Senate Bill sb1172c1

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    Florida Senate - 2001                           CS for SB 1172

    By the Committee on Governmental Oversight and Productivity;
    and Senators Mitchell, Latvala, Clary and Smith




    302-1594-01

  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         relating to multiple-employer welfare

10         arrangements; authorizing the Department of

11         Management Services to adopt rules; providing a

12         declaration that the act fulfills important

13         state interest; providing an effective date.

14

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

16

17         Section 1.  Section 110.1228, Florida Statutes, is

18  created to read:

19         110.1228  Participation by small counties, small

20  municipalities, and district school boards located in small

21  counties.--

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

23         (a)  "District school board" means a district school

24  board located in a small county.

25         (b)  "Small municipality" means an incorporated

26  municipality that has a population of 12,500 or fewer

27  according to the most recent decennial census.

28         (c)  "Small county" means a county that has a

29  population of 100,000 or fewer according to the most recent

30  decennial census.

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    Florida Senate - 2001                           CS for SB 1172
    302-1594-01




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

  2  municipality or a district school board may apply for

  3  participation in the state group health insurance program

  4  authorized in s. 110.123 and the prescription drug coverage

  5  program authorized by s. 110.12315 by submitting an

  6  application along with a $500 nonrefundable fee to the

  7  department.

  8         (3)  As a prerequisite to the adoption of an ordinance

  9  or resolution for participation in the state group health

10  insurance and prescription drug coverage program, a small

11  county, small municipality, or district school board shall

12  issue a request for proposals to provide health insurance and

13  prescription drug coverage. Such request for proposals shall

14  seek coverages equivalent to those offered currently by the

15  small county, small municipality, or district school board and

16  coverages equivalent to the state group health insurance and

17  prescription drug coverage program. Such requests for

18  proposals must provide an opportunity for the receipt of

19  competitive proposals from all interested parties without

20  restriction. The small county, small municipality, and

21  district school board shall review and consider all responsive

22  proposals prior to the adoption of any ordinance or resolution

23  for participation in the state group health insurance and

24  prescription drug coverage program.

25         (4)  If the department determines that a small county,

26  small municipality, or district school board is eligible to

27  enroll, the small county, small municipality, or district

28  school board must agree to the following terms and conditions:

29         (a)  The minimum enrollment or contractual period will

30  be 3 years.

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    Florida Senate - 2001                           CS for SB 1172
    302-1594-01




  1         (b)  The small county, small municipality, or district

  2  school board must pay to the department an initial

  3  administrative fee not less than $2.61 per enrollee per month,

  4  or such other amount established annually to fully reimburse

  5  the department for its costs.

  6         (c)  Termination of participation of a small county,

  7  small municipality, or district school board requires written

  8  notice 1 year before the termination date.

  9         (d)  If participation is terminated, a small county,

10  small municipality, or district school board may not reapply

11  for participation for a period of 2 years.

12         (e)  Small counties, small municipalities, and district

13  school boards shall reimburse the state for 100 percent of its

14  costs, including administrative costs.

15         (f)  If a small county, small municipality, or district

16  school board employer fails to make the payments required by

17  this section to fully reimburse the state, the Department of

18  Revenue or the Department of Banking and Finance shall, upon

19  the request of the Department of Management Services, deduct

20  the amount owed by the employer from any funds to be

21  distributed by it to the small county, small municipality, or

22  district school board. The amounts so deducted shall be

23  transferred to the Department of Management Services for

24  further distribution to the trust funds in accordance with

25  this chapter.

26         (g)  The small county, small municipality, or district

27  school board shall furnish the department any information

28  requested by the department which the department considers

29  necessary to administer the state group health insurance

30  program and the prescription drug program.

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    Florida Senate - 2001                           CS for SB 1172
    302-1594-01




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

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

  3         (6)  The Department of Management Services may adopt

  4  rules necessary to administer this section.

  5         Section 2.  The Legislature finds that a proper and

  6  legitimate state purpose is served when public employers, and

  7  their employees and dependents, in small counties, small

  8  municipalities, and district school boards are given

  9  additional choices for the basic protections afforded by group

10  health and prescription drug coverage programs that also

11  permit the continued operation of a competitive marketplace

12  and assure that affordable and available coverage is extended

13  to all interested parties. Therefore, the Legislature

14  determines and declares that this act fulfills an important

15  state interest.

16         Section 3.  This act shall take effect upon becoming a

17  law and shall apply to eligible local government plan

18  participants effective with the January 1, 2003, plan year.

19

20          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
21                         Senate Bill 1172

22

23  The Committee Substitute provides for the issuance of local
    government requests for proposals on the availability of
24  health and prescription drug coverage insurance prior to entry
    into the state plan. It also requires participating units of
25  local government to provide full reimbursement of costs to the
    State of Florida. An important state interest is declared due
26  to the bill's mandate of a local government proposal process.
    The bill's previous contingent effective date is changed to be
27  effective upon becoming a law and to apply to insurance plan
    years beginning January 1, 2003.
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