HB 453

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	for their officers and employees through interlocal
6	agreements; providing an exception; requiring each
7	school district to enter into an interlocal agreement
8	and establish the School District Insurance Consortium
9	governed by a board of directors; providing for
10	membership and specifying terms of office for board
11	members; authorizing the board to employ staff or
12	contract for staffing services to be provided to the
13	consortium; requiring the Department of Management
14	Services to provide technical services to the
15	consortium; requiring the consortium to advertise for
16	competitive bids for insurance; authorizing the
17	awarding of bids on a statewide or regional basis and
18	the selection of multiple insurance providers;
19	requiring that school districts engage in collective
20	bargaining with certified bargaining agents; providing
21	an effective date.
22
23	Be It Enacted by the Legislature of the State of Florida:
24
25	Section 1.  Subsection (2) of section 112.08, Florida
26	Statutes, is amended to read:
27	112.08  Group insurance for public officers, employees, and
28	certain volunteers; physical examinations.-
29	(2)(a)  Notwithstanding any general law or special act to
30	the contrary and except as provided under paragraph (c), every
31	local governmental unit may is authorized to provide and pay out
32	of its available funds for all or part of the premium for life,
33	health, accident, hospitalization, legal expense, or annuity
34	insurance, or all or any kinds of such insurance, for the
35	officers and employees of the local governmental unit and for
36	health, accident, hospitalization, and legal expense insurance
37	for the dependents of such officers and employees upon a group
38	insurance plan and, to that end, to enter into contracts with
39	insurance companies or professional administrators to provide
40	such insurance.
41	(a)  Before entering any contract for insurance, the local
42	governmental unit shall advertise for competitive bids,; and
43	such contract shall be let upon the basis of such bids. If a
44	contracting health insurance provider becomes financially
45	impaired as determined by the Office of Insurance Regulation of
46	the Financial Services Commission or otherwise fails or refuses
47	to provide the contracted-for coverage or coverages, the local
48	government may purchase insurance, enter into risk management
49	programs, or contract with third-party administrators and may
50	make such acquisitions by advertising for competitive bids or by
51	direct negotiations and contract. The local governmental unit
52	may undertake simultaneous negotiations with those companies
53	that which have submitted reasonable and timely bids and are
54	found by the local governmental unit to be fully qualified and
55	capable of meeting all servicing requirements. Each local
56	governmental unit may self-insure any plan for health, accident,
57	and hospitalization coverage or enter into a risk management
58	consortium to provide such coverage, subject to approval based
59	on actuarial soundness by the Office of Insurance Regulation;
60	and each shall contract with an insurance company or
61	professional administrator qualified and approved by the office
62	to administer such a plan.
63	(b)  In order to obtain approval from the Office of
64	Insurance Regulation of any self-insured plan for health,
65	accident, and hospitalization coverage, each local governmental
66	unit or consortium shall submit its plan along with a
67	certification as to the actuarial soundness of the plan, which
68	certification is prepared by an actuary who is a member of the
69	Society of Actuaries or the American Academy of Actuaries. The
70	Office of Insurance Regulation may shall not approve the plan
71	unless it determines that the plan is designed to provide
72	sufficient revenues to pay current and future liabilities, as
73	determined according to generally accepted actuarial principles.
74	After implementation of an approved plan, each local
75	governmental unit or consortium shall annually submit to the
76	Office of Insurance Regulation a report that which includes a
77	statement prepared by an actuary who is a member of the Society
78	of Actuaries or the American Academy of Actuaries as to the
79	actuarial soundness of the plan. The report is due 90 days after
80	the close of the fiscal year of the plan. The report must
81	include shall consist of, but need is not be limited to:
82	1.  The adequacy of contribution rates in meeting the level
83	of benefits provided and the changes, if any, needed in the
84	contribution rates to achieve or preserve a level of funding
85	deemed adequate to enable payment of the benefit amounts
86	provided under the plan and a valuation of present assets, based
87	on statement value, and prospective assets and liabilities of
88	the plan and the extent of any unfunded accrued liabilities.
89	2.  A plan to amortize any unfunded liabilities and a
90	description 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
93	unfunded liabilities.
94	5.  A comparative review illustrating the level of funds
95	available to the plan from rates, investment income, and other
96	sources realized over the period covered by the report with the
97	assumptions used.
98	6.  A statement by the actuary that the report is complete
99	and accurate and that in the actuary's opinion the techniques
100	and assumptions used are reasonable and meet the requirements
101	and intent of this subsection.
102	7.  Other factors or statements as required by the office
103	in order to determine the actuarial soundness of the plan.
104
105	All assumptions used in the report must shall be based on
106	recognized actuarial principles acceptable to the Office of
107	Insurance Regulation. The office shall review the report and
108	shall notify the administrator of the plan and each entity
109	participating in the plan, as identified by the administrator,
110	of any actuarial deficiencies. Each local governmental unit is
111	responsible for payment of valid claims of its employees which
112	that are not paid within 60 days after receipt by the plan
113	administrator or consortium.
114	(c)  Beginning July 1, 2013, or upon the expiration or
115	renewal date of any existing contract, whichever occurs later,
116	school districts shall procure health, accident, and
117	hospitalization insurance through a purchasing interlocal
118	agreement unless the school board at a duly noticed public
119	meeting determines that purchasing insurance outside the plan
120	procured through the interlocal agreement, as provided under
121	paragraphs (a) and (b), is financially advantageous to the
122	school district.
123	1.  Each school district shall enter into an interlocal
124	agreement as provided in s. 163.01 in order to establish the
125	School District Insurance Consortium through which such
126	insurance shall be procured for officers and employees of the
127	school district and their dependents.
128	2.  The consortium shall be governed by a board of
129	directors comprised of nine members, three of whom shall be
130	elected school board members appointed by the Florida School
131	Boards Association, Inc., three of whom shall be elected or
132	appointed superintendents of schools appointed by the Florida
133	Association of District School Superintendents, Inc., two of
134	whom shall be public school teachers or support personnel
135	appointed by the Florida Education Association, and one of whom
136	shall have experience in running employee-benefit systems, to be
137	appointed by the other members of the consortium. Consortium
138	board members shall be appointed to 2-year terms. The board may
139	employ staff or contract for staffing services to be provided to
140	the consortium. The Department of Management Services shall
141	provide technical services to the consortium as requested by the
142	board.
143	3.  Notwithstanding any other provision of law, the
144	consortium shall advertise for competitive bids for such
145	insurance, and the contracts for such insurance shall be let
146	upon the basis of such bids. The consortium shall advertise for
147	proposals for a statewide insurance plan as well as plans
148	providing coverage on a regional basis. In determining
149	appropriate regions, the consortium shall group school districts
150	geographically in a manner that includes school districts of
151	varying sizes for the purpose of ensuring the availability of
152	coverage for all districts in the region. Contracts may be
153	awarded on a statewide or regional basis, and more than one
154	provider may be selected to provide insurance. School districts
155	shall engage in collective bargaining with the certified
156	bargaining agent for any unit of employees for which health,
157	accident, or hospitalization insurance is provided, as required
158	by part II of chapter 447, with regard to coverage offered, cost
159	for dependent coverage, deductibles, optional coverage, and
160	other matters that are subject to collective bargaining as
161	required by state law.
162	(d)(c)  Every local governmental unit may is authorized to
163	expend funds for preemployment physical examinations and
164	postemployment physical examinations.
165	Section 2.  This act shall take effect July 1, 2012.

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