STATE OF NEW JERSEY. SENATE, No th LEGISLATURE. Sponsored by: Senator BRIAN P. STACK District 33 (Hudson)

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1 SENATE, No. STATE OF NEW JERSEY th LEGISLATURE INTRODUCED SEPTEMBER, 0 Sponsored by: Senator BRIAN P. STACK District (Hudson) SYNOPSIS Subjects certain joint meetings to financial oversight of Division of Local Government Services. CURRENT VERSION OF TEXT As introduced.

2 AN ACT subjecting certain joint meetings to direct financial oversight of the Division of Local Government Services and supplementing P.L.00, c. (C.0A:- et seq.). BE IT ENACTED by the Senate and General Assembly of the State of New Jersey:. a. As used in this section: "Financial determination" means a decision of a management committee to expend or appropriate funds that imposes a financial cost upon a participating local unit of a joint meeting, including but not limited to the management committee's annual certification to the participating local units of the total costs and expenses of operation, and apportionment of the costs and expenses of operation among the participating local units, prepared pursuant to section of P.L.00, c. (C.0A:-). "Management committee" means the management committee of a joint meeting formed pursuant to the "Consolidated Municipal Service Act," P.L., c. (C.0:B- et seq.) by four or more local units for the purpose of providing for the joint operation of fire protection, rescue and emergency services, and other governmental purposes. b. Notwithstanding the provisions of a joint contract, sections through of P.L.00, c. (C.0A:- through C.0A:- ), or any other provision of law, rule, or regulation to the contrary, all financial determinations of a management committee are hereby deemed proposed financial determinations subject to the review and approval of the director. c. () A management committee shall submit to the director, for the director's review and approval, each of the management committee's proposed financial determinations. () The director shall not approve a proposed financial determination submitted by a management committee unless the proposed financial determination is reasonable in cost, necessary for the performance of the joint meeting, and is consistent with the other requirements of this section. () The percentage of growth in a management committee's annual certification of the total costs and expenses of operation shall not exceed two percent per year. The apportionment of the costs and expenses of operation among the participating local units shall not exceed the apportionment of those costs and expenses in the previous budget year to each participating local unit by more than two percent. No other management committee financial determination shall cause the total costs and expenses of operation of the joint meeting to exceed two percent per year or cause the apportionment of the costs and expenses of operation among the participating local units to exceed the apportionment of those costs

3 and expenses in the previous budget year to each participating local unit by more than two percent. d. () Upon receipt of a management committee's proposed financial determination, the director shall provide notice to the governing body of each participating local unit of the director's receipt of the proposed financial determination, together with a copy of the proposed financial determination. The notice shall inform the governing body of each participating local unit that each local unit may submit comments to the director concerning the proposed financial determination prior to the 0th day after the date of the notice. () Prior to the 0th day after the date of the notice, the director shall review the proposed financial determination and any comments submitted pursuant to paragraph () of this subsection and determine whether the proposed financial determination: (a) conforms with the required limitations on appropriations applicable to the joint meeting and each participating local unit; (b) conforms with the required limitations on the apportionment of the costs and expenses of the joint meeting among the participating local units; and (c) is reasonable in cost and necessary for the performance of the joint meeting. () If the director determines that the proposed financial determination complies with the requirements of this section, the director shall approve the proposed financial determination. () If the director determines that the proposed financial determination does not comply with the requirements of this section, the director shall disapprove the proposed financial determination and deliver a written notice of disapproval to the management committee explaining the reasons for the disapproval. () After the effective date of this act, a management committee's financial determination shall be of no force or effect unless approved by the director.. This act shall take effect immediately. STATEMENT This bill would impose State oversight upon the financial determinations of certain joint meetings. A joint meeting is a political subdivision of the State formed by contract between two or more local units to jointly perform a service each local unit could perform on its own. Under current law, a joint meeting, once formed, may exist for a term of up to 0 years. Current law requires each joint contract to provide for the establishment of a management committee, which is the entity responsible for making financial determinations for the joint meeting. Current law requires

4 each participating local unit to finance a proportional share of a joint meeting's financial determinations based upon the terms of the joint contract. Because of the lengthy term of a joint contract, and the inability of one or more participating local units to object to financial obligations set by a management committee, provisions of a joint contract entered into long ago may result in an unfair financial burden on a participating local unit. This bill would impose State oversight over the financial determinations of a specific joint meeting, the North Hudson Regional Fire and Rescue (NHRFR). The NHRFR was established almost 0 years ago. The NHRFR is governed by a five-member management committee, consisting of one representative from each participating municipality (Guttenberg, North Bergen, Union City, Weehawken and West New York). A municipality's admission to or withdrawal from the NHRFR requires four votes from the management committee. The bill would subject all financial determinations of the NHRFR management committee to the review and approval of the Director of the Division of Local Government Services (DLGS) in the Department of Community Affairs. The bill specifically imposes State oversight over the management committee's annual certification to the participating local units of the total costs and expenses of operation, and apportionment of the costs and expenses of operation among the participating local units, prepared pursuant to section of P.L.00, c. (C.0A:-). The bill prohibits the director of DLGS from approving a management committee's proposed financial determination unless it is reasonable in cost and necessary for the performance of the joint meeting. The bill specifically limits the percentage of growth in a management committee's annual certification of the total costs and expenses of operation to two percent per year. The bill also specifically requires the apportionment of the costs and expenses of operation among the participating local units to not exceed the apportionment of those costs and expenses in the previous budget year to each participating local unit by more than two percent. The bill prohibits any other management committee financial determination from undermining these two percent "caps." The bill would require the management committee to submit each of its proposed financial determinations to the director of DLGS for review and approval. Under the bill, the director would notify the governing body of each participating local unit upon receipt of a proposed financial determination, provide each governing body a copy of the proposed financial determination, and inform each governing body of its opportunity to submit comments to the director about the proposed financial determination prior to the 0th day after the date of the notice.

5 0 Under the bill, prior to the 0th day after the date of the notice, the director would review the proposed financial determination, together with any submitted comments, and approve or disapprove the proposed financial determination. The director would approve the proposed financial determination if the proposal complies with the requirements of this bill. If the director determines that a proposed financial determination does not comply with the requirements of this bill, the director would disapprove the proposed financial determination and deliver a written notice of disapproval to the management committee explaining the reasons for the disapproval. The sponsor believes that by subjecting NHRFR financial determinations to DLGS oversight, the bill will require NHRFR to make reasonable, fiscally prudent, financial determinations that are consistent with concepts of fairness and constrained by limitations on annual budgetary increases that State law imposes on other local units of government.