I. State Issues
a. Update on Proposed SHBP Rate Increases
This past week, the Division of Pension and Benefits posted a Frequently Asked Questions piece on the State Health Benefits Program (SHPB) and the Rate Renewal Reports for the Local Government Plan, Local Education Plan, and State Employee Plan.
Adoption of the rate renewal was originally scheduled for a July 25 meeting of the State Health Benefits Commission (SHBC), however, it was removed from the agenda and a new date has not yet been announced.
In response to the proposed 22.8% increase for the Local Government Plan, 18.6% for the State Government Plan, and 12.9% for the Local Education Plan, Senate President Scutari and Senators Sarlo and Ruiz called upon the State Treasurer to “use her authority to block the planned approval and make sure a full accounting of the finances of the two health benefits plans is made public and fully discussed.” Senate Republican Leader Oroho, Senator O'Scanlon, and Assembly Republican Leader DiMaio and Assemblyman Wirths called for a formation of a special legislative committee to investigate the increases. Assembly Speaker Coughlin, Assemblyman Greenwald, and Assemblywoman Pintor-Marin sent a letter to the SHBP expressing their concern with the proposed increases and “requesting that data be provided that includes a full actuarial accounting of the basis from the premium increases.” In addition, Senator Ruiz announced that she is drafting legislation to expand the membership of SHBC.
At the request of several municipalities, we have prepared a sample resolution opposing the proposed increases to the State Health Benefits Program and calling for the SHBC membership to include representatives from both local and county government.
The League, the New Jersey Association of Counties, and the New Jersey Municipal Managers Association are urging municipalities and counties to remain in contact with the Governor’s Office and their respective legislative delegations on the topic. Thank you, as always, for your time and consideration, and we’ll make sure to keep you posted on any new developments.
Contact: Lori Buckelew, Deputy Executive Director & Director of Government Affairs, lbuckelew@njlm.org, 609-695-3481, x112.
b. Lawsuit Challenging Law Expanding Property Tax Exemption to Hospitals and Other Facilities Dismissed
Last week, a judge dismissed a lawsuit brought by a number of municipalities challenging P.L.2021, c.17. The recently adopted law allows nonprofit hospitals hosting for-profit providers and acting identically to their for-profit hospital counterparts to nonetheless maintain their tax-exempt status. The law also extends tax-exempt status to hospital-owned “satellite emergency care” (SEC) facilities. Instead of being subject to property taxes, the hospitals and SEC facilities are required to pay a much lower “annual community service contribution” (ACSC).
Municipalities hosting nonprofit hospitals challenged P.L.2021, c.17, arguing that the law is facially unconstitutional. The two main contentions being that P.L.2021, c.17; (1) violates the Uniformity Clause of the New Jersey Constitution, and (2) violates the Exemption Clause of the New Jersey Constitution.
The court denied the facial challenge, finding an arguable basis for constitutionality, but left open an as-applied constitutional challenge based upon application of the law to the facts of a particular hospital. This ruling could mean additional litigation for host municipalities as they begin to review the operations and practices of nonprofit hospitals in their communities to ensure they comply with the requirements of P.L.2021, c.17. Failure to comply would jeopardize the tax-exempt status for all or a portion of the hospital property.
Contact: Frank Marshall, Esq., Associate General Counsel, fmarshall@njlm.org, 609-695-3481, x137.
c. National Opioid Settlement Participant Reminder: Upload Payment Information
As a reminder, first payment to participating municipalities from the National Opioid Settlement are ready to be sent. To receive payment, participating municipalities must upload payment instructions to the national portal. Without uploading payment instructions, the Directing Administrator cannot make payment.
For those with questions, Directing Administrator, BrownGreer PLC, has set up a communications center with a team of case managers who will work with local governments receiving money. The communications center can be reached at DirectingAdministrator@nationalOpioidSettlement.com or 888-441-2010. Additional information can also be found in the notice your municipality received from the New Jersey Attorney General’s office regarding the next steps to receive the first settlement payment.
Contact: Frank Marshall, Esq., Associate General Counsel, fmarshall@njlm.org, 609-695-3481, x137.
d. Acting State Comptroller Issues Report on Government Records Council
On Tuesday Acting State Comptroller Kevin Walsh issued a report on whether or not the Government Records Council (GRC) has decided public records complaints as expeditiously as possible and examining the cause of the GRC’s backlog of denial of access complaints. The Office of the State Comptroller (OSC) reviewed the status of all complaints received from July 1, 2011, through December 31, 2021, and attended several GRC meetings. While noting the limited staff and staffing structure, the OSC compared the GRC process to the Judicial process and found that on average the GRC takes 21 months to adjudicate complaints, three times longer than Judiciary. The report recommends hiring additional staff, specifically attorneys, to exclusively handle complaints; adopting a process that permits GRC to conduct its own fact-finding using staff attorneys as hearing officers; and establishing a rule regarding what GRC considers expeditious and should advise the public on its website if it is meeting that standard and, if not, how long it is taking to adjudicate complaints.
Contact: Lori Buckelew, Deputy Executive Director & Director of Government Affairs, lbuckelew@njlm.org, 609-695-3481, x112.
e. State Launches Naloxone Distribution Program
The New Jersey Department of Human Services (DHS) has announced a Naloxone Distribution Program in partnership with the Department of Health and the Office of the Attorney General. The program allows eligible agencies the opportunity to request direct shipments of naloxone online anytime they need it.
The distribution program allows for agencies, including law enforcement, first responders, and certain community organizations, to register through a new website and easily request direct shipments of naloxone at no charge. Once approved, naloxone will be shipped on-demand directly from the manufacturer to minimize delay and maximize shelf life.
The program supports a new state law that authorizes a recipient in possession of an opioid antidote to distribute the antidote, without fee, to any person at risk of experiencing an overdose or who may be in the best position to administer an opioid antidote. This is to make opioid antidotes as easily accessible and widely available as possible. The law also requires first responders to leave behind naloxone with individuals in certain circumstances when responding to an overdose. The naloxone is paid for through federal State Opioid Response dollars.
Eligible agencies who can apply to the program include:
First responder agencies such as law enforcement, fire, and emergency medical services;
Harm reduction agencies;
Division of Mental Health and Addiction Services (DMHAS)-contracted community peer recovery centers;
County prosecutors’ offices;
DMHAS-contracted family support centers;
Libraries;
Mobile outreach providers;
Opioid treatment programs;
Re-entry programs;
DMHAS-contracted treatment programs; and
Shelters.
Interested agencies who meet eligibility requirements must register for the Naloxone Distribution Program. Once registration is completed, registered agencies will be able to login to the Naloxone Distribution Portal and submit requests for naloxone as needed.
We encourage you to share this information with potential applicants in your municipality. Please email Naloxone@dhs.nj.gov with any questions.
Contact: Paul Penna, Senior Legislative Analyst, ppenna@njlm.org, 609-695-3481, x110.
f. Governor Signs Legislation on Poll Workers, Ballots, and Voters
On Thursday, Governor Murphy signed several election administration bills into law, including:
A-1969/S-138: Allows minors to serve as election workers between 5:30 a.m. and 9:00 p.m. on election days. The League supports this legislation as it attempts to reduce the shortage of available Election Poll workers by expanding the eligible pool of applicants.
A-3817/S-2863: Requires ballot privacy sleeves at polling place; makes various changes to early and mail-in voting procedures; creates online form to update name and residence on existing voter registration record.
A-3819/S-2868: Specifies circumstances when voters will be removed from permanent vote-by-mail status and when ballots will be sent to primary address; requires educational campaign; makes appropriation of $5 million.
A-3820/S-2869: Prohibits unaffiliated mail-in voters from receiving mail-in ballots for primary election; requires election officials to provide such voters certain notices; prohibits mail-in ballot envelopes from containing visible political affiliation or designation for certain elections.
A-3822/S-2865: Changes certain mail-in ballot deadlines; permits opening and canvassing of mail-in ballots prior to election day; permits pickup schedule for certain mail-in ballots; requires confirmation notice when voters change party affiliation at the Motor Vehicle Commission.
A-3823/S-2867: Requires enhanced review of death records two months prior to election; permits remote training for certain election workers; exempts election workers’ compensation from taxation and remuneration.
A-3929/S-2899: Allows certain voters residing overseas to vote in certain elections in this state, depending on overseas residency or intent to return.
We encourage you to review these bills with your municipal clerk.
Contact: Paul Penna, Senior Legislative Analyst, ppenna@njlm.org, 609-695-3481, x110.
g. Legislation Signed to Adjust Amusement Games Municipal Ballot Question
On Friday, Governor Murphy signed A-4193/S-2759, which adjusts the municipal ballot question for allowing games of amusement within a municipality to match the current title of the law as amended in P.L.1981, c.291. The bill only applies to future ballot questions and would not change the law of any municipality that has already adopted the “Amusement Games Licensing Law.” The law takes effect immediately.
Contact: Paul Penna, Senior Legislative Analyst, ppenna@njlm.org, 609-695-3481, x110.
h. Governor Murphy Takes Action on Parking Project Legislation
Earlier today, Governor Murphy signed S-2677 into law. The new law automatically extents the terms of any approvals for proposed mixed-use parking projects for a period of 30 months. The law also expands eligibility for parking projects undertaken by municipal redevelopers under the Economic Redevelopment and Growth Grant program. The intent of the law is to facilitate the construction of structured parking where undertaken or operated by a public body. This construction is necessary to facilitate the effective redevelopment of densely populated areas, where such construction may otherwise be cost prohibitive.
Contact: Frank Marshall, Esq., Associate General Counsel, fmarshall@njlm.org, 609-695-3481, x137.
i. Governor Murphy Announces Three-Year Charge Up New Jersey Program
On Monday, July 25, Governor Murphy announced the start of the three-year incentive Charge Up New Jersey Program that offers residents incentives up to $4,000 for electric vehicles (EV) with MSRPs under $45,000 and incentives of up to $2,000 for vehicles with an MSRP between $45,000 and $50,000. Governor Murphy also highlighted the new Residential EV Charger Incentive Program that offers a $250 rebate for at-home chargers. Combined with preexisting utility programs, residents could expect to have the installation of at home chargers fully covered.
Charge Up New Jersey is part of the State’s Master Energy Plan to move to full clean energy by 2050. Currently, New Jersey’s transportation sector accounts for more than 40% of the state’s greenhouse gas emissions. By reducing the emissions from heavy- and light-duty vehicles, and replacing gas- and diesel-powered vehicles with zero-emission vehicles, the Murphy Administration hopes to promote environmental and economic benefits for all New Jersey’s residents.
The League recommends sharing these programs with residents. For more information, please visit the Charge Up New Jersey.
Contact: Andrew LaFevre, Legislative Analyst, alafevre@njlm.org, 609-695-3481, x116.
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