The amendment shifts control over technical college employee participation in the state health plan from an automatic right to a negotiated arrangement between the human resources commissioner and individual technical college presidents, and changes the employer contribution requirement from "equivalent to" the state contribution to "no less than" it. This **weakens** employee protections by making enrollment conditional on bilateral agreement rather than guaranteed, while slightly strengthening the contribution floor.
26.840.9 26.840.10 101st Legislative Session 1279 2026 South Dakota Legislature House Bill 1279 HOUSE EDUCATION ENGROSSED Introduced by: Representative Mortenson Underscores indicate new language. Overstrikes indicate deleted language. An Act to permit technical college employees to join the state health plan. 1 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA: 2 Section 1. That § 3-6E-1 be AMENDED: 3 3-6E-1. The bureau may establish a benefits plan for plan-eligible employees of 4 the state and technical college employees, pursuant to section 2 of this Act. The plan may 5 either be self-funded or established as a group health insurance program. The plan may 6 provide for group health coverage against the financial cost of hospital, surgical, 7 pharmacy, and medical treatment and care, and any other coverage or benefits the human 8 resources commissioner determines is appropriate and desirable. The human resources 9 commissioner may include a flexible benefit plan which that allows an employee to choose 10 the employee's own benefits or levels of coverage. 11 Section 2. That a NEW SECTION be added to chapter 3-6E: 12 Notwithstanding any other sections of law, a technical college employee may join the plan on 13 terms and conditions agreed upon by the plan. human resources commissioner and the 14 president of the technical college. 15 Except as otherwise provided in this section, a technical college employee who 15 16 participates in the plan is considered a plan-eligible employee and a member of the plan 17 under this chapter. 16 18 In lieu of the monthly state contribution described in § 3-6E-8, the LEA, as defined 17 19 in § 13-39A-1, that employs a technical college employee shall contribute to the system 18 20 an amount equivalent to no less than the monthly contribution provided by the state for other plan-19 plan-21 eligible employees. 20 22 In lieu of a payroll deduction, deduction by the state, as described under § 3-6E-9, a technical 23 college 21 employee enrolled participating in the plan shall may deduct from an employee's salary, and pay to the state treasurer any premium or contribution 22 required by the human resources commissioner, pursuant to § 3-6E-9. 23 A technical college or LEA, may not restrict a technical college employee from 24 joining the plan. 25 26.840.9 26.840.10 2 1279 Underscores indicate new language. Overstrikes indicate deleted language. The state treasurer any premium or contribution required by the human resources commissioner shall promulgate rules for the administration 1 of this section. commissioner, pursuant to § 3-6E-9. 2 For the purpose of this chapter "technical college employee" means an individual 3 who is a permanent employee of a technical college in this state, as listed in § 13-39A-4 42, and who is scheduled to work twenty or more hours a week, at least six months of 5 each year. 6 Section 3. That § 3-6E-8 be AMENDED: 7 3-6E-8. The State of South DakotaThe state shall either make a monthly 8 contribution to the system or otherwise provide for the amount necessary to make 9 payment to the system for the full single rate monthly health insurance premium or 10 contribution for the plan with the lowest actuarial value for each plan-eligible employee, 11 except for a technical college employee, pursuant to section 2 of this Act. This amount 12 shall must be transmitted to the account of the state employees' benefits plan in the Office 13 of the State Treasurer. The state treasurer, after making a record of the receipts, shall 14 credit the plan with an amount equal to that remitted or otherwise provided. Costs beyond 15 this amount for other plans offered by the state shall must be paid by the employee 16 through premiums. After the contribution has been assigned to the plan, the bureau shall 17 disburse the contribution in accordance with this chapter and the rules promulgated 18 pursuant to chapter 1-26 by the human resources commissioner. 19 Section 4. That § 3-6E-9 be AMENDED: 20 3-6E-9. The State of South DakotaThe state shall deduct on each payroll of a 21 member, except for a member who is a technical college employee pursuant to section 2 22 of this Act, for each payroll period, the amount of the contribution or premium, including 23 any administrative expense. The state shall make deductions from salaries of plan-eligible 24 employees, except for technical college employees, pursuant to section 2 of this Act, and 25 shall transmit monthly the amount specified to be deducted to the state treasurer. The 26 state treasurer, after making a record of receipts, shall credit the benefits plan with an 27 amount equal to that remitted by the state. After the credit has been assigned to the 28 benefits plan, the human resources commissioner shall disburse credit in accordance with 29 this chapter and the rules promulgated pursuant to chapter 1-26 by the human resources 30 commissioner. 31 Section 5. That § 3-6E-13 be AMENDED: 32 26.840.9 26.840.10 3 1279 Underscores indicate new language. Overstrikes indicate deleted language. 3-6E-13. The human resources commissioner is responsible for the administration 1 of this chapter and shall promulgate rules required for the effective administration of the 2 provisions of this chapter pursuant to chapter 1-26. The rules may must be promulgated 3 in the 3 following areas: 4 (1) To establish what benefits will are to be offered pursuant to this chapter; 5 (2) Participation in the plan by employees, retired employees, technical college 6 employees, and dependents; 7 (3) Procedures for election of coverage; 8 (4) Effective dates of coverage if not specified by statute; 9 (5) Termination of coverage; 10 (6) Changes in dependent coverage; 11 (7) Collection of premiums and contributions; 12 (8) To coordinate the benefits plan with the health insurance plan authorized in this 13 chapter; and 14 (9) Other provisions as required to meet federal law. 15 Section 6. This Act is effective beginning July 1, 2027. 16