S43

An Act concerning certain mandates imposed on public school districts and amending, supplementing and repealing various sections of the New Jersey Statutes.

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

1. N.J.S.18A:2-2 is amended to read as follows:

18A:2-2. In every case of conviction or violation of any provision of this title, when a fine is imposed, the defendant may pay the fine, together with the cost to the officer before whom the conviction is had, and [such] the officer shall receive the [same] fine, and unless otherwise provided by this or any other law [he], shall remit the amount of the fine within 10 days thereafter to the [custodian of school moneys] secretary of the district where the offense was committed, for the use of the public schools thereof.

(cf: N.J.S.18A:2-2)

2. N.J.S.18A:6-50 is amended to read as follows:

18A:6-50. For the purpose of defraying the necessary expenses of the association, the various district boards shall pay the necessary expenses incurred by its delegates, and shall appropriate annually such sums for dues as may be assessed by the association at any delegates meeting. The assessment of dues shall be made upon a graduated scale and shall be made only upon two-thirds vote of the delegates present at [such] the delegates meeting, after notice of the taking of [such] the vote shall have been given to each district board in writing at least 60 days before [such] the delegates meeting. However, the dues assessed any board of education shall not be increased for any year by more than 33 1/3% of the dues assessed that board during the preceding year. Dues shall be payable by the [custodian of school moneys] secretary of the school district to the treasurer of the association.

(cf: P.L.1973, c.120, s.1)

3. N.J.S.18A:13-13 is amended to read as follows:

18A:13-13. The board shall appoint a secretary who may or may not be a member of the board, for the term of one year beginning on July 1 following [his] the appointment, but [he] the secretary shall continue to serve after the [expiration of his] term expires until [his] a successor is appointed and qualified. The secretary shall give bond in an amount and with such surety as the board shall direct. The board shall be guided in its determination of the amount
of coverage necessary by a schedule of minimum limits promulgated by the State Board of Education.

(cf: N.J.S.18A:13-13)

4. N.J.S.18A:13-50 is amended to read as follows:

18A:13-50. Upon the dissolution of any local district the officer having custody of the funds of [such] the district shall deliver all of the funds of the dissolved district [in his possession] to the secretary of the successor regional district who shall give [his] a receipt therefor [and shall immediately turn the same over to the custodian of school moneys of the regional district].

All personal property, books, papers, vouchers and other documents belonging to any district, being dissolved, shall be transferred to the secretary of [said] the regional district who shall cause a complete inventory to be made on all assets, real and personal, received by the regional school district. Upon and after the date of dissolution of the district all proceeds of taxes of any nature raised or to be levied for use or benefit of each dissolving school district and rights and claims with respect thereto, and all the property, funds, moneys and assets of each dissolving district shall vest in the regional district and the regional district shall be subject to all the contracts, debts and other obligations of each dissolving district. Upon [said] that date all bonds and notes, of each dissolving district, theretofore issued and outstanding and all bonds and notes theretofore issued and outstanding of any municipality constituting or comprised within any dissolving district which were issued for the purpose of acquiring property which is vesting on [said] that date in the regional district shall be and shall constitute obligations of and payable as to both principal and interest by the regional district, and, unless otherwise required or provided for by law, in the same manner and to the same extent as if [such] the bonds and notes had been issued by the board of the regional district. The regional board shall cause an audit and settlement of all accounts of officers of the former district or districts to be made forthwith. The official bonds of [such] the officers shall be continued in full force and effect until the completion of [such] the audit and satisfactory financial settlement of [said] the accounts shall have been made.

(cf: P.L.1971, c.377, s.1)

5. N.J.S.18A:16-1 is amended to read as follows:

18A:16-1. Each board of education, subject to the provisions of this title and of any other law, shall employ and may dismiss a secretary or a school business administrator to act as secretary and may employ and dismiss a superintendent of schools, [a treasurer of school moneys, when and as provided by section 18A:13-14 or 18A:17-31,] and such principals, teachers, janitors and other officers and employees, as it shall determine, and fix and alter their compensation and the length of their terms of employment.

(cf: P.L.1981, c.174, s.2)

6. N.J.S.18A:17-6 is amended to read as follows:

18A:17-6. The secretary shall, before entering upon the duties of his office, give bond to the board[, not less than $2,000.00, in an amount and with surety to be approved by the board, conditioned for the faithful performance of the duties of his office] in an amount and with such surety as the board shall direct. If the secretary is an officer of the municipality constituting the district, and the bond given by the officer for the faithful performance of the municipal duties covers and secures the faithful performance of the duties as secretary, and a certificate of coverage with sufficient amounts of coverage for both the municipal and board position is certified to the board, the secretary shall not be required to give additional bond. The board shall be guided in its determination of the amount of coverage necessary by a schedule of minimum limits promulgated by the State Board of Education. The board may accept as surety a corporation authorized to be surety under the laws of this [state] State and may pay the annual premiums or fee upon said bond as a current expense of the board.

(cf: N.J.S.18A:17-6)

7. N.J.S.18A:17-8 is amended to read as follows:

18A:17-8. The secretary shall be the general accountant of the board and [he] shall:

a. Collect and deposit tuition fees and other moneys due to the board [not payable directly to the custodian of school moneys of the district and transmit the same to such custodian];

b. Examine and audit all accounts and demands against the board and present the same to the board for its approval in open meeting, and when payment thereof shall be ordered by the board, [he] the secretary shall indicate the board's approval upon the same in writing with the president of the board and present the same [to the district comptroller, or to the custodian of school moneys of the district] for payment pursuant to N.J.S.18A:19-1; and

c. Keep and maintain such accounts of the financial transactions of the district as shall be prescribed by the [state] State board in accordance with the uniform system of bookkeeping presented by the [state] State board, including a correct detailed account of all the expenditures of school moneys in the district.

(cf: N.J.S.18A:17-8)

8. N.J.S.18A:17-9 is amended to read as follows:

18A:17-9. The secretary shall:

a. Report to the board, at each regular meeting, but not [oftener] more often than once each month, the amount of total appropriations and the cash receipts for each account, [and] the amount for which warrants have been drawn against each account [and], the amounts of orders or contractual obligations incurred and chargeable against each account year to date and since the date of [his] the last report, the cash and appropriation balances for each account and fund, and the reconciled bank account balances in the manner and form prescribed by the commissioner. The chief school administrator or board designee other than the secretary shall prepare the monthly reconciliation of bank account statements, and in conjunction with the secretary, take any steps necessary to bring the cash record balance and reconciled bank balance into agreement prior to completion of the secretary's monthly report;

b. Keep and maintain [in his office] all contracts, records and documents belonging to the board [, except such as shall be kept by the treasurer of school moneys pursuant to law,] under such conditions as the board shall prescribe;

c. Perform any other duties prescribed by law.

(cf: P.L.1981, c.174, s.3)

9. Section 1 of P.L.1982, c.163 (C.18A:17-46) is amended to read as follows:

1. Any school employee observing or having direct knowledge from a participant or victim of an act of violence shall, in accordance with standards established by the commissioner, file a report describing the incident to the school principal in a manner prescribed by the commissioner, and copy of same shall be forwarded to the district superintendent.

The principal shall notify the district superintendent of schools of the action taken regarding the incident. Annually, at a public hearing [in October], the superintendent of schools shall report to the board of education all acts of violence and vandalism which occurred during the previous school year. [The proceedings of the public hearing shall be transcribed and kept on file by the board of education, which shall make the transcript available to the public.] Verification of the annual report on violence and vandalism shall be part of the State's monitoring of the school district, and the State Board of Education shall adopt regulations that impose a penalty on a school employee who knowingly falsifies the report. A board of education shall provide ongoing staff training, in cooperation with the Department of Education, in fulfilling the reporting requirements pursuant to this section. The majority representative of the school employees shall have access monthly to the number and disposition of all reported acts of school violence and vandalism.

[The board of education shall file the transcript of the public hearing with the Division of Student Services in the Department of Education by November 1. The division shall review the transcript to ensure compliance with this section of law. The costs of staff training and transcribing the public hearing and printing the transcript shall be paid by the Department of Education.]

(cf: P.L.2001, c.299)

10. N.J.S.18A:18A-5 is amended to read as follows:

18A:18A-5. Exceptions to requirement for advertising. Any contract, the amount of which exceeds the bid threshold, shall be negotiated and awarded by the board of education by resolution at a public meeting without public advertising for bids and bidding therefor if

a. The subject matter thereof consists of:

(1) Professional services. The board of education shall in each instance state supporting reasons for its action in the resolution awarding each contract and shall forthwith cause to be printed once, in an official newspaper, a brief notice stating the nature, duration, service and amount of the contract, and that the resolution and contract are on file and available for public inspection in the office of the board of education;

(2) Extraordinary unspecifiable services which cannot reasonably be described by written specifications. The application of this exception as to extraordinary unspecifiable services shall be construed narrowly in favor of open competitive bidding where possible and the Director of the Division of Local Government Services in the Department of Community Affairs is authorized to establish rules and regulations after consultation with the Commissioner of Education limiting its use in accordance with the intention herein expressed; and the board of education shall in each instance state supporting reasons for its action in the resolution awarding the contract for extraordinary unspecifiable services and shall forthwith cause to be printed, in the manner set forth in paragraph (1) of this subsection, a brief notice of the award of such contract;

(3) The doing of any work by employees of the board of education;

(4) The printing of all legal notices; and legal briefs, records and appendices to be used in any legal proceeding in which the board of education may be a party;

(5) Library and educational goods and services;

(6) Food supplies, including food supplies for home economics classes, when purchased pursuant to rules and regulations of the State board and in accordance with the provisions of N.J.S.18A:18A-6;

(7) The supplying of any product or the rendering of any service by a public utility, which is subject to the jurisdiction of the Board of Public Utilities, in accordance with the tariffs and schedules of charges made, charged and exacted, filed with said board;

(8) The printing of bonds and documents necessary to the issuance and sale thereof by a board of education;

(9) Equipment repair service if in the nature of an extraordinary unspecifiable service and necessary parts furnished in connection with such services, which exception shall be in accordance with the requirements for extraordinary unspecifiable services;

(10) Insurance, including the purchase of insurance coverage and consultant services, which exception shall be in accordance with the requirements for extraordinary unspecifiable services;

(11) Publishing of legal notices in newspapers as required by law;

(12) The acquisition of artifacts or other items of unique intrinsic, artistic or historic character;

(13) Those goods and services necessary or required to prepare and conduct an election;

(14) (Deleted by amendment, P.L.1999,c.440.)

(15) (Deleted by amendment, P.L.1999, c.270).

(16) (Deleted by amendment, P.L.1999,c.440.)

(17) The doing of any work by persons with disabilities employed by a sheltered workshop;

(18) Expenses for travel and conferences;

(19) The provision or performance of goods or services for the support or maintenance of proprietary computer hardware and software, except that this provision shall not be utilized to acquire or upgrade non-proprietary hardware or acquire or update non-proprietary software;

(20) Purchases of goods and services at rates set by the Universal Service Fund administered by the Federal Communications Commission;

(21) Goods and services paid with funds that: are raised by or collected from students to support the purchase of student oriented items or materials, such as yearbooks, class rings, and a class gift; and are deposited in school or student activity accounts; and require no budget appropriation from the board of education;

(22) Food services provided by food service management companies pursuant to procedures established by the New Jersey Department of Agriculture, Bureau of Child Nutrition Programs;

(23) Vending machines providing food or drink.

b. It is to be made or entered into with the United States of America, the State of New Jersey, county or municipality or any board, body, officer, agency, authority or board of education or any other state or subdivision thereof.

c. Bids have been advertised pursuant to N.J.S.18A:18A-4 on two occasions and (1) no bids have been received on both occasions in response to the advertisement, or (2) the board of education has rejected such bids on two occasions because it has determined that they are not reasonable as to price, on the basis of cost estimates prepared for or by the board of education prior to the advertising therefor, or have not been independently arrived at in open competition, or (3) on one occasion no bids were received pursuant to (1) and on one occasion all bids were rejected pursuant to (2), in whatever sequence; any such contract may then be negotiated and may be awarded upon adoption of a resolution by a two-thirds affirmative vote of the authorized membership of the board of education authorizing such a contract; provided, however, that:

(a) A reasonable effort is first made by the board of education to determine that the same or equivalent goods or services, at a cost which is lower than the negotiated price, are not available from an agency or authority of the United States, the State of New Jersey or of the county in which the board of education is located, or any municipality in close proximity to the board of education;

(b) The terms, conditions, restrictions and specifications set forth in the negotiated contract are not substantially different from those which were the subject of competitive bidding pursuant to N.J.S.18A:18A-4; and

(c) Any minor amendment or modification of any of the terms, conditions, restrictions and specifications which were the subject of competitive bidding pursuant to N.J.S.18A:18A-4 shall be stated in the resolution awarding the contract; provided further, however, that if on the second occasion the bids received are rejected as unreasonable as to price, the board of education shall notify each responsible bidder submitting bids on the second occasion of its intention to negotiate, and afford each bidder a reasonable opportunity to negotiate, but the board of education shall not award such contract unless the negotiated price is lower than the lowest rejected bid price submitted on the second occasion by a responsible bidder, is the lowest negotiated price offered by any responsible vendor, and is a reasonable price for such goods or services.

d. Whenever a board of education shall determine that a bid was not arrived at independently in open competition pursuant to subsection c.(2) of N.J.S.18A:18A-5, it shall thereupon notify the county prosecutor of the county in which the board of education is located and the Attorney General of the facts upon which its determination is based, and when appropriate, it may institute appropriate proceedings in any State or federal court of competent jurisdiction for a violation of any State or federal antitrust law or laws relating to the unlawful restraint of trade.

e. The board of education has solicited and received at least three quotations on materials, supplies or equipment for which a State contract has been issued pursuant to N.J.S.18A:18A-10, and the lowest responsible quotation is at least 10% less than the price the board would be charged for the identical materials, supplies or equipment, in the same quantities, under the State contract. Any such contract or agreement entered into pursuant to subsection d. or subsection e. may be made, negotiated or awarded only upon adoption of a resolution by the affirmative vote of two-thirds of the full membership of the board of education at a meeting thereof authorizing such a contract or agreement. [A copy of the purchase order relating to any such contract, the requisition for purchase order, if applicable, and documentation identifying the price of the materials, supplies or equipment under the State contract and the State contract number shall be filed with the Director of the Division of Local Government Services in the Department of Community Affairs within five working days of the award of any such contract by the board of education. The director shall notify the board of education of receipt of the material and shall make the material available to the State Treasurer.] The purchase order relating to any such contract shall include a notation that the material, supplies, or equipment was purchased at least 10% below the State contract price. The board of education shall make available to the [director] Director of the Division of Local Government Services in the Department of Community Affairs, upon request, any [other] documents relating to the solicitation and award of the contract, including, but not limited to, quotations, requests for quotations, and resolutions.

(cf: P.L.1999, c.440, s.53)

11. N.J.S.18A: 19-1 is amended to read as follows:

18A:19-1. The money or funds of the board in the custody of the [treasurer of school moneys] secretary shall be expended [by such treasurer by, and] only by[,] warrants, each made payable to the order of the person entitled to receive the amount thereof and specifying the object for which is issued, signed by the president and secretary of the board and by [such treasurer of school moneys] the chief school administrator or board designee other than the secretary,

(a) After audit of the account or demand to be paid, by the secretary, and after approval by the board, or

(b) In accordance with payrolls duly certified as provided by this title, or

(d) When provided by resolution of the board, after audit of the account or demand to be paid, and approval by a person designated by the board.

(cf: P.L.1982, c.196, s.1)

12. N.J.S.18A:19-2 is amended to read as follows:

18A:19-2. No claim or demand against a school district shall be paid by the [treasurer] secretary unless it is authorized by law and the rules of the board of education of the district, is fully itemized and verified, has been duly audited as required by law, has been presented to, and approved by, the board at a meeting thereof, or presented to, and approved by, a person designated by the board for that purpose, and the amount required to pay the same is available for [said] that purpose.

(cf: P.L.1982, c.196, s.2)

13. N.J.S.18A:19-3 is amended to read as follows:

18A:19-3. All claims and demands, [exceeding $150.00 in amount] that equal or exceed 15% of the bid threshold amount established pursuant to N.J.S.18A:18A-3, except for payrolls and debt service, shall be verified by affidavit, or by a signed declaration in writing, contained therein or annexed thereto, to the effect that the same are correct in all particulars, that the articles have been furnished or the services rendered as stated therein and that no bonus has been given or received on account thereof.

(cf: P.L.1991, c.37, s.1)

14. N.J.S.18A:19-4 is amended to read as follows:

18A:19-4. All claims and demands against the board, except such as are to be paid from funds derived from athletic events or other activities of pupil organizations, shall, unless otherwise provided by resolution of the board, be examined, audited and certified in writing by the secretary and presented [by him] to the board for its approval at a regularly called meeting, and if found to be correct, shall be ordered paid by the board, whereupon the secretary [and], the president of the board, and the chief school administrator or board designee other than the secretary shall issue and sign a warrant in payment therefor. [The secretary thereupon shall forward such warrant to the treasurer of school moneys of the district.]

(cf: P.L.1982, c.196, s.3)

15. N.J.S.18A:19-9 is amended to read as follows:

18A:19-9. Payment of the compensation of teachers and other employees may be made on the basis of payrolls certified by the president [and], secretary of the board, and the chief school administrator, stating the names and amounts to be paid to each [, and delivered to the treasurer of school moneys with a warrant made to his order for the full amount of each payroll].

(cf: P.L.1981, c.174, s.13)

16. N.J.S.18A:19-10 is amended to read as follows:

18A:19-10. The [treasurer] secretary shall, pursuant to N.J.S.18A:19-1, deposit the warrants in [a] separate bank [account] accounts as a net payroll account and [payment] agency account for payroll deductions and associated board contributions. Payment shall be made to the teachers and others entitled thereto by individual checks drawn to their respective orders upon [such] the payroll account and signed by the secretary and a board designee.

(cf: P.L.1981, c.174, s.14)

17. N.J.S.18A:19-12 is amended to read as follows:

18A:19-12. When a warrant for the payment of current expenses of a public school is drawn and issued and there are no funds for payment of the [same] expenses, the warrant shall bear legal interest until such time as the [treasurer] secretary gives public notice of the fact that funds are provided for the payment thereof.

(cf: P.L.1981, c.174, s.16)

18. N.J.S.18A:22-23 is amended to read as follows:

18A:22-23. Upon receipt of the certificate, the governing body of the municipality shall immediately appropriate the sum or sums for the purpose or purposes and shall raise [such] the sum or sums in the manner provided by law for the raising of [such] the funds by the municipality in emergencies, and the raising of the funds required by [such] the certificate, in such a case, shall be considered an emergency. Upon raising the funds, the governing body shall cause the sum or sums to be paid [forthwith] immediately to the [custodian of school moneys] secretary of the district for [such] the purpose or purposes.

(cf: N.J.S.18A:22-23)

19. N.J.S. 18A:22-26 is amended to read as follows:

18A:22-26. At or after the public hearing but not later than April 8, the board of school estimate of a type II district having a board of school estimate shall fix and determine by a recorded roll call majority vote of its full membership the amount of money necessary to be appropriated for the use of the public schools in the district for the ensuing school year, exclusive of the amount which shall be apportioned to it by the commissioner for the year pursuant to the provisions of section 5 of P.L.1996, c.138 (C.18A:7F-5) and shall make a certificate of the amount signed by at least a majority of all members of the board, which shall be delivered to the board of education and a copy thereof, certified under oath to be correct and true by the secretary of the board of school estimate, shall be delivered to the county board of taxation on or before April 15 in each year and a duplicate of the certificate shall be delivered to the board or governing body of each of the municipalities within the territorial limits of the district having the power to make appropriations of money raised by taxation in the municipalities or political subdivisions and to the county superintendent of schools and the amount shall be assessed, levied and raised under the procedure and in the manner provided by law for the levying and raising of special school taxes voted to be raised at an annual or special election of the legal voters in type II districts and shall be paid to the [treasurer of school moneys] secretary of the district for such purposes.

Within 15 days after receiving the certificate the board of education shall notify the board of school estimate, the governing body of each municipality within the territorial limits of the school district, and the commissioner if it intends to appeal to the commissioner the board of school estimate's determination as to the amount of money requested pursuant to the provisions of section 5 of P.L.1996, c.138 (C.18A:7F-5), necessary to be appropriated for the use of the public schools of the district for the ensuing school year.

(cf: P.L.1996, c.138, s.56)

20. N.J.S.18A:22-44 is amended to read as follows;

18A:22-44. The amounts so raised, levied and collected shall be paid to the [custodian of school moneys for] secretary of the district as other school moneys are paid and shall be used to pay the principal and interest due upon any notes which may have been issued in anticipation thereof as they severally mature and for the purposes so authorized.

(cf: N.J.S.18A:22-44)

21. N.J.S.18A:24-47 is amended to read as follows:

18A:24-47. The proceeds of any bonds authorized and issued under this chapter shall be paid to the [custodian of school moneys] secretary of the district, who shall, in no event, disburse them except to pay the expenses of issuing and selling the bonds and for the purpose or purposes for which the bonds were issued and for temporary investment as and in the manner prescribed by law, pending the carrying out of the purpose or purposes for which the bonds were issued and for such other purpose or purposes as are prescribed in this article.

(cf: N.J.S.18A:24-47)

22. N.J.S.18A:24-59 is amended to read as follows:

18A:24-59. All moneys received for payment of principal and interest of obligations of a type II school district payable in any year shall be paid to the [treasurer of school moneys] secretary of the district, who shall deposit them in such bank as shall be determined by resolution by the board, in order to provide for the payment thereof.

(cf: P.L.1981, c.174, s.17)

23. Section 1 of P.L.1995, c.125 (C.18A:27-4.1) is amended to read as follows:

1. Notwithstanding the provisions of any law, rule or regulation to the contrary,

a. A board of education shall appoint, transfer or remove a certificated or non-certificated officer or employee only upon the recommendation of the chief school administrator and by a recorded roll call majority vote of the full membership of the board. The board shall not withhold its approval for arbitrary and capricious reasons.

b. A board of education shall renew the employment contract of a certificated or non-certificated officer or employee only upon the recommendation of the chief school administrator and by a recorded roll call majority vote of the full membership of the board. The board shall not withhold its approval for arbitrary and capricious reasons. A nontenured officer or employee who is not recommended for renewal by the chief school administrator shall be deemed nonrenewed. Prior to notifying the officer or employee of the nonrenewal, the chief school administrator shall notify the board of the recommendation not to renew the officer's or employee's contract and the reasons for the recommendation. An officer or employee whose employment contract is not renewed shall have the right to a written statement of reasons for nonrenewal pursuant to section 2 of P.L.1975, c.132 (C.18A:27-3.2) and to an informal appearance before the board. The purpose of the appearance shall be to permit the staff member to convince the members of the board to offer reemployment. The chief school administrator shall notify the officer or employee of the nonrenewal pursuant, where applicable, to the provisions of section 1 of P.L.1971, c.436 (C.18A:27-10).

c. The provisions of this section shall not apply to the appointment, transfer, removal, renewal or nonrenewal of a person who is [a treasurer of school moneys,] an election officer, board auditor, board attorney or board secretary, except a board secretary who performs business administration functions.

(cf: P.L.1995, c.125, s.1)

24. N.J.S.18A:29-4 is amended to read as follows:

18A:29-4. The commissioner shall direct the [custodian of school moneys] secretary to withhold the salary of any teaching staff member of the district who shall neglect or refuse to perform any duty imposed upon [him] the member by law or by the rules of the [state] State board until the receipt of notice from the commissioner that [such teacher] the member has performed the duty.

(cf: N.J.S.18A:29-4)

25. N.J.S.18A:33-2 is amended to read as follows:

18A:33-2. When any school district shall fail to provide [such] the facilities and courses of study, the county superintendent shall, by order in writing, approved in writing by the commissioner and transmitted to the [custodian of school moneys] secretary of the district, direct [such custodian] the secretary to withhold further payments, for the account of the district, of any moneys [theretofore and thereafter] received from [state] State aid until [such] the suitable facilities and courses of study shall be provided[, which]. The order shall be effective upon the date stated [by the commissioner] in [his] the commissioner's written approval [thereof] of the order. The county superintendent shall immediately notify the board of education of the district of [his action] the order along with the reasons [therefor forthwith] for it.

(cf: N.J.S.18A:33-2)

26. Section 2 of P.L.2001, c.298 (C.18A:36-5.1) is amended to read as follows:

2. The week beginning with the third Monday in October of each year is designated as "School Violence Awareness Week" in the State of New Jersey. School districts shall observe this week by organizing activities to prevent school violence including, but not limited to, age-appropriate opportunities for student discussion on conflict resolution, issues of student diversity, and tolerance. Law enforcement personnel shall be invited to join members of the teaching staff in the discussions. Programs shall also be provided for school board employees that are designed to help them recognize warning signs of school violence and to instruct them on recommended conduct during an incident of school violence. [The public hearing on violence and vandalism, required pursuant to section 1 of P.L.1982, c.163 (C.18A:17-46) as amended by P.L.2001, c.299, shall be held during this week.] The Department of Education shall provide guidelines and information to boards of education for use in planning the activities in observance of the week and such funds as are necessary to pay the costs of the required activities and programs.

(cf: P.L.2001, c.298, s.2)

27. N.J.S.18A:38-19 is amended to read as follows:

18A:38-19. a. Whenever the pupils of any school district are attending public school in another district, within or without the State, pursuant to this article, the board of education of the receiving district shall determine a tuition rate to be paid by the board of education of the sending district to an amount not in excess of the actual cost per pupil as determined under rules prescribed by the commissioner and approved by the State board, and [such] the tuition shall be paid by the [custodian of school moneys] secretary of the sending district out of any moneys [in his hands] available for current expenses of the district upon order issued by the board of education of the sending district, signed by its president and secretary, in favor of the [custodian of school moneys] secretary of the receiving district.

b. Notwithstanding the provisions of subsection a. of this section, whenever the pupils of any school district are attending public school in an Abbott district as defined pursuant to section 3 of P.L.1996, c.138 (C.18A:7F-3), any expenditures associated with amounts appropriated to the Abbott district as Abbott v. Burke parity remedy aid or additional Abbott v. Burke State aid shall not be included in the actual cost per pupil for the calculation of the tuition to be paid by the sending district.

(cf: P.L.2001, c.285, s.1)

28. N.J.S.18A:39-1.2 is amended to read as follows:

18A:39-1.2. Whenever the governing body of a municipality finds that for safety reasons it is desirable to provide transportation to and from a school for pupils living within the municipality, other than those living remote from the school or those physically handicapped or mentally retarded, the governing body and the board of education of the district are authorized to enter into a contract pursuant to the "Interlocal Services Act," P.L.1973, c.208 (C.40:8A-1 et seq.), under the terms of which the board shall provide [such] the transportation. Any funds required to be paid by the municipality to the board of education under such a contract shall be appropriated by the governing body and paid to the [custodian of school moneys] secretary of the district. The governing body of the municipality may charge the parents or guardians of children who are transported for safety reasons in order to help defray expenses, provided that no charge shall be imposed on the parent or guardian of any child who meets the Statewide eligibility standards established by the State Board of Education for free and reduced price meals under the State school lunch program. The amount of any charges and the method of collection shall be specified in the contract between the municipal governing body and the board of education. Nothing in this section shall prevent a board of education from providing transportation at its own expense.

(cf: P.L.1995, c.271, s.1)

29. N.J.S.18A:47-5 is amended to read as follows:

18A:47-5. Children who are dependent and delinquent, or who are habitually truant or incorrigible, or who shall be found by the court to require special instruction, and who reside in a school district in which there is no such special school of instruction may be committed to such a special school of instruction maintained in another district. The board of education of the receiving district shall be entitled to collect and receive from the board of education of the sending district such sum for the tuition and maintenance of [such] the children as the boards shall agree to, but not in excess of the actual cost per pupil as determined according to rules of the commissioner approved by the [state] State board. The board of education of the sending district shall issue an order, payable from any funds available for current expenses, for [such] the sum in favor of the [custodian of school moneys] secretary of the school district maintaining the school to which the child shall have been committed.

(cf: N.J.S.18A:47-5)

30. N.J.S.18A:49-3 is amended to read as follows:

18A:49-3. When in any school district there shall have been raised for such purposes, by appropriation and taxation, or by subscription, or both, a sum which in the judgment of the [state] State board shall be sufficient for the maintenance in the district of such an evening school or schools, wherein the course of study or any changes therein shall have been approved by the [state] State board, there shall be paid to the [custodian of school moneys] secretary of the district toward the maintenance of [such] the evening school or schools, on the order of the commissioner, an amount equal to that so raised, but not exceeding the sum of $5,000.00 in any one year. The amount shall be paid by the [state treasurer] State Treasurer on the warrant of the [director of the division of budget and accounting] Director of the Division of Budget and Accounting.

(cf: N.J.S.18A:49-3)

31. N.J.S.18A:49-5 is amended to read as follows:

18A:49-5. The [treasurer of school moneys] secretary of the school district shall be the legal custodian of all funds appropriated, raised, or subscribed for the maintenance of such evening schools. [He] The secretary shall keep a separate and distinct account thereof, and shall disburse the moneys on orders signed by the president and [secretary of the] a board [of education] designee.

(cf: P.L.1981, c.174, s.18)

32. N.J.S.18A:50-5 is amended to read as follows:

18A:50-5. The [treasurer of school moneys] secretary of each school district shall be the legal custodian of all funds allocated by the board of education and received from tuition fees or from any other source for the purpose of carrying out a program of adult education. [He] The secretary shall keep a separate account thereof and shall disburse the moneys on orders signed by the president and [secretary of the] a board [of education] designee.

(cf: P.L.1981, c.174, s.19)

33. N.J.S.18A:54-9 is amended to read as follows:

18A:54-9. When any such school other than a full-time day school shall have been established, there shall be paid to the [custodian of school moneys] secretary of the district maintaining the school on the order of the commissioner, an amount equal to that raised in the district for the establishment of the school, exclusive of the amount appropriated for the purchase of land or the erection of a building, which amount shall be paid by the [state treasurer] State Treasurer on the warrant of the [director of the division of budget and accounting in the department of the treasury] Director of the Division of Budget and Accounting in the Department of the Treasury. Annually thereafter there shall be paid in like manner an amount equal to the amount appropriated by the district for the current expenses of [such schools] the school; but the money contributed by the [state] State for the support and maintenance of [any such] the school shall not exceed in any one year the sum of $10,000.00.

(cf: N.J.S.18A:54-9)

34. N.J.S.18A:55-2 is amended to read as follows:

18A:55-2. The commissioner shall direct the State [treasurer] Treasurer to withhold funds payable by the State from any district which fails to obey the law or the rules or directions of the State board or the commissioner.

The county superintendent with the approval of the commissioner may direct the [treasurer of the school moneys] secretary of a school district to withhold all moneys received by [him] the district from the State [treasurer] Treasurer and then remaining [in his hands] to the credit to the district, whenever the board of education of the district, or any officer thereof, or the legal voters of any school district, or any board or officer of the municipality in which [any such] the school district is situate, shall neglect or refuse to perform any duty imposed upon [such] the board, officer, or legal voters by this title or by the rules of the State board. The [treasurer] secretary shall withhold [such] the moneys until [he shall receive] notice is received from the county superintendent that the board, officer, or legal voters have performed such duty.

(cf: P.L.1996, c.138, s.82)

35. Section 3 of P.L.1968, c.177 (C.18A:58-33.4) is amended to read as follows:

3. (a) A copy of said resolution of the State Board of Education determining a school district to be entitled to additional State school building aid, together with a copy of said ordinance or proposal bearing the endorsement of the Commissioner of Education, shall be submitted to the State Treasurer for his consideration. If the State Treasurer is satisfied after investigation either, (a) that the payment of the debt service (interest and principal) on the bonds proposed to be authorized by such ordinance or proposal will not cause the amount of additional State school building aid to be paid pursuant to this act to exceed the sum herein provided (with respect to such school district), or (b) that the payment of the debt service (interest and principal) in each year on the bonds authorized by such ordinance or proposal will not exceed the allocation with respect to such school district, he shall endorse his approval to that effect upon the copy of such ordinance or proposal.

(b) A copy of any such ordinance or proposal authorizing bonds for school purposes and bearing said endorsements of the Commissioner of Education and State Treasurer, shall be submitted to the local finance board for its consideration, and the local finance board in considering such copy of any ordinance or proposal submitted to it and before endorsing its consent thereon may require the governing body of any municipality or board of education of any school district submitting any such ordinance or proposal to adopt resolutions restricting or limiting any future proceedings therein or other matters or things deemed by the local finance board to affect any estimate made or to be made by it in accordance with subsection (c) hereof, and every such resolution so adopted shall constitute a valid and binding obligation of such municipality or school district, as the case may be, running to and enforceable by, and releasable by, the local finance board.

(c) Within 60 days after such submission to it, the local finance board shall cause its consent to be endorsed upon such copy of any ordinance or proposal authorizing such bonds, if it shall be satisfied, and shall record by resolution, its estimates that the amounts to be expended for the school district projects or educational facilities to be financed pursuant to such ordinance or proposal are not unreasonable or exorbitant; and that issuance of the bonds, proposed to be authorized by such ordinance or proposal, will not materially impair the credit of any municipality comprised within the district or substantially reduce its ability, during the ensuing 10 years, to pay punctually the principal and interest of its debts and supply essential public improvements and services, but if the local finance board is not so satisfied it shall cause its disapproval to be endorsed on such copy within said period of 60 days.

(d) Any bonds entitled to the benefits of the provisions of this act, shall be deductible in determining the net school debt of any school district for any purpose or computation under section 18A:24-19 of the New Jersey Statutes, and the amount of all such bonds shall be deducted from the gross debt of any municipality constituting the whole or any part of such school district for any of the purposes of section 40A:2-44 of the New Jersey Statutes and shall be a deduction within the meaning and for the purpose of clause (g) of said section to any extent that such bonds are not deductible under clause (a) or clause (b) of said section, and shall at all times constitute a deduction from gross debt on any annual or supplemental debt statement of such municipality.

(e) All of such bonds when issued shall contain a recital to the effect that they are issued pursuant to Title 18A, Education, of the New Jersey Statutes and are entitled to the benefits of the provisions of this act. Any bonds entitled to the benefits of the provisions of this act shall be authorized and issued in the manner provided for in Title 18A, Education, of the New Jersey Statutes, and notwithstanding the provisions of section 18A:24-19 of the New Jersey Statutes. Compliance with the provisions of this act by or on behalf of any school district or municipality shall make it unnecessary to comply with any of the provisions of sections 18A:24-20 through 18A:24-27 of the New Jersey Statutes, and such sections shall not be applicable with respect to authorization or issuance of any bonds entitled to the benefits of the provisions of this act. Bonds entitled to the benefits of the provisions of this act shall mature not later than 30 years from their date and without regard to any limitations as to maturities or amounts of annual installments for such bonds as provided in Title 18A, Education, of the New Jersey Statutes.

(f) The Commissioner of Education is hereby authorized and directed to establish and maintain records pertaining to each issue of bonds entitled to the benefits of this act and setting forth as to such bonds the amount to be payable in each year on account of debt service (interest and principal) on such bonds, and such records as aforesaid shall be conclusive as to the amount so payable on account of such debt service, and the Commissioner of Education is hereby authorized and empowered to certify for any purpose such amounts as so payable on account of debt service with respect to such bonds. A school district or municipality authorized to issue such bonds may make application to the Commissioner of Education and the local finance board setting forth request for adjustment as to amount payable in any year on account of debt service with respect to such bonds, and the Commissioner of Education and the local finance board are each hereby authorized and empowered to grant such request if it shall be found that such request is reasonable and in the financial interest of such school district or municipality, and that the requested adjustment as to the amount payable in any year for debt service (principal and interest) on such bonds does not exceed the amount of the allocation then applicable as to such year with respect to such school district or municipality. The Commissioner of Education shall cause such records to be adjusted and shall certify by reference to such records the adjusted debt service with respect to such bonds after giving effect to such request, and such bonds shall thereafter be eligible with respect to payments hereunder for debt service (principal and interest) in accordance with such certification. Upon issuance of any bonds benefiting under this act the chief financial officer of the school district or municipality issuing such bonds shall, within 30 days after issuance of such bonds, certify to the Commissioner of Education the exact amount payable on account of debt service (interest and principal) on such bonds in each year and the name and address of the paying agent or paying agents for such bonds or notes, and upon receipt of such certification, the Commissioner of Education shall thereupon cause such records to be adjusted with respect to such bonds giving effect to any increase or decrease resulting in any year as to payments on account of interest on or principal of such bonds as shown by said certification of said chief financial officer. Any certification by the Commissioner of Education with respect to bonds to the effect that such bonds are entitled to the benefits of the provisions of this act or as to amount payable in any year for debt service (principal and interest) on such bonds shall be fully conclusive as to such bonds from and after the time of issuance of such bonds, notwithstanding any irregularity, omission or failure as to compliance with any of the provisions of this act with respect to such bonds, provided that such bonds contain a recital to the effect that they are entitled to the benefits of the provisions of this act, and all persons shall be forever estopped from denying that such bonds are entitled to the benefits of the provisions of this act.

(g) Any school district or municipality which has authorized bonds and which are entitled to the benefits of this act, may issue temporary notes or loan bonds (hereinafter called "obligations" ) in anticipation of the issuance of permanent bonds to the extent permitted or provided for by or pursuant to the provisions of Title 18A, Education, of the New Jersey Statutes and any other laws applicable, in principal amount not in excess of the principal amount of the permanent bonds and subject to such additional terms or conditions with respect to such obligations as may be fixed or required by the Commissioner of Education or the local finance board under authority of this act. The amount and details of any such obligations issued and the interest payable thereon and the name and address of the paying agent or paying agents for such bonds or notes shall be certified by the chief financial officer of such school district or municipality to the Commissioner of Education. The whole or any part of the allocation then applicable to any school district pursuant to this act is hereby authorized to be paid in any year in which such obligations are outstanding and notwithstanding that permanent bonds have not been issued, pursuant to such terms and conditions as may be determined by the Commissioner of Education, for use and application of the amount so paid to the payment of interest on such obligations and so much of the principal thereof in any such year as shall be determined by said commissioner. The determination of the commissioner hereunder provided for shall be conclusive as to such matters, and receipt of the amount of such allocation so paid shall be used and applied only for the payment of the interest on the principal of such obligations in accordance with such determination by said commissioner.

(h) No bonds or notes entitled to the benefits of this act shall be issued unless there is designated therefor a paying agent or paying agents, at least one of which is a bank or trust company authorized to do business in this State. All amounts of additional State school building aid to be paid under the provisions of this act with respect to any school district for debt service (principal and interest) on bonds or notes entitled to the benefits of this act shall, on or before the date for such payment of interest and principal, be paid on behalf of the school district or municipality issuing such bonds or notes to the paying agent or paying agents for such bonds or notes in amount with respect to such date as reflects the amount of principal or interest, respectively, payable as to such date by reason of such additional State school building aid hereunder payable with respect to such school district. Amounts so paid to such paying agent or paying agents shall be applied to the payment of debt service (principal and interest) on such bonds or notes and for no other purpose.

(i) Pending application to the purposes for which bonds or notes entitled to the benefits of this act are issued, the proceeds of such bonds or notes shall be invested or deposited subject to regulations prescribed by the State Treasurer. On January 10 in each year the [custodian of school moneys] secretary of a Type II school district or the chief financial officer of the municipality of a Type I school district, as the case may be, shall certify and pay to the State Treasurer the amount of earnings received during the preceding year from the investment or deposit of the proceeds from the sale of such bonds or notes, which amounts shall be held by him and applied only to the payment of principal and interest on such bonds or notes.

(cf: P.L.1971, c.46, s.1)

36. Section 4 of P.L.1971, c.46 (C.18A:58-33.20) is amended to read as follows:

4. Pending application to the purposes for which bonds or notes entitled to the benefits of this act are issued, the proceeds of [such] the bonds or notes shall be invested or deposited subject to regulations prescribed by the State Treasurer. On January 10 in each year the [custodian of school moneys] secretary of a Type II school district or the chief financial officer of the municipality of a Type I school district, as the case may be, shall certify and pay to the State Treasurer the amount of earnings received during the preceding year from the investment or deposit of the proceeds from the sale of [such] the bonds or notes, which amounts shall be held by [him] the treasurer and applied only to the payment of principal and interest on [such] the bonds or notes.

(cf: P.L.1971, c.46, s.4)

37. Section 17 of P.L.1978, c.74 (C.18A:58-33.38) is amended to read as follows:

17. Pending application to the purposes for which bonds or notes entitled to the benefits of this act are issued, the proceeds of [such] the bonds or notes shall be invested or deposited subject to regulations prescribed by the State Treasurer. On January 10 in each year the [custodian of school moneys] secretary of a Type II school district, the chief financial officer of the municipality of a Type I school district or chief financial officer of the county, as the case may be, shall certify and pay to the State Treasurer the amount of earnings received during the preceding year from the investment or deposit of the proceeds from the sale of [such] the bonds or notes, which amounts shall be held by [him] the treasurer and applied only to the payment of principal and interest on [such] the bonds or notes.

(cf: P.L.1978, c.74, s.17)

38. N.J.S.18A:66-108 is amended to read as follows:

18A:66-108. a. The board of trustees may, in the manner prescribed by the bylaws of the corporation, assess and collect monthly or semimonthly from each member of the pension fund the amount required to be paid by said member into the fund. All moneys so collected shall be paid to the treasurer of the corporation.

The board of trustees may make it a condition of membership that each member sign an order on the [treasurer of school moneys] secretary, or other disbursing officer, directing the retention from his or her salary or wages of the amount of his or her assessments and the payment of the amount so retained directly to the treasurer of the corporation, and the [treasurer of school moneys] secretary, or other disbursing officer, shall make such retention and payment, but such right of retention and payment shall become operative only in the event of the same being authorized by the bylaws of the corporation.

b. Whenever any member shall die in service or his or her employment be terminated, for reasons other than retirement, all payments made by such employee to the fund shall be returned to the employee, if alive; or to such person, if living, as he shall have nominated by written designation, duly executed and filed with the board of trustees; otherwise to the executor or administrator of the member's estate, together with simple interest at the rate of 4% per annum.

c. Upon the receipt of proper proof of the death of a member in service, on account of which no accidental death benefit is payable under subsection e. of this section or the death of a member who has been retired for disability but who has not yet attained 60 years of age, there shall be paid to such person, if living, as he shall have nominated by written designation, duly executed and filed with the board of trustees, otherwise to the executor or administrator of the member's estate an amount equal to one and one-half times the compensation upon which his contributions are based or received by the member in the last year of creditable service; provided, however, that if such a member shall have attained 70 years of age or the member who has been retired for disability has attained 60 years of age, the amount payable shall equal three-sixteenths of the compensation received by the member in the last year of creditable service instead of one and one-half times such compensation. Such member may also file, and alter from time to time during his lifetime, as desired, a request with the board of trustees directing payment of said benefit in one sum or in equal installments over a period of years or as a life annuity. Upon the death of such member, a beneficiary to whom a benefit is payable in one sum may elect to receive the amount payable in equal annual installments over a period of years or as a life annuity.

d. Whenever any member who was a member on June 26, 1962, shall die after retirement on pension, not having received in pension payments an amount equal to the total amount of his or her contributions to the fund, including simple interest at 2% per annum, the difference between the amount so received and the amount of contributions, plus interest, shall be paid to the surviving named beneficiary on file with the board of trustees, and if none, then to his or her legal representative; unless said employee has made provision with the board of trustees for optional benefits under the provisions of section 18A:66-110.

e. Upon the death of a member in active service as a result of an accident in the performance of his or her duties as such employee and not as the result of his willful negligence, an accidental death benefit shall be payable, if a report, in a form acceptable to the board of trustees, of the accident is filed with the pension fund within 60 days next following the accident and an application for such benefit is filed with the said board of trustees within two years of the date of the accident, but the board of trustees may waive such time limits for a reasonable period, if in the judgment of the board the circumstances warrant such action. Evidence must be submitted to the board of trustees proving that the natural and proximate cause of death was an accident arising out of and in the course of employment at some definite time and place. Upon application by or on behalf of the dependents of such deceased member, the board of trustees, in addition to the payment of his contributions, as provided in this section, shall grant a pension of one-half of the average annual salary received by him or her during the three years immediately preceding his or her death to the spouse of the deceased member or, if no surviving spouse, then to the child or children of such member under age 18, divided in such manner as
the board in its discretion shall determine to continue until the youngest surviving child dies or attains age 18.

(cf: P.L.1995, c.240, s.3)

39. R.S.40:3-4 is amended to read as follows:

40:3-4. The sinking fund commissions of the several municipalities, counties and school districts, created and established in accordance with the provisions of the act entitled "An act concerning sinking funds and sinking fund commissions," approved March twenty-ninth, one thousand nine hundred and seventeen (L.1917, c. 212, p. 749), are continued. The membership of such commissions shall be as follows:

a. The executive officer of the municipality or county, or the mayor of municipalities governed by a commission, or the president of the board of education, ex officio; but if such executive officer, mayor or president does not desire to serve, he may appoint in his place a member of the governing body, or an official of the municipality, county or school district, as the case may be. The term for such appointee in the sinking fund commission shall be coexistent with the term of such executive officer, mayor or president or the term of the appointee as a member of the governing body or as an official, except that it shall terminate upon his ceasing to be a member of the governing body or to hold such office; and

b. The comptroller, or in municipalities which have no comptroller, the treasurer, or in municipalities governed by a commission, the director of the department of revenue and finance, or in counties, the county treasurer, or in school districts, the [custodian of school moneys] school board secretary, ex officio; and

c. In addition three citizens of the municipality, county or school district, as the case may be, resident taxpayers on real estate, to be chosen with reference to their qualifications for the conduct and management of financial affairs who shall not hold any other office in such municipality, county or school district, as the case may be, during their term as members of such commission, who shall be appointed by the mayor, executive officer, or president of the municipality, county or school district by and with the consent of the governing body, or by the commission of a municipality governed by a commission, as the case may be, for a term of three years to begin on January first. When a vacancy shall occur in the citizen membership of the commission, it shall be filled for the unexpired term in the same manner as the original appointment was made.

In municipalities, counties or school districts whose sinking fund amounts to less than fifty thousand dollars, it shall not be necessary for the sinking fund commission to be composed of more than three members, as the governing body thereof shall decide, but if the sinking fund commission shall in any case be limited to three members, then the same shall be composed of: the comptroller, or in municipalities which have no comptroller, the treasurer, or in municipalities governed by a commission, the director of the department of revenue and finance, or in counties the county treasurer, or in school districts, the [custodian of school moneys] school board secretary, ex officio; and two citizens of the municipality, county or school district, as the case may be, resident taxpayers on real estate, to be chosen with reference to their qualifications for the conduct and management of financial affairs, who shall not hold any other office in such municipality, county or school district, as the case may be, during their term as members of such commission, who shall be appointed by the mayor, executive officer, or president of the municipality, county or school district, by and with the consent of the governing body, or by the commission of a municipality governed by a commission, one for a term of one year and one for a term of two years, and thereafter each citizen member of such commission shall be appointed for a term of two years to begin January first. When a vacancy shall occur in the citizen membership of the commission, it shall be filled for the unexpired term in the same manner as the original appointment was made. If at any time by reason of the increase of the amount of the sinking fund to fifty thousand dollars or more, or if the governing body shall decide to increase the number of the members of the sinking fund commission to five members, then the commission shall be constituted as hereinbefore provided, and in either case the additional citizen member shall be appointed for such term as will make the term of one citizen member of the sinking fund commission expire each year, the appointments thereafter to be for three years.

(cf: R.S.40:3-4)

40. R.S.40:3-6 is amended to read as follows:

40:3-6. Until the members of the sinking fund commission have been appointed and the organization of the commission has been perfected, the comptroller, or in municipalities which have no comptroller, the treasurer, or in municipalities governed by a commission, the director of the department of revenue and finance, or in counties the county treasurer, or in school districts the [custodian of school moneys] school board secretary shall be the sinking fund commissioner of the municipality, county or school district, as the case may be, and shall have all the rights, powers and duties of the sinking fund commission provided for under this chapter.

(cf: R.S.40:3-6)

41. Section 77 of P.L.1947, c.151 (C.52:27BB-77) is amended to read as follows:

77. The local governing body shall cause to be paid to the county treasurer and to the [custodian of school funds] school board secretary, at such time and in such manner as the director may prescribe, amounts collected from properties on an inactive list, less reasonable costs of collection, in the proportion that the amounts levied for State, State school, county and school district purposes, respectively, during the fiscal year of such collections bore to the total levy for all purposes upon real and personal property within the municipality.

(cf: P.L.1947, c.151, s.77)

42. R.S.54:4-75 is amended to read as follows:

54:4-75. The governing body of each municipality shall pay over to the [custodian of school moneys] school board secretary, in the case of school districts in which appropriations for school purposes are made by the inhabitants of the school district, within forty days after the beginning of the school year, twenty per centum (20%) of the appropriation for local school purposes, and thereafter, but prior to the last day of the school year, the balance of the moneys raised in the municipality for school purposes in such amounts as may from time to time be requested by the Board of Education, within thirty days after each request. The Board of Education shall not request any more money at any one time than shall be required for its expenditures for a period of eight weeks in advance; provided, however, that the Board of Education may at any time, but not earlier than fifteen days prior to the beginning of the school year, request sufficient moneys to meet all interest and debt redemption charges maturing during the first forty days of the school year. The governing body may make payments of such moneys in advance of the time and in excess of the amounts required by this section.

(cf: P.L.1952, c.274, s.1)

43. Section 1 of P.L.1945, c.66 (C.54:4A-1) is amended to read as follows:

1. In case the Government of the United States or any agency thereof shall make contributions in lieu of taxes, the contributions shall be made and received as follows:

In the case of contributions made in lieu of the State school tax, such contribution shall be made to the Treasurer of the State and shall be considered as an addition to the State school tax levied against the county in which the property of the Government of the United States or any agency thereof is situated for which the in lieu contribution is made, and shall be apportioned in the same manner as the State school tax is apportioned.

In case of contribution made in lieu of county or county subdivision taxes, such contribution shall be made to the county treasurer to be used for such purposes as the tax is used for which the in lieu payment is made.

In case of contribution made in lieu of the local school tax, such contribution shall be made to the [custodian of school moneys] school board secretary of the school district in which the property is located, for which the in lieu contribution is made, and to be used for school purposes.

In case of contribution made in lieu of municipal or municipal subdivision purpose taxes, such contribution shall be made to the treasurer of the municipality to be used for such purposes as the tax is used for which the in lieu contribution is made.

(cf: P.L.1945, c.66, s.1)

44. Section 3 of P.L.1945, c.66 (C.54:4A-3) is amended to read as follows:

3. The treasurer, or [custodian] school board secretary, receiving any of the above contributions in lieu of taxes is authorized to give a receipt therefor.

(cf: P.L.1945, c.66, s.3)

45. (New section) The secretary shall receive and hold in trust all school moneys belonging to the district from whatever source derived free of any control by the governing body of any municipality comprised in the district, except such moneys as are derived from athletic events or other activities of pupil organizations of the district, and the secretary shall, when required by resolution of the board, deposit the moneys or a part thereof as may be designated in any bank or banking institution of this State designated by it as a depository of school moneys, which may include the State of New Jersey Cash Management Fund, created pursuant to section 1 of P.L.1977, c.281 (C.52:18A-90.4), and thereafter school moneys shall be deposited only in the depository or any of the depositories so named, and the secretary shall be relieved from liability for any loss thereof which may be caused by reason of the deposit.

46. (New section) The secretary shall keep a record of the sums received and paid out in books provided for that purpose and kept in accordance with the uniform system of bookkeeping prescribed by the State board. Upon ceasing to hold the office the secretary shall pay over the balance of school funds to the successor in office.

47. (New section) The secretary shall render to the board monthly, and at such other times as shall be requested by the board, reports giving a detailed account of all receipts, the amounts of all warrants signed by the secretary since the date of the last report and the accounts against which, and the purposes for which, the warrants were drawn and the balance to the credit of each account, and at the close of the school year and not later than August 1 of each year the secretary shall render an annual report showing the amounts received and disbursed for school purposes during the year, a duplicate whereof shall be filed with the county superintendent, and shall also report to the county superintendent in the manner and form prescribed by the commissioner.

48. (New section) A school district may conduct a course of exercises or instruction in accordance with the core curriculum content standards to observe holidays, including, but not limited to, Lincoln's Birthday, Washington's Birthday, Memorial Day, Columbus Day, Veterans Day, Thanksgiving Day, Flag Day, Arbor Day, and Commodore Barry Day.

49. The following sections are repealed:

N.J.S.18A:8-33;

N.J.S.18A:13-14;

N.J.S.18A:17-31;

N.J.S.18A:17-32;

N.J.S.18A:17-33;

N.J.S.18A:17-34;

N.J.S.18A:17-35;

N.J.S.18A:17-36;

N.J.S.18A:19-11;

N.J.S.18A:36-6;

N.J.S.18A:36-8;

N.J.S.18A:36-9;

N.J.S.18A:36-11;

N.J.S.18A:36-12; and

N.J.S.18A:36-13.

50. This act shall take effect on July 1 next following the date of enactment.

STATEMENT

The bill effectuates recommendations included in the final report of the Education Mandate Review Study Commission which was issued on February 3, 2004. The commission was established pursuant to Executive Order No. 75 which was issued on October 22, 2003 by Governor McGreevey.

The bill eliminates the position of treasurer or custodian of school moneys and transfers the duties of the office to the secretary of the school board. In the case of some duties, such as the issuance of checks, the chief school administrator or a school board designee, other than the secretary, would assume the responsibilities of the treasurer or custodian.

According to the final report of the Education Mandate Review Study Commission, there is no longer a need for the position of treasurer of school moneys, a position that predates the adoption of Generally Accepted Accounting Principles (GAAP) and originally served as a check on the school board secretary. School districts today pay between $2,500 and $12,000 for a treasurer of school moneys, and it is estimated that the Statewide savings in eliminating the position could be as much as $3.6 million.

The bill eliminates the requirement for specific reporting to the Director of the Division of Local Government Services in those instances in which a board of education has determined not to take advantage of a State contract for the purchase of an item because the board can purchase that item at a price which is at least 10% below that available under the State contract. Rather, the bill provides that the purchase order relating to the contract must include a notation that the item was purchased at least 10% below the State contract price. Also, the board will make available to the director, upon his request, any documents relating to the solicitation and award of the contract.

The bill also revises the threshold for the affidavit requirement on purchases by school districts from $150 to an amount equal to 15% or more of the bid threshold, which is the amount at which a school district is required under current law to solicit quotations prior to entering into contracts.

The bill eliminates the transcript requirement for the annual public hearing for violence and vandalism that a district is required to hold under N.J.S.A.18A:17-46. The cost of a transcript can run from several hundred dollars to several thousand, depending on the length of the hearing. Meeting minutes can accurately verify that a hearing took place, identify the names of speakers, and capture discussion at the hearing without this additional expense.

The bill also eliminates the requirement that a district hold its annual hearing on violence and vandalism during the third week in October. Although the third week in October is School Violence Week, compliance with the statute may require a board which does not regularly meet at that time to hold a special meeting. The bill gives districts discretion to set hearing dates that fit their calendars.

This bill eliminates the requirement that school districts conduct exercises or instruction to commemorate three specific holidays: Flag Day, Arbor Day and Commodore Barry Day. The bill also eliminates the requirement that school districts hold exercises on the last school day preceding various patriotic holidays. Rather than mandating activities to commemorate holidays, this bill would permit schools districts to conduct exercises and instruction to observe holidays. These provisions concerning curriculum are designed to provide school districts more flexibility and to recognize the fact that the core curriculum content standards should drive the provision of instruction in schools.