Encourages sharing of services; makes appropriations.

S2289 TR

SENATE, No. 2289

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Senator JOHN F. MCKEON

District 27 (Essex and Passaic)

Senator� RAJ MUKHERJI

District 32 (Hudson)

SYNOPSIS

���� Encourages sharing of services; makes appropriations.

CURRENT VERSION OF TEXT

���� As reported by the Senate Community and Urban Affairs
Committee with technical review.

��

An Act

promoting the more effective operation of local government and the sharing of
services among local units, amending and supplementing P.L.2007, c.63, amending
P.L.2007, c.54, making appropriations, and repealing various statutes.

����
Be It Enacted

by the Senate and General Assembly of the State of New
Jersey:

���� 1.��� Section 2 of P.L.2007,
c.63 (C.40A:65-2) is amended to read as follows:

���� 2.��� The Legislature finds
and declares:

���� a.���� Historically, many
specialized statutes have been enacted to permit shared services between local
units for particular purposes.

���� b.���
(1)
�� Other laws,
permitting a variety of shared services, including interlocal services
agreements, joint meetings, and consolidated and regional services
[
,
]
exist but
have not been very effective in promoting the broad use of shared services as a
technique to reduce local expenses funded by property taxpayers.

����
(2)�� The goal of
encouraging and facilitating the provision of local and regional services
through a shared service agreement, joint contract, or consolidation that
results in a cost savings that may be passed along to property taxpayers over
time, is an important goal of the State of New Jersey, and delays caused by
disputes over Civil Service rules and tenure provisions resulting from a shared
service, joint contract, or consolidation must be resolved expeditiously to
ensure that such provisions do not hinder that goal.

���� c.���� It is appropriate for
the Legislature to enact a new shared services statute that can be used to
effectuate agreements between local units for any service or circumstance
intended to reduce property taxes through the reduction of local expenses.

���� d.��� It is contrary to public
policy that the tenure rights of certain local personnel should effectively
prohibit shared services agreements for the services provided by those local
personnel, thereby depriving property taxpayers of property tax relief.

���� e.���� In order to evaluate
the efficiencies related to the sharing of services of certain local personnel
having tenure rights in office, it is appropriate to create a pilot program in
seven counties of the State which embody urban, suburban, and rural characteristics
to study the sharing of the services of these personnel between municipalities
by allowing for the dismissal of such a tenured local official, as necessary,
in order to promote and effectuate the sharing of a service.

(cf: P.L.2018, c.140, s.2)

�� 2.� Section
11 of P.L.2007, c.63 (C.40A:65-11), is amended to read as follows:

�� 11. a. When a local unit
contracts, through a shared service
agreement
, joint
[
meeting
]

contract
,
or regional service agency to have another local unit, joint meeting, or
regional service agency provide a service it is currently providing using
public employees and one or more of the local units have adopted Title 11A,
Civil Service, then the agreement shall include an employment reconciliation
plan in accordance with this section that shall specifically set forth the
intended jurisdiction of the Civil Service Commission.�
Unless otherwise
agreed to by the parties, the local unit that will be providing the service
will be responsible for filing the employment reconciliation plan with the
Civil Service Commission.
� An employment reconciliation plan shall be
subject to the following provisions:

���� (1)��
[
a
determination of those employees, if any, that shall be transferred to the
providing local unit, retained by the recipient local unit, or terminated from
employment for reasons of economy or efficiency, subject to the provisions of
any existing collective bargaining agreements within the local units.

���� (2)�� any employee terminated
for reasons of economy or efficiency by the local unit providing the service
under the shared service agreement shall be given a terminal leave payment of
not less than a period of one month for each five-year period of past service
as an employee with the local unit, or other enhanced benefits that may be
provided or negotiated.� For the purposes of this paragraph, "terminal
leave payment" means a single, lump sum payment, paid at termination,
calculated using the regular base salary at the time of termination.� Unless
otherwise negotiated or provided by the employer, a terminal leave benefit
shall not include extended payment, or payment for retroactive salary
increases, bonuses, overtime, longevity, sick leave, accrued vacation or other
time benefit, or any other benefit.

���� (3)�� the Civil Service
Commission shall place any employee that has permanent status pursuant to Title
11A, Civil Service, of the New Jersey Statutes that is terminated for reasons
of economy or efficiency at any time by either local unit on a special reemployment
list for any civil service employer within the county of the agreement or any
political subdivision therein.

���� (4)
]
� when a proposed shared service
agreement
or joint contract
affects employees in local units subject to
Title 11A, Civil Service, of the New Jersey Statutes,
[
an employment
reconciliation plan shall be filed with the Civil Service Commission prior to
the approval of the shared service agreement.� The commission shall review it
for consistency with this section within 45 days of receipt and it shall be
deemed approved, subject to approval of the shared service agreement by the end
of that time, unless the commission has responded with a denial or conditions
that must be met in order for it to be approved
]

the parties to the proposed
shared service agreement or joint contract, as appropriate, may request
relaxation of the provisions of Title 11A, Civil Service, of the New Jersey
Statutes, along with the corresponding rules and regulations, including but not
limited to selection and appointment, to permit employees of the local units
who are not subject to Title 11A, Civil Service, of the New Jersey Statutes prior
to the execution of a shared service agreement or joint contract to become
civil service employees for the purpose of creating a uniform employee pool
from which the new shared service or joint contract provider may choose to hire
employees; and to permit the expedited designation of a person as a civil
service employee without regard to the normal processes, including testing and
employment lists
.

����
[
(5)
]
����
(2)
�� when an action
is required of the Civil Service Commission by this section, parties to a
[
planned
]

proposed

shared service agreement
or joint contract
may consult with that
commission in advance of the action and the commission shall provide such
technical support as may be necessary to assist in the preparation of an
employment reconciliation plan or any other action required of the commission
by this section.

����
(3)�� a determination of
those employees, if any, that shall be transferred to the providing local unit
or joint meeting, retained by the recipient local unit, or terminated from
employment for reasons of economy or efficiency.� These employment decisions
made by the local units on whose behalf the plan is submitted shall be subject
to the provisions of any existing collective bargaining agreements within the
affected local units.� In the event of any conflict in the operation of
collective bargaining agreements of the affected local units as it pertains to
such employment decisions, the dispute shall be settled by the parties using
mediation or, if that is unsuccessful, by binding arbitration.

����
(4)�� the Civil Service
Commission shall place any employee who has permanent status pursuant to Title
11A, Civil Service, of the New Jersey Statutes that is terminated for reasons
of economy or efficiency at any time by either local unit on a special reemployment
list for any civil service employer within the county of the shared service
agreement or joint contract or any political subdivision therein, except that
an employee who has turned down a reemployment opportunity in a position that
is one with the same or substantially similar job duties as, the same title and
series as, the same or substantially similar hours of work as, and a location
within a 25 mile radius of, the position from which the employee was
terminated, shall be removed from the special reemployment list.

����
(5)�� when an employee of a
jurisdiction that has not adopted Title 11A, Civil Service, of the New Jersey
Statutes, is transferred and given a Civil Service job title pursuant to a
shared service agreement or joint contract, then upon termination of the agreement
or contract that employee shall remain subject to the provisions of Title 11A,
Civil Service, of the New Jersey Statutes.

���� b.���
[
If all the
local units that are parties to the agreement are subject to the provisions of
Title 11A, Civil Service, of the New Jersey Statutes, the Civil Service
Commission shall create an implementation plan for the agreement that will: (1)
transfer employees with current status in current title unless reclassified, or
(2) reclassify employees into job titles that best reflect the work to be
performed.� The Civil Service Commission shall review whether any existing
hiring or promotional lists should be merged, inactivated, or re-announced.�
Non-transferred employees shall be removed or suspended only for good cause and
after the opportunity for a hearing before the Civil Service Commission;
provided, however, that they may be laid-off in accordance with the provisions
of N.J.S.11A:8-1 et seq., and the regulations promulgated thereunder.
]
The
[
final decision
of which employees shall transfer to the new employer is vested solely with the
]
local unit
that will provide the service
[
and
]

shall have
the final decision over which employees shall transfer from a recipient local
unit to the providing local unit,
subject to the provisions of any existing
collective bargaining agreements within the
affected
local units.

���� c.����
(1)
�� If the
local unit that will provide the service pursuant to a shared service agreement
is subject to Title 11A, Civil Service, of the New Jersey Statutes, but the
local unit to receive the service is not subject to that Title, and the
contracting local units desire that some or all employees of the recipient
local unit are to be transferred to the providing local unit, the Civil Service
Commission shall vest
[
only
]
those
employees
[
who
have been employed for one year or more in permanent status pursuant to
N.J.S.11A:9-9
]

in appropriate titles, seniority, and
Civil Service
tenure with the
providing local unit based on the duties of the position,
information
provided by the recipient unit, and the recommendation of the local unit
providing the service
.� The final decision of which employees shall
transfer to the new employer is vested solely with the local unit that will
provide the service
[
and
subject to the provisions of any existing collective bargaining agreements
within the local units
]
,

subject to the provisions of any existing collective bargaining agreements
within the local unit.

����
[
d.� If the local unit that will
provide the service is not subject to the provisions of Title 11A, Civil
Service, of the New Jersey Statutes, but the local unit that will receive the
service is subject to that Title and the parties desire that some or all employees
of the recipient local unit are to be transferred to the providing local unit,
the transferred employees shall be granted tenure in office and shall only be
removed or suspended for good cause and after a hearing; provided, however,
that they may be laid-off in accordance with the provisions of N.J.S.11A:8-1 et
seq., and the regulations promulgated thereunder.
]
�

����
(2)
�� The transferred
employees shall be subject to layoff procedures prior to the transfer to the
new
[
entity
]

employer.�
The current employer of an employee who is being laid off for reasons of
economy due to the implementation of a joint contract or shared service
agreement, in consultation with the new employer, shall provide the employee
with notice of the layoff at least 45 days prior to the layoff date, unless a
collective bargaining agreement, employment contract, or personnel policy sets
forth a different notice requirement.� An employee who has permanent status
pursuant to Title 11A, Civil Service, of the New Jersey Statutes shall have a
right to appeal the good faith of such layoff by the current employer to the
Civil Service Commission, which may consolidate all such appeals.� All appeals
must be filed within 20 days of final notice of such layoff
.

����
(3)
�� Once transferred,

[
they
will
]

an
employee shall
be subject to any
collective bargaining agreements,
employment
contracts
, personnel policies,
and provisions that exist for the new
[
entity
]

employer
.�
The final decision of which employees shall transfer to the new employer is
vested solely with the local unit that will provide the service
[
and subject to
the provisions of any existing collective bargaining agreements within the
local units
]
,

subject to the provisions of any existing collective bargaining agreements
within the affected local units.� In the event of any conflict in the operation
of collective bargaining agreements of the affected local units as it pertains
to such employment decisions, the dispute shall be settled by the parties using
mediation or, if that is unsuccessful, by binding arbitration
.

(cf: P.L.2019, c.433, s.5)

���� 3.��� Section 18 of P.L.2007,
c.63 (C.40A:65-18) is amended to read as follows:

���� 18.� a.���� When a joint
meeting or regional service agency merges bargaining units that have current
contracts negotiated in accordance with the provisions of the "New Jersey
Employer-Employee Relations Act," P.L.1941, c.100 (C.34:13A-1 et
seq.),
[
the
]
terms and
conditions of the existing contracts shall apply to the rights of the members
of the respective bargaining units until a new contract is negotiated, reduced
to writing, and signed by the parties as provided pursuant to law and
regulation promulgated thereunder.

���� b.��� The Public Employment
Relations Commission is specifically authorized to provide technical advice,
pursuant to section 12 of P.L.1968, c.303 (C.34:13A-8.3), and mediation
services to integrate separate labor agreements into single agreements for the
joint contract.� The commission may order binding arbitration, pursuant to
P.L.1995, c.425 (C.34:13A-14a et al.), to integrate any labor agreement.

����
c.���� When local units
enter into a joint meeting that results in the merger of bargaining units, if a
dispute arises over the representation of employees in the merged unit, the
Public Employment Relations Commission is authorized to provide technical
advice pursuant to section 12 of P.L.1968, c.303 (C.34:13A-8.3), and
mediation services to resolve representation disputes.� If disputes over
representation cannot be resolved through advice and mediation, the Public
Employment Relations Commission shall determine the appropriate units for
purposes of collective negotiations and shall conduct secret ballot elections
in such units to permit employees to select their majority representative
pursuant to the commission�s rules and regulations.� Agreements between
majority representatives regarding the representation of employees in a merged
unit shall be binding on the new employer.

(cf: P.L.2019, c.433, s.9)

���� 4.���
Section 22 of P.L.2007, c.63
(C.40A:65-22) is amended to read as follows:

���� 22.�
a.�� The management
committee shall comply with the requirements of sections 10 and 11 of P.L.1983,
c.313 (C.40A:5A-10 and C.40A:5A-11) regarding the submission and approval of an
annual budget to the Director of the Division of Local Government Services in
the Department of Community Affairs, or to the Commissioner of Education, as
appropriate.

����
b.
��� The management
committee, not later than November 1 of each year, shall certify to the
participating local units the total costs and expenses of operation, other than
acquisition and construction costs, of the services, public improvements,
works, facilities, or undertakings for the ensuing year, in accordance with the
terms and provisions of the joint contract, together with an apportionment of
the costs and expenses of operation among the participating local units in
accordance with the method of apportionment provided in the joint contract.� It
shall be the duty of each participating local unit to include its apportioned
share of such costs and expenses of operation in its annual budget, and to pay
over to the management committee its apportioned share as provided in the joint
contract.� Operations under the budget and related matters shall be subject to
and in accordance with rules of the Local Finance Board or the Commissioner of
Education, as appropriate.� The Local Finance Board shall be responsible for
the determination of the appropriate rule-making authority with regard to each
joint contract.� For the first year of operation under the joint contract, a
participating local unit may adopt a supplemental or emergency appropriation
for the purpose of paying its apportioned share of the costs and expenses of
operation, if provision therefor has not been made in the annual budget.

(cf: P.L.2007, c.63, s.22)

���� 5.��� (New section)�� At any
time prior to the execution of a shared service agreement or joint contract, if
one or more of the local units that are the potential parties to the agreement
or contract have adopted Title 11A, Civil Service, the potential parties may
submit to the Civil Service Commission an application to employ a stratified
layoff process.� The application shall assign current employees of the local
units to one of three employee bands: executive, managerial, or
non-managerial.�

���� At the time that the potential
parties to a shared service agreement or joint contract submit an application
to employ a stratified layoff process to the Civil Service Commission, the
parties shall transmit a copy of the application to applicable collective
bargaining representatives.� Within 15 days after receipt of a copy of an
application to employ a stratified layoff process, collective bargaining
representatives may submit additional information to the commission for its
consideration.

���� The Civil Service Commission
shall review assignments and classifications set forth on the application, and
any additional information submitted by collective bargaining representatives,
and approve an application to employ a stratified layoff process if the
application assigns each employee to the proper band.�

���� The Civil Service Commission
shall assign the job titles in the local units to the following employee bands:

���� executive band: job titles in
local government with managerial responsibilities equivalent to a Division
Director or higher in the State Career Service;

���� managerial band: job titles in
local government with managerial responsibilities equivalent to an Assistant
Director or Bureau Chief in the State Career Service and that supervise second
level supervisors;

���� non-managerial: job titles in
local government that are not in the executive or managerial bands.

���� For the purposes of this
section, �stratified layoff process� means a layoff plan and procedure designed
to allow employees within a given employee band to invoke seniority in the
event of layoffs but to prohibit employees assigned to one band from invoking
seniority rights over an employee assigned to another band.� This stratified
layoff process is intended to be used only in the implementation of a shared
service agreement or joint contract.� Within an employee band, employees shall
retain and be entitled to exercise all seniority and layoff rights that they
have under Civil Service law and regulations and under any applicable
collective bargaining agreements.

���� 6.��� Section 5 of P.L.2007,
c.54 (C.52:27D-505) is amended to read as follows:

���� 5.��� a.��� (1)��� The
commission shall study and report on the structure and functions of county and
municipal government, including local taxing districts, their statutory bases,
including the fiscal relationship between local governments, and the
appropriate allocation of service delivery responsibilities from the standpoint
of efficiency.� The study of the transfer of the municipal tax assessment
function to the county through the appointment of a county assessor and deputy
county assessors in a pilot county pursuant to the "Property Assessment
Reform Act," sections 1 through 15 of P.L.2009, c.118 (C.54:1-86 et seq.),
shall be conducted in consultation with the Director of the Division of
Taxation in the Department of the Treasury.

���� (2)�� The commission shall
recommend legislative changes which would encourage the more efficient
operation of local government.� These changes may include the structural and
administrative streamlining of county and municipal government functions,
including but not limited to, the transfer of functions from one level of
government to another, and the use or establishment of regional service
delivery entities.

���� (3)�� The commission shall
also consider optimal service levels, ratios of employees to population served,
cost structures for service delivery, and other best practices.

���� Within two years following the
effective date of P.L.2007, c.54 (C.52:27D-501 et al.), the
commission shall report its findings to the Governor, the President of the
Senate, and the Speaker of the General Assembly; provided, however, that
findings concerning the transfer of the municipal tax assessment function to the
county through the appointment of a county assessor and deputy county assessors
shall be reported on or before February 1 of the sixth year next following the
effective date of P.L.2009, c.118 (C.54:1-86 et al.).

���� b.��� Based on its findings
pursuant to paragraph (3) of subsection a. of this section, the commission
shall develop criteria to serve as the basis
:
for recommending the
consolidation of specific municipalities
[
,
]

and

the merger of specific existing autonomous agencies into the parent municipal
or county government,
[
or
]

and for
recommending
the sharing of services between municipalities or between
municipalities and other public entities,
including but not limited to
counties, fire districts, school districts, and regional school districts
.�

[
Recommendations
for sharing services may result from a study focusing exclusively on the
sharing of services or may result from a study examining potential
consolidation.� Municipalities to be considered for consolidation shall be
within the same county and shall also be situated within the same legislative
district.
]

���� The criteria to govern a study
to examine consolidation or the sharing of services shall include, but need not
be limited to:

���� (1)�� a consideration of
geographic factors, such as a shared boundary, or in the case of the
recommended consolidation of more than two local units, that the consolidated
local unit will have a contiguous boundary;

���� (2)�� an analysis of the
economic costs and benefits of consolidation or the sharing of services, as the
case may be, including potential tax savings and reductions in government costs
through economies of scale;

���� (3)�� measures to ensure that
costs and benefits of consolidation or service sharing are distributed
equitably across the entire community; and

���� (4)�� measures to safeguard
the interests of communities in the municipalities for which consolidation
or
sharing of services
is recommended,
including the impact of a
recommended consolidation or sharing of services on the ability of the public
entity to comply with applicable State and federal laws and regulations and on
the overall quality and efficient delivery of those services
.

���� The commission shall
[
give priority
to
]

first
focus its studies on
local units that
[
volunteer
to be studied
]

neither participate in a shared service agreement nor have undertaken
independent shared services studies or negotiations before it studies any local
units that participate in a shared service agreement
.

����
When the commission's study
is one that could potentially serve as the basis for a recommendation that, if
not acted upon, could result in a reduction of State aid pursuant to subsection
f. of section 8 of P.L.2007, c.54 (C.52:27D-508), then the recommended model,
(1) must be projected to be capable of maintaining the same level of service or
improving the services provided by the participating municipalities; and (2)
must project either a meaningful savings or a slowed rate of growth of costs to
result over a reasonable period of time.

����
The commission shall not
engage in a study involving a municipality that could potentially serve as the
basis for a recommendation that, if not acted upon, could result in a reduction
of State aid pursuant to subsection f. of section 8 of P.L.2007, c.54 (C.52:27D-508)
if that municipality demonstrates that it is already sharing services with
another local unit, unless the commission affirmatively demonstrates that it
has already studied all municipalities in the State that are not engaged in
sharing services with other local units.

���� c.����
(1)���� (a)���� Based
upon criteria developed pursuant to subsection b. of this section and in
consultation with the local units that are being studied, the commission shall
undertake studies to examine the sharing of services between specific
municipalities or between municipalities and other public entities.� The
commission also may undertake studies to examine the consolidation potential
for specific municipalities, but such studies or recommendations shall not be
subject to potential reductions in State aid pursuant to subsection f. of
section 8 of P.L.2007, c.54 (C.52:27D-508).

����
(b)�� In undertaking its
studies the commission shall conduct at least five on-site consultation
sessions in each local unit being studied, with the governing bodies, or their
designees, and affected officials and other public entities under consideration
for consolidation or the sharing of services.� If the consultation sessions are
subject to the "Senator Byron M. Baer Open Public Meetings Act,"
P.L.1975, c.231 (C.10:4-6 et seq.), the commission shall reimburse the local
units for any expenses incurred.

����
(c)�� Each consolidation
proposal or shared services proposal shall:

����
(i)��� detail the current
delivery service being considered for the shared service proposal, including
personnel, equipment, and cost; and

����
(ii)�� detail the cost,
including personnel and equipment for the proposed shared services; and

����
(iii)�� include an estimate
of the total net savings that will result from implementation of the proposed
consolidation or sharing of services; and

����
(iv)�� provide options for
the delivery of the shared services and an explanation of why those options are
not optimum; and

����
(v)�� include a
transcription of the public hearings held pursuant to paragraph (3) of this
subsection; and

����
(vi)�� include any other
pertinent information.

����
(d)�� The commission shall
provide written notice of a recommendation, including any economic analysis,
made pursuant to this subsection to the governing body of each local unit that
is the subject of the recommendation, together with documentation supporting the
commission's recommendation.

����
(e)�� A local unit may
request the commission to undertake a study to examine the local unit's
potential for consolidation or the sharing of services.� A county may request
the commission to undertake a study to examine the county's potential for
providing specific shared services to constituent municipalities, however, no
county shall be included in a study that could potentially serve as the basis
for a recommendation that, if not acted upon, could result in a reduction of
State aid to a municipality pursuant to subsection f. of section 8 of P.L.2007,
c.54 (C.52:27D-508) unless the request to undertake the study is agreed to by
the governing bodies of the affected municipalities through the adoption of
resolutions stating support.�

����
(f)�� The results of any
economic analysis performed by or on behalf of the commission shall be
submitted to the State Treasurer for a review of the accuracy of the analysis
prior to releasing a recommendation pursuant to this subparagraph.� At the same
time, the results of the economic analysis shall be submitted to the affected
municipalities and other public entities. No recommendation for a shared
service that is submitted to the State Treasurer by the commission shall be
made unless the commission finds that the current level of service will be
maintained or improved for each affected municipality and that each affected
municipality will realize a cost savings.� The State Treasurer shall, within 90
days of receipt, weigh any contrary information or evidence submitted by
affected municipalities and other public entities and then either certify the
recommendation, or prepare a memo of objections for the commission.� The local
unit shall, within 30 days from the date that the commission submits the
economic analysis, either certify the recommendation or provide, either
electronically, by e-mail, by letter, or by personal delivery, a written
objection along with supporting documentation to the State Treasurer.� The
commission shall work with the State Treasurer in satisfying the objections
prior to resubmitting a recommendation for review and certification.� In
accordance with the results of its studies, the commission may recommend the
consolidation of specific municipalities, or the sharing of services between
specific municipalities or between municipalities and other public entities.

����
(g)�� (i)��� The commission
shall provide written notice to the governing body of each municipality that is
the subject of a recommendation, together with supporting documentation and the
State Treasurer�s certification of, or objections to, the economic analysis.� A
notice recommending the sharing of services shall state that the governing
bodies have 14 months from the date of the notice to approve a certified
recommendation for a shared service, or that they need not take any action with
respect to a recommendation for a shared service that was not certified by the
State Treasurer.

����
(ii)�� A municipality may
contest the total net savings estimate contained in the commission's proposal by
appeal to the Commissioner of Community Affairs within 30 days of receipt of
the recommendation.� The commissioner shall have 15 business days to review the
analysis and the challenge in order to determine whether the analysis should be
adjusted.� The commissioner may extend the review time for the appeal if the
commissioner deems a hearing is necessary.
�

����
(2)
�� When a municipal
consolidation is recommended by the commission, the commission shall substitute
for a joint municipal consolidation study commission that would be formed
pursuant to section 7 of the "Municipal Consolidation Act," P.L.1977, c.435 (C.40:43-66.41)
or any other statute governing municipal consolidation, and no voter approval
shall be required to create the study commission.�
The commission shall be
present at one or more of the public hearings required pursuant to subsection
d. of section 25 of P.L.2007, c.63 (C.40A:65-25).

����
(3)�� When a sharing of
services is recommended by the commission, the commission shall hold at least
two public hearings in each municipality, in places that are easily accessible
to the residents.� A public hearing required by this paragraph shall be advertised
in the official newspaper of the local unit at least seven days prior to the
public hearing, posted in each local unit's official buildings and on each
local unit's official Internet website, if one exists, and shall also be posted
by the commission on its Internet website.� The commission shall reimburse the
local units for any expenses incurred in holding the public hearings required
under this paragraph.

���� d.��� When a consolidation or
shared service is recommended by the commission, the commission shall recommend
State funding for any extraordinary expenses necessitated by the consolidation
plan or shared service agreement.� The commission shall recommend that this
funding be provided either by funds made available to the commission for that
purpose or by the Legislature or State Treasurer as part of the annual State
budget process.

(cf: P.L.2009, c.118, s.16)

���� 7.��� Section 6 of P.L.2007,
c.54 (C.52:27D-506) is amended to read as follows:

���� 6.��� a.��
(1)
���� The
"Local Unit Alignment, Reorganization, and Consolidation Commission"
shall work in conjunction with the Local Finance Board and the Division of
Local Government Services in the Department of Community Affairs.
[
To the extent
possible, the
]

The commission may request specific resources from the department.� The
department shall provide the commission with all resources requested by the
commission that the department

determines are reasonable and necessary
for the commission to operate and satisfy its statutory duties including, but
not limited to, the provision of offices, equipment, materials, and
administrative, technical, and legal personnel.� The department shall have the
burden of showing that a request for resources is unreasonable.

����
(2)�� The
commission
may
also request, and
shall be entitled to
,
the assistance and services
of the employees of any State department, board, bureau, commission, or agency,
as it may require and as may be available to it for its purposes.

���� b.��� The commission
may
request, and
shall be entitled to
,
the cooperation of the officials
and employees of every county and municipality
,
as it may require.

���� c.���� The commission may
incur traveling and other miscellaneous expenses necessary to perform its
duties, within the limits of funds available to it for its purposes.

����
d.��� The commission may
contract for the services of professional, technical, and operational personnel
and consultants as it may determine are necessary to perform its duties, within
the �limits of funds available to it for its purposes.

(cf: P.L.2007, c.54, s.6)

���� 8.��� Section 7 of P.L.2007,
c.54 (C.52:27D-507) is amended to read as follows:

���� 7.��� a.�� The "Local
Unit Alignment, Reorganization, and Consolidation Commission" shall
annually, by January 31st, submit to the Governor and the Legislature a report
summarizing the commission's activities over the course of the previous
calendar year.

���� b.��� In the event that the
commission proposes consolidation of local units
[
or a shared services agreement
]
, the
commission shall submit a
copy of the
consolidation
[
or shared
services
]

proposal to the Governor and the Legislature
[
no
later than May 1st of the year in which the proposed consolidation is to be put
before the voters pursuant to subsection a. of section 8 of P.L.2007, c.54
(C.52:27D-508).� A municipal consolidation proposal shall include, but not be
limited to, a description of the form of government, the election of officers,
the apportionment of debts, and other issues between pairs or groups of
municipalities which the commission proposes should consolidate or share
services
]

together with its annual report
.

���� c.����
[
A
consolidation or shared services proposal shall take effect at the end of a
period of 30 calendar days after the date on which the proposal is transmitted
to the Senate and General Assembly, on a day on which both thereof shall be
meeting in the course of a regular or special session, unless, between the date
of transmittal and the end of the 30-day period, the Legislature passes a
concurrent resolution stating in substance that the Legislature does not favor
the consolidation proposal.
]
�

(
Deleted by amendment, P.L.��� , c.��� .) (pending before the
Legislature as this bill)

(cf: P.L.2007, c.54, s.7)

���� 9.��� Section 8 of P.L.2007,
c.54 (C.52:27D-508) is amended to read as follows:

���� 8.��� a.��
[
Upon
]
���
If a
local unit receives a recommendation for the sharing of services from the
commission together with
the
[
taking
effect of a consolidation or shared services proposal
]

State Treasurer's certification
of the recommendation,
pursuant to
[
subsection
b. of
]

section
[
7
]

5
of
P.L.2007, c.54
[
(C.52:27D-507)
]

(C.52:27D-505)
,

[
each
recommendation included therein shall be put before the affected voters at the
next general election and shall become effective only upon its
]

the local
unit shall approve the recommendation within 14� months of the date of the
notice or be subject to a reduction of State aid in accordance with subsection
f. of this section.� A local unit may approve a recommendation for the sharing
of services by adoption of a resolution or ordinance or by
adoption by a
majority of the voters of
[
each
affected municipality
]

the local unit
.

����
Nothing in this subsection
shall prohibit the governing body of a local unit from approving a
recommendation for the sharing of services by adoption of a resolution or
ordinance and placing that proposal before the affected voters at the next
general election.

���� b.���
[
In order to
effectuate the provisions of subsection a. of this section, the Secretary of
State
]

If the governing body of a local unit chooses to place the question of
approval of a recommendation for the sharing of services before the voters, the
clerk or other appropriate administrative officer of the local unit
shall
forward to the clerk of
[
each
]

the

county in which the
[
affected
]
local
[
units are
]

unit is

located a public question to be included on the ballots at the next general
election for the election districts encompassing those affected local units.

����
[
(1)� The question with respect to
consolidation shall read as follows:

���� "Shall (insert the names
of the participating local units) be consolidated into a single local unit to
be known as (insert the name proposed for the consolidated local unit)?"

���� (2)
]
� The question with respect to
a

shared services
proposal
shall read as follows:

���� "Shall (insert the
services to be shared) be jointly undertaken between (insert the� names of the
entities between which sharing is to occur)?�
The State's Local Unit
Alignment, Reorganization, and Consolidation Commission proposes this �sharing
of services� and estimates that it can save $ (insert estimate of savings
included in the proposal pursuant to subsection c. of section 5 of P.L.2007, c.54 (C.52:27D-505)).�
This proposed sharing of service will (insert "reduce,"
"increase," "not change," or "slow the rate of growth
of") the level of service currently provided by (insert the name of the
entity) according to the State's recommendation.� This estimated savings will
result, on average, of a savings of $ (insert savings per property taxpayer
based on averaged assessed property) per property tax bill of the averaged
assessed property of $ (insert the averaged assessed property).� The (insert
name of entity) (insert "supports" or "opposes") this
proposed shared service for the following reason(s) (insert the one or more
reasons).� If a majority of the voters vote "No", the State shall
reduce �State Aid� to your municipality by that amount each year."� The
reduction of State aid may result in an increase in the property tax levy.

���� c.����
[
The
consolidation of pairs or groups of local units recommended for consolidation
under subsection a. of this section shall be accomplished within 14
]

Local
units that are the subject of a recommendation for the sharing of services
shall implement the recommendation within 28
months following the
[
voter approval
]

date

of the
[
consolidation
recommendation
]

notice of the commission recommendation
.

���� d.���
(1)�� No question
with respect to a consolidation recommended or proposed by the commission shall
be submitted to the voters of a local unit.

����
(2)
�� The adoption of a
form of government, the election of officers, the apportionment of debts, and
other issues between pairs or groups of municipalities
[
required
]

that
choose
to consolidate pursuant to
[
an
approved
]

a
consolidation
[
recommendation
]

proposal

[
under
subsection c. of this section
]

shall be determined by the commission, as far as practicable, in accordance
with the procedures set forth in the "Municipal Consolidation Act,"
P.L.1977, c.435 (C.40:43-66.35 et al.) or any other statute governing municipal
consolidation.

���� e.���� For a period of 10
years
[
from
the
]

following
implementation of an approved
consolidation
[
of a pair or group of
municipalities pursuant to a consolidation recommendation approved under
subsection c. of this section
]

proposal
, and notwithstanding any law to the contrary, the residents of
[
those
municipalities
]

the consolidated municipality
, or portions thereof, shall not have the
right to secede to form a new municipality, or to consolidate with, or annex
themselves to, any other municipality.

����
f.���� (1)�� If a
municipality does not approve a recommendation for the sharing of services
within 14 months of the date of notice of the commission's recommendation, or
if that municipality does not make a good faith attempt to enter into and
implement the recommended joint contract or shared service agreement within 28
months following the date of notice of the commission's recommendation, then
the State shall annually reduce the total amount of State aid allocated to that
municipality under the Consolidated Municipal Property Tax Relief Aid (CMPTRA)
program, by the total net savings estimated in the proposal pursuant to
subsection c. of section 5 of P.L.2007, c.54 (C.52:27D-505).

����
(2)�� No municipality shall
be subject to a reduction in its CMPTRA allocation for its refusal to comply
with a consolidation recommendation or proposal by the commission.

����
(3)�� No municipality shall
be subject to a reduction in its CMPTRA allocation if it approved a
recommendation for the sharing of services and the failure to implement the
recommendation was due to the action or inaction of the governing body or
voters of another local unit.

(cf: P.L.2007, c.54, s.8)

���� 10.� (New section)��� There is
appropriated from the General Fund to the Department of Community Affairs such
sums as may be necessary for the operating expenses of the Local Unit
Alignment, Reorganization, and Consolidation Commission, subject to the
approval of the Director of the Division of Budget and Accounting in the
Department of the Treasury.

���� 11.� (New section)�� There is
appropriated from the Property Tax Relief Fund to the Department of Community
Affairs such sums for non-recurring costs that the Local Unit Alignment,
Reorganization, and Consolidation Commission determines are necessary to fund
extraordinary expenses of local units to implement consolidation plans and
shared service agreements, subject to the approval of the Director of the
Division of Budget and Accounting in the Department of the Treasury.

���� 12.� (New section)��� The
following sections are repealed:

���� Section 8 of P.L.2007, c.63
(C.40A:65-8);

���� Section 17 of P.L.2007, c.63
(C.40A:65-17);

���� Section 19 of P.L.2007, c.63
(C.40A:65-19);

���� Sections 16 through 18 of
P.L.1975, c.329 (C.26:3A2-16 through 26:3A2-18).

���� 13.� This act shall take
effect immediately.