"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.
The act will modify existing state laws and introduce measures for the transfer of various assets, which may include real property and other rights held by public entities. The fund is designed to optimize asset performance and increase the funded status of the retirement systems participating in the program. Public entities will be required to undergo a comprehensive '360 review' before asset conveyance, ensuring thorough evaluations of fiscal conditions to protect the interests of beneficiaries within the retirement systems. Additionally, each asset transferred to the fund must be valued by an independent valuation agent to safeguard against undervaluation.
Senate Bill S2381, also known as the 'New Jersey Infrastructure Capital Asset Reassignment Enterprise Fund Act', aims to establish a trust fund specifically created for the conveyance of certain assets that will benefit the State-administered retirement systems. Key to this bill is the appropriation of $20 million for the initial operational and administrative expenses of the newly formed Infrastructure Capital Asset Reassignment Enterprise Fund (ICARE). The establishment of this fund will allow public entities to contribute or sell their revenue-generating assets into a segregated account, facilitating a shared risk-management model while maximizing the performance and long-term value of such assets.
There are concerns about how the establishment of the ICARE Fund might influence local control and management of public infrastructure assets. The potential for centralized management can be contentious, as municipalities may feel that they are losing authority over their local assets. Moreover, the bill amends existing regulatory frameworks, such as the Water Infrastructure Protection Act, to allow emergency conditions for asset conveyance, which could lead to expedited processes that lack public scrutiny. The balance between fiscal responsibility and local governance is likely to be a point of debate among stakeholders as the bill progresses.