This bill mandates that boards of education and local contracting units in New Jersey procure insurance products and consulting services through a competitive contracting process, as outlined in existing law. It establishes that insurance consultants must be compensated directly by the contracting unit at a fixed amount or hourly rate, prohibiting any commission or compensation from insurers. The bill also introduces certification and disclosure requirements for both insurance consultants and insurers regarding their compensation practices, ensuring that their interests align with those of the contracting units.

Additionally, the bill enhances the request for proposal (RFP) process by requiring more comprehensive documentation, including compensation terms and penalties for violations, and mandates that RFP notices be published in multiple outlets well in advance of contract commencement. It also stipulates that proposals must be submitted at least 30 days prior to the contract start date and that a minimum of three proposals must be obtained. By enforcing these measures, the bill aims to promote transparency, reduce costs, and prevent potential conflicts of interest in the procurement of insurance services, ultimately benefiting taxpayers.