A BILL TO BE ENTITLED
AN ACT TO ESTABLISH THE REQUIREMENTS FOR LOCAL GOVERNMENT PARTICIPATION IN THE STATE HEALTH PLAN FOR TEACHERS AND STATE EMPLOYEES.
The General Assembly of North Carolina enacts:
SECTION 1.  Article 3 of Chapter 135 of the General Statutes is amended by adding the following new Part to read:
"Part 6. Local Government Participation.
"§ 135‑43. Requirements for local government participation in the State Health Plan.
(a)	Purpose. – The State of North Carolina deems it to be in the public interest for employees of an employer, as defined for local government employers by G.S. 128‑21(11), to be given the opportunity to participate in the benefits provided by the State Health Plan for Teachers and State Employees. Participation shall be voluntary for local government employers.
(b)	Authorization to Enroll. – A local government employer, as defined in G.S. 128‑21(11), may elect to enroll its active employees only or to enroll its active employees and its retired employees in the State Health Plan in accordance with this Part. In order to enroll its active or its active and retired employees in the State Health Plan, a local government employer must: 
(1)	By resolution, legally adopted by the local government employer, elect to have its eligible active employees only or its eligible active employees and its eligible retired employees, at the employer's option, become eligible to participate in the Plan. 
(2)	Enroll all of its eligible active employees and, if the employer elects to also enroll its eligible retired employees, it must enroll all of its eligible retired employees.
(3)	Enroll the eligible dependents of its active employees and eligible dependents of its retired employees, as applicable.
(c)	Eligibility. – A local government shall establish eligibility for participation in the Plan by its active employees based on the employee's years of service as a local government employee and may set rates of contribution to be made by eligible local government employees to the premium paid by the local government to the Plan. The local government may set contribution rates on a noncontributory, partially contributory, or fully contributory basis.
(d)	Premiums and Contributions. – In the amounts established by the Executive Administrator and Board of Trustees:
(1)	A local government employer shall pay to the State Health Plan premiums for its enrolled active employees. 
(2)	If a local government employer elects to also enroll its eligible retired employees in the Plan, then:
a.	The local government employer shall make a contribution to the Local Government Employees' Retirement System equal to the contribution required of all other employing units to the State Retirement Systems for covering the local government's eligible retired employees. If the local government employer does not participate in the Local Government Employees' Retirement System and has another formally established retirement plan, the local government employer shall remit to the State Health Plan for Teachers and State Employees the amount of the premium requested by the Executive Administrator and Board of Trustees for coverage of the local government employer's eligible retired employees and their eligible family members.
b.	Should a local government employer for any reason become financially unable to make the contributions payable on account of its eligible retired employees, the local government employer shall be deemed to be in temporary default. Temporary default shall not relieve the local government employer from any liability for its contributions payable on account of its eligible retired employees.
(e)	General Requirements. – In addition to other requirements of this section, local government employers are subject to the following: 
(1)	A local government employer must require its enrolled active and enrolled retired employees and the eligible dependents of enrolled active employees and of enrolled retired employees to participate in disease management, case management, and all other mandatory and voluntary cost containment measures implemented by the Executive Administrator and Board of Trustees.
(2)	A local government employer may elect to discontinue its participation in the Plan. If a local government employer elects to discontinue its participation in the Plan, the local government employer is not eligible to reenroll its eligible active employees or its eligible active employees and eligible retired employees, and their eligible dependents, until ten years have elapsed from the date of the local government's discontinuance of its participation.
(3)	A local government seeking to become an authorized employing unit under the Plan through an act of the General Assembly, or as authorized under Section 5 of S.L. 2005‑249, must, prior to introduction of the legislation, provide the Plan with the following information:
a.	Data necessary to assess current and prior claims experience for the most recent 24-month period for all previously and currently offered plans.
b.	The most recent 24 months of enrollment data by category and coverage category for all previously or currently offered plans.
c.	A copy of current and previous plan designs for all plans offered within the two prior plan years.
d.	The current employer contribution amount and subscriber contribution amount for coverage by plan and coverage category. Contribution amount should reflect amounts for subscriber coverage and dependent coverage.
e.	A current census of all eligible active employees and dependents of active employees covered by current plans offered including a separate census for employees who have waived coverage by plan.
f.	A current census of all eligible retired employees and dependents of retired employees covered by current plans offered including a separate census for retired employees who have waived coverage by plan.
In addition to the requirements of this subsection, the Executive Administrator may  require a local government to submit other reasonable and necessary information to enable the Executive Administrator to project any potential actuarial impact to the Plan. As required by Article 15 of Chapter 120 of the General Statues, the Executive Administrator shall provide to the Fiscal Research Division of the Legislative Services Office of the North Carolina General Assembly a copy of the information required under this section."
SECTION 2.  Those local government employers that have applied for participation in the Plan as of July 1, 2008, may be enrolled in the Plan either through selection by the Executive Administrator and Board of Trustees, as provided by law, or by an act of the 2007 General Assembly, 2008 Regular Session, and those local governments may apply local eligibility requirements for enrollment in the Plan.  No other local government employers may enroll their employees or retirees in the Plan during the period July 1, 2008, through December 31, 2008.  Effective January 1, 2009, local governments may apply to participate in the Plan and their active and retired employees must meet the eligibility requirements for Plan participation that apply to active and retired State employees.
SECTION 3.  This act is effective when it becomes law.