Amends TCA Title 8, Chapter 27 and Title 8, Chapter 50, Part 8.

ON MARCH 23, 2023, THE SENATE ADOPTED AMENDMENT #1 AND PASSED SENATE BILL 276, AS AMENDED. AMENDMENT #1 rewrites this bill to make various changes to present law pertaining to leave for state employees. TYPES OF LEAVE Under present law, each officer and employee of the several departments and agencies of the state government, who is scheduled to work 1,600 hours or more in a fiscal year, accrues one day of sick leave for each month worked and a varying amount of annual leave, based on length of service, for each month worked. Present law authorizes state employees to use annual leave and sick leave for up to 12 weeks of maternity, paternity, or adoptive parent leave. This amendment adds that an eligible employee will be granted absence from work with 100 percent pay of the employee's salary for a period of time equal to 12 workweeks because of the birth of the employee's child or the placement of a child with the employee for adoption. This amendment requires an employee to give 30 days' notice to the appropriate appointing authority, and if the eligible employee learns of the birth or adoption less than 30 days in advance, then the employee must give notice as soon as reasonably possible. This amendment prohibits leave used by an eligible employee for the birth or adoption of child from being charged to sick, annual, or other leave the employee may have accumulated. An eligible employee is prohibited from being granted more than 12 workweeks of paid leave for these purposes during a 12-month period, even if more than one qualifying birth or adoption occurs, but the workweeks do not have to be taken consecutively. This amendment defines eligible employee as an employee who has been employed full time with the state for at least 12 consecutive months, except for an employee of an administrative board or commission that is attached to an entity. This amendment provides that if an eligible employee experienced a birth or adoption prior to the effective date of the amendment and has not used all of the federal Family Medical Leave Act leave to which the employee was entitled, then the employee is entitled to the leave provided by the amendment for the remainder of the federal family leave that the employee uses, not to exceed the 12 workweek cap. ANNUAL LEAVE CALCULATIONS Under present law, an eligible employee accrues annual leave based on the total creditable service as follows: (1) Any officer or employee who has less than five years of full-time service and was not in the active employment of the state of Tennessee on July 1, 1969, accrues annual leave at the rate of one day for each month of service or major fraction thereof, and may accumulate a maximum of 30 work days; (2) Any officer or employee who has less than five years of full-time service and was an active employee of the state of Tennessee on July 1, 1969, and has had continuous employment since July 1, 1969, accrues annual leave at the rate of one and one-half days for each month of service or major fraction thereof, and may accumulate a maximum of 36 work days; (3) Any officer or employee who has five years and less than ten years of full-time service accrues annual leave at the rate of one and one-half days for each month of service or major fraction thereof and may accumulate a maximum of 36 work days; (4) Any officer or employee who has ten years and less than 20 years of full-time service accrues annual leave at the rate of one and three-quarters days for each month of service or major fraction thereof and may accumulate a maximum of 39 work days; and (5) Any officer or employee who has 20 years or more of full-time service accrues annual leave at the rate of two days for each month of service or major fraction thereof and may accumulate a maximum of 42 work days. This amendment adds to (1) that an officer or employee other than as already described by present law who has less than five years of full-time service and was not in the active employment of the state of Tennessee on July 1, 1969, accrues annual leave at the rate of 12 days per year on the date the employee is hired and on each service anniversary date for the employee, and may accumulate a maximum of 30 work days; This amendment deletes (2). This amendment adds to (3) that an officer or employee other than as described in (1) who has five years and less than ten (10) years of full-time service accrues annual leave at the rate of 18 days per year on each service anniversary date for the employee, and may accumulate a maximum of 36 days. This amendment adds to (4) that an officer or employee other than as described in (1) who has 10 years and less than 20 years of full-time service accrues annual leave at the rate of 21 days per year on each service anniversary date for the employee, and may accumulate a maximum of 39 work days Finally, this amendment adds to (5) that an officer or employee other than as described in (1) who has 20 years or more of full-time service accrues annual leave at the rate of 24 days per year on each service anniversary date for the employee, and may accumulate a maximum of 42 work days. This amendment requires that for purposes of calculating (1) - (5), service anniversary dates must be adjusted to account for gaps in paid employment as a state employment. For individuals holding full-time positions in the department of education that require three years' experience as a certified professional employee in the Tennessee public school system, prior teaching or administrative experience in Tennessee public schools is creditable for purposes of (1) - (5), not to exceed three years. ANNUAL LEAVE MISCELLANEOUS Under present law, Saturdays, Sundays, and official holidays are not counted in computing the period of time to which an officer or employee is entitled, unless such days are considered as work days for the employee in the employee's particular assignment. For purposes of determining accrual rates and maximum accrual limits, 1,950 hours constitute a full-time work year. Any month, which was part of a 1,600 hour or greater annual schedule, in which an eligible employee is scheduled to work a full month, and actually works one tenth of one hour more than one half the scheduled hours, is creditable. For individuals holding full-time positions in the department of education that require three years' experience as a certified professional employee in a Tennessee public school system, prior teaching or administrative experience in Tennessee public schools is creditable, not to exceed three years. This amendment deletes these provisions and instead provides that annual leave requested by an employee is subject to supervisory approval. SICK LEAVE CALCULATIONS Under present law, sick leave may be granted to each officer and employee who is scheduled to work 1,600 hours or more in a fiscal year, whether compensated on an hourly, daily, monthly, or piecework basis, at the rate of one day for each month of service or major fraction thereof, at the discretion of the head of the department or agency and with the approval of the commissioner of human resources. This amendment adds that sick leave may be granted to each officer or employee, other than as described above, who is scheduled to work 1,600 hours or more in a fiscal year, whether compensated on an hourly, daily, monthly, or piecework basis, at the rate of 12 days per year on the date the employee is hired and on each service anniversary date for the employee, at the discretion of the head of the department or agency and with the approval of the commissioner of human resources. TERMINATION COMPENSATION Under present law, each officer and employee entitled to annual leave must be compensated upon termination for the officer's or employee's unused accrued annual leave. Annual and sick leave do not accrue during a terminal leave period. This amendment deletes these provisions and instead requires that each officer and employee entitled to annual leave be compensated upon termination for their unused accrued annual leave based upon the number of months the employee worked beyond their service anniversary date. If the termination date is prior to the service anniversary date, then the officer or employee’s final paycheck must be reduced to account for the number of annual days used that exceed the number of months in which the employee worked. If the separated employee is rehired by the state within one year of the date of separation, then the state must reinstate any accrued, unused annual leave from the previous period of employment for which the employee was not compensated at separation. VOLUNTARY BENEFITS FOR GROUP INSURANCE OF PUBLIC OFFICERS AND EMPLOYEES Present law defines voluntary benefits as those benefits for which the premium is fully paid by enrolled members. The committees must establish voluntary benefits as the committees deem necessary and reasonable to afford coverage beyond the basic health plan and, where applicable, any employer-paid basic term life and basic accidental death and dismemberment insurance benefit offered by the committees. "Voluntary benefits" may include, but are not limited to, dental, vision, long-term care, and disability insurance benefits. This amendment deletes this definition and instead provides that "voluntary benefits" are those benefits the committees deem necessary and reasonable to afford coverage in addition to the basic health plan or plans, and any fully employer-paid benefits offered by the committee. STATE INSURANCE COMMITTEE - GROUP INSURANCE PLAN COMPONENTS OF PLAN Under present law, the state insurance committee must approve for eligible state employees a group insurance plan, which must consist of: (1) One or more basic health plans as the state insurance committee deems necessary and reasonable; (2) A basic term life insurance benefit and basic accidental death and dismemberment benefit, with defined coverage amounts paid for by the employer. These benefits must be available to eligible employees who have not enrolled in the health insurance plans offered by the state insurance committee; and (3) Voluntary benefit plans as may be necessary and reasonable. These benefits include optional life insurance coverage in excess of that offered under (2). The state insurance committee may provide for voluntary benefits as part of the basic health plans or as separate plans. This amendment removes (2) and (3), instead providing that the plan consists of: (2) All benefits with defined coverage fully paid for by the employer. These benefits must be available to eligible employees who have not enrolled in the health insurance plans offered by the state insurance committee; and (3) Voluntary benefit plans as may be necessary and reasonable. Under present law, the basic health, term life, and accidental death and dismemberment plans must be the only basic group insurance plans offered to state employees. This amendment changes this provision to require that the basic health and all plans fully paid by the employer be the only basic insurance plans offered by the state. RESPONSIBILITY OF PAYMENT OF PREMIUMS Under present law, from the appropriations made each year in the general appropriations act, the various departments, agencies, boards, and commissions of state government must pay, on behalf of each participating employee within the respective departments, agencies, boards, and commissions, defined coverage amounts for the basic term life insurance benefit and basic accidental death and dismemberment benefit. This amendment deletes reference to the basic term life insurance benefit and basic accidental and dismemberment benefits and instead requires the commissions of state government to pay all fully employer-funded benefits and all partially employer funded voluntary benefits. The premium for voluntary benefit plans as the state insurance committee may adopt must be fully paid by the enrolled members. The additional costs for participating dependents must be fully paid by the enrolled members. This amendment deletes the present law requirement that payment of the premium for voluntary benefits be fully paid by enrolled members and instead requires that it be paid in full or in part by the employee. HEALTH BENEFIT FOR RETIRED STATE EMPLOYEES Under present law, the state insurance committee may establish a health benefit, as the state insurance committee deems necessary and reasonable, for state employees who are retired. The health benefit may be made available to retired state employees who are drawing retirement benefits through the consolidated retirement system and to retired state employees of the University of Tennessee and the state university and community college system who are drawing retirement benefits through the consolidated retirement system or any other retirement plan as a result of their employment with the University of Tennessee or the state university and community college system. This amendment authorizes the state to also establish voluntary benefits. SUPPLEMENTAL MEDICAL INSURANCE FOR RETIRED EMPLOYEES Under present law, the state insurance committee, in cooperation with the local education insurance committee and local government insurance committee, must provide supplemental medical insurance as the state insurance committee deems necessary and reasonable for retired state employees and teachers who are covered by Medicare benefits. The state insurance committee may also establish provisions for participation in Medicare health maintenance organizations certified by the centers for Medicare and Medicaid services for retired state employees and may establish optional coverages as the state insurance committee deems necessary and reasonable. This amendment deletes these provisions, instead providing that the state insurance committee is authorized, but not required, to provide a supplemental medical insurance benefit as the committee deems necessary and reasonable for retired state employees, who are covered by Medicare benefits, and may establish eligibility for criteria for the benefit. The supplemental medical insurance benefit may be made available to: (1) Eligible retired state employees, eligible retired employees of the University of Tennessee, and eligible retired employees of the state university and community college system who are drawing retirement benefits through the Tennessee consolidated retirement system (TCRS); and (2) Eligible retired employees of the University of Tennessee and the state university and community college system who are participants in any other retirement plan offered through their employment with the University of Tennessee or the state university and community college system, regardless of whether such retired employee is drawing a retirement benefit. LOCAL EDUCATION INSURANCE COMMITTEE HEALTH BENEFIT FOR RETIRED LOCAL EDUCATION EMPLOYEES Under present law, the local education insurance committee must establish a health benefit, as the local education insurance committee deems necessary and reasonable, for retired local education employees. The health benefit may be made available to retired employees who are drawing retirement benefits either through the consolidated retirement system or through a non-TCRS retirement program sponsored by a participating local education agency. This amendment deletes these provisions, instead authorizing the local education insurance committee to establish basic health plans and voluntary benefits, as the local education committee deems necessary and reasonable, for retired local education employees. The benefits may be made available to all eligible retired local education employees; provided, that an eligible retired local education employee who is vested in TCRS must be drawing retirement benefits through that system to be able to also participate in the health benefits authorized. GENERALLY This amendment adds that subject to the approval of the state insurance committee and the local education insurance committee, all retired local education employees participating in TCRS may participate in the supplemental medical program described above; provided, that retired employees are covered by Medicare and are also drawing a monthly retirement allowance from TCRS. If, pursuant to a contract authorized the provider or administrator returns or refunds any amounts by which premiums or fees exceed expenses, the amounts must be used only for the supplemental medical insurance program for retired employees. The returns or refunds must not be used to reduce the amount of state funding that would otherwise be required. This amendment provides that from the appropriations made in the general appropriations act each year for that purpose, the state insurance committee may pay an amount on behalf of each participating retiree toward the cost of supplemental medical insurance at the same level and one the same terms as established by the state insurance committee. However, former local education employees, other than those specified above, who elect to participate in the program must pay the total cost of such coverage. The chief governing body of a local education employer may pass a resolution to make contributions toward the expense of such coverages; provided, that the amount, terms, and conditions of contributions must be, at all times, the same as that established by the state insurance committee. For determining the employer's contribution level, years of service is defined as only those years of service rendered by the retired employee to the resolving employer and upon which the retired employee's monthly retirement allowance is based. The resolution to make contributions on behalf of retired employees must remain in effect until revoked by the chief governing body. The budget of an employer electing to make contributions must include an amount sufficient to pay contributions on behalf of its retired employees covered by the supplemental insurance program. The employer must pay the contributions to the insurer in a manner directed by the state insurance committee. The supplemental medical insurance benefit authorized by this amendment is not available to a person otherwise qualified whose initial employment with a participating local education agency or other qualifying employer commenced on or after July 1, 2015. The rights of election, transfer, and enrollment conferred by this section is not available to a person whose initial employment with a participating local education agency, the state, or other governmental agency qualifying the person for plan membership commenced on or after July 1, 2015. LOCAL GOVERNMENT INSURANCE COMMITTEE HEALTH BENEFIT FOR RETIRED LOCAL GOVERNMENT EMPLOYEES Under present law, the local government insurance committee may establish a health benefit, as the local government insurance committee deems necessary and reasonable, for retired local government employees. The health benefit may be made available to retired employees who are drawing retirement benefits either through TCRS or through a non-TCRS retirement program sponsored by a participating local government agency. This amendment deletes the present law provisions and instead authorizes the local government insurance committee to establish basic health plan benefits and voluntary benefits, as the local government insurance committee deems necessary and reasonable, for retired local government employees. The health benefits may be made available to all eligible retired local government employees as long as an eligible retired local government employee who is vested in TCRS must be drawing retirement benefits through that system to receive the health benefits authorized. Under present law, subject to the approval of the state insurance committee, retired county judges, county officials, and employees of employers participating in TCRS may participate in the supplemental medical insurance program established by law as long as retired employees are covered by Medicare benefits and are drawing a monthly retirement allowance from TCRS. The state must not assume any cost nor provide any funding toward the payment of premiums. This amendment adds that participation is also subject to the approval of the local government insurance committee. ON APRIL 3, 2023, THE HOUSE SUBSTITUTED SENATE BILL 276 FOR HOUSE BILL 324, ADOPTED AMENDMENT #2, AND PASSED SENATE BILL 276, AS AMENDED. AMENDMENT #2 incorporates the changes made by Senate Amendment #1, but reduces the amount of paid leave required from 12 to six weeks.