Opinion letter to The Honorable James F. Antonio,

.JOHN ASHCROFT ATTORNEY GENERAL \ I ~z1~¥~ POST OF'F'ICE BOX 699 .JEFFERSON CITY, MISSOURI 65102 April 23, 1984 (314) 751-3321 DIRECT DIAL: OPINION LETTER NO. 6-84 The Honorable James F. Antonio, CPA State Auditor P. 0. Box 869 Jefferson City, Missouri 65101 Dear Mr. Antonio: This is in response to your question asking: What is the legally authorized amount per month for the state to contribute to the Missouri State Highway Department And Mis- souri State Highway Patrol Medical And Life Insurance Plan on behalf of each employee? Section 104.270, RSMo Supp. 1983, states: The state highways and transportation commission may contribute toward a plan of hospital, surgical, medical and life insur- ance benefits the sum of twelve dollars per month for each employee who 1s a member of the state highways and transportation employ- ees' and highway patrol retirement system. The highways and transportation commission may include coverage for members who have re- tired under the provisions of sections 104.010 to 104.270 in any plan for hospital, surgical and medical insurance benefits; provided such retired members are on June 14, 1977, covered under any group plan which provides such ben- efits for employees who are members of the highways and transportation employees' and highway patrol retirement system; and pro- vided, further, that no contribution will be made by the commission or the state toward the cost of coverage for such retired members. The state highways and transportation corn- mission may provide the insurance benefits The Honorable James F. Antonio authorized by this section by contract with insurance companies or, at its election, may provide for such coverage under section 104.515. If the state highways and trans- portation commission elects to contract with insurance companies or consultants concern- ing insurance benefits, such contract shall be open to public competitive bidding and review. Bidding shall be accomplished at intervals no greater than three years if the contract is to continue beyond contract per- iod. The highways and transportation corn- mission shall require the insurance carriers or consultants to keep and report all census data and premium-loss data normally required in competitive bidding arid shall furnish same to all prospective bidders. [Emphasis added.] This statute originated in 1977, H.B. 703, 1977 Missouri Laws 200, and was repealed and reenacted in 1983, H.B. 713, 1983 Missouri Legislative Service 1349, 1362 (Vernon's}. The $12.00 per employee- member per month contribution rate was not changed by the 1983 re- enactment of this section. Section 104.515.5, RSMo Supp. 1983, states: The state shall contribute sixty-five dollars forty cents per month per employee who is a member of the Missouri state employ- ees' retirement system, a member of the pub- lic school retirement system and who is em- ployed by a state agency other than an in- stitution of higher learning, the judicial retirement system, each legislator and of- ficial holding an elective state office, and if the state highways and transportation com- mission so elects, those employees who are members of the state highways and transporta- tion employees' and highway patrol retirement system. This amount shall be reported as a separate item in the monthly certification of required contributions which the commissioner of administration submits to the state trea- surer and shall be deposited to the separate account for hospital, surgical, medical, and life insurance benefits. All contributions made on behalf of members of the state high- ways and transportation employees' and highway -2- The Honorable James F. Antonio patrol retirement system shall be made from highway funds. The spouses and unemanc~pated children under twenty-three years of age of employees who are members of the Missouri state employees' retirement system, the judicial re- tirement system, of each legislator and offi- cial holding an elective state office and if the highways and transportation commission so elects, the spo~ses and unemancipated children under twenty-three years of age of employees who are members of the state highways and trans- portation employees' and highway patrol retire- ments [sic] system shall be able to participate in the program of insurance benefits to cover hospital, surgical, and medical expenses under 1 the provisions of subsection 7 of this section. [Emphasis added.] 1The current $65.40_ per employee-member per month elective contribution rate is established by Section 104.515.5 of S.B. 353, 1983 Missouri Legislative Service 418, 421 (Vernon's). But see Section 104.515.5 of H.B. No. 713, 1983 Missouri Legislative Ser- vice 1349, 1372-1373 (Vernon's) (stating a $55.40 per employee- member per month elective contribution rate). Prior to the $65.40 rate, the elective contribution rate was $55.40 per employee-mem- ber per month. Section 104.515.5 of H.C.S.H.B. 1720, 1645, and 1276, 1982 Missouri Laws 271, 281. Prior to the $55.40 rate, the elective contribution rate was $35.65 per employee-member per month. Section 104.515.5 of H.C.S.H.B. 835, 53, 591, and 830, 1981 Missouri Laws 273, 293. Prior to the $35.65 rate, the elective contribution rate was $12.00 per employee-member per month. Section 104.515.5 of H.B. 129, 1979 Missouri Laws 295, 296. Section 104.515.6 of H.B. 129, 1979 Missouri Laws 295, 296, stated in part: In addition to the state contribution authorized under subsection 5 of this sec- tion, the state shall contribute the addi- tional amounts required, as determined by the board, to fully fund hospital, surgical, medical and life insurance benefits for all employees as defined in section 104.310, the judicial retirement system, and each legis- lator and official holding an elective state office. If the state highway commission has -3- The Honorable James F. Antonio Section 104.270, RSMo Supp. 1983, currently authorizes a con- tribution rate of $12.00 per employee-member per month. Section 104.515.5, RSMo Supp. 1983, currently authorizes a contribution rate of $65.40 per employee-member per month, if the State Highways and Transportation System elects to provide insurance benefits un- der Section 104.515, RSMo Supp. 1983. footnote 1, continued elected to provide insurance benefits as au- thor1zed by sect1on 104.270, the state shall contribute, from highway funds only, the-ad- ditional amounts required to fully fund hos- pital, surgical, medical and life insurance benef1ts for all employees who are members of the state highway employees' and highway patrol retirement system. The provisions of this subsection shall not apply, however, to those employees participating in any other program of hospital, surgical and medical benefits provided through, or as a result of, employment with a department, any other employer, or any plan established by the federal government. This additional amount of state contribution shall not exceed twenty-three dollars and sixty-five cents, and shall be reported in the monthly certi- fication of contribution amounts which the commissioner of administration submits to the state treasurer and shall be deposited to the separate account for hospital, surgi- cal, medical and life insurance benefits • • • • [Emphasis added.] This additional contribution rate provision was repealed by Section 1 of H.C.S.H.B. 835, 53, 591 and 830, 1981 Missouri Laws 271, 275. Prior to the $12.00 per employee-member per month elective contribution rate and the additional contribution rate which had a ceiling of $23.65, the elective contribution rate was $12.00 per employee-member per month, and the additional contribution rate had a ceiling of $11.65. Section 104.515.5 and .6 of S.B. 497, 1978 Missouri Laws 241, 244-245. Prior to the effective date of S.B. 497, the elective contri- bution rate was $12.00 per employee-member per month with no addi- tional contribution rate. Section 104.515.5 of H.B. 703, 1977 Missouri Laws 200, 202. The elective contribution rate of $12.00 -4- The Honorable James F. Antonio Accordingly, we conclude that the State Highways and Trans- poration Commission may contribute from highway funds at the rate of $12.00 per employee-member per month toward a plan of hospital, surgical, medical and life insurance benefits under Section 104.270, RSMo Supp. 1983. If the State Highways and Transportation Commis- sion elects to provide insurance benefits to members of the State Highways Employees' and Highway Patrol Retirement System under Sec- tion 104.515, RSMo Supp. 1983, the contribution rate is $65.40 per employee-member per month, payable from highway funds. footnote 1, continued for the State Highway Employees' and Highway Patrol Retirement System originated at Section 104.515.5 of S.B. 513, 1976 Missouri Laws 638, 641. Prior to S.B. 513, the State Highway Commission (now, State Highways and Transportation Commission} had no election to provide insurance benefits under Section 104.515, RSMo. See Section 104.515.5 of S.B. 548, 1972 Missouri Laws 629, 639. -5-