ASSEMBLY, No. 96

STATE OF NEW JERSEY

INTRODUCED FEBRUARY 5, 1996

By Assemblymen AZZOLINA, GARRETT and Augustine

An Act creating a Department of Banking and Insurance in the Executive Branch of State Government, defining its powers and responsibilities, and abolishing the Department of Banking and the Department of Insurance.

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

    1. This act shall be known and may be cited as the "Department of Banking and Insurance Act."

    2. There is established in the Executive Branch of State Government a principal department which shall be known as the Department of Banking and Insurance.

    3. As used in this act:

    "Department" means the Department of Banking and Insurance; and

    "Commissioner" means the Commissioner of Banking and Insurance.

    4. The head of the department shall be the Commissioner of Banking and Insurance. The commissioner shall be appointed by the Governor, with the advice and consent of the Senate, and shall serve at the pleasure of the Governor during the Governor's term of office and until the appointment and qualification of a successor. The commissioner shall receive such salary as shall be provided by law. Any vacancy occurring in the position of commissioner shall be filled in the same manner as the original appointment.

    5. The Department of Banking in the Executive Branch of State Government, established by P.L.1970, c.11 (C.17:1B-1 et seq.), is abolished. All functions, powers and duties of the Department of Banking are continued and transferred to the Department of Banking and Insurance established by this act.

    6. The office of Commissioner of the Department of Banking is abolished. All the functions, powers and duties now vested in the Commissioner of Banking, pursuant to P.L.1970, c.11 (C.17:1B-1 et seq.), are transferred to and assumed by the commissioner.

    7. Whenever in any law, rule, regulation, judicial or administrative proceeding or otherwise, reference is made to the Department of Banking, the same shall mean and refer to the department. In addition, whenever in any law, rule, regulation, judicial or administrative proceeding or otherwise, reference is made to the Commissioner of the Department of Banking, the same shall mean and refer to the commissioner.

    8. There is established in the department the Division of Banking. The division shall be under the immediate supervision of an assistant commissioner, who shall be known as the Assistant Commissioner of the Division of Banking. The Assistant Commissioner shall be appointed by the commissioner to serve at the pleasure of the commissioner during the commissioner's term of office. The assistant commissioner so appointed shall receive such salary as shall be provided by law.

    9. The Assistant Commissioner of the Division of Banking may organize the work of the division in such offices, bureaus and other organizational units as he may determine, subject to the approval of the commissioner, to be necessary for efficient and effective operation in the performance of his duties.

    10. The Department of Insurance in the Executive Branch of State Government, established by P.L.1970, c.12 (C.17:1C-1 et seq.), is abolished. All the functions, powers, and duties of the Department of Insurance are continued and transferred to the Department of Banking and Insurance established by this act.

    11. The offices of Commissioner of Insurance and of the Deputy Commissioners of Insurance are abolished. All the functions, powers and duties now vested in the Commissioner of Insurance and Deputy Commissioners of Insurance pursuant to P.L.1970, c.12 (C.17:1C-1 et seq.) are transferred to and assumed by the commissioner.

    12. Whenever in any law, rule, regulation, judicial or administrative proceeding or otherwise, reference is made to the Department of Insurance, the same shall mean and refer to the department. In addition, whenever in any law, rule, regulation, judicial or administrative proceeding or otherwise, reference is made to the Commissioner of the Department of Insurance, the same shall mean and refer to the commissioner.

    13. There is established in the department the Division of Insurance. The division shall be under the immediate supervision of an assistant commissioner, who shall be known as the Assistant Commissioner of the Division of Insurance. The assistant commissioner shall be appointed by the commissioner to serve at the pleasure of the commissioner during the commissioner's term of office. The assistant commissioner so appointed shall receive such salary as shall be provided by law.

    14. The Assistant Commissioner of the Division of Insurance may organize the work of the division in such offices, bureaus and other organizational units as he may determine, subject to the approval of the commissioner, to be necessary for efficient and effective operation in the performance of his duties.

    15. The transfers directed by this act shall be effected pursuant to the "State Agency Transfer Act," P.L.1971, c.375 (C.52:14D-1 et seq.).

    16. This act shall take effect 60 days after enactment, but any action necessary to effectuate its provisions may be taken prior to the expiration of that 60-day period.

STATEMENT

    This bill creates a Department of Banking and Insurance as a principal department in the Executive Branch of State Government. The Department of Banking and the Department of Insurance are abolished and the functions, powers and duties of these departments are transferred to and consolidated in the new department.

Consolidates and transfers the duties of Departments of Banking and Insurance to new Department of Banking and Insurance.