This bill establishes the Office of Leave Time Compliance within the Division of Local Government Services in the Department of Community Affairs (DCA) to ensure that municipal, county, and school district policies adhere to state laws regarding the accumulation and payment of unused sick and vacation leave for employees. The Director of the Division will appoint a qualified coordinator to oversee the office, which will include professional and clerical staff as needed. The coordinator's responsibilities will encompass developing guidelines for local governing bodies, ensuring compliance with existing laws, and conducting assessments of leave accrual systems.

To enforce compliance, the bill mandates that municipalities, counties, and school districts submit information on sick leave payouts, certified by a business administrator or finance officer, to the office. The coordinator will review these systems and either certify compliance or issue a notice of noncompliance along with a corrective action plan. Additionally, if a governing body fails to comply, it will be prohibited from increasing its appropriations until compliance is certified. An annual report detailing sick leave payouts, assessments, enforcement actions, and recommendations will be submitted to the Governor and the Legislature.