New Jersey Assembly Bill A2157

New Jersey 2022-2023 Regular Session

• Introduced: 2/7/22
• Refer: 2/7/22

Caption

Expands range of local units eligible to join an insurance fund established by a municipality or county under certain circumstances.

Impact

The bill modifies N.J.S.40A:10-6, which governs the establishment of insurance funds by local governing bodies. By expanding the definition of 'local unit,' it allows entities like county colleges and municipal authorities to join insurance funds, which were previously restricted. This legislative change could lead to better risk management and financial stability for local governments, potentially translating into cost savings that can be redirected to public services.

Summary

Assembly Bill A2157 seeks to expand the range of local units that are eligible to join an insurance fund that is established by municipalities or counties. The bill represents a consolidation of existing statutes, allowing a wider array of local government entities—including municipalities, county colleges, and municipal authorities—to participate in these insurance funds. This change aims to streamline insurance participation and ensure that these local units have access to financial mechanisms to protect their assets and manage liabilities.

Contention

Notable points of contention may arise regarding the implications of allowing more local units to access insurance funds. Some proponents argue that the expansion promotes inclusivity and better resource management among different government entities. Conversely, critics might express concerns about the financial prudence of such expansions, questioning whether this could lead to increased liabilities or frivolous use of funds that might otherwise be allocated to essential services.