Bill Text: NJ S2294 | 2012-2013 | Regular Session | Introduced
Bill Title: Permits surety companies to issue blanket bonds for certain local government officers and employees; applies rating criteria and underwriting standards to blanket bond coverage.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2012-11-29 - Substituted by A1968 (1R) [S2294 Detail]
Download: New_Jersey-2012-S2294-Introduced.html
Sponsored by:
Senator NIA H. GILL
District 34 (Essex and Passaic)
SYNOPSIS
Permits surety companies to issue blanket bonds for certain local government officers and employees; applies rating criteria and underwriting standards to blanket bond coverage.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning blanket bonds for certain local officers and employees and amending P.L.1967, c.283 and N.J.S.40A:5-36.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 1 of P.L.1967, c.283 (C.40A:5-34.1) is amended to read as follows:
1. The board of chosen freeholders of any county or the governing body of any municipality, as the case may be, may provide by blanket bond for the bonding of certain county or municipal officers and employees for faithful performance and discharge of their duties. Blanket bond coverage may be by one or more blanket bonds issued by a surety company or companies or one or more underwriters or by a joint insurance fund established pursuant to P.L.1983, c.372 (C.40A:10-36 et seq.) of which the county or municipality is a member. Blanket bond coverage may be provided by a surety company or companies or one or more underwriters in lieu of an individual bond as to any officer or employee required by law to be bonded, [except] including treasurers and tax collectors, by whatever title known, and [except] municipal court judges and administrators, provided the blanket bond meets the requirements for the individual bond in amount, rights of cancellation, and the governmental agencies in whose favor it runs; and further provided the coverage under the blanket bond for the individuals holding any of the specifically named aforementioned positions shall be subject to the application of individual rating criteria and underwriting standards that consider the risk and potential liability presented by the individuals covered by the blanket bond as if the individuals were covered by an individual bond. Blanket bond coverage may be provided by a joint insurance fund in lieu of an individual bond as to any officer or employee required by law to be bonded, including treasurers and tax collectors, by whatever title known, and municipal court judges and administrators, provided the blanket bond meets the requirements for the individual bond in amount, rights of cancellation, and the governmental agencies in whose favor it runs; and further provided the coverage under the blanket bond for the individuals holding any of the specifically named aforementioned positions shall be subject to the application of individual rating criteria and underwriting standards that consider the risk and potential liability presented by the individuals covered by the blanket bond as if the individuals were covered by an individual bond.
Whenever a copy of an individual bond is required by law to be filed with or supplied to specified officers, evidence of blanket bond coverage filed with or supplied to such officers by the board of chosen freeholders or governing body shall be compliance with such requirement.
(cf: P.L.2006, c.50, s.1)
2. N.J.S.40A:5-36 is amended to read as follows:
40A:5-36. Every bond given by a municipal court judge or administrator of a municipal court as hereinafter provided shall be for the protection of the State, the county and the municipality or, in the case of an intermunicipal court, the municipalities, and also for the protection of defendants, litigants, bondsmen and all other persons in interest. A bond pursuant to this section may be provided by a surety company authorized to do business in New Jersey or by a joint insurance fund through blanket bond coverage pursuant to section 1 of P.L.1967, c.283 (C.40A:5-34.1).
(cf: P.L.2006, c.50, s.2)
3. This act shall take effect immediately.
STATEMENT
This bill permits surety companies to issue blanket bonds that cover municipal treasurers, tax collectors, municipal court judges, and municipal court administrators. Currently, these officers and employees cannot be covered under a blanket bond issued by a surety company.
The bill also provides that as to blanket bond coverage provided by surety companies or joint insurance funds for the county and municipal officers and employees as specified in the bill, coverage shall be subject to the application of individual rating criteria and underwriting standards that consider the risk and potential liability presented by the individuals covered by the blanket bond as if the individuals were covered by an individual bond.
This bill is intended to increase competition in the blanket bond market, thereby helping to reduce costs for local property taxpayers.
