S4019

An Act concerning compensation of sexual harassment and abuse survivors and supplementing P.L.2019, c.120 (C.2A:14-2a et al.), N.J.S.18A:22-1 et seq., and N.J.S.40A:4-1 et seq.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. a. There is established within the General Fund the "Sexual Harassment and Abuse Survivor Fund" as a nonlapsing revolving fund in the Department of the Treasury. Monies deposited in the fund shall be utilized by the State Treasurer exclusively for the purposes of funding any liability of a municipality, county, or school district to a sexual harassment or abuse survivor for a claim of the survivor pursuant to P.L.2019, c.120 (C.2A:14-2a et al.).

b. If a judgement, or an order approving a settlement, is rendered by a court of competent jurisdiction against a municipality, county, or school district that requires compensation to be provided for a claim pursuant to P.L.2019, c.120 (C.2A:14-2a et al.), the governing body or board of education, as applicable, may, by resolution, apply to the State Treasurer to obtain the funding necessary from the "Sexual Harassment and Abuse Survivor Fund" to compensate the municipality, county, or school district for the amount of liability incurred. In order to be eligible for a payment from the fund, the resolution shall be adopted no later than 90 days following the date when the judgment, or order approving the settlement, is rendered.

c. In accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), the State Treasurer may adopt the rules and regulations necessary to effectuate the purposes of this section.

2. a. If a judgement, or an order approving a settlement, is rendered by a court of competent jurisdiction, against a school district, that requires compensation to be provided for a claim pursuant to P.L.2019, c.120 (C.2A:14-2a et al.), the board of education may raise the necessary funding pursuant to N.J.S.18A:22-21 or N.J.S.18A:22-40, as applicable, for the purpose of satisfying the liability, except that the approval of the board of school estimate or the voters pursuant to N.J.S.18A:22-21 or N.J.S.18A:22-41, as appropriate, shall not be required.

b. In accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), the Commissioner of Education may adopt the rules and regulations necessary to effectuate the purposes of this section.

3. a. If a judgement, or an order approving a settlement, is rendered by a court of competent jurisdiction, against a local unit, that requires compensation to be provided for a claim pursuant to P.L.2019, c.120 (C.2A:14-2a et al.), the governing body may adopt a resolution declaring a special emergency for the purpose of funding the liability. The resolution shall be adopted no later than 90 days following the date when the judgment, or order approving the settlement, is rendered. No resolution adopted pursuant to this section shall take effect without the approval of the Local Finance Board. The special emergency may be funded for up to three years pursuant to the provisions of either section 3 of P.L.1961, c.22 (C.40A:4-55.3) or section 4 of P.L.1961, c.22 (C.40A:4-55.4).

b. In accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), the Director of the Division of Local Government Services in the Department of Community Affairs may adopt the rules and regulations necessary to effectuate the purposes of this section.

4. This act shall take effect immediately.

STATEMENT

This bill authorizes special financing by municipalities, counties, and school districts to compensate sexual harassment and abuse survivors, and establishes the "Sexual Harassment and Abuse Survivor Fund" in the Department of Treasury.

This bill would establish in the General Fund the "Sexual Harassment and Abuse Survivor Fund" as a nonlapsing revolving fund in the Department of the Treasury. Monies deposited in the fund would be used exclusively for the funding of any liability of a municipality, county, or school district to a sexual harassment or abuse survivor for a claim of the survivor pursuant to P.L.2019, c.120 (C.2A:14-2a et al.), a recently-enacted statute that has expanded the statute of limitations for such claims.

Following a judgement or settlement against a municipality, county, or school district, that requires compensation for a claim pursuant to P.L.2019, c.120 (C.2A:14-2a et al.), the bill permits the governing body or board of education to apply to the State Treasurer to obtain the funding necessary from the "Sexual Harassment and Abuse Survivor Fund" to compensate for the amount of liability incurred. In order to obtain a payment from the fund, the bill requires the resolution to be adopted no later than 90 days following the date when the judgment, or order approving the settlement, is rendered.

The bill would permit the governing body of a municipality or county to adopt a resolution declaring a special emergency for the purpose of funding sexual harassment and abuse survivor liability arising pursuant to P.L.2019, c.120 (C.2A:14-2a et al.). The resolution would be adopted no later than 90 days following the date when the judgment, or order approving the settlement, is rendered. This resolution would not take effect without approval of the Local Finance Board, and would be funded for up to three years through the issuance of special emergency notes.

Finally, when a judgement, or an order approving a settlement, is rendered against a school district, that requires compensation to be provided for a claim pursuant to P.L.2019, c.120 (C.2A:14-2a et al.), the bill permits the board of education to raise the necessary funding pursuant to financing mechanisms available under N.J.S.18A:22-21 or N.J.S.18A:22-40, for the purpose of satisfying the liability. Approval of this financing from the board of school estimate or the voters would not be required.