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A1452
ASSEMBLY, No. 1452
STATE OF NEW JERSEY
222nd LEGISLATURE
�
PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION
Sponsored by:
Assemblyman GABRIEL RODRIGUEZ
District 33 (Hudson)
SYNOPSIS
���� Allows political subdivisions of State to purchase
unused sick leave from officer or employee under certain circumstances;
prohibits authorizing special emergency appropriations for unused sick leave
purchases.
CURRENT VERSION OF TEXT
���� Introduced Pending Technical Review by Legislative
Counsel.
��
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;
����
(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.
����
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:
���� (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;
���� (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.�
���� 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:
���� (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 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;
����
(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.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:
����
(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;
����
(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.�
����
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.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:
���� (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;
���� (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.�
���� 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.
���� 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.