S 4533

[First Reprint]
SENATE, No. 4533
STATE OF NEW JERSEY
222nd LEGISLATURE
�
INTRODUCED JUNE 26, 2026
Sponsored by:
Senator� JOSEPH F. VITALE
District 19 (Middlesex)
SYNOPSIS
���� Establishes fee on certain employers that employ
individuals who receive health benefits coverage through State Medicaid
program.
CURRENT VERSION OF TEXT
���� As reported by the Senate Budget and Appropriations
Committee on June 28, 2026, with amendments.
��
An Act establishing a fee on certain employers that employ
individuals receiving health benefits coverage through the State Medicaid
program, and supplementing Title 34 of the Revised Statutes.
���� Be It
Enacted by the Senate and General Assembly of
the State of New Jersey:
����� 1.
a. As used in this act:
����� �Commissioner�
means the Commissioner of Labor and Workforce Development.
����� "Department"
means the Department of Labor and Workforce Development.
����� �Division�
means the Division of Revenue and Enterprise Services in the Department of the
Treasury.
����� �Employee�
means any person suffered or permitted to work by an employer, except that an
independent contractor shall not be considered an employee.� For purposes of
this act, the employer shall have the burden of establishing that an individual
is an independent contractor, by showing that the individual and the services
that the individual provides meet the test for independent contractor status
set forth in R.S.43:21-19.
����� �Employer�
means any individual, partnership, association, joint stock company, trust,
corporation, the administrator or executor of the estate of a deceased
individual, or the receiver, trustee, or successor of any of the same,
employing any person in this State that has at any time during the previous
calendar year employed 50 or more employees who receive health benefits
coverage through the State Medicaid program pursuant to P.L.1968, c.413
(C.30:4D-1 et seq.).� For the purposes of this act, the officers of a
corporation and any agents having the management of such corporation shall be
deemed to be the employers of the employees of the corporation.� In addition,
any members of a partnership or limited liability company and any agents having
the management of such partnership or limited liability company shall be deemed
to be employers of the employees of the partnership or limited liability
company.
����� �"Dependent"
means an employee's spouse, civil union partner, or domestic partner, an
unmarried child of the employee who is less than 31 years of age and lives with
the employee in a regular parent-child relationship, or an unmarried child of the
employee who is not less than 31 years of age and is not capable of
self-support. "Child of the employee" includes any child, stepchild,
legally adopted child, or foster child of the employee, or of a domestic
partner or civil union partner of the employee, who is reported for health
benefits coverage through the State Medicaid program pursuant to P.L.1968,
c.413 (C.30:4D-1 et seq.) and dependent upon the employee for support and
maintenance.
����� b.�� Except
as provided in subsection d. of this section, an employer shall annually pay to
the division a fee, which shall be determined pursuant to subsection c. of this
section and assessed by the division, for each employee of the employer, and
each dependent of the employee, who receives health benefits coverage through
the State Medicaid program pursuant to P.L.1968, c.413 (C.30:4D-1 et seq.) for
the purpose of raising revenue to defray State Medicaid costs.�
����� c.�� The
fee to be imposed on an employer shall be determined based on the number of
employees, and dependents of employees, who receive health benefits coverage
through the State Medicaid program pursuant to P.L.1968, c.413 (C.30:4D-1 et
seq.) on December 31 preceding the date employers are notified of their
liability under this section pursuant to subsection e. of this section as
follows:
����� (1)
for an employer with at least 50 but fewer than 250 employees who receive
health benefits coverage through the State Medicaid program pursuant to
P.L.1968, c.413 (C.30:4D-1 et seq.), $325 for each employee, and for each of
the employee�s dependents, who receives State Medicaid benefits;
����� (2)
for an employer with at least 250 but fewer than 500 employees who receive
health benefits coverage through the State Medicaid program pursuant to
P.L.1968, c.413 (C.30:4D-1 et seq.), $525 for each employee, and for each of
the employee�s dependents, who receives State Medicaid benefits; and
����� (3)
for an employer with 500 or more employees who receive health benefits coverage
through the State Medicaid program pursuant to P.L.1968, c.413 (C.30:4D-1 et
seq.), $725 for each employee, and for each of the employee�s dependents, who
receives State Medicaid benefits.
����� d.�� Notwithstanding
the provisions of subsections b. and c. of this section to the contrary, an
employer shall not be liable for the fee established pursuant to subsection b.
of this section for any employee of the employer, or dependent of the employee,
with a developmental disability as defined in section 3 of P.L.1985, c.145
(C.30:6D-25), an intellectual disability as defined in section 13 of P.L.1965,
c.59 (C.30:4-25.1), or a permanent physical disability as defined in section 2
of P.L.1987, c.350 (C.30:4G-14).�
����� e.�� On
or before March 1 of each year, the division, using the information provided
pursuant to section 2 of this act, shall notify an employer that the employer
is required to pay the fee imposed under this section and to file information
to facilitate the processing and tracking of such payment.� The notification
provided by the division shall indicate the number of employees, and dependents
of the employees, who receive health benefits coverage through the State
Medicaid program pursuant to P.L.1968, c.413 (C.30:4D-1 et seq.), for which an
employer is required to pay the fee.� An employer required to pay the fee and
provide any related filing information shall do so through an electronic method
specified by the division.� Payment methods may include electronic funds
transfer, payment card, or any other electronic method approved by the
division.� Filing information shall be submitted over the Internet or through
any other electronic method approved by the division.� All payments and filings
shall be due on or before April 15.
����� f.��� An
employer who fails to pay the fee for each impacted employee or dependent
required under the provisions of this section shall be subject to a penalty not
to exceed $500 per day for each day the fee remains unpaid.
����� g.�� An
employer may dispute the determination that the employer is required to pay the
fee established pursuant to this section by filing an appeal with the
department for a review of that determination; and the department shall have
authority to reverse the division�s determination that the employer is required
to pay the fee if it concludes the fee was improperly imposed.� An employer
shall file the appeal in accordance with rules adopted pursuant to section 3 of
this act and shall submit data satisfactory to the department to demonstrate
that the assessment of the fee was incorrect; provided, however, the employer
shall remit the fee as required by subsections b. through e. of this section
pending the disposition of the appeal.� If the department determines that the
employer has satisfactorily demonstrated that the division incorrectly assessed
the fee, then the department shall notify the division, which shall refund the
amount paid by the employer.� The employer shall not be entitled to a return of
any penalty paid pursuant to subsection f. of this section.� The review by the
department shall be in conformity with the provisions of the
"Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.).
The decision of the department in such cases shall be subject to appeal to the
Appellate Division of the Superior Court.
����� h.�� For
purposes of administering this section, the Commissioner of Labor and Workforce
Development, if the commissioner deems it necessary, may make or cause to be
made an audit, examination, or investigation of the books, records, papers,
accounts, and documents of any employer receiving notification from the
department pursuant to subsection e. of this section.� It shall be the duty of
each employer receiving notification from the division pursuant to subsection
e. of this section to exhibit to the commissioner, or to any employee of the
department, all such books, records, papers, accounts, and documents of the
employer.
����� i.��� If
the commissioner determines that an employer has failed to properly classify
employees to avoid paying the fee required under the provisions of this
section, the commissioner shall be authorized to assess and collect penalties
in accordance with section 1 of P.L.2019, c.373 (C.34:1A-1.18).
����� j.��� Beginning
on July 1, 2027, the following employees who receive health benefits coverage
through the State Medicaid program shall be excluded from the requirements of
this section:
����� (1)
an employee of the employer who has been employed by the employer for less than
90 days at the time the fee is determined pursuant to subsection c. of this
section;
����� (2)
an employee who works part-time, on a per diem basis, or who is a temporary
employee; or
����� (3)
a seasonal employee.
����� If,
prior to July 1, 2027, an employer is charged a fee pursuant to this section
for an employee who would be excluded under this subsection beginning on July
1, 2027, the employer shall be entitled to a credit against any liability for
the provisions of this section, or if there is no liability, a refund in the
following year for any fee paid by the employer concerning that employee.� The
employer shall bear the burden to demonstrate to the satisfaction of the
commissioner that the employer paid a fee for an employee who meets the
criteria for an exclusion in paragraph (1), (2), or (3) of this subsection, in
a form and manner as determined by the commissioner.
����� 1k.� (1) An employer shall not rely upon, use, or
consider information disclosing whether a job applicant or employee receives
health benefits coverage through the State Medicaid program pursuant to
P.L.1968, c.413 (C.30:4D-1 et seq.) as a basis for denying to the applicant or
employee the opportunity to obtain or maintain employment, or to advance in
position in their job.
����� (2)� The
substantive right established by paragraph (1) of this subsection may be
enforced pursuant to P.L.2004, c.143 (C.10:6-1 et seq.).
����� l.��� Notwithstanding
the provisions of any other law to the contrary, individually identifiable
information about an employee or a dependent who receives health benefits
coverage through the State Medicaid program pursuant to P.L.1968, c.413
(C.30:4D-1 et seq.) contained in data prepared for the purposes of implementing
the provisions of this act shall be confidential and privileged.� The
commissioner, the Director of the Division of Revenue and Enterprise Services,
or any employee engaged in the administration thereof or charged with the
custody of any such data shall not divulge, disclose, use for their own
personal advantage, or examine for any reason other than a reason necessitated
by the performance of official duties any information obtained from the data.�
Individually identifiable information about an employee or a dependent shall be
exempt from disclosure under P.L.1963, c.73 (C.47:1A-1 et seq.), commonly known
as the open public records act.1
���� 2.��� Notwithstanding the
provisions of any law or regulation to the contrary, the Departments of Human
Services, Labor and Workforce Development, and the Treasury shall enter into a
memorandum of understanding to share any data and other resources necessary to
implement the provisions of this act to the extent allowed under federal law.
���� 3. Notwithstanding
the provisions of the "Administrative Procedure Act," P.L.1968, c.410
(C.52:14B-1 et seq.), to the contrary, the State Treasurer, in consultation
with the Commissioners of Labor and Workforce Development and Human Services,
may adopt, immediately, upon filing with the Office of Administrative Law,
regulations that the State Treasurer deems necessary to implement the
provisions of this act, which shall specify the number of days that employees,
and dependents of the employees, shall be required to receive health benefits
coverage through the State Medicaid program pursuant to P.L.1968, c.413
(C.30:4D-1 et seq.) and employed by an employer to cause the assessment of the
fee established pursuant to section 1 of this act and the procedure for
appealing the issuance of the fee.� The regulations shall be effective for a
period not to exceed 365 days from the date of the filing, and the State
Treasurer, in consultation with the� Commissioners of Labor and Workforce
Development and Human Services, shall thereafter amend, adopt, or readopt the
regulations in accordance with the requirements of P.L.1968, c.410 (C.52:14B-1
et seq.).
���� 4.��� This act shall take
effect immediately and remain inoperative until July 1, 2026.