ASSEMBLY FINANCIAL INSTITUTIONS AND INSURANCE COMMITTEE

 

STATEMENT TO

 

[First Reprint]

SENATE, No. 1368

 

with committee amendments

 

STATE OF NEW JERSEY

 

DATED:  JUNE 23, 2022

 

      The Assembly Financial Institutions and Insurance Committee reports favorably Senate Bill No. 1368 (1R), with committee amendments.

      As amended, this bill requires the owner of a business or the owner of a rental unit or units to maintain a liability insurance policy, including, but not limited to, commercial general liability insurance, personal liability, or an umbrella insurance policy for negligent acts in an amount of no less than $500,000 for combined property damage and bodily injury to or death of one or more persons in any one accident or occurrence.

      The bill separately requires an owner of a multifamily home which is four or fewer units, one of which is owner-occupied, to maintain liability insurance for negligent acts and omissions in an amount of no less than $300,000 for combined property damage and bodily injury to or death of one or more persons in any one accident or occurrence.

      The bill requires the owner of a business, rental unit or units, or multi-family home of four or fewer units, to annually register the certificate of insurance demonstrating compliance with the bill with the municipality in which the business, rental units, or multi-family home is located.  In addition, the governing body of a municipality is permitted to establish, by ordinance, a reasonable administrative fee for the certificate of registration required under the bill for properties located in the municipality and allowing municipalities to collect fines of not less than $500 but no more than $5,000 against an owner who fails to comply with the provisions of this bill.

      As amended and reported, this bill is identical to Assembly Bill No. 2687, as also amended and reported by the committee.

 

COMMITTEE AMENDMENTS:

      The committee amended the bill to:

      (1)  require the owner of a business, rental unit or units, or multi-family home of four or fewer units, to annually register the certificate of insurance demonstrating compliance with the bill with the municipality in which the business, rental units, or multi-family home is located;

      (2)  allow the governing body of a municipality to establish, by ordinance, a reasonable administrative fee for the certificate of registration required under the bill for properties located in the municipality and allowing municipalities to collect fines of not less than $500 but no more than $5,000 against an owner who fails to comply with the provisions of the bill; and

      (3)  make a technical change.