Bill Summaries: S782 (2015-2016 Session)

  • Summary date: Apr 27 2016 - View summary

    Identical to H 966, filed 4/26/16.

    Amends GS 58-31-60, concerning the selection of supplemental insurance products by employee insurance committees (committee) to require such committees to competitively select products at least every three years. Also requires the committees to ensure that selected vendors comply with terms and conditions of previously established contracts. Adds the definition for agency in order to update language and also corrects obsolete references to "employee payroll unit."  Further amends the administration and organization of the committees, adding specific language that the committees must fairly represent the geographical distribution and other characteristics of the workforce of the agency (previously, only stated that must fairly represent the workforce). Also expands existing language to clarify that it is a fiduciary duty of the agency head to appoint members to such committees that are capable of carrying out the duties in a thorough and diligent manner. Requires that committees meet at least quarterly to carry out their duties. Caps the assignment of a payroll deduction slot at three years. Makes organizational changes to the specific selection process for choosing insurance products. Also adds new requirements as part of that process, requiring committees to utilize the Department of Administration's electronic Interactive Purchasing System or similar to ensure adequate notice and competition. Also adds a requirement that committee members must affirmatively attest to having no association with any agent or insurer offering such insurance product for consideration.  Without such an attestation, members must recuse themselves from further product selection. Attestations or recusals must be recorded in the minutes of the Committee. Also adds an annual reporting requirement for committees to the Office of State Human Resources and specifies what is required in the report.

    Effective July 1, 2016, applying to the appointment or reappointment and operation of the committees on or after that date.