AN ACT to authorize counties to provide health insurance benefits to former employees who are not receiving retirement benefits.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 153A‑93(d) reads as rewritten:
"(d)	A county which is providing health insurance under G.S. 153A‑92(d) may provide health insurance for all or any class of former officers and employees of the county. Such health insurance may be paid entirely by the county, partly by the county and former officer or employee, or entirely by the former officer or employee, at the option of the county."
SECTION 2.  G.S. 153A‑93 is amended by adding two new subsections to read:
"(d1)	On and after October 1, 2009, a county which is providing health insurance under G.S. 153A‑92(d) may provide health insurance for all or any class of former officers and employees of the county who have obtained at least 10 years of service with the county prior to separation from the county and who are not receiving benefits under subsection (a) of this section. Such health insurance may be paid entirely by the county, partly by the county and former officer or employee, or entirely by the former officer or employee, at the option of the county.
(d2)	Notwithstanding subsection (d) of this section, any county that has elected to and is covering its active employees only, or its active and retired employees, under the State Health Plan, or elects such coverage under the Plan, may not provide health insurance through the State Health Plan to all or any class of former officers and employees who are not receiving benefits under subsection (a) of this section. The county may, however, provide health insurance to such former officers and employees by any other means authorized by G.S. 153A‑92(d). The health insurance premium may be paid entirely by the county, partly by the county and former officer or employee, or entirely by the former officer or employee, at the option of the county."
SECTION 3.  Section 1 of this act is effective when it becomes law and applies to any county providing health insurance to former officers and employees on that date. Section 2 of this act becomes effective when it becomes law and applies to any officer or employee who separates from service with the county on or after October 1, 2009. The remainder of the act is effective when it becomes law.
In the General Assembly read three times and ratified this the 7th day of August, 2009.

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		 Marc Basnight
	 President Pro Tempore of the Senate

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		 Joe Hackney
	 Speaker of the House of Representatives

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		 Beverly E. Perdue
	 Governor

Approved __________.m. this ______________ day of ___________________, 2009