A6214

An Act concerning the purchasing of unused sick leave and amending and supplementing various parts of the statutory law.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. Section 42 of P.L.2007, c.92 (C.11A:6-19.1) is amended to read as follows:

42. a. Notwithstanding any law, rule or regulation to the contrary, a political subdivision of the State, or an agency, authority or instrumentality thereof, that has adopted the provisions of Title 11A of the New Jersey Statutes, shall not pay supplemental compensation to any officer or employee for accumulated unused sick leave in an amount in excess of $15,000, except that an officer or employee who:

(1) on the effective date of P.L.2007, c.92 (C.43:15C-1 et al.), or upon the expiration of a collective negotiations agreement or contract of employment applicable to that officer or employee in effect on that date has accrued supplemental compensation based upon accumulated unused sick leave shall, upon retirement, be eligible to receive for any unused leave not more than the amount so accumulated or not more than $15,000, whichever is greater; or

(2) becomes an officer or employee after the effective date of P.L.2007, c.92 (C.43:15C-1 et al.) and has previously accrued supplemental compensation based upon accumulated unused sick leave shall, upon retirement, be eligible to receive for any unused leave not more than the amount so previously accumulated or not more than $15,000, whichever is greater.

b. Supplemental compensation shall be payable only at the time of retirement from a State-administered or locally-administered retirement system based on the leave credited on the date of retirement.

c. Notwithstanding any law, rule, or regulation to the contrary, and regardless of whether an officer’s or employee’s accumulated unused sick leave is compensable pursuant to subsection a. of this section, on or after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), or upon the expiration of a collective negotiations agreement or contract of employment applicable to that officer or employee in effect on that date, a political subdivision of the State, or an agency, authority, or instrumentality thereof, which has adopted the provisions of Title 11A of the New Jersey Statutes, may purchase accumulated unused sick leave from an officer or employee subject to the following limitations:

(1) the dollar value of accumulated unused sick leave upon purchase shall be based on the pensionable compensation of the officer or employee on the date of purchase;

(2) the amount paid to the officer or employee shall not exceed 60 percent of the dollar value of the accumulated unused leave on the date of purchase;

(3) in any year, a political subdivision of the State, or an agency, authority, or instrumentality thereof shall not purchase from an officer or employee more than 120 hours of accumulated unused sick leave; and

(4) no purchase of accumulated unused sick leave shall result in an officer or employee having less than 800 hours of accumulated unused sick leave.

d. On or after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), or upon the expiration of a collective negotiations agreement or contract of employment applicable to that officer or employee in effect on that date, the purchase of accumulated unused sick leave from an officer or employee shall be solely discretionary and shall not be subject to collective negotiation.

e. As used in this section[, "officer] :

"Officer or employee" means an elected official; or a person appointed by the Governor with the advice and consent of the Senate, or appointed by the Governor to serve at the pleasure of the Governor only during his or her term of office; or a person appointed by an elected public official or elected governing body of a political subdivision of the State, with the specific consent or approval of the elected governing body of the political subdivision that is substantially similar in nature to the advice and consent of the Senate for appointments by the Governor of the State as that similarity is determined by the elected governing body and set forth in an adopted ordinance or resolution, pursuant to guidelines or policy that shall be established by the Local Finance Board in the Department of Community Affairs, but not including a person who is employed or appointed in the regular or normal course of employment or appointment procedures and consented to or approved in a general or routine manner appropriate for and followed by the political subdivision, or the agency, authority, or instrumentality of a subdivision, or a person who holds a professional license or certificate to perform and is performing as a certified health officer, tax assessor, tax collector, municipal planner, chief financial officer, registered municipal clerk, construction code official, licensed uniform subcode inspector, qualified purchasing agent, or certified public works manager.

"Pensionable compensation" shall be the annual pension base for the employee on the date of purchase.

(cf: P.L.2007, c.92, s.42)

2. Section 1 of P.L.2010, c.3 (C.11A:6-19.2) is amended to read as follows:

1. a. Notwithstanding any law, rule or regulation to the contrary, a political subdivision of the State, or an agency, authority or instrumentality thereof, that has adopted the provisions of Title 11A of the New Jersey Statutes, shall not pay supplemental compensation to any officer or employee for accumulated unused sick leave in an amount in excess of $15,000. Supplemental compensation shall be payable only at the time of retirement from a State-administered or locally-administered retirement system based on the leave credited on the date of retirement. This provision shall apply only to officers and employees who commence service with the political subdivision of the State, or the agency, authority or instrumentality thereof, on or after the effective date of P.L.2010, c.3. This [section] subsection shall not be construed to affect the terms in any collective negotiations agreement with a relevant provision in force on that effective date.

b. Notwithstanding any law, rule, or regulation to the contrary, and regardless of whether an officer’s or employee’s accumulated unused sick leave is compensable pursuant to subsection a. of this section, on or after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), or upon the expiration of a collective negotiations agreement applicable to that officer or employee in effect on that date, a political subdivision of the State, or an agency, authority, or instrumentality thereof, which has adopted the provisions of Title 11A of the New Jersey Statutes, may purchase accumulated unused sick leave from an officer or employee subject to the following limitations:

(1) the dollar value of accumulated unused sick leave upon purchase shall be based on the pensionable compensation of the officer or employee on the date of purchase. For purposes of this paragraph, pensionable compensation shall be the annual pension base for the employee on the date of purchase;

(2) the amount paid to the officer or employee shall not exceed 60 percent of the dollar value of the accumulated unused leave on the date of purchase;

(4) no purchase of accumulated unused sick leave shall result in an officer or employee having less than 800 hours of accumulated unused sick leave.

c. On or after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), or upon the expiration of a collective negotiations agreement or contract of employment applicable to that officer or employee in effect on that date, the purchase of accumulated unused sick leave from an officer or employee shall be solely discretionary and shall not be subject to collective negotiation.

(cf: P.L.2010, c.3, s.1)

3. (New section) a. Notwithstanding any law, rule, or regulation to the contrary, on or after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), or upon the expiration of a collective negotiations agreement or contract of employment applicable to that officer or employee in effect on that date, a political subdivision of the State, or an agency, authority, or instrumentality thereof, that has adopted the provisions of Title 11A of the New Jersey Statutes, may purchase from an officer or employee that is not subject to the limitations of section 42 of P.L.2007, c.92 (C.11A:6-19.1) or section 1 of P.L.2010, c.3 (C.11A:6-19.2) accumulated unused sick leave subject to the following limitations:

(2) the amount paid to the officer or employee shall not exceed 60 percent of the dollar value of the accumulated unused leave on the date of purchase;

(4) no purchase of accumulated unused sick leave shall result in an officer or employee having less than 800 hours of accumulated unused sick leave.

b. On or after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), or upon the expiration of a collective negotiations agreement or contract of employment applicable to that officer or employee in effect on that date, the purchase of accumulated unused sick leave from an officer or employee shall be solely discretionary and shall not be subject to collective negotiation.

4. Section 43 of P.L.2007, c.92 (C.40A:9-10.2) is amended to read as follows:

43. a. Notwithstanding any law, rule or regulation to the contrary, a political subdivision of the State, or an agency, authority or instrumentality thereof, that has not adopted the provisions of Title 11A of the New Jersey Statutes, shall not pay supplemental compensation to any officer or employee for accumulated unused sick leave in an amount in excess of $15,000, except that an officer or employee who:

b. Supplemental compensation shall be payable only at the time of retirement from a State-administered or locally-administered retirement system based on the leave credited on the date of retirement.

c. Notwithstanding any law, rule, or regulation to the contrary, and regardless of whether an officer’s or employee’s accumulated unused sick leave is compensable pursuant to subsection a. of this section, on or after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), or upon the expiration of a collective negotiations agreement or contract of employment applicable to that officer or employee in effect on that date, a political subdivision of the State, or an agency, authority, or instrumentality thereof, which has not adopted the provisions of Title 11A of the New Jersey Statutes, may purchase accumulated unused sick leave from an officer or employee subject to the following limitations:

(1) the dollar value of accumulated unused sick leave upon purchase shall be based on the pensionable compensation of the officer or employee on the date of purchase;

(2) the amount paid to the officer or employee shall not exceed 60 percent of the dollar value of the accumulated unused leave on the date of purchase;

(4) no purchase of accumulated unused sick leave shall result in an officer or employee having less than 800 hours of accumulated unused sick leave.

e. As used in this section[, "officer] :

"Officer or employee" means an elected official; or a person appointed by the Governor with the advice and consent of the Senate, or appointed by the Governor to serve at the pleasure of the Governor only during his or her term of office; or a person appointed by an elected public official or elected governing body of a political subdivision of the State, with the specific consent or approval of the elected governing body of the political subdivision that is substantially similar in nature to the advice and consent of the Senate for appointments by the Governor of the State as that similarity is determined by the elected governing body and set forth in an adopted ordinance or resolution, pursuant to guidelines or policy that shall be established by the Local Finance Board in the Department of Community Affairs, but not including a person who is employed or appointed in the regular or normal course of employment or appointment procedures and consented to or approved in a general or routine manner appropriate for and followed by the political subdivision, or the agency, authority or instrumentality of a subdivision, or a person who holds a professional license or certificate to perform and is performing as a certified health officer, tax assessor, tax collector, municipal planner, chief financial officer, registered municipal clerk, construction code official, licensed uniform subcode inspector, qualified purchasing agent, or certified public works manager.

"Pensionable compensation" shall be the annual pension base for the employee on the date of purchase.

(cf: P.L.2007, c.92, s.43)

5. Section 2 of P.L.2010, c.3 (C.40A:9-10.4) is amended to read as follows:

2. a. Notwithstanding any law, rule or regulation to the contrary, a political subdivision of the State, or an agency, authority or instrumentality thereof, that has not adopted the provisions of Title 11A of the New Jersey Statutes, shall not pay supplemental compensation to any officer or employee for accumulated unused sick leave in an amount in excess of $15,000. Supplemental compensation shall be payable only at the time of retirement from a State-administered or locally-administered retirement system based on the leave credited on the date of retirement. This provision shall apply only to officers and employees who commence service with the political subdivision of the State, or the agency, authority or instrumentality thereof, on or after the effective date of P.L.2010, c.3. This [section] subsection shall not be construed to affect the terms in any collective negotiations agreement with a relevant provision in force on that effective date.

b. Notwithstanding any law, rule, or regulation to the contrary, and regardless of whether an officer’s or employee’s accumulated unused sick leave is compensable pursuant to subsection a. of this section, on or after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), or upon the expiration of a collective negotiations agreement applicable to that officer or employee in effect on that date, a political subdivision of the State, or an agency, authority, or instrumentality thereof, which has not adopted the provisions of Title 11A of the New Jersey Statutes, may purchase accumulated unused sick leave from an officer or employee subject to the following limitations:

(2) the amount paid to the officer or employee shall not exceed 60 percent of the dollar value of the accumulated unused leave on the date of purchase;

(4) no purchase of accumulated unused sick leave shall result in an officer or employee having less than 800 hours of accumulated unused sick leave.

(cf: P.L.2010, c.3, s.2)

6. (New section) a. Notwithstanding any law, rule, or regulation to the contrary, and regardless of whether an officer’s or employee’s accumulated unused sick leave is compensable, on or after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), or upon the expiration of a collective negotiations agreement applicable to that officer or employee in effect on that date, a political subdivision of the State, or an agency, authority, or instrumentality thereof, which has not adopted the provisions of Title 11A of the New Jersey Statutes, may purchase accumulated unused sick leave from an officer or employee that is not subject to the limitations of section 43 of P.L.2007, c.92 (C.40A:9-10.2) or section 2 of P.L.2010, c.3 (C.40A:9-10.4) subject to the following limitations:

(2) the amount paid to the officer or employee shall not exceed 60 percent of the dollar value of the accumulated unused leave on the date of purchase;

(4) no purchase of accumulated unused sick leave shall result in an officer or employee having less than 800 hours of accumulated unused sick leave.

7. N.J.S.40A:4-53 is amended to read as follows:

40A:4-53. A local unit may adopt an ordinance authorizing special emergency appropriations for the carrying out of any of the following purposes:

a. Preparation of an approved tax map.

b. Preparation and execution of a complete program of revaluation of real property for the use of the local assessor, or of any program to update and make current any previous revaluation program when such is ordered by the county board of taxation.

c. Preparation of a revision and codification of its ordinances.

d. Engagement of special consultants for the preparation, and the preparation of a master plan or plans, when required to conform to the planning laws of the State.

e. Preparation of drainage maps for flood control purposes.

f. Preliminary engineering studies and planning necessary for the installation and construction of a sanitary sewer system.

g. Authorized expenses of a consolidation commission established pursuant to the "Municipal Consolidation Act," P.L.1977, c.435 (C.40:43-66.35 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 C.40A:65-29).

h. Contractually required severance liabilities resulting from the layoff or retirement of employees. Such liabilities shall be paid without interest and, at the sole discretion of the local unit, may be paid in equal annual installments over a period not to exceed five years. No local unit shall be authorized to adopt an ordinance authorizing special emergency appropriations for the purpose of purchasing accumulated unused sick leave prior to layoff or retirement.

i. Preparation of a sanitary or storm system map.

j. Liabilities incurred to the Department of Labor and Workforce Development for the reimbursement of unemployment benefits paid to former employees.

k. Subject to approval by the Director of the Division of Local Government Services, non-recurring expenses incurred by a municipality to implement a consolidation with another municipality, or municipalities, pursuant to the "Municipal Consolidation Act," P.L.1977, c.435 (C.40:43-66.35 et seq.); the sparsely populated municipalities law, P.L.1995, c.376 (C.40:43-66.78 et seq.); sections 25 through 29 of the "Uniform Shared Services and Consolidation Act," P.L.2007, c.63 (C.40A:65-25 through C.40A:65-29); or N.J.S.40A:7-1 et seq., in the case of a consolidation effectuated through the annexation of land comprising an entire municipality or entire municipalities, to another municipality. The director shall approve the ordinance if he or she determines that the non-recurring expenses are reasonable and permissible by law and that the consolidation will result in long-term savings for the municipality.

A copy of all ordinances or resolutions as adopted relating to special emergency appropriations shall be filed with the director.

l. The immediate preparation, response, recovery, and restoration of public services during such time as a public health emergency, pursuant to the "Emergency Health Powers Act," P.L.2005, c.222 (C.26:13-1 et seq.), declared in response to COVID-19 remains in effect.

m. Notwithstanding the provisions of any law or regulation to the contrary, a deficit in prior year operations experienced by any municipality, utility, or enterprise during, or in the fiscal year immediately following, a fiscal year in which a public health emergency pursuant to the "Emergency Health Powers Act," P.L.2005, c.222 (C.26:13-1 et seq.), or a state of emergency, pursuant to P.L.1942, c.251 (C.App.A:9-33 et seq.), or both, has been declared by the Governor in response to COVID 19, the adoption of which shall be subject to approval of the Director. The deficit in operations shall be certified by the chief financial officer of the local unit to be directly attributable to COVID-19. The local unit shall apply for any financial assistance that may be available to the local unit from the federal government, the State, and other sources to offset any operating deficit directly attributable to COVID-19, and any such financial assistance obtained by the local unit shall be utilized to offset any operating deficit. The chief financial officer of a local unit seeking approval pursuant to this subsection shall submit a certification approved by a majority vote of the full governing body. The director shall provide a form, application, schedule and process for review, approval or denial, and reconsideration of the application.

The director shall approve or deny, in writing, any application submitted pursuant to this subsection within 45 days, or the next business day following the 45th day if the 45th day falls on a Saturday, Sunday, or holiday. If a written decision is not rendered within this time period, the application shall be deemed to be approved, and the local unit may proceed to adopt the appropriate resolution or ordinance. If an application is denied, the local unit may resubmit the application with such changes as the local unit deems appropriate, with submission and review subject to the same procedures set forth in this subsection.

As used in this subsection, "Deficit in operations" means a deficit balance reported on a local unit's "Results of Operation" schedule of the annual financial statement.

As used in subsections l. and m., "COVID-19" means the coronavirus disease 2019, as announced by the World Health Organization on February 11, 2020, and first identified in Wuhan, China.

(cf: P.L.2020, c.74, s.2)

8. This act shall take effect immediately.

STATEMENT

This bill amends and supplements various sections of the statutory law to permit a political subdivision of the State, or an agency, authority, or instrumentality thereof, to purchase accumulated unusual sick leave for an officer or employee subject to certain circumstances and limitations, as described in the bill. The bill also prohibits a local unit from adopting an ordinance authorizing special emergency appropriations for the purpose of purchasing accumulated unused sick leave prior to layoff or retirement.