Senate Bill 0414c3

CODING: Words stricken are deletions; words underlined are additions.



    Florida Senate - 2000              CS for CS for CS for SB 414

    By the Committees on Fiscal Policy; Governmental Oversight and
    Productivity; Banking and Insurance; and Senators Mitchell,
    Clary, Rossin, McKay and Latvala



    309-2217-00

  1                      A bill to be entitled

  2         An act relating to the state group health

  3         insurance and prescription drug programs;

  4         creating s. 110.1228, F.S.; authorizing

  5         specified local governmental entities to apply

  6         for participation; providing eligibility

  7         requirements for enrollment; exempting the

  8         program from ss. 624.436-624.446, F.S.;

  9         authorizing the Department of Management

10         Services to adopt rules; authorizing the

11         department to contract with a third party for

12         an actuarial study; requiring that additional

13         costs or savings be passed on to local

14         government entities; providing a conditional

15         effective date.

16

17  Be It Enacted by the Legislature of the State of Florida:

18

19         Section 1.  Section 110.1228, Florida Statutes, is

20  created to read:

21         110.1228  Participation by small counties, small

22  municipalities, and district school boards located in small

23  counties.--

24         (1)  As used in this section, the term:

25         (a)  "Department" means the Department of Management

26  Services.

27         (b)  "District school board" means any district school

28  board located in a small county.

29         (c)  "Small municipality" means any incorporated

30  municipality that has a population of 12,500 or less according

31  to the most recent decennial census.

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CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2000              CS for CS for CS for SB 414
    309-2217-00




  1         (d)  "Small county" means any county that has a

  2  population of 100,000 or less according to the most recent

  3  decennial census.

  4         (2)  The governing body of a small county or a small

  5  municipality or a district school board may apply for

  6  participation in the state group health insurance program

  7  authorized in s. 110.123 and the prescription drug coverage

  8  program authorized by s. 110.12315. The department shall

  9  determine whether the municipality, county, or district school

10  board meets the terms and conditions for enrollment.

11         (3)  As a prerequisite to applying for participation in

12  the state group health insurance program and the prescription

13  drug coverage program, a small county, small municipality, or

14  district school board must pass an ordinance or resolution

15  ratifying such application to the state group health insurance

16  program and the prescription drug coverage program.

17         (4)  If the department determines that a small

18  municipality, small county, or district school board is

19  eligible to enroll, the small municipality or county or

20  district school board must agree to the following terms and

21  conditions:

22         (a)  The minimum enrollment or contractual period will

23  be 3 years.

24         (b)  Withdrawal of participation of a small

25  municipality, small county, or district school board requires

26  written notice 1 year prior to the termination date.

27         (c)  If coverage is terminated, a small municipality,

28  small county, or district school board may not reapply for

29  participation for a period of 2 years.

30         (d)  If any employer other than a state employer fails

31  to make the premium payment required by this chapter, the

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CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2000              CS for CS for CS for SB 414
    309-2217-00




  1  Department of Revenue or the Department of Banking and

  2  Finance, shall, upon the request of the Department of

  3  Management Services, deduct the amount owed by the employer

  4  from any funds to be distributed by it to the small county,

  5  small municipality, or district school board. The amounts so

  6  deducted shall be transferred to the department for further

  7  distribution to the trust funds in accordance with this

  8  chapter.

  9         (e)  The small municipality, small county, or district

10  school board shall furnish the department such information in

11  the form and format requested by the department which the

12  department considers necessary to administer the state group

13  health insurance program and the prescription drug program.

14         (5)  The provisions of ss. 624.436-624.446 do not apply

15  to the State Group Insurance Program or to this section.

16         (6)  The Department of Management Services may adopt

17  rules to administer this section.

18         Section 2.  The Department of Management Services shall

19  contract with a third party to conduct an actuarial study to

20  determine the cost of allowing small counties, small

21  municipalities, and district school boards located in small

22  counties to participate in the state group health insurance

23  program and state prescription drug coverage program. The

24  study must identify the costs associated with offering

25  coverage to employees and dependents and identify any such

26  costs associated with the offering of coverage to retirees of

27  small counties, small municipalities, and district school

28  boards. The study shall identify any costs to the state

29  regarding the addition of these new participants to the state

30  group health insurance and state prescription drug coverage

31  programs. It is the intent of the Legislature that any

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CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2000              CS for CS for CS for SB 414
    309-2217-00




  1  additional costs or savings resulting from the addition of

  2  these entities to the state group health insurance or

  3  prescription drug coverage program shall be passed on to their

  4  participants or their employers. The department shall issue

  5  its report to the Governor, the President of the Senate, and

  6  the Speaker of the House of Representatives by December 1,

  7  2000.

  8         Section 3.  The Department of Management Services shall

  9  request from the Internal Revenue Service, by October 1, 2000,

10  a written determination letter and a favorable private letter

11  ruling, stating that the State Group Self-Insurance program is

12  a facially qualified plan. The department shall notify the

13  President of the Senate and the Speaker of the House of

14  Representatives within 30 days after receipt of the favorable

15  or unfavorable letters.

16         Section 4.  This act shall take effect upon becoming a

17  law, except that section 1 shall take effect July 1, 2001, but

18  only if the Department of Management Services receives the

19  favorable letters prior to that date. If the favorable letters

20  are not received by July 1, 2001, section 1 shall not take

21  effect.

22

23          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
24                         CS for CS SB 414

25

26  The committee substitute removes special districts from the
    bill.
27
    The committee substitute directs the Department of Management
28  Services to contract with a third party to provide an
    actuarial study to determine the cost of allowing small
29  counties, small municipalities, and district school boards in
    small counties to participate in the state group health
30  insurance and prescription drug programs. The department must
    submit a report to the Governor, the President of the Senate,
31  and the Speaker of the House of Representative by December 1,
    2000.
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