A BILL TO BE ENTITLED
AN ACT TO CREATE THE STATE HEALTH PLAN CONTINGENCY account in the office of state budget and management AND TO PROVIDE FOR CONTINGENT APPROPRIATIONS AND ALLOCATIONS FROM THE SAVINGS reserve account TO THE CONTINGENCY account TO MEET CLAIMS PAYMENT OBLIGATIONS OF THE NORTH CAROLINA STATE HEALTH PLAN FOR TEACHERS AND STATE EMPLOYEES FOR THE 2008‑2009 FISCAL YEAR. 
The General Assembly of North Carolina enacts:
SECTION 1.  Purpose. – The purpose of this act is to provide funds from the Savings Reserve Account in an amount sufficient to meet the claims payment obligations of the North Carolina State Health Plan for Teachers and State Employees ("Plan") in the 2008‑2009 fiscal year. It is the intent of the General Assembly that measures taken in this act to address the shortfall in funds to pay State Health Plan claims are temporary and that the Savings Reserve Account shall be reimbursed, as soon as practicable, in the amount of funds appropriated from the Savings Reserve Account as authorized in this act. 
SECTION 2.(a)  State Health Plan Contingency Account. – There is established in the Office of State Budget and Management the State Health Plan Contingency Account. Funds in the State Health Plan Contingency Account shall be from the Savings Reserve Account, shall not exceed one hundred million dollars ($100,000,000) for the 2008‑2009 fiscal year, and shall be allocated only in the amounts and for the purposes authorized in this act.  At no time shall funds in the Contingency Account exceed the amount necessary to meet claims payment obligations for the period for which the request for payment is made by the Executive Administrator.
SECTION 2.(b)  Contingent Appropriations and Allocations From Savings Reserve Account. – Upon receipt of a request from the Executive Administrator for funds to meet the Plan's claims payment obligations for the current period, the amount needed for this purpose is appropriated from the Savings Reserve Account to the State Health Plan Contingency Account. The Office of State Budget and Management shall transfer these funds from the Contingency Account to the State Health Plan after the Executive Administrator has reported the facts to the Executive Committee of the Committee on Hospital and Medical Benefits supporting the amount of the funds requested for claims payment due at the time of the request.  If, at the end of the 2008‑2009 fiscal year, there is an unobligated balance remaining in the State Health Plan Contingency Account, those funds shall revert to the Savings Reserve Account.  
SECTION 2.(c)  Legislative Oversight. – Upon determining that additional funds are needed to meet the Plan's immediately pending claims payment obligations, the Plan's Executive Administrator shall present to the Executive Committee of the Committee on Employee Hospital and Medical Benefits the facts supporting the Executive Administrator's request for funds.  Only after providing this information to the Executive Committee may the Office of State Budget and Management transfer the funds from the State Health Plan Contingency Account to the Plan and in the amount necessary to pay immediately pending claims.  The Executive Committee shall inform the Office of State Budget upon the Committee's receipt of the information required from the Executive Administrator under this act. 
SECTION 2.(d)  Reporting. – Beginning September 1, 2008, and quarterly thereafter, the Executive Administrator shall report to the House of Representatives and the Senate Appropriations Committees, the Joint Legislative Commission on Governmental Operations, and to the Committee on Hospital and Medical Benefits on the financial status of the Plan.  The Executive Administrator shall develop a plan for ensuring the fiscal viability of the Plan and limiting to the extent possible, the impact on Plan benefits.  
SECTION 2.(e)  Information. – The Committee on Hospital and Medical Benefits shall meet regularly with Plan member organizations to keep them apprised of the financial status of the Plan and actions being considered or recommended to ensure future financial stability of the Plan as well as minimizing any adverse impact on Plan benefits.  The Committee on Hospital and Medical Benefits shall keep the House of Representatives and the Senate appropriations committees apprised of its activities to keep Plan member organizations informed.
SECTION 2.(f)  Funds for Authorized Purposes Only. – At no time shall the funds made available under this section be used for purposes other than those authorized by this section.
SECTION 3.  Effective Date. – This act is effective when it becomes law.