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STATE OF OKLAHOMA
2nd Session of the 60th Legislature (2026)
SENATE BILL 1342 By: Hamilton
AS INTRODUCED
An Act relating to school district employees;
amending 70 O.S. 2021, Section 26-105, as amended by
Section 3, Chapter 245, O.S.L. 2024 (70 O.S. Supp.
2025, Section 26-105), which relates to use of
flexible benefit allowance; increasing amount in lieu
of flexible benefit allowance for certain personnel;
updating statutory reference; updating statutory
language; and providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 70 O.S. 2021, Section 26-105, as
amended by Section 3, Chapter 245, O.S.L. 2024 (70 O.S. Supp. 2025,
Section 26-105), is amended to read as follows:
Section 26-105. A. 1. The flexible benefit allowance shall be
used by a school district employee who is participating in the
cafeteria plan to purchase major medical health care plan coverage
offered by the school district through a cafeteria plan. Any excess
flexible benefit allowance over the cost of the major medical
coverage purchased by the employee who is participating in the
cafeteria plan may be used to purchase any of the additional
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benefits offered by the school district or may be taken as taxable
compensation as provided in subsection C of this section.
2. Certified personnel who choose not to participate in the
school-district-sponsored cafeteria plan prior to the effective date
of this act shall receive Sixty-nine Dollars and seventy-one cents
($69.71) per month as taxable compensation in lieu of the flexible
benefit allowance amount provided in subsection B of this section.
3. Support personnel who choose not to participate in the
school-district-sponsored cafeteria plan prior to the effective date
of this act shall receive One Hundred Eighty-nine Dollars and sixty-
nine cents ($189.69) per month as taxable compensation in lieu of
the flexible benefit allowance amount provided in subsection B of
this section.
4. On and after the effective date of this act, certified and
support personnel who choose not to participate in the school-
district-sponsored cafeteria plan shall receive Five Hundred Dollars
($500.00) per month as taxable compensation in lieu of the flexible
benefit allowance amount provided in subsection B of this section.
B. Each eligible school district employee shall be credited
annually with a specified amount as a flexible benefit allowance
which shall be available for the purchase of benefits. The amount
of the flexible benefit allowance credited to each eligible school
district employee shall be communicated to the employee prior to the
enrollment period for each plan year.
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1. For the fiscal year ending June 30, 2002, the flexible
benefit allowance amount for certified personnel shall be no less
than Sixty-nine Dollars and seventy-one cents ($69.71) per month.
For the fiscal year ending June 30, 2002, the flexible benefit
allowance amount for support personnel shall be no less than One
Hundred Eighty-nine Dollars and sixty-nine cents ($189.69) per
month.
2. For the fiscal year ending June 30, 2004, the flexible
benefit allowance amount for certified personnel shall be no less
than fifty-eight percent (58%) of the premium amount for the
HealthChoice (Hi) option plan for an individual offered by the
Oklahoma Employees Insurance and Benefits Board. For the fiscal
year ending June 30, 2003, and each fiscal year thereafter, the
flexible benefit allowance amount for support personnel shall be no
less than one hundred percent (100%) of the premium amount for the
HealthChoice (Hi) option plan for an individual offered by the
Oklahoma Employees Insurance and Benefits Board.
3. For the fiscal year ending June 30, 2005, and each fiscal
year thereafter, the flexible benefit allowance amount for certified
personnel shall be no less than one hundred percent (100%) of the
premium amount for the HealthChoice (Hi) option plan for an
individual offered by the Oklahoma Employees Insurance and Benefits
Board.
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C. If a school district employee who is participating in the
cafeteria plan elects benefits whose sum total is less than the
flexible benefit allowance, the employee shall receive any excess
flexible benefit allowance as taxable compensation. Such taxable
compensation shall be paid in substantially equal amounts each pay
period over the plan year. Except as otherwise provided for in
subsection D of this section, on termination during a plan year, a
participating school district employee shall have no right to
receive any taxable cash compensation allocated to the portion of
the plan year after the termination of the employee.
D. In cases where the employee of a school district fulfills
the terms of their his or her contract and terminates employment for
the subsequent year, the employee shall be entitled to the flexible
benefit allowance for the remainder of the current benefit term.
For purposes of this subsection, “benefit term” shall mean the
twelve-month period after the initiation of benefits for the
position held by the employee.
E. Each school district employee shall make an annual election
of benefits under the plan during an enrollment period to be held
prior to the beginning of each plan year. The enrollment period
dates will be determined annually and will be announced by the
school district, providing provided the enrollment period shall end
no later than thirty (30) days before the beginning of the plan
year. Each school district employee shall make an irrevocable
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advance election for the plan year or the remainder of the plan year
pursuant to procedures the school district shall prescribe.
F. The school district shall prescribe the forms that school
district employees shall be required to use in making their
elections, and may prescribe deadlines and other procedures for
filing the elections.
G. School district employees hired after the closing of the
enrollment period shall be allowed to make an election as provided
in this act Section 26-101 et seq. of this title.
H. A school district board of education shall have the option
of providing a flexible benefit allowance to the superintendent of
the school district in an amount not more than the amount of the
flexible benefit allowance established for certified personnel in
subsection B of this section. Funding for the flexible benefit
allowance for a superintendent shall be provided through local
revenue.
SECTION 2. This act shall become effective November 1, 2026.
60-2-2514 EB 12/30/2025 9:14:37 AM