafter, and the other state employee member of the board shall be elected for a four-year term, and every four years thereafter. Vacancies of the active state employee members of the board shall be filled for the remainder of the term by special election of the Alabama State Employees' Association. The Chairman of the State Personnel Board shall serve as the Chairman of the State Employees' Insurance Board.

(c) Each of the appointees shall have a degree or professional experience in one of the following areas: finance, business administration, health care administration, group health insurance management or health care law. None of the appointed members shall be an owner or an employee of a business that contracts with the State Employees' Insurance Board.

(d) Upon the effective date of this Act, the State Personnel Board members will cease to be members of the State Employees' Insurance Board. The terms for the new appointees shall be staggered as follows: the Governor's two appointees' terms shall expire on January 31, 2016 and January 31, 2018; the term of the Speaker's appointee shall expire January 31, 2017, and the term of the Lieutenant Governor's appointee shall expire on January 31, 2019. The subsequent terms for all appointed members of the board shall be for four years.

(e) The retired members shall be elected in a statewide ballot conducted under the supervision and direction of the board under such rules and regulations as are necessary to insure that all eligible retirees are afforded the opportunity to vote.

(f) The Board of Directors of the Alabama Retired State Employees' Association shall submit one nomination for each retired member position. The board shall determine the procedure for qualification of additional candidates which shall include but is not limited to the submission of a petition or petitions which shall include the signature of at least 50 eligible retirees. With the exception of the initial election, each position shall be for a term of four years. The initial terms shall be as follows:

(1) Retired member Place Number 1 for a period of two years beginning November 1, 1985.

(2) Retired member Place Number 2 for a period of four years beginning November 1, 1985.

Any vacancy in the office of either retired positions shall be filled for the remainder of that term by the board from a list of three eligible retired members submitted by the Board of Directors of the Alabama Retired State Employees' Association.

(g) The board shall annually elect from its members a chairperson by a majority vote.