CHAPTER 204

FORMERLY

SENATE BILL NO. 143

AS AMENDED BY SENATE AMENDMENT NO. 1

AN ACT TO AMEND TITLE 18 AND TITLE 29 OF THE DELAWARE CODE RELATING TO STATE EMPLOYEE BENEFITS.

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

Section 1. Amend Title 29, Delaware Code by adding a new Chapter to read as follows:

“Chapter 96. STATE EMPLOYEE BENEFITS COMMITTEE

§9601. Title.

This Chapter shall be known as the State Employee Benefits Consolidation Act.

§9602. State Employee Benefits Committee.

(a) There is hereby established a State Employee Benefits Committee (“Committee”). The Committee shall be comprised of the Insurance Commissioner, the State Treasurer, the Budget Director, the Controller General, the Secretary of Finance, and the State Personnel Director, or their designees. The State Personnel Director shall chair the Committee.

(b) The State Employee Benefits Committee shall have the following powers, duties and functions:

(1) With the exception of Deferred Compensation pursuant to Title 29, Chapter 60A, and any other investment or retirement savings plan, control and management of all employee benefit coverages including Health Care Insurance and Blood Bank, pursuant to Title 29, Chapters 51, and 52; State Employees Group Life Insurance pursuant to Title 18, Chapter 32; and all other currently existing and future employee benefits coverages, including but not limited to all forms of flexible benefits, dental, vision, prescription, long-term care, and disability coverages.

(2) Selection of all carriers or third-party administrators necessary to provide coverages to State employees.

(3) Authority to contract on an insured or self insured basis.

(4) Authority to adopt rules and regulations for the general administration of the employee benefit coverages.

(5) Authority to make and enter into any and all contracts with any agency of the State, or any outside agency, for the purpose of assisting in the general administration of this section.

(c) All members of the Committee and all legal, actuarial and administrative personnel shall be entitled to reimbursement for those travel and other expenses made necessary by their official duties that are approved by the State Personnel Director.

(d) The Committee shall hold regular meetings at least once every six months, which meetings shall be open to the public in accordance with §10004 of this Title.

§9603. State Employee Benefits Advisory Council.

(a) There shall be established a State Employee Benefits Advisory Council (“Council”) of the state which shall facilitate public informational hearings on proposed changes to the State Employees’ Benefits Program, receive feedback from representative sectors of state employment, and communicate that feedback to the State Employee Benefits Committee.

(b) The State Employee Benefits Advisory Council shall be composed of a maximum of 10 members who are state employees, to include representatives of labor organizations, non-union employees, educational employees and other appointees such as the Governor may deem appropriate.

(c) Members of the Council, including the chair, shall be appointed by the Governor. The initial terms of the members shall be staggered. Four members shall serve an initial term of three years, four members shall serve an initial term of two years, and the remaining members shall serve an initial term of one year. Thereafter, all terms shall be for three years. Members shall be eligible for reappointment to not one more than one additional consecutive term.

(d) The Council shall have the power to establish rules to govern its activities.

(e) Members of the Council shall serve without compensation, except that they may be reimbursed for reasonable and necessary expenses incident to their duties as members of the Council.

(f) The Council shall be entitled to non-confidential data and information reasonably deemed necessary for the achievement of the Council’s purposes.

(g) In the case of vacancy on the Council for any reason other than expiration of the term of office, the Governor shall fill such a vacancy for the remainder of the unexpired term.

§9604. Duties of the State Personnel Director.

The duties of the State Personnel Director under this chapter shall include:

(a) The placement of all insurance with such carriers as the Committee deems appropriate.

(b) The operation of the self-insurance fund, when and if a self-insurance fund shall be established by the Committee for the operation of a self-insurance program.

(c) Centralized responsibility for the operation of the State employee benefits program vested in a single agency with an adequate staff of legal, actuarial and administrative personnel.

(d) The establishment and operation of an open bid procedure to be maintained for purchasing new employee benefits coverage from carriers and renewing existing contracts with such carriers which will permit the free forces of market competition to operate to the benefit of the state employee benefits coverage programs.

(e) The maintenance in a safe and secure place of all policies with commercial insurers and all records necessary and pertinent thereto.

(f) The maintenance in a safe and secure place of all records, accounts, claims files, statistical studies and other such records and documents necessary and proper in the administration of any self-insured program, when and if the Committee deems it necessary and proper to utilize same.

(g) Prompt notification to insurance carriers or third party administrators of the names and other necessary data related to the employees and pensioners covered by State employee benefits programs and of all changes and additions thereto, and payment of such obligations as are incurred pursuant to this section, including the cost of premium or subscription charges for insurance coverage upon the written request of any state employee or pensioner from the funds appropriated therefore and, in the event such appropriated funds are inadequate, pay such additional sums as may be required from those moneys in the General Fund not otherwise appropriated.

(h) Communication to State employees of all State employee benefits coverages and any additions or changes of benefits affecting State employees.

(i) Authority to act as agent of the State to enter into a contract or contracts with the carrier or carriers for benefits programs for State employees and pensioners.

(j) Prompt notification of the health care insurance carrier or third party administrator of the names and other necessary data related to the employees and pensioners covered by the State employees health insurance program and of all changes and shall pay such obligations as are incurred pursuant to this section, including the cost of premium or subscription charges for health care insurance coverage upon the written request of any state employee or pensioner from the funds appropriated therefore and, in the event such appropriated funds are inadequate, pay such addition sums as may be required from those moneys in the General Fund not otherwise appropriated.”

Section 2. Amend Section 5114(e), Chapter 51, Title 29 of the Delaware Code by deleting the words “The State Treasurer” therein and substituting in lieu thereof the words “The State Personnel Director”.

Section 3. Amend Section 5201, Chapter 52, Title 29 of the Delaware Code by striking the subsection (d) in its entirety.

Section 4. Amend Section 5203(c), Chapter 52, Title 29 of the Delaware Code by striking the subsection (c) in its entirety.

Section 5. Amend Section 5204, Chapter 52, Title 29 of the Delaware Code by striking the subsection (c) in its entirety.

Section 6. Amend Section 5206, Chapter 52, Title 29 of the Delaware Code by deleting the first sentence in its entirety.

Section 7. Amend Chapter 52, Title 29 of the Delaware Code by adding a new §5210 to read as follows:

Ҥ5210. Authority and Duties of the State Employee Benefits Committee.

(a) The State Employee Benefits Committee established by Section 9602 of this Title shall have the following powers, duties and functions under this Chapter:

(1) Control and management of the State employees group health insurance program provided for in this Chapter.

(2) Authority to establish the State employees group health insurance program on an insured or self-insured basis.

(3) Selection of the carriers or third party administrators deemed to offer the best plan to satisfy the interests of the State and its employees and pensioners in carrying out the intent of this Chapter.

(4) Authority to adopt rules and regulations for the general administration of the State employees group health insurance program.

(5) Authority to make and enter into any and all contracts with any agency of the State, or any outside agency, for the purpose of assisting in the general administration of this Chapter.”

Section 8. Amend Section 3205, Chapter 32, Title 18 of the Delaware Code by deleting the words “State Group Life Insurance Committee” in subsections (a) and (b) and substituting in lieu thereof the words “State Employee Benefits Committee” each time these words appear.

Section 9. Amend Section 3206, Chapter 32, Title 18 of the Delaware Code by deleting Section 3206 in its entirety and substituting in lieu thereof the following to read:

Ҥ3206. State Employee Benefits Committee.

(a) After reviewing competitive group plans, the State Employee Benefits Committee, established by §9602 of Title 29, shall select a carrier deemed to offer the best plan to satisfy the interests of the State and of its employees in carrying out the intent of this chapter. Such contract shall be for a uniform term of at least 1 year, but may be continued automatically at the option of the State Employee Benefits Committee from term to term in accordance with recognized group life insurance practices.

(b) The State Employee Benefits Committee shall be empowered to adopt rules and regulations which it deems necessary for the administration of the State’s Group Life Insurance Plan.”

Section 10. Amend Section 3207, Chapter 32, Title 18 of the Delaware Code by deleting the words “Group Life Insurance Committee” at the end of the first sentence and substituting in lieu thereof the words “the State Employee Benefits Committee.”

Section 11. Amend Section 3208, Chapter 32, Title 18 of the Delaware Code by deleting the words “The State or its authorized department or agency” at the beginning of the first sentence and substituting in lieu thereof the words “The State Personnel Director”.

Section 12. Amend Section 3209, Chapter 32, Title 18 of the Delaware Code by deleting the words “the Group Life Insurance Committee” at the end of the first sentence and substituting in lieu thereof the words “the State Employee Benefits Committee”.

Section 13. Amend Section 3210, Chapter 32, Title 18 of the Delaware Code by deleting the words “the Group Life Insurance Committee” at the end of the first sentence and substituting in lieu thereof the words “the State Employee Benefits Committee”.

Section 14. Amend Section 6057,Chapter 60, Title 29 of the Delaware Code by adding the words “National Association of Securities Dealers Automated Quotations (NASDAQ) and American Stock Exchange” after the words “New York Stock Exchange” in Subsection (5) thereof.

Section 15. Amend Section 5209, Chapter 52, Title 29 of the Delaware Code by deleting the words “Group Health Insurance Committee” wherever they appear and substituting in lieu thereof the words “State Employee Benefits Committee.

Approved July 20,1999