Bill Text: NJ A4644 | 2022-2023 | Regular Session | Introduced
Bill Title: Implements recommendations of State Comptroller report on municipal sick leave, vacation leave, and supplemental payment policies; establishes certain financial penalties.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2022-09-29 - Reported out of Asm. Comm. with Amendments, and Referred to Assembly State and Local Government Committee [A4644 Detail]
Download: New_Jersey-2022-A4644-Introduced.html
Sponsored by:
Assemblyman ROY FREIMAN
District 16 (Hunterdon, Mercer, Middlesex and Somerset)
Assemblyman PAUL D. MORIARTY
District 4 (Camden and Gloucester)
SYNOPSIS
Implements recommendations of State Comptroller report on municipal sick leave, vacation leave, and supplemental payment policies; establishes certain financial penalties.
CURRENT VERSION OF TEXT
As introduced.
An Act related to municipal sick leave and vacation leave policies and supplementing various parts of the statutory law.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. The Division of Local Government Services in the Department of Community Affairs shall undertake a comprehensive review of the persons excluded from the definitions of "officer or employee" under sections 42, 43, and 45 of P.L.2007, c.92 (C.11A:6-19.1, C.40A:9-10.2, and C.40A:9-10.3) and shall prepare and distribute a report to the Governor and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), to the Legislature, setting forth recommendations for continuing or modifying the persons excluded under the above referenced provisions of law.
2. Notwithstanding any provisions of the "New Jersey Employer-Employee Relations Act," P.L.1941, c.100 (C.34:13A-1 et seq.), or of any other law to the contrary:
a. contractual provisions regarding accumulation of unused sick leave and the accumulation of unused vacation leave, and supplemental compensation for accumulated unused sick leave and accumulated unused vacation leave, shall be consistent with the provisions of sections 42 through 46 of P.L.2007, c.92 (C.11A:6-19.1 et al.) and of P.L.2010, c.3 (C.11A:6-19.2 et al.); and
b. the terms and conditions of employment set forth by sections 42, 43, and 45 of P.L.2007, c.92 (C.11A:6-19.1, C.40A:9-10.2, and C.40A:9-10.3) and by P.L.2010, c.3 (C.11A:6-19.2 et al.) shall not be diminished by entry into a collectively negotiated agreement or adoption of a policy manual.
3. The Director of the Division of Local Government Services in the Department of Community Affairs shall, in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), adopt rules and regulations as the director deems necessary to clarify and implement the provisions of sections 42, 43, and 45 of P.L.2007, c.92 (C.11A:6-19.1, C.40A:9-10.2, and C.40A:9-10.3) and of P.L.2010, c.3 (C.11A:6-19.2 et al.). The director shall, by adoption of rules and regulations, impose accountability measures to ensure compliance with sections 42, 43, and 45 of P.L.2007, c.92 (C.11A:6-19.1, C.40A:9-10.2, and C.40A:9-10.3) and P.L.2010, c.3 (C.11A:6-19.2 et al.), which may require an appropriate local official to certify that the requirements of sections 42, 43, and 45 of P.L.2007, c.92 (C.11A:6-19.1, C.40A:9-10.2, and C.40A:9-10.3) and P.L.2010, c.3 (C.11A:6-19.2 et al.) are enforced.
4. a. (1) The governing body of a municipality that has established an employee supplemental payment policy or policies prior to the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) shall publish the policy or policies as provided for pursuant to paragraph (3) of this subsection.
(2) The governing body of a municipality that proposes to establish or modify an employee supplemental payment policy shall publish the policy or policies, or proposed modifications, as provided for pursuant paragraph (3) of this subsection.
(3) A municipality that maintains an Internet website shall publish for public inspection a supplemental payment policy, as described pursuant to paragraph (1) or (2) of this subsection, on the municipality's Internet website. A municipality that does not maintain an Internet website shall submit the supplemental payment policy or proposed supplemental payment policy to the Department of Community Affairs for publication on the department's Internet website. The department shall publish supplemental payment policies received pursuant to this paragraph on the department's Internet website.
b. A municipal governing body shall individually approve each supplemental payment for each municipal employee pursuant to a supplemental payment policy by resolution of the governing body at a public meeting where the proposed action and public comments on the proposed action shall be considered by the governing body.
c. (1) The governing body of a municipality that maintains an employee supplemental payment policy shall not approve a payment for an employee pursuant subsection b. of this section, unless the municipality publishes the proposed resolution and documentation supporting the supplemental payment, together with notice of the date, time, place, purpose of the meeting, in a newspaper of general circulation in the municipality once each week for two consecutive weeks. The final publication shall be not less than twenty days prior to the date set for the meeting. Each publication shall also include information related to the times and places where additional supporting documentation shall be available for public inspection at no charge, including any advisory documents providing rationale for the supplemental payment policy and the individual proposed payment, along with any additional documentation relevant to the proposed payment.
(2) A municipality that publishes a notice pursuant to this subsection and maintains an Internet website, shall publish the additional supporting documentation, as described in paragraph (1) of this subsection, for public inspection on the municipality's Internet website. A municipality that does not maintain an Internet website shall submit the additional supporting documentation to the Department of Community Affairs for publication on the department's Internet website. The department shall publish additional supporting documentation received pursuant to this paragraph on the department's Internet website.
d. For the purposes of this section "supplemental payment" means a payment to an employee of a municipality in excess of the employee's regular compensation or reimbursement to the employee for actual costs incurred by the employee related to the person's employment with the municipality.
5. a. If the Division of Local Government Services determines that a municipality has violated a provision of sections 42, 43, and 45 of P.L.2007, c.92 (C.11A:6-19.1, C.40A:9-10.2, and C.40A:9-10.3), P.L.2010, c.3 (C.11A:6-19.2 et al), or P.L. , c. (C. ) (pending before the Legislature as this bill), the division shall as a penalty for noncompliance annually withhold the amount of consolidated municipal property tax relief aid or energy tax receipts property tax relief aid, or both, otherwise available to the municipality, in the current or subsequent budget year, by the amount sufficient to cover the cost of payments that the municipality improperly paid to its officers or employees. Alternatively, if a municipality is not eligible for aid or if the consolidated municipal property tax relief aid or energy tax receipts property tax relief aid, or both, are not reduced, as described pursuant to this section, sufficient to cover the amount the municipality improperly paid to its officers or employees, the division may prohibit the municipality from raising revenue through the property tax levy, as described pursuant to section 10 of P.L.2007, c.62 (C.40A:4-45.45), above the rate set by the municipality in the most recent fiscal year until such time as the division determines that the municipality is in compliance with the provisions of sections 42, 43, and 45 of P.L.2007, c.92 (C.11A:6-19.1, C.40A:9-10.2, and C.40A:9-10.3), P.L.2010, c.3 (C.11A:6-19.2 et al), and P.L. , c. (C. ) (pending before the Legislature as this bill.
b. In making a determination pursuant to subsection a. of this section, the Division of Local Government Services shall deem an action of a municipality to be consistent with the provisions of sections 42, 43, and 45 of P.L.2007, c.92 (C.11A:6-19.1, C.40A:9-10.2, and C.40A:9-10.3), P.L.2010, c.3 (C.11A:6-19.2 et al), or P.L. , c. (C. ) (pending before the Legislature as this bill), if:
(1) for an action by the municipality related to an employee who is not subject to an applicable collective bargaining agreement of the municipality, the action was taken within the six months immediately following the adoption of rules and regulations pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill; or
(2) for an action by the municipality related to an employee who is subject to an applicable collective bargaining agreement of the municipality, the action taken was required pursuant to an applicable collective bargaining agreement that was entered into by the municipality before, or within the six months immediately following, the adoption of rules and regulations pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill.
6. This act shall take effect on the first day of the sixth month next following enactment, except the Director of the Division of Local Government Services in the Department of Community Affairs may take any anticipatory administrative action in advance as shall be necessary for the implementation of this act.
STATEMENT
This bill would implement recommendations for legislation that are set forth in the State Comptroller's July 2022 report: "A Review of Sick and Vacation Leave Policies in New Jersey Municipalities." Sections 42, 43, and 45 of P.L.2007, c.92 (C.11A:6-19.1, C.40A:9-10.2, and C.40A:9-10.3), subsequently referred to as "the P.L.2007, c.92 provisions", imposed a limit on the amount of supplemental compensation that a political subdivision of the State may pay to a local officer or employee. However, the 2007 enactment excluded certain local officers and employees from the supplemental compensation limitation.
Section 1 of the bill would require the Division of Local Government Services in the Department of Community Affairs to undertake a comprehensive review of the persons excluded from the definitions of "officer or employee" under the P.L.2007, c.92 provisions and to prepare and distribute a report to the Governor and the Legislature setting forth recommendations for continuing or modifying the persons excluded under the above referenced provisions of law.
Section 2 of the bill would prohibit municipalities from entering into contractual provisions regarding the accumulation of sick leave and the accumulation of unused vacation leave, and the payment of supplemental compensation for accumulated sick leave and accumulated unused vacation leave, unless the contractual provisions are consistent with the P.L.2007, c.92 provisions and of P.L.2010, c.3 (C.11A:6-19.2 et al.). Section 2 also prohibits municipalities from diminishing the terms and conditions of employment set forth by the P.L.2007, c.92 provisions and by P.L.2010, c.3 (C.11A:6-19.2 et al.) through entrance into a collectively negotiated agreement or adoption of a policy manual.
Section 3 of the bill would require the Director of the Division of Local Government Services in the Department of Community Affairs to adopt rules and regulations deemed necessary to clarify and implement the P.L.2007, c.92 provisions and of P.L.2010, c.3 (C.11A:6-19.2 et al.). This section specifically requires the director to adopt rules and regulations imposing accountability measures to ensure compliance with the P.L.2007, c.92 provisions and P.L.2010, c.3 (C.11A:6-19.2 et al) which may require an appropriate local official to certify that the requirements of the P.L.2007, c.92 provisions and P.L.2010, c.3 (C.11A:6-19.2 et al.) are enforced.
Section 4 of the bill would require municipalities to electronically publish supplemental payment policies for municipal employees on the Internet. This section would also require a municipal governing body to approve any supplemental payment to any individual municipal employee by resolution of the governing body at a public meeting. This section would further require that the municipality: 1) provide advanced notice of the date, time, place, and purpose of the public meeting, and 2) make supporting documentation for the supplemental payment accessible, both as provided for in the bill.
Section 5 of the bill would require the Division of Local Government Services, upon the division's determination that a municipality has violated a provision of this bill, the P.L.2007, c.92 provisions, or P.L.2010, c.3 (C.11A:6-19.2 et al), to annually withhold, as a penalty for noncompliance, the amount of State aid otherwise available to the municipality, in the current or subsequent budget year, by the amount the municipality improperly paid to its officers or employees. Alternatively, if a municipality is not eligible for State aid sufficient to cover the amount the municipality improperly paid to its officers or employees or if State aid is not reduced, the bill authorizes the division to prohibit the municipality from raising revenue through the property tax levy until such time as the division determines that the municipality is in compliance with the provisions of this bill, the P.L.2007, c.92 provisions, and P.L.2010, c.3 (C.11A:6-19.2 et al). The bill specifies certain actions of a municipality would not constitute a violation under the bill.
The bill would take effect on the first day of the sixth month after enactment.
