Sponsored by:
Senator SHIRLEY K. TURNER
District 15 (Hunterdon and Mercer)
SYNOPSIS
Mandates that certain personnel critical to certain State finance and revenue generating activities are essential employees during a declared State government shutdown due to failure to enact an annual appropriation act.
CURRENT VERSION OF TEXT
As introduced.
An Act mandating that certain personnel critical to preserve and protect the State’s financial assets, resources, and revenue generating operations that are licensed by the State are essential employees during certain declared State government emergencies, supplementing P.L.1942, c.251 (C.App. A:9-33 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Notwithstanding any provision of law, rule, regulation or order to the contrary, in the event of the failure of the Governor and the Legislature to enact a general appropriation law by the beginning of a State fiscal year, State employees of all departments, agencies and commissions responsible for critical activities necessary to preserve and protect the State’s financial assets, resources, and revenue generating operations that are licensed by the State shall be determined by the head of each department, agency and commission to be essential employees. Employees so designated shall report to work and perform such duties and responsibilities as the respective department, agency or commission head shall direct.
2. This act shall take effect immediately.
STATEMENT
This bill clarifies the authority of the Executive under the emergency management act to determine that personnel critical to preserving and protecting the State’s financial assets and resources, and State revenue generating activities that are licensed by the State are essential employees during an emergency that occurs when the State fails to meet its constitutional obligation to enact a State budget act for a fiscal year.
Although the State Constitution requires a balanced budget by July 1, the deadline has been missed just briefly four times in eight years. In each of these cases, the State never went past the morning of July 2 without an adopted budget. Without one, the State has no authority to spend money.
However, on one occasion, in 2006, with a budget impasse extending several days into the fiscal year, the Governor shut down many of the operations of State government. The Governor also ordered agency heads of certain State departments, agencies and commissions to order essential State personnel to work during the shutdown to ensure continued public health and safety, despite the understanding that the State would be unable to obligate funds for those essential services and functions. The order specifically noted that it did not toll or suspend the payment of any fees or taxes due and owing to the State.
This bill ensures that, in the event of a similar shutdown, State personnel that are critical to preserve and protect the State’s financial assets, resources, and revenue generating operations that are licensed by the State will continue to work. This will ensure that all tax liabilities that arise from State licensed activities will be appropriately collected and safeguarded. This bill will avoid uncertainties concerning the continued operation of such activities and ensure that State revenue collections essential to reestablishing the functioning of State government at the conclusion of any budget impasse will be fully functioning.