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)
SYNOPSIS
Permits certain local units and authorities to reduce water, sewer, and stormwater fees and other charges for low-income persons; appropriates $200,000.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act concerning certain water and sewerage service rates and stormwater utility fees, amending and supplementing various parts of the statutory law, and making an appropriation.
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 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.
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 a