Governor Takes Action on Legislation

Tags

Housing for Veterans, Local Unit Agreements, Lyft, Property Assessment, School Employees' Health Benefits Program, State Health Benefits Program, Uber, Urban Enterprise Zones

The Governor recently took action on various pieces of legislation, including the following:

• The Governor conditionally vetoed A-4189/S-2670, regarding Urban Enterprise Zones (UEZs).  This bill would have extended, for two years, UEZ authorization in municipalities where the program was scheduled to sunset at the end of 2016. (Those municipalities are Bridgeton, Camden, Newark, Plainfield and Trenton.)  The remaining zones do not expire for a number of years.   While this bill is a conditional veto, it is effectively a veto since the Governor struck the language that would have extended these 5 zones on a short term basis.    We do not expect the Legislature to act on the Governor’s recommendations.

The Governor also signed the following bills into law:

• PL. 2017, c. 16 requires that the annual notice of assessment on property to contain bolded notice of filing deadline for appeal.  This legislation took effect on February 10, 2017.

• PL. 2017, c.19 requires the Department of Community Affairs to establish rules and regulations to provide affordable housing preference to homeless veterans, disabled veterans and family members who are the primary caregiver to disabled veterans residing with them, in a municipal or county housing authority project.   All applicants for the housing preference will also be required to meet the income requirements for admission to the housing project.  Priority for the preference will be given to applicants as follows: (1) homeless veterans shall receive first priority; (2) disabled veterans shall receive second priority; and (3) family members who are the primary residential caregivers to disabled veterans residing with them shall receive third priority.  This legislation will take effect May 1, 2017.

• PL. 2017, c. 21 permits local units to enter into a shared service agreement with a federal military base for services that the local unit involved in the agreement is empowered to provide those services within its own jurisdiction.  Also the services must be permitted by 10 U.S.C. s.2679.  The law shall not be construed to impact existing Federal or State civil service laws and if there is a conflict regarding the content and duration of such agreements, federal law will control.  The League supported this legislation that took effect on February 10, 2017.

• PL. 2017, c. 26 which preempts municipal regulation of some taxi services such as Uber and Lyft.   This new law unnecessarily exempts ride for hire services from local regulation. We had asked the Governor to conditionally veto the bill, so as to delete Section 26.

• PL. 2017, c. 28 which requires health insurance carriers, and the State Health Benefits Program and the School Employees’ Health Benefits Program, to adhere to certain coverage requirements for treatment of substance use disorders.  The bill also places certain restrictions on the prescription of opioids, and requires certain notifications when prescribing Schedule II controlled dangerous substances used to treat chronic or acute pain.  The bill also requires certain health care professionals to receive training on topics related to prescription opioid drugs.

Contacts:

Michael Cerra, Assistant Executive Director, mcerra@njslom.org, 609-695-3481 x120;

Jon Moran, Senior Legislative Analyst, jmoran@njslom.org, 609-695-3481 x121;

Lori Buckelew, Senior Legislative Analyst, lbuckelew@njslom.org, 609- 695-3481, x112.

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Action needed to address ‘bono fide severance of employment’ problem

During Wednesday’s Mayors’ Day session, Alpine Mayor Paul Tomasko asked State Legislative leaders about a matter that is important to municipalities all around our State. It involves the ability of retired public employees to continue to serve their fellow citizens, in volunteer capacities.

In 2014, the State’s Division of Pension and Benefits issued guidance on post retirement employment restrictions for public employees.  The guidance noted that there must be a “bona fide severance of employment”, a complete termination of the employee’s employment relationship with the employer for a period of at least 180 days, in order not to jeopardize the employee’s retirement benefits.  The Division considers re-employment by a different unit of the same public entity, whether the position is covered by the same retirement system or a different retirement system, to be employment by the same employer. If an employee holds more than one position with the employer they must separate from all employment in order to retire, even if the positions are covered by different retirement systems, or the second position is not subject to pension contributions.

If an individual returns to public employment with the former employer, even as a volunteer,  prior to satisfying the requirements of a bona fide severance from employment, the employee will be required to repay all retirement benefits received from the date of retirement and may be required to re-enroll in the same or different retirement system.  As a result, volunteer firefighters and first aid members, and volunteer parade, event or celebration committee members or volunteers serving the PTA, to name a few; who were also public employees, have been required to resign from their volunteer position in order to receive their retirement benefits.

Volunteers are the backbone of communities providing services to the residents at no cost to taxpayers while freely giving of their time and expertise.  Employees affected by the Division of Pensions ruling generally are at least 55 years of age. In their volunteer positions, they often serve as mentors to the new and younger members, typically providing guidance and direction.

While well intended the Division of Pensions has created an unintended consequence which, if not changed, will impact every public employee who volunteers in the state and will not only drive up property taxes, but would also reduce the quality and level of essential public services.

In November, 2014, the League of Municipalities adopted a Resolution, urging action to direct the Division of Pension and Benefits to permit retirees and local elected officials to continue as volunteers, without impact to their retirement, and to not require the complete 180 day separation from volunteer service.

In response, two pairs of companion bills have been introduced.

Last year, the State Senate unanimously passed S-2107 (companion to A-536), which would permit a person with a pre-existing volunteer relationship as a firefighter or first aid with their employer to retire from service covered by PERS or PFRS and continue to serve that employer as a volunteer.  We support this bill, which would address part of the problem.

Other legislation, however, goes all the way in resolving the problems created by the Division of Pensions’ ruling on ‘bono fide severance.’

A-3223/S-2446 would allow public employees in state-administered retirement systems who continue any preexisting volunteer relationships with employers from whom they retire, to continue to volunteer for their prior employers without jeopardizing their pensions.  Legally speaking, this bill would clarify that such a relationship does not vitiate a bona fide retirement.

S-2107, A-536 and A-3223 all await action in the Assembly State and Local Government Committee. S-2446 has been referred to the Senate State Government, Wagering, Tourism and Historic Preservation Committee.

We commend the sponsors of these bills and would urge action to remedy the problem, once and for all.

Contact:  Mike Cerra, Asst. Executive Director, mcerra@njslom.org or 609-695-3481 x120.