[First Reprint]

SENATE, No. 341

STATE OF NEW JERSEY

214th LEGISLATURE

 

PRE-FILED FOR INTRODUCTION IN THE 2010 SESSION

 


 

Sponsored by:

Senator  STEVEN V. OROHO

District 24 (Sussex, Hunterdon and Morris)

Senator  JEFF VAN DREW

District 1 (Cape May, Atlantic and Cumberland)

 

 

 

 

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 reported by the Senate Community and Urban Affairs Committee on June 21, 2010, with amendments.

  


An Act concerning local unit insurance funds and amending N.J.S.40A:10-6 1and P.L.1983, c.3721.

 

     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)

 

     12.   Section 1 of P.L.1983, c.372 (C.40A:10-36) is amended to read as follows:

     1.    a.  The governing body of any local unit, as defined by N.J.S.40A:10-6, including any contracting unit as defined in section 2 of P.L.1971, c.198 (C.40A:11-2), may by resolution agree to join together with any other local unit or units to establish a joint insurance fund for the purpose of insuring against liability, property damage, and workers' compensation as provided in Articles 3 and 4 of chapter 10 of Title 40A of the New Jersey Statutes, insuring against loss or theft of moneys or securities, providing blanket bond coverage of certain county or municipal officers and employees for faithful performance and discharge of their duties as provided under section 1 of P.L.1967, c.283 (C.40A:5-34.1), insuring against bodily injury and property damage claims arising from environmental impairment liability and legal representation therefor to the extent that such coverages, as approved by the Commissioner of Banking and Insurance, are provided by the purchase of insurance and no risk is retained by the fund, providing contributory or non-contributory group health insurance or group term life insurance, or both, to employees or their dependents or both, through self insurance, the purchase of commercial insurance or reinsurance, or any combination thereof, and insuring against any loss from liability associated with sick leave payment for service connected disability as provided by N.J.S.18A:30-2.1, and may appropriate such moneys as are required therefor.  The maximum risk to be retained for group term life insurance by a joint insurance fund on a self-insured basis shall not exceed a face amount of $5,000 per covered employee or dependent or more if approved by the Commissioners of Banking and Insurance and Community Affairs.  As used in this subsection: (1) "life insurance" means life insurance as defined pursuant to N.J.S.17B:17-3; (2) “health insurance” means health insurance as defined pursuant to N.J.S.17B:17-4 or service benefits as provided by health service corporations, hospital service corporations or medical service corporations authorized to do business in this State; and (3) “dependent” means dependent as defined pursuant to N.J.S.40A:10-16.

     b.    The governing body of any local unit, as defined by N.J.S.40A:10-6, including any contracting unit as defined in section 2 of P.L.1971, c.198 (C.40A:11-2), may by resolution agree to join together with any other local unit or units to establish a joint insurance fund for the sole purpose of insuring against bodily injury and property damage claims arising from environmental impairment liability and legal representation therefor to the extent and for coverages approved by the Commissioner of Banking and Insurance.1

(cf: P.L.1999, c.434, s.2)

    

     1[2.] 3.1     This act shall take effect immediately.