Bill Text: NJ A2949 | 2020-2021 | Regular Session | Introduced
Bill Title: Expands range of local units eligible to join an insurance fund established by a municipality or county under certain circumstances.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2020-02-20 - Introduced, Referred to Assembly State and Local Government Committee [A2949 Detail]
Download: New_Jersey-2020-A2949-Introduced.html
Sponsored by:
Assemblyman PARKER SPACE
District 24 (Morris, Sussex and Warren)
SYNOPSIS
Expands range of local units eligible to join an insurance fund established by a municipality or county under certain circumstances.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning local unit insurance funds and amending N.J.S.40A:10-6.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. N.J.S.40A:10-6 is amended to read as follows:
40A:10-6. The governing body of any local unit may establish an insurance fund for the following purposes:
a. To insure against any loss or damage however caused to any property, motor vehicles, equipment or apparatus owned by it, or owned by or under the control of any of its departments, boards, agencies or commissions;
b. To insure against liability resulting from the use or operation of motor vehicles, equipment or apparatus owned by or controlled by it, or owned by or under the control of any of its departments, boards, agencies or commissions;
c. To insure against liability for its negligence and that of its officers, employees and servants, whether or not compensated or part-time, who are authorized to perform any act or services, but not including an independent contractor within the limitations of the "New Jersey Tort Claims Act" (N.J.S.59:1-1 et seq.);
d. To insure against any loss or damage from liability as established by chapter 15 of Title 34 of the Revised Statutes;
e. To provide contributory or noncontributory self-funded, or partially self-funded, health benefits to employees or their dependents, or both, in accordance with rules and regulations of the Director of the Division of Local Government Services in the Department of Community Affairs. The establishment and operation of a fund to provide health benefits by a local unit prior to the effective date of P.L.2000, c.126 (C.52:13H-21 et al.) is hereby validated; however, any such health benefits fund shall comply with all rules and regulations promulgated by the director pursuant to this subsection.
The governing body may appropriate the moneys necessary for the purposes of this section.
For the purposes of this section, "local unit" means a county, municipality, board of education, county college, county vocational school, and any municipal authority.
(cf: P.L.2007, c.18, s.1)
2. This act shall take
effect immediately.
STATEMENT
This bill provides that, for the purposes of N.J.S.40A:10-6, which provides for the establishment of insurance funds by the governing body of any local unit under certain circumstances, "local unit" means a county, municipality, board of education, county college, county vocational school, and any municipal authority.
Under current law, a board of education is permitted to participate in a county insurance fund under N.J.S.A.18A-18A-2 and a municipal insurance fund under N.J.S.A.40A:10-6.1 and N.J.S.A.40A:10-52 (as well as N.J.S.A.40A:10-53, -54, and -55 with regard to participation by all-purpose regional school districts, consolidated school districts, and limited-purpose school districts). A county vocational school district is permitted to participate in a county insurance fund under N.J.S.A.40A:10-56 and N.J.S.A.40A:10-57. A county college is permitted to participate in a county insurance fund under N.J.S.A.18A:64A-25.40; however, there is no current statutory authority for a county college to participate in a municipal insurance fund. Similarly, there is no current statutory authority for a municipal authority to participate in a county or municipal insurance fund. This bill would collect all such local units under a single statute and provide the authority for participation in such insurance funds.
