First Regular Session
Sixty-first General Assembly
LLS NO. 970042.01 GWF
HOUSE BILL 971092
STATE OF COLORADO
BY REPRESENTATIVES Owen, Epps, and George;
also SENATORS Rizzuto and Bishop.
STATE, VETERANS &
MILITARY AFFAIRS
A BILL FOR AN ACT
CONCERNING THE CREATION OF THE PUBLIC EMPLOYERS'
GROUP INSURANCE AUTHORITY.
Bill Summary
"Creation Of Pub Employers' Grp Ins Auth"
(Note: This summary applies to this bill as introduced
and does not necessarily reflect any amendments which may be subsequently
adopted.)
Creates the public employers' group insurance authority. Creates the authority as a body corporate and a political subdivision of the state and not as an agency of state government. Provides that the employees of the authority are treated as if state employees for purposes of PERA. Provides that, on or after January 1, 1999, the authority shall offer all health care coverage for state employees who are covered through the "State Employee Group Benefits Act", for PERA benefit recipients, and for other public employers who have elected to offer coverage through the authority. Establishes the public employers' group insurance trust fund for moneys held by the authority.
Creates a board of directors of the authority. Specifies the composition of the board. Specifies how board members will be appointed or elected and explains how vacancies will be filled. Enumerates certain duties of the board, including requirements to abide by the open meetings law, to promulgate rules, to submit an annual report to the governor and the general assembly, to submit to audits by the state auditor, and to offer health care coverage as a health care coverage cooperative.
Provides that moneys paid for the benefit of the covered employees, retirees, and dependents shall be deposited into the public employers' group insurance trust fund and used for the exclusive purpose of providing coverage and paying reasonable expenses of the authority.
Provides that the authority has such powers and duties required or permitted as a health care coverage cooperative. Provides that this act does not waive any provisions of the "Colorado Governmental Immunity Act".
Authorizes the authority to borrow money and to issue bonds, including revenue bonds. Specifies that any bonds or debts incurred by the authority are not an obligation of the state, the general assembly, or any other governmental entity other than the authority. Allows the authority to finance startup costs or other costs with a loan from any person, corporation, association, entity, or the state of Colorado through the state treasurer. Provides that interest shall be paid on any loan from the state treasurer based on the treasurer's earning rate. Allows the board to pledge revenues of the authority for repayment of any loan.
Provides for the confidentiality of health information and any other information that is private or confidential by law. Allows the board to hold executive sessions to discuss confidential information and any other matter for which executive session is permitted by law. Provides that the authority is a "special purpose authority" and not part of the state for purposes of section 20 of article X of the state constitution.
Makes conforming changes to the statutes governing health care coverage cooperatives.
Provides that, upon creation of the authority, the
board of trustees of PERA shall, by contract, transfer to the
authority all functions of the PERA health care program, except
for management of PERA health care fund assets, deduction of premiums
from benefits of PERA benefit recipients, and transfer of premium
subsidy funds. Allows the PERA board, in its discretion and upon
mutual agreement with the authority, to transfer the PERA health
care funds and the premium subsidy function to the authority.
Makes conforming changes to the "State Employees Group Benefits
Act".
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. Title 24, Colorado Revised Statutes, 1988 Repl. Vol., as amended, is amended BY THE ADDITION OF A NEW ARTICLE to read:
2458101. Short title. THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS THE "PUBLIC EMPLOYERS' GROUP INSURANCE ACT".
2458102. Legislative declaration. (1) THE GENERAL ASSEMBLY HEREBY FINDS AND DECLARES THAT IT IS IN THE PUBLIC INTEREST TO CREATE A GROUP INSURANCE COOPERATIVE FOR ACTIVE AND RETIRED PUBLIC EMPLOYEES AND THEIR DEPENDENTS IN ORDER TO:
(a) IMPROVE THE QUALITY OF HEALTH CARE FOR ALL PUBLIC EMPLOYEES IN COLORADO AND THEIR DEPENDENTS;
(b) PROVIDE CONTINUITY OF INSURANCE COVERAGE FOR ACTIVE PUBLIC EMPLOYEES AS THEY RETIRE;
(c) PROVIDE IMPROVED ACCESS TO A GREATER RANGE OF AFFORDABLE HEALTH PLANS TO SMALL PUBLIC EMPLOYERS, ESPECIALLY THOSE IN RURAL AREAS OF THE STATE; AND
(d) SEEK LOWER HEALTH CARE BENEFIT COSTS THROUGH IMPROVEMENTS IN THE EFFICIENCY OF HEALTH CARE DELIVERY FOR ACTIVE AND RETIRED PUBLIC EMPLOYEES.
(2) THE GENERAL ASSEMBLY FURTHER DECLARES THAT:
(a) IT IS NECESSARY TO CREATE SUCH A COOPERATIVE FOR ACTIVE AND RETIRED PUBLIC EMPLOYEES AND THEIR DEPENDENTS TO BEST ACCOMPLISH THE GOALS OF LOW COST, CONTINUITY OF COVERAGE, AND IMPROVED ACCESS TO HEALTH CARE PLANS FOR STATE EMPLOYEES WHO CURRENTLY OBTAIN COVERAGE THROUGH THE DEPARTMENT OF PERSONNEL, FOR RECIPIENTS OF BENEFITS FROM THE PUBLIC EMPLOYEES' RETIREMENT ASSOCIATION, AND FOR EMPLOYEES AND RETIREES OF OTHER PUBLIC EMPLOYERS THAT ELECT TO PROVIDE COVERAGE THROUGH THE COOPERATIVE;
(b) THE COOPERATIVE OFFERING COVERAGE FOR ACTIVE AND RETIRED PUBLIC EMPLOYEES AND THEIR DEPENDENTS SHOULD BE STRUCTURED AS A SPECIAL PURPOSE AUTHORITY WITH ACCOUNTABILITY TO ELECTED OFFICIALS; AND
(c) ONLY GOVERNMENTAL ENTITIES SHOULD BE ALLOWED TO PARTICIPATE IN THE COOPERATIVE.
2458103. Definitions. AS USED IN THIS ARTICLE, UNLESS THE CONTEXT OTHERWISE REQUIRES:
(1) "AUTHORITY" MEANS THE PUBLIC EMPLOYERS' GROUP INSURANCE AUTHORITY CREATED PURSUANT TO THE PROVISIONS OF THIS ARTICLE.
(2) "BOARD" MEANS THE BOARD OF DIRECTORS CREATED PURSUANT TO THE PROVISIONS OF SECTION 2458106.
(3) "DEPENDENT" SHALL INCLUDE FOR EACH PUBLIC EMPLOYEE, AT A MINIMUM, ALL OF THE PERSONS SPECIFIED IN SECTION 618102 (5), C.R.S., PLUS:
(a) FOR THE PUBLIC EMPLOYEES DESCRIBED IN SECTION 2450603 (7), ALL OF THE PERSONS SPECIFIED IN SECTION 2450603 (5) THAT ARE NOT SPECIFIED IN SECTION 618102 (5), C.R.S.; OR
(b) FOR PERA BENEFIT RECIPIENTS, ALL OF THE PERSONS SPECIFIED IN SECTION 24511204 (1) THAT ARE NOT SPECIFIED IN SECTION 618102 (5), C.R.S.
(4) "LOCAL GOVERNMENT" MEANS ANY AUTHORITY, COUNTY, MUNICIPALITY, CITY AND COUNTY, DISTRICT, OR OTHER POLITICAL SUBDIVISION OF THE STATE OF COLORADO; ANY INSTITUTION, DEPARTMENT, AGENCY, OR AUTHORITY OF ANY OF THE FOREGOING; AND ANY OTHER ENTITY, ORGANIZATION, OR CORPORATION FORMED BY INTERGOVERNMENTAL AGREEMENT OR OTHER CONTRACT BETWEEN OR AMONG THE FOREGOING.
(5) "PERA" MEANS THE PUBLIC EMPLOYEES RETIREMENT ASSOCIATION CREATED IN SECTION 2451201 (1).
(6) "PUBLIC EMPLOYEE" MEANS ANY EMPLOYEE, AS DEFINED IN SECTION 2450603 (7), OR ANY OTHER EMPLOYEE OF A LOCAL GOVERNMENT THAT ELECTS COVERAGE THROUGH THE AUTHORITY.
(7) "PUBLIC EMPLOYER" MEANS:
(a) THE STATE OF COLORADO; AND
(b) ANY LOCAL GOVERNMENT IN THE STATE THAT ELECTS TO OFFER COVERAGE THROUGH THE AUTHORITY FOR ITS EMPLOYEES, RETIREES, OR BOTH.
(8) "PUBLIC RETIREE" MEANS:
(a) A PERSON RECEIVING A RETIREMENT BENEFIT OR A SURVIVOR BENEFIT FROM PERA IN ACCORDANCE WITH ARTICLE 51 OF THIS TITLE; OR
(b) ANY OTHER PERSON WHO WAS EMPLOYED BY A PUBLIC EMPLOYER AND WHO IS COVERED BY A RETIREMENT PLAN OF SUCH PUBLIC EMPLOYER THAT ELECTS TO OFFER COVERAGE THROUGH THIS AUTHORITY FOR ITS RETIREES AND SURVIVORS OF ITS RETIREES.
2458104. Public employers' group insurance authority creation. (1) THERE IS HEREBY CREATED THE PUBLIC EMPLOYERS' GROUP INSURANCE AUTHORITY WHICH SHALL BE A BODY CORPORATE AND A POLITICAL SUBDIVISION OF THE STATE. THE AUTHORITY SHALL NOT BE AN AGENCY OF STATE GOVERNMENT, AND IT SHALL NOT BE SUBJECT TO ADMINISTRATIVE DIRECTION BY ANY DEPARTMENT, COMMISSION, BOARD, BUREAU, OR AGENCY OF THE STATE, EXCEPT AS SET FORTH IN THE PROVISIONS REGARDING HEALTH CARE COVERAGE COOPERATIVES PURSUANT TO ARTICLE 18 OF TITLE 6, C.R.S., TO THE EXTENT THAT THE PROVISIONS OF ARTICLE 18 OF TITLE 6, C.R.S. ARE NOT INCONSISTENT WITH THIS ARTICLE. ALL EMPLOYEES OF THE AUTHORITY SHALL, BY ACCEPTANCE OF EMPLOYMENT, BE SUBJECT TO THE PROVISIONS OF ARTICLE 51 OF THIS TITLE. THE AUTHORITY SHALL PAY EMPLOYER CONTRIBUTIONS, EMPLOYEE CONTRIBUTIONS DEDUCTED FROM SALARY, AND ANY OTHER PAYMENTS THAT WOULD BE DUE FROM A STATE EMPLOYER TO PERA .
(2) COMMENCING ON OR AFTER JANUARY 1, 1999, THE AUTHORITY SHALL OFFER HEALTH CARE COVERAGE ON BEHALF OF:
(a) THE STATE FOR PUBLIC EMPLOYEES OF THE STATE AND THEIR DEPENDENTS;
(b) PERA FOR ALL RECIPIENTS OF PERA RETIREMENT BENEFITS OR PERA SURVIVOR BENEFITS AND THEIR DEPENDENTS; AND
(c) ANY OTHER PUBLIC EMPLOYER THAT HAS ELECTED TO OFFER HEALTH CARE COVERAGE THROUGH THE AUTHORITY FOR EITHER ITS PUBLIC EMPLOYEES AND THE EMPLOYEES' DEPENDENTS OR ITS PUBLIC RETIREES AND THE RETIREES' DEPENDENTS, OR BOTH.
(3) A PUBLIC EMPLOYER FOR WHOM PARTICIPATION IS OPTIONAL, MAY ELECT TO OFFER HEALTH CARE COVERAGE OTHER COVERAGE PROVIDED PURSUANT TO THIS SECTION, OR A COMBINATION THEREOF, FOR ALL OF ITS EMPLOYEES AND THEIR DEPENDENTS, ALL OF ITS RETIREES AND THEIR DEPENDENTS, OR BOTH.
(4) THE AUTHORITY MAY OFFER HEALTH CARE COVERAGE PLANS THAT ARE COMPATIBLE WITH MEDICAL SAVINGS ACCOUNTS.
2458105. Trust fund created. A FUND TO BE KNOWN AS THE PUBLIC EMPLOYERS' GROUP INSURANCE TRUST FUND IS HEREBY CREATED AND ESTABLISHED IN THE STATE TREASURY. ALL MONEYS DEPOSITED IN THE TRUST FUND AND ALL INTEREST EARNED ON MONEYS IN THE TRUST FUND SHALL REMAIN IN TRUST FOR THE PURPOSES SET FORTH IN THIS ARTICLE, AND NO PART THEREOF SHALL BE USED OR APPROPRIATED FOR ANY OTHER PURPOSE. THE MONEYS IN THE TRUST FUND SHALL BE CONTINUOUSLY AVAILABLE FOR THE PURPOSES OF THIS ARTICLE AND SHALL NOT BE TRANSFERRED TO OR REVERT TO THE GENERAL FUND OF THE STATE AT THE END OF ANY FISCAL YEAR.
2458106. Board of directors creation composition and election. (1) THE POWERS OF THE AUTHORITY SHALL BE VESTED IN A BOARD OF DIRECTORS.
(2) (a) PRIOR TO JANUARY 1, 1999, THE BOARD OF DIRECTORS SHALL CONSIST OF THE FOLLOWING SEVEN MEMBERS:
(I) THE STATE AUDITOR OR THE AUDITOR'S DESIGNEE;
(II) THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF PERSONNEL OR THE EXECUTIVE DIRECTOR'S DESIGNEE;
(III) ONE MEMBER TO BE APPOINTED BY THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF PERSONNEL;
(IV) TWO MEMBERS TO BE APPOINTED BY THE BOARD OF TRUSTEES OF PERA; AND
(V) TWO NONVOTING MEMBERS TO BE APPOINTED BY THE GOVERNOR WHO ARE EMPLOYEES OF A LOCAL GOVERNMENT OR A STATE INSTITUTION OF HIGHER EDUCATION AND WHO SHALL NOT REQUIRE SENATE CONFIRMATION.
(b) THE STATE AUDITOR OR THE AUDITOR'S DESIGNEE SHALL CALL AND CONVENE THE INITIAL ORGANIZATIONAL MEETING OF THE BOARD AND SERVE AS ITS CHAIR PRO TEMPORE UNTIL THE BOARD ELECTS ONE OF ITS MEMBERS AS CHAIR AND ONE OF ITS MEMBERS AS VICECHAIR.
(3) (a) COMMENCING ON AND AFTER JANUARY 1, 1999, THE BOARD OF DIRECTORS SHALL CONSIST OF THE FOLLOWING ELEVEN MEMBERS:
(I) THE STATE AUDITOR OR THE AUDITOR'S DESIGNEE;
(II) THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF PERSONNEL OR THE EXECUTIVE DIRECTOR'S DESIGNEE;
(III) ONE MEMBER TO BE APPOINTED BY THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF PERSONNEL;
(IV) TWO MEMBERS TO BE APPOINTED BY THE BOARD OF TRUSTEES OF PERA WHO ARE MEMBERS OF OR RECEIVE SURVIVOR BENEFITS FROM PERA;
(V) FOUR MEMBERS WHO HAVE KNOWLEDGE OF AND EXPERIENCE WITH HEALTH CARE COVERAGE, TO BE APPOINTED BY THE GOVERNOR, WITH THE CONSENT OF THE SENATE, AS FOLLOWS:
(A) ONE MEMBER WHO IS AN EMPLOYEE OF A SCHOOL DISTRICT;
(B) ONE MEMBER WHO IS AN EMPLOYEE OF A LOCAL GOVERNMENT AND WHO IS NOT AN EMPLOYEE OF A SCHOOL DISTRICT;
(C) ONE MEMBER WHO IS AN EMPLOYEE OF A STATE INSTITUTION OF HIGHER EDUCATION;
(D) ONE MEMBER WHO IS AN EMPLOYEE OF A LOCAL GOVERNMENT OR OF A STATE INSTITUTION OF HIGHER EDUCATION;
(VI) ONE MEMBER WHO IS AN EMPLOYEE COVERED UNDER THE AUTHORITY AND IS ELECTED BY ALL EMPLOYEES COVERED UNDER THE AUTHORITY; AND
(VII) ONE MEMBER WHO IS A PUBLIC RETIREE COVERED UNDER THE AUTHORITY AND IS ELECTED BY ALL PUBLIC RETIREES COVERED UNDER THE AUTHORITY.
(b) (I) OF THE MEMBERS INITIALLY APPOINTED BY THE GOVERNOR PURSUANT TO SUBPARAGRAPH (V) OF PARAGRAPH (a) OF THIS SUBSECTION (3), ONE MEMBER SHALL BE APPOINTED FOR A TERM OF ONE YEAR, ONE MEMBER SHALL BE APPOINTED FOR A TERM OF TWO YEARS, ONE MEMBER SHALL BE APPOINTED FOR A TERM OF THREE YEARS, AND ONE MEMBER SHALL BE APPOINTED FOR A TERM OF FOUR YEARS. MEMBERS SUBSEQUENTLY APPOINTED BY THE GOVERNOR SHALL BE APPOINTED FOR TERMS OF FOUR YEARS.
(II) MEMBERS APPOINTED IN ACCORDANCE WITH SUBSUBPARAGRAPHS (A) TO (C) OF SUBPARAGRAPH (V) OF PARAGRAPH (a) OF THIS SUBSECTION (3) SHALL BE VOTING MEMBERS OF THE BOARD WHENEVER AT LEAST ONE THOUSAND PUBLIC EMPLOYEES OF THE SAME TYPE AS THE APPROPRIATE MEMBER ARE COVERED FOR HEALTH CARE INSURANCE BENEFITS BY THE AUTHORITY. THE MEMBER APPOINTED IN ACCORDANCE WITH SUBSUBPARAGRAPH (D) OF SUBPARAGRAPH (V) OF PARAGRAPH (a) OF THIS SUBSECTION (3) SHALL BE A VOTING MEMBER OF THE BOARD WHENEVER ALL THREE OF THE MEMBERS APPOINTED IN ACCORDANCE WITH SUBSUBPARAGRAPHS (A) TO (C) OF SUBPARAGRAPH (V) OF PARAGRAPH (a) OF THIS SUBSECTION (3) ARE VOTING MEMBERS OF THE BOARD.
(c) MEMBERS APPOINTED UNDER SUBPARAGRAPHS (III) AND (IV) OF PARAGRAPH (a) OF THIS SUBSECTION (3) OR ELECTED UNDER SUBPARAGRAPHS (V) AND (VII) OF PARAGRAPH (a) OF THIS SUBSECTION (3) SHALL HAVE TERMS OF FOUR YEARS.
(d) A MEMBER OTHER THAN AN EXOFFICIO MEMBER SHALL NOT SERVE MORE THAN TWO CONSECUTIVE FOURYEAR TERMS. EACH MEMBER SHALL SERVE UNTIL THE MEMBER'S RESIGNATION OR, IN THE CASE OF A MEMBER WHOSE TERM HAS EXPIRED, UNTIL THE MEMBER'S SUCCESSOR HAS BEEN ELECTED OR APPOINTED AND QUALIFIED. ANY MEMBER APPOINTED BY THE GOVERNOR WHEN THE GENERAL ASSEMBLY IS NOT IN REGULAR SESSION, WHETHER APPOINTED FOR AN UNEXPIRED TERM OR FOR A FULL TERM, SHALL BE DEEMED TO BE DULY APPOINTED AND QUALIFIED UNTIL THE APPOINTMENT OF SUCH MEMBER IS APPROVED OR REJECTED BY THE SENATE. SUCH APPOINTMENT SHALL BE SUBMITTED TO THE SENATE FOR THE SENATE'S APPROVAL OR REJECTION DURING THE NEXT REGULAR SESSION OF THE GENERAL ASSEMBLY FOLLOWING THE APPOINTMENT.
(e) A VACANCY IN AN APPOINTED POSITION SHALL BE FILLED BY THE OFFICIAL OR BOARD THAT MADE THE ORIGINAL APPOINTMENT FOR THE UNEXPIRED TERM. A VACANCY IN AN ELECTED POSITION SHALL BE FILLED IN THE MANNER SET FORTH BY THE BOARD FOR THE UNEXPIRED TERM.
(4) THE MEMBERS SHALL SERVE WITHOUT COMPENSATION BUT SHALL BE REIMBURSED BY THE AUTHORITY FOR ANY NECESSARY EXPENSES INCURRED IN THE CONDUCT OF THE MEMBERS' OFFICIAL DUTIES UNDER THIS ARTICLE, AND NO MEMBER SHALL SUFFER A LOSS OF SALARY FROM THE MEMBER'S EMPLOYER FOR SERVICE ON THE BOARD.
(5) AN APPOINTED OR ELECTED MEMBER OF THE BOARD MAY BE REMOVED BY THE BOARD FOR MALFEASANCE IN OFFICE, FOR FAILURE TO REGULARLY ATTEND MEETINGS, OR FOR ANY OTHER CAUSE THAT RENDERS SAID MEMBER INCAPABLE OF OR UNFIT TO DISCHARGE THE DUTIES OF THE MEMBER IN ACCORDANCE WITH RULES PROMULGATED BY THE BOARD.
2458107. Duties of the board rules audits reports insurance. (1) THE MEMBERS OF THE BOARD OF DIRECTORS SHALL ELECT FROM AMONG THEMSELVES A CHAIR, VICECHAIR, AND ANY OTHER OFFICERS AS MAY BE NECESSARY FOR THE BOARD TO CARRY OUT ITS DUTIES AND RESPONSIBILITIES.
(2) THE BOARD SHALL ADOPT RULES FOR THE CONDUCT OF ITS MEETINGS. THE BOARD SHALL SET THE TIME AND PLACE FOR MEETINGS AND CONDUCT THE MEETINGS IN ACCORDANCE WITH THE PROVISIONS OF PART 4 OF ARTICLE 6 OF THIS TITLE AND SHALL MAINTAIN A RECORD OF THE PROCEEDINGS.
(3) NO VOTE OF THE BOARD SHALL TAKE PLACE EXCEPT AT A REGULAR OR SPECIAL MEETING AT WHICH A QUORUM CONSISTING OF AT LEAST A MAJORITY OF THE VOTING MEMBERS OF THE BOARD IS PRESENT.
(4) THE BOARD SHALL PROMULGATE RULES NECESSARY FOR THE ADMINISTRATION OF THIS ARTICLE.
(5) THE BOARD SHALL SUBMIT TO AND THE STATE AUDITOR SHALL CONDUCT OR CAUSE TO BE CONDUCTED FINANCIAL AND PERFORMANCE AUDITS OF THE AUTHORITY IN A MANNER CONSISTENT WITH THE REQUIREMENTS SET FORTH IN SECTION 23103, C.R.S.
(6) THE BOARD SHALL SUBMIT AN ANNUAL REPORT TO THE GOVERNOR AND THE GENERAL ASSEMBLY REGARDING THE OPERATIONS AND FINANCIAL CONDITION OF THE AUTHORITY.
(7) THE BOARD MAY OBTAIN INSURANCE AGAINST LIABILITY THAT ARISES OUT OF, OR IN CONNECTION WITH, THE PERFORMANCE OF ANY DUTIES BY ANY MEMBER OF THE BOARD OF DIRECTORS OR EMPLOYEE OF THE AUTHORITY, AND, IF THE AUTHORITY DOES OBTAIN SUCH INSURANCE, THE AUTHORITY SHALL PAY FOR THE INSURANCE.
(8) THE BOARD, THROUGH THE AUTHORITY, SHALL OFFER HEALTH CARE COVERAGE FOR PUBLIC EMPLOYEES, PUBLIC RETIREES, AND THEIR DEPENDENTS AS A HEALTH CARE INSURANCE COVERAGE COOPERATIVE IN ACCORDANCE WITH ARTICLE 18 OF TITLE 6, C.R.S., TO THE EXTENT THAT ITS PROVISIONS ARE NOT INCONSISTENT WITH THIS ARTICLE. ALL PREMIUMS AND OTHER MONEYS PAID FOR THE BENEFIT OF THE EMPLOYEES, RETIREES, AND DEPENDENTS PROVIDED COVERAGE UNDER THE AUTHORITY SHALL BE DEPOSITED INTO THE TRUST FUND TO BE USED EXCLUSIVELY FOR PROVIDING SUCH COVERAGE AND FOR PAYING THE REASONABLE EXPENSES OF THE AUTHORITY.
2458108. General powers. (1) IN ADDITION TO ANY OTHER POWERS GRANTED TO THE AUTHORITY IN THIS ARTICLE, THE AUTHORITY SHALL HAVE THE FOLLOWING POWERS:
(a) TO PROVIDE COVERAGES SET FORTH IN SECTION 2458107 (8);
(b) TO ENTER INTO CONTRACTS, AS NECESSARY, TO ACCOMPLISH THE PROVISIONS OF THIS ARTICLE, INCLUDING CONTRACTS FOR OFFICE SPACE, EQUIPMENT, GOODS, AND SERVICES, INCLUDING, BUT NOT LIMITED TO, BROKERAGE, CONSULTING, LEGAL, INVESTMENT, AND OTHER SERVICES;
(c) TO EMPLOY STAFF, INCLUDING BUT NOT LIMITED TO A DIRECTOR, TO ASSIST IN CARRYING OUT THE POWERS AND DUTIES OF THE BOARD WHO SHALL BE EMPLOYEES OF THE AUTHORITY CREATED BY THIS ARTICLE AND SHALL NOT BE EMPLOYEES OF THE STATE;
(d) TO CONTRACT WITH THE DEPARTMENT OF PERSONNEL OR OTHERS FOR PERSONNEL SERVICES;
(e) TO PAY COMMISSIONS AND OTHER REASONABLE EXPENSES TO ACCOMPLISH THE AUTHORITY'S PURPOSES;
(f) TO RECEIVE PAYMENT FOR COVERAGES AND SERVICES OFFERED AND TO RECEIVE, OR CONTRACT FOR, DONATIONS, GIFTS, GRANTS, AND LOANS OF FUNDS, PROPERTY, OR ANY OTHER AID IN ANY FORM FROM THE FEDERAL GOVERNMENT, THE STATE, ANY STATE AGENCY, OR ANY OTHER SOURCE;
(g) TO HOLD AND INVEST TRUST FUNDS SUBJECT TO THE PROVISIONS OF THE "UNIFORM PRUDENT INVESTOR ACT", ARTICLE 1.1 OF TITLE 15, C.R.S.;
(h) TO SUE OR BE SUED, INCLUDING TAKING ANY LEGAL ACTIONS AS NECESSARY OR PROPER ON BEHALF OF THE AUTHORITY;
(i) TO ESTABLISH CONDITIONS AND PROCEDURES FOR PARTICIPATION BY A PUBLIC EMPLOYER IN THE AUTHORITY AND FOR COVERAGE FOR PUBLIC EMPLOYEES, THEIR DEPENDENTS, AND PUBLIC RETIREES UNDER THE AUTHORITY;
(j) TO EXPEND FUNDS, BUT ONLY AS REASONABLE AND NECESSARY TO ACCOMPLISH THE PURPOSES OF THIS ARTICLE;
(k) TO PERFORM ANY OTHER DUTIES THAT ARE NOT INCONSISTENT WITH THE PROVISIONS OF THIS ARTICLE THAT ARE REQUIRED AS A CONDITION OF CERTIFICATION OR THAT ARE OTHERWISE PERMITTED AS A HEALTH CARE COVERAGE COOPERATIVE; AND
(l) TO HAVE AND EXERCISE ALL POWERS AND DUTIES NECESSARY OR INCIDENTAL TO ACCOMPLISH THE AUTHORITY'S PURPOSES.
(2) THE AUTHORITY SHALL NOT BE SUBJECT TO THE PROVISIONS OF THE "PROCUREMENT CODE", ARTICLES 101 TO 112 OF THIS TITLE. IN THE CASE OF CONTRACTS FOR OFFERING INSURANCE COVERAGE TO PUBLIC EMPLOYEES AND PUBLIC RETIREES, THE AUTHORITY SHALL USE A SEALED COMPETITIVE BIDDING PROCESS AND SHALL PROMULGATE RULES IN ACCORDANCE WITH SECTION 2458107 (4) THAT SHALL INCLUDE, BUT ARE NOT LIMITED TO, SOLICITATION OF BIDS BY REQUEST FOR PROPOSAL; PROVISION OF ADEQUATE PUBLIC NOTICE OF THE REQUEST FOR PROPOSAL; INCLUSION IN THE REQUEST FOR PROPOSAL OF, AT A MINIMUM, THE CONTRACTUAL TERMS AND CONDITIONS AND THE CRITERIA TO BE USED FOR EVALUATING THE PROPOSALS; USE OF THE BEST VALUE CONCEPT; USE OF PREESTABLISHED CRITERIA TO EVALUATE THE PROPOSALS; DETERMINATION OF WHETHER A BIDDER IS RESPONSIBLE; AND PROVISION OF FAIR ACCESS FOR SMALL BUSINESSES TO THE PROCESS.
(3) NOTHING IN THIS ARTICLE SHALL BE CONSTRUED TO WAIVE ANY PROVISIONS OF THE "COLORADO GOVERNMENTAL IMMUNITY ACT", ARTICLE 10 OF THIS TITLE, NOR SHALL IT BE CONSTRUED TO WAIVE IMMUNITY OF THE STATE FROM SUIT IN FEDERAL COURT.
(4) THE BOARD MAY DELEGATE ANY OF ITS RESPONSIBILITIES, DUTIES, AND AUTHORITIES AS SET FORTH IN THIS ARTICLE TO THE DIRECTOR OF THE AUTHORITY OR TO DESIGNATED AGENTS OF THE AUTHORITY.
2458109. Bonds and loans. (1) ON BEHALF OF THE AUTHORITY, THE BOARD IS AUTHORIZED TO BORROW MONEY, TO INCUR INDEBTEDNESS AND EVIDENCE THE SAME BY CERTIFICATES, CERTIFICATES OF PARTICIPATION, NOTES, OR DEBENTURES, AND TO ISSUE BONDS, INCLUDING BUT NOT LIMITED TO REVENUE BONDS, IN SUCH PRINCIPAL AMOUNT AS THE AUTHORITY DETERMINES IS NECESSARY TO ACCOMPLISH THE AUTHORITY'S PURPOSES. THE PRINCIPAL OF AND INTEREST ON ANY SUCH INDEBTEDNESS ISSUED BY THE AUTHORITY MAY BE SECURED BY A PLEDGE OF, OR SECURITY INTEREST IN, THE REVENUES AND RECEIPTS OF THE AUTHORITY.
(2) ALL BONDS ISSUED BY THE AUTHORITY AND ALL OTHER INDEBTEDNESS INCURRED BY THE AUTHORITY PURSUANT TO SUBSECTION (1) OF THIS SECTION SHALL:
(a) NOT CONSTITUTE OR BECOME AN INDEBTEDNESS, OR A LIABILITY OF THE STATE, THE GENERAL ASSEMBLY, OR ANY OTHER GOVERNMENTAL ENTITY, EXCEPT THE AUTHORITY;
(b) NOT CONSTITUTE THE GIVING, PLEDGING, OR LOANING OF THE FULL FAITH AND CREDIT OF THE STATE, THE GENERAL ASSEMBLY, OR ANY OTHER GOVERNMENTAL ENTITY, EXCEPT FOR THE AUTHORITY;
(c) BE PAYABLE SOLELY FROM THE FUNDS OF THE AUTHORITY AVAILABLE THEREFOR AND NOT OTHERWISE PLEDGED.
(3) NEITHER THE INDIVIDUAL MEMBERS OF THE AUTHORITY NOR ANY INDIVIDUAL EXECUTING THE BONDS OR OTHER INDEBTEDNESS SHALL BE PERSONALLY LIABLE OR SUBJECT TO ANY PERSONAL LIABILITY OR ACCOUNTABILITY FOR THE BONDS OR OTHER INDEBTEDNESS OF THE AUTHORITY.
(4) THE AUTHORITY MAY PURCHASE ITS BONDS OR OTHER INDEBTEDNESS OUT OF ANY FUNDS AVAILABLE THEREFOR. THE AUTHORITY MAY HOLD, PLEDGE, CANCEL, OR RESELL SUCH BONDS OR OTHER INDEBTEDNESS, SUBJECT TO AND IN ACCORDANCE WITH AGREEMENTS WITH HOLDERS OF THE BONDS OR OTHER INDEBTEDNESS.
(5) THE INCOME OR OTHER REVENUES OF THE AUTHORITY, ALL PROPERTIES AT ANY TIME OWNED BY THE AUTHORITY, ALL BONDS, NOTES, OR OTHER INDEBTEDNESS ISSUED BY THE AUTHORITY, INCLUDING BUT NOT LIMITED TO THEIR TRANSFER, INCOME, AND PROFIT ON SALE, SHALL BE EXEMPT FROM ALL TAXATION AND ASSESSMENT IN THE STATE , INCLUDING BUT NOT LIMITED TO ANY TAX OR ASSESSMENT BASED ON INCOME, TRANSFER, OR PROFIT ON THE SALE. BONDS AND ANY OTHER INDEBTEDNESS ISSUED BY THE AUTHORITY ALSO SHALL BE EXEMPT FROM THE PROVISIONS OF THE "COLORADO SECURITIES ACT", ARTICLE 51 OF TITLE 11, C.R.S.
(6) IN ORDER TO FINANCE STARTUP COSTS OF THE AUTHORITY OR FOR OTHER NECESSARY PURPOSES, THE BOARD MAY NEGOTIATE AND CONTRACT WITH ANY PERSON, CORPORATION, ASSOCIATION, ENTITY, OR THE STATE THROUGH THE STATE TREASURER FOR A LOAN. ANY LOAN FROM THE STATE TREASURER SHALL BE AT THE EARNINGS RATE CALCULATED MONTHLY BY THE STATE TREASURER. THE BOARD MAY PLEDGE REVENUES OF THE AUTHORITY FOR REPAYMENT OF ANY SUCH LOAN.
(7) THE AUTHORITY IS AUTHORIZED TO MAKE AND EXECUTE CONTRACTS AND ALL OTHER INSTRUMENTS NECESSARY OR INCIDENTAL WITH RESPECT TO BONDS AND ANY OTHER INDEBTEDNESS.
2458110. Confidentiality. (1) THE BOARD, THE AUTHORITY, AND THE EMPLOYEES, AGENTS, AND CONTRACTORS OF THE BOARD AND THE AUTHORITY SHALL MAINTAIN THE PRIVACY AND CONFIDENTIALITY OF HEALTH INFORMATION IN ACCORDANCE WITH SECTION 618103, C.R.S., AND ANY OTHER INFORMATION THAT IS PRIVATE OR CONFIDENTIAL BY LAW.
(2) THE BOARD, THE AUTHORITY, AND THE EMPLOYEES, AGENTS, AND CONTRACTORS OF THE BOARD AND THE AUTHORITY SHALL NOT BE REQUIRED TO DISCLOSE ANY PROPRIETARY INFORMATION OF ANY OF THE BOARD'S OR THE AUTHORITY'S CONTRACTORS OR ANY OTHER PERSON OR ENTITY. THE BOARD SHALL NOT BE REQUIRED TO DISCLOSE ANY INFORMATION IF PREMATURE DISCLOSURE OF INFORMATION WOULD GIVE AN UNFAIR COMPETITIVE OR BARGAINING ADVANTAGE TO ANY PERSON OR ENTITY OR WOULD ADVERSELY AFFECT THE PUBLIC INTEREST.
(3) THE BOARD MAY HOLD EXECUTIVE SESSIONS, WHICH SHALL BE CLOSED TO THE PUBLIC, TO DISCUSS ANY MATTER SPECIFIED IN THIS SECTION AND ANY OTHER MATTER FOR WHICH AN EXECUTIVE SESSION IS OTHERWISE PERMITTED BY LAW.
SECTION 2. 2477102 (15) (b), Colorado Revised Statutes, 1988 Repl. Vol., as amended, is amended BY THE ADDITION OF A NEW SUBPARAGRAPH to read:
2477102. Definitions. As used in this article, unless the context otherwise requires:
(15) (b) "Special purpose authority" includes, but is not limited to:
(XII) THE PUBLIC EMPLOYERS' GROUP INSURANCE AUTHORITY CREATED PURSUANT TO SECTION 2458104.
SECTION 3. 618102 (4), Colorado Revised Statutes, 1992 Repl. Vol., as amended, is amended to read:
618102. Definitions. As used in this article, unless the context otherwise requires:
(4) "Cooperative" means a health care coverage cooperative created pursuant to OR SUBJECT TO part 2 of this article as an entity that provides member health coverage and health care purchasing services, including but not limited to detailed information to its members on comparative prices, usage, outcomes, quality, and member satisfaction with provider networks. "Cooperative" does not include a cooperative association organized without capital stock in accordance with article 55 of title 7, C.R.S., which is established as a nonprofit corporation pursuant to articles 20 to 29 of title 7, C.R.S., and which had filed articles of incorporation with the secretary of state on or before March 15, 1991.
SECTION 4. 618201 (1) (a), Colorado Revised Statutes, 1992 Repl. Vol., as amended, is amended to read:
618201. Health care coverage cooperatives establishment fees. (1) (a) There is hereby authorized to be created entities to be known as health care coverage cooperatives. A health care coverage cooperative may be created as any lawful entity under articles 1 to 29 or articles 55 to 57 of title 7, C.R.S., provided such entity operates for the mutual benefits of its members. Entities created pursuant to this part 2, in addition to the matters otherwise required, shall be subject to this article. THE PUBLIC EMPLOYERS' GROUP INSURANCE AUTHORITY SHALL BE SUBJECT TO THIS ARTICLE TO THE EXTENT THAT THE PROVISIONS OF THIS ARTICLE DO NOT CONFLICT WITH THE PROVISIONS OF ARTICLE 58 OF TITLE 24, C.R.S.
SECTION 5. 618205 (1) and (5), Colorado Revised Statutes, 1992 Repl. Vol., as amended, are amended, and the said 618205 is further amended BY THE ADDITION OF A NEW SUBSECTION, to read:
618205. Administrative structure of cooperatives board of directors officers employees. (1) EXCEPT AS OTHERWISE PROVIDED IN SUBSECTION (8) OF THIS SECTION, the affairs of the cooperative shall be managed in accordance with the legal structure required of the entity and governed by persons elected by the members from their own number. The governing body of the cooperative shall adopt bylaws and rules for the cooperative. Members of a cooperative shall be entitled to equal participation and benefit from the cooperative; except that a cooperative at its option may extend voting rights to eligible employees. The governing body of the cooperative shall meet at such times and places as it determines necessary to operate the cooperative in accordance with this part 2.
(5) EXCEPT AS OTHERWISE PROVIDED IN SUBSECTION (8) OF THIS SECTION, when a vacancy occurs on the governing board of a cooperative other than by expiration of a term, the remaining members of the governing body shall fill the vacancy by majority vote.
(8) SUBSECTIONS (1), (2), AND (5) OF THIS SECTION SHALL NOT APPLY TO THE PUBLIC EMPLOYERS' GROUP INSURANCE AUTHORITY, CREATED PURSUANT TO ARTICLE 58 OF TITLE 24, C.R.S.
SECTION 6. The introductory portions to 618206 (1) and (3) and 618206 (3) (a), Colorado Revised Statutes, 1992 Repl. Vol., as amended, are amended to read:
618206. Powers, duties, and responsibilities of cooperatives. (1) Each cooperative organized pursuant to OR SUBJECT TO this part 2 shall:
(3) Each cooperative organized pursuant to OR SUBJECT TO this part 2 may not:
(a) Exclude any small employer or eligible employee or dependent of a small employer from membership in the cooperative who agrees to pay fees for membership and any premium for coverage through the cooperative and who abides by the bylaws of the cooperative; EXCEPT THAT THE PUBLIC EMPLOYERS' GROUP INSURANCE AUTHORITY CREATED PURSUANT TO ARTICLE 58 OF TITLE 24, C.R.S., SHALL OFFER MEMBERSHIP ONLY TO PARTICIPATING PUBLIC EMPLOYERS AND MAY NOT EXCLUDE FROM MEMBERSHIP ANY PUBLIC EMPLOYER OR ELIGIBLE EMPLOYEES OR RETIREES OF SUCH PUBLIC EMPLOYERS AND THEIR ELIGIBLE DEPENDENTS.
SECTION 7. Part 12 of article 51 of title 24, Colorado Revised Statutes, 1988 Repl. Vol., as amended, is amended BY THE ADDITION OF A NEW SECTION to read:
24511208. Cooperative. ON OR AFTER JANUARY 1, 1999, THE BOARD OF DIRECTORS OF PERA SHALL TRANSFER, BY CONTRACT, TO THE PUBLIC EMPLOYERS' GROUP INSURANCE AUTHORITY ALL FUNCTIONS SET OUT UNDER PART 12 OF ARTICLE 51 OF THIS TITLE, EXCEPT FOR MANAGEMENT OF THE HEALTH CARE FUND ASSETS, DEDUCTION OF PREMIUM AMOUNTS FROM BENEFIT PAYMENTS, AND TRANSFER OF PREMIUM SUBSIDY FUNDS TO THE AUTHORITY. THE BOARD MAY TRANSFER, IN ITS DISCRETION AND UPON MUTUAL AGREEMENT WITH THE AUTHORITY, THE HEALTH CARE FUNDS TO THE AUTHORITY, TOGETHER WITH THE PREMIUM SUBSIDY FUNCTION.
SECTION 8. 2450603 (5), (9), and (11), Colorado Revised Statutes, 1988 Repl. Vol., as amended, are amended, and the said 2450603 is further amended BY THE ADDITION OF A NEW SUBSECTION, to read:
2450603. Definitions. As used in this part 6, unless the context otherwise requires:
(5) "Dependent" means an employee's
legal spouse; each unmarried child, including adopted children,
stepchildren, and foster children, through the end of the calendar
year in which the child turns nineteen years of age, for whom
the employee is the major source of financial support or is directed
by court order to provide coverage; each unmarried child nineteen
years of age, through the end of the calendar year
MONTH in which the child turns twentythree
TWENTYFOUR years of age, who is a fulltime student
in an educational or vocational institution and for whom the employee
is the major source of financial support or is directed by court
order to provide coverage; and each unmarried child who has either
a physical or mental disability, as defined by the carrier, not
covered under other government programs, and for whom the employee
is the major source of financial support or is directed by court
order to provide coverage.
(9) "Group benefit plans" means any group benefit coverages contracted for or administered by the director OR THROUGH THE PUBLIC EMPLOYERS' GROUP INSURANCE AUTHORITY, including but not limited to, medical, dental, life, and disability benefits.
(11) "Medical benefits" includes, but is not limited to, hospital room and board, other hospital services, certain outpatient benefits, maternity benefits, surgical benefits including obstetrical care, inhospital medical care, diagnostic X rays, laboratory benefits, physician services, prescription drugs, mental health and substance abuse services, comparable medical benefits for employees who rely solely on spiritual means for healing, and such other similar benefits as the director OR THE PUBLIC EMPLOYERS' GROUP INSURANCE AUTHORITY deems reasonable and appropriate for eligible employees and dependents.
(12.5) "PUBLIC EMPLOYERS' GROUP INSURANCE AUTHORITY" MEANS THE PUBLIC EMPLOYERS' GROUP INSURANCE AUTHORITY CREATED BY SECTION 2458104 (1).
SECTION 9. 2450604, Colorado Revised Statutes, 1988 Repl. Vol., as amended, is amended BY THE ADDITION OF A NEW SUBSECTION to read:
2450604. Powers and duties of the director. (3) EXCEPT FOR THE POWERS AND DUTIES SPECIFIED IN PARAGRAPHS (a), (d), AND (e) OF SUBSECTION (1) OF THIS SECTION, COMMENCING ON OR AFTER JANUARY 1, 1999, THE POWERS AND DUTIES OF THE DIRECTOR SPECIFIED IN THIS SECTION RELATING TO HEALTH CARE PLANS SHALL BE PERFORMED BY THE PUBLIC EMPLOYERS' GROUP INSURANCE AUTHORITY.
SECTION 10. 2450605 (1) (a), Colorado Revised Statutes, 1988 Repl. Vol., as amended, is amended, and the said 2450605 is further amended BY THE ADDITION OF A NEW SUBSECTION, to read:
2450605. Group benefit plans specifications contracts. (1) (a) The specifications drawn by the director for any group benefit plans include those benefits as determined by the director OR THE PUBLIC EMPLOYERS' GROUP INSURANCE AUTHORITY or as otherwise specifically provided in this part 6. Such specifications shall include provisions for noncancellation for reasons of health of any individual employee by the carrier and transferability to other group benefit coverages or individual policies with the same carrier by the employee, if such provisions do not limit the ability of the director to prepare specifications including a lifetime maximum benefit per employee or employee's covered dependents.
(5) ON OR AFTER JANUARY 1, 1999, THE DUTIES OF THE DIRECTOR SET FORTH IN THIS SECTION RELATING TO HEALTH CARE PLANS SHALL BE PERFORMED BY THE PUBLIC EMPLOYERS' GROUP INSURANCE AUTHORITY.
SECTION 11. 2450606, Colorado Revised Statutes, 1988 Repl. Vol., as amended, is amended BY THE ADDITION OF A NEW SUBSECTION to read:
2450606. Choice of medical plans requirement. (4) UPON THE PUBLIC EMPLOYERS' GROUP INSURANCE AUTHORITY ASSUMING RESPONSIBILITY FOR THE ADMINISTRATION OF HEALTH CARE PLANS PURSUANT TO SECTION 2450604 (3), THE AUTHORITY SHALL DETERMINE THE CHOICE OF SUCH PLANS.
SECTION 12. 2450607 (2), Colorado Revised Statutes, 1988 Repl. Vol., as amended, is amended to read:
2450607. Employees eligibility election of coverage. (2) The manner and form of election and acceptance by state employees of group benefit plans contracted for pursuant to section 2450604 (1) (b) shall be in compliance with procedures established for that purpose by the director OR, ON OR AFTER JANUARY 1, 1999, BY THE PUBLIC EMPLOYERS' GROUP INSURANCE AUTHORITY FOR HEALTH CARE PLANS.
SECTION 13. 2450608, Colorado Revised Statutes, 1988 Repl. Vol., is amended to read:
2450608. Dependents eligibility election of coverage. (1) Any eligible employee may elect to have the employee's dependents covered by the group benefit plans. Such election shall be made at the time the employee becomes enrolled in the plan under such procedures as the director shall establish. If dependent coverage is not elected at the time that an employee becomes enrolled in an appropriate plan, any subsequent election of dependent coverage shall be made under such conditions as the director OR, ON OR AFTER JANUARY 1, 1999, FOR HEALTH CARE PLANS, AS THE PUBLIC EMPLOYERS' GROUP INSURANCE AUTHORITY may impose.
(2) Any employee who elects coverage, as provided in subsection (1) of this section, and who has a change in the number of dependents may, at the time of such change, increase or decrease the number of dependents covered by the group benefit plans under procedures established by and subject to the approval of the director OR, ON OR AFTER JANUARY 1, 1999, OF THE PUBLIC EMPLOYERS' GROUP INSURANCE AUTHORITY FOR HEALTH CARE PLANS.
(3) Any employee who has no eligible dependents at the time the employee becomes enrolled in the group benefit plans and who later has an eligible dependent may, at the time the dependency status changes, elect appropriate coverage for such dependent under procedures established by and subject to the approval of the director OR, ON OR AFTER JANUARY 1, 1999, OF THE PUBLIC EMPLOYERS' GROUP INSURANCE AUTHORITY FOR HEALTH CARE PLANS.
SECTION 14. 2450614, Colorado Revised Statutes, 1988 Repl. Vol., as amended, is amended to read:
2450614. State payments
authority of controller. The state
contributions to group benefit plans shall be paid monthly to
the director. by
The state controller who
shall make a charge against the accounts of the state departments,
agencies, and institutions for this purpose. Such charges shall
be the amounts necessary to cover the state contributions, as
defined in section 2450609, for employees and shall
be made against both general revenue fund accounts and specific
cash fund accounts as required. UPON THE PUBLIC EMPLOYERS' GROUP
INSURANCE AUTHORITY ASSUMING RESPONSIBILITY FOR THE ADMINISTRATION
OF HEALTH CARE BENEFIT PLANS PURSUANT TO SECTION 2450604
(3), THE DIRECTOR SHALL MAKE PAYMENTS FOR THE STATE CONTRIBUTIONS
TO GROUP HEALTH CARE BENEFIT PLANS TO THE PUBLIC EMPLOYERS' GROUP
INSURANCE AS APPROPRIATE.
SECTION 15. Safety clause. The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety.