New Jersey State Bar Association - The voluntary Bar Association of New Jersey, serving members since 1899.

Captiol Report

September 19, 2011

This is a status report on recently passed and pending legislation, regulations, gubernatorial nominations and/or appointments of interest to lawyers. The report may also include information about appearances of NJSBA representatives before legislative committees, and the involvement of the NJSBA as amicus in appellate court matters. The government affairs department of the association compiles the report. Following each bill number is the sponsor’s name, the NJSBA position, if any, bill description and status. Full and previous versions of the Capitol Report with links to related text are available online at www.njsba.com.

Regulatory Matters

Below please find proposed regulations with a deadline for comment of Nov. 5 unless otherwise noted:

HEALTH AND HOSPITAL LAW

N.J.A.C. 8:56-1.1, 1.2, 2.3, 2.4, 2.7 and 3.1 Proposes amendments to Department of Health and Senior Services rules regarding healthcare facility infection reporting.

HIGHER EDUCATION

N.J.A.C. 9A:10-6.5, 6.8, 6.11, 6.12 and 6.13 Proposes amendments to Higher Education Student Assistance Authority rules regarding student loan and college savings programs; specifically, policies and procedures for the New Jersey College Loans to Assist State Students (NJ CLASS) Program.

INSURANCE LAW

N.J.A.C. 11:1-34.6 (PDF) Proposes amendments to Department of Banking and Insurance rules regarding eligibility for exportable lists, which are certain lines or classes of insurance when there is no reasonable or adequate market among authorized carriers.

N.J.A.C. 11:28 (PDF) Proposes new Department of Banking and Insurance rules to implement P.L. 2011, c. 25 (N.J.S.A. 17:47B-1 et seq.), which governs and authorizes the department to regulate captive insurers. Captive insurance companies are insurance companies established with the specific objective of financing risk emanating from their parent group or groups.

LABOR AND EMPLOYMENT LAW

N.J.A.C. 12:15-1.2, 1.3, 1.4, 1.5, and 1.6 (PDF) Proposes amendments to Labor and Workforce Development rules to establish the 2012 maximum weekly benefit rate for benefits under the Unemployment Compensation Law and for state plan temporary disability and family leave insurance benefits under the Temporary Disability Benefits Law, and establish the 2012 taxable wage base for the purpose of contributions under the Unemployment Compensation Law. A public hearing on the proposed amendment will be held on Oct. 25 at 10 a.m. Call the Office of Legal and Regulatory Services at 609-292-2789 for details or to be included on the list of speakers.

N.J.A.C. 12:235-1.6 (PDF) Proposes amendments to Division of Workers’ Compensation rules regarding 2012 maximum workers’ compensation benefit rates for temporary disability, permanent total disability, permanent partial disability and dependency under the Workers' Compensation Law. The proposed amendment will increase the weekly benefit rate from $ 792 to $ 810. The 2012 maximum benefit rate represents a 2.3 percent increase in the current maximum benefit rate. A public hearing on the proposed amendment will be held on Oct. 25 at 10 a.m. Call the Office of Legal and Regulatory Services at 609-292-2789 for details or to be included on the list of speakers.

SCHOOL LAW

N.J.A.C. 19:34B Provides changes to New Jersey Schools Development Authority rules to implement Section 13.e of the Educational Facilities Construction and Financing Act, as amended by Section 24 of P.L.2004,c.137, by which the School Development Authority (SDA) will determine the capacity of an SDA school district to manage a school facilities project or projects after the school district has been found by the Commission of Education to be eligible for SDA consideration.

The following rules were recently adopted:

CRIMINAL LAW

N.J.A.C. 13:59 (PDF) Readopts Division of State Police rules regarding criminal history records and background checks.

ENVIRONMENTAL LAW

N.J.A.C. 7:27, 7:27A, 7:27B and 7:27C Provides notice of administrative corrections to environmental management rules regarding air pollution control, air administrative procedures, sampling and analytical procedures, and the CO2 Budget Trading Program.

HEALTH AND HOSPITAL LAW

N.J.A.C. 8:43E-11 Provides changes to Department of Health and Senior Services rules regarding violence prevention in healthcare facilities.

N.J.A.C. 8:43E-12 Provides changes to Department of Health and Senior Services rules regarding safe patient handling.

INSURANCE LAW

N.J.A.C.11:4-61 (PDF) Adopts new Department of Banking and Insurance rules regarding retained asset accounts and other life settlement options.

N.J.A.C. 11:10 and N.J.A.C 11:10-1.13, and 11:10 Appendices A and B (PDF) Provides changes to Department of Banking and Insurance rules regarding dental services.

LABOR AND EMPLOYMENT LAW

N.J.A.C. 12:56 Readopts Labor and Workforce Development rules regarding wage and hour rules.

N.J.A.C. 12:56-6.1 and 12:56-7 Provides changes to Labor and Workforce Development rules concerning exemption from overtime for bona fide executive, administrative, professional and outside sales employees.

LOCAL GOVERNMENT LAW

N.J.A.C. 5-34-5.4 Provides notice of administrative corrections to Division of Local Government Services rules regarding local public contracts and procedures for certain contracting units without a qualified purchasing agent to temporarily increase their bid threshold to $26,000.

REAL PROPERTY TRUST AND ESTATE LAW

N.J.A.C. 5:80-33.2, 33.4 through 33.8, 33.12, 33.15, 33.16, 33.19, 33.22, 33.24, 33.26, 33.32, 33.33 and 33.34 (PDF) Adopts amendments to the New Jersey Housing and Mortgage Finance Agency rules regarding low-income housing tax credits.

SCHOOL LAW

N.J.A.C. 6a:27-4.1, 4.2 and 6.4 (PDF) Provides changes to State Board of Education rules regarding student transportation.

Public Notices

NOTICE OF THE IMPOSITION OF A SURCHARGE FOR RECOUPMENT OF THE PROPERTY-LIABILITY INSURANCE GUARANTY ASSOCIATION ASSESSMENT

Take notice that the commissioner of Banking and Insurance issued Order No. A11-109 (PDF) on Aug. 10, 2011, which provides that every member insurer of the New Jersey Property-Liability Insurance Guaranty Association that has paid an assessment to the association due Sept. 15, 2011, may impose upon policyholders a surcharge, in an amount not to exceed 0.9 percent of the net direct written premiums per annum, for all kinds of insurance written by the member insurer except life insurance, accident and health insurance, workers' compensation insurance, title insurance, annuities, surety bonds, credit insurance, mortgage guaranty insurance, municipal bond coverage, fidelity insurance, investment return assurance, ocean marine insurance and pet health insurance. The surcharge may be applied to policies that are issued or renewed on or after Oct. 1, 2011. Copies of the order were distributed to all member insurers of the association. The order may be viewed at the department’s website at www.njdobi.org.

Note: "Under review by the NJSBA" means that the bill is currently being examined by NJSBA sections, committees and/or Board of Trustees and a final position has not yet been reached on the measure.