Bill Text: NJ S441 | 2010-2011 | Regular Session | Introduced
Bill Title: Limits annual fee increases in shared service agreement to 2 percent. *
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Enrolled - Dead) 2011-12-15 - Passed Assembly (Passed Both Houses) (42-26-3) [S441 Detail]
Download: New_Jersey-2010-S441-Introduced.html
STATE OF NEW JERSEY
214th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2010 SESSION
Sponsored by:
Senator SHIRLEY K. TURNER
District 15 (Mercer)
SYNOPSIS
Limits annual fee increases in shared service agreement to 4% or waiver amount.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel
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 the greater of four percent or the amount permitted by a waiver from the board pursuant to 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," sections 1 through 35 of P.L.2007, c.63 (C.40A:65-1 through C.40A:65-35), 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 the greater of four percent or the amount permitted by a waiver from the Local Finance Board.
This bill would prevent a municipality that is receiving a shared service from being charged beyond the limits of the property tax levy cap by the municipality that provides the service, and that may be in a position to demand excessive fee increases once a shared services agreement has been implemented.
