Sponsored by:
Senator RONALD L. RICE
District 28 (Essex)
SYNOPSIS
Requires local unit or authority to provide director of the Division of Local Government Services with report concerning law suits to which it is a party before budget is approved.
CURRENT VERSION OF TEXT
As reported by the Senate Community and Urban Affairs Committee on March 4, 2013, with amendments.
An Act concerning local unit and authority budgets and supplementing Title 40A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. The director shall not approve a budget pursuant to N.J.S.40A:4-10 until the governing body has provided the director with a report outlining any lawsuits filed by or against the local unit which the governing body expects will not be covered or defended by a liability insurer and in which the 1[governing body expects to expend] local unit has expended1 more than $50,000 in legal fees or 1[settlement costs] the complainant has demanded more than $50,000 in damages1. The report shall be in a format approved by the director and shall include, but not be limited to, the following information:
The number of lawsuits filed by the local unit, with 1[an explanation of the nature of] a list summarizing the claims contained within1 each lawsuit, and, when appropriate, the dollar amount awarded to the local unit, unless the amount is rendered confidential by court order, during the reporting period;
The number of lawsuits filed against the local unit, with 1[an explanation of the nature of] a list summarizing the claims contained within1 each lawsuit, and, when appropriate, the dollar amount awarded to the plaintiff, unless the amount is rendered confidential by court order, during the reporting period;
The number of lawsuits that were settled out of court, with the dollar amounts of each settlement, during the reporting period;
The number of pending lawsuits, with 1[an explanation of the nature of] a list summarizing the claims contained within1 each lawsuit, during the reporting period;
The name of the attorney or law firm that represented the local unit in each lawsuit, and the dollar amount paid to the attorney or law firm for representation, during the reporting period;
An explanation of the manner of billing used by the attorney or law firm representing the local unit in each lawsuit, indicating whether the attorney or law firm received a set fee per hour or arranged another manner of billing, during the reporting period;
An indication whether the local unit is self-insured or contracts its liability out to an insurance provider, during the reporting period.
b. The director shall make a copy of each report available on the division’s website for at least one year.
c. For the purposes of this section, “reporting period” means the previous January 1 to December 31 for any local unit operating under a calendar fiscal year or the previous July 1 to June 30 for any local unit operating under a State fiscal year.
2. a. The director shall not approve a budget pursuant to 1[N.J.S.40A:5A-10] N.J.S.40A:5A-111 until the authority has provided the director with a report outlining any lawsuits filed by or against the authority which the authority expects will not be covered or defended by a liability insurer and the 1[governing body expects to expend] local unit has expended1 more than $50,000 in legal fees or 1[settlement costs] the complainant has demanded more than $50,000 in damages1. The report shall be in a format approved by the director and shall include, but not be limited to, the following information:
The number of lawsuits filed by the authority, with 1[an explanation of the nature of] a list summarizing the claims contained within1 each lawsuit, and, when appropriate, the dollar amount awarded to the authority, unless the amount is rendered confidential by court order, during the reporting period;
The number of lawsuits filed against the authority, with 1[an explanation of the nature of] a list summarizing the claims contained within1 each lawsuit, and, when appropriate, the dollar amount awarded to the plaintiff, unless the amount is rendered confidential by court order, during the reporting period;
The number of lawsuits that were settled out of court, with the dollar amounts of each settlement, during the reporting period;
The number of pending lawsuits with 1[an explanation of the nature of] a list summarizing the claims contained within1 each lawsuit, during the reporting period;
The name of the attorney or law firm that represented the authority in each lawsuit, and the dollar amount paid to the attorney or law firm for representation, during the reporting period;
An explanation of the manner of billing used by the attorney or law firm representing the authority in each lawsuit, indicating whether the attorney or law firm received a set fee per hour or arranged another manner of billing, during the reporting period;
An indication whether the authority is self-insured or contracts its liability out to an insurance provider, during the reporting period.
b. The director shall make a copy of each report available on the division’s website for at least one year.
c. For the purposes of this section, “reporting period” means the twelve month period preceding the submission of the budget for approval.
3. This act shall take effect immediately but shall not apply to any local unit or local authority until that entity’s first full fiscal year next following enactment.