Bill Text: NJ S1320 | 2016-2017 | Regular Session | Introduced
Bill Title: Requires local governments and school boards in SHBP/SEHBP to certify savings based on three bids from non-SHBP/SEHBP plans before continuing SHBP/SEHBP in new collective negotiations agreements.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2016-02-08 - Introduced in the Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee [S1320 Detail]
Download: New_Jersey-2016-S1320-Introduced.html
Sponsored by:
Senator JOSEPH F. VITALE
District 19 (Middlesex)
SYNOPSIS
Requires local governments and school boards in SHBP/SEHBP to certify savings based on three bids from non-SHBP/SEHBP plans before continuing SHBP/SEHBP in new collective negotiations agreements.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning health care benefits plans provided to public employees of local governments and boards of education, and supplementing Title 40A and Title 18A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. A local unit that participates in the State Health Benefits Program, established pursuant to P.L.1961, c.49 (C.52:14-17.25 et seq.), or the School Employees' Health Benefits Program, established pursuant to P.L.2007, c.103 (C.52:14-17.46.1 et seq.), shall certify, prior to the execution of any collective negotiations agreement on or after the effective date of P.L. , c. (pending before the Legislature as this bill) providing for the continued participation of the local unit for the term of the agreement, that the total aggregate savings that will be realized by the local unit during the term of the agreement, as the agreement is applied to employees and retirees covered by that agreement and as applied to employees and retirees, if any, not covered by that agreement but to whom the agreement has been applied by the local unit, equals or exceeds the total aggregate savings that would have been realized had the local unit discontinued participation and provided to those employees and retirees non-SHBP or non-SEHBP health care benefits plans or programs. The certification shall be based on not less than three proposals obtained by the local unit for the provision of non-SHBP or non-SEHBP plans or programs that would be substantially similar in all material respects to the SHBP or SEHBP in design and that would incorporate all other terms and conditions for health care benefits plans and program contained in the agreement, including employee costs, as would be applicable if the local unit continued participation in the SHBP or SEHBP. The proposals shall be in such form and shall contain such detail as proposals submitted by potential vendors seeking to enter into a contract with the local unit.
A local unit shall certify the savings in writing to the Division of Local Government Services in the Department of Community Affairs and the Division of Pensions and Benefits in the Department of the Treasury. The Department of Community Affairs shall review and approve or reject the certification within 30 days of receipt. The certification shall be deemed approved if not rejected within that time. The agreement shall not be executed until that approval is received or the 30-day period has lapsed, whichever occurs first.
If a local unit cannot obtain at least three proposals within a reasonable period of time, the local unit shall use those proposals obtained for the certification and shall provide a detailed explanation in writing of the actions taken to obtain the required number of proposals and the reasons for the failure to do so.
This section shall apply also to county colleges, and to local authorities defined as an "authority" under the "Local Authorities Fiscal Control Law," P.L.1983, c.313 (C.40A:5A-1 et seq.).
2. A board of education that participates in the School Employees' Health Benefits Program, established pursuant to P.L.2007, c.103 (C.52:14-17.46.1), shall certify, prior to the execution of any collective negotiations agreement on or after the effective date of P.L. , c. (pending before the Legislature as this bill) providing for the continued participation of the board of education for the term of the agreement, that the total aggregate savings that will be realized by the board of education during the term of the agreement, as the agreement is applied to employees covered by that agreement and as applied to employees, if any, not covered by that agreement but to whom the agreement has been applied by the board, equals or exceeds the total aggregate savings that would have been realized had the board of education discontinued participation and provided to those employees non-SEHBP health care benefits plans or programs. The certification shall be based on not less than three proposals obtained by the board of education for the provision of non-SEHBP plans or programs that would be substantially similar in all material respects to the SEHBP in design and that would incorporate all other terms and conditions for health care benefits plans and programs contained in the agreement, including employee costs, as would be applicable if the board of education continued participation in the SEHBP. The proposals shall be in such form and shall contain such detail as proposals submitted by potential vendors seeking to enter into a contract with the board of education.
A board of education shall certify the savings in writing to the Department of Education and the Division of Pensions and Benefits in the Department of the Treasury. The Department of Education shall review and approve or reject the certification within 30 days of receipt. The certification shall be deemed approved if not rejected within that time. The agreement shall not be executed until that approval is received or the 30-day period has lapsed, whichever occurs first.
If a board of education cannot obtain at least three proposals within a reasonable period of time, the board shall use those proposals obtained for the certification and shall provide a detailed explanation in writing of the actions taken to obtain the required number of proposals and the reasons for the failure to do so.
3. This act shall take
effect on the first day of the third month following enactment.
STATEMENT
This bill requires all local governments and boards of education that participate in the State Health Benefits Program (SHBP) or the School Employees' Health Benefits Program (SEHBP) to obtain not less than three proposals for non-SHBP or non-SEHBP health care benefits plans before executing any new collective negotiations agreement with public employees to ensure that continuing with SHBP or SEHBP would result in savings to the employer over the term of the agreement. The bill requires local governments and boards of education to certify these savings to the Department of Community Affairs or the Department of Education, as appropriate, and to the Division of Pensions and Benefits in the Department of the Treasury. The Department of Community Affairs or the Department of Education, as appropriate, will review and approve or reject the certification within 30 days of receipt. The certification will be deemed approved if not rejected within that time. The collective negotiations agreement cannot be executed until that approval is received or the 30-day period has lapsed, whichever occurs first.
