This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h1445b.GOS
DATE: 2/6/2022
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 1445 Pub. Rec./Dependent Eligibility Verification Services
SPONSOR(S): Giallombardo
TIED BILLS: HB 1443 IDEN./SIM. BILLS: SB 1662
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Finance & Facilities Subcommittee 15 Y, 0 N Poche Lloyd
2) Government Operations Subcommittee Landry Toliver
3) Health & Human Services Committee
SUMMARY ANALYSIS
Article I, section 24(a) of the Florida Constitution establishes the state’s government records access policy, guaranteeing
each person a right to inspect or copy any public record of the legislative, executive, and judicial branches of government.
However, the Legislature may provide a public records exemption by general law if the exemption passes by a two-thirds
vote of each chamber, states with specificity the public necessity justifying the exemption (“public necessity statement”),
and is no broader than necessary to meet its public purpose.
The State Group Insurance Program (SGI Program) provides health care and supplemental benefits coverage to
employees and retirees of state agencies and their eligible dependents. In 2017, the Division of State Group Insurance
(DSGI), in the Department of Management Services (DMS), was directed to verify the eligibility of all dependents
participating in the SGI Program.
The bill adds to the list of documents and information that a subscriber may be expected to provide to DSGI or its vendor
for dependent eligibility verification the following:
For a spouse, documents showing joint ownership of property and attestation of the marriage;
For a biological child, newborn grandchild, or adopted child, attestation of the subscriber-dependent relationship;
For a foster child, any records showing the subscriber or spouse as the foster parent;
For a child under guardianship, a copy of the court order naming the subscriber or spouse as guardian or
custodian;
For an unmarried child between age 26 and 30:
o The child’s birth or adoption certificate;
o A completed Certification of Over-Age Dependent Eligibility Form; and other specified documents.
For a disabled child age 26 or older:
o The child’s birth or adoption certificate; and
o A transcript of the subscriber’s or spouse’s most recently filed federal income tax return identifying the
child as a dependent.
The bill expands the public records exemption for such documents and information. The current exemption was scheduled
to sunset on October 2, 2022; the bill extends the exemption to October 2, 2027, unless reviewed and saved from repeal
by the Legislature. It also provides a statement of public necessity as required by the Florida Constitution.
The bill may have an insignificant negative fiscal impact on the state, but no fiscal impact on local governments.
Article I, s. 24(c) of the Florida Constitution requires a two-thirds vote of the members present and voting for final
passage of a newly created or expanded public record or public meeting exemption. The bill creates a public
record exemption; thus, it requires a two-thirds vote for final passage.
The bill is linked to HB 1443, Dependent Eligibility Verification Services, so the act takes effect on the same date that HB
1443 or similar legislation takes effect, if such legislation is adopted in the same legislative session or an extension
thereof and becomes a law. STORAGE NAME: h1445b.GOS PAGE: 2
DATE: 2/6/2022
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Background
Public Records Law
Article I, section 24(a) of the Florida Constitution sets forth the state’s public policy regarding access to
government records. The section guarantees every person a right to inspect or copy any public record
of the legislative, executive, and judicial branches of government. The Legislature, however, may
provide by general law for exemption from public records requirements provided the exemption passes
by two-thirds vote of each chamber, states with specificity the public necessity justifying the exemption,
and is no broader than necessary to meet its public purpose.
1
The Florida Statutes also address the public policy regarding access to government records. Section
119.07(1), F.S., guarantees every person a right to inspect and copy any state, county, or municipal
record, unless the record is exempt. Furthermore, the Open Government Sunset Review Act
2
provides
that a public record exemption may be created or maintained only if it serves an identifiable public
purpose and the “Legislature finds that the purpose is sufficiently compelling to override the strong
public policy of open government and cannot be accomplished without the exemption.”
3
An identifiable
public purpose is served if the exemption meets one of the following purposes:
Allow the state or its political subdivisions to effectively and efficiently administer a
governmental program, which administration would be significantly impaired without the
exemption;
Protect sensitive personal information that, if released, would be defamatory or would
jeopardize an individual’s safety; however, only the identity of an individual may be exempted
under this provision; or
Protect trade or business secrets.
4
Pursuant to s. 119.15(3), F.S., a new public records exemption or substantial amendment of an existing
public records exemption is repealed on October 2 of the fifth year following enactment, unless the
Legislature reenacts the exemption.
State Group Insurance Program
Overview
The State Group Insurance Program (SGI Program)
5
is administered by the Division of State Group
Insurance (DSGI) within the Department of Management Services (DMS). The SGI Program is an
optional benefit for state employees employed by state agencies, state universities, the court system,
and the Legislature. The SGI Program administers health, life, dental, vision, disability, and other
supplemental insurance benefits.
State Health Insurance Plans
The SGI Program provides four options for employees and retirees to choose as their health plan:
The standard Preferred Provider Organization (PPO) plan, administered by Florida Blue.
The high deductible PPO plan, administered by Florida Blue.
1
Art. I, s. 24(c), FLA. CONST.
2
Section 119.15, F.S.
3
Section 119.15(6)(b), F.S.
4
Id.
5
S. 110.123, F.S. STORAGE NAME: h1445b.GOS PAGE: 3
DATE: 2/6/2022
The standard health maintenance organization (HMO) services.
6
The high deductible HMO.
Pharmacy Benefit
The SGI Program also has a pharmacy benefit for members of the plan. The SGI Program covers
all federal legend drugs (open formulary) for covered medical conditions and employs very
limited utilization review and clinical review for traditional or specialty prescription drugs. The
DMS contracts with CVS/Caremark, a pharmacy benefits manager, to administer the
Prescription Drug Plan.
7
Eligible Employees
The SGI Program is open to the following individuals:
All state officers;
All state employees paid from “salaries and benefits” appropriation categories, regardless of
the number of hours worked;
Retired state officers and state employees;
Surviving spouses of deceased state officers and state employees;
Certain terminated state officers and state employees; and
Certain state employees paid from “other-personal-services” (OPS) appropriation categories.
For OPS employees to be eligible to participate in the health insurance program, the employee
must:
Be reasonably expected to work an average of at least 30 hours per week; and
Have worked an average of at least 30 hours per week during the person’s measurement
period (which is 12 consecutive months
8
of employment).
9
Dependent Eligibility
The SGI Program covers employees and retirees of state agencies and their eligible dependents.
An eligible dependent is defined as:
A current spouse to whom the member is legally married.
A biological child, child with a qualified medical support order, legally adopted child, or
child placed in the home for the purpose of adoption in accordance with applicable state and
federal laws, through the end of the calendar year in which he/she turns age 26.
A stepchild, for as long as the member remains legally married to the child’s parent, through the
end of the calendar year in which he/she turns age 26.
A foster child placed in the member’s home by the Department of Children and Families Foster
Care Program or the foster care program of a licensed private agency, through the end of the
calendar year in which he/she turns age 26.
A child for whom the member has legal guardianship through the end of the calendar year in
which he/she turns age 26.
An over-age dependent, after the end of the calendar year in which he/she turns 26, through the
end of the calendar year in which he/she turns 30 – if he/she is unmarried, has no dependents
of his/her own, is a resident of Florida or a full- or part-time student, and has no other health
insurance.
An over-age dependent with a disability.
A newborn dependent of a member’s covered child for up to 18 months of age as long as the
newborn’s parent remains covered.
6
These are provided by Aetna, AvMed, Capital Health Plan, and UnitedHealthcare. One of these HMO plans is offered in each county
in the State of Florida.
7
myBenefits, Prescription Drug Plan,
https://www.mybenefits.myflorida.com/health/health_insurance_plans/prescription_drug_plan (last visited February 6, 2022) .
8
S. 110.123(13)(d), F.S.
9
S. 110.123(2)(c)2., F.S. STORAGE NAME: h1445b.GOS PAGE: 4
DATE: 2/6/2022
A child of law enforcement, probation, or correctional officers who were killed in the line of duty,
who are attending a college or university beyond their 18th birthday.
A surviving spouse and dependents.
Dependents may be added as covered dependents during the open enrollment period each year or
in the event of a qualifying status change. Minimal information is collected by the DMS to
determine eligibility.
Dependent Eligibility Verification
During the 2017 Legislative Session, the DSGI was directed to contract with a vendor to verify
the eligibility of all dependents participating in the SGI Plan. The DSGI provided notice to all
subscribers and on July 1, 2020, via the People First Service Center, began requesting
subscribers to provide documents as part of the dependent eligibility verification process. The
documents include tax transcripts from the Internal Revenue Service, marriage licenses, birth
certificates, adoption documents, and other documents.
10
Enrollment
For FY 2020-21, the final enrollment reflected 175,046 subscribers and 187,244 dependents,
totaling 362,290 covered lives.
11
Approximately 47.1% of subscribers are enrolled in PPO plans,
52.3% are enrolled in HMO plans, and 0.6% are enrolled in a Medicare Advantage Prescription
Drug plan.
12
Subscriber enrollment in individual coverage was 47.8%, and 52.2% were enrolled
in family coverage, which had an average size of 3.05 members.
13
Open Government Sunset Review of the Public Records Exemption for a Dependent Eligibility
Verification
In September 2021, the House Government Operations Subcommittee and the Senate Governmental
Oversight and Accountability Committee spoke with representatives of the DMS regarding the need to
maintain the exemption for records collected for the purposes of dependent eligibility verification
services conducted for the SGI Program. Additionally, an Open Government Sunset Review
Questionnaire was provided to the DMS. The DMS recommended that the exemption remain in effect
with changes to remove obsolete language and to include specified documentation that is routinely
collected under the “catch-all” provision
14
- “any other information.”
HB 1443
HB 1443, to which this bill is linked, permits DMS, instead of DSGI, to provide or contract for dependent
eligibility verification services for the SGI Program on an ongoing basis. HB 1443 makes conforming
changes to convert the former audit project into an ongoing audit program for DMS. Also, all
documentation submitted by subscribers for the ongoing audit must be retained according to the
applicable records retention schedule, which is five fiscal years from the date of the audit report.
Effect of Proposed Changes
The bill adds several documents to the list of those that subscribers to the SGI Program must provide to
DMS or its contractor to determine whether certain dependents of subscribers are eligible for coverage
under the SGI Program. The documents added to s. 110.12301(2)(a), F.S., are:
Documents showing joint ownership of property and an attestation of the marriage by sworn
affidavit to prove a spouse’s eligibility;
10
S. 110.12301(2)(b), F.S.
11
State Employee’s Group Health Self-Insurance Trust Fund, Report on Financial Outlook, For the Fiscal Years Ending June 30, 2021
through June 30, 2026, http://edr.state.fl.us/content/conferences/healthinsurance/HealthInsuranceOutlook.pdf (last visited
February 6, 2022).
12
Id. at pg. 1.
13
Id.
14
S. 110.12301(2)(b)5., F.S. STORAGE NAME: h1445b.GOS PAGE: 5
DATE: 2/6/2022
An attestation of the subscriber-dependent relationship by sworn affidavit to prove a biological
child’s, newborn grandchild’s, or adopted child’s eligibility;
A copy of any records showing the subscriber or his or her spouse as the foster parent to prove
a foster child’s eligibility;
A copy of the court order naming the subscriber or his or her spouse as the child’s guardian or
custodian to prove eligibility of a child under guardianship;
To prove the eligibility of an unmarried child between age 26 and 30:
o A copy of the child’s birth or adoption certificate naming the subscriber or his or her
spouse as the child’s parent or a court order naming the subscriber or his or her spouse
as the child’s guardian or custodian;
o A completed Certification of Over-Age Dependent Eligibility Form; and
A document confirming the child’s enrollment at a state university or Florida
College System institution (including the child’s full name, the name of the
institution, and the school term during which the child was enrolled); or
A bill or statement in the child’s name sent to his or her address in Florida within
the past 60 days.
To prove the eligibility of a disabled child age 26 or older:
o A copy of the child’s birth or adoption certificate naming the subscriber or his or her
spouse as the child’s parent, legal guardian, or legal custodian; and
o A transcript of the subscriber’s or subscriber’s spouse’s most recently filed federal
income tax return that includes the child’s name and last four digit of the child’s Social
Security number and identifies the child as a dependent.
The bill expands the public records exemption for documents and information provided by a subscriber
to the DSGI or its vendor for the purpose of verifying dependent eligibility for coverage under the SGI
Program. The exemption was scheduled to sunset on October 2, 2022; the bill extends the exemption
to October 2, 2027. The bill also provides a public necessity statement as required by art. I, s. 24(c) of
the Florida Constitution. The public necessity statement provides that:
Records collected for the purpose of dependent eligibility verification services conducted for the
state group insurance program and held by DMS be made confidential and exempt from public
records requirements under law.
The existing public records exemption is expanded to include additional records that employee
may submit under additional specified eligibility categories as part of the existing dependent
eligibility verification process, including records relating to guardianship of a child, the fostering
of a child, unmarried adult children, and disabled adult children, which include court orders,
foster care records, birth certificates, adoption certificates, student academic and financial
records, medical records, and transcripts of filed tax returns.
Like other records collected and held by DMS for dependent eligibility verification, these records
should be protected from public disclosure, as they contain sensitive and personal information
that may deter employees from producing them in the absence of the same protections offered
in connection with the current eligibility categories.
If the public had unfettered access to the information contained within these records, employees
and their family members could be placed at increased risk of identity theft and fraud.
The Legislature further recognizes that this exemption is narrowly tailored and applies only to
those records collected for the purpose of verifying eligible dependents for enrollment in the
state group insurance program.
The exemption is subject to the Open Government Sunset Review Act and will repeal on October 2,
2027, unless the Legislature reviews and reenacts the exemption by that date.
The bill is linked to HB 1443, Dependent Eligibility Verification Services, so the act takes effect on the
same date that HB 1443 or similar legislation takes effect, if such legislation is adopted in the same
legislative session or an extension thereof and becomes a law.
B. SECTION DIRECTORY:
STORAGE NAME: h1445b.GOS PAGE: 6
DATE: 2/6/2022
Section 1: Amends s. 110.12301, F.S., relating to competitive procurement of postpayment claims
review services and dependent eligibility verification services; public records exemption.
Section 2: Provides a public necessity statement as required by the Florida Constitution.
Section 3: Provides an effective date of the same date that HB 1443 or similar legislation takes effect,
if such legislation is adopted in the same legislative session or an extension thereof and
becomes a law.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
The bill could have an insignificant negative fiscal impact on DMS as department staff responsible
for complying with public record requests may require training related to the newly created public
record exemption. The costs, however, would be absorbed, as they are part of the day-to-day
responsibilities of the department.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
None.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. This bill does not appear to affect county or municipal governments.
2. Other:
Vote Requirement
STORAGE NAME: h1445b.GOS PAGE: 7
DATE: 2/6/2022
Article I, s. 24(c) of the Florida Constitution requires a two-thirds vote of the members present and
voting for final passage of a newly created or expanded public record or public meeting exemption.
The bill creates a public record exemption; thus, it requires a two-thirds vote for final passage.
Public Necessity Statement
Article I, s. 24(c) of the Florida Constitution requires a public necessity statement for a newly created
or expanded public record or public meeting exemption. The bill creates a public record exemption;
thus, it includes a public necessity statement.
Breadth of Exemption
Article 1, s. 24(c) of the Florida Constitution requires a newly created or expanded public record or
public meeting exemption to be no broader than necessary to accomplish the stated purpose of the
law. The bill expands an existing public record exemption for the documents and information
subscriber’s submit for purpose of verifying the eligibility of certain dependents for health coverage
under the SGI Program, which does not appear to be broader than necessary to accomplish its
purpose.
Laws Must Contain Only Exemptions
Article I, section 24(c) of the Florida Constitution provides that a bill creating an exemption from
public record or public meeting requirements must only contain exemptions from such requirements.
The bill expands a public record exemption for documents and information a subscriber submits for
the purpose of verifying the eligibility of certain dependents for health coverage under the SGI
Program. It also adds several documents to the list of those that subscribers to the SGI Program
must provide to DMS or its contractor to determine whether certain dependents of subscribers are
eligible for coverage under the SGI Program. Adding documents that may collected by DMS could
be considered a substantive provision and not an exemption from public record requirements.
B. RULE-MAKING AUTHORITY:
The bill does not confer rulemaking authority nor require additional rulemaking authority to implement.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
None.