(1) For the purposes of election and administration of the Montana VEBA HRA, an employer may form subunits.

(2) An employer may either initiate or facilitate an election to determine whether employees will form a group to participate in the Montana VEBA HRA. When at least 25% of the employees request an election, an employer must facilitate the election within 60 calendar days from the date of the request. Employers shall notify employees of an impending vote at least 15 days prior to the date the vote commences.

(3) The election may include all the employer's employees or a specified group of employees to determine whether those employees will form a group.

(4) The contribution source(s) must be agreed upon before a vote is conducted. The group may be polled in a manner acceptable to the group. Once a majority agrees upon the contribution source(s), the contribution source(s) must be listed on the ballot.

(5) Employees who are members of a collective bargaining unit may decide to either participate with other employees in the formation of a group or to initiate the election through the bargaining unit. If the employees decide to participate with other employees, a written memorandum of understanding from the union representing the bargaining unit employees must be obtained by the employer.

(6) Employers must make a reasonable effort when conducting an election to maintain the privacy of each individual ballot. Employers also must include provisions for absentee voting for those employees not present during an election.

(7) If a majority of the employees vote to become members, then all employees eligible to vote, and any employees subsequently hired into the positions covered under the terms and conditions of the election, must be formed as a group and the employees must become members. If the majority of the employees vote to become members, employees who voted not to participate in the group are still included in the group and may not opt out of the group.

(8) Members of a group may hold an annual election to determine whether or not they will continue their participation in the Montana VEBA HRA if at least 25% of the members of the group requests an election.

(a) If a majority of members elect to discontinue their participation, their group is disbanded until another election is conducted; however, the members are not required to wait 12 months from the date of the election to form another group.

(b) Once a group disbands, an employer shall not make further contributions to VEBA participants' accounts. However, distributions from existing VEBA participants' accounts will continue until the funds in the accounts are exhausted.

(c) Once an election is conducted, and a positive vote is cast by a majority, an employer may not conduct another election for that group for 12 months from the date of the election.

(9) The effective date of the group must be no later than 30 days following completion of the vote and announcement of the election outcome which creates the group.