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A bill to be entitled

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An act relating to local government officers and

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employees; amending s. 110.1228, F.S.; expanding

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eligibility for participation in the state group health

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insurance program and the prescription drug coverage

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program to include all counties, municipalities, and

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district school boards rather than only small counties and

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municipalities and certain school boards; specifying

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prerequisites and conditions for participation; providing

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a minimum period of enrollment; requiring that a

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participating county, municipality, or school board

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reimburse the Department of Management Services for its

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costs, including administrative costs; prohibiting a

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county, municipality, or school board from participating

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in the state's plan allowing for pretax treatment of

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premium contributions; authorizing the Department of

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Management Services to adopt rules; providing an effective

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date.

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Be It Enacted by the Legislature of the State of Florida:

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     Section 1.  Section 110.1228, Florida Statutes, is amended

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to read:

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     110.1228 Participation by small counties, small

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municipalities, and district school boards located in small

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counties.--

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     (1) As used in this section, the term:

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     (a) "district school board" has the same meaning as in s.

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1003.01 means a district school board located in a small county

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or a district school board that receives funding pursuant to s.

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1011.62(7).

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     (b) "Small municipality" means an incorporated municipality

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

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recent decennial census.

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     (c) "Small county" means a county that has a population of

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100,000 or fewer according to the most recent decennial census.

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     (2) The governing body of a small county or small

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municipality or a district school board may apply for

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participation in the state group health insurance program

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authorized in s. 110.123 and the prescription drug coverage

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program authorized by s. 110.12315 by submitting an application

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along with a $500 nonrefundable fee to the department.

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     (3)  Any costs or savings to the state group health

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insurance program or the prescription drug coverage program

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resulting from such participation shall be passed on to the local

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government participants and their employees.  Such costs or

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savings shall be delineated based on the impact to the state,

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state officers and employees, and local government employers and

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their employees.

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     (4)  As a prerequisite to the adoption of an ordinance or

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resolution for participation in the state group health insurance

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program and prescription drug coverage program, a small county,

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small municipality, or district school board shall issue a

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request for proposals to provide health insurance and

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prescription drug coverage. Such request for proposals shall seek

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coverages equivalent to those offered currently by the small

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county, small municipality, or district school board and

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coverages equivalent to the state group health insurance program

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and prescription drug coverage program. Such request for

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proposals must provide an opportunity for the receipt of

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competitive proposals from all interested parties without

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restriction. The small county, small municipality, or and

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district school board shall review and consider all responsive

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proposals before prior to the adoption of any ordinance or

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resolution for participation in the state group health insurance

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program and prescription drug coverage program.

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     (5) If the department determines that a small county, small

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municipality, or district school board is eligible to enroll, the

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small county, small municipality, or district school board must

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agree to the following terms and conditions:

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     (a)  The minimum enrollment or contractual period will be 3

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years.

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     (b) The small county, small municipality, or district

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school board must pay to the department an initial administrative

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fee of not less than $2.61 per enrollee per month, or such other

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amount established annually to fully reimburse the department for

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its costs.

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     (c) Termination of participation of a small county, small

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municipality, or district school board requires written notice 1

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year before the termination date.

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     (d) If participation is terminated, a small county, small

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municipality, or district school board may not reapply for

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participation for a period of 2 years.

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     (e) Small Counties, small municipalities, and district

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school boards shall reimburse the state for 100 percent of its

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costs, including administrative costs.

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     (f) If a small county, small municipality, or district

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school board employer fails to make the payments required by this

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section to fully reimburse the state, the Department of Revenue

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or the Department of Financial Services shall, upon the request

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of the Department of Management Services, deduct the amount owed

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by the employer from any funds not pledged to bond debt service

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satisfaction that are to be distributed by it to the small

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county, small municipality, or district school board. The amounts

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so deducted shall be transferred to the Department of Management

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Services for further distribution to the trust funds in

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accordance with this chapter.

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     (g) The small county, small municipality, or district

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school board shall furnish the department any information

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requested by the department which the department considers

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necessary to administer the state group health insurance program

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and the prescription drug coverage program.

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     (h) The small county, small municipality, or district

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school board shall adopt the state's eligibility rules.

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     (i) The small county, small municipality, or district

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school board may not participate in the state's cafeteria plan

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that allows for pretax treatment of premium contributions.  If

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pretax treatment is desirable for employees of these

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participating employers, each employee of a participating

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employer shall execute a salary reduction agreement with that

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employer, and each participating employer shall establish its own

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cafeteria plan.

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     (j) The small county, small municipality, or district

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school board shall pay monthly premiums in amounts sufficient to

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cover claims costs, department administrative costs, and third-

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party administrative costs and provide for adequate reserves and

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cash flow by contributing 3 months' premiums and costs in advance

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of the coverage effective date.

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     (6)  The provisions of ss. 624.436-624.446 do not apply to

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the State Group Insurance Program or to this section.

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     (7)  The Department of Management Services may adopt rules

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necessary to administer this section.

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     Section 2.  This act shall take effect October 1, 2008.