October 8, 2012
This is a status report provided by the New Jersey State Bar Association on recently passed and pending legislation, regulations, gubernatorial nominations and/or appointments of interest to lawyers. To obtain a complete copy of the Capitol Report, and/or retrieve a previous Capitol Report, please visit www.njsba.com.
The New Jersey State Bar Association recognizes all the members who assist in the ongoing legislative process.
NJSBA ACTION IN TRENTON
A-1543 (Burzichelli) (NJSBA supports) Creates the Revised Uniform Limited Liability Company Act. This bill repeals the New Jersey Limited Liability Company Act and replaces it with a more modern regulatory scheme for creation and operation of limited liability companies (LLCs) in New Jersey. LLC is a relatively new form of unincorporated business organization that provides corporate-style limited liability to its owners, while affording the owners the partnership-like capacity to structure the entity by agreement rather than as prescribed by statute. The Revised Uniform Limited Liability Company Act (RULLCA), as developed by the National Conference of Commissioners on Uniform State Laws (NCCUSL), is a significant advancement in this area of the law. The revisions included in this modern statute will encourage businesspeople to form their LLCs in New Jersey rather than in other states.
The NJSBA fully supports the bill. There are many benefits to the legislation, including enhanced ease and flexibility with streamlined methods for domestication (e.g., allowing an LLC formed under the laws of another state to become a New Jersey LLC) and conversion (e.g., allowing a corporation to become an LLC). In short, adopting a modern statute such as RULLCA will help New Jersey improve its reputation as a good state in which to do business, and without any cost to its taxpayers.
Gianfranco Pietrafesa, past chair of the NJSBA Business Law Section, and section directors Ira Marcus and Denise Walsh were instrumental in securing the bill’s passage, meeting with prospective sponsors; testifying before the Senate Commerce Committee and the Assembly Regulatory Oversight and Gaming Committee; and meeting with the Governor’s Counsel’s Office.
On Sept. 19, 2012, the bill was signed by Governor Chris Christie.
S-1755 (Madden) (NJSBA supports) Establishes the New Jersey Adult Guardianship and Protective Proceedings Jurisdiction Act. This bill launches uniform procedures designed to address interstate conflicts regarding adult guardianship issues. The purpose of the bill is to provide a mechanism for consistent resolution of those cases where an adult is subject to guardianship proceedings in more than one state, or in a state and another country, where he has contacts or property in each place. The bill sets forth procedures regarding sharing information between courts concerning guardianship and protective proceedings. Such information includes: testimony; evidence; evaluations and assessments; transcripts; and medical, financial, criminal or other relevant material.
The NJSBA strongly supports this bill, which helps standardize important jurisdictional issues with respect to adult guardianships, conservatorships, and other protective proceedings, providing an effective mechanism for resolving multi-state jurisdictional disputes. This bill will also provide uniformity and reduce conflicts between states. Because of the current absence of ways to resolve these typical interstate jurisdictional quandaries, widespread passage of the act throughout the United States should result in significant judicial economy, reduction in litigation, and conservation of the ward’s estate.
In connection with the bill, Sharon Rivenson Mark, former chair of the NJSBA’s Elder Law Section, testified on behalf of the state bar and Marilyn Askin, also a former chair of the section, testified on behalf of the NJ Chapter of the NJ of the American Association of Retired Persons. Additionally, section member Meredith Grocott met with a prospective bill sponsor on NJSBA’s behalf and also testified on the behalf of the NJ Guardian Association.
On Aug. 18, 2012, the bill was signed by Governor Chris Christie.
ACTION IN TRENTON
S-1926 (PDF) (Greenstein)/S-2022 (PDF) (Madden)/A-2652 (PDF) (Eustace) (NJSBA supports) (NJSBA-drafted) Bans charging workers' compensation claimants for medical expenses, gives the Division of Workers' Compensation sole jurisdiction over work-related medical claims. The NJSBA supports this legislation, which would to clarify that authorized medical providers should not be billing injured workers beyond the payments those medical providers are receiving from the insurance carrier/respondent. On Sept. 20, 2012, former Workers Compensation Section Chair Arthur Kravitz, of Stark and Stark, testified in support of this NJSBA-drafted legislation, which was reported out of Senate Labor Committee and is awaiting Senate vote.
A-700 (Ramos) (NJSBA supports) Authorizes the Office of Public Defender to provide legal representation for a child in proceedings after parental rights have been terminated. On Sept. 27, 2012, A-700 was released from the Assembly Judiciary Committee and referred to Assembly Appropriations Committee.
ON THE GOVERNOR’S DESK
A-578 (Wagner) Creates the Good Samaritan Emergency Response Act; eliminates criminal liability for persons who seek medical assistance in response to a drug overdose.
A-2024 (Ciattarelli) Permits certain military funeral buglers to receive the New Jersey Honor Guard Ribbon.
A-1688 (Russo) Prohibits public institutions of higher education from permitting direct solicitation of students for credit card accounts. On Sept. 24, 2012, the bill was released from the Assembly Higher Education Committee and is awaiting Senate vote.
A-3123 (Diegnan) Revises the law concerning derivative proceedings and shareholder class actions. On Sept. 24, 2012, the bill was released from the Assembly Commerce and Economic Development Committee with amendments and is awaiting Senate vote.
Child Welfare Law
A-1902 (Rumana) Creates Tabitha's Law; requires a parent or guardian to notify school administrators if a pupil will be absent; requires the school to notify a parent in the event of an unexcused pupil absence. On Sept. 24, 2012, the bill was reviewed by the Senate Education Committee.
A-1657 (Johnson) Requires mandatory sexual violence training for law enforcement, judicial and prosecutorial personnel. On Sept. 24, 2012, the bill was released from the Assembly Law and Public Safety Committee with amendments and is awaiting Senate vote.
A-2131 (Burzichelli) Authorizes the release of sex offender registration information to the Department of Human Services and county welfare agencies. On Sept. 24, 2012, the bill was released from the Assembly Law and Public Safety Committee and is awaiting Senate vote.