New Jersey Assembly Bill A4026

New Jersey 2024-2025 Regular Session

• Introduced: 3/7/24
• Refer: 3/7/24

Caption

"New Jersey Infrastructure Capital Asset Reassignment Enterprise Fund Act"; creates trust fund for conveyance of certain assets for benefit of State-administered retirement systems; appropriates $20 million.

Impact

The establishment of the ICARE Fund is poised to have a substantial impact on local governance and fiscal management. By allowing public entities to transfer their assets (including real and personal property) into a trust fund, officials hope to relieve financial burdens and improve the funding ratios of state-administered retirement systems. This legislation not only alters how municipalities manage their assets but also serves as a strategic approach to bolstering the financial integrity of retirement systems across New Jersey.

Summary

Assembly Bill A4026, known as the 'New Jersey Infrastructure Capital Asset Reassignment Enterprise Fund Act,' aims to establish the Infrastructure Capital Asset Reassignment Enterprise (ICARE) Fund. This fund is a trust that facilitates the conveyance of certain revenue-producing assets from public entities to benefit the State-administered retirement systems. It seeks to provide a mechanism for municipalities and local governments to manage their assets effectively while ensuring that these actions maximize the long-term value of such assets. The bill appropriates $20 million from the General Fund to support the operational and administrative functioning of the fund.

Contention

While the bill has garnered support for its potential to enhance pension contributions and asset management, it faces scrutiny regarding the implications for local control over public assets. Critics may argue that by transferring significant assets to a state-administered fund, local entities could lose important fiscal levers necessary for addressing their unique infrastructure needs and priorities. Additionally, the valuation process for conveyed assets, governed by independent evaluations and approval processes, raises concerns about transparency and accountability in asset management under the new framework.