Senate Bill 0414c1

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    Florida Senate - 2000                            CS for SB 414

    By the Committee on Banking and Insurance; and Senators
    Mitchell, Clary, Rossin, McKay and Latvala




    311-1901-00

  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; authorizing

  8         rulemaking; exempting the program from ss.

  9         624.436-624.446, F.S.; providing a conditional

10         effective date.

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

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14         Section 1.  Section 110.1228, Florida Statutes, is

15  created to read:

16         110.1228  Participation by small counties, small

17  municipalities, and district school boards located in small

18  counties.--

19         (1)  DEFINITIONS.--As used in this section, the term:

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

21  Services.

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

23  board located in a small county.

24         (c)  "Small municipality" means any incorporated

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

26  to the most recent decennial census.

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

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

29  decennial census.

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

31  municipality or a district school board shall be eligible to

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    Florida Senate - 2000                            CS for SB 414
    311-1901-00




  1  apply for participation in the state group health insurance

  2  program authorized in s. 110.123 and the prescription drug

  3  coverage program authorized by s. 110.12315. The department

  4  shall determine whether the municipality, county, or district

  5  school board meets the terms and conditions for enrollment.

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

  7  the state group health insurance program and the prescription

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

  9  district school board must pass an ordinance or resolution

10  ratifying such application to the state group health insurance

11  program and the prescription drug coverage program.

12         (4)  If the department determines that a small

13  municipality or small county or district school board is

14  eligible to enroll, the small municipality or county or

15  district school board must agree to the following terms and

16  conditions:

17         (a)  The minimum enrollment or contractual period will

18  be 3 years;

19         (b)  Withdrawal of participation of a small

20  municipality or small county or district school board will

21  require written notice 1 year prior to the termination date;

22         (c)  If coverage is terminated, a small municipality or

23  small county or district school board will not be eligible to

24  reapply for participation for a period of 2 years;

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

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

27  Department of Revenue or the Department of Banking and

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

29  Management Services, deduct the amount owed by the employer

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

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

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    Florida Senate - 2000                            CS for SB 414
    311-1901-00




  1  deducted shall be transferred to the department for further

  2  distribution to the trust funds in accordance with this

  3  chapter.

  4         (e)  The small municipality or small county or district

  5  school board shall furnish the department such information in

  6  the form and format requested by the department which the

  7  department considers necessary to administer the state group

  8  health insurance program and the prescription drug program.

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

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

11         (6)  The department of Management Services may adopt

12  rules to implement this act.

13         Section 2.  The Department of Management Services shall

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

15  a written determination letter and a favorable private letter

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

17  a facially qualified plan. The department shall notify the

18  Speaker of the House of Representatives and the President of

19  the Senate within 30 days after receipt of the favorable or

20  unfavorable letters.

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

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

23  only if the Department of Management Services receives the

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

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

26  effect.

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    Florida Senate - 2000                            CS for SB 414
    311-1901-00




  1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
  2                         Senate Bill 414

  3

  4  The committee substitute provides the following changes:

  5  1.    Limits the eligibility of local governments for applying
          for participation in the state group health insurance
  6        program and the prescription drug coverage program
          administered by the Division of State Group Insurance of
  7        the Department of Management Services to small
          municipalities, small counties, and school boards
  8        located in small counties in Florida. A small
          municipality is defined to mean any incorporated
  9        municipality that has a population of 12,500 or less and
          a small county is defined to mean a county with a
10        population of 100,000 or less. As a prerequisite for
          applying, a local government would be required to pass
11        an ordinance or resolution ratifying such application.

12  2.    Provides that if the department determines that the
          local government is eligible to enroll, the local
13        government must agree to a minimum enrollment period of
          3 years; a minimum 1-year prior notice of withdrawal
14        from the state programs; a 2-year ineligibility period
          subsequent to a termination from the programs; a
15        deduction of the premium payment, in the event a local
          government fails to pay the required premium, from any
16        funds to be distributed by the Department of Revenue or
          the Department of Banking and Finance to the city,
17        county, or school board; and to submit necessary
          information to the Department of Management Services.
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    3.    Specifies that the provisions of ch. 624, F.S., relating
19        to the regulation of multiple-employer welfare
          associations by the Department of Insurance, would not
20        apply to the state group insurance program.

21  4.    Requires the Department of Management Services to
          request a written determination letter and a favorable
22        letter ruling from the Internal Revenue Service by
          October 1, 2000. The department is required to submit
23        such letters to the President of the Senate and the
          Speaker of the House of Representatives within 30 days
24        after receipt of the favorable or unfavorable letter.
          The authority for local governments to participate takes
25        effect July 1, 2001, but only if the department receives
          a favorable letter prior to that date. If the favorable
26        letters are not received by July 1, 2001, such
          provisions will not take effect.
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