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A01936 Summary:

COSPNSRSeawright, Simone, Raga
Add §139-m, St Fin L
Prohibits state contracts with contractors who do not provide health insurance which covers services for transgender, non-binary, and gender expansive people.
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A01936 Memo:

submitted in accordance with Assembly Rule III, Sec 1(f)
SPONSOR: Gonzalez-Rojas
  TITLE OF BILL: An act to amend the state finance law, in relation to participation in state contracts   PURPOSE: To prohibit state contracts with contractors who do not provide their employees with insurance that covers services for transgender, non-bi- nary, and gender-expansive people.   SUMMARY OF PROVISIONS: Section 1 of the bill adds a new section to the state finance law, providing that a clause shall be interested in all contracts entered into by the state, and any of its public departments, agencies, or offi- cials, from entering into a contract with a contractor that has partic- ipated or is participating or shall participate in a health plan which does not cover transgender services. The comptroller will have the power to declare the contract void if it is discovered that a contractor has been participating in such a health insurance plan after the contract was executed. The comptroller will also be given the power to issue rules and regulations pursuant to this section. Section 2 provides the effective date   JUSTIFICATION: The bill is designed to address one of the problems that arise when a person is covered by a self-funded or self-insured health plan. Under these plans, the employer assumes the financial risk for providing health care benefits to its employees. These plans are largely governed at the federal level under ERISA (the Employee Retirement Income Securi- ty Act), therefore superseding the applicability of any state law, including GENDA. Self-funded plans are also exempt from certain provisions of the Affordable Care Act. Additionally, self-funded plans which enjoy "grandfather" status are afforded further exemptions under the ACA. Unfortunately, these plans often fail to cover many health services, including services for transgender, non-binary, and gender-ex- pansive people. Transgender health services can include hormone therapy, gender affirmation surgery, as well as preventative care measures like gynecological and prostate exams. For the state to properly address the problems presented by self-funded plans, creative solutions are required. This bill leverages the contracting power of our government to support transgender, non-binary, and gender-expansive persons and their families by requiring any contractor wishing to do business with the state to provide their employees with health coverage that covers all people, irrespective of their gender identity.   LEGISLATIVE HISTORY: 2022: Reported to Governmental Operations committee   FISCAL IMPLICATIONS: None to state.   EFFECTIVE DATE: This act shall take effect 90 days after it becomes law and will apply to contracts entered into, renewed, or modified on or after the effec- tive date.
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