Florida Senate - 2011                                      SB 92
       By Senator Gaetz
       4-00005-11                                              201192__
    1                        A bill to be entitled                      
    2         An act relating to group insurance for public
    3         employees; amending s. 112.08, F.S.; requiring that
    4         school districts procure certain types of insurance
    5         through interlocal agreements; providing an exception;
    6         requiring that each school district in this state
    7         enter into a specified type of interlocal agreement
    8         and establish the School District Insurance
    9         Consortium; providing purposes of the consortium;
   10         requiring that the consortium be governed by a board
   11         of directors consisting of a specified number of
   12         members; providing requirements for membership on the
   13         board; specifying terms of office for board members;
   14         authorizing the board to employ staff or contract for
   15         staffing services to be provided to the consortium;
   16         requiring that the Department of Management Services
   17         provide technical services to the consortium as
   18         requested by the board; requiring the consortium to
   19         advertise for competitive bids for health, accident,
   20         or hospitalization insurance, as well as certain
   21         insurance plans; requiring that the contracts for such
   22         insurance be let upon the basis of such bids;
   23         requiring that the consortium take certain actions and
   24         consider certain factors when defining coverage
   25         regions; authorizing the awarding of bids on a
   26         statewide or regional basis and the selection of
   27         multiple insurance providers; requiring that school
   28         districts engage in collective bargaining with the
   29         certified bargaining agent for any unit of employees
   30         for which health, accident, or hospitalization
   31         insurance is provided; providing an effective date.
   33  Be It Enacted by the Legislature of the State of Florida:
   35         Section 1. Paragraph (a) of subsection (2) of section
   36  112.08, Florida Statutes, is amended, and paragraph (d) is added
   37  to that subsection, to read:
   38         112.08 Group insurance for public officers, employees, and
   39  certain volunteers; physical examinations.—
   40         (2)(a) Notwithstanding any general law or special act to
   41  the contrary, every local governmental unit is authorized to
   42  provide and pay out of its available funds for all or part of
   43  the premium for life, health, accident, hospitalization, legal
   44  expense, or annuity insurance, or all or any kinds of such
   45  insurance, for the officers and employees of the local
   46  governmental unit and for health, accident, hospitalization, and
   47  legal expense insurance for the dependents of such officers and
   48  employees upon a group insurance plan and, to that end, to enter
   49  into contracts with insurance companies or professional
   50  administrators to provide such insurance. Before entering any
   51  contract for insurance, the local governmental unit shall
   52  advertise for competitive bids; and such contract shall be let
   53  upon the basis of such bids. Beginning on July 1, 2012, or upon
   54  the expiration or renewal date of any existing contract,
   55  whichever occurs later, school districts shall procure such
   56  insurance through a purchasing interlocal agreement as provided
   57  in paragraph (d) unless the school board, at a duly noticed
   58  public meeting, determines that the purchase of insurance
   59  outside the plan procured through the interlocal agreement is
   60  financially advantageous to the school district. If a
   61  contracting health insurance provider becomes financially
   62  impaired as determined by the Office of Insurance Regulation of
   63  the Financial Services Commission or otherwise fails or refuses
   64  to provide the contracted-for coverage or coverages, the local
   65  government may purchase insurance, enter into risk management
   66  programs, or contract with third-party administrators and may
   67  make such acquisitions by advertising for competitive bids or by
   68  direct negotiations and contract. The local governmental unit
   69  may undertake simultaneous negotiations with those companies
   70  that which have submitted reasonable and timely bids and are
   71  found by the local governmental unit to be fully qualified and
   72  capable of meeting all servicing requirements. Each local
   73  governmental unit may self-insure any plan for health, accident,
   74  and hospitalization coverage or enter into a risk management
   75  consortium to provide such coverage, subject to approval based
   76  on actuarial soundness by the Office of Insurance Regulation;
   77  and each shall contract with an insurance company or
   78  professional administrator qualified and approved by the office
   79  to administer such a plan.
   80         (d)1. Each school district in this state shall enter into
   81  an interlocal agreement as provided in s. 163.01 to establish
   82  the School District Insurance Consortium through which health,
   83  accident, and hospitalization insurance shall be procured for
   84  officers and employees of the school district and their
   85  dependents unless the school board opts out in the manner set
   86  forth in paragraph (a).
   87         2. The consortium shall be governed by a board of directors
   88  comprised of nine members, three of whom shall be elected school
   89  board members appointed by the Florida School Boards
   90  Association, Inc., three of whom shall be elected or appointed
   91  superintendents of schools appointed by the Florida Association
   92  of District School Superintendents, Inc., two of whom shall be
   93  public school teachers or support personnel appointed by the
   94  Florida Education Association, and one of whom shall have
   95  experience in running employee-benefit systems, to be appointed
   96  by the other members of the consortium. Consortium board members
   97  shall be appointed to 2-year terms. The board may employ staff
   98  or contract for staffing services to be provided to the
   99  consortium. The Department of Management Services shall provide
  100  technical services to the consortium as requested by the board.
  101         3. Notwithstanding any other provision of law, the
  102  consortium shall advertise for competitive bids for such
  103  insurance, and the contracts for such insurance shall be let
  104  upon the basis of such bids. The consortium shall advertise for
  105  proposals for a statewide insurance plan as well as plans
  106  providing coverage on a regional basis. In determining
  107  appropriate regions, the consortium shall group school districts
  108  geographically in a manner that includes school districts of
  109  varying sizes for the purpose of ensuring the availability of
  110  coverage for all districts in the region. Contracts may be
  111  awarded on a statewide or regional basis, and more than one
  112  provider may be selected to provide insurance. School districts
  113  shall engage in collective bargaining with the certified
  114  bargaining agent for any unit of employees for which health,
  115  accident, or hospitalization insurance is provided, as required
  116  by part II of chapter 447, with regard to coverage offered, cost
  117  for dependent coverage, deductibles, optional coverage, and
  118  other matters that are subject to collective bargaining as
  119  required by state law.
  120         Section 2. This act shall take effect July 1, 2011.