(a)

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Terms Used In Tennessee Code 8-27-702

(1) The local government insurance committee has the authority to establish a group insurance plan for employees of local governments and quasi-governmental organizations. The local government insurance committee shall establish the definition of “employee”.
(2) Any entity applying to participate in the local government insurance plan as a quasi-governmental organization after July 1, 2015, shall demonstrate to the satisfaction of the local government insurance committee that:

(A) The entity was created by an act of the general assembly or by an ordinance or similar enactment of a local government;
(B) The entity performs governmental functions; and
(C) The entity is under governmental supervision by having government officials on its governing board, being subject to audit by the comptroller of the treasury, or subject to review by a committee of the general assembly.
(3) An entity does not qualify as a quasi-governmental organization because the entity has entered into a services contract with the state or any of its agencies.
(b) Such plan is authorized to be established, contingent upon sufficient participation on the part of eligible organizations to make the plan economically feasible as determined by independent actuarial analysis.
(c) The local government insurance committee shall approve such voluntary benefit plans as may be necessary and reasonable. The local government insurance committee may provide for voluntary benefits as part of the basic health plans or as separate plans.
(d) The local government insurance committee is authorized to determine the premiums, benefits package, funding method, administrative procedures, eligibility provisions, and rules relating to the plans established by this section.
(e) If a local government agency participates in the basic health plans provided for in subsection (a), those plans shall be the only basic health plans that the local government agency may make available to its employees.
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