Ark. Code Ann. § 21-5-406 (2020)

1. 1. The State and Public School Life and Health Insurance Board shall choose the Director of the Employee Benefits Division with the approval of the Secretary of the Department of Transformation and Shared Services.
   2. 1. The director shall be employed by and serve at the pleasure of the secretary, and shall perform all duties in consultation with the secretary.
      2. However, the board may recommend the removal of the director, but removal is subject to the approval of the secretary.
   3. The director shall employ staff adequate to manage the State and Public School Life and Health Insurance Program within the funds appropriated for the program within the Department of Transformation and Shared Services.
2. The director shall establish internal controls for the fiscal management of the program.
3. 1. The director and his or her staff shall be located in the Employee Benefits Division.
   2. Funds collected from employers, participating employees, retirees, and any other sources for the program, including plan options offered under the program, shall be used solely to pay medical claims, drug claims, premiums, benefits, and direct administrative expenses of the program.
4. The director shall administer this subchapter and the rules and orders of the division and the board.
5. 1. The director may require all participating entities to appoint health insurance representatives who shall adhere to the policies adopted by the board and the rules and procedures issued by the director in managing the enrollment and premium payment processes of the state agency or school district.
   2. The director may request the removal of a health insurance representative to ensure necessary internal controls.
   3. 1. The director has the authority to supervise the implementation and day-to-day management of the program and other employee benefits, plans, and individual and group policies made available to participants, if applicable.
      2. The authority granted under subdivision (e)(3)(A) of this section includes without limitation supervising:
         1. Life insurance coverage;
         2. Accident coverage;
         3. Dental coverage;
         4. Disability benefit programs;
         5. Optional retirement programs;
         6. Deferred compensation;
         7. Cafeteria plans; and
         8. Such other benefit plans, benefit programs, and individual and group benefit coverage that are offered from time to time to state employees, state employee retirees, public school employees, and public school employee retirees.
      3. The authority granted under subdivision (e)(3)(A) of this section does not include supervising the State Employees Benefit Corporation benefit plan in effect on July 1, 1995.
      4. In addition, the director and the board may utilize the services of healthcare consultants and actuaries if necessary as provided for through the appropriation of the division.
      5. The Arkansas State Police Employee Health Plan is exempt from any mandatory participation required by this section.

History. Acts 1995, No. 1206, §§ 7, 8; 1999, No. 1280, § 6; 2001, No. 1814, §§ 1, 4; 2007, No. 1009, § 6; 2013 (1st Ex. Sess.), No. 3, § 2; 2013 (1st Ex. Sess.), No. 6, § 2; 2015, No. 910, § 3; 2015, No. 1135, § 3; 2019, No. 910, § 6141.

Publisher's Notes. Former § 21-5-406, concerning committee powers and duties, was repealed by Acts 1995, No. 1206, § 9. The former section was derived from Acts 1972 (1st Ex. Sess.), No. 48, § 9; 1973, No. 842, § 3; 1975, No. 576, §§ 1, 2; 1981, No. 749, § 5; 1981, No. 838, § 7; 1983, No. 423, §§ 2, 3; A.S.A. 1947, §§ 12-3109, 12-3109.1; Acts 1992 (1st Ex. Sess.), No. 27, § 2; 1992 (1st Ex. Sess.), No. 28, § 2.

Amendments. The 1999 amendment rewrote this section.

The 2001 amendment redesignated former (a) as (a)(1) through (a)(3); inserted “or her” in (b)(1); deleted “of the Department of Finance and Administration” following “Division” in (c)(1) and (d); and added (e).

The 2013 (1st Ex. Sess.) amendment by identical acts Nos. 3 and 6 substituted “Executive Director of the Employee Benefits Division of the Department of Finance and Administration” for “executive director” throughout the section; redesignated former (a)(2) as (a)(2)(A) and (B); substituted “is” for “shall be” in (a)(2)(B); in (a)(3), substituted “State and Public School Life and Health Insurance Program” for “program” and “for the program” for “therefor”; substituted “program” for “health and life insurance plans” in (b); in (c)(2), substituted “the program, including plan options offered under the program” for “health and life insurance plans” and “program” for “health and life insurance programs”; substituted “administer this subchapter and the rules” for “be charged with the duty of administering the provisions of this subchapter and the rules, regulations” in (d); in (e)(1), substituted “shall” for “will be required to,” substituted “rules” for “regulations,” and inserted “state” preceding “agency”; inserted “health insurance” in (e)(2); rewrote (e)(3)(A) and the introductory language of (e)(3)(B); substituted “state employees, state employee retirees, public school employees, and public school employee retirees” for “members” in (e)(3)(B)(viii); in (e)(3)(C), substituted “The authority granted under subdivision (e)(3)(A) of this section does not include supervising” for “This authority shall not include” and deleted “which is” following “plan”; substituted “healthcare” for “health care” in (e)(3)(D); and substituted “is” for “shall be” in (e)(3)(E).

The 2015 amendment by No. 910, in (c)(2), substituted “Funds” for “Premiums,” inserted “and any other sources,” “drug claims,” and “benefits”.

The 2015 amendment by No. 1135, in (c)(2), substituted “Funds” for “Premiums,” inserted “and any other sources,” deleted “shall be collected one (1) month in advance and” preceding “shall be used,” and inserted “drug claims,” and “benefits”.

The 2019 amendment substituted “Director” for “Executive director” in the section heading; rewrote (a); substituted “director” for “Executive Director of the Employee Benefits Division of the Department of Finance and Administration” throughout (b) through (e); and deleted “of the Department of Finance and Administration” following “Employee Benefits Division” in (c)(1).