(1) The department shall:

(a) provide educational presentations about the Montana VEBA HRA upon request;

(b) review employer proposals for participation in the Montana VEBA HRA and determine whether the proposed group meets the definition of a group and whether the employer may become a contracting employer;

(c) develop a plan for administration of the Montana VEBA HRA;

(d) enforce the participation requirements by not allowing discriminatory groups to form or by refusing to administer funds from groups that do not continue to comply with the department's requirements; and

(e) determine and process contributions as provided by the department in accordance with IRS tax law restrictions.

(2) Contracting employers must:

(a) allow educational presentations;

(b) define groups and enroll eligible members as provided in these rules;

(c) determine the types of employer contributions to the HRA available to a group. Allowable employer contributions may include sick leave cash-outs, periodic employer contributions, group salary contributions, percent of raise contributions, unused employee benefit funds, annual vacation leave cash-outs as permitted by state statute, group merit pay, and longevity payments or other contributions not prohibited by state statute;

(d) determine whether current employees can become members or whether an employee must terminate employment to become a member; and

(e) notify the Montana VEBA HRA when an employee becomes a member.

(3) The department shall ensure that no part of the net earnings of the Montana HRA inures to the benefit of any private individual or shareholder, other than by payment of the allowable health care reimbursement expenses.

(4) A group shall operate in a manner prescribed by the department unless the association is disbanded in a manner prescribed by the department.

(5) A contracting employer shall provide to the department, or the appropriate administering entity, the information necessary for the plan's operation. The department, in partnership with a contracting employer, shall provide to plan members the information necessary to actively participate in the plan.

(6) The department may delegate all or a portion of its administrative duties to an administrator.

(7) The administrator shall exercise all of its discretion in a uniform, nondiscriminatory manner and shall have all necessary power and discretion to accomplish those purposes.