Bill Text: NJ S2955 | 2012-2013 | Regular Session | Introduced
Bill Title: Concerns remuneration of employees of local sewerage, utilities, and county improvement authorities.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2013-09-12 - Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee [S2955 Detail]
Download: New_Jersey-2012-S2955-Introduced.html
Sponsored by:
Senator SAMUEL D. THOMPSON
District 12 (Burlington, Middlesex, Monmouth and Ocean)
SYNOPSIS
Concerns remuneration of employees of local sewerage, utilities, and county improvement authorities.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the remuneration of executive directors of certain local authorities, supplementing chapter 5A of Title 40A of the New Jersey Statutes, and amending various parts of the statutory law.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. (New section) a. As used in subsection b. of this section, "authority" means a municipal or county sewerage authority created pursuant to P.L.1946, C.138 (C.40:14A-1 et seq.), a municipal or county utilities authority created pursuant to P.L.1957, c.183 (C.40:14B-1 et seq.), or a county improvement authority created pursuant to P.L.1960, c.183 (C.40:37A-44 et seq.).
b. On and after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), the remuneration of every officer or employee of an authority, including the executive director of an authority, shall be subject to the following requirements:
(1) the annual salary of each officer or employee shall not exceed the maximum salary for certain State officials set forth in section 1 of P.L.1974, c.55 (C.52:14-15.107);
(2) an officer or employee shall not receive a car, or an allowance toward the purchase or lease of a car;
(3) an officer or employee shall not receive an expense account as part of his or her compensation;
(4) an officer or employee who is entitled to health benefits coverage from another government employer shall not be eligible to receive health benefits coverage from both the authority by which the officer or employee is employed, and any other governmental employers. Such an officer or employee shall be required to choose either the authority or the other government employer as their source of health car benefits, and that person shall not receive any payment in lieu of health care benefits from the other government employer; and
(5) sick leave accumulated on and after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) shall not be subject to conversion into supplemental compensation for any officer or employee of an authority upon that officer's or employee's retirement, or other separation, from employment with the authority.
c. If, on the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) the employees of an authority are remunerated pursuant to an employment contract, the requirements of this section shall not take effect until the contract has expired.
2. Section 5 of P.L.1946, c.138 (C.40:14A-5) is amended to read as follows:
5. (a) The powers of a sewerage authority shall be vested in the members thereof in office from time to time. A majority of the entire authorized membership of the sewerage authority shall constitute a quorum at any meeting thereof. Action may be taken and motions and resolutions adopted by the sewerage authority at any meeting of the members thereof by vote of a majority of the members present, unless in any case the by-laws of the sewerage authority shall require a larger number. The sewerage authority may delegate to one or more of its officers, agents or employees such powers and duties as it may deem proper.
The minutes of every meeting of an authority created by a county organized pursuant to the provisions of the "county executive plan" of the "Optional County Charter Law," P.L.1972, c.154 (C.40:41A-1 et seq.) shall be delivered by the end of the fifth business day following the meeting, except as otherwise provided herein, by and under the certification of the secretary of the authority to the county executive. Except as otherwise provided herein, no action taken at a meeting by the members of an authority shall be effective until approved by the county executive or until 10 days after the copy of the minutes shall have been delivered. If, within the 10-day period, the county executive returns to the authority and to the board of freeholders the copy of the minutes with a veto of any action taken by the authority or any member thereof at a meeting, together with a written explanation of the reasons for his veto of the action, that action shall be of no effect unless the board of freeholders overrides the veto of the action by a majority vote of its full membership within 10 days of the receipt of the veto action. The county executive may approve all or any part of an action taken at a meeting prior to the expiration of the 10-day period. If the county executive takes no action with respect to the minutes within the 10-day period, the minutes shall be deemed to be approved. The veto powers accorded under this subsection shall not affect in any way the covenants contained in the bond indentures of the authority, or any collective bargaining agreement or binding arbitration decisions affecting employees of the authority.
No resolution or other action of the authority providing for the issuance or refunding of bonds or other financial obligations shall be adopted or otherwise made effective by the authority without the prior approval in writing of the county executive. This power shall be exercised with due regard for the rights of the holders of bonds of the authority at any time outstanding, and nothing in, or done pursuant to, this subsection shall in any way limit, restrict or alter the obligations or powers of the authority or any representative or officer of the authority to carry out and perform in every detail each and every covenant, agreement or contract at any time made or entered into by or on behalf of the authority with respect to its bonds or for the benefit, protection or security of the holders thereof.
If two-thirds or more of the members of an authority make a determination that an action taken at a meeting is in response to an emergency situation, a copy of the minutes of that meeting shall be delivered to the county executive as soon as practicable following the meeting and the county executive shall have up to 24 hours after the copy of the minutes has been delivered to approve or veto the minutes of that meeting. If the county executive takes no action with respect to the minutes within the 24-hour period, the minutes shall be deemed approved. If, within the 24-hour period, the county executive returns to the authority and to the board of freeholders the copy of the minutes with a veto of any action taken by the authority or any member thereof at the meeting, together with a written explanation of the reasons for his veto of the action, that action shall be of no effect unless the board of freeholders overrides the veto of the action by a majority vote of its full membership within 48 hours of the receipt of the veto action.
(b) Each member of a sewerage authority shall hold office for the term for which he was appointed and until his successor has been appointed and has qualified.
(c) No member, officer or employee of a sewerage authority shall have or acquire any interest, direct or indirect, in the sewerage system or in any property included or planned to be included in the sewerage system or in any contract or proposed contract for materials or services to be furnished to or used by the sewerage authority, but neither the holding of any office or employment in the government of any county or municipality or under any law of the State nor the owning of any property within the State shall be deemed a disqualification for membership in or employment by a sewerage authority, and members of the governing body of a local unit may be appointed by such governing body and may serve as members of a sewerage authority. A member of a sewerage authority may be removed only by the governing body by which he was appointed and only for inefficiency or neglect of duty or misconduct in office and after he shall have been given a copy of the charges against him and, not sooner than ten days thereafter, had opportunity in person or by counsel to be heard thereon by such governing body.
(d) A sewerage authority may reimburse its members for necessary expenses incurred in the discharge of their duties. The resolution, ordinance or parallel ordinances for the creation of a sewerage authority may provide that the members of the sewerage authority may receive compensation for their services within an annual and other limitations to be stated in such resolution, ordinance or parallel ordinances, and in that event, each member may receive from the sewerage authority such compensation for his services as the sewerage authority may determine within the limitations stated in such resolution, ordinance or parallel ordinances. The said annual or other limitations stated in any such resolution, ordinance or parallel ordinances may be amended by subsequent resolution, ordinance or parallel ordinances, as the case may be, but no reduction of any such limitation shall be effective as to any member of the sewerage authority then in office except upon the written consent of the sewerage authority. No member of any sewerage authority shall receive any compensation for his services except as provided in this subsection.
(e) Every sewerage authority, upon the first appointment of its members and thereafter on or after the first day of February in each year, shall annually elect from among its members a chairman and a vice-chairman who shall hold office, until the first day of February next ensuing and until their respective successors have been appointed and have qualified. Every sewerage authority may also, without regard to the provisions of Title 11 of the Revised Statutes, appoint and employ a secretary and such professional and technical advisers and experts and such other officers, agents and employees as it may require, and shall determine their qualifications, terms of office, duties and compensation, subject to the limitations set forth in section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill).
(f) The minutes of every meeting of an authority created by a county which has not adopted the provisions of the "Optional County Charter Law," P.L.1972, c.154 (C.40:41A-1 et seq.), shall be delivered by the end of the fifth business day following the meeting, by and under the certification of the secretary of the authority to each member of the county board of freeholders. No action taken at a meeting by the members of an authority shall be effective if, within 10 days after the copy of the minutes shall have been delivered to each member of the board of freeholders, such action is vetoed by the director of the board of freeholders, with the concurrence of a majority of the members of the board of freeholders. If, within the 10-day period, the board of freeholders returns to the authority the copy of the minutes with a veto of any action taken by the authority or any of the authority's members thereof at a meeting, that action shall be of no effect. If the director takes no action with respect to the minutes within the 10-day period, the minutes shall be deemed to be approved. The veto power accorded under this subsection shall not affect in any way the covenants contained in the bond indentures of the authority, or any collective bargaining agreement or binding arbitration decisions affecting employees of the authority.
(cf: P.L.2010, c.52, s.2)
3. Section 18 of P.L.1957, c.183 (C.40:14B-18) is amended to read as follows:
18. Every municipal authority, upon the first appointment of its members and thereafter on or after February 1 in each year, shall annually elect from among its members a chairman and a vice-chairman, who shall hold office until February 1 next ensuing and until their respective successors have been appointed and have qualified. Every municipal authority may also appoint and employ, full- or part-time, a secretary, an executive director, managerial personnel, technical advisors and experts, professional employees, and persons who shall render professional services as set forth in section 5 of P.L. 1971, c. 198 (C. 40A:11-5), as the authority may determine necessary for its efficient operations, and it shall determine their qualifications, terms of office, for periods not to exceed five years, duties and compensation and enter into contracts therefor, for periods not to exceed five years, as it deems necessary, subject to the limitations set forth in section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill). Such municipal authority may also appoint and employ such other agents and employees as it may require and determine their duties and compensation. The provisions of this section with regard to terms shall not apply to the positions of general counsel and consulting engineer. The appointing and employing powers of the municipal authority set forth in this section shall be exercised without regard to the provisions of Title 11 of the Revised Statutes; provided, however, that any municipal authority which, prior to the effective date of this amendatory act, has accepted the jurisdiction of the Department of Civil Service, other than by reason of compliance with a court order, shall continue to be subject to the provisions of Title 11.
(cf: P.L.1985, c.537, s.2)
4. Section 6 of P.L.1960, c.183 (C.40:37A-49) is amended to read as follows:
6. Every authority, upon the first appointment of its members and thereafter on or after February 1 in each year, shall annually elect from among its members a chairman and a vice chairman who shall hold office until February 1 next ensuing and until their respective successors shall have been appointed and qualified. Every authority may also appoint and employ, without regard to the provisions of Title 11, Civil Service, of the Revised Statutes, a secretary, a treasurer, an executive director and a chief engineer and such other agents and employees as it may require, and it shall determine their qualifications, terms of office, duties and compensation, subject to the limitations set forth in section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill).
(cf: P.L.1960, c.183, s.6)
5. This act shall take effect immediately.
STATEMENT
This bill makes certain requirements for the remuneration of officers and employees, including the executive director, of municipal and county sewerage and utilities authorities, and of county improvement authorities. The bill requires that: the annual salary of each authority officer or employee cannot exceed the maximum salary for State Cabinet officers, currently set by statute at $141,000; officers and employees cannot receive a car, an allowance toward the purchase or lease of a car, or an expense account; and an officer or employee who is entitled to health benefits coverage from another government employer shall not be eligible to receive health benefits coverage from both the authority by which the officer or employee is employed, and any other governmental employer. Such an officer or employee shall be required to choose either the authority or the other government employer as their source of health benefits coverage, and that person shall not receive any payment in lieu of health care benefits from the entity that he or she has not designated as his or her health benefits coverage provider. In addition, sick leave accumulated on and after the effective date of the bill would not be subject to conversion into supplemental compensation for any officer or employee of an authority upon that officer's or employee's retirement, or other separation, from employment by the authority. Sick leave is intended as a limited benefit to aid people who have to take off from work because they are ill, and is not intended to be banked away as a supplemental retirement benefit. Employees who abuse their sick time by using it as vacation time can be disciplined under current employment policies and should not be "bribed" to show up for their jobs.
The provisions of this bill are designed to protect State residents from abusive financial practices that, in some cases, have seen large salaries and expensive benefits packages provided to authority employees through the use of ratepayer dollars. It is the intent of the sponsor that the user fees paid to these authorities should be used to pay for the maintenance and operation of the authority, and to compensate those employees who work for the authority, in a reasonable manner - these funds should not be used to pay excessive amounts of salary and benefits costs for their high level employees.
