SENATE, No. 2163

STATE OF NEW JERSEY

INTRODUCED JUNE 5, 1997

By Senator PALAIA

An Act concerning municipal administrators and managers and amending N.J.S.40A:9-138 and P.L.1950, c.210.

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

    1. N.J.S.40A:9-138 is amended to read as follows:

    40A:9-138. The municipal administrator may be removed by a 2/3 vote of the governing body. The resolution of removal shall become effective 3 months after its adoption by the governing body. The governing body may provide that the resolution shall have immediate effect; provided, however, that the governing body shall cause to be paid to the administrator forthwith any unpaid balance of his salary and his salary for a minimum of the next 3 calendar months following adoption of the resolution.

(cf: N.J.S.40A:9-138)

    2. Section 9-13 of P.L.1950, c.210 (C.40:69A-93) is amended to read as follows:

    9-13. The municipal manager shall hold office for an indefinite term and may be removed by a [majority] two-thirds vote of the council. At least 30 days before such removal shall become effective, the council shall by a [majority] two-thirds vote of its members adopt a preliminary resolution stating the reasons for his removal. The manager may reply in writing and may request a public hearing, which shall be held not earlier than 20 days nor later than 30 days after the filing of such request. After such public hearing, if one be requested, and after full consideration, the council by [majority] two-thirds vote of its members may adopt a final resolution of removal. By the preliminary resolution the council may suspend the manager from duty, but shall in any case cause to be paid him forthwith any unpaid balance of his salary and his salary for a minimum of the next 3 calendar months following adoption of the preliminary resolution unless he is removed for good cause. For the purposes of this section, "good cause" shall mean conviction of a crime or offense involving moral turpitude, the violation of the provisions of section 17-14, 17-15, 17-16, 17-17 or 17-18 of P.L.1950, c.210 (C.40:69A-163 through 40:69A-167), or the violation of any code of ethics in effect within the municipality.

(cf: P.L.1981, c.465, s.27)

    3. This act shall take effect immediately.

STATEMENT

    This bill 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.

    In addition, the bill 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 bill 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.

Concerns removal of, and severance pay for, certain local personnel.