Bill Text: NJ A2125 | 2010-2011 | Regular Session | Introduced
Bill Title: Places statutory restrictions on the type and amount of compensation provided to local public employees.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2010-02-11 - Introduced, Referred to Assembly Housing and Local Government Committee [A2125 Detail]
Download: New_Jersey-2010-A2125-Introduced.html
Sponsored by:
Assemblyman UPENDRA J. CHIVUKULA
District 17 (Middlesex and Somerset)
SYNOPSIS
Places statutory restrictions on the type and amount of compensation provided to local employees.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the compensation of certain public employees 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. (New section) The Legislature finds and declares:
Historically, the State's high property taxes have caused alarm and frustration among New Jersey residents.
Over a 10-year period, from 1998 to 2008, the average residential property tax in this State has almost doubled. In 1998, the average residential property value was $139,869, with a property tax bill of $4,119. In 2008, the average residential property value was $271,192, with a property tax bill of $7,045. The average residential property value increased by 193% between 1998 and 2008, and the average residential property tax bill increased by 171% during that same time period. This large increase in average residential property assessments and average residential property tax bills has undoubtedly exceeded any salary increases received by residential property taxpayers during that same 10-year period.
In December, 2009 the State Commission of Investigation (SCI) released an investigative report on local employee compensation and benefits entitled "The Beat Goes On . . . Waste and Abuse in Local Government Employee Compensation and Benefits" that provides startling examples of the expenditure of local property tax dollars on questionable benefits to local public employees. The SCI concludes that the State's taxpayers would collectively save many millions of dollars if these local public employers eliminated "wasteful and excessive public employee benefits" such as cash payouts for unused sick and vacation leave, bonuses and severance payments, as well as paid time off for weddings, holiday shopping, and other personal matters in addition to paid vacation leave, and many other questionable practices designed to benefit employees while saddling local property taxpayers with the costs.
For many years, local units of government have complained loudly and firmly that property tax increases are the direct result of actions of the Executive and Legislative branches of government, and of mandates imposed on local units of government by the federal government and the State. However, this SCI report clearly and effectively demonstrates that many local governing bodies have behaved in the past, and are currently behaving, very cavalierly in granting their employees excessive compensation and benefits funded by local property tax dollars. Their use of property tax dollars in this manner demonstrates a stunning lack of respect for the taxpayers they represent, and for the sacrifices many taxpayers make in order to afford to pay their ever-increasing property tax bills.
The SCI report offers clear and convincing evidence that in fact, the benefits and compensation decisions made by local units of government, and the costs of those decisions, are directly responsible for the property tax increases about which they loudly complain and blame the State. It is imperative that the State's property taxpayers be protected from the ability of local units of government to make decisions to provide such extravagant benefits and compensation to local public employees by statutorily restricting the type and range of benefits that local units of government may offer their employees.
2. (New section) As used in P.L. , c. (C. ) (pending before the Legislature as this bill, "officer or employee" means any full-time compensated person elected to, or employed by, any municipality or county, or any board, commission, agency, or instrumentality of, or created by, a municipality or county, including a local authority and a fire district.
3. (New section) Within 45 days of the enactment of P.L. , c. (C. ) (pending before the Legislature as this bill), the Local Finance Board shall, pursuant to section 33 of P.L.1947, c.151 (C.52:27BB-33), appoint a special advisory committee to conduct a thorough review of local government employment, compensation, and benefit practices. The special advisory committee shall organize as soon as possible after the appointment of its members and shall select a chair, from among its members, and a secretary, who need not be a member of the committee.
4. (New section) With 120 days following its first meeting, the special advisory committee appointed pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall report its findings and recommendations to the Local Finance Board. Within 45 days of the receipt of the report of the special advisory committee, the Local Finance Board shall transmit the report and its comments regarding the findings and recommendations of the special advisory committee to the Governor and the Legislature.
5. Section 42 of P.L.2007, c.92 (C.11A:6-19.1) is amended to read as follows:
42. Notwithstanding the provisions of any law, rule, or regulation to the contrary, a full time-officer or a full-time employee of a local unit of the State, or an agency, authority or instrumentality thereof, that has adopted the provisions of Title 11A, Civil Service, of the New Jersey Statutes, shall receive sick leave credit annually pursuant to the provisions of N.J.S.11A:6-5.
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] . This section shall apply to payments made after the effective date of [P.L.2007, c.92 (C.43:15C-1 et al.)] 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] an officer or employee in effect on that date [has accrued] and providing otherwise for 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].
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 and shall be calculated in the same manner as such compensation is calculated for State employees pursuant to N.J.S.11A:6-19.
[As used in this section, "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.]
(cf: P.L.2007, c.92, s.42)
6. Section 43 of P.L.2007, c.92 (C.40A:9-10.2) is amended to read as follows:
43. Notwithstanding the provisions of any law, rule, or regulation to the contrary, a full time-officer or a full-time employee of a local unit, or an agency, authority or instrumentality thereof, that has not adopted the provisions of Title 11A, Civil Service, of the New Jersey Statutes, shall receive sick leave credit annually pursuant to the provisions of N.J.S.11A:6-5.
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:
(1) on] . This section shall apply to payments made after the effective date of [P.L.2007, c.92 (C.43:15C-1 et al.)] 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] an officer or employee in effect on that date [has accrued] and providing otherwise for 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].
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 and shall be calculated in the same manner as such compensation is calculated for State employees pursuant to N.J.S.11A:6-19.
[As used in this section, "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].
(cf: P.L.2007, c.92, s.43)
7. N.J.S.11A:6-3 is amended to read as follows:
11A:6-3. [Vacation leave; full-time political subdivision employees.] Vacation leave for full-time political subdivision employees shall not exceed:
a. Up to one year of service, one working day for each month of service;
b. After one year and up to 10 years of continuous service, 12 working days;
c. After 10 years and up to 20 years of continuous service, 15 working days;
d. After 20 years of continuous service, 20 working days; and
e. Vacation not taken in a given year because of business demands shall accumulate and be granted during the next succeeding year only; except that vacation leave not taken in a given year because of duties directly related to a state of emergency declared by the Governor may accumulate at the discretion of the appointing authority until, pursuant to a plan established by the employee's appointing authority and approved by the commission, the leave is used or the employee is compensated for that leave, which shall not be subject to collective negotiation or collective bargaining.
f. Notwithstanding any other law, rule, or regulation to the contrary, full-time political subdivision employees shall receive supplemental compensation for unused vacation leave only at the time of retirement from a State-administered or locally-administered retirement system, based on the vacation leave credited on the date of retirement. No such payment shall exceed the value of one-year's worth of accumulated vacation leave.
(cf: P.L.2008, c.29, s.53)
8. Section 45 of P.L.2007, c.92 (C.40A:9-10.3) is amended to read as follows:
45. Vacation leave for a full-time officer or employee of a local unit, or an agency, authority, or instrumentality of a subdivision, that has not adopted the provisions of Title 11A, Civil Service, of the New Jersey Statutes shall be not exceed:
a. Up to one year of service, one working day for each month of service;
b. After one year and up to 10 years of continuous service, 12 working days;
c. After 10 years and up to 20 years of continuous service, 15 working days;
d. After 20 years of continuous service, 20 working days; and
e. Vacation not taken in a given year because of business demands shall accumulate and be granted during the next succeeding year only; except that vacation leave not taken in a given year because of duties directly related to a state of emergency declared by the Governor may accumulate at the discretion of the appointing authority until, pursuant to a plan established by the employee's appointing authority and the leave is used or the employee is compensated for that leave, which shall not be subject to collective negotiation or collective bargaining.
f. Notwithstanding any other law, rule, or regulation to the contrary, full-time political subdivision employees shall receive supplemental compensation for unused vacation leave only at the time of retirement from a State-administered or locally-administered retirement system, based on the vacation leave credited on the date of retirement. No such payment shall exceed the value of one-year's worth of accumulated vacation leave.
Notwithstanding any law or any rule or regulation to the contrary, an officer or employee of a political subdivision of the State, or an agency, authority, or instrumentality of a subdivision, that has not adopted the provisions of Title 11A, Civil Service, of the New Jersey Statutes, who does not take vacation leave that accrues on or after the effective date of [P.L.2007, c.92 (C.43:15C-1 et al.)] P.L. , c. (C. ) (pending before the Legislature as this bill), or on or after the date on which the person becomes an officer or employee, in a given year because of business demands shall be granted that accrued leave only during the next succeeding year.
However, vacation leave not taken in a given year because of duties directly related to a state of emergency declared by the Governor may accumulate at the discretion of the appointing authority until, pursuant to a plan established by the officer or employee's appointing authority, the leave is used [or the employee or officer is compensated for that leave, which shall not be subject to collective negotiation or collective bargaining.
A person who (1) is an officer or employee on the effective date of P.L.2007, c.92 (C.43:15C-1 et al.), or (2) becomes an officer or employee after that effective date, and has previously accrued vacation leave shall be eligible and shall be permitted to retain and use that accrued vacation leave.
As used in this section, "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].
(cf: P.L.2007, c.92, s.45)
9. (New section) Notwithstanding the provisions of any law, rule, or regulation to the contrary, a political subdivision of the State, or an agency, authority, or instrumentality of a subdivision, that has adopted the provisions of Title 11A, Civil Service, of the New Jersey Statutes shall grant to its employees only those paid holidays granted to State employees and set forth in section 25 of P.L.2008, c.89 (C.11A:6-24.1).
10. (New section) Notwithstanding the provisions of any law, rule or regulation to the contrary, a political subdivision of the State, or an agency, authority, or instrumentality of a subdivision, that has not adopted the provisions of Title 11A, Civil Service, of the New Jersey Stautes shall grant to its employees only those paid holidays granted to State employees and set forth in section 25 of P.L.2008, c.89 (C.11A:6-24.1).
11. (New section) a. Notwithstanding the provisions of any law, rule, or regulation to the contrary, a political subdivision of the State, or an agency, authority, or instrumentality of a subdivision, that has adopted the provisions of Title 11A, Civil Service, of the New Jersey Statutes shall grant to its employees paid personal leave only in the form of administrative leave, not to exceed three working days per calendar year as is provided to State employees pursuant to N.J.S.11A:6-6. As set forth in N.J.S.11A:6-6, such leave shall not be cumulative and any such leave unused by an employee at the end of any year shall be cancelled.
b. Notwithstanding the provisions of any law, rule, or regulation to the contrary, a political subdivision of the State, or an agency, authority, or instrumentality of a subdivision, that has adopted the provisions of Title 11A, Civil Service, of the New Jersey Statutes shall grant to its employees compensatory time strictly based upon hours actually worked beyond the employee's normally scheduled hours of employment as confirmed by daily attendance records. Compensatory leave not taken in a given year because of business demands shall accumulate and be granted during the next succeeding year only. An employee shall not exchange compensatory leave for a cash payment.
12. (New section) a. Notwithstanding the provisions of any law, rule, or regulation to the contrary, a political subdivision of the State, or an agency, authority, or instrumentality of a subdivision, that has not adopted the provisions of Title 11A, Civil Service, of the New Jersey Statutes shall grant to its employees paid personal leave only in the form of administrative leave, not to exceed three working days per calendar year as is provided to State employees pursuant to N.J.S.11A:6-6. As set forth in N.J.S.11A:6-6 with respect to State employees, such leave shall not be cumulative and any such leave unused by an employee at the end of any year shall be cancelled.
b. Notwithstanding the provisions of any law, rule, or regulation to the contrary, a political subdivision of the State, or an agency, authority, or instrumentality of a subdivision, that has not adopted the provisions of Title 11A, Civil Service, of the New Jersey Statutes, shall grant to its employees compensatory time strictly based upon hours actually worked beyond the employee's normally scheduled hours of employment as confirmed by daily attendance records. Compensatory leave not taken in a given year because of business demands shall accumulate and be granted during the next succeeding year only. An employee shall not exchange compensatory leave for a cash payment.
13. (New section) Notwithstanding the provisions of any law, rule, or regulation to the contrary, for officers and employees of a local unit of the State, or any agency, authority, or instrumentality thereof, that has adopted the provisions of Title 11A, Civil Service, of the New Jersey Statutes, the use of six or more consecutive days of accumulated sick leave by an employee in the 12 months prior to retirement and in anticipation of that retirement, without a medical necessity verified in writing by a physician, is prohibited. The commission shall promulgate rules and procedures to ensure that verification of medical necessity is provided. The rules shall provide that the employer may require the employee to submit to an examination by a physician selected by the employer to verify the medical necessity. The employer shall (1) impose a fine and issue a reprimand against the employee found to be in violation of this prohibition, with the fine to be an amount equivalent to three times the daily rate of compensation for each day of violation, or (2) for a second violation of the prohibition, deduct all sick leave found to have been used in violation of this prohibition from the number of unused accumulated sick leave credited on the effective date of retirement upon which supplemental compensation, if any, for the employee at the time of retirement is calculated, or (3) both.
14. (New section) Notwithstanding any law, rule or regulation to the contrary, for officers or employees of a local unit of the State, or any agency, authority or instrumentality thereof, that has not adopted the provisions of Title 11A, Civil Service, of the New Jersey Statutes, the use of six or more consecutive days of accumulated sick leave by an officer or employee in the 12 months prior to retirement and in anticipation of that retirement, without a medical necessity verified in writing by a physician, is prohibited. The governing body of the political subdivision shall promulgate rules and procedures to ensure that verification of medical necessity is provided. The rules shall provide that the employer may require the officer or employee to submit to an examination by a physician selected by the employer to verify the medical necessity. The employer shall (1) impose a fine and issue a reprimand against the officer or employee found to be in violation of this prohibition, with the fine to be an amount equivalent to three times the daily rate of compensation for each day of violation, or (2) for a second violation of the prohibition, deduct all sick leave found to have been used in violation of this prohibition from the number of unused accumulated sick leave credited on the effective date of retirement upon which supplemental compensation, if any, for the officer or employee at the time of retirement is calculated, or (3) both.
15. N.J.S.40A:9-10 is amended to read as follows
40A:9-10. a. Except as otherwise provided by law, the board of chosen freeholders of the county or the governing body of the municipality shall fix the amount of salary, wages or other compensation to be paid to county and municipal officers and employees unless they are to serve without compensation.
b. Notwithstanding the provisions of any law, rule or regulation to the contrary, the board of chosen freeholders of the county or the governing body of the municipality may not authorize any compensation for its officers and employees in the form of severance pay or separation payouts.
(cf: P.L.1971, c.200, s. 1)
16. N.J.S.11A:6-23 is amended to read as follows:
N.J.S.11A:6-23. a. The Civil Service Commission shall adopt rules for the implementation of supplemental compensation, which shall include but need not be limited to application and eligibility procedures.
b. The rules of the commission shall provide that no officer or employee shall receive any compensation in the form of severance pay or separation payouts.
(cf: P.L.2008, c.29, s.55)
17. N.J.S.40A:10-10 is amended to read as follows:
40A:10-10. The commissioners shall have the following powers and authority:
a. Employ necessary clerical assistants, whose compensation shall be fixed and paid by the governing body of the local unit in the same manner as is that of other employees of the local unit;
b. Invest the fund and all additions and accretions thereto in such securities as they shall deem best suited for the purposes of this article;
c. Adopt rules and regulations for the control and investment of the fund;
d. Keep on hand at all times sufficient money, or have the same invested in such securities as can be immediately sold for cash, for the payment of losses to any buildings or property of the local unit or of a county college which participates in the fund pursuant to P.L.1988, c.144 (C.18A:64A-25.40 et al.) or of a county vocational school which participates in the fund pursuant to P.L.1988, c.143 (C.18A:18B-8 et al.), or liability resulting from the operation of publicly owned motor vehicles, equipment or apparatus;
e. Fix reasonable rates of premium for all insurance carried by the insurance fund, and shall effect all insurance in the insurance fund or with any insurance company or companies authorized to do business in this State, provided that the amount of any contribution required as to employees and officers of a local unit shall be the greater of either 1.5 percent of base salary, or a percentage of the premium or periodic charges for health coverage, determined by a binding collective negotiations agreement;
f. Premiums for insurance, whether carried in the insurance fund or placed with insurance companies, shall be paid to the commissioners by the board, commission, department, committee or officer having charge or control of the property insured;
g. All insurance upon property owned or controlled by a local unit or any of its departments, boards, agencies or commissions, or by a board of education of a participating county vocational school or by a board of trustees of a participating county college shall be placed and effected by the commissioners;
h. If provided by the rules and regulations of the commission, the secretary to the insurance fund commission shall be entrusted with the daily operation of the insurance fund and shall submit a report to the commissioners at least once a month.
(cf: P.L.1988, c.144, s.5)
18. N.J.S.40A:10-21 is amended to read as follows:
40A:10-21. Any employer entering into a contract pursuant to this subarticle is hereby authorized to pay part or all of the premiums or charges for the contracts and may appropriate out of its general funds any money necessary to pay premiums or charges or portions thereof. The contribution required of any employee toward the cost of coverage may be deducted from the pay, salary or other compensation of the employee upon an authorization in writing made to the appropriate disbursing officer. The amount of the contribution required pursuant to this section as to any employees and officers of a political subdivision shall be the greater of either 1.5 percent of base salary, or a percentage of the premium or periodic charges for health care coverage, determined by a binding collective negotiations agreement.
The employer may reimburse an active employee for his premium charges under Part B of the Federal Medicare Program covering the employee alone.
Nothing herein shall be construed as compelling an employer to pay any portion of the premiums or charges attributable to the contracts.
(cf: PL.1979, c.230, s.1)
19. Section 7 of P.L.1964, c.125 (C:52:14-17.38) is amended to read as follows:
7. a. The Division of Pensions and Benefits shall certify to the certifying agent of each employer electing participation under the program the premium rates and periodic charges applicable to the coverage provided for employees and dependents. The participating employer shall remit to the division all contributions to premiums and periodic charges in advance of their due dates, subject to the rules and regulations of the commission.
Notwithstanding the provisions of any other law to the contrary, the obligations of a participating employer other than the State to pay the premium or periodic charges for health benefits coverage provided under P.L.1961, c.49 (C.52:14-17.25 et seq.) may be determined by means of a binding collective negotiations agreement. With respect to employees for whom there is no majority representative for collective negotiations purposes, the employer may, in its sole discretion, modify the respective payment obligations set forth in law for the employer and such employees in a manner consistent with the terms of any collective negotiations agreement binding on the employer.
b. (1) From funds allocated therefor, the employer other than the State, upon the adoption and submission to the division of an appropriate resolution prescribed by the commission, may pay the premium or periodic charges for the benefits provided to a retired employee and the employee's dependents covered under the program, if the employee retired from a State or locally-administered retirement system, excepting the employee who elected deferred retirement, and may also reimburse the retired employee for the employee's premium charges under Part B of Medicare covering the retired employee and the employee's spouse if the employee:
(a) retired on a disability pension; or
(b) retired after 25 or more years of nonconcurrent service credit in one or more State or locally-administered retirement systems, excluding service credited under the Defined Contribution Retirement Program established pursuant to P.L.2007, c.92 (C.43:15C-1 et al.), and a period of service of up to 25 years with the employer at the time of retirement, such period of service to be determined by the employer and set forth in an ordinance or resolution as appropriate; or
(c) retired and reached the age of 65 years or older with 25 years or more of nonconcurrent service credit in one or more State or locally-administered retirement systems, excluding service credited under the Defined Contribution Retirement Program, and a period of service of up to 25 years with the employer at the time of retirement, such period of service to be determined by the employer and set forth in an ordinance or resolution as appropriate; or
(d) retired and reached the age of 62 years or older with at least 15 years of service with the employer, excluding service credited under the Defined Contribution Retirement Program.
"Retired employee and the employee's dependents" may, upon adoption of an appropriate resolution therefor by the participating employer, also include otherwise eligible employees, and their dependents, who retired from one or more State or locally-administered retirement systems prior to the date that the employer became a participating employer in the New Jersey State Health Benefits Program or who did not elect to continue coverage in the program during such time after the employer became a participating employer that the employer did not pay premium or periodic charges for benefits to retired employees and their dependents pursuant to this section. Eligibility and enrollment of such employees and dependents shall be in accordance with such rules and regulations as may be adopted by the State Health Benefits Commission.
The employer other than the State may, by resolution, pay the premium or periodic charges for the benefits provided to the surviving spouse of a retired employee and the employee's dependents covered under the program as provided in this section.
(2) Notwithstanding the provisions of any other law to the contrary, the obligations of an employer other than the State, except an independent State authority, board, commission, corporation, agency, or organization deemed to be covered by section 6 of P.L.1996, c.8 (C.52:14-17.28b) and except school boards whose employees are covered by section 3 of P.L.1987, c.384 (C.52:14-17.32f), section 2 of P.L.1992, c.126 (C.52:14-17.32f1) and section 1 of P.L.1995, c.357 (C.52:14-17.32f2), to pay the premium or periodic charges for health benefits coverage under the provisions of paragraph (1) may be determined by means of a binding collective negotiations agreement, including any agreement in force at the time of the adoption of this act, P.L.1999, c.48; provided however that the amount of any contribution from an employee required pursuant to a binding collective negotiations agreement shall be not less than 1.5% of base salary. With respect to employees for whom there is no majority representative for collective negotiations purposes, the employer may, in its sole discretion, determine the payment obligations for the employer and the employees, except that if there are collective negotiations agreements binding upon the employer for employees who are within the same community of interest as employees in a collective negotiations unit but are excluded from participation in the unit by the "New Jersey Employer-Employee Relations Act," P.L.1941, c.100 (C.34:13A-1 et seq.), the payment obligations shall be determined in a manner consistent with the terms of any collective negotiations agreement applicable to the collective negotiations unit.
c. Notwithstanding the provisions of any other law to the contrary, the payment obligations of an employee of an employer other than the State, except an independent State authority, board, commission, corporation, agency, or organization, for health benefits coverage under subsection b. shall be the payment obligations applicable to the employee on the date the employee retires on a disability pension or the date the employee meets the service credit and service requirements for the employer payment for the coverage, as the case may be.
(cf: P.L.2007, c.92, s.30)
20. Section 40 of P.L.2007, c.63 (C.40A:5-49) is amended to read as follows:
40. Whenever the governing body of a local unit proposes a resolution, or other action that will establish or modify the salaries, benefits, or other compensation of any individual employee or group of its employees, that measure shall only be taken after the local unit first holds a public meeting where the proposed action shall be introduced and discussed by the governing body. Notice of the date, time, place, and purpose of the public meeting, and of the time and place at which a copy of the proposed measure, together with the employee compensation disclosure form required to be prepared pursuant to this section, shall be available to each person requesting it, at no charge, during the week preceding such public meeting. The public meeting shall be advertised in a newspaper having substantial circulation in the local unit at least 10 days prior to the meeting date. Salaries for local officers and employees that are established, increased, or decreased by ordinance pursuant to the provisions of N.J.S.40A:9-165 shall continue to be fixed and determined in accordance with that section.
Prior to the publication of the newspaper notice required by this section, the chief financial officer or other appropriate officer of the local unit shall prepare an employee compensation disclosure form pursuant to the requirements of this section. The employee compensation disclosure form shall be made part of any formal action taken by the local unit, but shall not be considered part of any contract or agreement.
The chief financial officer of the local unit shall file the employee compensation disclosure form with the clerk or the secretary to the governing body of the local unit prior to a public meeting when such measure shall be introduced and discussed. Any such proposed measure shall be announced publicly at the meeting, along with a declaration that an employee compensation disclosure form has been provided to the governing body of the local unit pursuant to the requirements of sections 38 through 41 of P.L.2007, c.63 (C.40A:5-48 et al.). Any formal action by a governing body approving or disapproving a measure establishing or modifying the salaries, benefits, or other compensation of its employees shall occur no earlier than the tenth calendar day immediately following the meeting at which the measure was introduced and discussed.
The employee compensation disclosure form shall display the estimated cost of salary, benefits or other compensation, for each year of the contract for each individual employee or group of employees, itemized by the specific form of compensation, the estimated cost of the compensation at the time of the action, [and] the incremental difference between each year, and the terms and conditions of all special compensation and benefit arrangements negotiated with and awarded to any individual employee or group of employees upon retirement, resignation, or termination from employment.
Governing body actions taken without compliance with this section shall be null and void.
(cf: P.L.2007, c.63, s.40)
21. This act shall take effect immediately
STATEMENT
This bill would implement the seven recommendations for changes to State laws recommended by the State Commission of Investigation (SCI) in its report on abuses in local government employment practices entitled "The Beat Goes On . . . Waste and Abuse in Local Government Employee Compensation and Benefits." The report was released on December 1, 2009 following an SCI examination of local government employment policies, contracts, and agreements involving a comprehensive mix of police, fire, and civilian personnel in 75 local government units, including counties, municipalities, and quasi-independent local authorities. If enacted, the provisions of the legislation would take effect immediately. The bill defines "local government officer or employee" as any full-time compensated person elected to, or employed by, any municipality or county, or any board, commission, agency or instrumentality of, or created by, a municipality or county, including a local authority and a fire district.
The Commission urged, in Recommendation 1 of the report, that the Legislature establish uniformly applicable standards for the employment of local government officers and employees. Sections 3 and 4 of this bill require the Local Finance Board to appoint a special advisory committee to conduct a thorough review of local government employment, compensation and benefit practices. The special advisory committee would be required to submit its findings to the Local Finance Board within 120 days of its first meeting. The Local Finance Board would be required to transmit the review and its comments to the Governor and the Legislature within 45 days of its receipt of the report.
Sections 5 through 12 of the bill would implement Recommendations 2 and 5 of the SCI report through the establishment of uniform limits on the amount of employee leave time granted to local government officers and employees and the amount of time they may redeem for additional compensation when they retire or leave local government service. Under the bill, local government officers and employees would be granted 15 working days of sick leave per year, and supplemental compensation for unused sick time may not exceed $15,000. Supplemental compensation for unused vacation time would be limited to the value of one-year's worth of accumulated vacation.
Similarly, the bill also standardizes the amount of vacation time that may be granted to local government officers and employees. All local government employers would be permitted to grant to their employees only those paid holidays granted to State employees. Furthermore, local government employers would be required to grant their employees up to three days of paid personal leave in the form of administrative leave, but this leave time may not be accumulated from year-to-year. Sections 11 and 12 of the bill also would require local government employers to grant their officers and employees compensatory time strictly based upon time actually worked beyond the employee's normally scheduled hours of employment, as confirmed by daily attendance records. Compensatory time earned in any given year may accumulate in the next succeeding year only and may not be exchanged for a cash payment.
Sections 13 and 14 of the bill would implement Recommendation 3 of the report and would eliminate terminal leave. Terminal leave allows public employees to remain on the public payroll at full salary and benefits immediately prior to their retirement without coming to work by using up accumulated leave, usually in the form of many sick days banked over the course of a career. This bill would prohibit the use of six or more accumulated sick days by an employee within the twelve month period immediately prior to their anticipated retirement, unless a physician verifies in writing the necessity of that medical leave. The local government employer may require the employee to submit to a examination selected by the employer to verify the medical necessity. The bill requires the employer to impose a fine, reprimand, and other penalties against the employee, depending on the frequency of the employee's violation of this prohibition.
Sections 15 and 16 address Recommendation 4 of the report, and prohibit local governments from providing their employees with any supplemental compensation in addition to their base annual salary. This restriction is intended to prevent the abuse of severance packages and employment-separation agreements, which have provided some local government officers and employees with items such as incentive payments and lucrative severance packages provided to employees who have voluntarily resigned their employment. Sections 17 through 19 would implement Recommendation 6 of the report and would require all local government officers and employees to contribute toward the cost of their health care coverage. The amount of the contribution would be the greater of either 1.5% of an employee's base salary or a percentage of the premium or periodic charges for health coverage.
Finally, section 20 of the bill would implement Recommendation 7 of the report and would require local government employers to disclose the terms and conditions of all special compensation and benefit arrangements to any individual employee or employees upon their retirement, resignation, or termination from government service.
