A3421

An Act requiring municipalities with fewer than 500 persons to consolidate with larger municipalities in the same county.

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

1. For the purposes of this act:

"Absorbing municipality" means a municipality into which a contiguous sparsely populated municipality situated in the same county consents or is required by the director to consolidate with a sparsely populated municipality under the provisions of this act.

"Alcoholic beverage" means a fluid, or a solid capable of being converted into a fluid, suitable or intended for human consumption and having an alcoholic content of more than one-half of 1% by volume. The term includes alcohol, beer, lager beer, ale, porter, naturally fermented wine, treated wine, blended wine, fortified wine, sparkling wine, distilled liquors, blended distilled liquors and any brewed, fermented or distilled liquors fit or intended for use for beverage purposes, or any mixture of them

"Director" means the Director of the Division of Local Government Services in the Department of Community Affairs.

"Consolidated municipality" means the single new municipality that results from an affirmative consolidation effort pursuant to the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill).

"Sparsely populated municipality" means a municipality with a population of fewer than 500 persons.

2. The director shall notify every sparsely populated municipality of the provisions of this act, as soon as practicable after this act is enacted.

3. a. The governing body of a sparsely populated municipality may adopt, by two-thirds vote of its full membership, an ordinance proposing the municipality's consolidation into a contiguous municipality.

b. The clerk of a municipality that adopts an ordinance pursuant to subsection a. of this section shall forward a copy of the ordinance to the governing body of the absorbing municipality and to the director within seven days of the effective date of the ordinance.

c. If the governing body of the absorbing municipality consents to the consolidation it shall, within 60 days after receipt of the ordinance adopted by the governing body of the sparsely populated municipality pursuant to subsection a. of this section, adopt an ordinance consenting to consolidation with the sparsely populated municipality by a two-thirds vote of the full membership of the governing body and shall forward a copy of the ordinance to the director and the clerk of the sparsely populated municipality.

d. If within 12 months of receipt of the notice from the director provided pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill), any sparsely populated municipality with a population of fewer than 500 persons according to the 2000 federal decennial census has not sought or has not obtained consent from the governing body of any absorbing municipality, then the director shall identify a suitable absorbing municipality that shall be required to consolidate with the sparsely populated municipality. There director shall make a rebuttable presumption that any municipality that according to the 2000 federal decennial census has a population of fewer than 500 people is a sparsely populated municipality, provided however; that any municipality may submit to the director sufficient proof that its population has increased in the period since 2000 to over 500 persons.

4. a. Within 20 days of receipt of an ordinance consenting to consolidation pursuant to subsection c. of section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill), or within 30 days of the director selecting an absorbing municipality that will be required to consolidate with a sparsely populated municipality pursuant to subsection d. of section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill), the director shall meet with the mayors and such other municipal officials as the director shall require from the sparsely populated municipality and the absorbing municipality.

b. In consultation with the mayors, the director shall establish a timetable for the consolidation to become effective and shall make such budget, financial, contractual, personnel and educational district adjustments as shall be required to complete the consolidation. The Commissioner of Education also shall be consulted with regard to the adjustment of educational district matters. The director shall also establish a timetable for the preparation of a new official map of the consolidated municipality showing the new boundaries.

c. The director, in consultation with the mayors of the consolidating municipalities, shall have all of the powers of a consolidation commission under the "Municipal Consolidation Act," P.L.1977, c.435 (C.40:43-66.35 et seq.).

5. a. The consolidated municipality shall continue the form of government and name of the absorbing municipality, unless otherwise agreed.

b. The clerk of the consolidated municipality shall notify the Secretary of State and the county clerk of the consolidation.

c. The offices and positions of the elected and appointed municipal officials of the sparsely populated municipality shall terminate upon the completion of the consolidation. However, if the absorbing municipality is subject to Title 11A, Civil Service, of the New Jersey Statutes, and desires, contracts or is required by the director to take over some or all employees from the sparsely populated municipality, the Department of Personnel shall vest such employees in appropriate titles, seniority and tenure with the providing municipality based on the education and experience of the individuals.

d. The elected and appointed officers of the absorbing municipality shall continue their terms of office or appointment upon creation of the consolidated municipality as if no consolidation had occurred and the ordinances of the absorbing municipality shall be applicable to the entire consolidated municipality except as provided in section 6 of P.L. , c. (C. ) (pending before the Legislature as this bill).

6. A consolidated municipality shall not grant a license that permits the sale of alcoholic beverages in the geographic area that previously encompassed the sparsely populated municipality, if prior to consolidation the sparsely populated municipality prohibited the sale of alcoholic beverages. A consolidated municipality shall also not prohibit the sale of alcoholic beverages in the geographic area that previously encompassed the sparsely populated municipality, if prior to consolidation, the sparsely populated municipality permitted the sale of alcoholic beverages.

7. In the event children in a consolidated municipality reside on federal property within the former boundaries of a sparsely populated municipality, the State shall assume fiscal responsibility for the tuition and transportation costs of such children. The Department of Education shall pay the tuition to the school district in which the children are enrolled and pay the transportation costs to the district in which the children reside.

8. a. There is established in the Department of Community Affairs the “Municipality Consolidation Account,” hereinafter referred to as the “account.” The account shall receive monies to be credited to it from the General Fund or any other sources. All monies in the account shall be expended by the director for reimbursing absorbing and sparsely populated municipalities for costs associated with carrying out the director’s requirements issued pursuant to the provisions of subsection d. of section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill), including reimbursement for any necessary studies or consulting fees that receive the director’s prior approval.

b. The director, by rules and regulations established pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), shall establish a procedure by which municipalities required to consolidate by the director pursuant to subsection d. of section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill), can apply for reimbursement of costs incidental to the process of consolidation. The procedure shall permit any municipality that applies for reimbursement to anticipate receipt of the reimbursement amount in its current budget.

c. The Commissioner of Community Affairs shall include with the annual budget request for the department a request for funds sufficient to carry out the purposes and intent of P.L. , c. (C. ) (pending before the Legislature as this bill).

d. Within 24 months of enactment of P.L. , c. (C. ) (pending before the Legislature as this bill), any monies remaining in the account shall lapse into the General Fund for general State purposes.

9. This act shall take effect immediately.

STATEMENT

This bill would require sparsely populated municipalities, being those that have a population of fewer than 500 persons according to the 2000 federal decennial census, to merge with larger municipalities in the same county. The 2000 federal decennial census indicates that the following municipalities had fewer than 500 persons:

1. Teterboro borough in Bergen County – 18 persons.

2. Pine Valley borough in Camden County – 20 persons.

3. Tavistock borough in Camden County – 24 persons.

4. Walpack Township in Sussex County.- 41 persons.

5. Cape May Point borough in Cape May County – 241 persons

6. Village of Loch Arbour in Monmouth County – 280 persons.

7. Borough of Harvey Cedars in Ocean County – 359 persons.

8. Rockleigh Borough in Bergen County – 391 persons.

9. Millstone Borough in Somerset County- 410 persons.

10. Borough of Mantoloking in Ocean County - 423

11. Borough of West Wildwood in Cape May County – 448 persons.

12. Corbin City in Atlantic County - 468 persons.

Each sparsely populated municipality, would be required to propose its intent to consolidate with a larger absorbing municipality and obtain its consent within 12 months. If, within 12 months, a sparsely populated municipality has not sought or has not obtained consent from the governing body of a larger municipality, the Director of the Division of Local Government Services is required to identify a suitable absorbing municipality to be consolidated with the sparsely populated municipality.

The offices and positions of the elected and appointed municipal officials of the sparsely populated municipality would terminate upon the completion of the consolidation while the elected and appointed officers of the absorbing municipality would continue their terms of office or appointment upon creation of the consolidated municipality. Ordinances of the absorbing municipality would be applicable to the entire consolidated municipality except that the geographic area formerly encompassing the sparsely populated municipality the same policies would remain effective, regarding the regulation and sale of alcoholic beverages.