SENATE COMMERCE COMMITTEE

STATEMENT TO

SENATE, No. 812

STATE OF NEW JERSEY

DATED: MARCH 21, 1996

      The Senate Commerce Committee reports favorably Senate Bill No. 812.

      This bill modifies the calculation of the reduced assessments of certain insurers for payment of the Market Transition Facility (MTF) debt as provided by P.L.1995, c.396. That act allows a reduced assessment for certain insurers only if the Commissioner of Insurance certifies that loans of less than the statutory amount of $160 million per calendar year from the New Jersey Property-Liability Insurance Guaranty Association (PLIGA) will satisfy the current and anticipated financial obligations of the MTF, and further provides that this determination be made "without reference to the amount of funds remaining from the sale of the Market Transition Facility Senior Lien Revenue Bonds." This bill eliminates this condition so that these bond funds can be included by the commissioner when calculating the amount necessary from the PLIGA loans.