ASSEMBLY JUDICIARY COMMITTEE
STATEMENT TO
ASSEMBLY, No. 4644
with committee amendments
STATE OF NEW JERSEY
DATED: SEPTEMBER 29, 2022
The Assembly Judiciary Committee reports favorably and with committee amendments Assembly Bill No. 4644.
As amended by the committee, 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 with 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.
COMMITTEE AMENDMENTS:
The committee amended the bill to direct the Division of Local Government Services to refrain from enforcing new penalties established by section 5 of the bill for a municipal violation of a provision of the bill, or of P.L.2007, c.92 or P.L.2010, c.3 (C.11A:6-19.2 et al), if:
· the action is related to an employee who is not subject to an applicable collective bargaining agreement of the municipality, and is taken within the six months following the adoption of rules and regulations to implement the bill; or
· the action is related to an employee subject to an applicable collective bargaining agreement of the municipality and taken prior to the adoption of the rules and regulations to implement the bill.