SENATE COMMUNITY AFFAIRS COMMITTEE

STATEMENT TO

ASSEMBLY COMMITTEE SUBSTITUTE FOR

ASSEMBLY, Nos. 1224 and 1226

STATE OF NEW JERSEY

DATED: JUNE 5, 1997

      The Senate Community Affairs Committee reports favorably Assembly Bill No. 1224 and 1226 ACS.

      This substitute would permit a governing body to set severance pay for a municipal administrator at a level greater than the three months' pay currently permitted. This substitute would give governing bodies 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.). Current law requires a majority vote. This substitute 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 would have permitted a governing body to set severance pay for a municipal administrator at a level greater than the three months' pay currently permitted, and Assembly Bill No. 1226 would have 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.).