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Bill > S3245


NJ S3245

NJ S3245
Requires any increase in local government costs for employee health care and prescription benefits coverage be offset by equivalent increase in municipal energy tax receipts property tax relief aid.


summary

Introduced
10/27/2022
In Committee
10/27/2022
Crossed Over
Passed
Dead
01/08/2024

Introduced Session

2022-2023 Regular Session

Bill Summary

This bill provides that, in the event that a municipality, due to an annual rate increase, is required to increase the amount it expends from the prior year to provide health care and prescription benefits coverage to its officers and employees, the State will increase the amount of annual aid distributed to the municipality under the "Energy Tax Receipts Property Tax Relief Act," P.L.1997, c.167 (C.52:27D-438 et seq.) by the equivalent amount to offset the increase in the employee health care and prescription benefits coverage expenditures. The provisions of the bill apply when the health care and prescription benefits are provided through self-insurance, the purchase of commercial insurance or reinsurance, an insurance fund or joint insurance fund, the "New Jersey State Health Benefits Program Act," P.L.1961, c.49 (C.52:14-17.25 et seq.), or in any other manner or any combination thereof. Under the bill, the governing body of a municipality that is required to increase its expenditures to provide employee health care and prescription benefits coverage would submit the information concerning the amount of the annual increase to the Director of the Division of Local Government Services in the Department of Community Affairs in a manner and on such forms as determined by the director. Prior to submission, the information is required to be certified by a business administrator or the chief financial officer. The bill also provides that the exclusion of certain health care costs from the property tax levy calculation would not apply to a municipality which receives an increase in energy tax receipts property tax relief aid pursuant to the bill.

AI Summary

This bill provides that, in the event a municipality is required to increase its expenditures to provide health care and prescription benefits coverage to its employees, the State will increase the amount of annual aid distributed to the municipality under the "Energy Tax Receipts Property Tax Relief Act" by an equivalent amount to offset the increase in employee health care and prescription benefits coverage expenditures. The bill also requires municipalities to submit information about the annual increase in health care costs to the Director of the Division of Local Government Services, and directs the Director to develop a form for municipalities to use for this purpose.

Committee Categories

Housing and Urban Affairs

Sponsors (2)

Last Action

Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee (on 10/27/2022)

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