SENATE COMMUNITY AFFAIRS COMMITTEE
STATEMENT TO
SENATE, No. 2
with committee amendments
STATE OF NEW JERSEY
DATED: JANUARY 29, 1996
The Senate Community Affairs Committee reports favorably Senate Bill No. 2 with committee amendments.
This bill, as amended by the committee, would implement the constitutional amendment, approved by the voters at the 1995 general election, which prohibits the Legislature and State agencies from imposing unfunded mandates on counties, municipalities, and school districts. The bill would create, as required by the constitutional amendment, a nine-member Council on Local Mandates which would resolve disputes as to whether a statute, rule, or regulation constitutes an unfunded State mandate.
Section 2 of the amended bill would provide that any provision of law enacted on or after January 17, 1996, or any part of any rule or regulation originally adopted after July 1, 1996, which is determined to be an unfunded mandate upon boards of education, counties, or municipalities shall cease in its effect and shall expire. A law, rule, or regulation will be found to be an unfunded mandate if it does not authorize resources to offset the additional direct expenditures required by the law, rule, or regulation. Section 3 of the bill, as amended, sets forth the six categories of laws, rules, and regulations which the constitutional amendment specifies are not to be considered unfunded mandates, specifically:
∙ those which are required to comply with federal laws or rules, or to meet eligibility standards for federal entitlements;
∙ those which are imposed on both governmental and non-governmental entities in the same or substantially similar circumstances;
∙ 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;
∙ those which stem from failure to comply with laws previously enacted, or with previously adopted rules or regulations issued pursuant to a law;
∙ those which implement the provisions of the New Jersey Constitution; and
∙ 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.
Sections 4, 5, 6, 7, and 8 of the amended bill would create the Council on Local Mandates, detail the process by which its nine members are chosen, set forth qualifications for membership, establish means of filling vacancies, and set forth members' compensation.
Sections 9, 10, and 11 of the amended bill would provide for the organization of the council, the selection of its chair, and the appointment of staff and professional employees, and would direct that the members and employees be subject to the "New Jersey Conflicts of Interest Law," P.L.1971, c.182 (C.52:13A-12 et seq.), except that in addition thereto, council members would be prohibited from holding state or local office or employment during time of service to the council and for two years thereafter.
Section 12 of the amended bill would provide that the council must review and issue rulings upon complaints filed with the council by a county, municipality, or school district alleging that a statute, rule, or regulation constitutes an unfunded mandate. A complaint may be instituted by resolution of a county or municipal governing body, by resolution of a local board of education, or by written complaint of a county executive or of a mayor who has been directly elected by the voters of the municipality. The council must review each complaint and, when necessary, interview witnesses and examine documents.
The council by majority vote of its membership must issue a written ruling as to whether a statute, rule, or regulation constitutes an unfunded State mandate, and an explanation of the reasons for its determination. Members may file concurring or dissenting opinions. If the council determines that a statute, rule, or regulation constitutes an unfunded mandate, the impermissible provision of the law or part of the rule or regulation would cease to be mandatory in its effect and would expire. The council would have no authority to determine whether funding of any statute, rule, or regulation is inadequate.
Sections 13 through 16 of the amended bill would provide that the council may not issue advisory rulings or opinions, or rule on pending legislation or regulations. The council would not be subject to the "Open Public Meetings Act," P.L.1975, c.231 (C.10:4-6 et seq.). The council would be required to examine witnesses and receive evidence in public. It would be required to issue rulings and opinions in writing, publish them in a suitable form, and make them available to the public. The council's rulings, as well as any record of its proceedings conducted in public, would be public records pursuant to P.L.1963, c.73 (C.47:1A-1 et seq.). As amended, the bill would also permit the council to issue a preliminary ruling enjoining the enforcement of a statute, rule, or regulation.
Section 17 of the amended bill would permit the council to request assistance in the performance of its duties from any state agency, county, municipality, or school district.
Section 18 of the amended bill would provide that the council's rulings shall be political determinations and shall not be subject to judicial review.
Section 19 of the amended bill would require the council to submit annual reports to the Governor and the Legislature setting forth the names and salaries of its employees and contractors.
Sections 20 and 21 of the amended bill would provide that the Legislature must annually appropriate funds necessary to the council for it to carry out its responsibilities under the constitutional amendment and this bill, and would appropriate $350,000 from the general fund for the remainder of FY1996.
The committee amended the bill to:
(1) provide that each member of the council may employ one professional employee;
(2) authorize county executives and directly elected mayors to file complaints with the council;
(3) authorize council members to issue concurring or dissenting opinions; and
(4) require the council to submit an annual report to the Governor and the Legislature setting forth the names and salaries of its employees and contractors.
The committee also considered, but did not adopt, an amendment to delete the provision prohibiting the council from determining whether funding of a statute, rule, or regulation is adequate and an amendment to require that the bill expire on July 1, 2000.