Bill Text: NJ S396 | 2010-2011 | Regular Session | Introduced
Bill Title: Permits State aid to fund start-up costs for local shared services projects.
Spectrum: Slight Partisan Bill (Republican 3-1)
Status: (Introduced - Dead) 2010-01-12 - Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee [S396 Detail]
Download: New_Jersey-2010-S396-Introduced.html
STATE OF NEW JERSEY
214th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2010 SESSION
Sponsored by:
Senator ROBERT W. SINGER
District 30 (Burlington, Mercer, Monmouth and Ocean)
Senator ANTHONY R. BUCCO
District 25 (Morris)
Co-Sponsored by:
Senators Van Drew and Haines
SYNOPSIS
Permits State aid to fund start-up costs for local shared services projects.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel
An Act concerning State incentives to promote local shared services and amending and supplementing P.L.2007, c.63.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 30 of P.L.2007, c.63 (C.40A:65-30) is amended to read as follows:
30. a. A local unit that plans to study the feasibility of a shared service agreement, joint meeting contract, or municipal consolidation may apply to the director for grants or loans to fund the study, including consultant costs, and to fund one-time start-up costs of a shared service agreement or joint meeting contract or municipal consolidation. The director, in consultation with the Commissioner of Education, shall establish a program to be known as the "Sharing Available Resources Efficiently" program, or "SHARE," to accomplish this purpose, and, in consultation with the commissioner, shall promulgate rules and regulations necessary to effectuate the purposes of the program.
b. The director, in consultation with the commissioner, shall provide guidelines and procedures for the submission of SHARE grant and loan applications.
c. Applications for shared service study funds:
(1) May require such local match of funds, as is determined by the director for the studies if the director finds that the local unit is financially capable of providing such matching funds.
(2) Shall not require a local match of funds for consolidation studies under sections 1 to 37 of P.L.2007, c.63 (C.40A:65-1 et al.) or the "Municipal Consolidation Act," P.L.1977, c.435 (C.40:43-66.35 et al.).
(3) Grants for implementation of shared services may include financial assistance for terminal leave benefits, but not for early retirement incentives related to pension contributions.
d. Applications for one-time start-up costs shall provide that:
(1) Local units may apply for financial assistance for the one-time start-up costs necessary to implement shared services. Costs that may be financed through the issuance of debt or capital lease agreements, including but not limited to costs for the installation or maintenance of wireless infrastructure, shall not be excluded from this program, but financial assistance for those costs shall be limited to grants or loans of no more than $200,000.
(2) The director may set limits on aid awards and negotiate the various provisions, costs, payment provisions, and amounts of grants or loans to ensure that the shared service is cost effective and in the public interest. Financial assistance for costs associated with terminal leave benefits shall be limited to the lesser of the officer or employee's regular base rate of compensation that is paid for the terminal leave benefit pursuant to an applicable employment contract, local practice, local ordinance, or State law.
e. The director may provide technical support programs to assist local units in applying for grants or aid for studying shared services.
(cf: P.L.2007, c.63, s.30)
2. (New section) Nothing in section 30 of P.L.2007, c.63 (C.40A:65-30) shall prohibit a local unit from financing one-time start up costs necessary to implement shared services through its general fund. Costs that may be financed through a local unit's general fund, including but not limited to costs for the installation or maintenance of wireless infrastructure, shall not be excluded from funding under the "Sharing Available Resources Efficiently" program; however, financial assistance under the "Sharing Available Resources Efficiently" program for those costs shall be limited to no more than $200,000 for each shared service agreement or arrangement.
3. This act shall take effect immediately.
STATEMENT
This bill would expand the ability of the State to assist local units in participating in shared services projects by permitting the use of SHARE funding for start-up costs that are financed through the issuance of debt or capital lease agreements, including but not limited to the costs associated with the installation and maintenance of wireless infrastructure. Currently, these costs are excluded from the program. The bill limits the amount of grants or loans for these start-up costs to no more than $200,000.
