A2739

An Act concerning the transfer of employees in joint meetings and shared service agreements and amending P.L.2007, c.63.

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

1. Section 11 of P.L.2007, c.63 (C.40A:65-11) is amended to read as follows:

11. a. When a local unit contracts, through a shared service or joint meeting, to have another local unit or a joint meeting provide a service it is currently providing using public employees and one or more of the local units have adopted Title 11A, Civil Service, then each of the [agreement] local units shall include an employment reconciliation plan to the Civil Service Commission in accordance with this section [that and, if one or more of the local units have adopted Title 11A, Civil Service], which shall specifically set forth the intended jurisdiction of the Civil Service Commission, and identify the local unit providing the service and the local unit receiving the service. [An employment reconciliation plan shall be subject to the following provisions:]

A layoff plan for a local unit that has adopted Title 11A, Civil Service, may be substituted for an employment reconciliation plan if it includes, at a minimum,

[(1)] a determination of those employees, if any, that shall be transferred to the providing local unit, retained by the recipient local unit, or terminated from employment for reasons of economy or efficiency[, subject to the provisions of any existing collective bargaining agreements within the local units].

[(2) any employee terminated for reasons of economy or efficiency by the local unit providing the service under the shared service agreement shall be given a terminal leave payment of not less than a period of one month for each five-year period of past service as an employee with the local unit, or other enhanced benefits that may be provided or negotiated. For the purposes of this paragraph, "terminal leave payment" means a single, lump sum payment, paid at termination, calculated using the regular base salary at the time of termination. Unless otherwise negotiated or provided by the employer, a terminal leave benefit shall not include extended payment, or payment for retroactive salary increases, bonuses, overtime, longevity, sick leave, accrued vacation or other time benefit, or any other benefit.]

[(3) the] b. The Civil Service Commission shall place any employee that has permanent status pursuant to Title 11A, Civil Service, of the New Jersey Statutes, and that is terminated for reasons of economy or efficiency at any time by either local unit on a special reemployment list for [any civil service employer within the county of the agreement or any political subdivision therein] the local unit from which the employee is terminated.

[(4) when a proposed shared service agreement affects employees in local units subject to Title 11A, Civil Service, of the New Jersey Statutes, an employment reconciliation plan shall be filed with the Civil Service Commission prior to the approval of the shared service agreement. The commission shall review it for consistency with this section within 45 days of receipt and it shall be deemed approved, subject to approval of the shared service agreement by the end of that time, unless the commission has responded with a denial or conditions that must be met in order for it to be approved.]

[(5) when] c. When an action is required of the Civil Service Commission by this section, parties to a planned shared service agreement may consult with that commission in advance of the action and the commission shall provide such technical support as may be necessary to assist in the preparation of an employment reconciliation plan or any other action required of the commission by this section.

[b.] d. If all the local units that are parties to the agreement are subject to the provisions of Title 11A, Civil Service, of the New Jersey Statutes, the Civil Service Commission shall create an implementation plan for the agreement that will: (1) transfer employees with current status in current title unless reclassified, or (2) reclassify employees into job titles that best reflect the work to be performed. The Civil Service Commission shall review whether any existing hiring or promotional lists should be merged, inactivated, or re-announced. [Non-transferred employees shall be removed or suspended only for good cause and after the opportunity for a hearing before the Civil Service Commission; provided, however, that they may be laid-off in accordance with the provisions of N.J.S.11A:8-1 et seq., and the regulations promulgated thereunder.] The final decision of which employees shall transfer to the new employer is vested solely with the local unit that will provide the service [and subject to the provisions of any existing collective bargaining agreements within the local units].

[c.] e. If the local unit that will provide the service pursuant to a shared service agreement is subject to Title 11A, Civil Service, of the New Jersey Statutes, but the local unit to receive the service is not subject to that Title, and the contracting local units desire that some or all employees of the recipient local unit are to be transferred to the providing local unit, the Civil Service Commission shall vest only those employees who have been employed for one year or more in permanent status pursuant to N.J.S.11A:9-9 in appropriate titles, seniority, and tenure with the providing local unit based on the duties of the position. The final decision of which employees shall transfer to the new employer is vested solely with the local unit that will provide the service [and subject to the provisions of any existing collective bargaining agreements within the local units]. Once transferred, employees shall be subject to all applicable collective bargaining agreements, employment contracts, and personnel policies that exist for the local unit that will provide the service.

[d.] f. If the local unit that will provide the service is not subject to the provisions of Title 11A, Civil Service, of the New Jersey Statutes, but the local unit that will receive the service is subject to that Title and the parties desire that some or all employees of the recipient local unit are to be transferred to the providing local unit, the transferred employees shall be granted tenure in office and shall only be removed or suspended for good cause and after a hearing; provided, however, that they may be laid-off [in accordance with the provisions of N.J.S.11A:8-1 et seq., and the regulations promulgated thereunder]. A permanent employee who is laid off for reasons of economy due to the joint meeting or shared service agreement shall be given notice at least 45 days prior to the layoff, and shall have a right to appeal the good faith of such layoff to the Civil Service Commission. Appeals must be filed within 20 days of final notice of such layoff. The transferred employees shall be subject to layoff procedures prior to the transfer to the new entity. Once transferred, they will be subject to any employment contracts and provisions that exist for the new entity. The final decision of which employees shall transfer to the new employer is vested solely with the local unit that will provide the service and subject to the provisions of any existing collective bargaining agreements within the local units.

(cf: P.L.2008, c.29, s.101)

2. Section 19 of P.L.2007, c.63 (C.40A:65-19) is amended to read as follows:

19. a. When a local unit agrees to participate in a joint meeting that will provide a service that the local unit is currently providing itself through public employees, [the agreement] the local unit shall [include] submit an employment reconciliation plan to the Civil Service Commission in accordance with this section, which shall specifically identify the contracting local unit and the joint meeting. [An employment reconciliation plan shall be subject to the following provisions] A layoff plan for a local unit that has adopted Title 11A, Civil Service, of the New Jersey Statutes, may be substituted for an employment reconciliation plan if it includes, at a minimum, the following requirements:

(1) a determination of those employees, if any, that shall be transferred to the joint meeting, retained by the contracting local unit, or terminated from employment for reasons of economy or efficiency [subject to the provisions of any collective bargaining agreements within the local units].

(2) [any employee terminated for reasons of economy or efficiency by the contracting local unit providing the service or by the joint meeting shall be given a terminal leave payment of not less than a period of one month for each five-year period of past service as an employee with the local unit, or other enhanced benefits that may be provided or negotiated. Unless otherwise negotiated or provided by the employer, a terminal leave benefit shall not include extended payment, or payment for retroactive salary increases, bonuses, overtime, longevity, sick leave, accrued vacation or other time benefit, or any other benefit] a statement of the intended jurisdiction of the Civil Service Commission pursuant to paragraph (2) of subsection f. of this section, if applicable.

[(4) when a proposed joint contract affects employees in local units that operate under the provisions of Title 11A, Civil Service, of the New Jersey Statutes, an employment reconciliation plan shall be filed with the Civil Service Commission prior to the approval of the joint meeting agreement. That commission shall review the plan for consistency with this section within 45 days of receipt and it shall be deemed approved, subject to approval of the joint meeting agreement by the end of that time, unless that commission has responded with a denial or conditions that must be met in order for it to be approved.]

[(5) when] c. When an action is required of the Civil Service Commission by this section, parties to a proposed joint contract may consult with the commission in advance of the action and the commission shall provide such technical support as may be necessary to assist in the preparation of an employment reconciliation plan or any other action required of the commission by this section.

[b.] d. If both the local unit and joint meeting operate under the provisions of Title 11A, Civil Service, of the New Jersey Statutes, the Civil Service Commission shall create an implementation plan for employees to be hired by the joint meeting that will: (1) transfer employees with current status in current title unless reclassified or (2) reclassify employees, if necessary, into job titles that best reflect the work to be performed. The Civil Service Commission shall review whether any existing hiring or promotional lists should be merged, inactivated, or re-announced. [Non-transferred employees shall be removed or suspended only for good cause and after the opportunity for a hearing before the Civil Service Commission; provided, however, that they may be laid-off in accordance with the provisions of N.J.S.11A:8-1 et seq., and the regulations promulgated thereunder.] The final decision of which employees shall transfer to the new employer is vested solely with the local unit that will provide the service [and subject to the provisions of any existing collective bargaining agreements within the local units].

[c.] e. If the joint meeting operates under the provisions of Title 11A, Civil Service, of the New Jersey Statutes, and a local unit receiving the service is not subject to that Title, and the parties desire that some or all employees of the local unit be transferred to the joint meeting, the Civil Service Commission shall vest only those employees who have been employed one year or more in permanent status pursuant to N.J.S.40A:9-9 in appropriate titles, seniority, and tenure with the providing local unit based on the duties of the position. Once transferred, employees shall be subject to all applicable collective bargaining agreements, employment contracts, and personnel policies that exist for the joint meeting. The final decision of which employees shall transfer to the new employer is vested solely with the joint meeting [and subject to the agreements affecting the parties, provided that those agreements do not conflict with the provisions of any existing collective bargaining agreements within the local units].

[d.] f. (1) If the joint meeting does not operate under the provisions of Title 11A, Civil Service, of the New Jersey Statutes, and the local unit receiving the service is subject to that Title, and the parties desire that some or all employees of the recipient local unit are to be transferred to the joint meeting, then the transferred employees shall be granted tenure in office and shall be removed or suspended only for good cause and after a hearing. The transferred employees shall be subject to layoff procedures prior to the transfer to the new entity. Once transferred, they will be subject to any applicable collective bargaining agreements, employment contracts, and [provisions] personnel policies that exist for the new entity. The final decision of which employees shall transfer to the joint meeting is vested solely with the joint meeting [and subject to the provisions of any existing collective bargaining agreements within the local units].

(2) A joint meeting established after the effective date of sections 1 to 37 of P.L.2007, c.63 (C.40A:65-1 et al.) that affects both employees in local units subject to Title 11A, Civil Service, of the New Jersey Statutes and employees in local units not subject to that Title, shall determine whether the employees of the joint meeting shall be subject to the Title. If the joint meeting determines that the employees shall not be subject to Title 11A, Civil Service, of the New Jersey Statutes, then the employees from the local units in which the Title is in effect shall have the same rights as employees transferred pursuant to paragraph (1) of this subsection.

(cf: P.L.2008, c.29, s.102)

3. This act shall take effect immediately.

STATEMENT

This bill amends sections 11 and 19 of the "Uniform Shared Services and Consolidation Act," N.J.S.A.40A:65-11 and N.J.S.A.40A:65-19, concerning the establishment of an employment reconciliation plan when a local unit agrees to participate in a joint meeting or shared service agreement that will provide a service that the local unit is currently providing itself through public employees. The bill would permit a local unit that has adopted Title 11A, Civil Service, to substitute a layoff plan for the employee reconciliation plan under certain circumstances.

This bill is part of the Governor’s toolkit for local units, and is intended to reduce the hurdles standing in the path of shared service agreements and joint meetings.