Assigned to GOV                                                                                                                                  FOR COMMITTEE

 

 


 

ARIZONA STATE SENATE

Phoenix, Arizona

 

FACT SHEET FOR S.B. 1006

 

state health insurance; water districts

 

Purpose

 

Allows multi-county water conservation district governing boards to include employees in the state health and accident insurance coverage.  Requires the Arizona Department of Administration (ADOA) to allow any multi-county water conservation district to participate in state health and accident insurance coverage.

 

Background

 

At the present time, the governing body of a city, town or a county board of supervisors may opt to provide for the inclusion of its employees in the state’s health and accident insurance coverage.  The governing board must notify ADOA of its intention to do so by January 15 prior to the year in which the coverage would begin, must participate for a minimum of two years, must agree to accept the details of the plan and must reimburse ADOA for administrative and operational costs associated with the participation in the state health and accident insurance coverage.  Statute also requires ADOA to allow any qualified school district, charter school, city, town or county to participate in the state health and accident insurance coverage and requires the entities to pay the premium for its employees directly to the benefits provider.  Insurance providers contracting with the state must separately maintain records that delineate claims and other expenses attributable to each entity.  Insurance providers are required to report this information to ADOA.  Finally, ADOA is required to issue a report to the President of the Senate and the Speaker of the House of Representatives that details the information provided by the insurance providers to ADOA and any recommendations for possible legislative action.

 

At the present time, one multi-county water conservation district exists:  the Central Arizona Water Conservation District.

 

While future costs are possible, there is no immediate fiscal impact to the state general fund.

 

Provisions

 

1.      Allows a multi-county water conservation district governing board to include employees, and spouses and dependents thereof, in state health and accident insurance coverage.  Stipulates that if a multi-county water conservation district governing board chooses to enter the state coverage, the state coverage will be the sole option offered to the district’s employees.

 

2.      Requires the ADOA to allow any multi-county water conservation district to participate in state health and accident insurance coverage.  Stipulates that the multi-county water conservation must pay the premium for its employees directly to the benefits provider.

 

3.      Contains conforming changes that subject multi-county water conservation districts to the same safeguards and policies presently required for school districts, charter schools, cities, towns and counties.

 

4.      Provides for a general effective date.

 

 

Prepared by Senate Staff

January 4, 2001