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A 5039

Requires the state to provide reimbursement of certain costs and benefits incurred as a result of an injury occurring during a mutual aid call

2025 Regular Session Introduced by Marianne Buttenschon and 8 co-sponsors

Requires State DPB to pre- and post-transfer reports on SHBP funds, monthly cash, claims, and premiums to SHBC and the Treasurer to safeguard timely local coverage.

REFERRED TO LABOR
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Bill Summary · A 5039

Summary — A5039

Title: Requires the State to provide reimbursement of certain costs and benefits incurred as a result of an injury occurring during a mutual aid call (A5039)
Status (most recent): REFERRED TO LABOR (as of 2025-02-11). Introduced: 2024-10-28.

Note: The bill amends provisions enacted in P.L.2024, c.86 that permit temporary transfers between the State and local parts of the State Health Benefits Program (SHBP). The Senate amended the bill on 2/20/2025 to incorporate the Governor’s recommendations.

Purpose

To increase transparency and oversight around temporary fund transfers between the State part and the local parts of the State Health Benefits Program (SHBP) by requiring the Division of Pensions and Benefits (DPB) to provide specific pre-transfer and ongoing financial reports to the State Health Benefits Commission (SHBC) and to the State Treasurer.

Key provisions

  • Pre-transfer reporting: Requires DPB to report to the SHBC the claims payable, available fund balance, and anticipated premiums for the local part(s) of SHBP prior to initiating a transfer from the State part to a local fund.
  • Monthly reporting to SHBC: Beginning 30 days after the bill’s effective date, DPB must provide monthly reports to the SHBC on funds available in both the State and local parts of SHBP, including:
    • cash balances,
    • claims costs incurred,
    • premiums collected.
  • Governor-recommended amendments (incorporated by Senate amendment):
    • DPB must notify the State Treasurer and the SHBC on the 15th of each month in which a transfer is made or anticipated.
    • DPB must provide the State Treasurer a monthly accounting of transfers initiated in the prior 30 days, outstanding transfer balances, any repayments received, and the current balance of local health benefits funds.

What this changes / impact

  • Adds procedural and transparency requirements around transfers authorized by P.L.2024, c.86 (which let DPB temporarily shift available State SHBP funds to local SHBP funds when local cash falls below the level needed to cover 10 days of anticipated payments).
  • Affects DPB (reporting duties), the SHBC and State Treasurer (recipients of reports), local employers and employees covered by the local SHBP funds (whose coverage depends on timely payments), and potentially the State budgeting process (more visibility into intra-program cash movements).
  • Intended to balance accountability with the need for timely transfers to avoid interruption of health coverage.

Fiscal note

  • Committee statement: not certified as requiring a fiscal note.

Legislative history (selected)

  • Introduced in Assembly: 10/28/2024.
  • Passed both houses (versions and votes recorded Dec 2024–Feb 2025); Senate amended 2/20/2025 to adopt Governor’s recommended changes.
  • Referred to Labor: 02/11/2025; Assembly passage recorded 02/27/2025 (65-6-2).

Context / rationale

P.L.2024, c.86 allows temporary transfers to prevent mid-year premium increases or interruptions in health coverage when local SHBP funds cannot meet near-term obligations. Sponsors and committees seek greater pre-transfer and ongoing reporting so the SHBC and Treasurer can monitor cash levels, claims exposure, and premium receipts while preserving the ability to act quickly to protect benefits. The Governor supported transparency but recommended amendments to avoid slowing urgently needed transfers.

Compiled from official sources — confirm details with the bill’s official record.

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