Bill > S4875

This bill, known as the "Citizens Fund Act," establishes a trust fund to facilitate the conveyance of certain public entity assets for the benefit of public benefit plans, which are State-administered retirement and other public pension and post-employment benefit plans. The act defines various terms, including "asset" (which can be real or personal property, rights, or interests), "asset conveyance" (the transfer of ownership to the trust fund), and "public entity" (any level of government or its agencies). The core of the bill is the creation of the Citizens Fund, managed by a five-member board appointed by the Governor, to hold these conveyed assets. The purpose of the fund is to lessen government burdens by allowing public entities to transfer revenue-producing assets, thereby sharing risks and benefits and maximizing asset performance. The fund's assets are to be maintained separately and used solely for the fund's objectives, including benefiting members and retirees of public benefit plans. Public entities can convey assets to the fund through a transfer agreement, which must be approved by both the public entity and the fund board. The bill also outlines procedures for valuing these assets through qualified independent valuation agents and establishes a Common Pension Fund within the Department of the Treasury to manage the financial aspects of these conveyances, including holding and investment accounts for the benefit of retirement systems. The act also amends existing laws related to water and wastewater asset sales and leases to incorporate the Citizens Fund as a potential recipient of such assets under specific circumstances, while exempting the Citizens Fund from certain procedural requirements related to those transactions.

Budget and Finance

https://www.njleg.state.nj.us/bill-search/2024/S4875