New Jersey § 52:27bbbb-5

§ 52:27bbbb-5.

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

if the municipality in need of stabilization and recovery fails to submit a plan,

if the commissioner has determined pursuant to subsection c. of section 4 of P.L.2016, c. 4 ( C.52:27BBBB-4 ) that the recovery plan is not likely to achieve financial stability for the municipality

in need of stabilization and recovery, if the commissioner determines that the municipality

is not strictly complying with a recovery plan approved by the commissioner pursuant

to subsection c. of section 4 of P.L.2016, c. 4 ( C.52:27BBBB-4 ), or if the commissioner determines that a recovery plan approved by the commissioner

pursuant to subsection c. of section 4 of P.L.2016, c. 4 ( C.52:27BBBB-4 ) is no longer likely to achieve financial stability, the Local Finance Board may,

in its exclusive discretion at any time during which the municipality is deemed a

municipality in need of stabilization and recovery, assume and reallocate to, and

vest exclusively in the director any of the functions, powers, privileges, and immunities

of the governing body of that municipality set forth in any statute, regulation, ordinance,

resolution, charter, or contract to which the municipality is a party that are, or

may be, substantially related to the fiscal condition or financial rehabilitation

and recovery of that municipality. The duration of the transfer of the functions, powers, privileges, and immunities

of the governing body shall not exceed the duration of the time the municipality is

deemed a municipality in need of stabilization and recovery. (2) In the event the Local Finance Board assumes and reallocates to the director any

function, power, privilege, or immunity of the governing body of a municipality in

need of stabilization and recovery set forth in a contract to which that municipality

is a party, the municipality shall remain the party to the contract and neither the

Local Finance Board nor the director shall assume any contractual obligations or liability

arising out of that contract or be subject to any claim for breach of that contract

or any other claim related to that contract. Any actions or steps taken by the director under P.L.2016, c. 4 ( C.52:27BBBB-1 et al.) shall be deemed to be by, and on behalf of, the municipality in need of stabilization. (3) The authorities granted to the director by the Local Finance Board pursuant to

this section shall extend to any and all actions that, in the exclusive discretion

of the director, may help stabilize the finances, restructure the debts, or assist

in the financial rehabilitation and recovery of the municipality in need of stabilization

and recovery. Notwithstanding the provisions of any other law, rule, regulation, or contract to

the contrary, except for the provisions of Title 11A, Civil Service as may be applicable to actions

taken after the effective date of P.L.2021, c. 124 1 , the director shall have the authority to take any steps to stabilize the finances,

restructure the debts, or assist in the financial rehabilitation and recovery of the

municipality in need of stabilization and recovery, including, but not limited to: (a) implementing governmental, administrative, and operational efficiency and oversight

measures; (b) dissolving, terminating, transferring, abolishing, or otherwise disposing of any

municipal authority, board, commission, or department, or any function thereof; provided,

however, that no such action shall be taken until adequate provision has been made

for the payment of the creditors or obligees of the entity to be impacted unless otherwise

permitted by law. This shall include the power to take any steps required of the governing body under

applicable laws, including but not limited to the “municipal and county utilities

authorities law,” P.L.1957, c. 183 ( C.40:14B-1 et seq. ), the “Local Authorities Fiscal Control Law,” P.L.1983, c. 313 ( C.40A:5A-1 et seq. ), the “Water Infrastructure Protection Act,” P.L.2015, c. 18 ( C.58:30-1 et seq. ), the “Local Redevelopment and Housing Law,” P.L.1992, c. 79 ( C.40A:12A-1 et seq. ), and the “Municipal Land Use Law,” P.L.1975, c. 291 ( C.40:55D-1 et seq. ). To the extent that the Local Finance Board or the director exercise any powers under

the “Local Authorities Fiscal Control Law,” P.L.1983, c. 313 ( C.40A:5A-1 et seq. ) with respect to any municipal authority or municipal public utility in the municipality

in need of stabilization and recovery; (c) vetoing the minutes of the governing body of the municipality in need of stabilization

and recovery, any board, commission, or department of the municipality in need of

stabilization and recovery, and any independent board or authority in the municipality

in need of stabilization and recovery, including, but not limited to, the housing

authority, parking authority, redevelopment authority, planning board, and zoning

board of adjustment. A true copy of the minutes of every meeting of the governing body and any board,

commission, department, or independent board, or authority shall be delivered forthwith,

by and under the certification of the secretary thereof, to the director. No action taken at the meeting shall have force or effect until 15 business days

after a copy of the minutes have been so delivered to the director, unless during

this 15-day period the director shall approve in writing the minutes or any part thereof,

in which case the action shall become effective upon approval. If, within that 15-day period, the director returns a copy of the minutes with a

veto of any action taken by the governing body, board, commission, department, or

independent board or authority, or any member thereof at the meeting, the action shall

be null and void and of no effect. The director may approve all or part of the action taken at a meeting; (d) controlling litigation and the municipality's legal affairs, including, but not

limited to, suing in the municipality's corporate name; prosecuting, defending, and

resolving litigation, arbitration, disputes, and controversies; and retaining and

directing municipal corporation counsel and other special counsel as the director

may deem appropriate; (e) selling, conveying, leasing, monetizing, or otherwise disposing of any interest

in any municipally-owned assets, including but not limited to, any water, sewer, wastewater,

and storm water infrastructure, equipment or facilities, services, and in any real

property, including any improvements thereon; provided that the director shall not

sell, convey, lease, monetize, or otherwise dispose of any municipally-owned water

asset pursuant to an agreement with a private entity until one year after the effective

date of P.L.2016, c. 4 ( C.52:27BBBB-1 et al.) to allow the municipality in need of stabilization and recovery to maximize

the value of that asset; (f) amending or terminating any existing contracts or agreements, which shall not

include bonds, notes, indentures, or other similar financing instruments and documents

to which the municipality is a party, in accordance with the terms thereof; or unilaterally

amending or terminating any contracts or agreements which shall not include bonds,

notes, indentures, or other similar financing instruments and documents to which the

municipality is a party, provided that the director determines that the unilateral

termination or amendment is reasonable and directly related to stabilizing the finances

or assisting with the fiscal rehabilitation and recovery of the municipality in need

of stabilization and recovery; (g) unilaterally modifying, amending, or terminating any collective negotiations agreements,

except those related to school districts, to which the municipality is a party, or

unilaterally modifying, amending, or terminating the terms and conditions of employment

during the term of any applicable collective negotiations agreement, or both, provided

that the director determines that the modifications, amendments, or terminations are

reasonable and directly related to stabilizing the finances or assisting with the

fiscal rehabilitation and recovery of the municipality in need of stabilization and

recovery; (h) acting as the sole agent in collective negotiations on behalf of the municipality

in need of stabilization and recovery; (i) with respect to any expired collective negotiations agreement to which the municipality

in need of stabilization and recovery is a party, unilaterally modifying wages, hours,

or any other terms and conditions of employment; (j) unilaterally abolishing any non-elected positions in the municipality in need

of stabilization and recovery at any time. All of the functions, powers, and duties of abolished positions shall be exercised

or delegated by the director; (k) unilaterally appointing, transferring, or removing employees of the municipality

in need of stabilization and recovery, including, but not limited to, department heads

and division heads, as the case may be, but excluding appointed officials who have

obtained tenure in office; ( l ) acting as the appropriate authority, including, without limitation, the appointing

authority, for purposes of Title 40A of the New Jersey Statutes; (m) entering into any agreement with the county in which the municipality in need

of stabilization and recovery is located, any of the other municipalities located

in that county, or any instrumentality of the State to share or consolidate municipal

services pursuant to any law applicable to consolidation or sharing of services, including,

without limitation, the “Uniform Shared Services and Consolidation Act,” P.L.2007, c. 63 ( C.40A:65-1 et al.) and P.L.2015, c. 279 ( C.40A:14-90.1 et al.); (n) procuring any goods, services, commodities, information technology, software,

hardware, or other items on behalf of the municipality in need of stabilization and

recovery, in accordance with either the “Local Public Contracts Law,” P.L.1971, c.

198 ( C.40A:11-1 et seq. ), or procurement laws applicable to the State, at the discretion of the director; ( o ) retaining any professionals on behalf of the municipality in need of stabilization

and recovery, and directing the work of professionals or any professionals previously

retained by the municipality in need of stabilization and recovery, in accordance

with either the “Local Public Contracts Law,” P.L.1971, c. 198 ( C.40A:11-1 et seq. ) or procurement laws applicable to the State, at the discretion of the director; (p) retaining bond counsel, adopting bond ordinances to the extent necessary, making

appropriate bond applications, and taking any other steps necessary to restructure

and adjust debt, on behalf of the municipality in need of stabilization and recovery; (q) exercising on behalf of the municipality in need of stabilization and recovery

any authority granted to a municipality pursuant to the “Local Redevelopment and Housing

Law,” P.L.1992, c. 79 ( C.40A:12A-1 et al.) when the director deems it necessary or appropriate to help stabilize the

finances, restructure the debts, or assist with the financial rehabilitation and recovery

of the municipality in need of stabilization and recovery; (r) exercising on behalf of the municipality in need of stabilization and recovery

any authority granted to a municipality pursuant to the “Redevelopment Area Bond Financing

Law,” P.L.2001, c. 310 ( C.40A:12A-64 et seq. ) when the director deems it necessary or appropriate to help stabilize the finances,

restructure the debts, or assist with the financial rehabilitation and recovery of

the municipality in need of stabilization and recovery; (s) exercising on behalf of the municipality in need of stabilization and recovery

any authority granted to a municipality pursuant to the “Long Term Tax Exemption Law,” P.L.1991, c. 431 ( C.40A:20-1 et seq. ) when the director deems it necessary or appropriate to help stabilize the finances,

restructure the debts, or assist the financial rehabilitation and recovery of the

municipality in need of stabilization and recovery; (t) authorizing and filing, on behalf of the municipality in need of stabilization

and recovery, subject only to the written approval of the majority of the members

of the legislative Joint Budget Oversight Committee, a petition and other pleadings

and papers with any United States court or federal bankruptcy court for the purpose

of effecting a plan of readjustment or composition of debts as set forth in R.S.52:27-40 et seq. , and taking any other and further actions necessary or appropriate in connection

with any case or proceeding; and (u) negotiating and executing any contracts, agreements, or other documents on behalf

of the municipality in need of stabilization and recovery as may be necessary or appropriate

to effectuate any of the actions or steps specifically identified in P.L.2016, c. 4 ( C.52:27BBBB-1 et al.) or that may otherwise, as the director deems necessary or appropriate, help

stabilize the finances, restructure the debts, or assist with the financial rehabilitation

and recovery of the municipality in need of stabilization and recovery. (4) Subject to subsection b. of section 11 of P.L.2016, c. 4 ( C.52:27BBBB-9 ), the Local Finance Board may authorize the director to take any action authorized

to be taken under the “Local Bond Law,” N.J.S.40A:2-1 et seq. , and the “Municipal Qualified Bond Act,” P.L.1976, c. 38 ( C.40A:3-1 et seq. ) by a governing body of a local unit. (5) The provisions of P.L.1941, c. 100 ( C.34:13A-1 et seq. ), and regulations promulgated thereunder, shall in no way infringe on the authority

of the Local Finance Board or the director set forth in this section or any actions

taken by the director pursuant to this section. (6) Any function, power, privilege, or immunity of the municipal governing body that

is not assumed by the Local Finance Board and reallocated to and vested exclusively

in the director pursuant to this section shall remain allocated to and vested in that

governing body unless and until such time as the function, power, privilege, immunity,

or duty may be allocated to and vested exclusively in the Local Finance Board or the

director pursuant to this section. The Local Finance Board or the director may exercise any power implied or incidental

to a power that has been specifically allocated. b. (1) Notwithstanding the provisions of any law, rule, or regulation to the contrary,

including any requirements set forth in R.S.40:49-1 et seq. , the “Senator Byron M. Baer Open Public Meetings Act,” P.L.1975, c. 231 ( C.10:4-6 et seq. ), or R.S.52:27-41 , the director shall have the exclusive authority to pass, adopt, repeal, or amend

any ordinance or resolution of the municipality in need of stabilization and recovery,

modify any meeting agenda of the governing body of the municipality in need of stabilization

and recovery, and negotiate, enter into, amend, or terminate any contract or agreement,

on behalf of the municipality in need of stabilization and recovery, provided that

the director deems the action necessary or appropriate to help stabilize the finances,

restructure the debts, or assist with the financial rehabilitation and recovery of

the municipality in need of stabilization and recovery. (2) When exercising powers under this section, the director shall, to the extent practicable,

comply with all notice, hearing, and other requirements to which the municipality

in need of stabilization and recovery is generally subject, but in no instance shall

the director be deemed a “public body” pursuant to the “Senator Byron M. Baer Open

Public Meetings Act,” P.L.1975, c. 231 ( C.10:4-6 et seq. ). (3) The director may issue to the appropriate elected and appointed officials and

employees, agents, and contractors of a municipality in need of stabilization and

recovery the orders that the director deems appropriate to stabilize the finances,

restructure the debts, or assist the financial rehabilitation and recovery of the

municipality in need of stabilization and recovery pursuant to the authority granted

by the Local Finance Board pursuant to this section. Any order by the director shall be binding on the appropriate elected and appointed

officials and employees, agents, and contractors of a municipality in need of stabilization

and recovery and may be enforced as other orders of the director are enforced under

general law. 1

L.2021, c. 124, eff. June 24, 2021.