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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.
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.