HB 175

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, special
7	taxing districts, and district school boards rather than
8	only small counties and municipalities and certain school
9	boards; specifying prerequisites and conditions for
10	participation; providing a minimum period of enrollment;
11	requiring that a participating county, municipality,
12	special taxing district, or school board reimburse the
13	Department of Management Services for its costs, including
14	administrative costs; prohibiting a county, municipality,
15	special taxing district, or school board from
16	participating in the state's plan allowing for pretax
17	treatment of premium contributions; authorizing the
18	Department of Management Services to adopt rules;
19	providing an effective date.
20
21	Be It Enacted by the Legislature of the State of Florida:
22
23	Section 1.  Section 110.1228, Florida Statutes, is amended
24	to read:
25	110.1228  Participation by small counties, small
26	municipalities, special taxing districts, and district school
27	boards located in small counties.--
28	(1)  As used in this section, the term:
29	(a)  "district school board" has the same meaning as in s.
30	1003.01 means a district school board located in a small county
31	or a district school board that receives funding pursuant to s.
32	1011.62(7).
33	(b)  "Small municipality" means an incorporated
34	municipality that has a population of 12,500 or fewer according
35	to the most recent decennial census.
36	(c)  "Small county" means a county that has a population of
37	100,000 or fewer according to the most recent decennial census.
38	(2)  The governing body of a small county, or small
39	municipality, special taxing district, or a district school
40	board may apply for participation in the state group health
41	insurance program authorized in s. 110.123 and the prescription
42	drug coverage program authorized by s. 110.12315 by submitting
43	an 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 or
49	savings shall be delineated based on the impact to the state,
50	state officers and employees, and local government employers and
51	their employees.
52	(4)  As a prerequisite to the adoption of an ordinance or
53	resolution for participation in the state group health insurance
54	program and prescription drug coverage program, a small county,
55	small municipality, special taxing district, or district school
56	board 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, special
60	taxing district, or district school board and coverages
61	equivalent to the state group health insurance program and
62	prescription drug coverage program. Such request for proposals
63	must provide an opportunity for the receipt of competitive
64	proposals from all interested parties without restriction. The
65	small county, small municipality, special taxing district, and
66	district school board shall review and consider all responsive
67	proposals before prior to the adoption of any ordinance or
68	resolution for participation in the state group health insurance
69	program and prescription drug coverage program.
70	(5)  If the department determines that a small county,
71	small municipality, special taxing district, or district school
72	board is eligible to enroll, the small county, small
73	municipality, special taxing district, or district school board
74	must agree to the following terms and conditions:
75	(a)  The minimum enrollment or contractual period will be 3
76	years.
77	(b)  The small county, small municipality, special taxing
78	district, or district school board must pay to the department an
79	initial administrative fee of not less than $2.61 per enrollee
80	per month, or such other amount established annually to fully
81	reimburse the department for its costs.
82	(c)  Termination of participation of a small county, small
83	municipality, special taxing district, or district school board
84	requires written notice 1 year before the termination date.
85	(d)  If participation is terminated, a small county, small
86	municipality, special taxing district, or district school board
87	may not reapply for participation for a period of 2 years.
88	(e)  Small Counties, small municipalities, special taxing
89	districts, and district school boards shall reimburse the state
90	for 100 percent of its costs, including administrative costs.
91	(f)  If a small county, small municipality, special taxing
92	district, or district school board employer fails to make the
93	payments required by this section to fully reimburse the state,
94	the Department of Revenue or the Department of Financial
95	Services shall, upon the request of the Department of Management
96	Services, deduct the amount owed by the employer from any funds
97	not pledged to bond debt service satisfaction that are to be
98	distributed by it to the small county, small municipality,
99	special taxing district, or district school board. The amounts
100	so deducted shall be transferred to the Department of Management
101	Services for further distribution to the trust funds in
102	accordance with this chapter.
103	(g)  The small county, small municipality, special taxing
104	district, or district school board shall furnish the department
105	any information requested by the department which the department
106	considers necessary to administer the state group health
107	insurance program and the prescription drug coverage program.
108	(h)  The small county, small municipality, special taxing
109	district, or district school board shall adopt the state's
110	eligibility rules.
111	(i)  The small county, small municipality, special taxing
112	district, or district school board may not participate in the
113	state's cafeteria plan that allows for pretax treatment of
114	premium contributions. If pretax treatment is desirable for
115	employees of these participating employers, each employee of a
116	participating employer shall execute a salary reduction
117	agreement with that employer, and each participating employer
118	shall establish its own cafeteria plan.
119	(j)  The small county, small municipality, special taxing
120	district, or district school board shall pay monthly premiums in
121	amounts sufficient to cover claims costs, department
122	administrative costs, and third-party administrative costs and
123	provide for adequate reserves and cash flow by contributing 3
124	months' premiums and costs in advance of the coverage effective
125	date.
126	(6)  The provisions of ss. 624.436-624.446 do not apply to
127	the State Group Insurance Program or to this section.
128	(7)  The Department of Management Services may adopt rules
129	necessary to administer this section.
130	Section 2.  This act shall take effect October 1, 2009.

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