[Third Reprint]

SENATE, No. 1248

STATE OF NEW JERSEY

214th LEGISLATURE

 

INTRODUCED FEBRUARY 8, 2010

 


 

Sponsored by:

Senator  RONALD L. RICE

District 28 (Essex)

Senator  JENNIFER BECK

District 12 (Mercer and Monmouth)

Assemblyman  ALBERT COUTINHO

District 29 (Essex and Union)

Assemblywoman  L. GRACE SPENCER

District 29 (Essex and Union)

 

 

 

 

SYNOPSIS

     Requires local unit or authority to provide director of the Division of Local Government Services with report concerning law suits to which it is a party before budget is approved

 

CURRENT VERSION OF TEXT

     As amended on January 10, 2011 by the Senate pursuant to the Governor's recommendations.

  


An Act concerning local unit and authority budgets and supplementing Title 40A of the New Jersey Statutes.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.    a. The director shall not approve a budget pursuant to N.J.S.40A:4-10 until the governing body has provided the director with a report outlining any lawsuits filed by or against the local unit 2which the governing body expects will not be covered or defended by a liability insurer and2 1in which the governing body expects to expend more than $50,000 in legal fees or settlement costs1.  The report shall 3be in a format approved by the director and shall3 include, but not be limited to, the following information:

     The number of lawsuits filed by the local unit, with an explanation of the nature of each lawsuit, and, when appropriate, the dollar amount awarded to the local unit, unless the amount is rendered confidential by court order, during the reporting period;

     The number of lawsuits filed against the local unit, with an explanation of the nature of each lawsuit, and, when appropriate, the dollar amount awarded to the plaintiff, unless the amount is rendered confidential by court order, during the reporting period;

     The number of lawsuits that were settled out of court, with the dollar amounts of each settlement, during the reporting period;

     The number of pending lawsuits, with an explanation of the nature of each lawsuit, during the reporting period;

     The name of the attorney or law firm that represented the local unit in each lawsuit, and the dollar amount paid to the attorney or law firm for representation, during the reporting period;

     An explanation of the manner of billing used by the attorney or law firm representing the local unit in each lawsuit, indicating whether the attorney or law firm received a set fee per hour or arranged another manner of billing, during the reporting period;

     3[A summary of the local unit’s liability insurance plan, indicating] An indication3 whether the local unit is self-insured or contracts its liability out to an insurance provider, during the reporting period.

     b.    The director shall 3[transmit a copy of each report to the Commissioner of Community Affairs, who shall render each report to the Governor and the Legislature pursuant to section 3 of P.L.1966, c.293 (C.52:27D-3)] make a copy of each report available on the division’s website for a period of at least one year3.

     c.     For the purposes of this section, “reporting period” means the previous January 1 to December 31 for any local unit operating under a calendar fiscal year or the previous July 1 to June 30 for any local unit operating under a State fiscal year.

 

     2.    a.  The director shall not approve a budget pursuant to N.J.S.40A:5A-10 until the authority has provided the director with a report outlining any lawsuits filed by or against the authority 2which the authority expects will not be covered or defended by a liability insurer and2 1in which the authority expects to expend more than $50,000 in legal fees or settlement costs1.  The report shall 3be in a format approved by the director and shall3 include, but not be limited to, the following information:

     The number of lawsuits filed by the authority, with an explanation of the nature of each lawsuit, and, when appropriate, the dollar amount awarded to the authority, unless the amount is rendered confidential by court order, during the reporting period;

     The number of lawsuits filed against the authority, with an explanation of the nature of each lawsuit, and, when appropriate, the dollar amount awarded to the plaintiff, unless the amount is rendered confidential by court order, during the reporting period;

     The number of lawsuits that were settled out of court, with the dollar amounts of each settlement, during the reporting period;

     The number of pending lawsuits, with an explanation of the nature of each lawsuit, during the reporting period;

     The name of the attorney or law firm that represented the authority in each lawsuit, and the dollar amount paid to the attorney or law firm for representation, during the reporting period;

     An explanation of the manner of billing used by the attorney or law firm representing the authority in each lawsuit, indicating whether the attorney or law firm received a set fee per hour or arranged another manner of billing, during the reporting period;

     3[A summary of the authority’s liability insurance plan, indicating] An indication3 whether the local unit is self-insured or contracts its liability out to an insurance provider, during the reporting period.

     b.    The director 3[shall transmit a copy of each report to the Commissioner of Community Affairs, who shall render each report to the Governor and the Legislature pursuant to section 3 of P.L.1966, c.293 (C.52:27D-3)] make a copy of each report available on the division’s website for at least one year3.

     c.     For the purposes of this section, “reporting period” means the 3[previous January 1 to December 31 for any authority operating under a calendar fiscal year or the previous July 1 to June 30 for any authority operating under a State fiscal year] twelve month period preceding the submission of the budget for approval3.


     3.    This act shall take effect immediately 3but shall not apply to any local unit or local authority until that entity’s first full fiscal year next following enactment3.