State approves Camden bill that could help fund accused former mayor’s legal costs

New Jersey Gov. Phil Murphy’s administration has approved Camden’s decision to lift a cap on the amount of taxpayer money that can be spent on the legal defense of current and former officials.

The bill, which passed the Camden City Council earlier this month, sparked a backlash from some residents and activists who said it appeared to be designed to benefit former Mayor Dana L. Redd, who was indicted on state racketeering charges in June alongside South Jersey Democratic power broker George E. Norcross III.

After the City Council’s resolution, the matter was brought to the state Department of Social Affairs, which he heads Commissioner Jacquelyn A. Suárezappointed by Murphy. The department oversees Camden’s finances under the law, which is scheduled to expire in January 2025. The budget for 2024 is $214 million provides for state aid in the amount of $131 million.

Camden Mayor Victor Carstarphen signed the bill into law last week, according to a city spokesman. It will come into force after the city publishes a notice of the content of the act.

Ordinance would allow “reasonable attorney’s fees” for current and former public officials in certain circumstances. This is a change from the applicable law adopted in 2002which city officials say sets the maximum wage at $125 an hour.

Similarly to the current ordinance, the recent one would allow the city attorney to refuse defense if he finds, among other things, that the act for which the official is being prosecuted “was the result of actual fraud, willful misconduct or actual malice.”

The state will not approve any legal fees charged by a current or former employee unless the criminal case is resolved in the employee’s favor, which means the charges are dropped or the person is found not guilty, Murphy administration officials say. During City Council meetings, some Camden residents spoke out against a provision in the ordinance that indicated the city would cover employees’ legal fees before any criminal proceedings were resolved. The ordinance added that Camden may seek a refund of the fees if the person is found guilty.

Murphy administration officials said Camden’s recent “reasonable” standard is consistent with laws in other municipalities that receive transitional state aid.

Lisa Ryan, a DCA spokeswoman, said Wednesday that the ordinance “makes important changes” to existing Camden law, “including the payment of reasonable attorneys’ fees and requiring employees who benefit from its provisions to enter into a cooperative agreement or bond with the city.”

“In discussions with the city, we were assured that the common law rules, which only allow defense costs to be reimbursed if it is found that the officer performed his or her duties lawfully and in good faith, would be effective. must be followed,” Ryan said in a statement.

“Without such a determination following a favorable outcome of the criminal investigation,” she said, “this office cannot approve any authorization for the payment of legal fees to a current or former employee.”

Ryan said that under the Municipal Rehabilitation and Economic Recovery Act, the state would be required to approve any Camden resolution to reimburse legal fees for a current or former employee. This law expires in January but may be extended.

Antoinette Milesstate director of New Jersey Working Families Partystated that progress on the regulation was disappointing. “However, knowing that DCA will provide ongoing oversight, we hope and expect that the city will comply with the state’s guidelines,” Miles said.

Redd’s attorney, Henry Klingeman, declined to say whether Redd intends to seek reimbursement from the city. Redd, who served as mayor from 2010 to 2018, has pleaded not guilty to the charges against him.

This article has been updated to include additional context from Murphy administration officials.