Bill Text: NJ A3714 | 2016-2017 | Regular Session | Introduced

---

Bill Title: Prohibits sale of municipally-owned sewer or water plant to private entity.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2016-05-19 - Introduced, Referred to Assembly Telecommunications and Utilities Committee [A3714 Detail]

Download: New_Jersey-2016-A3714-Introduced.html

---

ASSEMBLY, No. 3714

STATE OF NEW JERSEY

217th LEGISLATURE

 

INTRODUCED MAY 19, 2016

 

 

Sponsored by:

Assemblyman  TIM EUSTACE

District 38 (Bergen and Passaic)

Assemblyman  DANIEL R. BENSON

District 14 (Mercer and Middlesex)

 

 

 

 

SYNOPSIS

     Prohibits sale of municipally-owned sewer or water plant to private entity.

 

CURRENT VERSION OF TEXT

     As introduced.

  

An Act concerning municipal water and sewer plants, amending R.S.40:62-3, and repealing P.L.2015, c.18.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

1.     R.S.40:62-3 is amended to read as follows:

     40:62-3.  a.  Any municipality owning a [sewer plant, water plant,] heat, light or power plant, system of transportation, or other public utility plant or system, may long-term lease or sell [such] the plant or system.  [Such a] A long-term lease or sale to another municipality, [a sanitary sewerage authority, a sewerage authority or] any [other] authority, commission, or public body shall be authorized by ordinance and may be made upon [such] terms as [said] the ordinance shall provide and the provisions of R.S.40:62-4 and R.S.40:62-5 shall not apply thereto.  [Such a] A long-term lease or sale to any person except another municipality, [a sanitary sewerage authority, a sewerage authority or] any [other] authority, commission, or public body shall, except as otherwise provided by law, be made only upon compliance with the provisions of R.S.40:62-4 and R.S.40:62-5 [and after the same is authorized by the legal voters of the municipality in accordance with said sections, or upon compliance with the provisions of section 2 of P.L.1981, c.16 (C.40:62-3.1) or the "Water Infrastructure Protection Act," sections 1 through 9 of P.L.2015, c.18 (C.58:30-1 et seq.)].

   b.    Any municipality owning a sewer plant or water plant may long-term lease the plant.  The long-term lease to another municipality, a sanitary sewerage authority, a sewerage authority, or any other authority, commission, or public body shall be authorized by ordinance and may be made upon terms as the ordinance shall provide and the provisions of R.S.40:62-4 and R.S.40:62-5 shall not apply thereto.  A long-term lease to any person except another municipality, any authority, commission, or public body shall, except as otherwise provided by law, be made only upon compliance with the provisions of R.S.40:62-4 and R.S.40:62-5.

     c.    A municipality owning a sewer plant or water plant shall not sell the sewer plant or water plant to a private entity.

(cf:  P.L.2015, c.18, s.10)

 

     2.    P.L.2015, c.18 (C.58:30-1 through C.58:30-9) is repealed.

 

     3.    This act shall take effect immediately.

STATEMENT

 

     This bill amends current law to prohibit a municipality owning a sewer plant or water plant to sell the sewer plant or water plant to a private entity.  The bill repeals the "Water Infrastructure Protection Act," sections 1 through 9 of P.L.2015, c.18 (C.58:30-1 et seq.), because the decision to sell or long-term lease assets to a private entity under that law is not subject to public referendum and is therefore susceptible to abuse.