SENATE AMENDMENT
    Bill No. CS for SB 1172
    Amendment No. ___   Barcode 440348
                            CHAMBER ACTION
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11  Senator Mitchell moved the following amendment:
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13         Senate Amendment (with title amendment) 
14         Delete everything after the enacting clause
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16  and insert:  
17         Section 1.  Section 110.1228, Florida Statutes, is
18  created to read:
19         110.1228  Participation by small counties, small
20  municipalities, and district school boards located in small
21  counties.--
22         (1)  As used in this section, the term:
23         (a)  "District school board" means a district school
24  board located in a small county or a district school board
25  that receives funding pursuant to s. 236.081(6).
26         (b)  "Small municipality" means an incorporated
27  municipality that has a population of 12,500 or fewer
28  according to the most recent decennial census.
29         (c)  "Small county" means a county that has a
30  population of 100,000 or fewer according to the most recent
31  decennial census.
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    2:34 PM   04/24/01                              s1172c1c-04r8b

SENATE AMENDMENT Bill No. CS for SB 1172 Amendment No. ___ Barcode 440348 1 (2) The governing body of a small county or small 2 municipality or a district school board may apply for 3 participation in the state group health insurance program 4 authorized in s. 110.123 and the prescription drug coverage 5 program authorized by s. 110.12315 by submitting an 6 application along with a $500 nonrefundable fee to the 7 department. 8 (3) Any costs or savings to the self-insured state 9 group health insurance program or the self-insured 10 prescription drug coverage program resulting from such 11 participation shall be passed on to the local government 12 participants and their employees. Such costs or savings shall 13 be delineated based on the impact to the state, state officers 14 and employees, and local government employers and their 15 employees. 16 (4) As a prerequisite to the adoption of an ordinance 17 or resolution for participation in the state group health 18 insurance program and prescription drug coverage program, a 19 small county, small municipality, or district school board 20 shall issue a request for proposals to provide health 21 insurance and prescription drug coverage. Such request for 22 proposals shall seek coverages equivalent to those offered 23 currently by the small county, small municipality, or district 24 school board and coverages equivalent to the state group 25 health insurance program and prescription drug coverage 26 program. Such request for proposals must provide an 27 opportunity for the receipt of competitive proposals from all 28 interested parties without restriction. The small county, 29 small municipality, and district school board shall review and 30 consider all responsive proposals prior to the adoption of any 31 ordinance or resolution for participation in the state group 2 2:34 PM 04/24/01 s1172c1c-04r8b
SENATE AMENDMENT Bill No. CS for SB 1172 Amendment No. ___ Barcode 440348 1 health insurance program and prescription drug coverage 2 program. 3 (5) If the department determines that a small county, 4 small municipality, or district school board is eligible to 5 enroll, the small county, small municipality, or district 6 school board must agree to the following terms and conditions: 7 (a) The minimum enrollment or contractual period will 8 be 3 years. 9 (b) The small county, small municipality, or district 10 school board must pay to the department an initial 11 administrative fee of not less than $2.61 per enrollee per 12 month, or such other amount established annually to fully 13 reimburse the department for its costs. 14 (c) Termination of participation of a small county, 15 small municipality, or district school board requires written 16 notice 1 year before the termination date. 17 (d) If participation is terminated, a small county, 18 small municipality, or district school board may not reapply 19 for participation for a period of 2 years. 20 (e) Small counties, small municipalities, and district 21 school boards shall reimburse the state for 100 percent of its 22 costs, including administrative costs. 23 (f) If a small county, small municipality, or district 24 school board employer fails to make the payments required by 25 this section to fully reimburse the state, the Department of 26 Revenue or the Department of Banking and Finance shall, upon 27 the request of the Department of Management Services, deduct 28 the amount owed by the employer from any funds not pledged to 29 bond debt service satisfaction that are to be distributed by 30 it to the small county, small municipality, or district school 31 board. The amounts so deducted shall be transferred to the 3 2:34 PM 04/24/01 s1172c1c-04r8b
SENATE AMENDMENT Bill No. CS for SB 1172 Amendment No. ___ Barcode 440348 1 Department of Management Services for further distribution to 2 the trust funds in accordance with this chapter. 3 (g) The small county, small municipality, or district 4 school board shall furnish the department any information 5 requested by the department which the department considers 6 necessary to administer the state group health insurance 7 program and the prescription drug coverage program. 8 (h) The small county, small municipality, or district 9 school board shall adopt the state's eligibility rules. 10 (i) The small county, small municipality, or district 11 school board may not participate in the state's cafeteria plan 12 that allows for pretax treatment of premium contributions. If 13 pretax treatment is desirable for employees of these 14 participating employers, each employee of a participating 15 employer shall execute a salary reduction agreement with that 16 employer, and each participating employer shall establish its 17 own cafeteria plan. 18 (j) The small county, small municipality, or district 19 school board shall pay monthly premiums in amounts sufficient 20 to cover claims costs, department administrative costs, and 21 third-party administrative costs and provide for adequate 22 reserves and cash flow by contributing three months premiums 23 and costs in advance of the coverage effective date. 24 (6) The provisions of ss. 624.436-624.446 do not apply 25 to the State Group Insurance Program or to this section. 26 (7) The Department of Management Services may adopt 27 rules necessary to administer this section. 28 Section 2. The Legislature finds that a proper and 29 legitimate state purpose is served when public employers, and 30 their employees and dependents, in small counties, small 31 municipalities, and district school boards are given 4 2:34 PM 04/24/01 s1172c1c-04r8b
SENATE AMENDMENT Bill No. CS for SB 1172 Amendment No. ___ Barcode 440348 1 additional choices for the basic protections afforded by group 2 health and prescription drug coverage programs that also 3 permit the continued operation of a competitive marketplace 4 and assure that affordable and available coverage is extended 5 to all interested parties. Therefore, the Legislature 6 determines and declares that this act fulfills an important 7 state interest. 8 9 10 ================ T I T L E A M E N D M E N T =============== 11 And the title is amended as follows: 12 Delete everything before the enacting clause 13 14 and insert: 15 A bill to be entitled 16 An act relating to the state group health 17 insurance and prescription drug programs; 18 creating s. 110.1228, F.S.; authorizing 19 specified local governmental entities to apply 20 for participation; providing eligibility 21 requirements for enrollment; exempting the 22 program from ss. 624.436-624.446, F.S., 23 relating to multiple-employer welfare 24 arrangements; authorizing the Department of 25 Management Services to adopt rules; providing a 26 declaration that the act fulfills important 27 state interest; providing an effective date. 28 29 30 31 5 2:34 PM 04/24/01 s1172c1c-04r8b