HB 1021

1	A bill to be entitled
2	An act relating to public officers and employees group
3	insurance; amending s. 112.08, F.S.; requiring school
4	districts to procure certain insurance through a
5	purchasing interlocal agreement; providing an exception;
6	requiring school districts to enter into an interlocal
7	agreement to establish the School Districts Insurance
8	Consortium for certain purposes; authorizing individual
9	school districts to opt out of the consortium; authorizing
10	the consortium to advertise for competitive bids for
11	certain types of insurance; requiring the consortium to
12	advertise for proposals for a statewide insurance plan and
13	regional plans; providing criteria and requirements for
14	such plans; providing requirements for awarding contracts;
15	requiring school districts to engage in collective
16	bargaining; providing an effective date.
17
18	Be It Enacted by the Legislature of the State of Florida:
19
20	Section 1.  Paragraph (a) of subsection (2) of section
21	112.08, Florida Statutes, is amended, and paragraph (d) is added
22	to that subsection, to read:
23	112.08  Group insurance for public officers, employees, and
24	certain volunteers; physical examinations.-
25	(2)(a)  Notwithstanding any general law or special act to
26	the contrary, every local governmental unit is authorized to
27	provide and pay out of its available funds for all or part of
28	the premium for life, health, accident, hospitalization, legal
29	expense, or annuity insurance, or all or any kinds of such
30	insurance, for the officers and employees of the local
31	governmental unit and for health, accident, hospitalization, and
32	legal expense insurance for the dependents of such officers and
33	employees upon a group insurance plan and, to that end, to enter
34	into contracts with insurance companies or professional
35	administrators to provide such insurance. Before entering any
36	contract for insurance, the local governmental unit shall
37	advertise for competitive bids; and such contract shall be let
38	upon the basis of such bids. School districts shall procure such
39	insurance through a purchasing interlocal agreement as provided
40	in paragraph (d) unless the school board of a school district,
41	at a duly noticed public meeting, determines that the purchase
42	of such insurance outside of the plan procured through the
43	interlocal agreement is financially advantageous to the school
44	district and opts out of such interlocal agreement. If a
45	contracting health insurance provider becomes financially
46	impaired as determined by the Office of Insurance Regulation of
47	the Financial Services Commission or otherwise fails or refuses
48	to provide the contracted-for coverage or coverages, the local
49	government may purchase insurance, enter into risk management
50	programs, or contract with third-party administrators and may
51	make such acquisitions by advertising for competitive bids or by
52	direct negotiations and contract. The local governmental unit
53	may undertake simultaneous negotiations with those companies
54	which have submitted reasonable and timely bids and are found by
55	the local governmental unit to be fully qualified and capable of
56	meeting all servicing requirements. Each local governmental unit
57	may self-insure any plan for health, accident, and
58	hospitalization coverage or enter into a risk management
59	consortium to provide such coverage, subject to approval based
60	on actuarial soundness by the Office of Insurance Regulation;
61	and each shall contract with an insurance company or
62	professional administrator qualified and approved by the office
63	to administer such a plan.
64	(d)  Each school district shall enter into an interlocal
65	agreement, as provided in s. 163.01, with all other school
66	districts to establish the School Districts Insurance Consortium
67	through which health, accident, and hospitalization insurance is
68	to be procured for officers and employees, and the dependents of
69	such officers and employees, of the school districts unless a
70	school district opts out as provided in paragraph (a).
71	Notwithstanding any other provision of law, the consortium may
72	advertise for competitive bids for such insurance and the
73	contract or contracts for such insurance shall be let upon the
74	basis of such bids. The consortium shall advertise for proposals
75	for a statewide insurance plan as well as for plans providing
76	coverage on a regional basis. The regions for which coverage
77	shall be bid shall be defined by rule adopted by the consortium.
78	In determining appropriate regions, the consortium shall group
79	school districts geographically in a manner that will include
80	school districts of varying sizes to ensure the availability of
81	coverage for all districts in the region. Contracts may be
82	awarded statewide or on a regional basis and more than one
83	provider may be selected to provide insurance. School districts
84	shall engage in collective bargaining with the certified
85	bargaining agent for any unit of employees for which health,
86	accident, and hospitalization insurance is provided, as required
87	by part II of chapter 447 with regard to coverages to be
88	offered, cost for dependent coverage, deductibles, optional
89	coverages, and other matters required to be bargained under law.
90	Section 2.  This act shall take effect July 1, 2010.

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