A4081

An Act concerning local budgets and fiscal affairs and supplementing chapter 9 of Title 40A of the New Jersey Statutes.

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

1. a. Each member of a local governing body shall complete a training program regarding the provisions of the “Local Bond Law,” N.J.S.40A:2-1 et seq., the “Local Budget Law,” N.J.S.40A:4-1 et seq., the “Local Fiscal Affairs Law,” N.J.S.40A:5-1 et seq., and any additional budget and fiscal affairs laws and regulations deemed appropriate by the Commissioner of Community Affairs. A newly elected or appointed member of a local governing body shall complete the training program required under this section during the first six months of the person’s first term, or if first elected or appointed prior to the promulgation of rules and regulations under section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill), within six months following the promulgation of those rules and regulations. Once a member of a local governing body completes the training program required by this section, that person shall not be required to repeat the training when subsequently elected or appointed to any other local governing body except for updates as may be required under subsection b. of this section.

b. The Division of Local Government Services in the Department of Community Affairs shall develop the training program required pursuant to subsection a. of this section. In developing the program, the division shall examine similar programs developed by comparable public entities, and shall survey any available training resources and methods. The training program to be prepared and offered pursuant to this section shall consist of no more than five hours of scheduled instruction and shall be structured so that a member may satisfy this requirement within one calendar day. The training program that is developed shall not be limited to live training venues, but may instead be delivered through online or video technology when practicable. The commissioner shall work in conjunction with the New Jersey Planning Officials in establishing standards for curriculum and administration of the course of study. The training may be provided by employees of the department or by any person, agency, organization or entity contracted by the department for that purpose, and shall be offered on a semi-yearly or more frequent basis at locations easily accessible to those receiving the training. The training program may include a requirement that members of a local governing body attend update sessions when there is a significant change to budget and fiscal affairs laws or regulations. The training program required by this subsection shall be the financial responsibility of the Department of Community Affairs.

c. Upon completion of the training required pursuant to this section, each member of a local governing body shall sign a statement asserting that the person has received the training and understands the provisions of the “Local Bond Law,” N.J.S.40A:2-1 et seq., the “Local Budget Law,” N.J.S.40A:4-1 et seq., the “Local Fiscal Affairs Law,” N.J.S.40A:5-1 et seq., and any additional budget and fiscal affairs matters deemed appropriate by the Commissioner of Community Affairs. The commissioner shall issue a certificate of completion to each member of a local governing body signing the statement required by this subsection.

d. For the purposes of this section:

“Administrator” means a municipal administrator appointed pursuant to N.J.S.40A:9-136 and N.J.S.40A:9-137; a business administrator, a municipal manager or a municipal administrator appointed pursuant to the “Optional Municipal Charter Law,” P.L.1950, c.210 (C.40:69A-1 et seq.); a municipal manager appointed pursuant to “the municipal manager form of government law,” R.S.40:79-1 et seq.; a county administrator appointed pursuant to the provisions of P.L.1972, c.154 (C.40:41A-1 et seq.) or N.J.S.40A:9-42; or the person holding responsibility for the overall operations of an authority that falls under the “Local Authorities Fiscal Control Law,” P.L.1983, c.313 (C.40A:5A-1 et seq.).

“Authority” means a body, public and corporate, created by one or more municipalities or counties that falls under the “Local Authorities Fiscal Control Law,” P.L.1983, c.313 (C.40A:5A-1 et seq.).

“Chief executive officer” means the mayor of a municipality, the elected county executive of a county, the director of the board of chosen freeholders in a county not having an elected county executive, an administrator, or the chairman or other presiding officer of any other governing body.

“Local governing body” means the board, commission, council, or other body having the control of the finances of a local unit; and in those local units in which a chief executive officer is authorized by law to participate in such control through powers of recommendation, approval, or veto, the term includes such chief executive officer.

“Local unit” means a county, municipality, or authority.

2. Within 120 days of the effective date of this act, the Commissioner of Community Affairs shall, in accordance with the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), adopt and promulgate the rules and regulations necessary for the implementation of this act. The rules and regulations shall include a time frame, not to exceed 18 months from the promulgation of the rules and regulations, for the training of each member of a local governing body serving at the time of promulgation, and shall implement in an escalating schedule, from $1,000 to $5,000, personal fines that shall not be paid or reimbursed by the local governing body agency for the failure of a member of a local governing body to complete the training within the specified time frame. Fines imposed pursuant to this subsection shall be collected in accordance with the “Penalty Enforcement Law of 1999,” P.L.1999, c.274 (C.2A:58-10 et seq.).

3. This act shall take effect immediately, except that section 1 shall remain inoperable until the promulgation of rules and regulations pursuant to section 2.

STATEMENT

This bill requires each member of a local governing body to complete a training program regarding the requirements of the “Local Bond Law,” N.J.S.40A:2-1 et seq., the “Local Budget Law,” N.J.S. 40A:4-1 et seq., the “Local Fiscal Affairs Law,” N.J.S. 40A:5-1 et seq., and any additional budget and fiscal affairs laws and regulations deemed appropriate by the Commissioner of Community Affairs.

The training would be developed by the Division of Local Government Services in the Department of Community Affairs, and would be administered on a semi-annual or more frequent basis by employees of that department or by an individual, agency, organization, or entity contracted by the department to do so. In developing the training, the bill would require the division to examine similar programs in this and other states and to survey the available training resources and methods. The Commissioner of Community Affairs would develop the program's rules and regulations, which would include a time frame, not to exceed 18 months from the promulgation of the rules, for completion of the training for sitting officers and an escalating fine schedule, from $1,000 to $5,000, for the failure of a member of a local governing body to receive the training within the specified time frame.