September 28, 2020
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       Florida Senate - 2010                                     SB 512
       
       
       
       By Senator Justice
       
       
       
       
       16-00163-10                                            2010512__
    1                        A bill to be entitled                      
    2         An act relating to local government officers and
    3         employees; amending s. 110.1228, F.S.; expanding
    4         eligibility for participation in the state group
    5         health insurance program and the prescription drug
    6         coverage program to include all counties,
    7         municipalities, special taxing districts, and district
    8         school boards rather than only small counties and
    9         municipalities and certain school boards; specifying
   10         prerequisites and conditions for participation;
   11         providing a minimum period of enrollment; requiring
   12         that a participating county, municipality, special
   13         taxing district, or school board reimburse the
   14         Department of Management Services for its costs,
   15         including administrative costs; prohibiting a county,
   16         municipality, special taxing district, or school board
   17         from participating in the state’s cafeteria plan that
   18         allows for pretax treatment of premium contributions;
   19         authorizing the Department of Management Services to
   20         adopt rules; providing an effective date.
   21  
   22  Be It Enacted by the Legislature of the State of Florida:
   23  
   24         Section 1. Section 110.1228, Florida Statutes, is amended
   25  to read:
   26         110.1228 Participation by small counties, small
   27  municipalities, special taxing districts, and district school
   28  boards located in small counties.—
   29         (1) As used in this section, the term:
   30         (a) “district school board” has the same meaning as in s.
   31  1003.01 means a district school board located in a small county
   32  or a district school board that receives funding pursuant to s.
   33  1011.62(7).
   34         (b)“Small municipality” means an incorporated municipality
   35  that has a population of 12,500 or fewer according to the most
   36  recent decennial census.
   37         (c)“Small county” means a county that has a population of
   38  100,000 or fewer according to the most recent decennial census.
   39         (2) The governing body of a small county, or small
   40  municipality, special taxing district, or a district school
   41  board may apply for participation in the state group health
   42  insurance program authorized in s. 110.123 and the prescription
   43  drug coverage program authorized by s. 110.12315 by submitting
   44  an application along with a $500 nonrefundable fee to the
   45  department.
   46         (3) Any costs or savings to the state group health
   47  insurance program or the prescription drug coverage program
   48  resulting from such participation shall be passed on to the
   49  local government participants and their employees. Such costs or
   50  savings shall be delineated based on the impact to the state,
   51  state officers and employees, and local government employers and
   52  their employees.
   53         (4) As a prerequisite to the adoption of an ordinance or
   54  resolution for participation in the state group health insurance
   55  program and prescription drug coverage program, a small county,
   56  small municipality, special taxing district, or district school
   57  board shall issue a request for proposals to provide health
   58  insurance and prescription drug coverage. Such request for
   59  proposals shall seek coverages equivalent to those offered
   60  currently by the small county, small municipality, special
   61  taxing district, or district school board and coverages
   62  equivalent to the state group health insurance program and
   63  prescription drug coverage program. Such request for proposals
   64  must provide an opportunity for the receipt of competitive
   65  proposals from all interested parties without restriction. The
   66  small county, small municipality, special taxing district, and
   67  district school board shall review and consider all responsive
   68  proposals before prior to the adoption of any ordinance or
   69  resolution for participation in the state group health insurance
   70  program and prescription drug coverage program.
   71         (5) If the department determines that a small county, small
   72  municipality, special taxing district, or district school board
   73  is eligible to enroll, the small county, small municipality,
   74  special taxing district, or district school board must agree to
   75  the following terms and conditions:
   76         (a) The minimum enrollment or contractual period will be 3
   77  years.
   78         (b) The small county, small municipality, special taxing
   79  district, or district school board must pay to the department an
   80  initial administrative fee of not less than $2.61 per enrollee
   81  per month, or such other amount established annually to fully
   82  reimburse the department for its costs.
   83         (c) Termination of participation of a small county, small
   84  municipality, special taxing district, or district school board
   85  requires written notice 1 year before the termination date.
   86         (d) If participation is terminated, a small county, small
   87  municipality, special taxing district, or district school board
   88  may not reapply for participation for a period of 2 years.
   89         (e) Small Counties, small municipalities, special taxing
   90  districts, and district school boards shall reimburse the state
   91  for 100 percent of its costs, including administrative costs.
   92         (f) If a small county, small municipality, special taxing
   93  district, or district school board employer fails to make the
   94  payments required by this section to fully reimburse the state,
   95  the Department of Revenue or the Department of Financial
   96  Services shall, upon the request of the Department of Management
   97  Services, deduct the amount owed by the employer from any funds
   98  not pledged to bond debt service satisfaction which that are to
   99  be distributed by it to the small county, small municipality,
  100  special taxing district, or district school board. The amounts
  101  so deducted shall be transferred to the Department of Management
  102  Services for further distribution to the trust funds in
  103  accordance with this chapter.
  104         (g) The small county, small municipality, special taxing
  105  district, or district school board shall furnish the department
  106  any information requested by the department which the department
  107  considers necessary to administer the state group health
  108  insurance program and the prescription drug coverage program.
  109         (h) The small county, small municipality, special taxing
  110  district, or district school board shall adopt the state’s
  111  eligibility rules.
  112         (i) The small county, small municipality, special taxing
  113  district, or district school board may not participate in the
  114  state’s cafeteria plan that allows for pretax treatment of
  115  premium contributions. If pretax treatment is desirable for
  116  employees of these participating employers, each employee of a
  117  participating employer shall execute a salary reduction
  118  agreement with that employer, and each participating employer
  119  shall establish its own cafeteria plan.
  120         (j) The small county, small municipality, special taxing
  121  district, or district school board shall pay monthly premiums in
  122  amounts sufficient to cover claims costs, department
  123  administrative costs, and third-party administrative costs and
  124  provide for adequate reserves and cash flow by contributing 3
  125  months’ premiums and costs in advance of the coverage effective
  126  date.
  127         (6) The provisions of ss. 624.436-624.446 do not apply to
  128  the State Group Insurance Program or to this section.
  129         (7) The Department of Management Services may adopt rules
  130  necessary to administer this section.
  131         Section 2. This act shall take effect July 1, 2010.

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