Bill > A2717

Introduced Session

Under current law, the Local Unit Alignment, Reorganization, and Consolidation Commission (LUARCC) examines the consolidation of municipalities, the merger of autonomous agencies into their parent municipal or county government, and the sharing of services between municipalities or between municipalities and other public entities. The bill would clarify LUARCC's powers to recommend specific consolidations and mergers under current law. The bill would also clarify and enhance LUARCC's powers to facilitate shared service agreements by authorizing LUARCC to recommend or to order the execution of specific shared service agreements. The provisions of Title 11A, Civil Service, would not apply to an employee affected by a shared services agreement ordered or recommended by LUARCC. The bill would require LUARCC to include in every consolidation proposal and every shared services proposal an estimate of the savings that will result from implementation of the proposed consolidation or sharing of services. The bill allows local units to contest LUARCC's estimate of savings by appeal to the Commissioner of Community Affairs. Current law provides for public hearings when municipal consolidations are being considered. The bill provides that when a LUARCC recommends a municipal consolidation, the commission must be present at one or more of those public hearings. The bill also requires LUARCC to hold at least two public hearings whenever the commission recommends or orders a sharing of services. Under the bill, as under current law, LUARCC-recommended consolidation or shared service proposals would become effective upon adoption by a majority of the voters of each affected municipality. If the voters of a municipality do not approve a shared services proposal or if a municipality or other entity identified in a proposed shared services agreement does not enter into and implement the proposed shared services agreement within 14 months following the effective date of the proposal, the State would annually reduce that municipality's State aid by the amount of savings that was estimated by LUARCC. With regard to a LUARCC-ordered sharing of services, if a municipality or other entity identified in a shared services order does not implement the order within 14 months of its effective date, the State would annually reduce the total amount of aid it provides to that municipality or entity by the amount of savings that was estimated by LUARCC. Furthermore, the bill provides that under these circumstances the State may take other steps it deems necessary to enforce the order, including withholding all State aid allocated to that municipality or entity until it complies with the order. Additionally, the bill clarifies the Legislature's intention that LUARCC have sufficient resources to fulfill its statutory obligations by empowering LUARCC to request specific resources from the State and localities and to contract for necessary services. The bill would appropriate funds to LUARCC to cover the costs of operations and to fund extraordinary expenses of local units needed to implement a LUARCC-proposed consolidation plan or shared service agreement. The bill also provides that when local units enter into, renew, or extend shared service agreements or joint meetings pursuant to the "Uniform Shared Services and Consolidation Act," P.L.2007, c.63 (C.40A:65-1 et seq.) or any other law providing for the sharing of services, the provisions of Title 11A, Civil Service, would not apply to employees affected by the shared service agreement or joint contract.

AI Summary

Committee Categories

Andrea Katz (D)*, 

Introduced, Referred to Assembly State and Local Government Committee (on 01/13/2026)

Official Document