A2980

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

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

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

3. a. 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. 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 receive 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, which shall certify to the governing body of the county or municipality that such records are being maintained 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 each audit received, pursuant to this subsection, on the Internet website of the municipality or county and shall certify that the chief financial officer of the municipality or county reviewed the audit and determined that the emergency service organization 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.

b. 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. Whenever a fire district establishes a length of service award program, the board of fire commissioners of the fire district shall receive 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, which shall certify to the board of fire commissioners of the fire district that such records are being maintained 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 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 that the board of fire commissioners of the fire district reviewed the audit and determined that the emergency service organization 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)

2. Section 7 of P.L.1997, c.388 (C.40A:14-189) is amended to read as follows:

7. a. Each active volunteer member's service award shall be subject to contribution requirements set forth in this section. In determining whether contribution requirements have been satisfied, all benefits provided under all service award programs instituted by a sponsoring agency shall be considered as one program. A program adopted by a sponsoring agency shall set contributions within these requirements.

b. A program shall have minimum and maximum contribution requirements as follows: the minimum contribution for each participating active volunteer member shall be $100 per year of active emergency service; and the maximum contribution for each active volunteer member shall be $1,150 per year of active emergency service, subject, however, to periodic increases permitted pursuant to subsection f. of section 3 of P.L.1997, c.388 (C.40A:14-185). A sponsoring agency shall deposit all contributions made to a participant, pursuant to a length of service award program, into a single account, even if the participant receiving the contribution serves in more than one emergency service organization under the jurisdiction of the sponsoring agency.

c. If it is discovered that a sponsoring agency contributed an amount in excess of the limit set forth in subsection b. of this section to a volunteer member of an emergency service organization, then the sponsoring agency shall take action to recover the amount of the contribution paid in excess of the limit.

(1) If the sponsoring agency paid an amount in excess of the limit set forth in subsection b. of this section to an active volunteer member and the amount paid was less than five times the amount authorized in subsection b. of this section, then the sponsoring agency shall withhold future contributions under the length of service award program to that active volunteer member until the difference between the amount paid and the amount the sponsoring agency was authorized to pay is recovered. If an active volunteer member terminates his relationship with an emergency service organization prior to the sponsoring agency recovering the funds paid in excess of the limit, then the sponsoring agency shall proceed pursuant to paragraph (2) of this subsection.

(2) If a sponsoring agency paid an amount in excess of the limitation set forth in subsection b. of this section to an individual no longer serving as an active volunteer member or paid an amount five times the amount authorized or greater, then the sponsoring agency shall demand, in writing, that the individual return the amount paid in excess of the amount the sponsoring agency was authorized to pay. If the individual does not return the excess funds within 30 days of the demand, then the sponsoring agency shall initiate an action in Superior Court against the individual to recover the amount paid in excess of the amount the sponsoring agency was authorized to pay under subsection b. of this section.

(cf: P.L.1997, c.388, s.7)

3. 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, including any audit performed pursuant to 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)

4. 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, local units participating in LOSAP would have to seek the return of any contribution made in excess of the statutory limit on contributions. A local unit could recover contributions paid in excess of the statutory limit by garnishing future contributions or by initiating an action in Superior Court, after written notice, against individual who received a contribution in excess of the limit. In addition, this bill clarifies that local units should deposit all contributions due to volunteers into a single account, even if the volunteer serves in multiple emergency service organizations operating within the local unit.

Moreover, this bill requires every local unit that establishes a LOSAP to receive 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. 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.