HB 453

A bill to be entitled
2An act relating to group insurance for public
3employees; amending s. 112.08, F.S.; requiring that
4school districts procure certain types of insurance
5for their officers and employees through interlocal
6agreements; providing an exception; requiring each
7school district to enter into an interlocal agreement
8and establish the School District Insurance Consortium
9governed by a board of directors; providing for
10membership and specifying terms of office for board
11members; authorizing the board to employ staff or
12contract for staffing services to be provided to the
13consortium; requiring the Department of Management
14Services to provide technical services to the
15consortium; requiring the consortium to advertise for
16competitive bids for insurance; authorizing the
17awarding of bids on a statewide or regional basis and
18the selection of multiple insurance providers;
19requiring that school districts engage in collective
20bargaining with certified bargaining agents; providing
21an effective date.
23Be It Enacted by the Legislature of the State of Florida:
25     Section 1.  Subsection (2) of section 112.08, Florida
26Statutes, is amended to read:
27     112.08  Group insurance for public officers, employees, and
28certain volunteers; physical examinations.-
29     (2)(a)  Notwithstanding any general law or special act to
30the contrary and except as provided under paragraph (c), every
31local governmental unit may is authorized to provide and pay out
32of its available funds for all or part of the premium for life,
33health, accident, hospitalization, legal expense, or annuity
34insurance, or all or any kinds of such insurance, for the
35officers and employees of the local governmental unit and for
36health, accident, hospitalization, and legal expense insurance
37for the dependents of such officers and employees upon a group
38insurance plan and, to that end, to enter into contracts with
39insurance companies or professional administrators to provide
40such insurance.
41     (a)  Before entering any contract for insurance, the local
42governmental unit shall advertise for competitive bids,; and
43such contract shall be let upon the basis of such bids. If a
44contracting health insurance provider becomes financially
45impaired as determined by the Office of Insurance Regulation of
46the Financial Services Commission or otherwise fails or refuses
47to provide the contracted-for coverage or coverages, the local
48government may purchase insurance, enter into risk management
49programs, or contract with third-party administrators and may
50make such acquisitions by advertising for competitive bids or by
51direct negotiations and contract. The local governmental unit
52may undertake simultaneous negotiations with those companies
53that which have submitted reasonable and timely bids and are
54found by the local governmental unit to be fully qualified and
55capable of meeting all servicing requirements. Each local
56governmental unit may self-insure any plan for health, accident,
57and hospitalization coverage or enter into a risk management
58consortium to provide such coverage, subject to approval based
59on actuarial soundness by the Office of Insurance Regulation;
60and each shall contract with an insurance company or
61professional administrator qualified and approved by the office
62to administer such a plan.
63     (b)  In order to obtain approval from the Office of
64Insurance Regulation of any self-insured plan for health,
65accident, and hospitalization coverage, each local governmental
66unit or consortium shall submit its plan along with a
67certification as to the actuarial soundness of the plan, which
68certification is prepared by an actuary who is a member of the
69Society of Actuaries or the American Academy of Actuaries. The
70Office of Insurance Regulation may shall not approve the plan
71unless it determines that the plan is designed to provide
72sufficient revenues to pay current and future liabilities, as
73determined according to generally accepted actuarial principles.
74After implementation of an approved plan, each local
75governmental unit or consortium shall annually submit to the
76Office of Insurance Regulation a report that which includes a
77statement prepared by an actuary who is a member of the Society
78of Actuaries or the American Academy of Actuaries as to the
79actuarial soundness of the plan. The report is due 90 days after
80the close of the fiscal year of the plan. The report must
81include shall consist of, but need is not be limited to:
82     1.  The adequacy of contribution rates in meeting the level
83of benefits provided and the changes, if any, needed in the
84contribution rates to achieve or preserve a level of funding
85deemed adequate to enable payment of the benefit amounts
86provided under the plan and a valuation of present assets, based
87on statement value, and prospective assets and liabilities of
88the plan and the extent of any unfunded accrued liabilities.
89     2.  A plan to amortize any unfunded liabilities and a
90description of actions taken to reduce unfunded liabilities.
91     3.  A description and explanation of actuarial assumptions.
92     4.  A schedule illustrating the amortization of any
93unfunded liabilities.
94     5.  A comparative review illustrating the level of funds
95available to the plan from rates, investment income, and other
96sources realized over the period covered by the report with the
97assumptions used.
98     6.  A statement by the actuary that the report is complete
99and accurate and that in the actuary's opinion the techniques
100and assumptions used are reasonable and meet the requirements
101and intent of this subsection.
102     7.  Other factors or statements as required by the office
103in order to determine the actuarial soundness of the plan.
105All assumptions used in the report must shall be based on
106recognized actuarial principles acceptable to the Office of
107Insurance Regulation. The office shall review the report and
108shall notify the administrator of the plan and each entity
109participating in the plan, as identified by the administrator,
110of any actuarial deficiencies. Each local governmental unit is
111responsible for payment of valid claims of its employees which
112that are not paid within 60 days after receipt by the plan
113administrator or consortium.
114     (c)  Beginning July 1, 2013, or upon the expiration or
115renewal date of any existing contract, whichever occurs later,
116school districts shall procure health, accident, and
117hospitalization insurance through a purchasing interlocal
118agreement unless the school board at a duly noticed public
119meeting determines that purchasing insurance outside the plan
120procured through the interlocal agreement, as provided under
121paragraphs (a) and (b), is financially advantageous to the
122school district.
123     1.  Each school district shall enter into an interlocal
124agreement as provided in s. 163.01 in order to establish the
125School District Insurance Consortium through which such
126insurance shall be procured for officers and employees of the
127school district and their dependents.
128     2.  The consortium shall be governed by a board of
129directors comprised of nine members, three of whom shall be
130elected school board members appointed by the Florida School
131Boards Association, Inc., three of whom shall be elected or
132appointed superintendents of schools appointed by the Florida
133Association of District School Superintendents, Inc., two of
134whom shall be public school teachers or support personnel
135appointed by the Florida Education Association, and one of whom
136shall have experience in running employee-benefit systems, to be
137appointed by the other members of the consortium. Consortium
138board members shall be appointed to 2-year terms. The board may
139employ staff or contract for staffing services to be provided to
140the consortium. The Department of Management Services shall
141provide technical services to the consortium as requested by the
143     3.  Notwithstanding any other provision of law, the
144consortium shall advertise for competitive bids for such
145insurance, and the contracts for such insurance shall be let
146upon the basis of such bids. The consortium shall advertise for
147proposals for a statewide insurance plan as well as plans
148providing coverage on a regional basis. In determining
149appropriate regions, the consortium shall group school districts
150geographically in a manner that includes school districts of
151varying sizes for the purpose of ensuring the availability of
152coverage for all districts in the region. Contracts may be
153awarded on a statewide or regional basis, and more than one
154provider may be selected to provide insurance. School districts
155shall engage in collective bargaining with the certified
156bargaining agent for any unit of employees for which health,
157accident, or hospitalization insurance is provided, as required
158by part II of chapter 447, with regard to coverage offered, cost
159for dependent coverage, deductibles, optional coverage, and
160other matters that are subject to collective bargaining as
161required by state law.
162     (d)(c)  Every local governmental unit may is authorized to
163expend funds for preemployment physical examinations and
164postemployment physical examinations.
165     Section 2.  This act shall take effect July 1, 2012.

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