Bill Text: FL S2580 | 2010 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Group Insurance for Public Employees [SPSC]

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2010-04-30 - Died in Messages [S2580 Detail]

Download: Florida-2010-S2580-Introduced.html
 
       Florida Senate - 2010                                    SB 2580 
        
       By Senator Gaetz 
       4-01478A-10                                           20102580__ 
    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 administrative services to the consortium as 
   18         requested by the board; authorizing 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 define by rule the 
   24         regions for which coverage shall be bid; requiring 
   25         that the consortium take certain actions and consider 
   26         certain factors when defining coverage regions; 
   27         authorizing the awarding of bids on a statewide or 
   28         regional basis and the selection of multiple insurance 
   29         providers; requiring that the consortium recommend 
   30         rules for adoption by the Department of Management 
   31         Services; requiring that school districts engage in 
   32         collective bargaining with the certified bargaining 
   33         agent for any unit of employees for which health, 
   34         accident, or hospitalization insurance is provided; 
   35         providing an effective date. 
   36   
   37  Be It Enacted by the Legislature of the State of Florida: 
   38   
   39         Section 1. Paragraph (a) of subsection (2) of section 
   40  112.08, Florida Statutes, is amended, and paragraph (d) is added 
   41  to that subsection, to read: 
   42         112.08 Group insurance for public officers, employees, and 
   43  certain volunteers; physical examinations.— 
   44         (2)(a) Notwithstanding any general law or special act to 
   45  the contrary, every local governmental unit is authorized to 
   46  provide and pay out of its available funds for all or part of 
   47  the premium for life, health, accident, hospitalization, legal 
   48  expense, or annuity insurance, or all or any kinds of such 
   49  insurance, for the officers and employees of the local 
   50  governmental unit and for health, accident, hospitalization, and 
   51  legal expense insurance for the dependents of such officers and 
   52  employees upon a group insurance plan and, to that end, to enter 
   53  into contracts with insurance companies or professional 
   54  administrators to provide such insurance. Before entering any 
   55  contract for insurance, the local governmental unit shall 
   56  advertise for competitive bids; and such contract shall be let 
   57  upon the basis of such bids. Beginning on July 1, 2011, or upon 
   58  the expiration or renewal date of any existing contract, 
   59  whichever occurs later, school districts shall procure such 
   60  insurance through a purchasing interlocal agreement as provided 
   61  in paragraph (d) unless the school board, at a duly noticed 
   62  public meeting, determines that the purchase of insurance 
   63  outside the plan procured through the interlocal agreement is 
   64  financially advantageous to the school district. If a 
   65  contracting health insurance provider becomes financially 
   66  impaired as determined by the Office of Insurance Regulation of 
   67  the Financial Services Commission or otherwise fails or refuses 
   68  to provide the contracted-for coverage or coverages, the local 
   69  government may purchase insurance, enter into risk management 
   70  programs, or contract with third-party administrators and may 
   71  make such acquisitions by advertising for competitive bids or by 
   72  direct negotiations and contract. The local governmental unit 
   73  may undertake simultaneous negotiations with those companies 
   74  which have submitted reasonable and timely bids and are found by 
   75  the local governmental unit to be fully qualified and capable of 
   76  meeting all servicing requirements. Each local governmental unit 
   77  may self-insure any plan for health, accident, and 
   78  hospitalization coverage or enter into a risk management 
   79  consortium to provide such coverage, subject to approval based 
   80  on actuarial soundness by the Office of Insurance Regulation; 
   81  and each shall contract with an insurance company or 
   82  professional administrator qualified and approved by the office 
   83  to administer such a plan. 
   84         (d)1. Each school district in this state shall enter into 
   85  an interlocal agreement as provided in s. 163.01 to establish 
   86  the School District Insurance Consortium through which health, 
   87  accident, and hospitalization insurance shall be procured for 
   88  officers and employees of the school district and their 
   89  dependents unless the school board opts out in the manner set 
   90  forth in paragraph (a). 
   91         2. The consortium shall be governed by a board of directors 
   92  comprised of nine members, three of whom shall be elected school 
   93  board members appointed by the Florida School Boards 
   94  Association, Inc., three of whom shall be elected or appointed 
   95  superintendents of schools appointed by the Florida Association 
   96  of District School Superintendents, Inc., and three of whom 
   97  shall be public school teachers or support personnel appointed 
   98  by the Florida Education Association. Consortium board members 
   99  shall serve for 2-year terms or until their successors have been 
  100  appointed by the respective appointing organizations. The board 
  101  may employ staff or contract for staffing services to be 
  102  provided to the consortium. The Department of Management 
  103  Services shall provide administrative services to the consortium 
  104  as requested by the board. 
  105         3. Notwithstanding any other provision of law, the 
  106  consortium may advertise for competitive bids for such insurance 
  107  and the contracts for such insurance shall be let upon the basis 
  108  of such bids. The consortium shall advertise for proposals for a 
  109  statewide insurance plan as well as plans providing coverage on 
  110  a regional basis, and shall define by rule the regions for which 
  111  coverage shall be bid. In determining appropriate regions, the 
  112  consortium shall group school districts geographically in a 
  113  manner that includes school districts of varying sizes for the 
  114  purpose of ensuring the availability of coverage for all 
  115  districts in the region. Contracts may be awarded on a statewide 
  116  or regional basis, and more than one provider may be selected to 
  117  provide insurance. The consortium shall develop and recommend to 
  118  the Department of Management Services for adoption any rules 
  119  that are required to administer this subparagraph. School 
  120  districts shall engage in collective bargaining with the 
  121  certified bargaining agent for any unit of employees for which 
  122  health, accident, or hospitalization insurance is provided, as 
  123  required by part II of chapter 447, with regard to coverage 
  124  offered, cost for dependent coverage, deductibles, optional 
  125  coverage, and other matters that are subject to collective 
  126  bargaining as required by state law. 
  127         Section 2. This act shall take effect July 1, 2010. 
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