Assemblyman JOSEPH J. ROBERTS, JR.
District 5 (Camden and Gloucester)
Assemblyman FREDERICK SCALERA
District 36 (Bergen, Essex and Passaic)
Assemblyman HERB CONAWAY, JR.
District 7 (Burlington and Camden)
Assemblywoman Wagner, Assemblyman Conners and Assemblywoman Greenstein
Permits State aid to fund start-up costs for local shared services projects.
CURRENT VERSION OF TEXT
An Act concerning State incentives to promote local shared services and amending P.L.2007, c.63.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 30 of P.L.2007, c.63 (C.40A:65-30) is amended to read as follows:
30. a. A local unit that plans to study the feasibility of a shared service agreement, joint meeting contract, or municipal consolidation may apply to the director for grants or loans to fund the study, including consultant costs, and to fund one-time start-up costs of a shared service agreement or joint meeting contract or municipal consolidation. The director, in consultation with the Commissioner of Education, shall establish a program to be known as the "Sharing Available Resources Efficiently" program, or "SHARE," to accomplish this purpose, and, in consultation with the commissioner, shall promulgate rules and regulations necessary to effectuate the purposes of the program.
b. The director, in consultation with the commissioner, shall provide guidelines and procedures for the submission of SHARE grant and loan applications.
c. Applications for shared service study funds:
(1) May require such local match of funds, as is determined by the director for the studies if the director finds that the local unit is financially capable of providing such matching funds.
(2) Shall not require a local match of funds for consolidation studies under sections 1 to 37 of P.L.2007, c.63 (C.40A:65-1 et al.) or the "Municipal Consolidation Act," P.L.1977, c.435 (C.40:43-66.35 et al.).
(3) Grants for implementation of shared services may include financial assistance for terminal leave benefits, but not for early retirement incentives related to pension contributions.
d. Applications for one-time start-up costs shall provide that:
(1) Local units may apply for financial assistance for the one-time start-up costs necessary to implement shared services. Costs that may be financed through the issuance of debt or capital lease agreements shall not be excluded from this program, but financial assistance for those costs shall be limited to grants or loans of no more than $200,000.
(2) The director may set limits on aid awards and negotiate the various provisions, costs, payment provisions, and amounts of grants or loans to ensure that the shared service is cost effective and in the public interest. Financial assistance for costs associated with terminal leave benefits shall be limited to the lesser of the officer or employee's regular base rate of compensation that is paid for the terminal leave benefit pursuant to an applicable employment contract, local practice, local ordinance, or State law.
e. The director may provide technical support programs to assist local units in applying for grants or aid for studying shared services.
(cf: P.L.2007, c.63, s.30)
2. This act shall take effect immediately.
This bill would expand the ability of the State to assist local units in participating in shared services projects by permitting the use of SHARE funding for start-up costs that are financed through the issuance of debt or capital lease agreements. Currently, these costs are excluded from the program. The bill limits the amount of grants or loans for these start-up costs to no more than $200,000.