Florida Senate - 2023                                    SB 1062
       
       
        
       By Senator Collins
       
       
       
       
       
       14-01609-23                                           20231062__
    1                        A bill to be entitled                      
    2         An act relating to health care benefit coverage for
    3         members of nonprofit organizations and agricultural
    4         cooperative associations; renaming the title of ch.
    5         632, F.S.; creating parts I and II of ch. 632, F.S.,
    6         entitled “Fraternal Benefit Societies” and “Nonprofit
    7         Membership Organizations and Agricultural Cooperative
    8         Associations,” respectively; creating s. 632.6401,
    9         F.S.; providing a short title; providing a purpose;
   10         defining terms; authorizing nonprofit membership
   11         organizations and agricultural cooperative
   12         associations to offer health care benefit coverage to
   13         their members; providing that such coverage is not
   14         considered insurance; authorizing such nonprofit
   15         membership organizations and agricultural cooperative
   16         associations to cede individual risks to certain
   17         insurers by reinsurance agreements; requiring such
   18         organizations and associations to file by a specified
   19         date each year a specified statement with the
   20         Commissioner of Insurance Regulation; authorizing the
   21         Financial Services Commission to adopt rules;
   22         providing an effective date.
   23          
   24  Be It Enacted by the Legislature of the State of Florida:
   25  
   26         Section 1. Chapter 632, Florida Statutes, entitled
   27  “Fraternal Benefit Societies,” is renamed “Nonprofit Health
   28  Coverage.”
   29         Section 2. (1) Part I of chapter 632, Florida Statutes,
   30  consisting of ss. 632.601-632.638, Florida Statutes, is created
   31  and entitled “Fraternal Benefit Societies.”
   32         (2) Part II of chapter 632, Florida Statutes, consisting of
   33  s. 632.6401, Florida Statutes, is created and entitled
   34  “Nonprofit Membership Organizations and Agricultural Cooperative
   35  Associations.”
   36         Section 3. Section 632.6401, Florida Statutes, is created
   37  to read:
   38         632.6401 Health coverage by nonprofit membership
   39  organizations and agricultural cooperative associations.—
   40         (1) This section may be cited as the “Florida Nonprofit
   41  Health Coverage Deregulation Act of 2023.”
   42         (2) The purpose of this section is to allow nonprofit
   43  membership organizations and agricultural cooperative
   44  associations to offer health coverage options to their members.
   45         (3) As used in this section, the term:
   46         (a) “Agricultural cooperative association” means an
   47  association established to promote, foster, and encourage the
   48  marketing of agricultural products through cooperation of
   49  agricultural producers.
   50         (b) “Nonprofit membership organization” means a
   51  professional or trade association or any entity with dues-paying
   52  members which is exempt from federal income tax under s.
   53  501(c)(3) of the Internal Revenue Code and which exists to serve
   54  its members beyond just offering health coverage.
   55         (4) A nonprofit membership organization or an agricultural
   56  cooperative association may offer health care benefit coverage
   57  to its members. Such health care benefit coverage is not
   58  considered insurance, notwithstanding any provision of law to
   59  the contrary. A nonprofit membership organization or an
   60  agricultural cooperative association offering health care
   61  benefit coverage to its members:
   62         (a) May, by a reinsurance agreement, cede any individual
   63  risk in whole or in part to an insurer that has the power to
   64  make such reinsurance and is authorized to do business in this
   65  state.
   66         (b) Shall, by February 28 of each year, file a signed,
   67  certified statement of actuarial opinion with the Commissioner
   68  of Insurance Regulation.
   69         (5) The commission may adopt rules to administer this
   70  section.
   71         Section 4. This act shall take effect January 1, 2024.