Bill Text: NJ A3698 | 2014-2015 | Regular Session | Amended

New Jersey Assembly Bill 3698 (Prior Session Legislation)

Bill Title: Permits municipalities and counties to issue bonds to fund buy-out of accumulated leave time in order to reduce future terminal leave expenses.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2015-06-11 - Assembly Floor Amendment Passed (Jasey) [A3698 Detail]

Download: New_Jersey-2014-A3698-Amended.html

[First Reprint]

ASSEMBLY, No. 3698

STATE OF NEW JERSEY

216th LEGISLATURE

INTRODUCED SEPTEMBER 18, 2014

Sponsored by:

Assemblyman JOHN F. MCKEON

District 27 (Essex and Morris)

Assemblywoman L. GRACE SPENCER

District 29 (Essex)

SYNOPSIS

Permits municipalities and counties to issue bonds to fund buy-out of accumulated leave time in order to reduce future terminal leave expenses.

CURRENT VERSION OF TEXT

As amended by the General Assembly on June 11, 2015.

An Act concerning local borrowing to satisfy certain retirement obligations and amending N.J.S.40A:2-3.

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

1. N.J.S.40A:2-3 is amended to read as follows:

40A:2-3. Any local unit, by bond ordinance, may incur indebtedness, borrow money, authorize and issue negotiable obligations for financing:

a. any capital improvement or property which it may lawfully make or acquire;

b. any purpose for which it is authorized or required by law to make an appropriation, except current expenses, as may be defined by rule and regulation of the Local Finance Board, and payment of obligations (other than those for temporary financing); [or]

c. the amount of any contribution by a local unit that is a sending municipality under a regional contribution agreement pursuant to section 12 of P.L.1985, c.222 (C.52:27D-312); or

d. the amount necessary to fund ¹, in whole, or in part, at the discretion of the local unit,¹ the payment of supplemental compensation for leave time currently accrued by all officers and employees that would be required to be paid at retirement or termination pursuant to contract, collective negotiations agreement, or employment policy, provided that the cost of bonding is determined and certified by the chief financial officer of the local unit ¹, using the current bond interest rate at the time of the certification,¹ to be ¹[less than the cost of borrowing at the times that the obligations to convert the accrued leave time to money are anticipated to occur] in the best financial interests of the local unit at the time the borrowing is to occur¹.