SENATE, No. 2851

STATE OF NEW JERSEY

217th LEGISLATURE

INTRODUCED DECEMBER 12, 2016

 


 

Sponsored by:

Senator  NICHOLAS P. SCUTARI

District 22 (Middlesex, Somerset and Union)

Senator  KEVIN J. O'TOOLE

District 40 (Bergen, Essex, Morris and Passaic)

Senator  PAUL A. SARLO

District 36 (Bergen and Passaic)

 

 

 

 

SYNOPSIS

     Provides for increase in salary of certain public employees; permits receipt of compensation for published works by certain Executive Branch public officers.

 

CURRENT VERSION OF TEXT

     As introduced.

 


An Act concerning the compensation of certain public employees, and amending various parts of the statutory law, amending the title and body of P.L.1948 c.16, and supplementing chapter 11 of Title 52 of the Revised Statutes.

 

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

 

1.      N.J.S.2A:158-10 is amended to read as follows:

     2A:158-10. County prosecutors shall receive annual salaries to be fixed by the governing body of the county at [$153,000 beginning on January 1, 2008 and ] $165,000 beginning on January 1, 2009, $170,000 beginning on January 1, 2017, and $175,000 beginning on January 1, 2018 and thereafter.

     There shall be appropriated annually to the Department of Community Affairs for payment to each county for additional salary costs resulting from the increase in the salary of county prosecutors an amount equal to the amount by which the annual salary paid to the county prosecutor under this section exceeds $100,000.00.

(cf: P.L.2007, c.350, s.2)

 

     2.    N.J.S.2B:2-4 is amended to read as follows:

     2B:2-4.  Judicial Salaries.  [Annual salaries of justices and judges beginning on January 1, 2008 shall be:

            Chief Justice of the Supreme Court                            $183,182

            Associate Justice of the Supreme Court                     $176,488

            Judge of the Superior Court,

              Appellate Division                                                    $167,023

            Judge of the Superior Court,

              Assignment Judge                                                     $163,404

            Judge of the Superior Court;

              Judge of the Tax Court                                             $157,000]

     Annual salaries of justices and judges beginning on January 1, 2009 and thereafter shall be:

            Chief Justice of the Supreme Court                            $192,795

            Associate Justice of the Supreme Court                    $185,482

            Judge of the Superior Court,

            Appellate Division                                                      $175,534

            Judge of the Superior Court,

            Assignment Judge                                                       $171,731

            Judge of the Superior Court;

            Judge of the Tax Court                                               $165,000

     The annual salaries of justices and judges shall be increased by three percent on January 1, 2017.  The annual salaries of justices and judges for the year beginning January 1, 2017 shall be increased by three percent beginning on January 1, 2018.

     Beginning on January 1, 2019 and thereafter, the amount of the annual salary determined for the prior calendar year shall be adjusted annually by the State Treasurer in direct proportion to the percent change in the Consumer Price Index over a 12-month period beginning November 1 and ending October 31.  For the purpose of this subsection, "Consumer Price Index" means the Consumer Price Index for All Urban Consumers, New York-Northern New Jersey-Long Island Metropolitan Area, All Items (1982-84=100), as published by the  Bureau of Labor Statistics in the United States Department of Labor.  The State Treasurer shall determine the amount of the adjustment by December 1 of each year and the adjustment shall become effective for payments to be made during the calendar year following the determination, beginning with payments made on or after January 1 of each calendar year.  An adjustment in the annual payment shall be made only if the percent change in the Consumer Price Index for the period specified is greater than zero. If the reference base of the index is changed, the index used to determine the Consumer Price Index shall be the index converted to the new base by standard statistical methods.  The first adjustment determination shall be made by December 1, 2018 and applicable to payments commencing on January 1, 2019.

(cf: P.L.2007, c.350, s.1)

 

     3.  Section 1 of P.L.1948, c.16 (C.52:10A-1) is amended to read as follows:

     1.    a.  Members of the Senate and General Assembly shall receive annually, during the term for which they shall have been elected and while they shall hold their office, compensation in the sum of [$35,000.00 beginning with the 1990 legislative year and compensation in the sum of] $49,000 beginning with the 2002 legislative year and thereafter.  The President of the Senate and the Speaker of the General Assembly, each by virtue of his office, shall receive an additional allowance, equal to 1/3 of his compensation as a member.  The compensation herein provided shall be paid to each member upon his qualifying into office as such member, and the additional allowance herein provided to the President of the Senate and the Speaker of the General Assembly shall be paid upon his qualifying into office as such officer.

     b.  Each member of the Senate and General Assembly shall be provided with an allowance of not less than $140,000 during each annual legislative session for member staff services commencing with the 2017 annual session.  There shall be appropriated annually to the Legislature, from the general revenues of the State, the amount necessary to provide such an allowance to each member.

(cf: P.L.1999, c.380, s.12)

 

     4. Section 13 of P.L.1971, c.182 (C.52:13D-24) is amended to read as follows:

     13.  a.  No State officer or employee, special State officer or employee, or member of the Legislature shall solicit, receive or agree to receive, whether directly or indirectly, any compensation, reward, employment, gift, honorarium, out-of-State travel or subsistence expense or other thing of value from any source other than the State of New Jersey, for any service, advice, assistance, appearance, speech or other matter related to the officer, employee, or member's official duties, except as authorized in this section.

     b.    A State officer or employee, special State officer or employee, or member of the Legislature may, in connection with any service, advice, assistance, appearance, speech or other matter related to the officer, employee, or member's official duties, solicit, receive or agree to receive, whether directly or indirectly, from sources other than the State, the following:

     (1)   reasonable fees for published books on matters within the officer, employee, or member's official duties;

     (2)   reimbursement or payment of actual and reasonable expenditures for travel or subsistence and allowable entertainment expenses associated with attending an event in New Jersey if expenditures for travel or subsistence and entertainment expenses are not paid for by the State of New Jersey;

     (3)   reimbursement or payment of actual and reasonable expenditures for travel or subsistence outside New Jersey, not to exceed $500.00 per trip, if expenditures for travel or subsistence and entertainment expenses are not paid for by the State of New Jersey. The $500 per trip limitation shall not apply if the reimbursement or payment is made by (a) a nonprofit organization of which the officer, employee, or member is, at the time of reimbursement or payment, an active member as a result of the payment of a fee or charge for membership to the organization by the State or the Legislature in the case of a member of the Legislature; (b) a nonprofit organization that does not contract with the State to provide goods, materials, equipment, or services; or (c) any agency of the federal government, any agency of another state or of two or more states, or any political subdivision of another state.

     Members of the Legislature shall obtain the approval of the presiding officer of the member's House before accepting any reimbursement or payment of expenditures for travel or subsistence outside New Jersey.

     As used in this subsection, "reasonable expenditures for travel or subsistence" means commercial travel rates directly to and from an event and food and lodging expenses which are moderate and neither elaborate nor excessive; and "allowable entertainment expenses" means the costs for a guest speaker, incidental music and other ancillary entertainment at any meal at an event, provided they are moderate and not elaborate or excessive, but does not include the costs of personal recreation, such as being a spectator at or engaging in a sporting or athletic activity which may occur as part of that event.

     c.     This section shall not apply to the solicitation or acceptance of contributions to the campaign of an announced candidate for elective public office, except that campaign contributions may not be accepted if they are known to be given in lieu of a payment prohibited pursuant to this section.

     d.  (1)  Notwithstanding any other provision of law, a designated State officer as defined in paragraph (2) of this subsection shall not solicit, receive or agree to receive, whether directly or indirectly, any compensation, salary, honorarium, fee, or other form of income from any source, other than the compensation paid or reimbursed to him or her by the State for the performance of official duties, for any service, advice, assistance, appearance, speech or other matter, except for investment income from stocks, mutual funds, bonds, bank accounts, notes, a beneficial interest in a trust, financial compensation received as a result of prior employment or contractual relationships, and income from the disposition or rental of real property, or any other similar financial instrument and except for compensation for books and published works or reimbursement for travel as authorized in paragraphs (2) and (3) of subsection b. of this section. To receive such income, a designated State officer shall first seek review and approval by the State Ethics Commission to ensure that the receipt of such income does not violate the "New Jersey Conflicts of Interest Law," P.L.1971, c.182 (C.52:13D-12 et seq.) or any applicable code of ethics, and does not undermine the full and diligent performance of the designated State officer's duties.

     (2)   For the purposes of this subsection, "designated State officer" shall include: the Governor, the Adjutant General, the Secretary of Agriculture, the Attorney General, the Commissioner of Banking and Insurance, the director of the Division of Business Assistance, Marketing, and International Trade, the Commissioner of Community Affairs, the Commissioner of Corrections, the Commissioner of Education, the Commissioner of Environmental Protection, the Commissioner of Health [and Senior Services], the Commissioner of Human Services, the Commissioner of Children and Families, the Commissioner of Labor and Workforce Development, the President of the State Board of Public Utilities, the Secretary of State, the Superintendent of State Police, the Commissioner of Transportation, the State Treasurer, the head of any other department in the Executive Branch, and the following members of the staff of the Office of the Governor: Chief of Staff, Chief of Management and Operations, Chief of Policy and Communications, Chief Counsel to the Governor, Director of Communications, Policy Counselor to the Governor, and any deputy or principal administrative assistant to any of the aforementioned members of the staff of the Office of the Governor listed in this subsection.

     e.     A violation of this section shall not constitute a crime or offense under the laws of this State.

(cf: P.L. 2008, c.29, s.105)

 

     5.  Section 1 of P.L.1974, c.55 (C.52:14-15.107) is amended to read as follows:

     1.    Notwithstanding the provisions of the annual appropriations act and section 7 of P.L.1974, c.55 (C.52:14-15.110), the Governor shall fix and establish the annual salary[,] for each of the following officers in an amount not to exceed [$133,330 in calendar year 2000, $137,165 in calendar year 2001 and] $141,000 in calendar year 2002 and thereafter, [for each of] and in an amount not to exceed $175,000, but not less than $141,000, in calendar year 2017 and thereafter.  For calendar year 2017 and thereafter, the Governor shall determine the annual salary for each of the following officers in an amount, within the limits set, appropriate for each officer.  This section shall apply to the following officers:

     Title

Agriculture Department

     Secretary of Agriculture

Children and Families Department

     Commissioner of Children and Families

Community Affairs Department

     Commissioner of Community Affairs

Corrections Department

     Commissioner of Corrections

Education Department

     Commissioner of Education

Environmental Protection Department

     Commissioner of Environmental Protection

Health [and Senior Services] Department

     Commissioner of Health [and Senior Services]

Human Services Department

     Commissioner of Human Services

Banking and Insurance Department

     Commissioner of Banking and Insurance

Labor and Workforce Development Department

     Commissioner of Labor and Workforce Development

Law and Public Safety Department

     Attorney General

Military and Veterans' Affairs Department

     Adjutant General

State Department

     Secretary of State

Transportation Department

     Commissioner of Transportation

Treasury Department

     State Treasurer

Members, Board of Public Utilities

(cf: P.L.2010, c.34, s.16)

 

     6.  Section 6 of P.L.1950, c.270 (C.52:18A-84) is amended to read as follows:

     6.    The Division of Investment established hereunder shall be under the immediate supervision and direction of a director, who shall be a person qualified by training and experience to direct the work of such division. The director of such division shall be appointed by the State Treasurer from a list of one or more persons qualified for such office and submitted to the State Treasurer by the State Investment Council; provided, that the State Treasurer may require the submission of an additional list or lists. Each list so submitted by the council shall also contain the qualifications of each person whose name appears thereon who shall be certified by the council to the State Treasurer as qualified for the office of director of such division.  The detailed qualifications of each person so named by the council shall be contained in such certification.

     Any director so appointed shall serve without term but may be removed from office (a) by the State Treasurer, for cause, upon notice and opportunity to be heard at a public hearing, or (b) by the State Investment Council, if seven or more members thereof shall vote for such director's removal from office.

     Any vacancy occurring in the office of the Director of the Division of Investment shall be filled in the same manner as the original appointment.

     The director of said division shall devote his entire time and attention to the duties of his office and shall not be engaged in any other occupation or profession.   Notwithstanding any other provision of law to the contrary, the State Treasurer shall determine the salary of the director [the amount of which shall not exceed $200,000].

(cf: P.L.1998, c.38, s.2)

 

     7.  (New section)  The annual salary of the executive director of each full time legislative staff operating under the direction of the Senate President, the Speaker of the General Assembly, and the Minority Leaders of each House of the Legislature shall be fixed and established by the President of the Senate and by the Speaker of the General Assembly, as appropriate, for each director in any amount that the President or Speaker determines to be appropriate for that director, but shall not exceed $175,000 in calendar year 2017 and thereafter.

 

     8.  The Title of P.L.1948, c.16 is amended to read as follows:

     An Act fixing the annual compensation of members of the Senate and General Assembly and providing for the payment thereof and for the payment of an additional allowance to the President of the Senate and the Speaker of the General Assembly and an additional allowance for staff services to each member thereof.

(cf:  P.L.1948, c.16, Title)

 

     9.  This act shall take effect immediately.

 

 

STATEMENT

 

     This bill increases the maximum salary allowed for the Governor’s cabinet officers and members of the Board of Public Utilities (BPU) to $175,000 for calendar year 2017 and thereafter, while also setting $141,000 as the minimum required salary.  The language in current law is modified to specifically recognize that the Governor may establish the annual salary for the cabinet officers and BPU members in any amount not less than $141,000 that the Governor determines to be appropriate for each person.  The Governor requires the flexibility to set the annual salary at any amount within the limits specified, which need not be the same for all of these officers.

     In addition, the bill provides for an annual three percent increase in 2017 and in 2018 in the annual salaries for the justices of the Supreme Court, Appellate Division judges, Assignment judges, judges of the Superior Court, and judges of the Tax Court.  The bill provides for an automatic annual adjustment of those salaries for calendar year 2019 and thereafter based on the change in the Consumer Price Index.  Under current law, the annual salary for workers’ compensation judges, administrative law judges, surrogates, county clerks, registers of deeds and mortgages, and sheriffs are linked to the annual salary for a Superior Court judge so that they receive the specific or minimum percentage, that is set by law, of the Superior Court judges’ salaries.  The statutes that provide for these linked salaries are clearly mandatory in nature and when the salaries of judges are increased, the linked salaries must also be increased, including retroactively. The statutory language must be complied with, including retroactively, to achieve the Legislature’s intent.

     The bill removes the $200,000 cap placed on the salary of the Director of the Division of Investment.

     The bill codifies the annual allowance provided to each member of the Senate and General Assembly for member staff services, which will be $140,000 beginning in the 2017 legislative session.  The current allowance is $110,000 and is not provided for by statute.

     The bill codifies a provision for the annual salary of the executive director of each full time legislative staff operating under the direction of the Senate President, the Speaker of the General Assembly, and the Minority Leaders of each House of the Legislature.  Currently, these salaries are not provided for by statute.  Under the bill, the salary for each executive director will be fixed and established by the President of the Senate or by the Speaker of the General Assembly, as appropriate, in any amount that the President or Speaker determines to be appropriate for that director, but not to exceed $175,000 in calendar year 2017 and thereafter.  While this maximum amount for the annual salary is identical to the maximum amount for the annual salary for the Governor’s cabinet officers and members of the Board of Public Utilities, the President of the Senate and the Speaker of the General Assembly will have complete discretion to set the salaries for the legislative executive directors at any amount that is at or below this maximum, as they deem appropriate, regardless of the decisions made by the Governor for the salaries of the cabinet officers and members of the Board of Public Utilities.  The President and Speaker require the flexibility to set the annual salary for each executive director at any amount, whether at or below the maximum, irrespective of the salaries of the Executive Branch officers.

     Finally, this bill adds compensation for books and published works to the list of income a designated State officer may solicit or receive. The designated State officer must first seek review and approval by the State Ethics Commission to ensure that the receipt of such income does not violate the "New Jersey Conflicts of Interest Law" or any applicable code of ethics, and that it does not undermine the full and diligent performance of the designated State officer's duties.

     The law defines “designated State officer” as the:

     Governor;

     Adjutant General;

     Secretary of Agriculture;

     Attorney General;

     Commissioner of Banking and Insurance;

     Director of the Division of Business Assistance, Marketing, and International Trade;

     Commissioner of Community Affairs;

     Commissioner of Corrections;

     Commissioner of Education;

     Commissioner of Environmental Protection;

     Commissioner of Health;

     Commissioner of Human Services;

     Commissioner of Children and Families;

     Commissioner of Labor and Workforce Development;

     President of the State Board of Public Utilities;

     Secretary of State;

     Superintendent of State Police;

     Commissioner of Transportation;

     State Treasurer;

     Head of any other department in the Executive Branch; and

     Staff of the Office of the Governor (Chief of Staff, Chief of Management and Operations, Chief of Policy and Communications, Chief Counsel to the Governor, Director of Communications, Policy Counselor to the Governor, and any deputy or principal administrative assistant to any of the aforementioned staff members).