Bill Text: NJ S2567 | 2020-2021 | Regular Session | Introduced
Bill Title: Permits certain cities to transfer a portion of its public employees from a locally-administered health benefits program to SHBP.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2020-06-15 - Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee [S2567 Detail]
Download: New_Jersey-2020-S2567-Introduced.html
Sponsored by:
Senator SANDRA B. CUNNINGHAM
District 31 (Hudson)
SYNOPSIS
Permits certain cities to transfer a portion of its public employees from a locally-administered health benefits program to SHBP.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning participation in the State Health Benefits Program and amending P.L.1964, c.125.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 6 of P.L.1964, c.125 (C.52:14-17.37) is amended to read as follows:
6. a. Any employer eligible for participation in the program may elect such participation by the adoption of a resolution by its governing body, which would include the name and title of a certifying agent, and a certified copy of the resolution shall be filed with the commission. Any employer making such election shall become a participating employer under the program, subject to and in accordance with the rules and regulations of the commission relating thereto.
b. Notwithstanding the provisions of any other law to the contrary, the availability of plans within the program may be limited for employees of a participating employer other than the State pursuant to a binding collective negotiations agreement between the employer and its employees or pursuant to the application by the employer, in its sole discretion, of the terms of any collective negotiations agreement binding on the employer to employees for whom there is no majority representative for collective negotiations purpose. The commission shall implement the terms of such an agreement, and the application of such terms, with regard to plan availability for employees of the employer. The commission may impose such restrictions on the terms as the commission may deem necessary to ensure the effective and efficient operation of the program. This subsection shall apply to the State Health Benefits Program and the School Employees' Health Benefits Program.
c. Notwithstanding the provisions of any other law, rule or regulation to the contrary, a governing body of a municipality of the first class, as defined in N.J.S.40A:6-4, may elect, by resolution, to participate in the program by transferring certain employees from the municipality's health benefits program, provided pursuant to N.J.S.40A:10-17, into the State Health Benefits Program, while retaining in the locally-administered health benefits program any other employees not transferred into the State program.
A governing body of a municipality thereof that elects to transfer certain employees into the State Health Benefits Program shall provide, in writing, notice to those employees of its intent to change providers for those employees not less than 45 days prior to the date that the change in providers would be effective. The governing body shall provide those employees, or their majority representative, with the master plan documents of both the current and proposed benefits prior to implementation of any changes.
(cf: P.L.2010, c.2, s.7)
2. This act shall take effect immediately.
STATEMENT
This bill permits certain municipalities to transfer a portion of its public employees from its locally-administered health benefits program into the State Health Benefits Program (SHBP).
Currently, a municipality with its own health benefits program may transition all of its public employees into SHBP on an "all or nothing basis." However, this bill permits municipalities of the first class, a municipality with a population of more than 150,000, the option to transfer certain employees from the municipality's health benefits program into SHBP, while retaining in their locally-administered health benefits program any other employees not transferred to the State program.
Under the bill, a governing body of a municipality thereof that elects to transfer certain employees into SHBP is required to provide, in writing, notice to those employees of its intent to change providers for those employees not less than 45 days prior to the date that the change in providers would be effective. The governing body is also required to provide those employees, or their majority representative, with the master plan documents of both the current and proposed benefits prior to implementation of any changes.
