ASSEMBLY LOCAL GOVERNMENT COMMITTEE

STATEMENT TO

ASSEMBLY COMMITTEE SUBSTITUTE FOR

ASSEMBLY, Nos. 1224 and 1226

STATE OF NEW JERSEY

DATED: DECEMBER 5, 1996

      The Assembly Local Government Committee reports favorably a committee substitute for Assembly Bills Nos. 1224 and 1226.

      The substitute would permit a governing body to set the amount of severance pay for a municipal administrator at a level greater than the three months' pay currently permitted. This amendment would provide governing bodies with additional flexibility when recruiting new administrators and renegotiating with appointed administrators.

      In addition, the substitute would require a two-thirds vote of the entire membership of the municipal governing body to remove a municipal manager under the "Optional Municipal Charter Law," P.L.1950, c.210 (C.40:69A-1 et seq.). Under current law a majority vote is required. This amendment would make the law consistent with the laws regarding the removal of municipal administrators. The substitute also would provide the municipal governing body with the discretion to pay a municipal manager severance of more than three months' salary when a removal is without good cause.       As introduced by the sponsors, Assembly Bill No. 1224 permitted a governing body to set the amount of severance pay for a municipal administrator at a level greater than the three months' pay currently permitted and Assembly Bill No. 1226 required a two-thirds vote of the entire membership of the municipal governing body to remove a municipal manager under the "Optional Municipal Charter Law," P.L.1950, c.210 (C.40:69A-1 et seq.).