Sponsored by:
Senator STEVEN V. OROHO
District 24 (Sussex, Hunterdon and Morris)
Senator ANTHONY R. BUCCO
District 25 (Morris)
Co-Sponsored by:
Senators Doherty, O'Toole, Pennacchio and T.Kean
SYNOPSIS
Conditions receipt of special State financial assistance on implementation of efficiency and oversight measures; permits use of State aid for certain administrative and oversight costs.
CURRENT VERSION OF TEXT
As introduced.
An Act authorizing State oversight of municipalities experiencing fiscal distress and supplementing Title 52 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. The receipt of any amount of grants and loans, or any combination thereof provided to any municipality pursuant to the provisions of the “Special Municipal Aid Act,” P.L.1987, c.75 (C.52:27D-118.24 et seq.), “Supplemental Municipal Property Tax Relief Act,” sections 1 through 12 of P.L.1991, c.63 (C.52:27D-118.32 et seq.), Transitional Aid to Localities, or any similar or successor programs shall be subject to such conditions, requirements, orders, and oversight as deemed necessary by the Director of the Division of Local Government Services in the Department of Community Affairs. Any conditions, requirements, and orders may include the implementation of government, administrative, and operational efficiency and oversight measures necessary for the fiscal recovery of the municipality.
b. Any municipality that is under State supervision pursuant to Article 4 of the “Local Government Supervision Act (1947),” P.L.1947, c.151 (C.52:27BB-54 et seq.) shall be subject to such conditions, requirements, orders, and oversight as deemed necessary by the Director of the Division of Local Government Services in the Department of Community Affairs. Any conditions, requirements, and orders may include the implementation of government, administrative, and operational efficiency and oversight measures necessary for the fiscal recovery of the municipality.
c. The Director of the Division of Local Government Services may use up to one percent of the total amount of State aid appropriated in a fiscal year for the “Special Municipal Aid Act,” P.L.1987, c.75 (C.52:27D-118.24 et seq.), “Supplemental Municipal Property Tax Relief Act,” sections 1 through 12 of P.L.1991, c.63 (C.52:27D-118.32 et seq.), Transitional Aid to Localities, or similar or successor programs for the administrative costs of each program and may also use such funds for the administrative costs associated with the oversight of any municipalities that are under State supervision pursuant to Article 4 of the “Local Government Supervision Act (1947),” P.L.1947, c.151 (C.52:27BB-54 et seq.).
2. This act shall take effect immediately.
STATEMENT
This bill would supplement current law to provide greater fiscal control and strengthen the State’s oversight of municipalities that receive additional State financial assistance pursuant to the provisions of the “Special Municipal Aid Act,” P.L.1987, c.75 (C.52:27D-118.24 et seq.), “Supplemental Municipal Property Tax Relief Act,” sections 1 through 12 of P.L.1991, c.63 (C.52:27D-118.32 et seq.), Transitional Aid to Localities, or any similar or successor programs. The Director of the Division of Local Government Services in the Department of Community Affairs would be permitted to condition the receipt of State aid on any requirements, orders, and oversight as he deems necessary.
The authority granted to the Director of the Division of Local Government Services by this legislation would also extend to municipalities that are under State supervision because they are in, or in danger of falling into unsound financial condition. It is the intent of the sponsor to supplement, not supersede, the powers granted to the Local Finance Board by Article 4 of the “Local Government Supervision Act (1947),” P.L.1947, c.151 (C.52:27BB-54 et seq.).
Finally, this legislation would permit the use of up to one percent of the total amount appropriated for Special Municipal Aid, Supplemental Municipal Property Tax Relief Aid, Transitional Aid to Localities, or similar or successor programs for administrative costs associated with each program and the oversight of any municipalities under State supervision.