ASSEMBLY, No. 1399
STATE OF NEW JERSEY
PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION
By Assemblywoman ALLEN and Assemblyman DeSOPO
An Act concerning State mandates imposed on certain units of local government, creating a Council on Local Mandates and supplementing Title 52 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Except as provided in section 2 of this act, any provision of a law enacted on or after January 17, 1996, or any part of a rule or regulation originally adopted after July 1, 1996 pursuant to a law regardless of when that law was enacted, which is determined in accordance with the provisions of this act to be an unfunded mandate upon boards of education, counties, or municipalities because it does not authorize resources to offset the additional direct expenditures required for the implementation of the law or the rule or regulation and would necessitate an increase in local property taxes, shall cease to be mandatory in its effect and shall expire. A law or a rule or regulation which is determined to be an unfunded mandate shall not be considered to establish a standard of care for the purpose of civil liability.
2. Notwithstanding the provisions of any other law to the contrary, the following categories of laws and rules or regulations shall not be unfunded mandates:
a. those which are required to comply with federal laws or rules or to meet eligibility standards for federal entitlements;
b. those which are imposed on both government and non-government entities in the same or substantially similar circumstances;
c. those which repeal, revise or ease an existing requirement or mandate or which reapportion the costs of activities between boards of education, counties, and municipalities;
d. those which stem from failure to comply with previously enacted laws or rules or regulations issued pursuant to a law;
e. those which implement the provisions of the New Jersey Constitution; and
f. laws which are enacted after a public hearing, held after public notice that unfunded mandates will be considered, for which a fiscal analysis is available at the time of the public hearing and which, in addition to complying with all other constitutional requirements with regard to the enactment of laws, are passed by 3/4 affirmative vote of the members of each House of the Legislature.
3. Pursuant to Article VIII, Section II, paragraph 5(b) of the New Jersey Constitution, there is created a Council on Local Mandates. The council shall consist of nine members. The Governor shall appoint four members, at least two of whom shall be selected from a list of six willing nominees submitted by the chair of the State committee of the political party the gubernatorial candidate of which received the second largest number of votes cast in the most recent general election for Governor. The President of the Senate, the Minority Leader of the Senate, the Speaker of the General Assembly, the Minority Leader of the General Assembly and the Chief Justice of the New Jersey Supreme Court shall each appoint one member.
4. A member of the council shall be a citizen of the United States and a resident of New Jersey at the time of appointment and while serving on the council. Each appointee shall demonstrate to the satisfaction of the official making the appointment that the appointee possesses knowledge of, and familiarity with, the legislative process, the regulatory functions of the Executive Branch, and the procedures and operations of units of local government; except that in the case of a person appointed by the Governor from a list of six willing nominees submitted by the chair of the State committee of the political party the gubernatorial candidate of which received the second largest number of votes cast in the most recent general election for Governor the appointee shall demonstrate such knowledge and familiarity to the satisfaction of that chair.
5. a. Within 20 days of the effective date of this act, the chair of the State committee of the political party the gubernatorial candidate of which received the second largest number of votes cast in the most recent general election for Governor shall submit to the Governor a list of names of six nominees willing to serve on the council. Within 30 days of the effective date, the Governor shall appoint four members of the council, two of whom shall be selected from that list. The terms of the members initially appointed by the Governor shall expire on February 15, 1998. Thereafter, members appointed by the Governor shall serve terms of four years beginning on the expiration date of the prior members' terms and ending on February 15 four years later. At least 20 days prior to the expiration of the term of the gubernatorial appointees, the chair of the State committee of the political party the gubernatorial candidate of which received the second largest number of votes cast in the most recent general election for Governor shall submit a list of names of six nominees willing to serve on the council. Two of the four members appointed by the Governor shall be selected from that list.
b. Within 30 days of the effective date of this act, the President of the Senate, the Minority Leader of the Senate, the Speaker of the General Assembly and the Minority Leader of the General Assembly shall each appoint one member of the council. The terms of the members initially appointed by these officials shall expire on February 15, 1998. Thereafter, such members shall serve terms of two years beginning on the expiration date of the preceding members' terms and ending on February 15 two years later.
c. Within 30 days of the effective date of this act, the Chief Justice of the New Jersey Supreme Court shall appoint one member of the council. The term of the member initially appointed by the Chief Justice shall expire on February 15, 2001. Thereafter, the member appointed by the Chief Justice shall serve a term of five years beginning on the expiration of the preceding member's term and ending on February 15 five years later.
d. A member of the council may continue to serve in a hold-over capacity upon the expiration of the member's term until a successor is appointed.
6. A vacancy in the membership of the council shall be filled in the same manner in which the original appointment was made, but for the unexpired term only. When a vacancy occurs among one of the gubernatorial appointees who is a member of the same political party as the Governor then in office, the Governor shall appoint a replacement of the Governor's choice. When a vacancy occurs among one of the gubernatorial appointees who is a member of a political party which is different from that of the Governor, the Governor shall appoint a replacement from a list of three nominees submitted by the chair of the State committee of that political party.
7. A member of the council shall receive compensation in the amount of $25,000 per annum and shall be reimbursed for necessary expenses incurred in the performance of the member's duties.
8. The council shall organize as soon as possible after the appointment of its members. The first chair of the council shall be appointed by the Governor from among the members thereof. At the first meeting of the council held after February 15 in each subsequent year, the members shall choose one of their number to serve as chair of the council. At least five members of the council shall be present in order for the council to conduct its business. A ruling of the council shall require a majority vote of the membership.
9. The council shall establish, and revise from time to time, a plan for its organization and may incur expenses within the limits of funds available to it. The council shall appoint an executive director who shall serve at its pleasure and shall be responsible for the conduct of its administrative affairs. The council may employ such professional staff, including legal counsel, and such clerical and secretarial personnel as it deems necessary. The executive director and professional staff shall be in the State unclassified service. All other employees of the council shall be in the career service of the State. Professional employees of the council shall be deemed confidential employees for purposes of the "New Jersey Employer-Employee Relations Act," P.L.1941, c.100 (C.34:13A-1 et seq.). Members and employees of the council shall be enrolled in the Public Employees' Retirement System. The council may employ outside legal counsel to render legal advice or to represent the council in any proceeding to which it is a party. The council may contract for the services of other professional, technical and operational personnel and consultants as may be necessary for the performance of its responsibilities under this act.
10. The members and employees of the council shall be subject to the provisions of the "New Jersey Conflicts of Interest Law," P.L.1971, c.182 (C.52:13D-12 et seq.). The council shall adopt a code of ethics to govern the conduct of its members and employees. A member of the council may hold other gainful employment which is not in conflict with the member's duties on the council or the code of ethics, except that a member of the council shall not hold any other State or local office or employment while serving on the council. The Executive Commission on Ethical Standards shall have jurisdiction to consider complaints regarding violations of P.L.1971, c.182 (C.52:13A-12 et seq.) or of the code of ethics by any member or employee of the council.
11. a. It shall be the duty of the council to review, and issue rulings upon, complaints filed with the council by a county, municipality or school district that any provision of a statute enacted on or after January 17, 1996 and any part of a rule or regulation originally adopted after July 1, 1996 pursuant to a law regardless of when that law was enacted constitutes an unfunded mandate upon the county, municipality or school district because it does not authorize resources to offset the additional direct expenditures required for the implementation of the statute or the rule or regulation and would necessitate an increase in local property taxes. A complaint filed with the council shall be in the form of a resolution passed by the governing body of a county or municipality or by a local board of education which may be accompanied by supportive evidence. The council shall review each complaint and, when necessary, examine documents and hear testimony. The council, by majority vote of its membership, shall issue a written ruling as to whether or not a statute or a rule or regulation constitutes an unfunded State mandate and explaining the reasons for its determination. If the council determines that any provision of a statute or any part of a rule or regulation constitutes an unfunded State mandate which is prohibited by Article VII, Section II, paragraph 5 of the New Jersey Constitution and this act, that provision of the law or that part of the rule or regulation shall cease to be mandatory in its effect and shall expire. A ruling of the council shall be restricted to the specific provision of a law or the specific part of a rule or regulation which constitutes an unfunded mandate and shall, as far as possible, leave intact the remainder of a statute or a rule or regulation.
b. The council shall have the authority to consolidate complaints filed by more than one governing body or local board in regard to the same provision of a statute or the same part of a rule or regulation.
c. Any group or individual may file a written request with the council to appear before the council and offer testimony in regard to a complaint.
12. The council shall not consider complaints concerning pending legislation or proposed rules or regulations and shall not issue advisory rulings or opinions on any matter.
13. A ruling issued by the council shall be in writing and shall set forth the reasons for the council's determination. The council shall cause its rulings to be published in a suitable form and made available to members of the public. The rulings of the council, as well as any record of its proceedings, shall be public records pursuant to P.L.1963, c.73 (C.47:1A-1 et seq.).
14. The council may request and shall receive from any State agency or any county, municipality or school district cooperation and assistance in the performance of its duties.
15. Pursuant to Article VIII, Section II, paragraph 5(b) of the New Jersey Constitution, rulings of the council shall be political determinations and shall not be subject to judicial review.
16. The Legislature shall annually appropriate to the council from the General Fund of the State such amounts as may be necessary for the council to effectively carry out its responsibilities under this act.
17. This act shall take effect immediately.
STATEMENT
The purpose of this bill is to implement the constitutional amendment, approved by the voters at the 1995 general election, which provides that certain new statutes and new administrative rules and regulations promulgated by State agencies shall not impose unfunded mandates on counties, municipalities or school districts. The constitutional amendment is intended to prevent the State government from requiring units of local government to implement additional or expanded activities without providing funding for those activities. The prior practice of State-imposed, unfunded mandates has contributed to the rise in local property taxes which has increasingly burdened New Jersey's property owners. As required by the constitutional amendment, the bill also creates a nine-member Council on Local Mandates to review, and issue rulings upon, complaints filed with the council by a county, municipality or school district that a statute or a rule or regulation constitutes an impermissible unfunded State mandate.
Implements constitutional amendment regarding State mandates imposed on units of local government; creates Council on Local Mandates.