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A1227
ASSEMBLY, No. 1227
STATE OF NEW JERSEY
222nd LEGISLATURE
�
PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION
Sponsored by:
Assemblyman MICHAEL INGANAMORT
District 24 (Morris, Sussex and Warren)
Assemblywoman DAWN FANTASIA
District 24 (Morris, Sussex and Warren)
SYNOPSIS
���� Expands range of local units eligible to join an
insurance fund established by a municipality or county under certain
circumstances.
CURRENT VERSION OF TEXT
���� Introduced Pending Technical Review by Legislative
Counsel.
��
An Act
concerning local unit insurance funds and amending
N.J.S.40A:10-6.
����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:
���� 1.��� N.J.S.40A:10-6 is
amended to read as follows:
���� 40A:10-6.� The governing body
of any local unit may establish an insurance fund for the following purposes:
���� a.���� To insure against any
loss or damage however caused to any property, motor vehicles, equipment or
apparatus owned by it, or owned by or under the control of any of its
departments, boards, agencies or commissions;
���� b.��� To insure against
liability resulting from the use or operation of motor vehicles, equipment or
apparatus owned by or controlled by it, or owned by or under the control of any
of its departments, boards, agencies or commissions;
���� c.���� To insure against
liability for its negligence and that of its officers, employees and servants,
whether or not compensated or part-time, who are authorized to perform any act
or services, but not including an independent contractor within the limitations
of the "New Jersey Tort Claims Act" (N.J.S.59:1-1 et seq.);
���� d.��� To insure against any
loss or damage from liability as established by chapter 15 of Title 34 of the
Revised Statutes;
���� e.���� To provide contributory
or noncontributory self-funded, or partially self-funded, health benefits to
employees or their dependents, or both, in accordance with rules and
regulations of the Director of the Division of Local Government Services in the
Department of Community Affairs.� The establishment and operation of a fund to
provide health benefits by a local unit prior to the effective date of
P.L.2000, c.126 (C.52:13H-21 et al.) is hereby validated; however, any such
health benefits fund shall comply with all rules and regulations promulgated by
the director pursuant to this subsection.
���� The governing body may
appropriate the moneys necessary for the purposes of this section.
����
For the purposes of this
section, �local unit� means a county, municipality, board of education, county
college, county vocational school, and any municipal authority.
(cf: P.L.2007, c.18, s.1)
���� 2.��� This act shall take
effect immediately.
STATEMENT
���� This bill provides that, for
the purposes of N.J.S.40A:10-6, which provides for the establishment of
insurance funds by the governing body of any local unit under certain
circumstances, �local unit� means a county, municipality, board of education,
county college, county vocational school, and any municipal authority.
���� Under current law, a board of
education is permitted to participate in a county insurance fund under
N.J.S.A.18A:18A-2 and a municipal insurance fund under N.J.S.A.40A:10-6.1 and
N.J.S.A.40A:10-52 (as well as N.J.S.A.40A:10-53, -54, and -55 with regard to
participation by all-purpose regional school districts, consolidated school
districts, and limited-purpose school districts).� A county vocational school
district is permitted to participate in a county insurance fund under
N.J.S.A.40A:10-56 and N.J.S.A.40A:10-57.� A county college is permitted to
participate in a county insurance fund under N.J.S.A.18A:64A-25.40; however,
there is no current statutory authority for a county college to participate in
a municipal insurance fund.� Similarly, there is no current statutory authority
for a municipal authority to participate in a county or municipal insurance
fund.� This bill would collect all such local units under a single statute and
provide the authority for participation in such insurance funds.