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. 32 33 Be It Enacted by the Legislature of the State of Florida: 34 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
whichhave 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.