Common use of Rural Subsidy Program Clause in Contracts

Rural Subsidy Program. Effective January 1, 2000, the State shall establish a rural subsidy program for Bargaining Unit 3 members, which may be administered in conjunction with a similar program for State employees in other bargaining units, for excluded employees, and for annuitants. The Department of Personnel Administration shall administer any fund involving Bargaining Unit 3 members. A. The program shall operate in the following fashion: 1. The State shall contribute $1,500 per year on behalf of each bargaining unit member (employee) who lives in a defined rural area, as more definitely described in Government Code Section 22825.01, a copy of which the code is attached hereto and hereby incorporated herein by reference. a. For Bargaining Unit 3 members, because a substantial number of them are seasonal employees, payments shall be on a monthly basis. b. For permanent employees, as in the “Medical Reimbursement Account” situation, the employee does not have to wait for reimbursement of covered medical expenses until the full amount has been deposited. 2. As to any employee who enters State service or leaves State service during a fiscal year, contributions for such employee shall be made on a pro rata basis. A similar computation shall be used for anyone entering or leaving the bargaining unit (e.g., promotion in midfiscal year). 3. The money shall be available for use as defined in Government Code Section 22825.01. 4. Pursuant to the code, a Rural Healthcare Equity Trust Fund(s) (hereafter Fund) will be established with a separate account for Bargaining Unit 3 members, as one of several similar accounts. 5. Each Unit 3 eligible employee shall be able to utilize up to $1,500 per year, pursuant to the code, but with the exceptions for greater utilization hereafter noted. The pro rata limitation pursuant to paragraph 2. is applicable here. 6. If an employee does not utilize the complete $1,500 pursuant to the procedures and limitations described in the code, then the unused monies shall be put in a “same year pool.” That same year pool shall be utilized to pay those who have incurred health care expenses in excess of the $1,500, but again according to the procedures and limitations in the code. The monies in the same year pool would be distributed at the end, or even soon after, each fiscal year to that group of employees who had expenses in excess of $1,500 in the relevant fiscal year. Those monies shall be distributed on a pro tanto (pro rata) basis. a. Any employee not in Bargaining Unit 3 all year shall receive credit under this paragraph 6. utilizing the same pro rata formula as in paragraph 2. above. b. If an employee is entitled to less than $25 under this paragraph 6., the money shall instead go into next year’s fund pursuant to paragraph 7. hereafter. 7. If monies still remain after a distribution to such employees (i.e., all employees who spent more than $1,500 as provided in the bill were completely reimbursed), then those surplus monies shall be rolled over into the next fiscal year’s funds available for distribution to employees whose expenses pursuant to the bill exceed $1,500 in such subsequent year. Similar “rollovers” would occur in any years where all employees were completely reimbursed (or had payments made on their behalf) pursuant to the bill and monies still remained in the pool. 8. Beyond the text of the bill, the parties will structure and administer the fund accordance with all applicable IRS and other regulatory statutes and rules. 9. Interest earned from the fund(s), shall be used to offset administrative costs. 10. Notwithstanding the above, if the IRS shall determine that the above benefit violates its statutes or rules (e.g., the payments by the State employer are taxable), then the above provisions shall be of no further force and effect. The parties will negotiate under the Xxxxx Act for a replacement benefit, which shall be “cost neutral” to the employer.

Rural Subsidy Program. Effective January 1, 2000, the State shall establish a rural subsidy program for Bargaining Unit 3 21 members, which may be administered in conjunction with a similar program for State employees in other bargaining units, for excluded employees, and for annuitants. The Department of Personnel Administration shall administer any fund involving Bargaining Unit 3 21 members. A. The program shall operate in the following fashion: 1. The State shall contribute $1,500 per year on behalf of each bargaining unit member (employee) who lives in a defined rural area, as more definitely described in Government Code Section 22825.01Senate Bill 514 (Senator Xxxxxxx), a copy of which the code xxxx is attached hereto and hereby incorporated herein by reference. a. For Bargaining Unit 3 21 members, because a substantial number of them are seasonal employees, payments shall be on a monthly basis. b. For permanent employees, as in the “Medical Reimbursement Account” situation, the employee does not have to wait for reimbursement of covered medical expenses until the full amount has been deposited. 2. As to any employee who enters State service or leaves State service during a fiscal year, contributions for such employee shall be made on a pro rata basis. A similar computation shall be used for anyone entering or leaving the bargaining unit (e.g., promotion in midfiscal year). 3. The money shall be available for use as defined in Government Code Section 22825.01. 4. Pursuant to the codethat bill, a Rural Healthcare Equity Trust Fund(s) (hereafter Fund) will be established with a separate account for Bargaining Unit 3 21 members, as one of several similar accounts. 5. Each Unit 3 eligible 21 employee shall be able to utilize up to $1,500 per year, pursuant to the codesaid bill, but with the exceptions for greater utilization hereafter noted. The pro rata limitation pursuant to paragraph 2. is applicable here. 6. If an employee does not utilize the complete $1,500 pursuant to the procedures and limitations described in the codebill, then the unused monies shall be put in a “same year pool.” That same year pool shall be utilized to pay those who have incurred health care expenses in excess of the $1,500, but again according to the procedures and limitations in the codeattached bill. The monies in the same year pool would be distributed at the end, or even soon after, each fiscal year to that group of employees who had expenses in excess of $1,500 in the relevant fiscal year. Those monies shall be distributed on a pro tanto (pro rata) basis. a. Any employee not in Bargaining Unit 3 21 all year shall receive credit under this paragraph 6. utilizing the same pro rata formula as in paragraph 2. above. b. If an employee is entitled to less than $25 under this paragraph 6., the money shall instead go into next year’s fund pursuant to paragraph 76. hereafter. 7. If monies still remain after a distribution to such employees (i.e., all employees who spent more than $1,500 as provided in the bill were completely reimbursed), then those surplus monies shall be rolled over into the next fiscal year’s funds available for distribution to employees whose expenses pursuant to the bill exceed $1,500 in such subsequent year. Similar “rollovers” would occur in any years where all employees were completely reimbursed (or had payments made on their behalf) pursuant to the bill and monies still remained in the pool. 8. Beyond the text of the bill, the parties will structure and administer the fund accordance with all applicable IRS and other regulatory statutes and rules. 9. Interest earned from the fund(s), shall be used to offset administrative costs. 10. Notwithstanding the above, if the IRS shall determine that the above benefit violates its statutes or rules (e.g., the payments by the State employer are taxable), then the above provisions shall be of no further force and effect. The parties will negotiate under the Xxxxx Act for a replacement benefit, which shall be “cost neutral” to the employer.

Rural Subsidy Program. Effective January 1, 2000, the State shall establish a rural subsidy program for Bargaining Unit 3 20 members, which may be administered in conjunction with a similar program for State employees in other bargaining units, for excluded employees, and for annuitants. The Department of Personnel Administration shall administer any fund involving Bargaining Unit 3 20 members. A. The program shall operate in the following fashion: 1. The State shall contribute $1,500 per year on behalf of each bargaining unit member (employee) who lives in a defined rural area, as more definitely described in Government Code Section 22825.01, a copy of which the code is attached hereto and hereby incorporated herein by reference. a. For Bargaining Unit 3 20 members, because a substantial number of them are seasonal employees, payments shall be on a monthly basis. b. For permanent employees, as in the “Medical Reimbursement Account” situation, the employee does not have to wait for reimbursement of covered medical expenses until the full amount has been deposited. 2. As to any employee who enters State service or leaves State service during a fiscal year, contributions for such employee shall be made on a pro rata basis. A similar computation shall be used for anyone entering or leaving the bargaining unit (e.g., promotion in midfiscal year). 3. The money shall be available for use as defined in Government Code Section 22825.01. 4. Pursuant to the codethat bill, a Rural Healthcare Equity Trust Fund(s) (hereafter Fund) will be established with a separate account for Bargaining Unit 3 20 members, as one of several similar accounts. 5. Each Unit 3 eligible 20 employee shall be able to utilize up to $1,500 per year, pursuant to the codesaid bill, but with the exceptions for greater utilization hereafter noted. The pro rata limitation pursuant to paragraph 2. is applicable here. 6. If an employee does not utilize the complete $1,500 pursuant to the procedures and limitations described in the codebill, then the unused monies shall be put in a “same year pool.” That same year pool shall be utilized to pay those who have incurred health care expenses in excess of the $1,500, but again according to the procedures and limitations in the codeattached bill. The monies in the same year pool would be distributed at the end, or even soon after, each fiscal year to that group of employees who had expenses in excess of $1,500 in the relevant fiscal year. Those monies shall be distributed on a pro tanto (pro rata) basis. a. Any employee not in Bargaining Unit 3 20 all year shall receive credit under this paragraph 6. utilizing the same pro rata formula as in paragraph 2. above. b. If an employee is entitled to less than $25 under this paragraph 6., the money shall instead go into next year’s fund pursuant to paragraph 76. hereafter. 7. If monies still remain after a distribution to such employees (i.e., all employees who spent more than $1,500 as provided in the bill were completely reimbursed), then those surplus monies shall be rolled over into the next fiscal year’s funds available for distribution to employees whose expenses pursuant to the bill exceed $1,500 in such subsequent year. Similar “rollovers” would occur in any years where all employees were completely reimbursed (or had payments made on their behalf) pursuant to the bill and monies still remained in the pool. 8. Beyond the text of the bill, the parties will structure and administer the fund accordance with all applicable IRS and other regulatory statutes and rules. 9. Interest earned from the fund(s), shall be used to offset administrative costs. 10. Notwithstanding the above, if the IRS shall determine that the above benefit violates its statutes or rules (e.g., the payments by the State employer are taxable), then the above provisions shall be of no further force and effect. The parties will negotiate under the Xxxxx Act for a replacement benefit, which shall be “cost neutral” to the employer.

Rural Subsidy Program. Effective January 1, 2000, the A. The State shall establish a rural subsidy program for Bargaining Unit 3 9 members, which may be administered in conjunction with a similar program for State state employees in other bargaining units, for excluded employees, and for annuitants. The Department of Personnel Administration DPA shall administer any fund involving Bargaining Unit 3 9 members. A. B. The program shall operate in the following fashion: 1. The State shall contribute $1,500 per year on behalf of each bargaining unit member (employee) who lives in a defined rural area, as more definitely described in Government Code Section 22825.01Senate Bill 514 (Senator Xxxxxxx), a copy of which the code xxxx is attached hereto and hereby incorporated herein by reference. a. . For Bargaining Unit 3 9 members, because a substantial number of them are seasonal employees, payments shall may be on a monthly basis. b. a. For permanent employees, as in the “Medical Reimbursement Account” situation, the employee does not have to wait for reimbursement of covered medical expenses until the full amount has been deposited. 2. As to any employee who enters State state service or leaves State state service during a fiscal year, contributions for such employee shall be made on a pro rata basis. A similar computation shall be used for anyone entering or leaving the bargaining unit (e.g., promotion in midfiscal mid-fiscal year). 3. The money shall be available for use as defined in Government Code Section 22825.01SB 514. 4. Pursuant to the codethat bill, a Rural Healthcare Equity Trust Fund(s) (hereafter Fund) will be established with a separate account for Bargaining Unit 3 9 members, as one of several similar accounts. 5. Each Unit 3 eligible 9 employee shall be able to utilize up to $1,500 per year, pursuant to the codesaid bill, but with the exceptions for greater utilization hereafter noted. The pro rata limitation pursuant to paragraph 2. is applicable here. 6. If an employee does not utilize the complete $1,500 pursuant to the procedures and limitations described in the codebill, then the unused monies shall be put in a “same year pool.” ”. That same year pool shall be utilized to pay those who have incurred health care expenses in excess of the $1,500, but again according to the procedures and limitations in the codeattached bill. The monies in the same year pool would be distributed at the end, or even soon after, each fiscal year to that group of employees who had expenses in excess of $1,500 in the relevant fiscal year. Those monies shall be distributed on a pro tanto (pro rata) basis. a. Any employee not in Bargaining Unit 3 9 all year shall receive credit under this paragraph 6. 6 utilizing the same pro rata formula as in paragraph 2. 2 above. b. If an employee is entitled to less than $25 25.00 under this paragraph 6., the money shall instead go into next year’s fund pursuant to paragraph 7. 6 hereafter. 7. If monies still remain after a distribution to such employees (i.e., all employees who spent more than $1,500 as provided in the bill were completely reimbursed), then those surplus monies shall be rolled over into the next fiscal year’s funds available for distribution to employees whose expenses pursuant to the bill exceed $1,500 in such subsequent year. Similar “rollovers” would occur in any years where all employees were completely reimbursed (or had payments made on their behalf) pursuant to the bill and monies still remained in the pool. 8. Beyond the text of the bill, the parties will structure and administer the fund accordance with all applicable IRS and other regulatory statutes and rules. 9. Interest earned from the fund(s), shall be used to offset administrative costs. 10. Notwithstanding the above, if the IRS shall determine that the above benefit violates its statutes or rules (e.g., the payments by the State employer are taxable), then the above provisions shall be of no further force and effect. The parties will negotiate under the Xxxxx Act for a replacement benefit, which shall be “cost neutral” to the employer.

Rural Subsidy Program. Effective January 1, 2000, the State shall establish a rural subsidy program for Bargaining Unit 3 14 members, which may be administered in conjunction with a similar program for State employees in other bargaining units, for excluded employees, and for annuitants. The Department of Personnel Administration DPA shall administer any fund involving Bargaining Unit 3 14 members. A. The program shall operate in the following fashion: 1. The State shall contribute $1,500 per year on behalf of each bargaining unit member (employee) who lives in a defined rural area, as more definitely described in Government Code Section 22825.01Chapter 743, a Statutes of 1999 (Senate Bill 514 Senator Xxxxxxx). A copy of which the code bill is attached hereto and hereby incorporated herein by reference. a. For Bargaining Unit 3 14 members, because a substantial number of them are seasonal employees, payments shall be on a monthly basis. b. For permanent employees, as in the “Medical Reimbursement Account” situation, the employee does not have to wait for reimbursement of covered medical expenses until the full amount has been deposited. 2. As to any employee who enters State service or leaves State service during a fiscal year, contributions for such employee shall be made on a pro rata basis. A similar computation shall be used for anyone entering or leaving the bargaining unit (e.g., promotion in midfiscal mid-fiscal year). 3. The money shall be available for use as defined in Government Code Section 22825.01. 4. Pursuant to the codethat bill, a Rural Healthcare Equity Trust Fund(s) (hereafter Fund) will be established with a separate account for Bargaining Unit 3 14 members, as one of several similar accounts. 5. Each Unit 3 eligible 14 employee shall be able to utilize up to $1,500 per year, pursuant to the codesaid bill, but with the exceptions for greater utilization hereafter noted. The pro rata limitation pursuant to paragraph 2. is applicable here. 6. If an employee does not utilize the complete $1,500 pursuant to the procedures and limitations described in the codebill, then the unused monies shall be put in a “same year pool.” That same year pool shall be utilized to pay those who have incurred health care expenses in excess of the $1,500, but again according to the procedures and limitations in the codeattached bill. The monies in the same year pool would be distributed at the end, or even soon after, each fiscal year to that group of employees who had expenses in excess of $1,500 in the relevant fiscal year. Those monies shall be distributed on a pro tanto (pro rata) basis. a. Any employee not in Bargaining Unit 3 14 all year shall receive credit under this paragraph 6. 6 utilizing the same pro rata formula as in paragraph 2. 2 above. b. If an employee is entitled to less than $25 25.00 under this paragraph 6., the money shall instead go into next year’s fund pursuant to paragraph 7. 6 hereafter. 7. If monies still remain after a distribution to such employees (i.e., all employees who spent more than $1,500 as provided in the bill were completely reimbursed), then those surplus monies shall be rolled over into the next fiscal year’s funds available for distribution to employees whose expenses pursuant to the bill exceed $1,500 in such subsequent year. Similar “rollovers” would occur in any years where all employees were completely reimbursed (or had payments made on their behalf) pursuant to the bill and monies still remained in the pool. 8. Beyond the text of the bill, the parties will structure and administer the fund in accordance with all applicable IRS and other regulatory statutes and rules. 9. Interest earned from the fund(s), shall be used to offset administrative costs. 10. Notwithstanding the above, if the IRS shall determine that the above benefit violates its statutes or rules (e.g., the payments by the State employer are taxable), then the above provisions shall be of no further force and effect. The parties will negotiate under the Xxxxx Act for a replacement benefit, which shall be “cost neutral” to the employer.

Rural Subsidy Program. A. Effective January 1, 2000, the State shall establish a rural subsidy program Rural Subsidy Program for Bargaining Unit 3 15 members, which may be administered in conjunction with a similar program for State employees in other bargaining units, for excluded employees, and for annuitants. The Department of Personnel Administration DPA shall administer any fund involving Bargaining Unit 3 15 members. A. . The program shall operate in the following fashion: 1. The State shall contribute $1,500 1,500.00 per year on behalf of each bargaining unit member (employee) who lives in a defined rural area, as more definitely definitively described in Government Code Section 22825.01Senate Bill 514 (Senator Xxxxxxx), a copy of which the code Xxxx is attached hereto and hereby incorporated herein by reference. a. . For Bargaining Unit 3 15 members, because a substantial number of them are seasonal employees, payments shall be on a monthly basis. b. a. For permanent employees, as in the “Medical Reimbursement Account” situation, the employee does not have to wait for reimbursement of covered medical expenses until the full amount has been deposited. 2. As to any employee who enters State service or leaves State service during a fiscal year, contributions for such employee shall be made on a pro rata basis. A similar computation shall be used for anyone entering or leaving the bargaining unit (e.g., promotion in midfiscal mid-fiscal year). 3. The money shall be available for use as defined in Government Code Section 22825.01SB 514. 4. Pursuant to the codethat Bill, a Rural Healthcare Equity Trust Fund(s) (hereafter Fund) will be established with a separate account for Bargaining Unit 3 15 members, as one of several similar accounts. 5. Each Unit 3 eligible 15 employee shall be able to utilize up to $1,500 1,500.00 per year, pursuant to the codesaid Bill, but with the exceptions for greater utilization hereafter noted. The pro rata limitation pursuant to paragraph 2. ., is applicable here. 6. If an employee does not utilize the complete $1,500 1,500.00 pursuant to the procedures and limitations described in the codeBill, then the unused monies shall be put in a the “same year pool.” ”. That same year pool shall be utilized to pay those who have incurred health care expenses in excess of the $1,5001,500.00, but again according to the procedures and limitations in the codeattached Bill. The monies in the same year pool would be distributed at the end, or even soon after, each fiscal year to that group of employees who had expenses in excess of $1,500 1,500.00 in the relevant fiscal year. Those monies shall be distributed on a pro tanto (pro rata) basis. a. Any employee not in Bargaining Unit 3 15 all year shall receive credit under this paragraph 6. Paragraph 6 utilizing the same pro rata formula as in paragraph 2. Paragraph 2 above. b. If an employee is entitled to less than $25 25.00 under this paragraph Paragraph 6., the money shall instead go into next year’s fund pursuant to paragraph 7. Paragraph 6 hereafter. 7. If monies Monies still remain remaining after a distribution to such employees (i.e., all employees who spent more than $1,500 1,500.00 as provided in the bill Bill were completely reimbursed), then those surplus monies shall be rolled over into the next fiscal year’s years’ funds available for distribution to employees whose expenses pursuant to the bill Bill exceed $1,500 1,500.00 in such subsequent year. Similar “rollovers” would occur in any years where all employees were completely reimbursed (or had payments made on their behalf) pursuant to the bill and monies still remained in the pool. 8. Beyond the text of the billBill, the parties will structure and administer the fund in accordance with all applicable IRS and other regulatory statutes and rules. 9. Interest earned from the fund(s), shall be used to offset administrative costs. 10. Notwithstanding the above, if the IRS shall determine that the above benefit violates its statutes statues or rules (e.g., the payments by the State employer are taxable), then the above provisions shall be of no further force and effect. The parties will negotiate under the Xxxxx Act for a replacement benefit, which shall be “cost neutral” to the employer.

Rural Subsidy Program. Effective January 1, 2000, the State shall establish a rural subsidy program for Bargaining Unit 3 4 members, which may be administered in conjunction with a similar program for State employees in other bargaining units, for excluded employees, and for annuitants. The Department of Personnel Administration shall administer any fund involving Bargaining Unit 3 4 members. A. The program shall operate in the following fashion: 1. The State shall contribute $1,500 per year on behalf of each bargaining unit member (employee) who lives in a defined rural area, as more definitely described in Government Code Section 22825.01, a copy of which the code is attached hereto and hereby incorporated herein by reference. a. For Bargaining Unit 3 4 members, because a substantial number of them are seasonal employees, payments shall be on a monthly basis. b. For permanent employees, as in the “Medical Reimbursement Account” situation, the employee does not have to wait for reimbursement of covered medical expenses until the full amount has been deposited. 2. As to any employee who enters State service or leaves State service during a fiscal year, contributions for such employee shall be made on a pro rata basis. A similar computation shall be used for anyone entering or leaving the bargaining unit (e.g., promotion in midfiscal year). 3. The money shall be available for use as defined in Government Code Section 22825.01. 4. Pursuant to the codethat bill, a Rural Healthcare Equity Trust Fund(s) (hereafter Fund) will be established with a separate account for Bargaining Unit 3 4 members, as one of several similar accounts. 5. Each Unit 3 eligible 4 employee shall be able to utilize up to $1,500 per year, pursuant to the codesaid bill, but with the exceptions for greater utilization hereafter noted. The pro rata limitation pursuant to paragraph 2. is applicable here. 6. If an employee does not utilize the complete $1,500 pursuant to the procedures and limitations described in the codebill, then the unused monies shall be put in a “same year pool.” That same year pool shall be utilized to pay those who have incurred health care expenses in excess of the $1,500, but again according to the procedures and limitations in the codeattached bill. The monies in the same year pool would be distributed at the end, or even soon after, each fiscal year to that group of employees who had expenses in excess of $1,500 in the relevant fiscal year. Those monies shall be distributed on a pro tanto (pro rata) basis. a. Any employee not in Bargaining Unit 3 4 all year shall receive credit under this paragraph 6. utilizing the same pro rata formula as in paragraph 2. above. b. If an employee is entitled to less than $25 under this paragraph 6., the money shall instead go into next year’s fund pursuant to paragraph 76. hereafter. 7. If monies still remain after a distribution to such employees (i.e., all employees who spent more than $1,500 as provided in the bill were completely reimbursed), then those surplus monies shall be rolled over into the next fiscal year’s funds available for distribution to employees whose expenses pursuant to the bill exceed $1,500 in such subsequent year. Similar “rollovers” would occur in any years where all employees were completely reimbursed (or had payments made on their behalf) pursuant to the bill and monies still remained in the pool. 8. Beyond the text of the bill, the parties will structure and administer the fund accordance with all applicable IRS and other regulatory statutes and rules. 9. Interest earned from the fund(s), shall be used to offset administrative costs. 10. Notwithstanding the above, if the IRS shall determine that the above benefit violates its statutes or rules (e.g., the payments by the State employer are taxable), then the above provisions shall be of no further force and effect. The parties will negotiate under the Xxxxx Act for a replacement benefit, which shall be “cost neutral” to the employer.

Rural Subsidy Program. Effective January 1, 2000, the State shall establish a rural subsidy program for Bargaining Unit 3 1 members, which may be administered in conjunction with a similar program for State employees in other bargaining units, for excluded employees, and for annuitants. The Department of Personnel Administration shall administer any fund involving Bargaining Unit 3 1 members. A. The program shall operate in the following fashion: 1. The State shall contribute $1,500 per year on behalf of each bargaining unit member (employee) who lives in a defined rural area, as more definitely described in Government Code Section 22825.01, a copy of which the code is attached hereto and hereby incorporated herein by reference. a. For Bargaining Unit 3 members1members, because a substantial number of them are seasonal employees, payments shall be on a monthly basis. b. For permanent employees, as in the “Medical Reimbursement Account” situation, the employee does not have to wait for reimbursement of covered medical expenses until the full amount has been deposited. 2. As to any employee who enters State service or leaves State service during a fiscal year, contributions for such employee shall be made on a pro rata basis. A similar computation shall be used for anyone entering or leaving the bargaining unit (e.g., promotion in midfiscal year). 3. The money shall be available for use as defined in Government Code Section 22825.01. 4. Pursuant to the code, a A Rural Healthcare Equity Trust Fund(s) (hereafter Fund) will be established with a separate account for Bargaining Unit 3 1 members, as one of several similar accounts. 5. Each Unit 3 eligible 1 employee shall be able to utilize up to $1,500 per year, pursuant to the codesaid bill, but with the exceptions for greater utilization hereafter noted. The pro rata limitation pursuant to paragraph 2. is applicable here. 6. If an employee does not utilize the complete $1,500 pursuant to the procedures and limitations described in the codeGovernment Code Section 22825.01, then the unused monies shall be put in a “same year pool.” That same year pool shall be utilized to pay those who have incurred health care expenses in excess of the $1,500, but again according to the procedures and limitations in the codeattached bill. The monies in the same year pool would be distributed at the end, or even soon after, each fiscal year to that group of employees who had expenses in excess of $1,500 in the relevant fiscal year. Those monies shall be distributed on a pro tanto (pro rata) basis. a. Any employee not in Bargaining Unit 3 1 all year shall receive credit under this paragraph 6. utilizing the same pro rata formula as in paragraph 2. above. b. If an employee is entitled to less than $25 under this paragraph 6., the money shall instead go into next year’s fund pursuant to paragraph 76. hereafter. 7. If monies still remain after a distribution to such employees (i.e., all employees who spent more than $1,500 as provided in the bill were completely reimbursed), then those surplus monies shall be rolled over into the next fiscal year’s funds available for distribution to employees whose expenses pursuant to the bill exceed $1,500 in such subsequent year. Similar “rollovers” would occur in any years where all employees were completely reimbursed (or had payments made on their behalf) pursuant to the bill and monies still remained in the pool. 8. Beyond the text of the billGovernment Code Section 22825.01, the parties will structure and administer the fund accordance with all applicable IRS and other regulatory statutes and rules. 9. Interest earned from the fund(s), shall be used to offset administrative costs. 10. Notwithstanding the above, if the IRS shall determine that the above benefit violates its statutes or rules (e.g., the payments by the State employer are taxable), then the above provisions shall be of no further force and effect. The parties will negotiate under the Xxxxx Act for a replacement benefit, which shall be “cost neutral” to the employer.

Rural Subsidy Program. Effective January 1, 2000, the The State shall establish a rural subsidy program for Bargaining Unit 3 2 members, which may be administered in conjunction with a similar program for State state employees in other bargaining units, for excluded employees, and for annuitants. The Department of Personnel Administration DPA shall administer any fund involving Bargaining Unit 3 2 members. A. . The program shall operate in the following fashion: 1. The State shall contribute $1,500 per year on behalf of each bargaining unit member (employee) who lives in a defined rural area, as more definitely described in Government Code Section 22825.01Senate Bill 514 (Senator Xxxxxxx), a copy of which the code is attached hereto and hereby incorporated herein by reference. a. . For Bargaining Unit 3 2 members, because a substantial number of them are seasonal employees, payments shall may be on a monthly basis. b. a. For permanent employees, as in the “Medical Reimbursement Account” situation, the employee does not have to wait for reimbursement of covered medical expenses until the full amount has been deposited. 2. As to any employee who enters State state service or leaves State state service during a fiscal year, contributions for such employee shall be made on a pro rata basis. A similar computation shall be used for anyone entering or leaving the bargaining unit (e.g., promotion in midfiscal mid-fiscal year). 3. The money shall be available for use as defined in Government Code Section 22825.01SB 514. 4. Pursuant to the codethat bill, a Rural Healthcare Equity Trust Fund(s) (hereafter Fund) will be established with a separate account for Bargaining Unit 3 2 members, as one of several similar accounts. 5. Each Unit 3 eligible 2 employee shall be able to utilize up to $1,500 per year, pursuant to the codesaid bill, but with the exceptions for greater utilization hereafter noted. The pro rata limitation pursuant to paragraph 2. is applicable here. 6. If an employee does not utilize the complete $1,500 pursuant to the procedures and limitations described in the codebill, then the unused monies shall be put in a “same year pool.” ”. That same year pool shall be utilized to pay those who have incurred health care expenses in excess of the $1,500, but again according to the procedures and limitations in the codeattached bill. The monies in the same year pool would be distributed at the end, or even soon after, each fiscal year to that group of employees who had expenses in excess of $1,500 in the relevant fiscal year. Those monies shall be distributed on a pro tanto (pro rata) basis. a. Any employee not in Bargaining Unit 3 2 all year shall receive credit under this paragraph 6. 6 utilizing the same pro rata formula as in paragraph 2. 2 above. b. If an employee is entitled to less than $25 25.00 under this paragraph 6., the money shall instead go into next year’s fund pursuant to paragraph 7. 6 hereafter. 7. If monies still remain after a distribution to such employees (i.e., all employees who spent more than $1,500 as provided in the bill were completely reimbursed), then those surplus monies shall be rolled over into the next fiscal year’s funds available for distribution to employees whose expenses pursuant to the bill exceed $1,500 in such subsequent year. Similar “rollovers” would occur in any years where all employees were completely reimbursed (or had payments made on their behalf) pursuant to the bill and monies still remained in the pool. 8. Beyond the text of the bill, the parties will structure and administer the fund accordance with all applicable IRS and other regulatory statutes and rules. 9. Interest earned from the fund(s), shall be used to offset administrative costs. 10. Notwithstanding the above, if the IRS shall determine that the above benefit violates its statutes or rules (e.g., the payments by the State employer are taxable), then the above provisions shall be of no further force and effect. The parties will negotiate under the Xxxxx Act for a replacement benefit, which shall be “cost neutral” to the employer.

Rural Subsidy Program. Effective January 1, 2000, the A. The State shall establish a rural subsidy program for Bargaining Unit 3 Xxxx 0 members, which may be administered in conjunction with a similar program for State state employees in other bargaining units, for excluded employees, and for annuitants. The Department of Personnel Administration DPA shall administer any fund involving Bargaining Unit 3 Xxxx 0 members. A. B. The program shall operate in the following fashion: 1. The State shall contribute $1,500 per year on behalf of each bargaining unit member (employee) who lives in a defined rural area, as more definitely described in Government Code Section 22825.01Senate Xxxx 514 (Senator Xxxxxxx), a copy of which the code xxxx is attached hereto and hereby incorporated herein by reference. a. . For Bargaining Unit 3 Xxxx 0 members, because a substantial number of them are seasonal employees, payments shall may be on a monthly basis. b. a. For permanent employees, as in the “Medical Reimbursement Account” situation, the employee does not have to wait for reimbursement of covered medical expenses until the full amount has been deposited. 2. As to any employee who enters State state service or leaves State state service during a fiscal year, contributions for such employee shall be made on a pro rata basis. A similar computation shall be used for anyone entering or leaving the bargaining unit (e.g., promotion in midfiscal mid-fiscal year). 3. The money shall be available for use as defined in Government Code Section 22825.01SB 514. 4. Pursuant to the codethat xxxx, a Rural Healthcare Equity Trust Fund(s) (hereafter Fund) will be established with a separate account for Bargaining Unit 3 Xxxx 0 members, as one of several similar accounts. 5. Each Unit 3 eligible 9 employee shall be able to utilize up to $1,500 per year, pursuant to the codesaid xxxx, but with the exceptions for greater utilization hereafter noted. The pro rata limitation pursuant to paragraph 2. is applicable here. 6. If an employee does not utilize the complete $1,500 pursuant to the procedures and limitations described in the codexxxx, then the unused monies shall be put in a “same year pool.” ”. That same year pool shall be utilized to pay those who have incurred health care expenses in excess of the $1,500, but again according to the procedures and limitations in the codeattached xxxx. The monies in the same year pool would be distributed at the end, or even soon after, each fiscal year to that group of employees who had expenses in excess of $1,500 in the relevant fiscal year. Those monies shall be distributed on a pro tanto (pro rata) basis. a. Any employee not in Bargaining Unit 3 9 all year shall receive credit under this paragraph 6. 6 utilizing the same pro rata formula as in paragraph 2. 2 above. b. If an employee is entitled to less than $25 25.00 under this paragraph 6., the money shall instead go into next year’s fund pursuant to paragraph 7. 6 hereafter. 7. If monies still remain after a distribution to such employees (i.e., all employees who spent more than $1,500 as provided in the bill xxxx were completely reimbursed), then those surplus monies shall be rolled over into the next fiscal year’s funds available for distribution to employees whose expenses pursuant to the bill xxxx exceed $1,500 in such subsequent year. Similar “rollovers” would occur in any years where all employees were completely reimbursed (or had payments made on their behalf) pursuant to the bill xxxx and monies still remained in the pool. 8. Beyond the text of the billxxxx, the parties will structure and administer the fund accordance with all applicable IRS and other regulatory statutes and rules. 9. Interest earned from the fund(s), shall be used to offset administrative costs. 10. Notwithstanding the above, if the IRS shall determine that the above benefit violates its statutes or rules (e.g., the payments by the State employer are taxable), then the above provisions shall be of no further force and effect. The parties will negotiate under the Xxxxx Act for a replacement benefit, which shall be “cost neutral” to the employer.

Rural Subsidy Program. Effective January 1, 2000, the State shall establish a rural subsidy program for Bargaining Unit 3 Xxxx 00 members, which may be administered in conjunction with a similar program for State employees in other bargaining units, for excluded employees, and for annuitants. The Department of Personnel Administration shall administer any fund involving Bargaining Unit 3 Xxxx 00 members. A. The program shall operate in the following fashion: 1. The State shall contribute $1,500 per year on behalf of each bargaining unit member (employee) who lives in a defined rural area, as more definitely described in Government Code Section 22825.01Senate Xxxx 514 (Senator Xxxxxxx), a copy of which the code xxxx is attached hereto and hereby incorporated herein by reference. a. For Bargaining Unit 3 Xxxx 00 members, because a substantial number of them are seasonal employees, payments shall be on a monthly basis. b. For permanent employees, as in the “Medical Reimbursement Account” situation, the employee does not have to wait for reimbursement of covered medical expenses until the full amount has been deposited. 2. As to any employee who enters State service or leaves State service during a fiscal year, contributions for such employee shall be made on a pro rata basis. A similar computation shall be used for anyone entering or leaving the bargaining unit (e.g., promotion in midfiscal year). 3. The money shall be available for use as defined in Government Code Section 22825.01. 4. Pursuant to the codethat xxxx, a Rural Healthcare Equity Trust Fund(s) (hereafter Fund) will be established with a separate account for Bargaining Unit 3 Xxxx 00 members, as one of several similar accounts. 5. Each Unit 3 eligible 21 employee shall be able to utilize up to $1,500 per year, pursuant to the codesaid xxxx, but with the exceptions for greater utilization hereafter noted. The pro rata limitation pursuant to paragraph 2. is applicable here. 6. If an employee does not utilize the complete $1,500 pursuant to the procedures and limitations described in the codexxxx, then the unused monies shall be put in a “same year pool.” That same year pool shall be utilized to pay those who have incurred health care expenses in excess of the $1,500, but again according to the procedures and limitations in the codeattached xxxx. The monies in the same year pool would be distributed at the end, or even soon after, each fiscal year to that group of employees who had expenses in excess of $1,500 in the relevant fiscal year. Those monies shall be distributed on a pro tanto (pro rata) basis. a. Any employee not in Bargaining Unit 3 Xxxx 00 all year shall receive credit under this paragraph 6. utilizing the same pro rata formula as in paragraph 2. above. b. If an employee is entitled to less than $25 under this paragraph 6., the money shall instead go into next year’s fund pursuant to paragraph 76. hereafter. 7. If monies still remain after a distribution to such employees (i.e., all employees who spent more than $1,500 as provided in the bill xxxx were completely reimbursed), then those surplus monies shall be rolled over into the next fiscal year’s funds available for distribution to employees whose expenses pursuant to the bill xxxx exceed $1,500 in such subsequent year. Similar “rollovers” would occur in any years where all employees were completely reimbursed (or had payments made on their behalf) pursuant to the bill xxxx and monies still remained in the pool. 8. Beyond the text of the billxxxx, the parties will structure and administer the fund accordance with all applicable IRS and other regulatory statutes and rules. 9. Interest earned from the fund(s), shall be used to offset administrative costs. 10. Notwithstanding the above, if the IRS shall determine that the above benefit violates its statutes or rules (e.g., the payments by the State employer are taxable), then the above provisions shall be of no further force and effect. The parties will negotiate under the Xxxxx Act for a replacement benefit, which shall be “cost neutral” to the employer.

Rural Subsidy Program. Effective January 1, 2000, the State shall establish a rural subsidy program for Bargaining Unit 3 Xxxx 0 members, which may be administered in conjunction with a similar program for State employees in other bargaining units, for excluded employees, and for annuitants. The Department of Personnel Administration shall administer any fund involving Bargaining Unit 3 Xxxx 0 members. A. The program shall operate in the following fashion: 1. The State shall contribute $1,500 per year on behalf of each bargaining unit member (employee) who lives in a defined rural area, as more definitely described in Government Code Section 22825.01, a copy of which the code is attached hereto and hereby incorporated herein by reference. a. For Bargaining Unit 3 Xxxx 0 members, because a substantial number of them are seasonal employees, payments shall be on a monthly basis. b. For permanent employees, as in the “Medical Reimbursement Account” situation, the employee does not have to wait for reimbursement of covered medical expenses until the full amount has been deposited. 2. As to any employee who enters State service or leaves State service during a fiscal year, contributions for such employee shall be made on a pro rata basis. A similar computation shall be used for anyone entering or leaving the bargaining unit (e.g., promotion in midfiscal year). 3. The money shall be available for use as defined in Government Code Section 22825.01. 4. Pursuant to the codethat xxxx, a Rural Healthcare Equity Trust Fund(s) (hereafter Fund) will be established with a separate account for Bargaining Unit 3 Xxxx 0 members, as one of several similar accounts. 5. Each Unit 3 eligible 4 employee shall be able to utilize up to $1,500 per year, pursuant to the codesaid xxxx, but with the exceptions for greater utilization hereafter noted. The pro rata limitation pursuant to paragraph 2. is applicable here. 6. If an employee does not utilize the complete $1,500 pursuant to the procedures and limitations described in the codexxxx, then the unused monies shall be put in a “same year pool.” That same year pool shall be utilized to pay those who have incurred health care expenses in excess of the $1,500, but again according to the procedures and limitations in the codeattached xxxx. The monies in the same year pool would be distributed at the end, or even soon after, each fiscal year to that group of employees who had expenses in excess of $1,500 in the relevant fiscal year. Those monies shall be distributed on a pro tanto (pro rata) basis. a. Any employee not in Bargaining Unit 3 4 all year shall receive credit under this paragraph 6. utilizing the same pro rata formula as in paragraph 2. above. b. If an employee is entitled to less than $25 under this paragraph 6., the money shall instead go into next year’s fund pursuant to paragraph 76. hereafter. 7. If monies still remain after a distribution to such employees (i.e., all employees who spent more than $1,500 as provided in the bill xxxx were completely reimbursed), then those surplus monies shall be rolled over into the next fiscal year’s funds available for distribution to employees whose expenses pursuant to the bill xxxx exceed $1,500 in such subsequent year. Similar “rollovers” would occur in any years where all employees were completely reimbursed (or had payments made on their behalf) pursuant to the bill xxxx and monies still remained in the pool. 8. Beyond the text of the billxxxx, the parties will structure and administer the fund accordance with all applicable IRS and other regulatory statutes and rules. 9. Interest earned from the fund(s), shall be used to offset administrative costs. 10. Notwithstanding the above, if the IRS shall determine that the above benefit violates its statutes or rules (e.g., the payments by the State employer are taxable), then the above provisions shall be of no further force and effect. The parties will negotiate under the Xxxxx Act for a replacement benefit, which shall be “cost neutral” to the employer.

Rural Subsidy Program. Effective January 1, 2000, the A. The State shall establish continue a rural subsidy program Rural Health Care Equity Program for Bargaining Unit 3 9 members, which may be administered in conjunction with a similar program for State employees in other bargaining units, for excluded employees, employees and for annuitants. The Department of Personnel Administration (DPA) shall administer any fund involving Bargaining Unit 3 Xxxx 0 members. A. B. The program shall operate in the following fashion: 1. The State shall contribute $1,500 1500 per year on behalf of each bargaining unit member (employee) who lives in a defined rural area, as more definitely described in Government Code Section 22825.01, a copy of which the code is attached hereto and hereby incorporated herein by reference. a. For Bargaining Unit 3 members, because a substantial number of them are seasonal employees, payments Payments shall be on a monthly basis. b. For permanent employees, as in the “Medical Reimbursement Account” situation, the employee does not have to wait for reimbursement of covered medical expenses until the full amount has been deposited. 2. As to any employee who enters State service or leaves State service during a fiscal year, contributions for such employee shall be made on a pro rata basis. A similar computation shall be used for anyone entering or leaving the bargaining unit (e.g., promotion in midfiscal mid-fiscal year). 3. The money shall be available for use as defined in Government Code Section (GC) 22825.01. 4. Pursuant to the code, a A Rural Healthcare Equity Trust Fund(s) (hereafter Fund) Program will be established with a separate account for Bargaining Unit 3 Xxxx 0 members, as one of several similar accounts. 5. Each Unit 3 eligible 9 employee shall be able to utilize up to $1,500 1500 per fiscal year, pursuant to the codeGC section 22825.01, but with the exceptions for greater utilization hereafter noted. The pro rata limitation pursuant to paragraph 2. Section 4.12.B.2 is applicable here. 6. If an employee does not utilize the complete $1,500 1500 pursuant to the procedures and limitations described in the codeGC section 22825.01, then the unused monies shall be put in a “same year pool.” That same year pool shall be utilized to pay those who have incurred eligible health care expenses in excess of the $1,5001500, but again according to the procedures and limitations in the codeGC section 22825.01. The monies in the same year pool would be distributed at the end, or even soon after, each fiscal year to that group of employees who had expenses in excess of $1,500 1500 in the relevant fiscal year. Those monies shall be distributed on a pro tanto (pro rata) basis. a. Any employee not in Bargaining Unit 3 9 all year shall receive credit under this paragraph 6. utilizing the same pro rata formula as in paragraph 2. Section 4.12.B.2 above. b. If an employee is entitled to less than twenty five dollars ($25 25) under this paragraph 6.Section 4.12.B.6, the money shall instead go into next year’s fund pursuant to paragraph 7. hereafter. 7. If monies still remain after a distribution to such employees (i.e., all employees who spent more than $1,500 as provided in the bill were completely reimbursed), then those surplus monies shall be rolled over into the next fiscal year’s funds available for distribution to employees whose expenses pursuant to the bill exceed $1,500 in such subsequent year. Similar “rollovers” would occur in any years where all employees were completely reimbursed (or had payments made on their behalf) pursuant to the bill and monies still remained in the pool. 8. Beyond the text of the bill, the parties will structure and administer the fund accordance with all applicable IRS and other regulatory statutes and rules. 9. Interest earned from the fund(s), shall be used to offset administrative costs. 10. Notwithstanding the above, if the IRS shall determine that the above benefit violates its statutes or rules (e.g., the payments by the State employer are taxable), then the above provisions shall be of no further force and effect. The parties will negotiate under the Xxxxx Act for a replacement benefit, which shall be “cost neutral” to the employer.Section

Rural Subsidy Program. Effective January 1, 2000, the State shall establish a rural subsidy program for Bargaining Unit 3 Xxxx 00 members, which may be administered in conjunction with a similar program for State employees in other bargaining units, for excluded employees, and for annuitants. The Department of Personnel Administration shall administer any fund involving Bargaining Unit 3 Xxxx 00 members. A. The program shall operate in the following fashion: 1. The State shall contribute $1,500 per year on behalf of each bargaining unit member (employee) who lives in a defined rural area, as more definitely described in Government Code Section 22825.01, a copy of which the code is attached hereto and hereby incorporated herein by reference. a. For Bargaining Unit 3 Xxxx 00 members, because a substantial number of them are seasonal employees, payments shall be on a monthly basis. b. For permanent employees, as in the “Medical Reimbursement Account” situation, the employee does not have to wait for reimbursement of covered medical expenses until the full amount has been deposited. 2. As to any employee who enters State service or leaves State service during a fiscal year, contributions for such employee shall be made on a pro rata basis. A similar computation shall be used for anyone entering or leaving the bargaining unit (e.g., promotion in midfiscal year). 3. The money shall be available for use as defined in Government Code Section 22825.01. 4. Pursuant to the codethat xxxx, a Rural Healthcare Equity Trust Fund(s) (hereafter Fund) will be established with a separate account for Bargaining Unit 3 Xxxx 00 members, as one of several similar accounts. 5. Each Unit 3 eligible 20 employee shall be able to utilize up to $1,500 per year, pursuant to the codesaid xxxx, but with the exceptions for greater utilization hereafter noted. The pro rata limitation pursuant to paragraph 2. is applicable here. 6. If an employee does not utilize the complete $1,500 pursuant to the procedures and limitations described in the codexxxx, then the unused monies shall be put in a “same year pool.” That same year pool shall be utilized to pay those who have incurred health care expenses in excess of the $1,500, but again according to the procedures and limitations in the codeattached xxxx. The monies in the same year pool would be distributed at the end, or even soon after, each fiscal year to that group of employees who had expenses in excess of $1,500 in the relevant fiscal year. Those monies shall be distributed on a pro tanto (pro rata) basis. a. Any employee not in Bargaining Unit 3 Xxxx 00 all year shall receive credit under this paragraph 6. utilizing the same pro rata formula as in paragraph 2. above. b. If an employee is entitled to less than $25 under this paragraph 6., the money shall instead go into next year’s fund pursuant to paragraph 76. hereafter. 7. If monies still remain after a distribution to such employees (i.e., all employees who spent more than $1,500 as provided in the bill xxxx were completely reimbursed), then those surplus monies shall be rolled over into the next fiscal year’s funds available for distribution to employees whose expenses pursuant to the bill xxxx exceed $1,500 in such subsequent year. Similar “rollovers” would occur in any years where all employees were completely reimbursed (or had payments made on their behalf) pursuant to the bill xxxx and monies still remained in the pool. 8. Beyond the text of the billxxxx, the parties will structure and administer the fund accordance with all applicable IRS and other regulatory statutes and rules. 9. Interest earned from the fund(s), shall be used to offset administrative costs. 10. Notwithstanding the above, if the IRS shall determine that the above benefit violates its statutes or rules (e.g., the payments by the State employer are taxable), then the above provisions shall be of no further force and effect. The parties will negotiate under the Xxxxx Act for a replacement benefit, which shall be “cost neutral” to the employer.

Rural Subsidy Program. Effective January 1, 2000, the State shall establish a rural subsidy program for Bargaining Unit 3 Xxxx 0 members, which may be administered in conjunction with a similar program for State employees in other bargaining units, for excluded employees, and for annuitants. The Department of Personnel Administration shall administer any fund involving Bargaining Unit 3 Xxxx 0 members. A. The program shall operate in the following fashion: 1. The State shall contribute $1,500 per year on behalf of each bargaining unit member (employee) who lives in a defined rural area, as more definitely described in Government Code Section 22825.01, a copy of which the code is attached hereto and hereby incorporated herein by reference. a. For Bargaining Unit 3 members1members, because a substantial number of them are seasonal employees, payments shall be on a monthly basis. b. For permanent employees, as in the “Medical Reimbursement Account” situation, the employee does not have to wait for reimbursement of covered medical expenses until the full amount has been deposited. 2. As to any employee who enters State service or leaves State service during a fiscal year, contributions for such employee shall be made on a pro rata basis. A similar computation shall be used for anyone entering or leaving the bargaining unit (e.g., promotion in midfiscal year). 3. The money shall be available for use as defined in Government Code Section 22825.01. 4. Pursuant to the code, a A Rural Healthcare Equity Trust Fund(s) (hereafter Fund) will be established with a separate account for Bargaining Unit 3 Xxxx 0 members, as one of several similar accounts. 5. Each Unit 3 eligible 1 employee shall be able to utilize up to $1,500 per year, pursuant to the codesaid xxxx, but with the exceptions for greater utilization hereafter noted. The pro rata limitation pursuant to paragraph 2. is applicable here. 6. If an employee does not utilize the complete $1,500 pursuant to the procedures and limitations described in the codeGovernment Code Section 22825.01, then the unused monies shall be put in a “same year pool.” That same year pool shall be utilized to pay those who have incurred health care expenses in excess of the $1,500, but again according to the procedures and limitations in the codeattached xxxx. The monies in the same year pool would be distributed at the end, or even soon after, each fiscal year to that group of employees who had expenses in excess of $1,500 in the relevant fiscal year. Those monies shall be distributed on a pro tanto (pro rata) basis. a. Any employee not in Bargaining Unit 3 1 all year shall receive credit under this paragraph 6. utilizing the same pro rata formula as in paragraph 2. above. b. If an employee is entitled to less than $25 under this paragraph 6., the money shall instead go into next year’s fund pursuant to paragraph 76. hereafter. 7. If monies still remain after a distribution to such employees (i.e., all employees who spent more than $1,500 as provided in the bill xxxx were completely reimbursed), then those surplus monies shall be rolled over into the next fiscal year’s funds available for distribution to employees whose expenses pursuant to the bill xxxx exceed $1,500 in such subsequent year. Similar “rollovers” would occur in any years where all employees were completely reimbursed (or had payments made on their behalf) pursuant to the bill xxxx and monies still remained in the pool. 8. Beyond the text of the billGovernment Code Section 22825.01, the parties will structure and administer the fund accordance with all applicable IRS and other regulatory statutes and rules. 9. Interest earned from the fund(s), shall be used to offset administrative costs. 10. Notwithstanding the above, if the IRS shall determine that the above benefit violates its statutes or rules (e.g., the payments by the State employer are taxable), then the above provisions shall be of no further force and effect. The parties will negotiate under the Xxxxx Act for a replacement benefit, which shall be “cost neutral” to the employer.

Rural Subsidy Program. Effective January 1, 2000, the The State shall establish a rural subsidy program for Bargaining Unit 3 Xxxx 0 members, which may be administered in conjunction with a similar program for State state employees in other bargaining units, for excluded employees, and for annuitants. The Department of Personnel Administration DPA shall administer any fund involving Bargaining Unit 3 2 members. A. . The program shall operate in the following fashion: 1. The State shall contribute $1,500 per year on behalf of each bargaining unit member (employee) who lives in a defined rural area, as more definitely described in Government Code Section 22825.01Senate Xxxx 514 (Senator Chesbro), a copy of which the code is attached hereto and hereby incorporated herein by reference. a. . For Bargaining Unit 3 Xxxx 0 members, because a substantial number of them are seasonal employees, payments shall may be on a monthly basis. b. a. For permanent employees, as in the “Medical Reimbursement Account” situation, the employee does not have to wait for reimbursement of covered medical expenses until the full amount has been deposited. 2. As to any employee who enters State state service or leaves State state service during a fiscal year, contributions for such employee shall be made on a pro rata basis. A similar computation shall be used for anyone entering or leaving the bargaining unit (e.g., promotion in midfiscal mid-fiscal year). 3. The money shall be available for use as defined in Government Code Section 22825.01SB 514. 4. Pursuant to the codethat xxxx, a Rural Healthcare Equity Trust Fund(s) (hereafter Fund) will be established with a separate account for Bargaining Unit 3 Xxxx 0 members, as one of several similar accounts. 5. Each Unit 3 eligible 2 employee shall be able to utilize up to $1,500 per year, pursuant to the codesaid xxxx, but with the exceptions for greater utilization hereafter noted. The pro rata limitation pursuant to paragraph 2. is applicable here. 6. If an employee does not utilize the complete $1,500 pursuant to the procedures and limitations described in the codexxxx, then the unused monies shall be put in a “same year pool.” ”. That same year pool shall be utilized to pay those who have incurred health care expenses in excess of the $1,500, but again according to the procedures and limitations in the codeattached xxxx. The monies in the same year pool would be distributed at the end, or even soon after, each fiscal year to that group of employees who had expenses in excess of $1,500 in the relevant fiscal year. Those monies shall be distributed on a pro tanto (pro rata) basis. a. Any employee not in Bargaining Unit 3 2 all year shall receive credit under this paragraph 6. 6 utilizing the same pro rata formula as in paragraph 2. 2 above. b. If an employee is entitled to less than $25 25.00 under this paragraph 6., the money shall instead go into next year’s fund pursuant to paragraph 7. 6 hereafter. 7. If monies still remain after a distribution to such employees (i.e., all employees who spent more than $1,500 as provided in the bill xxxx were completely reimbursed), then those surplus monies shall be rolled over into the next fiscal year’s funds available for distribution to employees whose expenses pursuant to the bill xxxx exceed $1,500 in such subsequent year. Similar “rollovers” would occur in any years where all employees were completely reimbursed (or had payments made on their behalf) pursuant to the bill xxxx and monies still remained in the pool. 8. Beyond the text of the billxxxx, the parties will structure and administer the fund accordance with all applicable IRS and other regulatory statutes and rules. 9. Interest earned from the fund(s), shall be used to offset administrative costs. 10. Notwithstanding the above, if the IRS shall determine that the above benefit violates its statutes or rules (e.g., the payments by the State employer are taxable), then the above provisions shall be of no further force and effect. The parties will negotiate under the Xxxxx Act for a replacement benefit, which shall be “cost neutral” to the employer.

Rural Subsidy Program. Effective January 1, 2000, the State shall establish a rural subsidy program for Bargaining Unit 3 Xxxx 00 members, which may be administered in conjunction with a similar program for State employees in other bargaining units, for excluded employees, and for annuitants. The Department of Personnel Administration DPA shall administer any fund involving Bargaining Unit 3 Xxxx 00 members. A. The program shall operate in the following fashion: 1. The State shall contribute $1,500 per year on behalf of each bargaining unit member (employee) who lives in a defined rural area, as more definitely described in Government Code Section 22825.01Chapter 743, a Statutes of 1999 (Senate Xxxx 514 Senator Chesbro). A copy of which the code xxxx is attached hereto and hereby incorporated herein by reference. a. For Bargaining Unit 3 Xxxx 00 members, because a substantial number of them are seasonal employees, payments shall be on a monthly basis. b. For permanent employees, as in the “Medical Reimbursement Account” situation, the employee does not have to wait for reimbursement of covered medical expenses until the full amount has been deposited. 2. As to any employee who enters State service or leaves State service during a fiscal year, contributions for such employee shall be made on a pro rata basis. A similar computation shall be used for anyone entering or leaving the bargaining unit (e.g., promotion in midfiscal mid-fiscal year). 3. The money shall be available for use as defined in Government Code Section 22825.01. 4. Pursuant to the codethat xxxx, a Rural Healthcare Equity Trust Fund(s) (hereafter Fund) will be established with a separate account for Bargaining Unit 3 Xxxx 00 members, as one of several similar accounts. 5. Each Unit 3 eligible 14 employee shall be able to utilize up to $1,500 per year, pursuant to the codesaid xxxx, but with the exceptions for greater utilization hereafter noted. The pro rata limitation pursuant to paragraph 2. is applicable here. 6. If an employee does not utilize the complete $1,500 pursuant to the procedures and limitations described in the codexxxx, then the unused monies shall be put in a “same year pool.” That same year pool shall be utilized to pay those who have incurred health care expenses in excess of the $1,500, but again according to the procedures and limitations in the codeattached xxxx. The monies in the same year pool would be distributed at the end, or even soon after, each fiscal year to that group of employees who had expenses in excess of $1,500 in the relevant fiscal year. Those monies shall be distributed on a pro tanto (pro rata) basis. a. Any employee not in Bargaining Unit 3 Xxxx 00 all year shall receive credit under this paragraph 6. 6 utilizing the same pro rata formula as in paragraph 2. 2 above. b. If an employee is entitled to less than $25 25.00 under this paragraph 6., the money shall instead go into next year’s fund pursuant to paragraph 7. 6 hereafter. 7. If monies still remain after a distribution to such employees (i.e., all employees who spent more than $1,500 as provided in the bill xxxx were completely reimbursed), then those surplus monies shall be rolled over into the next fiscal year’s funds available for distribution to employees whose expenses pursuant to the bill xxxx exceed $1,500 in such subsequent year. Similar “rollovers” would occur in any years where all employees were completely reimbursed (or had payments made on their behalf) pursuant to the bill xxxx and monies still remained in the pool. 8. Beyond the text of the billxxxx, the parties will structure and administer the fund in accordance with all applicable IRS and other regulatory statutes and rules. 9. Interest earned from the fund(s), shall be used to offset administrative costs. 10. Notwithstanding the above, if the IRS shall determine that the above benefit violates its statutes or rules (e.g., the payments by the State employer are taxable), then the above provisions shall be of no further force and effect. The parties will negotiate under the Xxxxx Act for a replacement benefit, which shall be “cost neutral” to the employer.