Bill Text: NJ S1940 | 2014-2015 | Regular Session | Introduced
Bill Title: Exempts board of education and local government payments to entities under BPU jurisdiction from certain certification requirements.*
Spectrum: Bipartisan Bill
Status: (Passed) 2016-01-11 - Approved P.L.2015, c.177. [S1940 Detail]
Download: New_Jersey-2014-S1940-Introduced.html
Sponsored by:
Senator STEVEN V. OROHO
District 24 (Morris, Sussex and Warren)
Senator JEFF VAN DREW
District 1 (Atlantic, Cape May and Cumberland)
SYNOPSIS
Exempts boards of education and local government payments to public utilities from certain certification requirements.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning certain bill payment certification to boards of education and local government bodies and amending N.J.S.18A:19-4 and N.J.S.40A:5-16.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. N.J.S.18A:19-4 is amended to read as follows:
18A:19-4. a. All claims and demands against the board of education, except [such as] those which are to be paid from funds derived from athletic events or other activities of pupil organizations, shall, unless otherwise provided by resolution of the board of education, be examined, audited, and certified in writing by the secretary and presented by [him] the secretary to the board of education for its approval at a regularly called meeting, and if found to be correct, shall be ordered paid by the board of education, whereupon the secretary and the president of the board of education and the chief school administrator shall issue and sign a warrant in payment therefor. In a district which has a treasurer of school moneys, the secretary thereupon shall forward the warrant to the treasurer of school moneys.
b. The provisions of subsection a. of this section shall not apply to payments made by a board of education for the provision of:
(1) telecommunications service provided by a telecommunications company under the jurisdiction of the Board of Public Utilities;
(2) electric, gas, water, or sewer utility service provided by a public utility, as that term is defined pursuant to R.S.48:2-13, and regulated by the Board of Public Utilities pursuant to Title 48 of the Revised Statutes; or
(3) a service that is provided under a contract between a public utility, as that term is defined pursuant to R.S.48:2-13, and a board of education that is approved by the Board of Public Utilities under which rates for service are controlled by the board of education pursuant to the terms of the contract.
(cf: P.L.2010, c.39, s.16)
2. N.J.S.40A:5-16 is amended to read as follows:
40A:5-16. The governing body of any local unit shall not pay out any of its moneys:
a. unless the person claiming or receiving [the same] payment [shall] first [present] presents a detailed bill of items or demand, specifying particularly how the bill or demand is made up, with the certification of the party claiming payment that [it] the bill or demand is correct. The governing body may, by resolution, require an affidavit in lieu of the [said] certification, and the clerk or disbursing officer of the local unit may take [such] the affidavit without cost [,]; and
b. unless [it] the payment carries a written or electronic certification of some officer or duly designated employee of the local unit having knowledge of the facts that the goods have been received by, or the services rendered to, the local unit.
c. Notwithstanding the provisions of subsection a. of this section, upon adoption by the Local Finance Board of rules adopted pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) that provide for procedures to be followed by local units and under those circumstances deemed appropriate by the [board] Local Finance Board, a local unit shall be permitted to pay out its moneys without requiring a certification of the party claiming payment as otherwise required by subsection a. of this section. [Such] Those circumstances may include, but shall not be limited to:
(1) when payment to vendors is required in advance of the delivery of certain materials or services that cannot be obtained from any other source at comparable prices; [or]
(2) when ordering, billing, and payment transactions for goods or services are made through a computerized electronic transaction; or
(3) when the claim or demand is less than a threshold set by the [board] Local Finance Board and the certification is not readily obtainable by the contracting unit; but [such] the exceptions shall not include reimbursement of employee expenses or payment for personal services.
d. The provisions of subsection a. of this section shall not apply to payments made by a governing body of a local unit for the provision of:
(1) telecommunications service provided by a telecommunications company under the jurisdiction of the Board of Public Utilities;
(2) electric, gas, water, or sewer utility service provided by a public utility, as that term is defined pursuant to R.S.48:2-13, and regulated by the Board of Public Utilities pursuant to Title 48 of the Revised Statutes; or
(3) a service that is provided under a contract between a public utility, as that term is defined pursuant to R.S.48:2-13, and a governing body that is approved by the Board of Public Utilities under which rates for service are controlled by the governing body pursuant to the terms of the contract.
(cf: P.L.2000, c.126, s.21)
2. This act shall take effect immediately, but shall remain inoperative for 60 days following the date of enactment.
STATEMENT
This bill exempts payments for electric, gas, telecommunications, water, and sewer utility services provided by companies under the jurisdiction of the Board of Public Utilities (BPU) from school district and local government certification requirements related to payments for goods and services with public money. The intent of this bill is to relieve public bodies, such as school districts, counties, municipalities, and subdivisions of counties and municipalities, from burdensome requirements, and additional bureaucratic measures associated with the bill payment certification process. Since the billing procedures, service, and rates for public utility service are reviewed and regulated by the BPU, and subject to a long-established process governed according to law, the additional certification requirement is both redundant and unduly burdensome on school districts, local government units, and regulated public utilities. An exemption from these certification requirements will provide savings for taxpayers that fund school districts and local government entities, and will save money for public utility ratepayers throughout the State.
