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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