COLA for TSERS & CJRS.
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SB 408 — COLA for TSERS & CJRS.
Last action — Serial Referral To Rules, Calendar, and Operations of the House Stricken
No card. One bill, free forever — alerts when it moves.
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✓Introduced
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✓In Committee
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3Passed Senate
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4Passed House
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5To Executive
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6Enacted
This bill died with 2019-2020 Session. It reached “Passed Senate” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.
Bill Text
What changed in the latest version
275 added · 175 removedPlain-language change summary
The recent changes to Bill SB 408 focus on improving how retirement systems collect overpayments made to reemployed beneficiaries and gives the State Treasurer the ability to conduct criminal background checks. The bill also updates reporting requirements for employers regarding reemployed beneficiaries to ensure timely information is provided, helping to maintain accurate records. These adjustments are important as they aim to enhance the efficiency and integrity of the state's retirement and health benefits systems.
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2019 S 21 SENATE BILL 408 Pensions and Retirement and Aging Committee Substitute Adopted 5/1/19 Short Title:
Senators Krawiec, Hise, and Wells (Primary Sponsors).
Rules and Operations of the Senate April 1, 2019 A BILL TO BE ENTITLED AN ACT TO IMPROVE THE TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM'S AND THE LOCAL GOVERNMENTAL EMPLOYEES' RETIREMENT SYSTEM'S ABILITIES TO COLLECT REIMBURSEMENTS FOR OVERPAYMENTS MADE TO REEMPLOYED BENEFICIARIES, TO EXTEND THE LEGISLATIVE ENACTMENT IMPLEMENTATION ARRANGEMENTUNDER THE TEACHERS'AND STATE EMPLOYEES' RETIREMENT SYSTEM AND THE LOCAL GOVERNMENTAL EMPLOYEES' RETIREMENT SYSTEM, TO ALLOW THE STATE TREASURER TO PERFORM CRIMINAL BACKGROUND CHECKS, AND TO MAKE CHANGES RELATED TO THE NORTH CAROLINA STATE HEALTH PLAN.
Require the employer to reimburse the Retirement System for any retirement allowance paid to the beneficiary during a *S408-v-2**S408-v-1* General Assembly Of North Carolina Session 2019 period when the allowance would have been suspended under sub-subdivision c.
Require the employer to reimburse the Retirement System for any retirement allowance paid to the beneficiary during a Page 2 Senate Bill 408-Second408-First Edition General Assembly Of North Carolina Session 2019 period when the allowance would have been suspended under sub-subdivision c.
The purpose of the LEIA is to provide for timely administrative implementation of legislative provisions regarding the retirement of, or payment Senate Bill 408-Second408-First Edition Page 3 General Assembly Of North Carolina Session 2019 of retirement benefits to, public officers or public employees.
Page 4 Senate Bill 408-Second408-First Edition General Assembly Of North Carolina Session 2019 (c) Attachment and Garnishment.
Senate Bill 408-Second408-First Edition Page 5 General Assembly Of North Carolina Session 2019 SECTION 5.(a) G.S.
Anatural orlegallyadoptedchildororlegallyadoptedchildorchildrenoftheemployee,whether childrenoftheemployee,whether or not the child is living with the employee.
SECTION 6.6.(a) G.S.
G.S.135-48.37 reads as rewritten:
"§ 135-48.37.
Liability of third person;
right of subrogation;
right of first recovery.
(a) The Plan shall have the right of subrogation upon all of the Plan member's right to recover from a liable third party for payment made under the Plan, Notwithstanding any other provisions of law to the contrary, the Plan shall be subrogated to all Plan member rights of recovery, contractual or otherwise, including first-party underinsured or MedPay coverage or third-party insurance coverage, for all medical expenses, including provider, hospital, surgical, orprescription drug expenses, to the extent thosepayments are the recoveryis related to an injury caused by a liable third party.
A personal injury or wrongful death claim brought by a Plan member or a Plan member's representative or estate against a third party shall include a claim for all medical assistance payments for health care items or services furnished to the Plan member as a result of the injury.
Any personal injury or wrongful death claim brought by a Plan member or Plan member's representative or estate against a third party that does not include the Plan's claim shall be deemed to include the Plan's claim.
The Plan's claim shall be a lien upon any recovery that a Plan member or Plan member's representative or estate obtains.
(a1) The Plan member shall do nothing to prejudice these rights.
the Plan's rights under this section.
The Plan has the right to first recovery recovery over all nongovernmental medical Page 6 Senate Bill 408-First Edition General Assembly Of North Carolina Session 2019 liens and rights, on any amounts so recovered, recovered that are related to an injury caused by a liable third party regardless of (i) whether the nongovernmental medical liens and rights arose prior to or arise subsequent to the Plan's lien, (ii) whether the amount was recovered by the Plan or Plan, the Plan member, or the Plan member's representative or estate, and (iii) whether the amount was recovered by litigation, arbitration, mediation, settlement, or otherwise.
Notwithstanding any other provision of law to the contrary, the recovery limitation set forth in G.S.
28A-18-2 shall not apply to the Plan's right of subrogation of Plan members.
(b) If the Plan is precluded from exercising its right of subrogation, it may exercise its rights of recovery against any third party who was overpaid.
If the Plan recovers damages from a liable third party in excess of the claims paid, any excess will be paid to the member, less a proportionate share of the costs of collection.
(c) In the event a Plan member or a Plan member's representative or estate recovers any amounts from a liable third party to which the Plan is entitled under this section, the Plan may recover the amounts directly from the Plan member.
member, the Plan member's representative or estate, or the insurance company.
If, prior to the Plan exercising its rights under this section, a Plan member or the Plan member's representative or estate utilizes or otherwise disposes of any amounts that were recovered from a liable third party to which the Plan is entitled under this section, then the Plan may pursue alternative judicial remedies against the Plan member or Plan member's representative or estate to recover the amount to which the Plan is entitled, including the pursuit of a judgment and lien against real property.
(c1) The Plan has a lien, for not more than the value of claims paid related to the liability of the third party, on any damages subsequently recovered by a Plan member or a Plan member's representative or estate against any liable third party.
If the Plan member or Plan member's representative or estate fails to pursue the remedy against a liable third party, the Plan is subrogated to the rights of the Plan member and is entitled to enforce liability in the Plan's own name or in the name of the Plan member for the amount paid by the Plan.
(c2) Within 14 days of receipt of the proceeds of a settlement or judgment related to a claim under this section, the Plan member, the Plan member's representative or estate, or the insurance company shall notify the Plan of the receipt of proceeds.
(c3) Within 30 days of receipt of the proceeds of a settlement or judgment related to a claim under this section, the Plan member, the Plan member's representative or estate, or the insurance company shall distribute to the Plan an amount sufficient to fully satisfy the Plan's lien as required by this section.
If that amount is not distributed to the Plan member within 30 days, then the Plan mayrecover the amount directlyfrom the Plan member or the Plan member's estate or Plan member's representative through any remedy available to the Plan.
(d) In no event shall the Plan's lien exceed fifty percent (50%) of the total damages recovered by the Plan member, exclusive of the Plan member's reasonable and proportionate costs of collection as determined by the Plan in the Plan's sole discretion.
The decision by the Plan as to the reasonable cost and proportionate costs of collection is conclusive and is not a "final agency decision" for purposes of a contested case under Chapter 150B of the General Statutes.
Notice of the Plan's lien or right to recovery shall be presumed when a Plan member is represented by an attorney, and the attorney shall disburse proceeds pursuant to this section.
(e) The priority of any lien held by the State Health Plan for Teachers and State Employees shall be superior to all nongovernmental liens and rights, whether such liens and rights are prior or subsequent to the lien.
(f) Anyliens having priority over the Plan's right to first recoveryshall be deducted from the total damages recovered bythe Plan member or Plan member's representative or estate before satisfying the Plan's lien.
In no event shall other liens be deducted from the Plan's right to recovery under this section.
Show all 92 changed lines (52 more)
If insufficient funds remain to fully satisfy the Plan's lien after deducting the Plan member's or the Plan member's representative's or estate's costs of collection and any priority liens from the total damages recovered, then the Plan shall be entitled to receive Senate Bill 408-First Edition Page 7 General Assembly Of North Carolina Session 2019 the remaining balance of the total damages recovered by the Plan member or Plan member's representative or estate." SECTION 6.(b) 44-49(a) reads as rewritten:
"(a) From and after March 26, 1935, there is hereby created a lien upon any sums recovered as damages for personal injury in any civil action in this State.
This lien is in favor of any person, corporation, State entity, municipal corporation or county to whom the person so recovering, or the person in whose behalf the recovery has been made, may be indebted for any drugs, medical supplies, ambulance services, services rendered by any physician, dentist, nurse, or hospital, or hospital attention or services rendered in connection with the injury in compensation for which the damages have been recovered.
Where damages are recovered for and in behalf of minors or persons non compos mentis, the liens shall attach to the sum recovered as fully as if the person were sui juris.
The priority of a lien held by the State Health Plan for Teachers and State Employees shall be superior to all nongovernmental medical liens and rights, whether such those medical liens and rights are prior or subsequent to the lien." SECTION 6.(c) G.S.
44-50 reads as rewritten:
"§ 44-50.
Receiving person charged with duty of retaining funds for purpose stated;
evidence;
attorney's fees;
charges.
A lien as provided under G.S.
44-49 shall also attach upon all funds paid to any person in compensation for or settlement of the injuries, whether in litigation or otherwise.
If an attorney represents the injured person, the lien is perfected as provided under G.S.
44-49.
Before their disbursement, any person that receives those funds shall retain out of any recovery or any compensation so received a sufficient amount to pay the just and bona fide claims for any drugs, medical supplies, ambulance services, services rendered by any physician, dentist, nurse, or hospital, or hospital attention or services, after having received notice of those claims.
Evidence as to the amount of the charges shall be competent in the trial of the action.
Subject to G.S.
135-48.37, the priority of a lien held by the State Health Plan for Teachers and State Employees shall be superior to all nongovernmental medical liens and rights, whether such those medical liens and rights are prior or subsequent to the lien.
Nothing in this section or in G.S.
44-49 shall be construed so as to interfere with any amount due for attorney's services.
The lien provided for shall in no case, exclusive of attorneys' fees, exceed fifty percent (50%) of the amount of damages recovered.
Except as provided in G.S.
44-51, a client's instructions for the disbursement of settlement or judgment proceeds are not binding on the disbursing attorney to the extent that the instructions conflict with the requirements of this Article." SECTION 6.(d) This section is effective when it becomes law and applies to claims brought by Plan members or Plan members' representatives or estates on or after that date, as well as liens arising on or after that date.
SECTION 7.(a) G.S.
Any rights granted under this Articlerelatingto the hire dateassociatedwith the withdrawncontributions shall bevoid abinitio as a matter of law." SECTION 7.8.
"(a) The Board of Trustees must approve all Plan contracts in excess of five hundred thousand dollars ($500,000), one million dollars ($1,000,000) including contracts with an initial cost of less than five hundred thousand dollars ($500,000), one million dollars ($1,000,000), but that may exceed five hundred thousand dollars ($500,000) one million dollars ($1,000,000) during the term of the contract." SECTION 8.(a)9. G.S.
G.S.
Page 8 Senate Bill 408-First Edition General Assembly Of North Carolina Session 2019 (a) The State Treasurer, in consultation with the Board of Trustees, may adopt rules to implement this Article.
TheStateTreasurer shall provideto all employingunits,employing units, all healthbenefit representatives, all relevant health care providers affected by a rule, and to any other persons Page 6 Senate Bill 408-Second Edition General Assembly Of North Carolina Session 2019 requesting a written description and approved by the State Treasurer written notice and an opportunity to comment not later than 30 days prior to adopting, amending, or rescinding a rule, unless immediate adoption of the rule without notice is necessary in order to fully effectuate the purpose of the rule.
This subsection applies, but is not limited in its application, to contested cases brought by employees, retired employees, dependents of employees, and dependents of retired employees under Article 3 of Chapter 150B of the General Statutes regarding (i) an eligibility, premium credit, or other enrollment-related determination made by the Plan or (ii) the administration of Plan benefit offerings and exclusions." SECTION 8.(b)9.(b) This section is effective when it becomes law and applies to rules adopted on or after that date and contested cases brought on or after that date.
SECTION 9.(a)10.(a) G.S.
SECTION 9.(b)10.(b) G.S.
(a) If, after exhaustion of internal appeal handling as outlined in the contract with the Claims Processor any person is aggrieved, the Claims Processor shall bring the matter to the attention oftheExecutiveAdministrator andandBoard Board ofTrustees, which whoshall promptlydecide whether the subject matter of the appeal is a determination subject to external review under Part 4 of Article 50 of Chapter 58 of the General Statutes.
The Senate Bill 408-First Edition Page 9 General Assembly Of North Carolina Session 2019 person contesting the decision may proceed with external review pending a decision in the contested case under Chapter 150B of the General Statutes.
(b) The State Treasurer, in consultation with the Board of Trustees, shall adopt and implement utilization review and internal grievance procedures that are substantially equivalent Senate Bill 408-Second Edition Page 7 General Assembly Of North Carolina Session 2019 to those required under G.S.
As used in this section, "determination" is a decision by the State Treasurer, or the Plan's designated utilization review organization administrated by or under contract with the Plan that an admission, availability of care, continued stay, or other health care service has been reviewed and, based upon information provided, does not meet the Plan's benefit offerings or requirements for medical necessity, appropriateness, health care setting, or level of care or effectiveness, and the requested service is therefore denied, reduced, or terminated." SECTION 9.(c)10.(c) G.S.
…." SECTION 9.(d)10.(d) This section is effective when it becomes law and applies to administrative reviews and appeals requested or filed on or after that date.
SECTION 10.(a)11.(a) G.S.
(a) The State of North Carolina undertakes to make available a State Health Plan (hereinafter called the "Plan") exclusively for the benefit of eligible employees, eligible retired employees, and certain of their eligible dependents, whichwhichthat that will pay benefits in accordance with the terms of this Article.
The State Treasurer may also operate a flexible compensation plan for eligible retired employees, and certain of their eligible dependents, including dental and vision health benefit offerings paid for at full contribution by retired employees." SECTION 10.(b)11.(b) G.S.
– Data fields within a Claims Data Feed that reflect the or from which can be derived the provider and the amount the provider billed for services provided to a Plan member, the allowed amount applied to the claim by the Claims Processor, and the amount paid by the Plan on the claim.
claim, and if applicable, the rate negotiated with or agreed to by the provider,provider. if solely the State Health Plan.
The term "Claim Payment Data" includes any document, material, or other work, whether tangible or electronic, that is derived from, is based on, or reflects any of the foregoing data fields or Page 10 Senate Bill 408-First Edition General Assembly Of North Carolina Session 2019 information contained therein.
66-152(3)." Page 8 Senate Bill 408-Second Edition General Assembly Of North Carolina Session 2019 SECTION 10.(c)11.(c) G.S.
(b1) The Claims Processor is not required to disclose Claim Payment Data that reflects rates negotiated with or agreed to by a noncontracted third party but, upon request, shall provide to the Plan sufficient documentation to support the payment of claims for which Claim Payment Data is withheld on such basis.basis.provider.
(c) Anyprovision of anycontract between a Claims Processor and a health care provider, subcontractor, or third party that would prevent or prohibit the Claims Processor from disclosing Claim Payment Datato thePlan,in accordancewith this section,section,shall shall bevoid andunenforceable, but only to the extent the provision prevents and prohibits disclosure to the Plan.
The Plan must obtain the agreement of provide notice to the Claims Processor for each third party to whom the Plan seeks to disclose Claim Payment Data and for each use the third party will make of the data.
(g) A Claims Processor who discloses Claim Payment Data in accordance with this section shall not incur any civil liability and shall not be subject to equitable relief in connection for the disclosure.disclosure." SECTION 12.
(h) The restrictions in subsections (b1), (d), (e), and (f) of this section shall not apply to any Claim Payment Data that reflects or is based on rates, fee schedules, or reimbursement methodologies that are supplied to a Claims Processor by the Plan or used by a Claims Processor exclusively for claims submitted under the North Carolina State Health Plan Network Contract." SECTION 11.
SECTION 12.13.
Senate Bill 408-Second408-First Edition Page 911
Show all 92 changed rows (52 more)
Action History
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Serial Referral To Rules, Calendar, and Operations of the House Stricken
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Serial Referral To Appropriations Added
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Serial Referral To Rules, Calendar, and Operations of the House Added
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Reptd Fav Com Substitute
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Re-ref Com On Appropriations
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Withdrawn From Com
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Re-ref to the Com on Pensions and Retirement, if favorable, Rules, Calendar, and Operations of the House
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Passed 1st Reading
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Ref To Com On Rules, Calendar, and Operations of the House
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Regular Message Sent To House
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Regular Message Received From Senate
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Passed 2nd Reading
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Passed 3rd Reading
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Reptd Fav
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Reptd Fav Com Substitute
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Com Substitute Adopted
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Re-ref Com On Rules and Operations of the Senate
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Withdrawn From Com
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Re-ref to Pensions and Retirement and Aging. If fav, re-ref to Rules and Operations of the Senate
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Passed 1st Reading
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Ref To Com On Rules and Operations of the Senate
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Filed
Sponsors
- D. Davis · Cosponsor
- Krawiec · Primary
- Ralph Hise · Primary
- Wells · Cosponsor
Sponsorship breakdown
Export CSV (upgrade) →2 sponsors · 2 co-sponsors · 175 not signed on · 7 voted No
Sponsors (2)
- Krawiec
- Ralph Hise Republican
Co-sponsors (2)
- D. Davis
- Wells
Not signed on (175)
175 members have not signed on to this bill.
Show all 175 →"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.
Votes
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Democratic | 1 | 7 | 0 | 0 |
| Unaffiliated | 17 | 10 | 0 | 2 |
| Republican | 13 | 0 | 0 | 0 |
| Total | 31 | 17 | 0 | 2 |
| % of votes cast | 62% | 34% | 0% | 4% |
How each member voted (50)
| Member | Party | Vote |
|---|---|---|
| VanDuyn | — | Yea |
| Ballard | — | Yea |
| Brown | — | Yea |
| J. Davis | — | Yea |
| Edwards | — | Yea |
| Gallimore | — | Yea |
| Gunn | — | Yea |
| Harrington | — | Yea |
| Horner | — | Yea |
| Johnson | — | Yea |
| Krawiec | — | Yea |
| Newton | — | Yea |
| Perry | — | Yea |
| Steinburg | — | Yea |
| Tillman | — | Yea |
| Wells | — | Yea |
| deViere | — | Nay |
| Fitch | — | Nay |
| Foushee | — | Nay |
| Marcus | — | Nay |
| McKissick | — | Nay |
| Nickel | — | Nay |
| Peterson | — | Nay |
| Searcy | — | Nay |
| Smith | — | Nay |
| Woodard | — | Nay |
| Bishop | — | Not Voting |
| D. Davis | — | Yea |
| J. Jackson | — | Not Voting |
| Dan Blue | Democratic | Nay |
| Gladys A. Robinson | Democratic | Nay |
| Jay J. Chaudhuri | Democratic | Yea |
| Joyce Waddell | Democratic | Nay |
| Michael Garrett | Democratic | Nay |
| Mujtaba A. Mohammed | Democratic | Nay |
| Paul A. Lowe, Jr. | Democratic | Nay |
| Tracy Clark | Democratic | Nay |
| Bill Rabon | Republican | Yea |
| Brent Jackson | Republican | Yea |
| Carl Ford | Republican | Yea |
| Danny Earl Britt, Jr. | Republican | Yea |
| Jim Burgin | Republican | Yea |
| Norman W. Sanderson | Republican | Yea |
| Phil Berger | Republican | Yea |
| Ralph Hise | Republican | Yea |
| Tom McInnis | Republican | Yea |
| Vickie Sawyer | Republican | Yea |
| W. Ted Alexander | Republican | Yea |
| W. Ted Alexander | Republican | Yea |
| Warren Daniel | Republican | Yea |
Subjects
Frequently asked questions
- Who sponsors SB 408?
- SB 408 is sponsored by D. Davis, Krawiec, Ralph Hise (Republican), and Wells.
- What is the current status of SB 408?
- This bill died with 2019-2020 Session. It reached “Passed Senate” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
- Where can I track SB 408?
- Track SB 408 free on One Click Politics — get push/email alerts when it moves.
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