Bill Text: NJ A2777 | 2010-2011 | Regular Session | Introduced
Bill Title: The "South Jersey Regional Veterans' Health Care Facility Grant Fund Act."
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2010-05-20 - Introduced, Referred to Assembly Military and Veterans' Affairs Committee [A2777 Detail]
Download: New_Jersey-2010-A2777-Introduced.html
Sponsored by:
Assemblyman MATTHEW W. MILAM
District 1 (Cape May, Atlantic and Cumberland)
Assemblyman NELSON T. ALBANO
District 1 (Cape May, Atlantic and Cumberland)
SYNOPSIS
The "South Jersey Regional Veterans' Health Care Facility Grant Fund Act."
CURRENT VERSION OF TEXT
As introduced.
An Act dedicating $25 million from the conversion of a health service corporation to a domestic stock insurer to the South Jersey Regional Veterans' Health Care Facility Grant Fund and amending and supplementing various parts of statutory law.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. (New section) This act shall be known and may be cited as the "South Jersey Regional Veterans' Health Care Facility Grant Fund Act."
2. (New section) The Legislature finds that:
a. The citizens of this nation and State are indebted to the sacrifice and heroism of the men and women who have served in the Armed Forces of the United States;
b. In return for their sacrifices, this country has made a commitment to meeting the health care needs of veterans, especially those with service-related disabilities;
c. Unfortunately, the needs of veterans residing in the southern region of this State are not being adequately met as these veterans must travel long distances to northern New Jersey, Pennsylvania, New York or Delaware to obtain inpatient care services from a veterans' medical center;
d. It is fitting and appropriate for the State to take steps to ensure that our nation's promises to the veterans of southern New Jersey to have access to health care services are kept;
e. To that end, the South Jersey Regional Veterans' Health Care Facility Grant Fund is established, in part with monies received from the conversion of Horizon Blue Cross Blue Shield of New Jersey from a not-for-profit to a for-profit corporation, for the purpose of providing grants for the construction and operation of a veterans' health care facility in southern New Jersey;
f. The use of a portion of these proceeds is congruous with the legislative intent of section 19 of P.L.2001, c.131 (C.17:48E-67), which allows for the conversion as long as the proceeds are used "solely for the purposes of expanding access to affordable, quality health care for underserved individuals and promoting fundamental improvements in the health status of New Jerseyans."
3. (New section) It is
determined that it is the policy of this State to provide the necessary means
to provide the full continuum of health care for veterans who have served this
nation and State honorably; the construction and operation of a veterans'
health care facility in southern New Jersey, as proposed in this act, is a
public
purpose and a public use for which public money may be expended and granted;
and that the necessity in the public interest for provisions hereinafter
enacted is a matter of legislative determination.
4. (New section) As used in this act:
"Adjutant General" means the Adjutant General of the Department of Military and Veterans' Affairs.
"Department" means the Department of Military and Veterans' Affairs.
"Fund" means the South Jersey Regional Veterans' Health Care Facility Grant Fund established pursuant to section 5 of this act.
"South Jersey Regional Veterans' Health Care Facility" or "veterans' facility," means a facility built adjacent to or as a part of the hospital that receives a grant from the fund for the purpose of providing a full range of primary care and medical and surgical subspecialty care to veterans of this State.
"Veteran" means a person determined by the Adjutant General to be considered a veteran for the purpose of receiving health care services at the South Jersey Regional Veterans' Health Care Facility. The determination shall apply only prospectively from the date of initial determination or date of determination from an appeal, as appropriate, and shall be binding.
5. (New section) a. The South Jersey Regional Veterans' Health Care Facility Grant Fund is established as a nonlapsing fund in the Department of the Treasury. The fund shall be administered by the State Treasurer, in consultation with the Adjutant General or his designee and may be invested by the Director of the Division of Investment in the Department of the Treasury in investments in which other State funds may be invested.
b. The fund shall be comprised of:
(1) monies received pursuant to sections 8 and 9 of this act;
(2) any monies appropriated thereto by the Legislature; and
(3) any interest or other income earned on monies deposited into the fund.
c. The Adjutant General shall be responsible for the oversight, coordination and disbursement of fund monies in the form of grants to an eligible hospital that meets the qualifications set forth in section 6 of this act. Any disbursement of monies from the fund shall be used solely for the construction and operation of the South Jersey Regional Veterans' Health Care Facility.
6. (New section) A hospital which receives a grant from the fund shall form a partnership with the State through the department to oversee the construction and operation of the South Jersey Regional Veterans' Health Care Facility.
A hospital which qualifies for a grant shall:
a. be organized as a not-for-profit hospital licensed pursuant to Title 26 of the Revised Statutes;
b. be located in the southern region of the State in a county of the third class having a population of not less than 140,000 but not more than 150,000 according to the 2000 federal census; and
c. submit an application to the department on a form prescribed by the Adjutant General, which shall include the following information:
(1) a description of the geographic boundaries serviced by the hospital;
(2) a description of health care services that the hospital can provide or would be capable of providing to veterans;
(3) a description of the hospital's capacity to oversee the construction and operation of the veterans' facility;
(4) an estimate of the construction costs of the veterans' facility;
(5) an estimate of the operation costs of the veterans' facility for five years after construction; and
(6) any other information the Adjutant General deems necessary.
7. (New section) The Adjutant General shall be entitled to make inspections of the hospital applying for a grant and the veterans' facility funded pursuant to this act; audit and examine any books and records of the hospital that has applied for or received a grant; and require periodic reports as shall be necessary to ascertain the progress of the construction and operation of the veterans' facility and the extent of compliance with the contract for the grant.
8. (New section) The Adjutant General, or his designee, shall:
a. be an ex officio and voting member of the board of directors of the hospital that receives a grant from the department;
b. establish the criteria to determine who shall be eligible to receive health care services at the veterans' facility;
c. determine whether any person seeking to be considered an eligible veteran for the purpose of receiving the health care services as provided by this act, meets those criteria;
d. adjudicate an appeal from any person disputing this determination; and
e. seek, receive and make use of any funds which may be available from federal or other sources in other to augment any State funds appropriated for the purposes of this act, and shall make every effort to qualify the construction or operation of the veterans' facility for federal funding.
9. (New section) From the proceeds of any conversion of a health service corporation to a domestic stock insurer pursuant to P.L.2001, c.131 (C.17:48E-49 et seq.), an amount not to exceed $25 million shall be dedicated, invested and used for the purpose of constructing and operating the South Jersey Regional Veterans' Health Care Facility pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill).
10. Section 19 of P.L.2001, c.131 (C.17:48E-67) is amended to read as follows:
19. a. (1) A health service corporation shall submit to the Attorney General a petition for review of a foundation plan at the same time that it submits a plan of conversion to the commissioner. The petition shall include the foundation plan and any other information that the Attorney General requests.
(2) Within 60 days of the health service corporation's submission of the petition to the Attorney General, the Attorney General shall advise the health service corporation in writing whether the petition is complete, and, if not, shall specify what additional information is required.
(3) The Attorney General shall, upon receipt of the information requested, notify the health service corporation in writing of the date of completion of the petition.
b. The Attorney General shall review the petition and may either support the proposed foundation plan, with or without any specific modifications, or, if he finds that it is not in the public interest, oppose the foundation plan in the Superior Court proceeding commenced pursuant to subsection f. of this section.
c. When reviewing the petition, in addition to considering whether the foundation plan meets the requirements of subsection d. of this section, the Attorney General shall consider whether:
(1) the health service corporation exercised due diligence in deciding to effectuate the conversion, selecting any other party to the conversion or related transactions, and negotiating the terms and conditions of the conversion;
(2) the procedures used by the health service corporation in approving the conversion, including whether expert assistance was used, [were] where appropriate;
(3) a conflict of interest was disclosed, including, but not limited to, conflicts of interest related to board members of, employees of, and experts retained by, the health service corporation or any other parties to the conversion;
(4) any management contract under the conversion or any related transaction is for reasonable fair value;
(5) any proceeds of the conversion will be used solely for purposes of expanding access to affordable, quality health care for underserved individuals and promoting fundamental improvements in the health status of New Jerseyans in part through the dedication, investment and use of an amount not to exceed $25 million for the purpose of constructing and operating the South Jersey Regional Veterans' Health Care Facility as provided in P.L. , c. (C. ) (pending before the Legislature as this bill);
(6) the health service corporation established appropriate criteria in deciding to pursue a conversion and considered the proposed conversion as the only alternative or as the best alternative in relation to carrying out its mission and purposes; and
(7) officers, directors, board members or senior management of the health service corporation will receive contracts in any existing, new or affiliated health service corporation, foundation, the converted insurer, any parent corporation or any affiliate of any of the foregoing.
d. The foundation plan shall meet the following requirements:
(1) The foundation plan shall provide for the establishment of one or more foundations that will receive the fair market value of the health service corporation following its conversion to a domestic stock insurer and that meets the following requirements:
(a) The foundation shall be a trust or nonprofit corporation formed under the laws of this State, but shall not include the health service corporation or any person controlled by the health service corporation.
(b) The foundation shall be a charitable entity that qualifies for federal income tax exemption under paragraph (3) of subsection (c) of section 501 of the federal Internal Revenue Code of 1986, 26 U.S.C. s.501.
(c) The foundation shall have the sole purposes of expanding ccess to affordable, quality health care for underserved individuals and promoting fundamental improvements in the health status of all New Jerseyans.
(d) The foundation, its directors, officers and trustees and the assets of the foundation, including any stock of the converted insurer or a parent corporation, shall be independent of any influence or control by the converted insurer, its parent corporation, any of their subsidiaries or affiliates, any of their respective directors, officers, trustees or employees, except with the prior approval of the Attorney General and the commissioner.
(e) The foundation shall not have more than one of its directors serve as a director of the converted insurer or its parent corporation.
(f) The foundation shall not have as a director, officer or senior management any person who has been a director, officer, agent, trustee or employee of the health service corporation, the converted insurer, its parent corporation or any affiliate of any of them during the three-year period preceding the date of appointment as a director, officer or senior manager of the foundation.
(g) The foundation shall have a board of directors that when appointed will comply with section 20 of this act.
(2) The foundation shall provide the Attorney General with an annual report which shall include an audited financial statement and a detailed description of its grant-making and other charitable activities related to its use of the charitable assets received pursuant to the conversion. The annual report shall be made available to the public at both the Attorney General's office and the office of the foundation. Nothing contained in this act shall affect the obligations of an entity possessing endowment funds under the "Uniform Management of Institutional Funds Act," P.L.1975, c.26 (C.15:18-15 et seq.).
(3) The governing body of the foundation shall establish or demonstrate that it has in place, as the case may be, a mechanism to avoid conflicts of interest, including those associated with grant-making activities that may benefit the converted insurer, its affiliates, any person who owns or controls any ownership interest in either the converted insurer or any of its affiliates, and any director or officer of the converted insurer or its affiliates.
e. The Attorney General shall, during the course of the review of the foundation plan pursuant to this section, hold at least one public hearing in which any person may file written comments and exhibits or appear and make a statement. The public hearing may, if the Attorney General and the commissioner so agree, be conducted jointly as part of the public hearing on the conversion required pursuant to subsection e. of section 3 of this act. The Attorney General may subpoena additional information or witnesses, including, but not limited to, information about any transaction that is collateral to the proposed conversion and any related documents, require and administer oaths, require sworn statements, take depositions and use related discovery procedures for purposes of the hearing and at any time prior to completing the review of the proposed conversion. The hearing shall be in the nature of a legislative hearing and shall not constitute or be considered a contested case under the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.). The public hearing shall be held no later than 90 days after the date that the petition is declared complete by the Attorney General. Public notice of the hearing shall be provided by the health service corporation not more than 45 days and not less than 15 days prior to the public hearing in at least two newspapers of general circulation in New Jersey.
f. Upon completion by the Attorney General of the review of the petition, the health service corporation shall apply to the Superior Court for approval of the establishment of the foundation. In that action, which shall proceed in a summary manner, the Attorney General shall advise the court as to whether he supports or opposes the foundation plan, with or without any specific modifications, and the basis for that position. In considering whether the foundation plan is in the public interest, the court shall consider whether the requirements of paragraph (1) of subsection d. of this section have been satisfied and may consider the criteria established in subsection c. of this section, as applicable. If the health service corporation fails to comply with this subsection, the Attorney General may seek appropriate relief in Superior Court.
(cf: P.L.2001, c.131, s.19)
11. (New section) The Adjutant General shall promulgate rules and regulations pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) necessary to effectuate the purposes of this act.
12. This act shall take effect immediately.
STATEMENT
This bill, the "South Jersey Regional Veterans' Health Care Facility Grant Fund Act" guarantees that veterans living in the southern region of this State have access to a full continuum of health care services. This bill establishes the funding mechanism for the construction and operation of the South Jersey Regional Veterans' Health Care Facility which will provide a full range of primary care and medical and surgical subspecialty care to veterans of this State. Currently there are no hospital facilities in southern New Jersey that can offer these services to veterans. Consequently, they must travel out of State to Pennsylvania, Delaware or New York or up to the northern areas of the State for care.
This bill establishes the South Jersey Regional Veterans' Health Care Facility Grant Fund, which shall be comprised of $25 million received from the conversion of Horizon Blue Cross Blue Shield of New Jersey to a for-profit corporation, in addition to federal funds or State funds appropriated for the purposes of this bill. The Adjutant General of the Department of Military and Veterans' Affairs shall be responsible for the oversight, coordination and disbursement of the fund monies in the form of grants made to an eligible nonprofit hospital for the construction and operation of the South Jersey Regional Veterans' Health Care Facility.
Legislation enacted in 2001 allows for the conversion of Horizon Blue Cross Blue Shield of New Jersey but requires that the funds generated in the conversion from a not-for-profit to a for-profit corporation be dedicated solely for the purposes of expanding access to affordable, quality health care for underserved individuals and promoting fundamental improvements in the health status of New Jersey citizens. The purpose of this bill is congruous with the requirements of the law concerning the conversion given that veterans living in southern New Jersey have few health care options available to them.
