Senate Bill sb0426
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Florida Senate - 2003 SB 426
By Senator Clary
4-430-03
1 A bill to be entitled
2 An act relating to state group insurance
3 programs; amending s. 110.1228, F.S.; expanding
4 eligibility for participation in the state
5 group health insurance program and the
6 prescription drug coverage program; providing
7 for participation by employees of all elected
8 district school boards rather than only
9 district school boards located in small
10 counties; providing requirements for
11 application and enrollment; providing certain
12 limitations; providing for applicability;
13 providing an effective date.
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15 Be It Enacted by the Legislature of the State of Florida:
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17 Section 1. Section 110.1228, Florida Statutes, is
18 amended 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 as defined in s. 1003.01(1) located in a small county or
25 a district school board that receives funding pursuant to s.
26 1011.62(6).
27 (b) "Small municipality" means an incorporated
28 municipality that has a population of 12,500 or fewer
29 according to the most recent decennial census.
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Florida Senate - 2003 SB 426
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1 (c) "Small county" means a county that has a
2 population of 100,000 or fewer according to the most recent
3 decennial census.
4 (2) The governing body of a small county or 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 by submitting an
9 application along with a $500 nonrefundable fee to the
10 department.
11 (3) Any costs or savings to the state group health
12 insurance program or the prescription drug coverage program
13 resulting from such participation shall be passed on to the
14 local government participants and their employees. Such costs
15 or savings shall be delineated based on the impact to the
16 state, state officers and employees, and local government
17 employers and their employees.
18 (4) As a prerequisite to the adoption of an ordinance
19 or resolution for participation in the state group health
20 insurance program and prescription drug coverage program, a
21 small county, small municipality, or district school board
22 shall issue a request for proposals to provide health
23 insurance and prescription drug coverage. Such request for
24 proposals shall seek coverages equivalent to those offered
25 currently by the small county, small municipality, or district
26 school board and coverages equivalent to the state group
27 health insurance program and prescription drug coverage
28 program. Such request for proposals must provide an
29 opportunity for the receipt of competitive proposals from all
30 interested parties without restriction. The small county,
31 small municipality, and district school board shall review and
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Florida Senate - 2003 SB 426
4-430-03
1 consider all responsive proposals prior to the adoption of any
2 ordinance or resolution for participation in the state group
3 health insurance program and prescription drug coverage
4 program.
5 (5) If the department determines that a small county,
6 small municipality, or district school board is eligible to
7 enroll, the small county, small municipality, or district
8 school board must agree to the following terms and conditions:
9 (a) The minimum enrollment or contractual period will
10 be 3 years.
11 (b) The small county, small municipality, or district
12 school board must pay to the department an initial
13 administrative fee of not less than $2.61 per enrollee per
14 month, or such other amount established annually to fully
15 reimburse the department for its costs.
16 (c) Termination of participation of a small county,
17 small municipality, or district school board requires written
18 notice 1 year before the termination date.
19 (d) If participation is terminated, a small county,
20 small municipality, or district school board may not reapply
21 for participation for a period of 2 years.
22 (e) Small counties, small municipalities, and district
23 school boards shall reimburse the state for 100 percent of its
24 costs, including administrative costs.
25 (f) If a small county, small municipality, or district
26 school board employer fails to make the payments required by
27 this section to fully reimburse the state, the Department of
28 Revenue or the Department of Banking and Finance shall, upon
29 the request of the Department of Management Services, deduct
30 the amount owed by the employer from any funds not pledged to
31 bond debt service satisfaction that are to be distributed by
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Florida Senate - 2003 SB 426
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1 it to the small county, small municipality, or district school
2 board. The amounts so deducted shall be transferred to the
3 Department of Management Services for further distribution to
4 the trust funds in accordance with this chapter.
5 (g) The small county, small municipality, or district
6 school board shall furnish the department any information
7 requested by the department which the department considers
8 necessary to administer the state group health insurance
9 program and the prescription drug coverage program.
10 (h) The small county, small municipality, or district
11 school board shall adopt the state's eligibility rules.
12 (i) The small county, small municipality, or district
13 school board may not participate in the state's cafeteria plan
14 that allows for pretax treatment of premium contributions. If
15 pretax treatment is desirable for employees of these
16 participating employers, each employee of a participating
17 employer shall execute a salary reduction agreement with that
18 employer, and each participating employer shall establish its
19 own cafeteria plan.
20 (j) The small county, small municipality, or district
21 school board shall pay monthly premiums in amounts sufficient
22 to cover claims costs, department administrative costs, and
23 third-party administrative costs and provide for adequate
24 reserves and cash flow by contributing 3 months' premiums and
25 costs in advance of the coverage effective date.
26 (6) The provisions of ss. 624.436-624.446 do not apply
27 to the State Group Insurance Program or to this section.
28 (7) The Department of Management Services may adopt
29 rules necessary to administer this section.
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Florida Senate - 2003 SB 426
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1 Section 2. This act shall take effect July 1, 2003,
2 and applies to enrollment participation for district school
3 boards on or after January 1, 2004.
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6 SENATE SUMMARY
7 Provides that, effective January 1, 2004, all elected
district school boards rather than only district school
8 boards located in small counties may participate in the
state group health insurance program and the prescription
9 drug coverage program.
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