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





                                                  SENATE AMENDMENT

    Bill No. HB 549, 1st Eng.

    Amendment No.    

                            CHAMBER ACTION
              Senate                               House
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11  Senator Mitchell moved the following amendment:

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13         Senate Amendment (with title amendment) 

14         On page 7, between lines 10 and 11,

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16  insert:

17         Section 2.  (1)  It is the intent of the Legislature to

18  consider legislation during the 2001 Regular Session of the

19  Legislature to expand the eligibility of the state group

20  health insurance program and the state prescription drug

21  coverage program to include small municipalities, small

22  counties, and district school boards of small counties. It is

23  the intent of the Legislature that any costs or savings to the

24  state group health insurance program or prescription drug

25  coverage program resulting from such expansion shall be passed

26  on to the local government participants and their employees.

27         (2)  The Department of Management Services shall

28  contract with a third party to conduct an actuarial study to

29  determine the cost of allowing small counties, small

30  municipalities, or eligible district school boards to

31  participate in the state group health insurance program and

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                                                  SENATE AMENDMENT

    Bill No. HB 549, 1st Eng.

    Amendment No.    





 1  the state prescription drug program and offer such coverage to

 2  officers, employees, dependents, and retirees of such

 3  entities. Such costs shall be delineated based on the impact

 4  to the state, state officers, and employees and to the local

 5  government employers and their employees. The department shall

 6  issue its report to the Governor, the President of the Senate,

 7  and the Speaker of the House of Representatives by December 1,

 8  2000.

 9         (3)  The Department of Management Services shall

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

11  a written determination letter and a favorable private-letter

12  ruling, stating that the State Group Self-Insurance Program is

13  a facially qualified plan. The department shall notify the

14  President of the Senate and the Speaker of the House of

15  Representatives within 30 days after the receipt of the

16  favorable or unfavorable letters.

17         (4)  For purposes of conducting the actuarial study,

18  criteria to be considered for eligibility to enroll include,

19  but are not limited to:

20         (a)  A minimum enrollment or contractual period of 3

21  years; and

22         (b)  Written notice to withdraw from the program must

23  be given at least 12 months prior to the termination date.

24         (5)  For the purposes of this section, the term "small

25  county" means any county that has a population of 100,000 or

26  less according to the most recent decennial census, and the

27  term "small municipality" means any incorporated municipality

28  that has a population of 12,500 or less according to the most

29  recent decennial census.

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31  (Redesignate subsequent sections.)

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                                                  SENATE AMENDMENT

    Bill No. HB 549, 1st Eng.

    Amendment No.    





 1  ================ T I T L E   A M E N D M E N T ===============

 2  And the title is amended as follows:

 3         On page 1, line 6, after the semicolon,

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 5  insert:

 6         providing legislative intent; requiring the

 7         Department of Management Services to contract

 8         for an actuarial study to determine the cost of

 9         allowing small counties, small municipalities,

10         and certain school districts to participate in

11         the state group health insurance program and

12         the state prescription drug program; requiring

13         the department to request a private-letter

14         ruling; providing definitions;

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