This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h1445z1.SAC.DOCX
DATE: 5/9/2022
HOUSE OF REPRESENTATIVES STAFF FINAL BILL ANALYSIS
BILL #: CS/CS/HB 1445 OGSR/Dependent Eligibility Information/DMS
SPONSOR(S): State Affairs Committee; Government Operations Subcommittee; Giallombardo
TIED BILLS: SB 7026 IDEN./SIM. BILLS:
FINAL HOUSE FLOOR ACTION: 111 Y’s
0 N’s GOVERNOR’S ACTION: Approved
SUMMARY ANALYSIS
CS/CS/HB 1445 passed the House on March 4, 2022, as amended, and subsequently passed the Senate on
March 9, 2022.
The Open Government Sunset Review Act requires the Legislature to review each public record exemption five
years after enactment. If the Legislature does not reenact the exemption, it automatically repeals on October
2nd of the fifth year after enactment.
The Department of Management Services (DMS) administers the State Group Insurance Program (SGI
Program), which provides health care coverage to employees and retirees of state agencies and their eligible
dependents. In 2017, DMS was directed by the Legislature to contract with a vendor for an audit to verify the
eligibility of all dependents participating in the SGI Program. The documents requested by the vendor from SGI
subscribers included tax transcripts from the Internal Revenue Service, marriage licenses, birth certificates,
adoption documents, as well as any other documentation necessary to verify a dependent’s eligibility. The
dependent eligibility verification audit was conducted in 2018. All documentation collected by the vendor for
verification of dependent eligibility was to be retained until July 1, 2019, and then destroyed as soon as
practicable thereafter.
Current law provides a public record exemption for documents submitted to DMS or its vendor for dependent
eligibility verification services. The public record exemption is scheduled to repeal on October 2, 2022, unless
reviewed and saved from repeal by the Legislature. During the 2021 interim, House staff reviewed the public
record exemption and as part of that review process, recommendations were made to improve upon the
substantive provisions related to the dependent eligibility verification process and to remove provisions that
were outdated. This bill implements those recommendations as they relate to the substantive provisions of the
dependent eligibility verification process.
SB 7026, to which this bill is linked, authorizes dependent eligibility verification to occur on an ongoing basis
and repeals statutory language relating to the audit conducted in 2018. It also specifies the documents that
may be submitted by SGI program subscribers to DMS or a vendor for the purpose of verifying dependent
eligibility and requires the records be retained according to the general records retention schedule.
The bill extends the scheduled repeal date of the public record exemption to October 2, 2027; thereby,
maintaining the public record exemption for documents submitted by SGI Program subscribers to DMS or its
vendor for dependent eligibility verification services for an additional five years. The bill also provides a public
necessity statement, as required by the Florida Constitution.
The bill was approved by the Governor on May 3, 2022, ch. 2022-86, L.O.F., and will become effective on the
same date that SB 7026 or similar legislation takes effect.
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I. SUBSTANTIVE INFORMATION
A. EFFECT OF CHANGES:
Background
Open Government Sunset Review Act
The Open Government Sunset Review Act (Act)
1
sets forth a legislative review process for newly
created or substantially amended public record or public meeting exemptions. It requires an automatic
repeal of the exemption on October 2nd of the fifth year after creation or substantial amendment,
unless the Legislature reenacts the exemption.
2
The Act provides that a public record or public meeting exemption may be created or maintained only if
it serves an identifiable public purpose. In addition, it may be no broader than is necessary to meet 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.
Protect trade or business secrets.
3
If, and only if, in reenacting an exemption that will repeal, the exemption is expanded (essentially
creating a new exemption), then a public necessity statement and a two-thirds vote for passage are
required.
4
If the exemption is reenacted with grammatical or stylistic changes that do not expand the
exemption, if the exemption is narrowed, or if an exception to the exemption is created
then a public
necessity statement and a two-thirds vote for passage are not required.
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.
6
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.
The standard health maintenance organization (HMO) services.
7
1
Section 119.15, F.S.
2
Section 119.15(3), F.S.
3
Section 119.15(6)(b), F.S.
4
Article I, s. 24(c), FLA. CONST.
5
Section 110.123, F.S.
6
See s. 110.123(2)(b), F.S.
7
These are provided by AvMed, Capital Health Plan, UnitedHealthcare, and Aetna. One of these HMO plans is offered in each county
in the State of Florida. See Department of Management Services, myBenefits,
https://www.mybenefits.myflorida.com/health/health_insurance_plans/health_plans_in_your_area (last visited February 21, 2022).
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The high deductible HMO.
8
Pharmacy Benefit
The SGI Program also has a pharmacy benefit for members of the plan. The SGI Program covers
all federal legend drugs for covered medical conditions and employs very
limited utilization review and clinical review for traditional or specialty prescription drugs. DMS contracts
with CVS/Caremark, a pharmacy benefits manager, to administer the
Prescription Drug Plan.
9
Eligible Employees
The SGI Program is open to:
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.
Certain state employees paid from “other-personal-services” (OPS) appropriation categories.
10
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
11
of employment).
12
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 the child 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 the child 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 the child turns age 26.
A child for whom the member has legal guardianship through the end of the calendar year in
which the child turns age 26.
An over-age dependent, after the end of the calendar year in which such dependent turns age
26, through the end of the calendar year in which the dependent turns age 30 if he or she is
unmarried, has no dependents of his or 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.
8
Department of Management Services, myBenefits, Health Insurance Plans,
https://www.mybenefits.myflorida.com/health/health_insurance_plans (last visited February 20, 2022).
9
Department of Management Services, myBenefits, Prescription Drug Plan,
https://www.mybenefits.myflorida.com/health/health_insurance_plans/prescription_drug_plan (last visited February 6, 2022).
10
Department of Management Services, myBenefits, Eligibility and Enrollment,
https://www.mybenefits.myflorida.com/health/eligibility_and_enrollment (last visited February 20, 2022).
11
Section 110.123(13)(d), F.S.
12
Section 110.123(2)(c)2., F.S.
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A child of law enforcement, probation, or correctional officer killed in the line of duty, who is
attending a college or university beyond his or her 18th birthday.
A surviving spouse and dependents.
13
Dependents may be added as covered dependents during the open enrollment period each year or
in the event of a qualifying status change.
Dependent Eligibility Verification
During the 2017 Legislative Session, DSGI was directed to contract with a vendor for an audit to verify
the eligibility of all dependents participating in the SGI Program.
14
DSGI was required to provided notice
to all subscribers by September 1, 2017 regarding the eligibility rules for dependents.
15
DSGI notified
subscribers through the People First Service Center and thereafter the vendor began requesting
subscribers to provide documents as part of the dependent eligibility verification process. The
documents requested by the vendor included tax transcripts from the Internal Revenue Service,
marriage licenses, birth certificates, adoption documents, as well as any other documentation
necessary to verify a dependent’s eligibility.
16
DSGI was required to hold subscribers harmless for past
claims of ineligible dependents if the dependents were removed from the subscribers plan before
December 1, 2017.
17
The dependent eligibility verification audit was conducted in 2018.
18
All
documentation collected by the vendor for verification of dependent eligibility was to be retained until
July 1, 2019, and destroyed as soon as practicable thereafter.
19
Public Record Exemption under Review
In 2017, the Legislature made documents submitted to DMS or the vendor pursuant to the dependent
eligibility verification audit confidential and exempt
20
from public record requirements.
21
The 2017 public necessity statement
22
for the public record exemption provides:
Eligibility verification can require state employees to produce a variety of
documentation, including proof of marriages and divorces, child custody, children’s
education status, as well as the mental and medical records related to their
children with disabilities. Absent the public records exemption, state employees
subject to the verification process may be hesitant or less cooperative in producing
documents or information out of fear that they or their families would be exposed
to public ridicule or humiliation because the details of their personal lives would be
subject to public disclosure. Personnel may also be uncooperative if they are
13
Department of Management Services, myBenefits, Dependent Eligibility Verification,
https://www.mybenefits.myflorida.com/health/dependent_eligibility_verification (last visited February 20, 2022).
14
Chapter 2017-127, L.O.F. Prior to 2017, DSGI was required to competitively procure a contingency-based contract for dependent
eligibility verification services for the SGI Program. However, contract dates and terms were not specified in statute. See ch. 2010-
150, L.O.F.
15
Section 110.12301(2)(a)1., F.S.
16
Section 110.12301(2)(b), F.S.
17
Supra, note 15.
18
Department of Management Services, 2022 Agency Legislative Bill Analysis – HB 1443, pg. 2 (2022), on file with the State Affairs
Committee.
19
Supra, note 16.
20
There is a difference between records the Legislature designates as exempt from public record requirements and those the
Legislature deems confidential and exempt. A record classified as exempt from public disclosure may be disclosed under certain
circumstances. See WFTV, Inc. v. The School Board of Seminole, 874 So.2d 48, 53 (Fla. 5th DCA 2004), review denied 892 So.2d
1015 (Fla. 2004); City of Riviera Beach v. Barfield, 642 So.2d 1135 (Fla. 4th DCA 1994); Williams v. City of Minneola, 575 So.2d
687 (Fla. 5th DCA 1991). If the Legislature designates a record as confidential and exempt from public disclosure, such record may
not be released by the custodian of public records to anyone other than the persons or entities specifically designated in statute. See
Attorney General Opinion 85-62 (August 1, 1985).
21
Chapter 2017-128, L.O.F.
22
Article I, s. 24(c), FLA. CONST., requires each public record exemption to “state with specificity the public necessity justifying the
exemption.”
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DATE: 5/9/2022
concerned that they or their families may be exposed to public scorn or be subject
to legal action for inappropriately or mistakenly claiming ineligible dependents.
Protecting such information helps to protect state employees and their families
from criminal or inappropriate use of their personal information. Enrollees and their
families would be at increased risk of identity theft and fraud if the public had
unfettered access to documents requested by the Department of Management
Services to verify dependent eligibility.
23
Pursuant to the Open Government Sunset Review Act, the public record exemption will repeal on
October 2, 2022, unless reenacted by the Legislature.
24
During the 2021 interim, the House Government Operations Subcommittee staff conducted an
interview with staff from DMS as part of its review of the public record exemption for dependent
eligibility verification information. DMS stated that the audit required by the Legislature was conducted
in 2018 but DMS staff indicated that the department still contracts for dependent eligibility verification
services and, as such, recommended that the exemption remain in effect. In addition, DMS responded
to a follow-up questionnaire with a recommendation that obsolete language that appeared to indicate
that the dependent eligibility verification audit was not authorized as an ongoing contract be repealed
and that specific categories of documentation required to verify dependent eligibility be codified in
law.
25
SB 7026 (2022)
SB 7026, to which this bill is linked, authorizes dependent eligibility verification to occur on an ongoing
basis and repeals statutory language relating to the audit conducted in 2018. The bill also specifies the
documents that may be submitted by SGI Program subscribers to DMS or a vendor for the purpose of
verifying dependent eligibility and requires the records be retained according to the general records
retention schedule.
Effect of the Bill
The bill extends the scheduled repeal date of the public record exemption from October 2, 2022, to
October 2, 2027; thereby, maintaining the public record exemption for documents submitted by SGI
Program subscribers to DMS or its vendor for dependent eligibility verification services for an additional
five years. The bill also provides a public necessity statement as required by the Florida Constitution.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
23
Chapter 2017-128, L.O.F.
24
Supra, note 1.
25
Open Government Sunset Review Questionnaire, DMS/Dependent Eligibility Verification Services, on file with the Government
Operations Subcommittee.
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None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
None.
D. FISCAL COMMENTS:
None.