HB 315

1	A bill to be entitled
2	An act relating to local government officers and
3	employees; amending s. 110.1228, F.S.; expanding
4	eligibility for participation in the state group health
5	insurance program and the prescription drug coverage
6	program to include all counties, municipalities, and
7	district school boards rather than only small counties
8	and municipalities and certain school boards; specifying
9	prerequisites and conditions for participation;
10	providing a minimum period of enrollment; requiring that
11	a participating county, municipality, or school board
12	reimburse the Department of Management Services for its
13	costs, including administrative costs; prohibiting a
14	county, municipality, or school board from participating
15	in the state's plan allowing for pretax treatment of
16	premium contributions; authorizing the Department of
17	Management Services to adopt rules; providing an
18	effective date.
19
20	Be It Enacted by the Legislature of the State of Florida:
21
22	Section 1.  Section 110.1228, Florida Statutes, is
23	amended to read:
24	110.1228  Participation by small counties, small
25	municipalities, and district school boards located in small
26	counties.--
27	(1)  As used in this section, the term:
28	(a)  "district school board" has the same meaning as in
29	s. 1003.01 means a district school board located in a small
30	county or a district school board that receives funding
31	pursuant to s. 1011.62(7).
32	(b)  "Small municipality" means an incorporated
33	municipality that has a population of 12,500 or fewer
34	according to the most recent decennial census.
35	(c)  "Small county" means a county that has a population
36	of 100,000 or fewer according to the most recent decennial
37	census.
38	(2)  The governing body of a small county or small
39	municipality or a district school board may apply for
40	participation in the state group health insurance program
41	authorized in s. 110.123 and the prescription drug coverage
42	program authorized by s. 110.12315 by submitting an
43	application along with a $500 nonrefundable fee to the
44	department.
45	(3)  Any costs or savings to the state group health
46	insurance program or the prescription drug coverage program
47	resulting from such participation shall be passed on to the
48	local government participants and their employees. Such costs
49	or savings shall be delineated based on the impact to the
50	state, state officers and employees, and local government
51	employers and their employees.
52	(4)  As a prerequisite to the adoption of an ordinance or
53	resolution for participation in the state group health
54	insurance program and prescription drug coverage program, a
55	small county, small municipality, or district school board
56	shall issue a request for proposals to provide health
57	insurance and prescription drug coverage. Such request for
58	proposals shall seek coverages equivalent to those offered
59	currently by the small county, small municipality, or district
60	school board and coverages equivalent to the state group
61	health insurance program and prescription drug coverage
62	program. Such request for proposals must provide an
63	opportunity for the receipt of competitive proposals from all
64	interested parties without restriction. The small county,
65	small municipality, or and district school board shall review
66	and consider all responsive proposals before prior to the
67	adoption of any ordinance or resolution for participation in
68	the state group health insurance program and prescription drug
69	coverage program.
70	(5)  If the department determines that a small county,
71	small municipality, or district school board is eligible to
72	enroll, the small county, small municipality, or district
73	school board must agree to the following terms and conditions:
74	(a)  The minimum enrollment or contractual period will be
75	3 years.
76	(b)  The small county, small municipality, or district
77	school board must pay to the department an initial
78	administrative fee of not less than $2.61 per enrollee per
79	month, or such other amount established annually to fully
80	reimburse the department for its costs.
81	(c)  Termination of participation of a small county,
82	small municipality, or district school board requires written
83	notice 1 year before the termination date.
84	(d)  If participation is terminated, a small county,
85	small municipality, or district school board may not reapply
86	for participation for a period of 2 years.
87	(e)  Small Counties, small municipalities, and district
88	school boards shall reimburse the state for 100 percent of its
89	costs, including administrative costs.
90	(f)  If a small county, small municipality, or district
91	school board employer fails to make the payments required by
92	this section to fully reimburse the state, the Department of
93	Revenue or the Department of Financial Services shall, upon
94	the request of the Department of Management Services, deduct
95	the amount owed by the employer from any funds not pledged to
96	bond debt service satisfaction that are to be distributed by
97	it to the small county, small municipality, or district school
98	board. The amounts so deducted shall be transferred to the
99	Department of Management Services for further distribution to
100	the trust funds in accordance with this chapter.
101	(g)  The small county, small municipality, or district
102	school board shall furnish the department any information
103	requested by the department which the department considers
104	necessary to administer the state group health insurance
105	program and the prescription drug coverage program.
106	(h)  The small county, small municipality, or district
107	school board shall adopt the state's eligibility rules.
108	(i)  The small county, small municipality, or district
109	school board may not participate in the state's cafeteria plan
110	that allows for pretax treatment of premium contributions. If
111	pretax treatment is desirable for employees of these
112	participating employers, each employee of a participating
113	employer shall execute a salary reduction agreement with that
114	employer, and each participating employer shall establish its
115	own cafeteria plan.
116	(j)  The small county, small municipality, or district
117	school board shall pay monthly premiums in amounts sufficient
118	to cover claims costs, department administrative costs, and
119	third-party administrative costs and provide for adequate
120	reserves and cash flow by contributing 3 months' premiums and
121	costs in advance of the coverage effective date.
122	(6)  The provisions of ss. 624.436-624.446 do not apply
123	to the State Group Insurance Program or to this section.
124	(7)  The Department of Management Services may adopt
125	rules necessary to administer this section.
126	Section 2.  This act shall take effect October 1, 2008.

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