Bill Text: NJ A571 | 2012-2013 | Regular Session | Introduced
Bill Title: Modifies State's role in local unit consolidations.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2012-01-10 - Introduced, Referred to Assembly Housing and Local Government Committee [A571 Detail]
Download: New_Jersey-2012-A571-Introduced.html
STATE OF NEW JERSEY
215th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2012 SESSION
Sponsored by:
Assemblywoman CONNIE WAGNER
District 38 (Bergen and Passaic)
SYNOPSIS
Modifies State's role in local unit consolidations.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel
An Act concerning local unit consolidations and amending P.L.1977, c.435, P.L.2007 c.63, and P.L.2007, c.54.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 3 of P.L.1977, c.435 (C.40:43-66.37) is amended to read as follows:
3. As used in [this act] P.L.1977, c.435 (C.40:43-66.35 et al.), unless the context requires another or different meaning:
[a.] "Commissioner" means the Commissioner of Community Affairs;
[b.] "Consolidated municipality" means the single new municipality that results from an affirmative consolidation effort pursuant to the provisions of [this act] P.L.1977, c.435 (C.40:43-66.35 et al.);
[c.] "Consolidation commission," or "commission," means a joint municipal consolidation study commission created pursuant to the provisions of [this act] P.L.1977, c.435 (C.40:43-66.35 et al.);
[d.] "Department" means the Department of Community Affairs;
[e.] "Eligible consolidated municipality" means a municipality consolidated pursuant to the provisions of [this act under a plan approved by the department] P.L.1977, c.435 (C.40:43-66.35 et al.);
"Municipal Efficiency Commission" means the commission established pursuant to section 3 of P.L.2007, c.54 (C.52:27D-503); and,
[f.] "Participating municipalities" means any two or more municipalities involved in a consolidation effort, or which have been consolidated together into a consolidated municipality, pursuant to the provisions of this act.
(cf: P.L.1977, c.435, s.3)
2. Section 14 of P.L.1977, c.435 (C.40:43-66.48) is amended to read as follows:
14. As soon as possible and in any event no later than 15 days after the election or appointment of all its members, the consolidation commission shall organize and hold its first meeting. The commission shall elect from its membership a chair and a vice-chair. The commission shall fix its hours and places of meeting, adopt such rules for the conduct of its business as it may deem necessary and advisable, and appoint a secretary, who need not be a member of the commission. A majority of the total membership of the commission shall constitute a quorum for the transaction of business, but no recommendation of said commission shall have any legal effect pursuant to P.L.1977, c.435 (C.40:43-66.35 et seq.), unless adopted by a majority of the five commission members from each of the participating municipalities.
At its first meeting, or as soon thereafter as possible, the commission shall establish a schedule for the conduct of its business which shall take into account the following mandatory dates:
a. The [five-month] six-month date set forth in section 20 of P.L.1977, c.435 (C.40:43-66.54) by which the [Department of Community Affairs] Municipal Efficiency Commission is required to report its fiscal findings to the consolidation commission;
b. (Deleted by amendment, P.L.1999, c.58.)
c. (Deleted by amendment, P.L.1999, c.58.) and,
d. The 10-month date set forth in section 22 of P.L.1977, c.435 (C.40:43-66.56) by which the consolidation commission is required to submit its final report.
A copy of such schedule shall be filed with the commissioner and with the clerk of each of the participating municipalities within 30 days after the first meeting.
(cf: P.L.1999, c.58, s.6)
3. Section 16 of P.L.1977, C.435 (C.40:43-66.50) is amended to read as follows:
16. It shall be the duty and function of the joint municipal consolidation study commission to study the question and feasibility of consolidating the participating municipalities into a single new municipality. In carrying out its duties and functions, the consolidation commission shall also study the plans or forms of government available under the "Optional Municipal Charter Law" (P.L.1950, c.210; C.40:69A-1 et seq.), the "commission form of government law" (R.S.40:70-1 et seq.), the "municipal manager form of government law" (R.S.40:79-1 et seq.), and the plans or forms of government of the participating municipalities, and shall exercise all of the functions and powers of a charter commission under this act and under the "Optional Municipal Charter Law," insofar as the provisions of that law may be consistent with the provisions of this act. The consolidation commission shall prepare a report setting forth its findings and recommendations. The consolidation commission may request, and shall be entitled to receive, assistance in performing its duties and functions and preparing its report from the Municipal Efficiency Commission. Should the consolidation commission determine to recommend the consolidation of the participating municipalities into a single municipality, the commission shall in such report recommend a plan of consolidation which shall set forth:
a. The name, type, plan or form of government of the proposed new municipality;
b. Details of adjustment of the indebtedness and other obligations of the participating municipalities, and if appropriate, of the school districts therein, in such manner as to preserve a fair and equitable burden of taxation for debt service;
c. The transfer of property and assets of the participating municipalities to the proposed new municipality, and, if appropriate, from their constituent school districts to the proposed new school district;
d. The extent to which participating municipalities may authorize or issue bonds or other obligations or incur contractual duties during the period between the date of the election held pursuant to section 25 of this act and the date of consolidation as provided for in section 29 of this act;
e. Any adjustments or changes in offices, positions, or employment, including the abolition thereof that may be necessitated by the consolidation;
f. The number and manner of election of the members of the governing body of the proposed new municipality, including, if appropriate, the designation of the number of wards into which the proposed consolidated municipality is to be divided, which shall be consistent with the plan or form of government recommended and shall be in accordance with law;
g. Those ordinances, rules and regulations of the participating municipalities which may be adopted by the governing body of the consolidated municipality to temporarily take effect within the consolidated municipality; and,
h. In accordance with the pertinent provisions of Title 18A of the New Jersey Statutes and the provisions of this act: the manner of school district consolidation, if any; the type of school district or districts to be operated by or in the consolidated municipality; and, the number of school board members of the recommended school district or districts as shall be necessary.
i. An estimate of the total net savings that will result from implementation of the proposed consolidation.
(cf: P.L.1977, c.435, s.16)
4. Section 19 of P.L.1977, c.435 (C.40:43-66.53) is amended to read as follows:
19. a. The joint municipal consolidation study commission shall prepare a proposed budget for its activities showing anticipated expenses and anticipated receipts of funds from all sources[, which]. The proposed budget shall be submitted to the governing bodies of the participating municipalities and to the Municipal Efficiency Commission for their review. The [governing bodies] Municipal Efficiency Commission shall review and approve, or request modifications to, a proposed budget for the consolidation commission within 30 days of submission thereof. [To the extent that funds from other sources are not adequate to cover the expenses of the commission, expenses approved by the] Within 25 days of submission of the proposed budget, the governing bodies of the participating municipalities shall [be apportioned among such municipalities according to the proportion that the assessed valuation of all taxable real property within each such municipality bears to the total assessed valuation of all such property within all participating municipalities. Such apportionment shall be based upon the most current abstract of ratables prepared for the purpose of levying taxes in the respective participating municipalities] each deposit $5,000 with the Municipal Efficiency Commission as a contribution towards the budget of the consolidation commission. The Municipal Efficiency Commission shall provide funding sufficient to cover all properly budgeted expenditures associated with the operation of the consolidation commission in excess of the $5,000 municipal contributions and funding received from other sources.
b. [The commission may apply for and accept a State grant from the Department of Community Affairs to conduct a feasibility study or studies, or may request the department to conduct such study or studies in accordance with the provisions of sections 5 and 6 of the "Interlocal Services Aid Act" (P.L.1973, c.289; C.40:8B-5 and 40:8B-6).] The consolidation commission, and the Municipal Efficiency Commission, on behalf of the consolidation commission, may seek and also accept privately contributed funds, and any Federal assistance or grants that may be available. [Participating municipalities shall be reimbursed, in the same manner prescribed in subsection a. for apportioning commission expenses among such municipalities, for any advance payments made by such municipalities to the commission in anticipation of the commission's receipt of revenues from such sources as are set forth in this subsection, if funds from such source were included as a revenue item in the commission's budget approved by the participating municipalities. Reimbursement shall be made immediately upon receipt of such anticipated revenues.]
c. The participating municipalities and the Municipal Efficiency Commission shall make available to the consolidation commission such facilities and such professional, technical and clerical assistance as said municipalities may jointly agree.
d. Within the limits of available funds and upon approval of the Municipal Efficiency Commission, the consolidation commission may appoint a secretary, consultants and such other clerical and professional assistants as it may require, who shall serve at the pleasure of the commission. The consolidation commission, upon approval of the Municipal Efficiency Commission, may fix a reasonable compensation to be paid for such services. Any consolidation commission established pursuant to the provisions of this act shall not be subject to the provisions of the "Local Public Contracts Law" (P.L.1971, c.198; C.40A:11-1 et seq.), or to the provisions of Title 11 (Civil Service) of the Revised Statutes.
e. All expenditures of funds by the commission shall be subject to audit in the same manner as municipal expenditures.
f. Amounts necessary to fund budget requests made by a commission pursuant to the provisions of this section may be appropriated by participating municipalities as emergency appropriations pursuant to N.J.S.40A:4-53.
(cf: P.L.1977, c.435, s.19)
5. Section 20 of P.L.1977, c.435 (C.40:43-66.54) is amended to read as follows:
20. a. [The Department of Community Affairs shall, within] Within [five] six months [from the date of its receipt of all the election results or ordinances, or both, establishing] of establishment of a consolidation commission pursuant to section 7 of P.L.1977, c.435 (C.40:43-66.41), the Municipal Efficiency Commission shall prepare an objective feasibility study of the technical, administrative, legal, and fiscal aspects of the proposed consolidation, as well as an estimate of the total net savings that may result from implementation of the proposed consolidation, and shall report its findings to the consolidation commission.
b. The department and
the Municipal Efficiency Commission shall, to every possible extent, advise
and cooperate with any consolidation commission created pursuant to P.L.1977,
c.435 (C.40:43-66.35 et seq.) and shall make available its facilities, records,
and technical and professional resources. [The
department shall consider promptly any commission application for a State grant
to conduct, or any commission request for the department to conduct, any other
feasibility study or studies consistent with the provisions of P.L.1977, c.435
(C.40:43-66.35 et seq.); provided, however, that whenever any such study or
studies are to be conducted by a party other than the department, said party
shall be approved by, and conduct such study or studies under the supervision
of, the department. Upon approval of such study or studies, the commissioner
shall certify the amount approved therefor to the State Treasurer, who shall make
immediate payment thereon. Any application for financial assistance submitted
by a commission created pursuant to P.L.1977, c.435 (C.40:43-66.35 et seq.)
shall have first claim on any moneys appropriated under any State aid or grant
program that authorizes the use of funds for these purposes. At the written
request of such a commission, a reservation of moneys shall be made by the
commissioner prior to
the formal filing of an application therefor by such commission.]
(cf: P.L.1999, c.58, s.7)
6. Section 25 of P.L.1977, c.435 (C.40:43-66.59) is amended to read as follows:
25. If the commission recommends the submission of the question of consolidation to the voters, the municipal clerk of each participating municipality shall cause the question of consolidation to be submitted to the registered voters of each participating municipality on the date for the next general or municipal election, whichever shall occur sooner. At that election, the question shall be submitted in the same manner as other public questions in each such municipality, and in the following form or such part thereof as shall be applicable:
"Shall (insert the names of the participating municipalities) be consolidated into a single municipality to be known as (insert name and type of municipality) and governed under (insert alternative a., b., c., d., or e. below, as may be appropriate)?" The State, after careful study, estimates that implementation of this consolidation may result in savings of $ (insert net savings estimated pursuant to section 20 of P.L.1977, c.435 (C.40:43-66.54)).
(a. the present plan or form of government of (insert name of appropriate municipality) and (if appropriate) providing for a division of the municipality into (insert number) wards, with (insert number) (insert title of members of governing body) to be elected from each ward and (insert number) to be elected at large);
(b. a special charter to be enacted by the Legislature as recommended by the consolidation commission);
(c. the (insert name of plan) of the "Optional Municipal Charter Law," providing for a division of the municipality into (insert number) wards, with (insert number) councilmen, (one to be elected from each ward and (insert number) to be elected at large));
(d. the commission form of government to be adopted pursuant to chapters 70 to 76 of Title 40 of the Revised Statutes (R.S. 40:70-1 et seq.)); or,
(e. the municipal manager form of government to be adopted pursuant to chapters 79 to 85 of Title 40 of the Revised Statutes (R.S. 40:79-1 et seq.)).
[ ] For Consolidation [ ] Against Consolidation
(cf: P.L.1977, c.435, s.25)
7. Section 3 of P.L.2007, c.63 (C.40A:65-3) is amended to read as follows:
3. As used in sections 1 through 35 of P.L.2007, c.63 (C.40A:65-1 through C.40A:65-35):
"Board" means the Local Finance Board in the Division of Local Government Services in the Department of Community Affairs.
"Construct" and "construction" connote and include acts of construction, reconstruction, replacement, extension, improvement and betterment of lands, public improvements, works, facilities, services or undertakings.
"Contracting local units" means local units participating in a joint meeting.
"Director" means the Director of the Division of Local Government Services in the Department of Community Affairs.
"Division" means the Division of Local Government Services in the Department of Community Affairs.
"Governing body" means the board, commission, council, or other body having the control of the finances of a local unit; and in those local units in which an executive officer is authorized by law to participate in such control through powers of recommendation, approval, or veto, the term includes that executive officer, to the extent of the officer's statutory participation.
"Joint contract" means an agreement between two or more local units to form a joint meeting.
"Joint meeting" means the joint operation of any public services, public improvements, works, facilities, or other undertaking by contracting local units pursuant to a joint contract under section 14 of P.L.2007, c.63 (C.40A:65-14).
"Local unit" means a "contracting unit" pursuant to section 2 of P.L.1971, c.198 (C.40A:11-2), a "district" pursuant to N.J.S.18A:18A-2, a "county college" pursuant to N.J.S.18A:64A-1, a joint meeting, or any authority or special district that is subject to the "Local Authorities Fiscal Control Law," P.L.1983, c.313 (C.40A:5A-1 et seq.).
"Municipal Efficiency Commission" means the commission established pursuant to section 3 of P.L.2007, c.54 (C.52:27D-503).
"Operate" and "operation" mean and include acquisition, construction, maintenance, management, and administration of any lands, public improvements, works, facilities, services, or undertakings.
"Person" means any person, association, corporation, nation, State, or any agency or subdivision thereof, or a county or municipality of the State.
"Service" means any of the powers, duties and functions exercised or performed by a local unit by or pursuant to law.
"Shared service" or "shared" means any service provided on a regional, joint, interlocal, shared, or similar basis between local units, the provisions of which are memorialized by agreement between the participating local units, but, for the purposes of this act, does not include any specific service or activity regulated by some other law, rule or regulation.
"Shared service agreement" or "agreement" means a contract authorized under section 4 of P.L.2007, c.63 (C.40A:65-4).
"Terminal leave benefit" means a single, lump sum payment, paid at termination, calculated using the regular base salary at the time of termination.
(cf: P.L.2007, c.63, s.3)
8. Section 25 of P.L.2007, c.63 (C.40A:65-25) is amended to read as follows:
25. a. The Legislature finds and declares that in order to encourage municipalities to increase efficiency through municipal consolidation for the purpose of reducing expenses borne by their property taxpayers, more flexible options need to be available to the elected municipal officials and voters than are available through the "Municipal Consolidation Act," P.L.1977, c.435 (C.40:43-66.35 et al.).
b. (1) In lieu of the procedures set forth in the "Municipal Consolidation Act," P.L.1977, c.435 (C.40:43-66.35 et al.), the governing bodies from two or more contiguous municipalities may apply to the [board] Municipal Efficiency Commission for either:
(a) approval of a plan to consolidate their municipalities; or
(b) creation of a Municipal Consolidation Study Commission, as described in subsection c. of this section.
(2) A representative committee of registered voters from two or more contiguous municipalities may petition the [board] Municipal Efficiency Commission for the creation of a Municipal Consolidation Study Commission, as described in subsection c. of this section. The petition, to be sufficient, shall be signed by the registered and qualified voters of the municipalities in a number at least equal to 10% of the total votes cast in those municipalities at the last preceding general election at which members of the General Assembly were elected.
(3) The [board] Municipal Efficiency Commission shall provide application forms and technical assistance to any governing bodies or voters desiring to apply to the [board] Municipal Efficiency Commission for approval of a consolidation plan or the creation of a Municipal Consolidation Study Commission.
(4) A consolidation commission established pursuant to P.L.1977, c.435 (C.40:43-66.35 et seq.) in the year prior to enactment of sections 1 to 37 of P.L.2007, c.63 (C.40A:65-1 et al.) may apply to the [Local Finance Board] Municipal Efficiency Commission for approval to use the provisions of section 25 through 29 of P.L.2007, c.63 (C.40A:65-25 through C.40A:65-29).
c. An application to create a Municipal Consolidation Study Commission shall propose a process to study the feasibility of consolidating the participating municipalities into a single new municipality or merging one into the other. The application shall include provisions for:
(1) the means of selection and qualifications of study commissioners;
(2) the timeframe for the study, which shall be no more than three years, along with key events and deadlines, including time for review of the report by State agencies, which review shall be no less than three months;
(3) whether a preliminary report shall be issued in addition to the final report;
(4) whether the development of a consolidation implementation plan will be a part of the study;
(5) the means for any proposed consolidation plan to be approved; either by voter referendum, by the governing bodies, or both; and
(6) if proposed by a representative group of voters, justification of that group's standing to serve as the community advocate for the consolidation proposal.
d. (1) An application to the [board] Municipal Efficiency Commission for consideration of a consolidation plan or to create a Municipal Consolidation Study Commission shall be subject to a public hearing within each municipality to be studied, and a joint public hearing in a place that is easily accessible to the residents of both or all of the municipalities.
(2) The public hearings shall be facilitated by the [board] Municipal Efficiency Commission and conducted in accordance with the provisions of the "Senator Byron M. Baer Open Public Meetings Act," P.L.1975, c.231 (C.10:4-6 et seq.).
(3) After approval of a plan by the [board, it] Municipal Efficiency Commission, the plan may be amended upon petition to the [board] Municipal Efficiency Commission by the applicant. Based on the nature of the amendment, the [board] Municipal Efficiency Commission may decide to hold a public hearing in any of the municipalities affected by the plan, or at a regular meeting, or both.
e. (1) Every Municipal Consolidation Study Commission shall include a representative of the Department of Community Affairs as a non-voting representative on the [commission] Municipal Consolidation Study Commission. The representative shall not be a resident of a municipality participating in the study.
(2) The [department] Municipal Efficiency Commission shall prepare an objective [fiscal] feasibility study of the technical, administrative, legal, and fiscal aspects of [a] the proposed consolidation, as well as an estimate of the total net savings that may result from implementation and shall provide it to the [commission] Municipal Consolidation Study Commission [in a timely manner] within six months of its creation.
f. If the consolidation would include the consolidation of boards of education, a person appointed by the Commissioner of Education shall serve as a non-voting member of that Municipal Consolidation Study Commission. The representative of the Commissioner of Education shall not be a resident of a community participating in the study. The county superintendent of schools shall conduct a study on the impact of consolidation on the educational system and its finances. The report shall be provided to the [commission] Municipal Consolidation Study Commission in a timely manner.
g. There shall be no more than one of either a consolidation plan study, a Municipal Consolidation Study Commission, or a joint municipal consolidation created under the "Municipal Consolidation Act," P.L.1977, c.435 (C.40:43-66.35 et al.), active in a single municipality at the same time. In the event that more than one application is filed with the [board] Municipal Efficiency Commission or is being considered by the governing bodies while another action affecting the same municipality or municipalities is under consideration, the [board] Municipal Efficiency Commission shall consider the applications and shall join any proposed creation of a joint municipal consolidation together and approve only one action as the [board] Municipal Efficiency Commission deems to be in the public interest. Prior to approving a single action, the [board] Municipal Efficiency Commission shall hold a public hearing permitting all parties to present testimony on the merits of their action in relation to the other proposals. Once an action is approved by the [board] Municipal Efficiency Commission, another action from the same combination of municipalities shall not be approved for at least five years.
h. In considering its decisions under sections 1 to 37 of P.L.2007, c.63 (C.40A:65-1 et al.), the [Local Finance Board] Municipal Efficiency Commission and any other State agency shall take into account local conditions, the reasonableness of proposed decisions, and the facilitation of the consolidation process in making decisions concerning consolidation.
(cf: P.L.2007, c.63, s.25)
9. Section 26 of P.L.2007, c.63 (C.40A:65-26) is amended to read as follows:
26. a. A consolidation plan or report of a Municipal Consolidation Study Commission shall include the provisions of sections 16 and 24 of P.L.1977, c.435 (C.40:43-66.50 and 40:43-66.58), insofar as they are consistent with the provisions of sections 1 to 37 of P.L.2007, c.63 (C.40A:65-1 et al.), as well as an estimate of the total net savings that may result from implementation of the proposed consolidation. In addition, a consolidation plan shall address the following implementation issues:
(1) a timetable for implementing the consolidation plan;
(2) duplicate positions, including those held by tenured, certified officers, listing those positions proposed to be abolished for reasons of economy, efficiency or other good cause and listing those positions proposed to be merged; and
(3) applicability of the provisions of Title 11A, Civil Service, of the New Jersey Statutes, if Title 11A has been adopted by one or more consolidating municipalities.
b. The following policies may be considered and implemented under an application for approval of a consolidation plan, and may be included as part of a study under the "Municipal Consolidation Act," P.L.1977, c.435 (C.40:43-66.35 et al.), or as part of a study conducted by a Municipal Consolidation Study Commission pursuant to sections 1 to 37 of P.L.2007, c.63 (C.40A:65-1 et al.):
(1) creation of a consolidation implementation plan to establish a timetable of significant events and goals to be achieved as part of a consolidation study;
(2) a phase-in of a consolidation over a fixed period of time. Such a plan shall be subject to review and approval of the [Local Finance Board] Municipal Efficiency Commission prior to it being approved by the governing bodies or subject to voter referendum;
(3) variations from existing State law or State department rules that may not have anticipated a phase-in or consolidation of services. When variations are proposed, they shall be submitted to the [board] Municipal Efficiency Commission which shall refer it to the agency with oversight responsibility. After due consideration, the referee agency is empowered to waive such law or rules if a waiver is found reasonable to further the process of consolidation. Where no such agency exists, the Commissioner of Community Affairs shall act on behalf of the State. These requests shall be acted on within 45 days of their receipt by an agency, and they shall be deemed approved, subject to approval of a consolidation proposal by the municipalities, by the end of that time unless the agency has responded with a denial, conditions that must be met in order for it to be approved, or an alternative approach to resolving the matter;
(4) the use of advisory planning districts, comprised of residents living in the former territories of each former municipality, to provide advice to the planning board and the zoning board of adjustment on applications and master plan changes affecting those areas. A consolidation study plan shall specify the types and nature of the development and zoning applications that the advisory planning districts shall review and the official boards shall be required to respond, at a public meeting, to each suggestion made by an advisory planning district;
(5) the establishment of service districts comprised of the boundaries of any or all of the former municipalities which may be used to allocate resources and used for official geographic references in the new municipality;
(6) the continued use of boundary lines of any or all of the former municipalities to continue local ordinances that existed prior to consolidation that the governing body deems necessary and appropriate. The need for any such differentiation shall be reviewed by the governing body at least every five years and shall only be continued upon the affirmative vote of the full membership of the governing body, and if such continuance fails, the governing body shall then adopt uniform policies for the entire area; and
(7) the apportionment of existing debt between the taxpayers of the consolidating municipalities, including whether existing debt should be apportioned in the same manner as debt within special taxing districts so that the taxpayers of each consolidating municipality will continue to be responsible for their own pre-consolidation debts.
c. When one of the municipalities is subject to the provisions of Title 11A, Civil Service, of the New Jersey Statutes, the question of whether the new municipality shall be subject to the provisions of that Title shall be the subject of a public referendum before all of the voters of the consolidating municipalities. Upon the approval by a majority of those voting, regardless of their municipality of residence, the new municipality shall be subject to the provisions of that Title.
(cf: P.L.2007, c.63, s.26)
10. Section 27 of P.L.2007, c.63 (C.40A:65-27) is amended to read as follows:
27. a. Once a consolidation has been approved by the affected municipal governing bodies or voters, the division, in consultation with the Municipal Efficiency Commission, shall create a task force of State departments, offices and agencies, as it deems appropriate, and representatives of affected negotiations units, to facilitate the consolidation and provide technical assistance.
b. When a consolidation plan provides that the consolidated municipality will be subject to the provisions of Title 11A, Civil Service, of the New Jersey Statutes the Civil Service Commission is specifically authorized to create a consolidation implementation plan to vest non-civil service employees, based on the education and experience of the individuals, in appropriate titles and tenure.
c. Whenever a referendum question to decide if a consolidated municipality shall be subject to the provisions of Title 11A, Civil Service, of the New Jersey Statutes fails, the employees of a municipality already subject to that Title shall be given non-civil service titles in the new entity and previously held tenure shall be vacated.
d. The Public Employment Relations Commission is authorized to provide technical advice, pursuant to section 12 of P.L.1968, c.303 (C.34:13A-8.3), to assist a new municipality and existing labor unions to integrate separate labor agreements into consolidated agreements and to adjust the structure of collective negotiations units, as the commission determines appropriate for the consolidated municipality.
(cf: P.L.2008, c.29, s.103)
11. Section 29 of P.L.2007, c.63 (C.40A:65-29) is amended to read as follows:
29. The provisions of sections 1 to 37 of P.L.2007, c.63 (C.40A:65-1 et al.) shall be liberally construed to effectuate the intention of sections 25 through 28 of P.L.2007, c.63 (C.40A:65-25 through C.40A:65-28). The [board] Municipal Efficiency Commission is empowered to act to provide guidance, interpretation, and to resolve disputes regarding these sections or the "Municipal Consolidation Act," P.L.1977, c.435 (C.40:43-66.35 et al.). Decisions of the [board] Municipal Efficiency Commission may be appealed directly to the Appellate Division of the Superior Court.
(cf: P.L.2007, c.63, s.29)
12. Section 2 of P.L.2007, c.54 (C.52:27D-502) is amended to read as follows:
2. For the purposes of this act:
"Commission" means the ["Local Unit Alignment, Reorganization, and Consolidation Commission"] "Municipal Efficiency Commission" established pursuant to section 3 of P.L.2007, c.54 (C.52:27D-503). Whenever the term "Local Unit Alignment, Reorganization, and Consolidation Commission" occurs or any reference is made thereto in any law, contract or document, the same shall be deemed to mean or refer to the "Municipal Efficiency Commission."
"Consolidation commission" means a consolidation commission established pursuant to P.L.1977, c.435 (C.40:43-66.35 et seq.) or a Municipal Consolidation Study Commission created pursuant to section 25 of P.L.2007, c.63 (C.40:65-25).
"Local unit" means a municipality or fire district, and shall not include a school district, regional school district, or county.
(cf: P.L.2007, c.54, s.2)
13. Section 3 of P.L.2007, c.54 (C.52:27D-503) is amended to read as follows:
3. a. There is established in but not of the Department of Community Affairs, the ["Local Unit Alignment, Reorganization, and Consolidation Commission] "Municipal Efficiency Commission."
b. The commission shall consist of nine voting members: the Commissioner of Community Affairs (or a designee) and the State Treasurer (or a designee), who shall both serve ex-officio; and seven public members, and shall be appointed as follows: one member appointed by the President of the Senate, one member appointed by the Minority Leader of the Senate, one member appointed by the Speaker of the General Assembly, one member appointed by the Minority Leader of the General Assembly, and three members, no more than two of whom shall be of the same political party, appointed by the Governor, with the advice and consent of the Senate. Of the three public members appointed by the Governor, one member shall reside in a northern county (Bergen, Essex, Hudson, Morris, Passaic, Union, Sussex, or Warren), one member shall reside in a central county (Hunterdon, Mercer, Middlesex, Monmouth, or Somerset), and one member shall reside in a southern county (Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Ocean, or Salem). No appointee shall be an elected official of a local unit or county unless that person has significant experience in shared service initiatives and demonstrated success at having implemented such agreements at the local level.
c. Members of the commission shall serve without compensation, but shall be reimbursed for expenses actually incurred in the performance of their duties.
d. The members shall be appointed within 60 days following the effective date of this act. The public members shall serve for terms of five years and until the appointment and qualification of a successor; except that in making the first appointments to the commission, one person shall be appointed to serve for one year, one for two years, one for three years, one for four years, and four for five years. The length of the respective term of each member of the first commission shall be determined by lot at the organization of the first commission. A public member may be reappointed. Any vacancy in the membership of the commission shall be filled in the same manner as the original appointment was made for the unexpired term only.
(cf: P.L.2007, c.54, s.3)
14. Section 4 of P.L.2007, c.54 (C.52:27D-504) is amended to read as follows:
4. a. The ["Local Unit Alignment, Reorganization, and Consolidation Commission"] "Municipal Efficiency Commission" shall organize as soon as practicable after the appointment of its members and annually shall select a chair from among its members and a secretary, who need not be a member of the commission. The commission shall appoint an executive director, who shall serve at the pleasure of the commission and who shall have expertise in one or more local government subjects, such as planning, local finance, geography, taxation, or other relevant fields. The executive director shall appoint professional staff qualified by training and experience to serve the commission, including no fewer than five professional staff members with the requisite training and experience to prepare consolidation feasibility studies as part of a Municipal Consolidation Study Commission established pursuant to P.L.1977, c.435 (C.40:43-66.35 et seq.) or P.L.2007, c.63 (C.40A:65-1 et seq.). The executive director and professional staff shall serve at the pleasure of the commission.
b. The commission may meet and hold hearings at the places it designates throughout the State.
(cf: P.L.2007, c.54, s.4)
15. Section 5 of P.L.2007, c.54 (C.52:27D-505) is amended to read as follows:
5. a. (1) The commission shall study and report on the structure and functions of county and municipal government, including local taxing districts, their statutory bases, including the fiscal relationship between local governments, and the appropriate allocation of service delivery responsibilities from the standpoint of efficiency. The study of the transfer of the municipal tax assessment function to the county through the appointment of a county assessor and deputy county assessors in a pilot county pursuant to the "Property Assessment Reform Act," sections 1 through 15 of P.L.2009, c.118 (C.54:1-86 et seq.), shall be conducted in consultation with the Director of the Division of Taxation in the Department of the Treasury.
(2) The commission shall recommend legislative changes which would encourage the more efficient operation of local government. These changes may include the structural and administrative streamlining of county and municipal government functions, including but not limited to, the transfer of functions from one level of government to another, and the use or establishment of regional service delivery entities.
(3) The commission shall also consider optimal service levels, ratios of employees to population served, cost structures for service delivery, and other best practices.
Within two years following the effective date of P.L.2007, c.54 (C.52:27D-501 et al.), the commission shall report its findings to the Governor, the President of the Senate, and the Speaker of the General Assembly; provided, however, that findings concerning the transfer of the municipal tax assessment function to the county through the appointment of a county assessor and deputy county assessors shall be reported on or before February 1 of the sixth year next following the effective date of P.L.2009, c.118 (C.54:1-86 et al.).
(4) The commission shall serve as the primary point of contact for local officials and citizens undertaking or seeking to undertake a municipal consolidation pursuant to the "Municipal Consolidation Act," P.L.1977, c.435 (C.40:43-66.35 et seq.), P.L.1995, c.376 (C.40:43-66.78 et seq.), or sections 25 through 29 of the "Uniform Shared Services and Consolidation Act," P.L.2007, c.63 (C.40A:65-25 through 40A:65-29). The commission shall provide through its professional staff all of the support necessary to permit a consolidation commission to determine the feasibility of a municipal consolidation, including the preparation of any technical, administrative, legal, or feasibility studies that might otherwise be performed by a private consultant. In addition, the commission shall prepare plain-language guides for citizens and local officials interested in initiating a municipal consolidation and shall post such materials on its website.
b. Based on its findings pursuant to paragraph (3) of subsection a. of this section, the commission shall develop criteria to serve as the basis for recommending the consolidation of specific municipalities, the merger of specific existing autonomous agencies into the parent municipal or county government, or the sharing of services between municipalities or between municipalities and other public entities. Recommendations for sharing services may result from a study focusing exclusively on the sharing of services or may result from a study examining potential consolidation. Municipalities to be considered for consolidation shall be within the same county and shall also be situated within the same legislative district.
The criteria to govern a study to examine consolidation or the sharing of services shall include, but need not be limited to:
(1) a consideration of geographic factors, such as a shared boundary, or in the case of the recommended consolidation of more than two local units, that the consolidated local unit will have a contiguous boundary;
(2) an analysis of the economic costs and benefits of consolidation or the sharing of services, as the case may be, including potential tax savings and reductions in government costs through economies of scale;
(3) measures to ensure that costs and benefits of consolidation or service sharing are distributed equitably across the entire community; and
(4) measures to safeguard the interests of communities in the municipalities for which consolidation is recommended.
The commission shall give priority to local units that volunteer to be studied.
c. When a municipal consolidation is recommended by the commission, the commission shall substitute for a joint municipal consolidation study commission that would be formed pursuant to section 7 of the "Municipal Consolidation Act," P.L.1977, c.435 (C.40:43-66.41) or any other statute governing municipal consolidation, and no voter approval shall be required to create the study commission.
d. When a consolidation or shared service is recommended by the commission, the commission shall recommend State funding for any extraordinary expenses necessitated by the consolidation plan or shared service agreement. The commission shall recommend that this funding be provided either by funds made available to the commission for that purpose or by the Legislature or State Treasurer as part of the annual State budget process.
(cf: P.L.2009, c.118, s.16)
16. Section 6 of P.L.2007, c.54 (C.52:27D-506) is amended to read as follows:
6. a. The ["Local Unit Alignment, Reorganization, and Consolidation Commission"] "Municipal Efficiency Commission" shall work in conjunction with the Local Finance Board and the Division of Local Government Services in the Department of Community Affairs. [To the extent possible, the] The commission may request specific resources from the department. The department shall provide the commission with all resources requested by the commission that the commission determines are necessary for it to operate and satisfy its statutory duties, including but not limited to the provision of offices, equipment, materials, and administrative, technical, and legal personnel. The commission may also request, and shall be entitled to, the assistance and services of the employees of any State department, board, bureau, commission, or agency, as it may require and as may be available to it for its purposes.
b. The commission shall be entitled to the cooperation of the officials and employees of every county and municipality as it may require.
c. The commission may incur traveling and other miscellaneous expenses necessary to perform its duties, within the limits of funds available to it for its purposes.
d. The commission may contract for the services of professional, technical, and operational personnel and consultants as it may determine are necessary to perform its duties, within the limits of funds available to it for its purposes.
(cf: P.L.2007, c.54, s.6)
17. This act shall take effect immediately.
STATEMENT
This bill would rename the "Local Unit Alignment, Reorganization, and Consolidation Commission" as the "Municipal Efficiency Commission" and would transfer various state powers and responsibilities regarding the municipal consolidation process from other entities to the Municipal Efficiency Commission. The Municipal Efficiency Commission would become the primary point of contact for citizens and local officials seeking to initiate the consolidation process. The commission would maintain a website providing plain-language explanations and guidance on how to consolidate New Jersey municipalities.
Currently, the "Municipal Consolidation Act" provides that municipalities participating in a consolidation study are responsible for covering the expenses of a consolidation commission, absent funding from other sources. Under the bill, once each participating municipality contributes $5,000 towards the costs of the consolidation study, the State Municipal Efficiency Commission would cover all other costs associated with studying a consolidation proposal. The bill also provides that the commission would conduct feasibility studies to examine critical aspects of proposed consolidations, freeing local consolidation study commissions from the financial burden of hiring outside consultants. The commission would also prepare estimates of the savings that would result from a consolidation.
