H.B. 24

1

HEALTH INSURANCE FOR SCHOOL DISTRICTS
2 2012 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Jim Bird
5 Senate Sponsor: ____________
6
7 LONG TITLE
8 Committee Note:
9 The Workforce Services and Community and Economic Development Interim
10 Committee recommended this bill.
11 General Description:
12 This bill amends the duties of local school boards in the State System of Public
13 Education Code.
14 Highlighted Provisions:
15 This bill:
16 . defines terms;
17 . requires local school boards to seek competitive bids on the health insurance
18 benefits it offers school district employees beginning in the 2012-13 school year and
19 every three years thereafter; and
20 . establishes criteria for the competitive bids for health care benefits.
21 Money Appropriated in this Bill:
22 None
23 Other Special Clauses:
24 None
25 Utah Code Sections Affected:
26 ENACTS:
27 53A-3-430, Utah Code Annotated 1953

28
29 Be it enacted by the Legislature of the state of Utah:
30 Section 1. Section 53A-3-430 is enacted to read:
31 53A-3-430. Health care benefits for school district employees -- Competitive bids.
32 (1) For purposes of this section:
33 (a) "Health care benefit":
34 (i) is as defined in Section 31A-1-301 ; and
35 (ii) includes:
36 (A) dental and vision benefits; and
37 (B) a plan offered to a local school district under Title 49, Chapter 20, Public
38 Employees' Benefit and Insurance Program Act.
39 (b) "Insurer" includes:
40 (i) an insurer regulated under Title 31A, Insurance Code;
41 (ii) a plan offered under Title 49, Chapter 20, Public Employees' Benefit and Insurance
42 Program Act; and
43 (iii) a third party administrator as defined in Section 31A-1-301 .
44 (2) (a) A local school board may provide health care benefits to its employees.
45 (b) A local school board may contract and cooperate with other local school boards to
46 provide health care benefits to its employees.
47 (3) (a) A local school board that provides health care benefits to its employees, or a
48 group of local school boards joining together to provide health care benefits to its employees,
49 shall, in accordance with Subsection (4), issue a request for proposal and seek competitive bids
50 for the health care benefits offered to employees in the 2012-2013 school year.
51 (b) A local school board that awards a contract for health care benefits for its
52 employees after issuing a request for proposal under Subsection (3)(a), shall every three years
53 thereafter, seek competitive bids for the contract for health care benefits in accordance with
54 Subsection (4).
55 (4) A request for proposals under Subsection (3) shall:
56 (a) solicit bids from at least two different insurers; and
57 (b) retain the services of at least two producers who are:
58 (i) each licensed under Title 31A, Chapter 23a, Insurance Marketing - Licensing

59 Producers, Consultants, and Reinsurance Intermediaries; and
60 (ii) not affiliated with the same agency license issued under Title 31A, Chapter 23a,
61 Insurance Marketing - Licensing Producers, Consultants, and Reinsurance Intermediaries.




Legislative Review Note
as of 9-7-11 1:20 PM

Office of Legislative Research and General Counsel