Section 44041 Of Article 2. Rights And Duties From California Education Code >> Division 3. >> Title 2. >> Part 25. >> Chapter 1. >> Article 2.
44041
. (a) (1) The governing board of each school district when
drawing an order for the salary payment due to employees of the
district shall, without charge, reduce the order by the amount which
it has been requested in a revocable written authorization by the
employee to deduct for any or all of the following purposes:
(A) Paying premiums on any policy or certificate of group life
insurance for the benefit of the employee or for group disability
insurance, or legal expense insurance, or any of them, for the
benefit of the employee or his or her dependents issued by an
admitted insurer on a form of policy or certificate approved by the
Insurance Commissioner.
(B) Paying rates, dues, fees, or other periodic charges on any
hospital service contract for the benefit of the employee, or his or
her dependents, issued by a nonprofit hospital service corporation on
a form approved by the Insurance Commissioner pursuant to the former
provisions of Chapter 11A (commencing with Section 11491) of Part 2
of Division 2 of the Insurance Code.
(C) Paying periodic charges on any medical and hospital service
agreement or contract for the benefit of the employee, or his or her
dependents, issued by a nonprofit corporation subject to Part 2
(commencing with Section 5110) of, Part 3 (commencing with Section
7110) of, or Part 11 (commencing with Section 10810) of, Division 2
of Title 1 of the Corporations Code.
(D) Paying periodic charges on any legal services contract for the
benefit of the employee, or his or her dependents issued by a
nonprofit corporation subject to Part 3 (commencing with Section
7110) of, or Part 11 (commencing with Section 10810) of, Division 2
of Title 1 of the Corporations Code.
(2) The requirements of this subdivision shall not apply to
subdivision (b).
(b) For purposes of a deferred compensation plan authorized by
Section 403(b) or 457 of the Internal Revenue Code or an annuity
program authorized by Section 403(b) of the Internal Revenue Code
that is offered by the school district which provides for investments
in corporate stocks, bonds, securities, mutual funds, or annuities,
except as prohibited by the California Constitution, the governing
board of each school district when drawing an order for the salary
payment due to an employee of the district shall, with or without
charge, reduce the order by the amount which it has been requested in
a revocable written authorization by the employee to deduct for
participating in a deferred compensation plan or annuity program
offered by the school district. The governing board shall determine
the cost of performing the requested deduction and may collect that
cost from the organization, entity, or employee requesting or
authorizing the deduction. For purposes of this subdivision, the
governing board of a school district is entitled to include in the
amounts reducing the order the costs of any compliance or
administrative services that are required to perform the requested
deduction in compliance with federal or state law, and may collect
these costs from the participating employee, the employee's
participant account, or the organization or entity authorizing the
deduction.
(c) The governing board of the district shall, beginning with the
month designated by the employee and each month thereafter until
authorization for the deduction is revoked, draw its order upon the
funds of the district in favor of the insurer which has issued the
policies or certificates or in favor of the nonprofit hospital
service corporation which has issued hospital service contracts, or
in favor of the nonprofit corporation which has issued medical and
hospital service or legal service agreements or contracts, for an
amount equal to the total of the respective deductions therefor made
during the month. The governing board may require that the employee
submit his or her authorization for the deduction up to one month in
advance of the effective date of coverage.
(d) "Group insurance" as used in this section shall mean only a
bona fide group program of life or disability or life and disability
insurance where a master contract is held by the school district or
an employee organization but it shall, nevertheless, include annuity
programs authorized by Section 403(b) of the Internal Revenue Code
when approved by the governing board.