As Amended
SEC. 25-15-263. Assessment of late charges and other penalties; witholding of disbursements; remittance of premiums to department; disposition of premiums remitted to department.
(1) The Department of Finance and Administration has the authority to establish and enforce late charges and interest penalties or other penalties for the purpose of requiring the prompt payment of all premiums for health insurance permitted under this article. If any premiums for health insurance and/or late charges and interest penalties are not paid by a school district in a timely manner, as defined by the department, the Department of Education shall withhold minimum program payments to that district in accordance with Section 37-19-34. If any premiums for health insurance and/or late charges and interest penalties are not paid by a community/junior college in a timely manner, as defined by the department, the Mississippi Board for Community and Junior Colleges, upon notice by the department, shall immediately withhold all subsequent disbursement of funds. If any premiums for health insurance and/or late charges and interest penalties are not paid by a public library system in a timely manner, as defined by the department, the Mississippi Library Commission, upon notice by the department, shall immediately withhold all subsequent disbursements of funds.
(2) School districts, community/junior colleges and public libraries shall remit to the department those premiums for employees whose cost of the insurance plan is paid in full by the state, by the school district, community/junior college or public library, in full or in part, or by the employee whose premium is deductible from the employee's salary for dependent coverage or employee coverage.
(3) All premiums remitted to the department shall be deposited directly into a depository bank or a special fund in the State Treasury, as determined by the department. Funds maintained in a depository bank or in the State Treasury and interest earned on these funds may be used for the disbursement of claims and shall be exempt from the appropriation process. All funds in excess of the amount needed for disbursement of claims shall be deposited into a special fund in the State Treasury to be known as the Public School Employees Insurance Fund. The State Treasurer shall invest all funds in the Public School Employees Insurance Fund and all interest earned shall be credited to the Public School Employees Insurance Fund. Such funds shall be placed with one or more depositories of the state and invested on the first day such funds are available for investment in certificates of deposit, repurchase agreements or in United States Treasury bills or as otherwise authorized by law for the investment of Public Employees' Retirement System funds, as long as such investment is made from competitive offering and at the highest and best market rate obtainable consistent with any available investment alternatives; provided, however, that such investments shall not be made in shares of stock, common or preferred, or in any other investments which would mature more than one (1) year from the date of investment. The department shall have authority to draw from this fund periodically such funds as are necessary to operate the self-insurance plan or to pay to the insurance carrier the cost of operation of this plan.
(4) The department shall create a Public School Health Insurance Reserve Fund, and funds therein shall be invested by the State Treasurer with all interest earned credited to the Public School Employees Insurance Fund.
SOURCES: Laws, 1991, ch. 558, Sec. 7. Laws, 1993, ch. 533, Sec. 4; 1994, ch. 615, Sec. 4; 1995, ch. 449, Sec. 4, eff from and after July 1, 1995