(1) The governing body of a local government may elect to participate in a benefit plan offered by the Public Employees’ Benefit Board.
(2) The decision of the governing body of a local government to participate in a benefit plan offered by the board is in the discretion of the governing body of the local government and is a permissive subject of collective bargaining.
(3) If the governing body of a local government elects to offer a benefit plan through the board, the governing body may elect one time only to provide alternative group health and welfare insurance benefit plans to eligible employees if:
(a) The alternative benefit plan is offered through the health insurance exchange under ORS 741.310 (1)(b); and
(b) The participation of the local government is not precluded under federal law on or after January 1, 2017.