May 28, 2009, Introduced by Reps. Young, Geiss and Tlaib and referred to the Committee on Labor.
A bill to encourage and expand the use of cafeteria plans by
small employers; to create a fund; to authorize grants; to provide
powers and duties of certain state departments and officers; and to
authorize the promulgation of rules.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the "small
employer health benefits cafeteria plan development program act".
Sec. 2. As used in this act:
(a) "Cafeteria plan" means a benefit plan authorized under
section 125 of the internal revenue code of 1986, 26 USC 125, that
allows an employee to pay medical expenses with pretax dollars.
(b) "Department" means the department of community health.
(c) "Fund" means the cafeteria plan implementation assistance
fund created in section 4.
(d) "Small employer" means an employer that employs 50 or
fewer employees.
Sec. 3. (1) Subject to appropriation and in accordance with
the provisions of this act, the department may provide grants from
the fund to small employers that do not already have a cafeteria
plan for the purpose of establishing a cafeteria plan.
(2) The department shall develop and implement marketing
strategies to ensure that small employers are aware of the program
established in this act and to demonstrate the benefits to both the
employer and employee of establishing a cafeteria plan.
(3) The department may contract with third-party
administrators of cafeteria plans to help develop and implement the
provisions of this act.
(4) The department shall seek and apply for federal funds to
implement this act.
Sec. 4. (1) The cafeteria plan implementation assistance fund
is created in the state treasury.
(2) The state treasurer may receive money or other assets from
any source for deposit into the fund. The state treasurer shall
direct the investment of the fund. The state treasurer shall credit
to the fund interest and earnings from fund investments.
(3) Money in the fund at the close of the fiscal year shall
remain in the fund and shall not lapse to the general fund.
(4) The department shall be the administrator of the fund for
auditing purposes.
(5) The department shall expend money from the fund, upon
appropriation, only for purposes permitted under this act.
Sec. 5. The department may promulgate rules under the
administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to
24.328, to implement this act.