SENATE BUDGET AND APPROPRIATIONS COMMITTEE

STATEMENT TO

[First Reprint]

SENATE, No. 1836

STATE OF NEW JERSEY

DATED: JUNE 5, 1997

      The Senate Budget and Appropriations Committee reports favorably Senate Bill No. 1836 (1R).

      Senate Bill No. 1836 (1R) will permit moneys held by the Superior Court to be invested in programs approved by the State Investment Council and managed by the Division of Investment, in the New Jersey Cash Management Fund, or in any combination of the statutorily specified investment options. At present, the statute provides that moneys held by the Superior Court may be invested only in certain specified bonds and securities.

      As reported, this bill is identical to Assembly Bill No. 2676 (1R) (Lance).

FISCAL IMPACT:

      According to the Administrative Office of the Courts (AOC), the Judiciary began its efforts to consolidate the processing and investment of the funds collected by the twenty-one counties when the State assumed responsibility for the operation of the trial courts under court unification. The investment option proposed in the bill has been a part of the Judiciary's restructuring of its collections and investment procedures and has been in use for the past two fiscal years. Because of this, there will be no additional revenues nor additional expenses incurred as a result of the implementation of the bill.

      The intent of the bill is to codify the Judiciary's current investment practice, the implementation of which began at the onset of court unification.