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Yes, but the intergovernmental transfer will require the approval of both your current employer as well as of the employer to which you are applying. See NJCSC rules governing intergovernmental transfers.
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Yes, we do use what is commonly known as the "Rice" list to employ qualified police officers who have been recently laid off from other jurisdictions. See NJSA 40A:14-180 and NJAC 4A:4-3.9 and 3.10 wherein eligible candidates may be selected from the Special Employment List.