Bill
Bill > A1561
NJ A1561
NJ A1561Requires 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
01/09/2024
01/09/2024
In Committee
01/09/2024
01/09/2024
Crossed Over
Passed
Dead
01/12/2026
01/12/2026
Introduced Session
2024-2025 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 if a municipality is required to increase its expenditures for employee health care and prescription benefits coverage, the State will increase the municipality's annual aid under the "Energy Tax Receipts Property Tax Relief Act" by an equivalent amount to offset the increase. This applies whether the benefits are provided through self-insurance, commercial insurance, the State Health Benefits Program, or any other means. The municipality must submit information about the increase to the Department of Community Affairs, which will develop a form for this purpose. The bill also specifies that the exclusion of certain health care costs from the property tax levy calculation would not apply to municipalities receiving the increased energy tax receipts aid.
Committee Categories
Government Affairs
Sponsors (3)
Last Action
Introduced, Referred to Assembly State and Local Government Committee (on 01/09/2024)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2024/A1561 |
| BillText | https://pub.njleg.gov/Bills/2024/A2000/1561_I1.HTM |
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