ASSEMBLY HOUSING COMMITTEE

STATEMENT TO

ASSEMBLY, No. 1838

with committee amendments

STATE OF NEW JERSEY

DATED: JUNE 10, 1996

      The Assembly Housing Committee reports favorably Assembly Bill No. 1838, with committee amendments.

      This bill, as amended by the committee, is intended to permit residents of a municipality, county or school district to perform clerical or professional services previously performed by a part-time or full-time local unit employee who vacated such a position. In return for the service provided, a resident associate would receive a voucher to be used to offset the resident associate's property tax liability. The resident associate would perform the same services of the prior local government employee at no more than half the rate of pay of that employee and with no pension, health or other fringe benefits. The program would be open to any member of the community, provided the individual is properly qualified for the position. A resident associate may not fill, however, a position requiring certification by the State. A position that was funded through State or federal grant monies also could not be filled with a resident associate under the bill.

      The committee amended the bill to clarify that an employer would be responsible for withholding all required taxes and contributions for worker's compensation coverage. The amendments would also deny resident associates unemployment compensation benefits, since these positions are not permanent. The amendments also provide an exemption from the State gross income tax for any compensation paid to a resident associate. Finally, the amendments provide that vouchers earned by a resident associate could be used to pay off back taxes owed, but not prospective taxes.