Senate Bill 0414c2

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    Florida Senate - 2000                     CS for CS for SB 414

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



    302-2130-00

  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; providing a

11         conditional effective date.

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

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15         Section 1.  Section 110.1228, Florida Statutes, is

16  created to read:

17         110.1228  Participation by small counties, small

18  municipalities, and district school boards or special

19  districts located in small counties.--

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

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

22  Services.

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

24  board located in a small county.

25         (c)  "Small municipality" means any incorporated

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

27  to the most recent decennial census.

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

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

30  decennial census.

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    Florida Senate - 2000                     CS for CS for SB 414
    302-2130-00




  1         (e)  "Special district" means any district as defined

  2  in s. 189.403, which is located wholly or partially in a small

  3  county, except districts created pursuant to chapter 373.

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

  5  municipality or a district school board or a special district

  6  may apply for participation in the state group health

  7  insurance program authorized in s. 110.123 and the

  8  prescription drug coverage program authorized by s. 110.12315.

  9  The department shall determine whether the municipality,

10  county, district school board, or special district meets the

11  terms and conditions for enrollment.

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

13  the state group health insurance program and the prescription

14  drug coverage program, a small county, small municipality,

15  district school board, or special district must pass an

16  ordinance or resolution ratifying such application to the

17  state group health insurance program and the prescription drug

18  coverage program.

19         (4)  If the department determines that a small

20  municipality, small county, district school board, or special

21  district is eligible to enroll, the small municipality or

22  county or district school board or special district must agree

23  to the following terms and conditions:

24         (a)  The minimum enrollment or contractual period will

25  be 3 years.

26         (b)  Withdrawal of participation of a small

27  municipality, small county, district school board, or special

28  district requires written notice 1 year prior to the

29  termination date.

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    Florida Senate - 2000                     CS for CS for SB 414
    302-2130-00




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

  2  small county, district school board, or special district may

  3  not reapply for participation for a period of 2 years.

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

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

  6  Department of Revenue or the Department of Banking and

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

  8  Management Services, deduct the amount owed by the employer

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

10  small municipality, district school board, or special

11  district. The amounts so deducted shall be transferred to the

12  department for further distribution to the trust funds in

13  accordance with this chapter.

14         (e)  The small municipality, small county, district

15  school board, or special district shall furnish the department

16  such information in the form and format requested by the

17  department which the department considers necessary to

18  administer the state group health insurance program and the

19  prescription drug program.

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

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

22         (6)  The Department of Management Services may adopt

23  rules to administer this section.

24         Section 2.  The Department of Management Services shall

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

26  a written determination letter and a favorable private letter

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

28  a facially qualified plan. The department shall notify the

29  President of the Senate and the Speaker of the House of

30  Representatives within 30 days after receipt of the favorable

31  or unfavorable letters.

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    Florida Senate - 2000                     CS for CS for SB 414
    302-2130-00




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

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

  3  only if the Department of Management Services receives the

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

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

  6  effect.

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  8          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
  9                            CS/SB 414

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11  The Committee Substtiute adds special districts in designated
    small population areas as an approved party to contract for
12  enrollment in the state group health insurance program.

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