HB 635

1	A bill to be entitled
2	An act relating to group insurance for public employees;
3	amending s. 112.08, F.S.; requiring that school districts
4	procure certain types of insurance through interlocal
5	agreements; providing an exception; requiring that each
6	school district in this state enter into a specified type
7	of interlocal agreement and establish the School District
8	Insurance Consortium; providing purposes of the
9	consortium; requiring that the consortium be governed by a
10	board of directors consisting of a specified number of
11	members; providing requirements for membership on the
12	board; specifying terms of office for board members;
13	authorizing the board to employ staff or contract for
14	staffing services to be provided to the consortium;
15	requiring that the Department of Management Services
16	provide technical services to the consortium as requested
17	by the board; requiring the consortium to advertise for
18	competitive bids for health, accident, or hospitalization
19	insurance, as well as certain insurance plans; requiring
20	that the contracts for such insurance be let upon the
21	basis of such bids; requiring that the consortium take
22	certain actions and consider certain factors when defining
23	coverage regions; authorizing the awarding of bids on a
24	statewide or regional basis and the selection of multiple
25	insurance providers; requiring that school districts
26	engage in collective bargaining with the certified
27	bargaining agent for any unit of employees for which
28	health, accident, or hospitalization insurance is
29	provided; providing an effective date.
30
31	Be It Enacted by the Legislature of the State of Florida:
32
33	Section 1.  Paragraph (a) of subsection (2) of section
34	112.08, Florida Statutes, is amended, and paragraph (d) is added
35	to that subsection, to read:
36	112.08  Group insurance for public officers, employees, and
37	certain volunteers; physical examinations.-
38	(2)(a)  Notwithstanding any general law or special act to
39	the contrary, every local governmental unit is authorized to
40	provide and pay out of its available funds for all or part of
41	the premium for life, health, accident, hospitalization, legal
42	expense, or annuity insurance, or all or any kinds of such
43	insurance, for the officers and employees of the local
44	governmental unit and for health, accident, hospitalization, and
45	legal expense insurance for the dependents of such officers and
46	employees upon a group insurance plan and, to that end, to enter
47	into contracts with insurance companies or professional
48	administrators to provide such insurance. Before entering any
49	contract for insurance, the local governmental unit shall
50	advertise for competitive bids; and such contract shall be let
51	upon the basis of such bids. Beginning on July 1, 2012, or upon
52	the expiration or renewal date of any existing contract,
53	whichever occurs later, school districts shall procure such
54	insurance through a purchasing interlocal agreement as provided
55	in paragraph (d) unless the school board, at a duly noticed
56	public meeting, determines that the purchase of insurance
57	outside the plan procured through the interlocal agreement is
58	financially advantageous to the school district. If a
59	contracting health insurance provider becomes financially
60	impaired as determined by the Office of Insurance Regulation of
61	the Financial Services Commission or otherwise fails or refuses
62	to provide the contracted-for coverage or coverages, the local
63	government may purchase insurance, enter into risk management
64	programs, or contract with third-party administrators and may
65	make such acquisitions by advertising for competitive bids or by
66	direct negotiations and contract. The local governmental unit
67	may undertake simultaneous negotiations with those companies
68	that which have submitted reasonable and timely bids and are
69	found by the local governmental unit to be fully qualified and
70	capable of meeting all servicing requirements. Each local
71	governmental unit may self-insure any plan for health, accident,
72	and hospitalization coverage or enter into a risk management
73	consortium to provide such coverage, subject to approval based
74	on actuarial soundness by the Office of Insurance Regulation;
75	and each shall contract with an insurance company or
76	professional administrator qualified and approved by the office
77	to administer such a plan.
78	(d)1.  Each school district in this state shall enter into
79	an interlocal agreement as provided in s. 163.01 to establish
80	the School District Insurance Consortium through which health,
81	accident, and hospitalization insurance shall be procured for
82	officers and employees of the school district and their
83	dependents unless the school board opts out in the manner set
84	forth in paragraph (a).
85	2.  The consortium shall be governed by a board of
86	directors comprised of nine members, three of whom shall be
87	elected school board members appointed by the Florida School
88	Boards Association, Inc., three of whom shall be elected or
89	appointed superintendents of schools appointed by the Florida
90	Association of District School Superintendents, Inc., two of
91	whom shall be public school teachers or support personnel
92	appointed by the Florida Education Association, and one of whom
93	shall have experience in running employee-benefit systems, to be
94	appointed by the other members of the consortium. Consortium
95	board members shall be appointed to 2-year terms. The board may
96	employ staff or contract for staffing services to be provided to
97	the consortium. The Department of Management Services shall
98	provide technical services to the consortium as requested by the
99	board.
100	3.  Notwithstanding any other provision of law, the
101	consortium shall advertise for competitive bids for such
102	insurance, and the contracts for such insurance shall be let
103	upon the basis of such bids. The consortium shall advertise for
104	proposals for a statewide insurance plan as well as plans
105	providing coverage on a regional basis. In determining
106	appropriate regions, the consortium shall group school districts
107	geographically in a manner that includes school districts of
108	varying sizes for the purpose of ensuring the availability of
109	coverage for all districts in the region. Contracts may be
110	awarded on a statewide or regional basis, and more than one
111	provider may be selected to provide insurance. School districts
112	shall engage in collective bargaining with the certified
113	bargaining agent for any unit of employees for which health,
114	accident, or hospitalization insurance is provided, as required
115	by part II of chapter 447, with regard to coverage offered, cost
116	for dependent coverage, deductibles, optional coverage, and
117	other matters that are subject to collective bargaining as
118	required by state law.
119	Section 2.  This act shall take effect July 1, 2011.

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