Bill Text: NJ S286 | 2024-2025 | Regular Session | Amended

New Jersey Senate Bill 286

Bill Title: Permits certain local units and authorities to reduce water, sewer, and stormwater fees and other charges for low-income persons.

Spectrum: Partisan Bill (Democrat 6-0)

Status: (Engrossed) 2024-12-09 - Reported out of Asm. Comm. with Amendments, and Referred to Assembly State and Local Government Committee [S286 Detail]

Download: New_Jersey-2024-S286-Amended.html

[Second Reprint]

SENATE, No. 286

STATE OF NEW JERSEY

221st LEGISLATURE

PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION

Sponsored by:

Senator BRIAN P. STACK

District 33 (Hudson)

Senator TROY SINGLETON

District 7 (Burlington)

Co-Sponsored by:

Senators Mukherji, McKnight, Turner and Timberlake

SYNOPSIS

Permits certain local units and authorities to reduce water, sewer, and stormwater fees and other charges for low-income persons.

CURRENT VERSION OF TEXT

As reported by the Assembly Telecommunications and Utilities Committee on December 9, 2024, with amendments.

An Act concerning certain water and sewerage service rates and stormwater utility fees ¹[,] and¹ amending and supplementing various parts of the statutory law ¹[, and making an appropriation]¹.

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

1. (New section) a. In addition to being authorized to establish rates or schedules as provided for in section 1 of P.L.1994, c.78 (C.40:14A-8.2), any county or municipal sewerage authority, which bills individual retail customer accounts, may, to the extent permitted by federal law, annually establish within its district rates or schedules which provide for a reduction of the periodic rents, rates, fees, or other charges for the use or services of the sewerage system which are charged to or collected from a person residing in the district, provided that:

(1) the person is the owner or tenant of a dwelling unit in the district and the person resides in the dwelling unit;

(2) the household income for the person who resides in the dwelling unit is at or below a percentage of the most recent federal poverty guidelines, which percentage shall be established by the county or municipal sewerage authority, but shall be no greater than the maximum threshold established by the Department of Community Affairs for the Low Income Household Water Assistance Program or a similar program administered by the department for assistance with water bills, sewer bills, or both, or in the absence of such a program, the Low Income Home Energy Assistance Program administered by the department;

(3) non-household members do not pay for the costs of sewer service on behalf of the person;

(4) the household does not consist entirely of students who are tax dependents of another household; and

(5) the person does not receive a reduction or total abatement of the periodic rents, rates, fees, or other charges under section 1 of P.L.1994, c.78 (C.40:14A-8.2) offered by the county or municipal sewerage authority.

b. A county or municipal sewerage authority that establishes a reduction pursuant to subsection a. of this section shall adopt procedures for establishing eligibility and obtaining a reduction, and shall advertise the availability of the reduction in the bills submitted to residents in the district for periodic rents, rates, fees, or other charges for the use or services of the sewerage system, or in special periodic mailings to residents in the district. For purposes of establishing eligibility, a resident shall, at minimum, provide information and documentation concerning identity, income,

household, and ownership or tenancy. The annual application deadline shall be established no later than 60 days prior to the close of the fiscal year unless the county or municipal sewerage authority has obtained approval of an application made pursuant to subsection d. of this section.

c. The provisions of this section shall apply only if a county or municipal sewerage authority determines that, with regard to its annual budget, there is a sufficient amount of unrestricted net position available to be set aside and designated to offset the projected loss in revenues that may be attributable to providing a reduction permitted pursuant to subsection a. of this section.

d. Notwithstanding subsection c. of this section to the contrary, a county or municipal sewerage authority may request approval from the Director of the Division of Local Government Services to fund a reduction established pursuant to subsection a. of this section from its enterprise fund. The director shall approve the application if the authority can demonstrate that, based on a rate study conducted pursuant to section 11 of P.L. 2021, c.184 (C.40A:5A-10.1), the reduction will not result in:

(1) an unreasonable increase in average residential rates, rents, fees, and charges; or

(2) the authority having insufficient funds to maintain the integrity of its system infrastructure.

e. As used in this section:

"Dwelling unit" means a structure, or portion thereof, which serves primarily as a residence for one or more persons.

"Household income" means the total income from all sources during the last full calendar year of an owner or tenant of a dwelling unit in the district and any individual or group of individualsresiding with the owner or tenant such that the owner or tenant, together with the individual or group of individuals, live together as one economic unit for whom sewer service is customarily provided in common.

2. (New section) a. In addition to being authorized to establish rates or schedules as provided for in section 1 of P.L.1992, c.215 (C.40:14B-22.2), any municipal authority, which bills individual retail customer accounts, may, to the extent permitted by federal law, annually establish within its district rates or schedules which provide for a reduction of the periodic rents, rates, fees, or other charges for the use or services of the sewerage system, the water system, or both the sewerage system and the water system, which are charged to or collected from a person residing in the district, provided that:

(1) the person is the owner or tenant of a dwelling unit in the district and the person resides in the dwelling unit;

(2) the household income for the person who resides in the dwelling unit is at or below a percentage of the most recent federal poverty guidelines, which percentage shall be established by the municipal authority, but shall be no greater than the maximum threshold established by the Department of Community Affairs for the Low Income Household Water Assistance Program or a similar program administered by the department for assistance with water bills, sewer bills, or both, or in the absence of such a program, the Low Income Home Energy Assistance Program administered by the department;

(3) non-household members do not pay for the costs of sewer service on behalf of the person;

(4) the household does not consist entirely of students who are tax dependents of another household; and

(5) the person does not receive a reduction or total abatement of the periodic rents, rates, fees, or other charges under section 1 of P.L.1992, c.215 (C.40:14B-22.2) offered by the municipal authority.

b. A municipal authority that establishes a reduction pursuant to subsection a. of this section shall adopt procedures for establishing eligibility and obtaining a reduction, and shall advertise the availability of the reduction in the bills submitted to residents in the district for periodic rents, rates, fees, or other charges for the use or services of the sewerage system, the water system, or both the sewerage system and the water system, or in special periodic mailings to residents in the district. For purposes of establishing eligibility, a resident shall, at minimum, provide information and documentation concerning identity, income, household, and ownership or tenancy. The annual application deadline shall be established no later than 60 days prior to the close of the fiscal year unless the municipal authority has obtained approval of an application made pursuant to subsection d. of this section.

c. The provisions of subsections a. and b. of this section shall apply only if a municipal authority determines that, with regard to its annual budget, there exists a sufficient amount of unrestricted net position able to be set aside and designated to offset the projected loss in revenues that may be attributable to providing a reduction permitted pursuant to subsection a. of this section.

d. Notwithstanding subsection c. of this section to the contrary, a municipal authority may request approval from the Director of the Division of Local Government Services to fund a reduction established pursuant to subsection a. of this section from its enterprise fund. The director shall approve the application if the authority can demonstrate that, based on a rate study conducted pursuant to section 11 of P.L.2021, c.184 (C.40A:5A-10.1), the reduction will not result in:

(1) an unreasonable increase in average residential rates, rents, fees, and charges; or

(2) the authority having insufficient funds to maintain the integrity of its system infrastructure.

If the authority has completed a rate study pursuant to section 11 of P.L.2021, c.184 (C.40A:5A-10.1) within the period required under regulations promulgated by the Local Finance Board for a municipal authority with a water operation, the authority may use that study in its application to the Director.

e. As used in this section:

"Dwelling unit" means a structure, or portion thereof, which serves primarily as a residence for one or more persons.

3. (New section) a. In addition to being authorized to establish rates or schedules as provided for in section 5 of P.L.1994, c.78 (C.40A:26A-10.1), any local unit operating a county or municipal sewerage facility, which bills individual retail customer accounts, may, to the extent permitted by federal law, annually establish within its district rates or schedules which provide for a reduction of the periodic rents, rates, fees, or other charges for the use or services of the sewerage system which are charged to or collected from a person residing in the district, provided that:

(1) the person is the owner or tenant of a dwelling unit in the district and the person resides in the dwelling unit;

(2) the household income for the person who resides in the dwelling unit is at or below a percentage of the most recent federal poverty guidelines, which percentage shall be established by the local unit operating a county or municipal sewerage facility, but shall be no greater than the maximum threshold established by the Department of Community Affairs for the Low Income Household Water Assistance Program or a similar program administered by the department for assistance with water bills, sewer bills, or both, or in the absence of such a program, the Low Income Home Energy Assistance Program administered by the department;

(3) non-household members do not pay for the costs of sewer service on behalf of the person;

(4) the household does not consist entirely of students who are tax dependents of another household; and

(5) the person does not receive a reduction or total abatement of the periodic rents, rates, fees, or other charges under section 5 of P.L.1994, c.78 (C.40A:26A-10.1) offered by the local unit.

b. A local unit operating a county or municipal sewerage facility that establishes a reduction pursuant to subsection a. of this section shall adopt procedures for establishing eligibility and obtaining a reduction, and shall advertise the availability of the reduction in the bills submitted to residents in the district for periodic rents, rates, fees, or other charges for the use or services of the sewerage system, or in special periodic mailings to residents in the district. For purposes of establishing eligibility, a resident shall, at minimum, provide information and documentation concerning identity, income, household, and ownership or tenancy. The annual application deadline shall be established no later than March 15th, or October 15th in the case of a municipality with a State Fiscal Year budget cycle, unless the local unit has obtained approval of an application made pursuant to subsection d of this section.

c. The provisions of subsections a. and b. of this section shall apply only if a local unit operating a county or municipal sewerage facility determines that, with regard to its annual budget, there is a sufficient amount ofundesignated fund balance in the local unit's budget or, if the local unit operates the county or municipal sewerage facility as a sewer utility or as part of a combined water and sewer utility, the utility budget available to be set aside and designated to offset the projected loss in revenues that may be attributable to providing a reduction permitted pursuant to subsection a. of this section.

d. Notwithstanding subsection c. of this section to the contrary, a local unit operating a county or municipal sewerage facility may request approval from the Director of the Division of Local Government Services to use their current fund or, if the local unit operates the county or municipal sewerage facility as a sewer utility or as part of a combined water and sewer utility, the operating fund of the utility to offset the projected loss in revenues that may be attributable to providing a reduction permitted pursuant to subsection a. of this section. The director shall approve the application if the local unit can demonstrate that, based on a rate study conducted pursuant to section 6 of P.L.2021, c.184 (C.40A:4-35.2) the proposed reduction will not result in either:

(1) an unreasonable increase in average residential rates, rents, fees and charges; or

(2) insufficient funds to ensure the integrity of the sewerage system infrastructure.

e. As used in this section:

"Dwelling unit" means a structure, or portion thereof, which serves primarily as a residence for one or more persons.

4. (New section) a. In addition to being authorized to establish rates or schedules as provided for in section 7 of P.L.1994, c.78 (C.40A:31-10.1), a local unit operating a county or municipal water supply facility, which bills individual retail customer accounts, may, to the extent permitted by federal law, annually establish within its district rates or schedules which provide for a reduction of the periodic rents, rates, ²fees,² or other charges for water supply service which are charged to or collected from a person residing in the district, provided that:

(1) the person is the owner or tenant of a dwelling unit in the district and the person resides in the dwelling unit;

(2) the household income for the person who resides in the dwelling unit is at or below a percentage of the most recent federal poverty guidelines, which percentage shall be established by the local unit operating a county or municipal water supply facility, but shall be no greater than the maximum threshold established by the Department of Community Affairs for the Low Income Household Water Assistance Program or a similar program administered by the department for assistance with water bills, sewer bills, or both, or in the absence of such a program, the Low Income Home Energy Assistance Program administered by the department;

(3) non-household members do not pay for the costs of sewer service on behalf of the person;

(4) the household does not consist entirely of students who are tax dependents of another household; and

(5) the person does not receive a reduction or total abatement of the periodic rents, rates, fees, or other charges under section 7 of P.L.1994, c.78 (C.40A:31-10.1) offered by the local unit.

b. A local unit operating a county or municipal water supply facility that establishes a reduction pursuant to subsection a. of this section shall adopt procedures for establishing eligibility and obtaining a reduction, and shall advertise the availability of the reduction in the bills submitted to residents in the district for periodic rents, rates, ²fees,² or other charges for water supply service, or in special periodic mailings to residents in the district. For purposes of establishing eligibility, a resident shall, at minimum, provide information and documentation concerning identity, income, household, and ownership or tenancy. The annual application deadline shall be established no later than March 15th, or October 15th in the case of a municipality with a State Fiscal Year budget cycle, unless the local unit has obtained approval of an application made pursuant to subsection ²[d] d.² of this section.

c. The provisions of subsections a. and b. of this section shall apply only if a local unit operating a county or municipal water supply facility determines that, with regard to its annual budget, there is a sufficient amount of undesignated fund balance in the local unit's budget or, if the local unit operates a county or municipal water facility as a water utility or as part of a combined water and sewer utility, the utility budget available to be set aside and designated to offset the projected loss in revenues that may be attributable to providing a reduction permitted pursuant to subsection a. of this section.

d. Notwithstanding subsection c. of this section to the contrary, a local unit operating a county or municipal water supply facility may request approval from the Director of the Division of Local Government Services to use their current fund or, if the local unit operates the county or municipal water facility as a water utility or as part of a combined water and sewer utility, the operating fund of the utility budget to offset the projected loss in revenues that may be attributable to providing a reduction permitted pursuant to subsection a. of this section. The director shall approve the application if the local unit can demonstrate that, based on a rate study conducted pursuant to section 6 of P.L.2021, c.184 (C.40A:4-35.2) the proposed reduction will not result in either an unreasonable increase in the average residential rates, rents, fees and charges, or insufficient funds to ensure the integrity of its system infrastructure. If the local unit has already completed a rate study pursuant to section 6 of P.L.2021, c.184 (C.40A:4-35.2) within the period required by regulations adopted by the Local Finance Board, the local unit may use that study in its application to the director.

e. As used in this section:

"Dwelling unit" means a structure, or portion thereof, which serves primarily as a residence for one or more persons.

"Household income" means the total income from all sources during the last full calendar year of an owner or tenant of a dwelling unit in the district and any individual or group of individuals residing with the owner or tenant such that the owner or tenant, together with the individual or group of individuals, live together as one economic unit for whom sewer service is customarily provided in common.

5. (New section) a. In addition to being authorized to establish fees and other charges as provided in section 8 of P.L.2019, c.42 (C.40A:26B-8), any county, municipality, or authority that establishes a stormwater utility may, to the extent permitted by federal law, provide for a reduction in the fees and other charges it collects from a person residing in the stormwater utility's service area, provided that:

(1) the person is the owner or tenant of a dwelling unit in the stormwater utility's service area and the person resides in the dwelling unit;

(2) the household income for the person who resides in the dwelling unit is at or below a percentage of the most recent federal poverty guidelines, which percentage shall be established by the county, municipality, or authority, but shall be no greater than the maximum threshold established by the Department of Community Affairs for the Low Income Household Water Assistance Program or a similar program administered by the department for assistance with water bills, sewer bills, or both, or in the absence of such a program, the Low Income Home Energy Assistance Program administered by the department;

(3) non-household members do not pay for the costs of sewer service on behalf of the person; and

(4) the household does not consist entirely of students who are tax dependents of another household.

b. A county, municipality, or authority that establishes a reduction in fees and other charges pursuant to subsection a. of this section shall adopt procedures for establishing eligibility and obtaining a reduction, and shall advertise the availability of the reduction in the bills submitted to residents in the stormwater utility's service area for fees and other charges for stormwater management, or in special periodic mailings to residents in the stormwater utility's service area. For purposes of establishing eligibility, a resident shall, at minimum, provide information and documentation concerning identity, income, household, and ownership or tenancy. The annual application deadline shall be established no later than March 15th, or October 15th in the case of a municipality with a State Fiscal Year budget cycle, unless the local unit has obtained approval of an application made pursuant to subsection d. of this section.

c. The provisions of subsections a. and b. of this section shall apply only if a county, municipality, or authority that establishes a stormwater utility determines that, with regard to its annual budget, there is available an undesignated fund balance in the stormwater utility budget or the budget of another utility with which stormwater is combined,or in the case of an authority there exists a sufficient amount of unrestricted net position, able to be set aside and designated to offset the projected loss in revenues that may be attributable to providing a reduction permitted pursuant to subsection a. of this section.

d. Notwithstanding subsection c. of this section to the contrary, a county, municipality, or authority that establishes a stormwater utility may request approval from the Director of the Division of Local Government Services to use their utility operating fund or authority enterprise fund, as applicable, to offset the projected loss in revenues that may be attributable to providing a reduction permitted pursuant to subsection a. of this section. The director shall approve the application if the local unit can demonstrate that, based on a rate study conducted pursuant to section 6 of P.L.2021, c.184 (C.40A:4-35.2) or section 11 of P.L.2021, c.184 (C.40A:5A-10.1), as applicable, the proposed reduction will not result in either an unreasonable increase in the average residential rates, rents, fees and charges, or insufficient funds to ensure the integrity of its system infrastructure.

e. As used in this section:

"Dwelling unit" means a structure, or portion thereof, which serves primarily as a residence for one or more persons.

6. Section 1 of P.L.2017, c.290 (C.40:14A-4.2) is amended to read as follows:

1. a. Notwithstanding the provisions of any other law to the contrary, the budget of a regional sewerage authority that was created pursuant to the provisions of P.L.1946, c.138 (C.40:14A-1 et seq.), and that is located in a county of the first class with a population of over 600,000 and a population density of over 10,000 persons per square mile according to the latest federal decennial census shall be subject to the following provisions:

(1) (a) The percentage of growth in the fee-funded appropriations in the annual budget of a regional sewerage authority shall not exceed two percent per year; and the amount billed to customers of the authority, or the amount billed to a local unit for its proportional share of the authority's expenses, as the case may be, shall not exceed that amount billed in the previous budget year to each customer or local unit, as the case may be, by more than two percent for a similar amount of use or service of the sewerage system.

(b) A regional sewerage authority may add to the allowable growth in fee-funded appropriations in any one of the next three succeeding years, the amount of the difference between the maximum allowable increase in fee-funded appropriations for the current budget year pursuant to subparagraph (a) of this paragraph and the actual amount of fee-funded appropriations for the current budget year.

(2) The percentage of growth in the fee-funded appropriations in the annual budget of a regional sewerage authority shall be determined without consideration of any amounts appropriated by the authority for:

(a) capital expenditures, including payment of principal or interest on bonds authorized or issued pursuant to the "sewerage authorities law," P.L.1946, c.138 (C.40:14A-1 et seq.);

(b) increases in pension contributions and accrued liability for pension contributions in excess of two percent over those expenditures for the previous budget year;

(c) increases in health care costs equal to that portion of the actual increase in total health costs for the budget year that is in excess of two percent of total health care costs in the previous budget year, but is not in excess of the product of the total health care costs in the prior year and the average percentage increase of the State Health Benefits Program, P.L.1961, c.49 (C.52:14-17.25 et seq.), as annually determined by the Division of Pensions and Benefits in the Department of the Treasury;

(d) increases in energy cost expenditures in excess of two percent over those expenditures for the previous budget year;

(e) extraordinary costs that are directly related to an emergency;

(f) expenditures for the cost of services mandated by any order of court, by any federal or State statute, or by administrative rule, directive, order, permit, or other legally binding device issued by a State agency which identified the cost as a mandated expenditure on certification to the Local Finance Board by the State agency; and

(g) costs associated with the establishment of a stormwater utility pursuant to P.L.2019, c.42 (C.40A:26B-1 et al.) or for any of the purposes authorized in subsection e. of section 8 of P.L.2019, c.42 (C.40A:26B-8).

(3) Notwithstanding the limitations imposed by paragraph (1) of this subsection, a regional sewerage authority may apply to the Local Finance Board for a waiver to increase its rents, rates, fees, and charges to levels sufficient to:

(a) compensate for loss of revenues due to reductions in the use or service of the sewerage system; or

(b) allow for reasonable increases in rents, rates, fees, or other charges that are necessary to compensate for reductions provided pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill).

(4) Notwithstanding the limitations imposed by paragraph (1) of this subsection, the percentage of growth in the increase of the rents, rates, fees, and charges of a regional sewerage authority shall be determined without consideration of any amounts required to be raised for the purposes set forth in subparagraph (g) of paragraph (2) of this subsection.

As used in this section, "emergency" shall mean any purpose which is not foreseen at the time of the adoption of the annual budget, or for which adequate provision was not made therein, to meet a pressing need for public expenditure to protect or promote the public health, safety, morals, or welfare.

b. After the budget of a regional sewerage authority that is subject to the provisions of subsection a. of this section has been approved by the members of the regional sewerage authority, the budget shall be forwarded to the Director of the Division of Local Government Services for review and approval.

The director shall review the budget to ensure that the budget conforms with the requirements of subsection a. of this section and the "Local Authorities Fiscal Control Law," P.L.1983, c.313 (C.40A:5A-1 et seq.), and that the budgeted expenditures are reasonable in cost and necessary for the performance of the regional sewerage authority.

If the director determines that the budget meets the requirements of this subsection, the director shall approve the budget. If the director does not approve the budget, the director shall return the budget to the members of the regional sewerage authority with written information concerning the reasons for the disapproval of the budget.

To the extent that the provisions of subsection a. of this section conflict with the provisions of the "Local Authorities Fiscal Control Law," P.L.1983, c.313 (C.40A:5A-1 et seq.), subsection a. of this section shall take precedence.

(cf: P.L.2019, c.42, s.19)

7. Section 8 of P.L.1946, c.138 (C.40:14A-8) is amended to read as follows:

8. (a) Every sewerage authority is hereby authorized to charge and collect rents, rates, fees or other charges (in this act sometimes referred to as "service charges") for direct or indirect connection with, or the use or services of, the sewerage system. Such service charges may be charged to and collected from any person contracting for such connection or use or services or from the owner or occupant, or both of them, of any real property which directly or indirectly is or has been connected with the system or from or on which originates or has originated sewage or other wastes which directly or indirectly have entered or may enter the sewerage system, and the owner of any such real property shall be liable for and shall pay such service charges to the sewerage authority at the time when and the place where such service charges are due and payable.

(b) Rents, rates, fees and charges, which may be payable periodically, being in the nature of use or service charges, shall as nearly as the sewerage authority shall deem practicable and equitable be uniform throughout the district for the same type, class and amount of use or service of the sewerage system, except as permitted by section 1 of P.L.1994, c.78 (C.40:14A-8.2) or section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill), and may be based or computed either on the consumption of water on or in connection with the real property, making due allowance for commercial use of water, or on the number and kind of water outlets on or in connection with the real property, or on the number and kind of plumbing or sewerage fixtures or facilities on or in connection with the real property, or on the number of persons residing or working on or otherwise connected or identified with the real property, or on the capacity of the improvements on or connected with the real property, or on any other factors determining the type, class and amount of use or service of the sewerage system, or on any combination of any such factors, and may give weight to the characteristics of the sewage and other wastes and any other special matter affecting the cost of treatment and disposal thereof, including chlorine demand, biochemical oxygen demand, concentration of solids and chemical composition. In addition to any such periodic service charges, a separate charge in the nature of a connection fee or tapping fee, in respect of each connection of any property with the sewerage system, may be imposed upon the owner or occupant of the property so connected. Such connection charges shall be uniform within each class of users, except as provided by section 2 of P.L.2005, c.29 (C.40:14A-8.3) and except as provided by section 2 of P.L.2005, c.173 (C.40:14A-8.4), and the amount thereof shall not exceed the actual cost of the physical connection, if made by the authority, plus an amount computed in the following manner to represent a fair payment toward the cost of the system:

(1) The amount representing all debt service, including but not limited to sinking funds, reserve funds, the principal and interest on bonds, and the amount of any loans and interest thereon, paid by the sewerage authority to defray the capital cost of developing the system as of the end of the immediately preceding fiscal year of the authority shall be added to all capital expenditures made by the authority not funded by a bond ordinance or debt for the development of the system as of the end of the immediately preceding fiscal year of the authority.

(2) Any gifts, contributions or subsidies to the authority received from, and not reimbursed or reimbursable to any federal, State, county or municipal government or agency or any private person, and that portion of amounts paid to the authority by a public entity under a service agreement or service contract which is not repaid to the public entity by the authority, shall then be subtracted.

(3) The remainder shall be divided by the total number of service units served by the authority at the end of the immediately preceding fiscal year of the authority, and the results shall then be apportioned to each new connector according to the number of service units attributed to that connector, to produce the connector's contribution to the cost of the system. In attributing service units to each connector, the estimated average daily flow of sewage for the connector shall be divided by the average daily flow of sewage for the average single family residence in the authority's district to produce the number of service units to be attributed.

The connection fee shall be recomputed at the end of each fiscal year of the authority, after a public hearing is held in the manner prescribed in subsection (c) of this section. The revised connection fee may be imposed upon those who subsequently connect in that fiscal year to the system. The combination of such connection fee or tapping fee and the aforesaid periodic service charges shall meet the requirements of subsection (c) hereof.

(c) The sewerage authority shall prescribe and from time to time when necessary revise a schedule of service charges, which shall comply with the terms of any contract of the sewerage authority and in any event shall be such that the revenues of the sewerage authority will at all times be adequate to pay all expenses of operation and maintenance of the sewerage system, including reserves, insurance, extensions, and replacements, and to pay punctually the principal of and interest on any bonds and to maintain such reserves or sinking funds therefor as may be required by the terms of any contract of the sewerage authority or as may be deemed necessary or desirable by the sewerage authority. Said schedule shall thus be prescribed and from time to time revised by the sewerage authority after public hearing thereon which shall be held by the sewerage authority at least 20 days after notice of the proposed adjustment is mailed to the clerk of each municipality serviced by the authority and publication of notice of the proposed adjustment of the service charges and of the time and place of the public hearing in at least two newspapers of general circulation in the area serviced by the authority. The sewerage authority shall provide evidence at the hearing showing that the proposed adjustment of the service charges is necessary and reasonable, and shall provide the opportunity for cross-examination of persons offering such evidence, and a transcript of the hearing shall be made and a copy thereof shall be available upon request to any interested party at a reasonable fee; or in lieu of providing a transcript of the hearing, the sewerage authority may provide any interested party with a live recording of the hearing without cost to the interested party. The sewerage authority may provide the live recording to an interested party in an audiovisual format with video and audio, or in a format without live video. The authorization to provide a live recording under this subsection shall not limit any duty of the sewerage authority to provide a government record as required pursuant to P.L.1963, c.73 (C.47:1A-1 et seq.), known as the open public records act. The sewerage authority shall likewise fix and determine the time or times when and the place or places where such service charges shall be due and payable and may require that such service charges shall be paid in advance for periods of not more than one year. A copy of such schedule of service charges in effect shall at all times be kept on file at the principal office of the sewerage authority and shall at all reasonable times be open to public inspection.

(d) Any county sewerage authority may establish sewerage regions in portions of the district. Rents, rates, fees and charges which may be payable periodically, being in the nature of use or service charges, shall as nearly as the sewerage authority shall deem practicable and equitable, be uniform throughout the district for the same type, class and amount of use or service of the sewerage systems, except as permitted by section 1 of P.L.1994, c.78 (C.40:14A-8.2), and shall meet all other requirements of subsection (b) hereof.

(cf: P.L.2023, c.39, s.1)

8. Section 21 of P.L.1957, c.183 (C.40:14B-21) is amended to read as follows:

21. a. Every municipal authority is hereby authorized to charge and collect rents, rates, fees or other charges (in this act sometimes referred to as "water service charges") for direct or indirect connection with, or the use, products or services of, the water system, or for sale of water or water supply services, water supply facilities or products. Such water service charges may be charged to and collected from any person contracting for such connection or use, products or services or for such sale or from the owner or occupant, or both of them, of any real property which directly or indirectly is or has been connected with the water system or to which directly or indirectly has been supplied or furnished such use, products or services of the water system or water or water supply services, water supply facilities or products, and the owner of any such real property shall be liable for and shall pay such water service charges to the municipal authority at the time when and place where such water service charges are due and payable. Such rents, rates, fees and charges shall as nearly as the municipal authority shall deem practicable and equitable be uniform throughout the district for the same type, class and amount of use, products or services of the water system, except as permitted by section 1 of P.L.1992, c.215 (C.40:14B-22.2) or section 2 of P.L. c. (C. ) (pending before the Legislature as this bill), and may be based or computed either on the consumption of water on or in connection with the real property, or on the number and kind of water outlets on or in connection with the real property, or on the number and kind of plumbing fixtures or facilities on or in connection with the real property, or on the number of persons residing or working on or otherwise connected or identified with the real property, or on the capacity of the improvements on or connected with the real property, or on any other factors determining the type, class and amount of use, products or services of the water system supplied or furnished, or on any combination of such factors, and may give weight to the characteristics of the water or water services, facilities or products and, as to service outside the district, any other matter affecting the cost of supplying or furnishing the same, including the cost of installation of necessary physical properties.

Every municipal authority that furnishes water supply services or operates water supply facilities shall establish a rate structure that provides for uniform water service charges for water supply service and fire protection systems.

No municipal authority may impose standby fees or charges for any fire protection system to a residential customer served by a water service line of two inches or less in diameter.

Nothing in this section shall preclude a municipal authority from requiring separate dedicated service lines for fire protection. A municipal authority may require that fire service lines be metered. Nothing in this section shall alter the liability for maintenance and repair of service lines which exists on the effective date of P.L.2003, c.278.

b. In addition to any such water service charges, a separate charge in the nature of a connection fee or tapping fee, in respect of each connection of any property with the water system, may be imposed upon the owner or occupant of the property so connected. Such connection charges shall be uniform within each class of users, except as provided by section 5 of P.L.2005, c.29 (C.40:14B-22.3) and except as provided by section 5 of P.L.2005, c.173 (C.40:14B-22.4), and the amount thereof shall not exceed the actual cost of the physical connection, if made by the authority, plus an amount computed in the following manner to represent a fair payment toward the cost of the system:

(1) The amount representing all debt service, including but not limited to sinking funds, reserve funds, the principal and interest on bonds, and the amount of any loans and interest thereon, paid by a municipal authority to defray the capital cost of developing the system as of the end of the immediately preceding fiscal year of the authority shall be added to all capital expenditures made by the authority not funded by a bond ordinance or debt for the development of the system as of the end of the immediately preceding fiscal year of the authority.

(3) The remainder shall be divided by the total number of service units served by the authority at the end of the immediately preceding fiscal year of the authority, and the results shall then be apportioned to each new connector according to the number of service units attributed to that connector, to produce the connector's contribution to the cost of the system. In attributing service units to each connector, the estimated average daily flow of water for the connector shall be divided by the average daily flow of water to the average single family residence in the authority's district, to produce the number of service units to be attributed.

c. The connection fee shall be recomputed at the end of each fiscal year of the authority, after a public hearing is held in the manner prescribed in section 23 of P.L.1957, c.183 (C.40:14B-23). The revised connection fee may be imposed upon those who subsequently connect in that fiscal year to the system. The combination of such connection fee or tapping fee and the aforesaid water service charges all meet the requirements of section 23 of P.L.1957, c.183 (C.40:14B-23).

d. The foregoing notwithstanding, no municipal authority shall impose any charges or fees in excess of the cost of water actually used for any sprinkler system required to be installed in any residential health care facility pursuant to the "Health Care Facilities Planning Act," P.L.1971, c.136 (C.26:2H-1 et seq.) and regulations promulgated thereunder or in any rooming or boarding house pursuant to the "Rooming and Boarding House Act of 1979," P.L.1979, c.496 (C.55:13B-1 et al.) and regulations promulgated thereunder. Nothing herein shall preclude any municipal authority from charging for the actual cost of water main connections, except as provided by section 5 of P.L.2005, c.29 (C.40:14B-22.3) and except as provided by section 5 of P.L.2005, c.173 (C.40:14B-22.4).

(cf: P.L.2005, c.173, s.3)

9. N.J.S.40A:26A-10 is amended to read as follows:

40A:26A-10. After the commencement of operation of sewerage facilities, the local unit or units may prescribe and, from time to time, alter rates or rentals to be charged to users of sewerage services. Rates or rentals being in the nature of use or service charges or annual rental charges, shall be uniform and equitable for the same types and classes of use and service of the facilities, except as permitted by section 5 of P.L.1994, c.78 (C.40A:26A-10.1) or section 3 of P.L. c. (C. ) (pending before the Legislature as this bill). Rates or rentals and types and classes of use and service may be based on any factors which the governing body or bodies of that local unit or units shall deem proper and equitable within the region served.

In fixing rates, rental and other charges for supplying sewerage services, the local unit or units shall establish a rate structure that allows, within the limits of any lawful covenants made with bondholders, the local unit to:

a. Recover all costs of acquisition, construction or operation, including the costs of raw materials, administration, real or personal property, maintenance, taxes, debt service charges, fees and an amount equal to any operating budget deficit occurring in the immediately preceding fiscal year;

b. Establish a surplus in an amount sufficient to provide for the reasonable anticipation of any contingency that may affect the operating of the sewerage facility, and, at the discretion of the local unit or units, allow for the transfer of moneys from the budget for the sewerage facilities to the local budget in accordance with section 5 of P.L.1983, c.111 (C.40A:4-35.1).

(cf: P.L.1994, c.78, s.6)

10. N.J.S.40A:31-10 is amended to read as follows:

40A:31-10. a. After the commencement of operation of water supply facilities, the local unit or units may prescribe and, from time to time, alter rates or rentals to be charged to users of water supply services. Rates or rentals being in the nature of use or service charges or annual rental charges, shall be uniform and equitable for the same type and class of use or service of the facilities, except as permitted by section 7 of P.L.1994, c.78 (C.40A:31-10.1) or section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill). Rates or rentals and types and classes of use and service may be based on any factors which the governing body or bodies of that local unit or units shall deem proper and equitable within the region served.

b. Every local unit operating a municipal water supply facility shall establish a rate structure that provides for uniform rates, rentals, or other charges for water supply service and fire protection systems.

No local unit may impose standby fees or charges for any fire protection system to a residential customer served by a water service line of two inches or less in diameter.

c. In fixing rates, rental and other charges for supplying water services, the local unit or units shall establish a rate structure that allows, within the limits of any lawful covenants made with bondholders, the local unit to:

(1) Recover all costs of acquisition, construction or operation, including the costs of raw materials, administration, real or personal property, maintenance, taxes, debt service charges, fees and an amount equal to any operating budget deficit occurring in the immediately preceding fiscal year;

(2) Establish a surplus in an amount sufficient to provide for the reasonable anticipation of any contingency that may affect the operation of the utility, and, at the discretion of the local unit or units, allow for the transfer of moneys from the budget for the water supply facilities to the local budget in accordance with section 5 of P.L.1983, c.111 (C.40A:4-35.1).

d. No local unit or units shall impose any rates or rentals in excess of the cost of water actually used for any sprinkler system required to be installed in any residential health care facility pursuant to the "Health Care Facilities Planning Act," P.L.1971, c.136 (C.26:2H-1 et seq.) and regulations promulgated thereunder or in any rooming or boarding house pursuant to the "Rooming and Boarding House Act of 1979," P.L.1979, c.496 (C.55:13B-1 et al.) and regulations promulgated thereunder.

e. Nothing in this section shall preclude a local unit operating a municipal water supply facility from requiring separate dedicated service lines for fire protection. The local unit may require that fire service lines be metered. Nothing in this section shall alter the liability for maintenance and repair of service lines which exists on the effective date of P.L.2003, c.278.

(cf: P.L.2003, c.278, s.7)

11. Section 8 of P.L.2019, c.42 (C.40A:26B-8) is amended to read as follows:

8. a. Any county, municipality, or authority that establishes a stormwater utility pursuant to P.L.2019, c.42 (C.40A:26B-1 et al.) may charge and collect reasonable fees and other charges to recover the stormwater utility's costs for stormwater management. These fees and other charges may be charged to and collected from the owner or occupant, or both, of any real property from which originates stormwater runoff which directly or indirectly enters the stormwater management system or the waters of the State. The owner of any such real property shall be liable for and shall pay such fees and charges to the stormwater utility at the time when and place where the fees and charges are due and payable.

b. [Any] Except as provided in section 5 of P.L. c. (C. ) (pending before the Legislature as this bill), any fee or other charge that a county, municipality, or authority charges and collects pursuant to this section shall be based on a fair and equitable approximation of the proportionate contribution of stormwater runoff from a real property.

c. In establishing fees and other charges pursuant to this section, a county, municipality, or authority shall provide for:

(1) a partial fee reduction in the form of a credit for any property that maintains and operates a stormwater management system that complies with the State and local stormwater management standards that were in place at the time the system was approved and that effectively reduces, retains, or treats stormwater onsite;

(2) an additional partial fee reduction in the form of a credit for any property which has installed and is operating and maintaining current stormwater best management practices that reduce, retain, or treat stormwater onsite and which are approved by the county, municipality, or authority;

(3) an additional partial fee reduction in the form of a credit for any property which has installed and is operating and maintaining green infrastructure that reduces, retains, or treats stormwater onsite and which exceeds any requirements for green infrastructure that may be applicable to that property under any rule or regulation adopted by the Department of Environmental Protection or the local stormwater control ordinance; and

(4) an exemption from fees and other charges for land actively devoted to agricultural or horticultural use that is valued, assessed, and taxed pursuant to the "Farmland Assessment Act of 1964," P.L.1964, c.48 (C.54:4-23.1 et seq.).

d. Any county, municipality, or authority that collects fees and charges pursuant to this section shall remit to the State Treasurer annually an amount equal to five percent of all such fees and charges collected, or $50,000, whichever amount is less. The State Treasurer shall deposit these moneys into the "Clean Stormwater and Flood Reduction Fund" established pursuant to section 17 of P.L.2019, c.42 (C.40A:26B-17).

e. Except as provided in section 5 of P.L.1983, c.111 (C.40A:4-35.1) or section 1 of P.L.2004, c.87 (C.40A:5A-12.1), as applicable, a county, municipality, or authority shall only use fees and other charges collected pursuant to this section to pay for or recover all or a portion of the cost of the following:

(1) initial establishment of a stormwater utility pursuant to P.L.2019, c.42 (C.40A:26B-1 et al.) and ongoing related administrative expenses;

(2) capital expenditures, including planning, design, engineering, acquisition, construction, and improvement of a stormwater management system;

(3) operation and maintenance expenditures of a stormwater management system;

(4) development and implementation of an asset management program for a stormwater management system;

(5) development and implementation of a stormwater management plan and stormwater control ordinances pursuant to section 1 of P.L.1981, c.32 (C.40:55D-93);

(6) any action required pursuant to any New Jersey Pollutant Discharge Elimination System permit;

(7) development and implementation of any long-term control plan to mitigate combined sewer overflows pursuant to State or federal law, rule, regulation, permit, or consent decree;

(8) monitoring, inspection, and enforcement activities to carry out the purposes of P.L.2019, c.42 (C.40A:26B-1 et al.);

(9) public education and outreach related to stormwater management; and

(10) any other purpose related to stormwater management as may be authorized by the department, the Division of Local Government Services in the Department of Community Affairs, or the Local Finance Board pursuant to rules, regulations, or permits.

f. In establishing fees and other charges and appropriate credits pursuant to this section, a county, municipality, or authority shall consult the guidance manual developed pursuant to section 16 of P.L.2019, c.42 (C.40A:26B-16), and other best practice guidance manuals published by industry organizations.

g. An authority that establishes a stormwater utility may, in its discretion, adopt a resolution authorizing the authority to enter into an agreement requiring the total sum of delinquent payments for stormwater fees and charges, plus any interest and penalties, to be paid in equal monthly installments, the amounts of which shall be large enough to satisfy in full the total sum of delinquent payments plus any interest and penalties. The length of the agreement shall not exceed five years in duration. The agreement shall be conditioned upon timely payment of the specified installments and of all current service charges. In case any such installment of arrears or any current service charges are not paid within thirty days after the date when the same is due and payable, then such agreement shall be void and the authority shall file a certification with the municipal tax collector to establish a lien on the parcel of real property for the unpaid balance. The authority shall not be authorized to enter into more than one installment payment agreement for a parcel of property, except that one additional agreement may be authorized by the authority for payment of service charges that became delinquent during a public health emergency or state of emergency sufficiently impacting the service area of the authority. A parcel of property with one such additional agreement shall not be eligible for a third agreement for payment of subsequent service charges becoming delinquent during a public health emergency or state of emergency.

h. Notwithstanding subsection g. of this section to the contrary, an authority establishing a stormwater utility may adopt a resolution authorizing the authority to modify an existing agreement to allow for a temporary reduction in monthly installments, an increase in the duration of the agreement, or both, if a residential customer can demonstrate that their financial circumstances have changed significantly because of factors beyond the residential customer's control. A modified agreement shall require the total sum of delinquent payments, plus any interest and penalties, to be satisfied in full. A modified agreement allowing a residential customer to temporarily reduce a monthly installment obligation shall not require a payment in any given month that is more than 50 percent lower than the highest monthly installment amount set forth in the modified agreement. The duration of the agreement may not be extended beyond five years from the date on which the agreement was originally executed. The agreement shall be conditioned upon timely payment of the specified installments and of all current stormwater fees and charges. In case any such installment of arrears or any current stormwater fees and charges are not paid within thirty days after the date when the same is due and payable, then such agreement shall be void and the authority shall file a certification with the municipal tax collector to establish a lien on the parcel of real property for the unpaid balance.

(cf: P.L.2019, c.42, s.8)

12. Section 6 of P.L.2021, c.184 (C.40A:4-35.2) is amended to read as follows:

6. a. A local unit shall be required to conduct a periodic study of the adequacy and reasonableness of the rates, fees, rents, and charges for a water system that the local unit owns or operates through a utility. The Local Finance Board in the Department of Community Affairs shall adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), the procedures, requirements, and frequency of the study. Each completed study shall be submitted to the Director of the Division of Local Government Services in the Department of Community Affairs along with the annual budget of the local unit. The Local Finance Board in the Department of Community Affairs shall adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), the procedures and requirements for a rate study conducted by a local unit seeking approval to fund from its current fund or a utility current fund, as applicable, a reduction established pursuant to subsection a. of section 1 or subsection a. of section 2 of P.L. , c. (C. or C. ) (pending before the Legislature as this bill), as applicable.

b. The director may summon appropriate officials of the local unit to a hearing before the Local Finance Board if the director determines that the rates, fees, rents, or charges for a water system that the local unit owns or operates through a utility may not be adequate or reasonable as determined by the study conducted pursuant to subsection a. of this section, or if the local unit fails to conduct a study pursuant to subsection a. of this section. The Local Finance Board may require the production of papers, documents, witnesses, or information and may take or cause to be made an audit or investigation of the circumstances with respect to which the hearing was called. After the hearing, the Local Finance Board shall have the power to order the local unit to adjust the utility's water system-related rents, rates, fees, or charges, or take such other action as the Local Finance Board deems appropriate to ensure the integrity of the utility's water infrastructure, and this order shall be valid and enforceable notwithstanding any provision of R.S.48:2-1 et seq. to the contrary.

(cf: P.L.2021, c.184, s.6)

13. Section 11 of P.L.2021, c.184 (C.40A:5A-10.1) is amended to read as follows:

11. a. A municipal utilities authority with a water supply operation shall be required to conduct a periodic study of the adequacy and reasonableness of the rates, fees, rents, or charges for the operation. The Local Finance Board in the Department of Community Affairs shall adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), the procedures, requirements, and frequency of the study. Each completed study shall be submitted to the Director of the Division of Local Government Services in the Department of Community Affairs along with the annual budget of the authority. The Local Finance Board in the Department of Community Affairs shall adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), the procedures and requirements for a rate study conducted by a municipal utilities authority or a county or municipal sewerage authority seeking approval to fund from its current fund a reduction established pursuant to subsection a. of section 1 or subsection a. of section 2 of P.L. , c. (C. or C. ) (pending before the Legislature as this bill), as applicable.

b. The director may summon appropriate officials of the authority to a hearing before the Local Finance Board if the director determines that the authority's rates, fees, rents, or charges may not be adequate or reasonable as supported by a study conducted pursuant to subsection a. of this section, or if the authority fails to conduct a study pursuant to subsection a. of this section. The Local Finance Board may require the production of papers, documents, witnesses, or information and may take or cause to be made an audit or investigation of the circumstances with respect to which the hearing was called. After the hearing, the Local Finance Board shall have the power to order the authority to adjust the rents, rates, fees, or charges for its water supply operation, or take such other action as the Local Finance Board deems appropriate to ensure the integrity of the water infrastructure owned by the authority, and this order shall be valid and enforceable notwithstanding any provision of R.S.48:2-1 et seq. to the contrary.

(cf: P.L.2021, c.184, s.11)

14. Section 6 of P.L. 2020, c.39 (C.40:62-83.2) is amended to read as follows:

6. Notwithstanding the provisions of any law to the contrary, if the Governor has declared a public health emergency pursuant to the "Emergency Health Powers Act," P.L.2005, c.222 (C.26:13-1 et seq.), or a state of emergency, pursuant to P.L.1942, c.251 (C.App.A:9-33 et seq.), or both, in response to a flood, hurricane, superstorm, tornado, natural or other disaster, or public health emergency, then, for the duration of the public health emergency, state of emergency, or both, and for a period up to 90 days after the public health emergency, state of emergency, or both, are no longer in effect, any municipality that owns and operates its water system as a single utility, its sewer system as a single utility, or its water and sewer systems as one utility or that furnishes a supply of water or sewerage service, or both, to the inhabitants of another municipality, may, in its discretion, engage in any combination of the following: (1) not charge interest on the delinquent payment; (2) not place a lien on such parcel of real property for the unpaid balance for any service charge and all interest accruing thereon; or (3) not discontinue service of any property for the failure to pay any amount owing. A [sewerage authority] municipality shall exercise the discretionary authority it is provided under this subsection consistently to all properties, or to all properties of the same use type or other appropriate category.

(cf: P.L.2020, c.39, s.6)

15. Section 21 of P.L.1946, c.138 (C.40:14A-21) is amended to read as follows:

21. (a) In the event that a service charge of any sewerage authority with regard to any parcel of real property shall not be paid as and when due, interest shall accrue and be due to the sewerage authority on the unpaid balance at the rate of 1 1/2 percent per month until such service charge, and the interest thereon, shall be fully paid to the sewerage authority.

(b) In the event that a service charge of any sewerage authority with regard to any parcel of real property owned by any person other than the State or an agency or subdivision thereof shall not be paid as and when due, the unpaid balance thereof and all interest accruing thereon shall be a lien on such parcel. Such lien shall be superior and paramount to the interest in such parcel of any owner, lessee, tenant, mortgagee or other person except the lien of municipal taxes and shall be on a parity with and deemed equal to the lien on such parcel of the municipality where such parcel is situate for taxes thereon due in the same year and not paid when due. Such lien shall not bind or affect a subsequent bona fide purchaser of such parcel for a valuable consideration without actual notice of such lien, unless the sewerage authority shall have filed in the office of the collector or other officer of said municipality charged with the duty of enforcing municipal liens on real property a statement showing the amount and due date of such unpaid balance and identifying such parcel, which identification may be sufficiently made by reference to the assessment map of said municipality. The information shown in such statement shall be included in any certificate with respect to said parcel thereafter made by the official of said municipality vested with the power to make official certificates of searches for municipal liens. Whenever such service charge and any subsequent service charge with regard to such parcel and all interest accrued thereon shall have been fully paid to the sewerage authority, such statement shall be promptly withdrawn or cancelled by the sewerage authority.

(c) In the event that a service charge of any sewerage authority with regard to any parcel of real property shall not be paid as and when due, the sewerage authority may, in its discretion, enter upon such parcel and cause the connection thereof leading directly or indirectly to the sewerage system to be cut and shut off until such service charge and any subsequent service charge with regard to such parcel and all interest accrued thereon shall be fully paid to the sewerage authority.

(d) In the event that a service charge of any sewerage authority with regard to any parcel of real property shall not be paid as and when due, the sewerage authority may, in accordance with section twenty-six of this act, cause the supply of water to such parcel to be stopped or restricted until such service charge and any subsequent service charge with regard to such parcel and all interest accrued thereon shall be fully paid to the sewerage authority. If for any reason such supply of water shall not be promptly stopped or restricted as required by section twenty-six of this act, the sewerage authority may itself shut off or restrict such supply and, for that purpose, may enter on any lands, waters or premises of any county, municipality or other person. The supply of water to such parcel shall, notwithstanding the provisions of this subsection, be restored or increased if the State Department of Health, upon application of the local board of health or health officer of the municipality where such parcel is situate, shall after public hearing find and shall certify to the sewerage authority that the continuance of such stopping or restriction of the supply of water endangers the health of the public in such municipality.

(e) The collector or other officer of every municipality charged by law with the duty of enforcing municipal liens on real property shall enforce, with and as any other municipal lien on real property in such municipality, all service charges and the lien thereof shown in any statement filed with him by any sewerage authority pursuant to subsection (b) of this section, and shall pay over to the sewerage authority the sums or a pro rata share of the sums realized upon such enforcement or upon liquidation of any property acquired by the municipality by virtue of such enforcement.

(f) In the event that any service charge of a sewerage authority shall not be paid as and when due, the unpaid balance thereof and all interest accrued thereon, together with attorney's fees and costs, may be recovered by the sewerage authority in a civil action, and any lien on real property for such service charge and interest accrued thereon may be foreclosed or otherwise enforced by the sewerage authority by action or suit in equity as for the foreclosure of a mortgage on such real property.

(g) All rights and remedies granted by this act for the collection and enforcement of service charges shall be cumulative and concurrent.

(h) Notwithstanding the provisions of this section, if the Governor has declared a public health emergency pursuant to the "Emergency Health Powers Act," P.L.2005, c.222 (C.26:13-1 et seq.), or a state of emergency, pursuant to P.L.1942, c.251 (C.App.A:9-33 et seq.), or both, in response to a flood, hurricane, superstorm, tornado, natural or other disaster, or public health emergency, then, for the duration of the public health emergency, state of emergency, or both and for a period up to 90 days after the public health emergency, state of emergency, or both, are no longer in effect, the sewerage authority may, in its discretion, engage in any combination of the following: (1) not charge interest on the delinquent payment; (2) not place a lien on such parcel of real property for the unpaid balance for any service charge and all interest accruing thereon; or (3) not discontinue service of any property for the failure to pay any amount owing. A sewerage authority shall exercise the discretionary authority it is provided under this subsection consistently to all properties, or to all properties of the same use type or other appropriate category.

(i) Notwithstanding any provision of this section to the contrary, a sewerage authority may, in its discretion, adopt a resolution authorizing the authority to enter into an agreement requiring the total sum of delinquent payments, plus interest and penalties, to be paid in equal monthly installments, the amount of which shall be large enough to satisfy in full the total sum of delinquent payments plus interest and penalties. The length of the agreement shall not exceed five years in duration. The agreement shall be conditioned upon timely payment of the specified installments and of all current service charges. In case any such installment of arrears or any current service charges are not paid within 30 days after the date when the same is due and payable, then such agreement shall be void and the sewerage authority shall file a certification with the municipal tax collector to establish a lien on the parcel of real property for the unpaid balance. The sewerage authority shall not be authorized to enter into more than one installment payment agreement for a parcel of property, except that one additional agreement may be authorized by the authority for payment of service charges that became delinquent during a public health emergency or state of emergency substantially impacting the service area of the authority. A parcel of property with one such additional agreement shall not be eligible for a third agreement for payment of subsequent service charges becoming delinquent during a public health emergency or state of emergency.

(j) Notwithstanding subsection (i) of this section to the contrary, a sewerage authority may adopt a resolution authorizing the authority to modify an existing agreement to allow for a temporary reduction in monthly installments, an increase in the duration of the agreement, or both, if a residential customer can demonstrate that their financial circumstances have changed significantly because of factors beyond the residential customer's control. A modified agreement shall require the total sum of delinquent payments, plus any interest and penalties, to be satisfied in full. A modified agreement allowing a residential customer to temporarily reduce a monthly installment obligation shall not require a payment in any given month that is more than 50 percent lower than the highest monthly installment amount set forth in the modified agreement. The duration of the agreement shall not be extended beyond five years from the date on which the agreement was originally executed. The agreement shall be conditioned upon timely payment of the specified installments and of all current service charges. In case any such installment of arrears or any current service charges are not paid within 30 days after the date when the same is due and payable, then such agreement shall be void and the sewerage authority shall file a certification with the municipal tax collector to establish a lien on the parcel of real property for the unpaid balance.

(cf: P.L.2020, c.39, s.1)

16. Section 42 of P.L.1957, c.183 (C.40:14B-42) is amended to read as follows:

42. a. In the event that a service charge of any municipal authority with regard to any parcel of real property owned by any person other than the State or an agency or subdivision thereof shall not be paid as and when due, the unpaid balance thereof and all interest accruing thereon shall be a lien on such parcel. Such lien shall be superior and paramount to the interest in such parcel of any owner, lessee, tenant, mortgagee or other person except the lien of municipal taxes and shall be on a parity with and deemed equal to the lien on such parcel of the municipality where such parcel is situate for taxes thereon due in the same year and not paid when due. Such lien shall not bind or affect a subsequent bona fide purchaser of such parcel for a valuable consideration without actual notice of such lien, unless the municipal authority shall have filed in the office of the collector or other officer of said municipality charged with the duty of enforcing municipal liens on real property a statement showing the amount and due date of such unpaid balance and identifying such parcel, which identification may be sufficiently made by reference to the assessment map of said municipality. The information shown in such statement shall be included in any certificate with respect to said parcel thereafter made by the official of said municipality vested with the power to make official certificates of searches for municipal liens. Whenever such service charge and any subsequent service charge with regard to such parcel and all interest accrued thereon shall have been fully paid to the municipal authority, such statement shall be promptly withdrawn or canceled by the municipal authority.

b. Notwithstanding the provisions of subsection a. of this section regarding delinquent payments, if the Governor has declared a public health emergency pursuant to the "Emergency Health Powers Act," P.L.2005, c.222 (C.26:13-1 et seq.), or a state of emergency, pursuant to P.L.1942, c.251 (C.App.A:9-33 et seq.), or both, in response to a flood, hurricane, superstorm, tornado, natural or other disaster, or public health emergency that the municipal authority has experienced, then, for the duration of the public health emergency, state of emergency, or both and for a period up to 90 days after the public health emergency, state of emergency, or both, are no longer in effect, the municipal authority may, in its discretion, refrain from placing a lien on such parcel of real property for the unpaid balance for any service charge and all interest accruing thereon. A municipal authority shall exercise the discretionary authority it is provided under this subsection consistently to all properties, or to all properties of the same use type or other appropriate category.

c. Notwithstanding the provisions of this section or section 41 of P.L.1957, c.183 (C.40:14B-41), a municipal authority may, in its discretion, adopt a resolution authorizing the authority to enter into an agreement requiring the total sum of delinquent payments, plus any interest and penalties, to be paid in equal monthly installments, the amounts of which shall be large enough to satisfy in full the total sum of delinquent payments plus any interest and penalties. The length of the agreement shall not exceed five years in duration. The agreement shall be conditioned upon timely payment of the specified installments and of all current service charges. In case any such installment of arrears or any current service charges are not paid within 30 days after the date when the same is due and payable, then such agreement shall be void and the municipal authority shall file a certification with the municipal tax collector to establish a lien on the parcel of real property for the unpaid balance. The municipal authority shall not be authorized to enter into more than one installment payment agreement for a parcel of property, except that one additional agreement may be authorized by the authority for payment of service charges that became delinquent during a public health emergency or state of emergency substantially impacting the service area of the authority. A parcel of property with one such additional agreement shall not be eligible for a third agreement for payment of subsequent service charges becoming delinquent during a public health emergency or state of emergency.

d. Notwithstanding subsection c. of this section to the contrary, a municipal authority may adopt a resolution authorizing the authority to modify an existing agreement to allow for: a temporary reduction in monthly installments, an increase in the duration of the agreement, or both, if a residential customer can demonstrate that their financial circumstances have changed significantly because of factors beyond the residential customer's control. A modified agreement shall require the total sum of delinquent payments, plus any interest and penalties, to be satisfied in full. When a modified agreement allows a residential customer to temporarily reduce the customer's monthly installment obligation, no payment in any given month shall be more than 50 percent lower than the highest monthly installment amount set forth in the modified agreement. The duration of the agreement shall not be extended beyond five years from the date on which the agreement was originally executed. The agreement shall be conditioned upon timely payment of the specified installments and of all current service charges. In case any such installment of arrears or any current service charges are not paid within 30 days after the date when the same is due and payable, then such agreement shall be void and the municipal authority shall file a certification with the municipal tax collector to establish a lien on the parcel of real property for the unpaid balance.

(cf: P.L.2020, c.39, s.3)

17. R.S.54:5-19 is amended to read as follows:

54:5-19. The term "collector" as hereinafter used includes any such officer, and the term "officer" includes the collector.

A municipality shall have the authority to conduct both standard and accelerated tax sales.

When unpaid taxes or any municipal lien, or part thereof, on real property remain in arrears at the close of the fiscal year, the collector or other officer charged by law in the municipality with that duty, shall enforce the lien by selling the property in the manner set forth in this article by holding a standard tax sale in the following fiscal year.

When unpaid taxes or any municipal lien, or part thereof, on real property remains in arrears on the 11th day of the eleventh month in the fiscal year when the taxes or lien became in arrears, the collector or other officer charged by law in the municipality with that duty, shall enforce the lien by selling the property in the manner set forth in this article by conducting an accelerated tax sale by selling the property in the manner set forth in this article, provided that the sale is conducted and completed no earlier than in the last month of the fiscal year. Whenever the due date for the fourth quarter property tax installment payment has been extended for real property pursuant to the provisions of subsection a. of R.S.54:4-67, a municipality shall not conduct an accelerated tax sale with respect to that installment pursuant to this section.

In either a standard or an accelerated tax sale, the municipality may by resolution direct that when unpaid taxes or other municipal liens or charges, or part thereof, are in arrears as of the 11th day of the eleventh month of the fiscal year, such sale shall include only such unpaid taxes or other municipal liens or charges as were in arrears in the fiscal year designated in such resolution, and may by resolution, either general or special, direct that there shall be omitted from such sale any or all such unpaid taxes, and other municipal liens, or parts thereof, on real property, upon which regular, equal monthly installment payments are being made, in pursuance to such agreement as may be authorized by said resolution between the collector and the owner or person interested in the property upon which such delinquent taxes may be due; provided, that said agreement shall require payment of such installment payments in amounts large enough to pay in full all delinquent taxes, assessments and other municipal liens held by the municipality, in not more than five years from the date of such agreement; provided, that the extension of time for payment of such arrearages herein authorized shall not apply to any parcel of property which prior thereto has been included in any plan theretofore adopted by any municipality of this State under and pursuant to the provisions of any public statute of this State whereunder prior extensions for the payment of delinquent taxes were authorized; provided further, that the right of any person interested in such property to pay such arrears in such installments shall be conditioned on the prompt payment of the installments of taxes for the current year in which such agreement is made, and all subsequent taxes, assessments and other municipal liens imposed or becoming a lien thereafter, including all installments thereafter payable on assessments theretofore levied, and also the prompt payment of all installments of arrears as hereinbefore authorized; and provided further, that in case any such installment of arrears or any new taxes, assessments or other liens are not promptly paid, that is to say, within thirty days after the date when the same is due and payable, then such agreement shall be void, and in any such case the collector, or other officer charged by law with that duty, shall proceed to enforce such lien by selling in the manner in this article provided.

If a parcel of property is included in an installment payment plan pursuant to law, and the Governor has declared a public health emergency pursuant to the "Emergency Health Powers Act," P.L.2005, c.222 (C.26:13-1 et seq.), or a state of emergency, pursuant to P.L.1942, c.251 (C.App.A.9-33 et seq.), or both, in response to a flood, hurricane, superstorm, tornado, natural or other disaster, or public health emergency, the governing body of a local unit may by resolution, either general or special, authorize one additional agreement for payment of water, sewer, stormwater, or electric charges that became delinquent during a public health emergency or state of emergency substantially impacting the municipality. A parcel of property with one such additional agreement shall not be eligible for a third agreement for payment of subsequent service charges becoming delinquent during a public health emergency or state of emergency. The agreement shall be conditioned upon timely payment of the specified installments and of all current property taxes and other municipal assessments, liens, and charges. In case any such installment of arrears or any current property taxes and other municipal assessments, liens, and charges are not paid within 30 days after the date when the same is due and payable, then such agreement shall be void and the municipal tax collector, or other officer charged by law with that duty, shall proceed to enforce such lien pursuant to law.

A municipality may adopt a resolution, either general or special, authorizing the modification of an existing agreement ², if a residential customer can demonstrate that their financial circumstances have changed significantly because of factors beyond the residential customer's control,² to allow for ²:² an increase in the duration of the agreement ²[,] ;² a temporary reduction in the portion of monthly installments attributable to delinquent water, sewer, stormwater, and electric charges ²[,] ;² or both ²[, if a residential customer can demonstrate that their financial circumstances have changed significantly because of factors beyond the residential customer's control]². A modified agreement shall require the total sum of delinquent payments, plus any interest and penalties, to be satisfied in full. When a modified agreement allows a residential customer to temporarily reduce their monthly installment obligation, no payment in any given month shall be more than 50 percent lower than the highest monthly installment amount set forth in the modified agreement. The duration of the agreement shall not be extended beyond five years from the date on which the agreement was originally executed. The agreement shall be conditioned upon timely payment of the specified installments and of all current property taxes and other municipal assessments, liens, and charges. In case any such installment of arrears or any current property taxes and other municipal assessments, liens, and charges are not paid within 30 days after the date when the same is due and payable, then such agreement shall be void and in any such case the collector, or other officer charged by law with that duty, shall proceed to enforce such lien by selling in the manner in this article provided.

(cf: P.L.2015, c.203, s.2)

¹[18. There is appropriated from the General Fund to the Division of Local Government Services in the Department of Community Affairs $200,000 to fund the expenses of implementing the rate studies required pursuant to sections 6 and 11 of P.L. 2021, c.184 (C.40A:4-35.2 and C.40A:5A-10.1), and P.L. , c. (C. ) (pending before the Legislature as this bill).]¹

¹[19.] 18.¹ This act shall take effect immediately, but any rate reduction shall remain inoperative until the first day of the fourth month next following the date of enactment. The Local Finance Board may adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), such rules and regulation as may be necessary to effectuate the purposes of this act.

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Bill Text: NJ S286 | 2024-2025 | Regular Session | Amended

New Jersey Senate Bill 286

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