Assigned to GOV                                                                                            AS PASSED BY THE SENATE

 

 


 

ARIZONA STATE SENATE

Phoenix, Arizona

 

REVISED

FACT SHEET FOR S.B. 1039

 

community colleges; state health insurance.

 

Purpose

 

Allows community college district governing boards, school districts with 501 or more employees, any special taxing district, authority or any public entity organized pursuant to the laws of this state to include employees in the state health and accident insurance coverage.  Requires the Arizona Department of Administration (ADOA) to allow these entities 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 entity 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.

 

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

 

Provisions

 

1.      Allows a community college district governing board, school districts with 501 or more employees, any special taxing district, authority or any public entity organized pursuant to the laws of this state to include employees, and spouses and dependents thereof, in state health and accident insurance coverage.  Stipulates that if these entities choose to enter the state coverage, the state coverage will be the sole option offered to the entities’ employees.

 


2.      Requires the ADOA to allow any community college district, school districts with 501 or more employees, any special taxing district, authority or any public entity organized pursuant to the laws of this state to participate in state health and accident insurance coverage.  Stipulates that these entities must pay the premium for its employees directly to the benefits provider.

 

3.      Contains conforming changes that subject community college 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.

 

Amendments Adopted by Committee of the Whole

 

Allows school districts with 501 or more employees, any special taxing district, authority or any public entity organized pursuant to the laws of this state to access the state’s health and accident insurance coverage.

 

Senate Action

 

GOV                1/15/01            DP       6-0-0-0

3rd Read           1/29/01                        25-4-1-0

 

 

Prepared by Senate Staff

January 30, 2001