Bill Text: NJ A3625 | 2010-2011 | Regular Session | Introduced
Bill Title: Limits annual fee increases in shared service agreement to 2 percent.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2011-12-15 - Substituted by S441 (1R) [A3625 Detail]
Download: New_Jersey-2010-A3625-Introduced.html
Sponsored by:
Assemblywoman LINDA STENDER
District 22 (Middlesex, Somerset and Union)
SYNOPSIS
Limits annual fee increases in shared service agreement to 2 percent.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning agreements for shared services and amending P.L.2007, c.63.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 4 of P.L.2007, c.63 (C.40A:65-4) is amended to read as follows:
4. a. (1) Any local unit may enter into an agreement with any other local unit or units to provide or receive any service that each local unit participating in the agreement is empowered to provide or receive within its own jurisdiction, including services incidental to the primary purposes of any of the participating local units.
(2) Notwithstanding any law, rule or regulation to the contrary, any agreement between local units for the provision of shared services shall be entered into pursuant to sections 1 to 37 of P.L.2007, c.63 (C.40A:65-1 et al.); provided, however, that agreements regarding shared services that are otherwise regulated by statute, rule, or regulation are specifically excluded from sections 1 to 37 of P.L.2007, c.63 (C.40A:65-1 et al.).
(3) The board is authorized to render a decision in the determination of the statutory basis under which a specific shared service is governed.
b. Any agreement entered into pursuant to this section shall be filed, for informational purposes, with the Division of Local Government Services in the Department of Community Affairs, pursuant to rules and regulations promulgated by the director.
c. Any agreement entered into pursuant to this section shall contain a provision limiting any annual increase in fees under the agreement or annual renewals or extensions of the agreement to be paid through the property tax to two percent or the amount permitted by the voters of each local unit which is a party to the shared services agreement at a referendum held pursuant to subsection b. of section 11 of P.L.2007, c.62 (C.40A:4-45.46).
(cf: P.L.2007, c.63, s.4)
2. This act shall take effect immediately and shall be applicable to shared service agreements executed after the date of enactment.
STATEMENT
This bill provides that in the case of a shared service agreement between local units as set forth in the "Uniform Shared Services and Consolidation Act," any agreement shall contain a provision limiting any annual increase in fees under the agreement or annual renewals or extensions of the agreement to be paid through the property tax to two percent of the total amount paid pursuant to the agreement. The bill allows an increase in a shared services agreement to exceed the two percent cap only if the increase has been approved by the voters of each local unit that is a party to the agreement.
The bill is consonant with the provisions of chapter 44 of P.L.2010, which reduced the permitted annual increase in a local unit's adjusted tax levy from four percent to two percent. That law also eliminated the local unit's ability to request a waiver from the levy cap from the Local Finance Board. These amendments make this bill consistent with the two percent levy cap law enacted in July of 2010.
