A4742

An Act concerning the Emergency Services Length of Service Award Program, supplementing and amending P.L.1997, c.388, and amending P.L.2011, c.167.

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

1. (New section) a. The director shall create a general statement, written in plain language, detailing the minimum requirements a municipality must establish for the provision of a length of service award to a volunteer member, set forth in section 6 of P.L.1997, c.388 (C.40A:14-188), and the limitation on contributions, set forth in section 7 of P.L.1997, c.388 (C.40A:14-189). The director shall post the statement on the Internet website of the Division of Local Government Services in the Department of Community Affairs in an easily printable format.

b. The governing body or board of fire commissioners of a sponsoring agency shall, as soon as practicable, prepare and distribute to each emergency service organization within its jurisdiction participating in a length of service award program, established in section 3 of P.L.1997, c.388 (C.40A:14-185), a copy of the ordinances or, in the case of a fire district or county, the resolutions concerning the length of service award program and a statement specifying the standards for determining eligibility. A sponsoring agency shall distribute the point schedule adopted by the sponsoring agency, pursuant to subsection b. of section 6 of P.L.1997, c.388 (C.40A:14-188), to every emergency service organization within its jurisdiction participating in a length of service award program to which the point schedule applies.

c. The director shall release a Local Finance Notice with suggestions to improve oversight of length of service award programs by sponsoring agencies and emergency service organizations. The director shall release, as he deems appropriate, Local Finance Notices providing recommendations to improve oversight of length of service award programs by sponsoring agencies and emergency service organizations. The governing body or board of fire commissioners of a sponsoring agency shall provide the Local Finance Notices released by the division to every emergency service organization within its jurisdiction participating in a length of service award program for their review.

2. Section 2 of P.L.1997, c.388 (C.40A:14-184) is amended to read as follows:

2. For the purposes of this act:

"Active volunteer member" means a person who has been so designated [by the governing board of a duly created emergency service organization] in accordance with ordinances adopted by the governing body of a municipality or, in the case of a fire district or county operating under a board of chosen freeholders, resolutions adopted by the board of fire commissioners or board of chosen freeholders, pursuant to subsection b. of section 6 of P.L.1997, c.388 (C.40A:14-188), and who is faithfully and actually performing volunteer service in that organization.

"Certification list" means a list prepared annually by an emergency service organization certifying to a governing body the names of members who have qualified to receive a length of service award.

"Director" means the Director of the Division of Local Government Services in the Department of Community Affairs.

"Emergency service organization" means a fire or first aid organization, whether organized as a volunteer fire company, volunteer fire department, fire district or duly incorporated volunteer first aid, emergency or volunteer ambulance or rescue squad association.

"Elected or appointed position" means a line officer, department or company officer, trustee of an emergency services organization, or a duly established position in a municipality as determined by the governing body of the municipality.

"Length of service award program" means a system established to provide tax-deferred income benefits to active volunteer members of an emergency service organization by means of investment in those products permitted pursuant to subsection a. of section 3 of P.L.1977, c.381 (C.43:15B-3).

"Local government unit" means any municipality, county, or fire district having control of, or which is serviced by, a volunteer fire department, duly incorporated fire or first aid company, or volunteer emergency, ambulance or rescue squad association or organization.

"Participant" means an active volunteer member who is eligible for a benefit under a service award program.

"Sponsoring agency" means any local government unit which duly adopts a length of service award program and specifies the standards for determining eligibility pursuant to the provisions of this act.

"Year of active emergency service" means a 12-month period during which an active volunteer member participates in the fire or first aid service and satisfies the minimum requirements of participation established by the sponsoring agency on a consistent and uniform basis.

(cf: P.L.1997, c.388, s.3)

3. Section 3 of P.L.1997, c.388 (C.40A:14-185) is amended to read as follows:

3. a. (1) A local government unit that is a county or municipality in which a fire district does not exist may by ordinance or resolution, as appropriate to the form of government, establish or terminate a length of service award program for the active volunteer members of the emergency service organizations operating under the county's or municipality's jurisdiction.

(2) (a) Whenever a local government unit that is a county or municipality in which a fire district does not exist establishes a length of service award program, the chief financial officer of the county or municipality shall review an audit, performed by a certified public accountant, registered municipal accountant, or certified governmental auditing professional, of each participating emergency service organization's personnel and financial records for the current year.

(b) An active volunteer member in an elected or appointed position in the emergency service organization shall review the audit, including all comments, recommendations, and corrective measures set forth in the audit, and shall certify, in writing, to the governing body of the county or municipality that the emergency service organization is maintaining, or is taking corrective action to ensure that it is maintaining, its personnel and financial records in accordance with P.L.1997, c.388 (C.40A:14-183 et al.) and any ordinances or resolutions adopted pursuant to that act.

(c) The governing body of the county or municipality shall post each audit received, pursuant to this subsection, on the Internet website of the municipality or county, or on the website of the Department of Community Affairs if the local unit does not maintain an Internet website.

(d) The chief financial officer of the municipality or county shall certify, in writing, that the chief financial officer reviewed the audit, including all comments, recommendations, and corrective measures set forth in the audit, and determined that the emergency service organization is maintaining, or is taking corrective action to ensure that it is maintaining, its personnel and financial records in accordance with P.L.1997, c.388 (C.40A:14-183 et al.) and any ordinances or resolutions adopted pursuant to that act. The governing body of the county or municipality shall post the certification on the Internet website of the municipality or county, or on the website of the Department of Community Affairs if the local unit does not maintain an Internet website.

b. (1) The board of fire commissioners of any fire district may by resolution establish or terminate a length of service award program for the active volunteer members of the emergency service organizations operating under the district's jurisdiction.

(2) (a) Whenever a fire district establishes a length of service award program, the board of fire commissioners of the fire district shall review an audit, performed by a certified public accountant, registered municipal accountant, or certified governmental auditing professional, of each participating emergency service organization's personnel and financial records for the current year.

(b) An active volunteer member in an elected or appointed position in the emergency service organization shall review the audit, including all comments, recommendations, and corrective measures set forth in the audit, and shall certify to the board of fire commissioners of the fire district that the emergency service organization is maintaining, or is taking corrective action to ensure that it is maintaining, its personnel and financial records in accordance with P.L.1997, c.388 (C.40A:14-183 et al.) and any ordinances or resolutions adopted pursuant to that act.

(c) The board of fire commissioners of the fire district shall post each audit received, pursuant to this subsection, on the fire district's Internet website and shall certify, in writing, that the board of fire commissioners of the fire district reviewed the audit, including all comments, recommendations, and corrective measures set forth in the audit, and determined that the emergency service organization is maintaining, or is taking corrective action to ensure that it is maintaining, its personnel and financial records in accordance with P.L.1997, c.388 (C.40A:14-183 et al.) and any ordinances or resolutions adopted pursuant to that act.

c. No such ordinance or resolution shall take effect until it is presented as a public question, for a municipality or county at the next general election, and for a fire district at the next annual election, and ratified by the voters. Each such ordinance or resolution shall be adopted by the governing body or the board of fire commissioners no less than 60 days prior to the election at which such question is presented for ratification.

d. In addition to any other procedures provided by law, every ordinance or resolution creating a length of service awards program shall include:

(1) A general description of the program;

(2) A statement of the proposed estimated total amount to be budgeted for the program;

(3) A statement of the proposed maximum annual contribution for an active volunteer member;

(4) If the proposed program authorizes the crediting of prior year service, a statement of the number of prior years of service available for crediting for each active volunteer member; and

(5) Any such other provisions as may be reasonably required by the director to carry out the purposes of this act.

e. No ordinance, resolution or public question related to a length of service award program shall require prior approval of the director.

f. Subsequent to the adoption of a length of service award program as provided in this section, the maximum annual contribution may be increased, from time to time, without public hearing or public question, provided such increased contribution does not exceed a number calculated by multiplying the original contribution as approved by public question by the consumer price index factor. As used in this section "consumer price index factor" means a fraction the denominator of which shall be the "Revised Consumers Price Index-All Items, Philadelphia Area (1967-100)" (the "CPI") published by the Bureau of Labor Statistics of the United States Department of Labor for the month in which the length of service award program passes public question and whose numerator shall be the CPI for the most recent month available at the time the increased contribution or benefit takes effect. If the publication of the CPI is discontinued, the director shall issue regulations pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), setting forth such revisions in the method of computation of the consumer price index factor as the circumstances require to carry out the purposes of this subsection. Except as otherwise provided in this act, all other material changes to a length of service award program subsequent to its adoption shall be effected without public question but by ordinance or by resolution subject to public hearing, as appropriate to the sponsoring agency.

g. Any amounts appropriated annually for a length of service award program shall be included in the budget of the local government unit as a separate line item. In the case of a fire district, the budget to be voted on at the time of the public question to establish a length of service award program shall include the first year's appropriation for funding such program, which appropriation, if the public question is defeated, shall be removed from the budget. In the case of a municipality or county, appropriations for length of service award programs shall commence with the budget immediately following enactment of such program.

h. No length of service award program shall be adopted by any local government unit other than pursuant to this act.

(cf: P.L.1997, c.388, s.3)

4. Section 6 of P.L.1997, c.388 (C.40A:14-188) is amended to read as follows:

6. No emergency service organization shall be required to provide a length of service award for its active volunteer members pursuant to the provisions of this act. Any length of service award provided to an active volunteer member shall be governed by the provisions of this act. No length of service award program shall be provided under the provisions of this act unless the following requirements are met:

a. An active volunteer member shall be eligible to participate in a length of service award program immediately upon the commencement of the active volunteer member's performance of active emergency services in any emergency service organization, and shall be eligible to vest in any length of service award program provided under the provisions of this act if the active volunteer member has completed at least five years of emergency service in any emergency service organization in the State

b. Under a length of service award program, a year of active emergency service commencing after the establishment of the program shall be credited for each calendar year in which an active volunteer member accumulates a number of points that are granted in accordance with a schedule adopted by the sponsoring agency through adoption of an ordinance or, in the case of a fire district or a county operating under a board of chosen freeholders, by a resolution. To provide credit for service under a length of service award program, each sponsoring agency shall review the membership rosters of the emergency service organizations subject to the program and, in accordance with the point schedule adopted by the sponsoring agency pursuant to this subsection, determine whether a participant is an active volunteer member entitled to credit. The program shall provide that points shall be granted for activities designated by the sponsoring agency, which activities may include the following:

(1) Training courses;

(2) Drills;

(3) Sleep-in or standby. A "standby" means line of duty activity of the volunteer fire company, lasting for four hours, not falling under one of the other categories;

(4) Completion of a one-year elected or appointed position in the organization;

(5) Election as a delegate to an emergency service convention;

(6) Attendance at official meetings of the sponsoring agency;

(7) Participation in emergency responses; or

(8) Miscellaneous activities including participation in inspections and other non-emergency fire, first aid or rescue activities not otherwise listed.

A sponsoring agency shall consult and collaborate with each emergency service organization participating in a length of service award program within the sponsoring agency's jurisdiction whenever the sponsoring agency credits active emergency service or adopts a point schedule pursuant to this subsection.

c. If provided for in the enabling ordinance or resolution adopted pursuant to section 3 of P.L.1997, c.388 (C.40A:14-185), a length of service award program may provide for the crediting of not more than 10 years of active emergency service periods prior to the establishment of such a program. Such credit may be granted to the active volunteer over as many years as deemed appropriate by the sponsoring agency, except that the total amount contributed in any one year shall not exceed the maximum amount allowed by law to be contributed by a sponsoring agency.

d. To provide credit for service prior to the establishment of the service award program, pursuant to subsection c. of this section, each sponsoring agency shall review the prior membership rosters of the emergency service organizations subject to the program to determine the number of years' credit for each participant who is entitled to credit. In making the analysis, the standards for active service set forth in subsection b. of this section and adopted by the sponsoring agency shall be used. The amount of the contribution provided to participants for past service may differ from the amount of the current contribution provided for under the plan. The definition of years of active emergency service shall be determined by the bylaws of the participating emergency service organization at the time service was earned. Approval for such prior service shall require certification by the duly designated persons, as determined and defined by the sponsoring agency of the participating emergency service organization. If an active volunteer member requests credit for service in more than one volunteer participating emergency service organization, each such emergency service organization shall provide a certification for the appropriate number of years. That credit may be awarded at the discretion of the sponsoring agency of the plan in which the volunteer member seeks to apply the credit. In no event, however, shall a participant be credited for the same year of active emergency service in more than one service award program.

e. (Deleted by amendment, P.L.2001, c.272).

f. An active volunteer member whose name does not appear on the approved certification list or who is denied credit for service prior to the establishment of the service award program may appeal within 30 days of posting of the list or within 30 days of denial of past service credit. The appeal shall be in writing and mailed to the clerk or secretary of the governing body of that local government unit, which shall investigate the appeal. The decision of a [participating emergency service organization] sponsoring agency shall be subject to appropriate judicial review.

(cf: P.L.2001, c.272, s.1)

5. Section 5 of P.L.2011, c.167 (C.40A:14-70.2) is amended to read as follows:

5. Any fire district established pursuant to N.J.S.40A:14-70 shall maintain either an Internet website or a webpage on the municipality's Internet website. The purpose of the website or webpage shall be to provide increased public access to the fire district's operations and activities. The following information, if applicable, shall be posted on the fire district's website or webpage:

a. a description of the fire district's mission and responsibilities;

b. the budget once adopted for the current and immediately prior fiscal years. Commencing with the fiscal year next following the effective date of P.L.2011, c.167 (C.4:24-20.1 et al.), the budgets of at least three consecutive fiscal years shall be available on the website or webpage;

c. the most recent Comprehensive Annual Financial Report or similar financial information;

d. the annual audit for the most recent and immediately prior fiscal years and any audit performed pursuant to paragraph (2) of subsection b. of section 3 of P.L.1997, c.388 (C.40A:14-185). Commencing with the fiscal year next following the effective date of P.L.2011, c.167 (C.4:24-20.1 et al.), the annual audits of at least three consecutive fiscal years shall be available on the website or webpage;

e. the fire district's rules, regulations, and official policy statements deemed relevant by the commissioners to the interests of the residents within the district;

f. notice, posted pursuant to the "Senator Byron M. Baer Open Public Meetings Act," P.L.1975, c.231 (C.10:4-6 et seq.), of a meeting of the board of fire commissioners, setting forth the time, date, location, and agenda of the meeting;

g. the minutes of each meeting of the board of fire commissioners including all resolutions of the commission and their committees for the current fiscal year. Commencing with the fiscal year next following the effective date of P.L.2011, c.167 (C.4:24-20.1 et al.), the approved minutes of meetings for at least three consecutive fiscal years shall be available on the website;

h. the name, mailing address, electronic mail address, if available, and phone number of every person who exercises day-to-day supervision or management over some or all of the operations of the fire district; and

i. a list of attorneys, advisors, consultants, and any other person, firm, business, partnership, corporation, or other organization which received any remuneration of $17,500 or more during the preceding fiscal year for any service whatsoever rendered to the fire district but shall not include volunteers receiving benefits under a length of service award program established pursuant to section 3 of P.L.1997, c.388 (C.40A:14-185).

(cf: P.L.2011, c.167, s.5)

6. This act shall take effect immediately.

STATEMENT

This bill is in response to an investigative report issued by the Office of the State Comptroller, dated June 30, 2015, concerning weaknesses in local oversight of the State's Emergency Services Volunteer Length of Service Award Program ("LOSAP"). LOSAP was designed to benefit active volunteer firefighters and first aid responders. Pursuant to the program, a local government unit may make deposits into tax-deferred investment accounts to benefit volunteer emergency personnel who provide emergency services in the local government unit. To be eligible for LOSAP contributions, a volunteer must be an active member, as defined by the bylaws of the emergency service organization for which he or she works, and must attain a minimum number of points by performing activities set forth by the local government unit served by the emergency service provider.

Under this bill, counties, municipalities, and fire districts would assume responsibility for determining whether volunteers are active members and therefore eligible to receive benefits under a LOSAP. Currently, individual emergency service organizations determine LOSAP eligibility with very little oversight. This bill would require eligibility criteria for receiving payment under a LOSAP to be set forth in an ordinance or, in the case of a fire district or county operating under a board of chosen freeholders, in a resolution. Counties, municipalities, and fire districts would be required to consult and collaborate with emergency service organizations when determining eligibility for receiving payment under a LOSAP.

A major criticism of LOSAP in the report issued by the Office of the State Comptroller was the lack of control that local units have over the way in which taxpayer money is distributed. Currently, emergency service organizations have wide latitude to distribute taxpayer funds without any significant oversight from the local units providing those funds. Under this bill, the local government unit providing the money for the program will have greater control over where that money goes, reducing the potential for abuse and mismanagement of public funds.

In addition, this bill would require the Division of Local Government Services in the Department of Community Affairs to periodically issue Local Finance Notices to local government units with recommendations on how to improve oversight of participating emergency service organizations. Moreover, this bill would require the Division of Local Government Services and to post a general statement, available online, setting forth the minimum requirements municipalities must adopt for the provision of a length of service award to a volunteer member.

Finally, this bill requires every local unit that establishes a LOSAP to review an audit, performed by a certified public accountant, certified governmental auditing professional, or a registered municipal accountant, of each emergency service organization's personnel and financial records for the current year, which certifies to the local unit that such records are being maintained in accordance with State and local laws. An active volunteer member in an elected or appointed position with the emergency service organization must review the audit and certify that the emergency service organization is maintaining, or is taking corrective action to ensure that it is maintaining, its personnel and financial records in accordance with State and local laws. Under current law, there is no requirement for local units to monitor the recordkeeping practices of emergency service organizations to ensure that the organizations are complying with the requirements of State and local laws. The local unit must post each audit it receives on its Internet website and must certify that the local unit reviewed and approved the audit. If the local unit does not maintain an Internet website, then the local unit must post its certification on the website of the Department of Community Affairs.