Bill Text: NJ S4081 | 2020-2021 | Regular Session | Amended


Bill Title: Prohibits certain utility discontinuances; establishes Winter Termination Program; requires BPU to include sewer and water public utilities in Winter Termination Program.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Passed) 2021-12-21 - Approved P.L.2021, c.317. [S4081 Detail]

Download: New_Jersey-2020-S4081-Amended.html

[First Reprint]

SENATE, No. 4081

STATE OF NEW JERSEY

219th LEGISLATURE

 

INTRODUCED NOVEMBER 15, 2021

 


 

Sponsored by:

Senator  NILSA I. CRUZ-PEREZ

District 5 (Camden and Gloucester)

 

 

 

 

SYNOPSIS

     Prohibits certain sewer and water utility service discontinuances; establishes Winter Sewer and Water Termination Program; requires BPU to include sewer and water public utilities in Winter Termination Program.

 

CURRENT VERSION OF TEXT

     As reported by the Senate Economic Growth Committee on December 9, 2021, with amendments.

  


An Act concerning certain sewer and water utility service protections and supplementing Title 40A of the New Jersey Statutes and Title 48 of the Revised Statutes.

 

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

 

      1.   1a.1  The provisions of Executive Order No. 246 of 2021 concerning a grace period for residential customers of certain utilities, including paragraphs two through four, nine through 14, 16 through 18, and 21, shall remain in effect for any local authority, municipal utility, and public utility that provides sewer or water service through March 15, 2022. Any residential customer sewer or water service discontinuance occurring between the end of the grace period established pursuant to Executive Order No. 246 of 2021 and the effective date of P.L.    , c.     (C.       ) (pending before the Legislature as this bill) shall be nullified and service shall be restored immediately. Notwithstanding any other provisions of law, a local authority or municipal utility shall not place, sell, or enforce a lien on real property for the unpaid balance of any water or sewer charges until after the expiration of the extended grace period pursuant to this section. The extended grace period provided for in this section shall expire on March 15, 2022.

      1b.  Notwithstanding any other provisions of law, prior to discontinuing service to a residential customer, or placing, selling, or enforcing a lien on real property owned by a residential customer, for the unpaid balance of any electric, gas, or water charges accrued between the declaration of a public health emergency in Executive Order No. 103 of 2020 and the expiration date of the extended grace period established in subsection a. of this section, a local authority, municipal utility, or public utility shall offer to residential customers utility service bill payment plans for the unpaid balance of any water or electric charges accrued between the declaration of a public health emergency in Executive Order No. 103 of 2020 and the expiration date of the extended grace period established in subsection a. of this section.  The utility service bill payment plan shall have a minimum 12-month duration unless the residential customer requests a shorter payback period, and shall not require payment of a down payment, deposit, reconnection costs, interest, or penalties. The local authority, municipal utility, or public utility may offer residential customers a combined payment and payment forgiveness plan with a duration of less than 12 months that involves forgiveness of at least 50 percent of the outstanding principal upon the consent of the residential customer. If a residential customer does not agree to a utility service bill payment plan within 30 days of being offered a plan by the local authority, municipal utility, or public utility, the residential customer shall be deemed to have waived the right to enter into a utility service bill payment plan and the local authority, municipal utility, or public utility may take appropriate enforcement action after the expiration date of the extended grace period pursuant to this section. 

      c. Notwithstanding any other provisions of law, prior to discontinuing service to a residential customer, or placing, selling, or enforcing a lien on real property owned by a residential customer, for the unpaid balance of any sewer charges accrued between January 1, 2022 and the expiration date of the extended grace period established in subsection a. of this section, a local authority, municipal utility, or public utility shall offer to residential customers utility service bill payment plans for the unpaid balance of any sewer charges accrued between January 1, 2022 and the expiration date of the extended grace period established in subsection a. of this Section.  Any unpaid sewer charges accrued between the declaration of a public health emergency in Executive Order 103 No. of 2020 and December 31, 2021 that had not been sold at tax sale as of January 1, 2022 shall also be included in a utility service bill payment plan pursuant to this subsection.  The utility service bill payment plan shall have a minimum 12-month duration unless the residential customer requests a shorter payback period, and shall not require a down payment, deposit, reconnection costs, interest, or penalties. The local authority, municipal utility, or public utility may offer residential customers a combined payment and payment forgiveness plan with a duration of less than 12 months that involves forgiveness of at least 50 percent of the outstanding principal upon the consent of the residential customer. If a residential customer does not agree to a utility service bill payment plan within 30 days of being offered a plan by the local authority, municipal utility, the residential customer shall be deemed to have waived the right to enter into a utility service bill payment plan and the local authority, municipal utility, or public utility may take appropriate enforcement action after the expiration date of the extended grace period pursuant to this section. 

      d.  Utility service bill payment plans offered by municipal utilities and local authorities pursuant to subsections b. and c. of this section shall be subject to the provisions of R.S.54:5-19 pertaining to installment agreements, except as otherwise provided in this section, and that a residential customer shall be offered a utility service bill payment plan for the payment of water, sewer, or electric charges that became delinquent notwithstanding whether a parcel of property is already subject to an installment payment plan pursuant to law.

      e.  No local authority, municipal utility, or public utility shall collect any interest, fee, or charge for late or otherwise untimely payments of electric, gas, or water charges that accrued between the declaration of a public health emergency in Executive Order No. 103 of 2020 and the expiration date of the extended grace period.  A local authority, municipality utility, or public utility may charge and collect fees, interest, and penalties for delinquent water, electric, or gas charges that accrued prior to the declaration of a public health emergency in Executive Order No. 103 of 2020 and after the expiration date of the extended grace period established in subsection a., as permitted by law.

      f.  No local authority, municipal utility, or public utility shall collect any interest, fee, or charge for late or otherwise untimely payments of sewer charges that accrued between January 1, 2022 and the expiration date of the extended grace period, or that accrued between the declaration of a public health emergency in Executive Order No. 103 of 2020 and December 31, 2021 and had not been sold at tax sale as of January 1, 2022.  A local authority, municipality utility, or public utility may charge and collect fees, interest, and penalties for delinquent sewer charges that accrued prior to the declaration of a public health emergency in Executive Order No. 103 of 2020 and after the expiration date of the extended grace period established in subsection a. of this section, as permitted by law.1

 

      2.   As used in sections 2 through 4 of P.L.    , c.      (C.        ) (pending before the Legislature as this bill):

     "Board" means Board of Public Utilities or any successor agency.

     "Department" means the Department of Community Affairs.

     "Local authority" means an authority, as defined in section 3 of P.L.1983, c.313 (C.40A:5A-3), that provides sewer or water service.

     "Municipal utility" means a municipal public utility, as defined in N.J.S.40A:1-1, that provides sewer or water service.

     "Program" means the Winter Sewer and Water Termination Program established pursuant to section 1[2] 31 of P.L.    , c.      (C.        ) (pending before the Legislature as this bill).

     "Residential customer" means a residential local authority or municipal utility customer of record or any residential tenant of a residence where the owner or any agent or other representative of the owner of the residence is a non-residential customer of record.

     "Utility emergency" means any condition constituting a potential danger to life, health, or property requiring a local authority or a municipal utility to 1[immediately]1 discontinue 1[or] ,1 interrupt 1, or maintain the discontinuation or interruption of1 sewer or water service or that results in an unscheduled discontinuance or interruption in sewer or water service.

 

      3.   a.   Within 1[60] 1201 days of the effective date of P.L.    , c.      (C.        ) (pending before the Legislature as this bill), the Department of Community Affairs shall establish a Winter Sewer and Water Termination Program, which shall prohibit a local authority or municipal utility from discontinuing service during the period from November 15 through March 15, to a residential customer deemed qualified for program eligibility by the department. The program shall reflect the provisions of the Winter Termination Program for residential electric and gas public utility service, established by the board and published in the New Jersey Administrative Code, as appropriate for sewer and water service. The program shall include:

     b.    in addition to categorical eligibility for customers receiving assistance under programs specified in the eligibility criteria in the board's Winter Termination Program for residential electric and gas service:

     (1)   categorical eligibility for any customer receiving assistance under the Low Income Household Water Assistance Program established pursuant to the Consolidated Appropriations Act of 2021, Pub.L. 116-260, or any other State or local program that provides assistance specifically to help eligible customers pay sewer or water bills;

     (2)   a process, in a form and manner to be determined by the department, which allows a residential customer to self-certify an inability to pay their local authority or municipal utility bill due to circumstances beyond the customer's control, provided that the circumstances shall include, but not be limited to, unemployment, illness, medically related expenses, recent death of an immediate family member, and any other circumstances that might cause financial hardship; and

     (3)   a requirement that a local authority or municipal utility shall maintain or reconnect water service if a residential customer can demonstrate, in a manner determined by the department, that the customer has met the requirements provided in paragraph (1) of this subsection or the Low Income Household Water Assistance Program established pursuant to the Consolidated Appropriations Act of 2021, Pub.L. 116-260 or any other State, local, or utility program that provides assistance or discounted rates specifically to help eligible customers pay sewer or water bills 1, unless there is a utility emergency1.

 

     4.    The department, in consultation with the Board of Public Utilities, shall promulgate rules and regulations, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), to effectuate the purpose of sections 2 and 3 of P.L.    , c.     (C.       ) (pending before the Legislature as this bill).

 

      5.   As used in sections 5 through 7 of P.L.    , c.       (C.         ) (pending before the Legislature as this bill):

     "Board" means the Board of Public Utilities or any successor agency.

     "Public utility" means a public utility, as defined pursuant to R.S.48:2-13, that provides electric, gas, sewer, or water service.

     "Residential customer" means a residential public utility customer of record or any residential tenant of a residence where the owner or any agent or other representative of the owner of the residence is a non-residential customer of record.

     "Utility emergency" means any condition constituting a potential danger to life, health, or property requiring a sewer or water public utility to 1[immediately]1 discontinue 1[or] ,1 interrupt 1, or maintain the discontinuation or interruption of1 sewer or water service or that results in an unscheduled discontinuance or interruption in sewer or water service.

 

      6.   Within 1[60] 1201 days of the effective date of P.L.    , c.     (C.       ) (pending before the Legislature as this bill), the Board of Public Utilities shall include each sewer and water public utility in the board's Winter Termination Program as established by the board pursuant to rules and regulations adopted by the board and published in the New Jersey Administrative Code. In addition to the inclusion of sewer and water public utilities, the board shall establish within the Winter Termination Program:

     a.     categorical eligibility for any customer receiving assistance under the Low Income Household Water Assistance Program established pursuant to the Consolidated Appropriations Act of 2021, Pub.L. 116-260 or any other State, local, or utility program that provides assistance specifically to help eligible customers pay sewer or water bills;

     b.    a process, in a form and manner to be determined by the board, which allows a residential customer to self-certify an inability to pay their public utility bill due to circumstances beyond the customer's control, provided that the circumstances shall include, but not be limited to, unemployment, illness, medically related expenses, recent death of an immediate family member, and any other circumstances that might cause financial hardship; and

     c.     a requirement that a water public utility shall maintain or reconnect 1[without charge]1 water public utility service if a residential customer can demonstrate, in a manner determined by the board, that the customer has met the requirements provided in subsection a. of this section or the Low Income Household Water Assistance Program established pursuant to the Consolidated Appropriations Act of 2021, Pub.L. 116-260 or any other State, local, or utility program that provides assistance or discounted rates specifically to help eligible customers pay sewer or water bills 1, unless there is a utility emergency1.

     7.    The board shall promulgate rules and regulations, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), to effectuate the purpose of sections 5 and 6 of P.L.    , c.     (C.       ) (pending before the Legislature as this bill).

 

     8.    This act shall take effect immediately.

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