Fiscal note assembly, No. 1235 state of new jersey 215th legislature




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FISCAL NOTE

ASSEMBLY, No. 1235

STATE OF NEW JERSEY

215th LEGISLATURE
DATED: AUGUST 15, 2013

SUMMARY



Synopsis:

Requires that public employees who are married, partners in civil union couples, or with domestic partners receive health care benefits from only one public employer.


Type of Impact:

Potential Savings: State General Fund; Local Government and School District Funds

Agencies Affected:

Department of the Treasury, Division of Pensions and Benefits; Local Governments and School Districts



Executive Estimate

Fiscal Impact

Year 1

Year 2

Year 3

State/Local Savings

Indeterminate - See comments below







  • The Office of Legislative Services (OLS) concurs with the estimate of the Executive Branch.

  • Provides that married couples, partners in a civil union, or domestic partners who are both public employees must receive health care benefits only on the basis of employee and dependent coverage through one public employer.

  • The potential savings that may result from the enactment of this bill to any one governmental entity or to all governmental entities in the aggregate cannot be estimated because there is no information available as to the number of public employees impacted, the coverage selected by those employees, and the annual premium for that coverage.



BILL DESCRIPTION
Assembly Bill No. 1235 of 2012 prohibits the enrollment of a public employee, after the date on which the bill if enacted takes effect, for health care benefits coverage provided by the employing public entity if the employee has, at that time, a spouse, partner in a civil union couple, or domestic partner who is also a public employee already enrolled for health care benefits coverage through a public entity and the employee can be enrolled as a dependent of the spouse, partner in a civil union couple or domestic partner. Thus, married couples, partners in civil union couples, or domestic partners who are both public employees will receive health care benefits only on the basis of employee and dependent coverage through one public employer.

Public employees enrolled for health care benefits coverage as of the effective date will have 24 months to change coverage to meet the bill’s requirement.



FISCAL ANALYSIS
EXECUTIVE BRANCH
The Division of Pensions and Benefits in the Department of the Treasury states that a fiscal estimate cannot be provided for this bill because the number of public employees who currently receive health care benefits coverage from multiple public employers is not known. A public employer may experience an annual expense reduction equivalent to the annual health care benefits premiums paid on behalf of a public employee no longer covered as a result of the enactment of this bill.

OFFICE OF LEGISLATIVE SERVICES\
The OLS concurs with the Executive Branch. The potential savings that may result from the enactment of this bill to any one governmental entity or to all governmental entities in the aggregate cannot be estimated because there is no information available as to number of public employees impacted, the coverage selected by those employees, and the annual premium for that coverage. The OLS notes that there may be an expense incurred by a public employer if as a result of this bill an employee of that employer seeks new coverage for the spouse or partner as a dependent.



Section:

State Government

Analyst:

Aggie Szilagyi

Section Chief

Approved:

David J. Rosen

Legislative Budget and Finance Officer

This fiscal note has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).












Office of Legislative Services

State House Annex

P.O. Box 068

Trenton, New Jersey 08625




Legislative Budget and Finance Office

Phone (609) 292-8030

Fax (609) 777-2442

www.njleg.state.nj.us





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