A BILL TO BE ENTITLED
AN ACT to increase efficiency in the administration of after tax benefit plans by the university of north carolina by exempting the university from certain obsolete requirements.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 58‑31‑60(a) reads as rewritten:
"(a)	Employee Insurance Committee. – The head of each State government employee payroll unit offering payroll deduction insurance products to employees, other than payroll units associated with The University of North Carolina System, shall appoint an Employee Insurance Committee for the following purposes:
(1)	To review insurance products currently offered through payroll deduction to the State employees in the Employee Insurance Committee's payroll unit to determine if those products meet the needs and desires of employees in the Employee Insurance Committee's payroll unit.
(2)	To select the types of insurance products that reflect the needs and desires of employees in the Employee Insurance Committee's payroll unit.
(3)	To competitively select the best insurance products of the types determined by the Employee Insurance Committee to reflect the needs and desires of the employees of that payroll unit.
As used in this section, "insurance product" includes a prepaid legal services plan registered under G.S. 84‑23.1."
SECTION 2.  Article 31 of Chapter 58 of the General Statutes is amended by adding a new section to read:
"§ 58‑31‑62.  Selection of payroll deduction insurance products for employees of The University of North Carolina.
(a)	Applicability. – This section, rather than G.S. 58‑31‑60, applies to State government payroll units associated with The University of North Carolina.
(b)	Definition. – The following definitions apply in this section.
(1)	Employee. – An employee of any State government employee payroll unit associated with The University of North Carolina.
(2)	President. – The President of The University of North Carolina, or the President's designee.
(c)	Employee‑Paid Insurance Options. – The President has the authority to do all of the following:
(1)	Review insurance products currently offered through payroll deduction to employees to determine if those products meet the needs and desires of employees. The President shall seek input from individual employees, committees, or other employee groups on payroll deduction insurance products.
(2)	Select the types of insurance products that reflect the needs and desires of employees.
(3)	Competitively select the best insurance products to reflect the needs and desires of employees.
(d)	Payroll Deduction Slots. – Each payroll unit overseen by the President shall be entitled to not less than four payroll deduction slots to be used for payment of insurance premiums for products selected and offered to the employees of the payroll unit. Only one company per payroll deduction slot shall be selected and the company selected shall be permitted to sell through payroll deduction only the specific products selected. The selection of a payroll deduction slot shall be for a period of not less than two years unless the insurance company shall be in violation of the terms of the written agreement specified in this subsection. The insurance company awarded a payroll deduction slot shall, pursuant to a written agreement setting out the rights and duties of the insurance company, be afforded an adequate opportunity to solicit employees of the relevant payroll unit by making such employees aware that a representative of the company will be available at a specified time and at a location convenient to the employees.
(e)	Procedure for Selection of Insurance Product Proposals. – All insurance product proposals shall be sealed. The proposals shall be opened in public and shall become public records open to public inspection.
After the public opening, the President shall review the proposals, examining the cost and quality of the products, the reputation and capabilities of the insurance companies submitting the proposals, and other appropriate criteria in order to determine which proposal, if any, would meet the needs and desires of the employees and shall award a payroll deduction slot to the company submitting the proposal that meets those needs and desires. Any or all proposals may be rejected.
A company may seek to modify or withdraw a proposal only after the public opening and only on the basis that the proposal contains an unintentional clerical error as opposed to an error in judgment. A company seeking to modify or withdraw a proposal shall submit a written request to the appropriate individual listed in subsection (a) of this section or his/her designee, with facts and evidence in support of its position, prior to the award of the payroll deduction slot, but not later than two days after the public opening of the proposals. The President shall promptly review the request, including an examination of the nature of the error, and determine whether to permit or deny the request.
(f)	Criminal Penalty. – It shall be a Class 3 misdemeanor for anyone to open a sealed insurance product proposal or disclose or exhibit the contents of a sealed insurance product proposal, prior to the public opening of the proposal. The Commissioner of Insurance shall have the authority to investigate complaints alleging acts subject to the criminal penalty and shall report his findings to the Attorney General of North Carolina."
SECTION 3.  This act is effective when it becomes law, and applies to the selection of payroll deduction insurance products occurring on or after that date.