S1400

An Act requiring certain common areas and facilities of assisted living facilities to be generator ready and supplementing various parts of the statutory law.

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

1. a. An enforcing agency shall condition issuance of a construction permit for a new assisted living facility upon the installation of appropriate wiring, including a transfer switch, which enables all community rooms, kitchen and dining facilities, medical equipment, and safety systems of the facility to operate with the use of an alternative power generation device.

b. The Commissioner of Community Affairs shall promulgate rules and regulations pursuant to its rule-making authority under the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) in order to effectuate the purposes of this section. Regulations promulgated pursuant to this subsection shall be primarily based on standard 110 established by the National Fire Protection Association and any other national standard, which may be adopted by reference. The regulations adopting standards by reference may include such modifications of these standards as the commissioner deems necessary.

c. For the purposes of this section:

“Alternative power generation device” means a device capable of providing electrical power for the community rooms, kitchen and dining facilities, medical equipment, and safety systems of an assisted living facility upon the failure of the regular electrical power distribution system.

“Assisted living facility” means a facility licensed to operate an assisted living residence pursuant to P.L.1971 c.136 (C.26:2H-1 et seq.).

2. a. No later than one year after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), the owner of an assisted living facility shall install in each facility appropriate wiring, including a transfer switch, which enables all community rooms, kitchen and dining facilities, medical equipment, and safety systems of the facility to operate with the use of an alternative power generation device. No later than two years after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), each enforcing agency shall inspect every assisted living facility within its jurisdiction for compliance with the requirements of this subsection. An owner of an assisted living facility that fails to comply with the requirements of this subsection shall be liable to a penalty of not more than $1,000 for a first offense and not more than $2,500 for each subsequent offense found upon reinspection to be collected by the enforcing agency in a summary proceeding pursuant to the “Penalty Enforcement Law of 1999,” P.L.1999, c.274 (C.2A:58-10 et seq.). The municipal court and the Superior Court shall have jurisdiction of proceedings for the enforcement of the penalties provided by this subsection.

c. For the purposes of this section:

“Assisted living facility” means a facility licensed to operate an assisted living residence pursuant to P.L.1971 c.136 (C.26:2H-1 et seq.).

“Enforcing agency” means the enforcing agency in any municipality provided for under the “State Uniform Construction Code Act,” P.L.1975, c.217 (C.52:27D-119 et seq.) and regulations promulgated thereunder.

3. a. Notwithstanding the provisions of subsection (k) of section 4 of P.L.1945, c.162 (C.54:10A-4), a taxpayer may elect to treat the cost of qualified generator ready wiring equipment, not to exceed $10,000, as an expense which is not chargeable to capital account. A cost treated as an expense shall be allowed as a deduction for the privilege period in which the qualified generator ready wiring equipment is installed.

b. (1) An election under this section for any privilege period shall:

(a) specify the items of qualified generator ready wiring equipment to which the election applies and the portion of the cost of each of those items which is to be taken into account under subsection a. of this section, and

(b) be made on the taxpayer's return of the tax imposed by section 5 of P.L.1945, c. 162 (C.54:10A-5) for the privilege period.

(2) the election shall be made in the manner as the Director of the Division of Taxation in the Department of the Treasury may by regulation prescribe.

(3) An election or specification with respect to a privilege period may be revoked by the taxpayer with respect to any property, and the revocation, once made, shall be irrevocable.

c. The director shall prescribe rules and regulations pursuant to the rule-making authority provided under the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) necessary to carry out the provisions of this section, including, among others, those for determining the adjusted basis of the acquired qualified property for the purposes of the Corporation Business Tax Act (1945), P.L.1945, c.162 (C.54:10A-1 et seq.).

d. For the purposes of this section:

“Qualified generator ready wiring equipment” means any electrical equipment, materials, and switching necessary for an assisted living facility to be powered by an alternative power generation device as required pursuant to section 1 or 2 of P.L. , c. (C. ) (pending before the Legislature as this bill).

4. a. Receipts from sales of qualified generator ready wiring equipment are, subject to the conditions and limitations of this section, exempt from the tax imposed under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.).

b. Notwithstanding the provisions of subsection a. of this section, the seller shall charge and collect the tax imposed pursuant to the “Sales and Use Tax,” P.L.1966, c.30 (C.54:32B-1 et seq.), from the purchaser on sales of qualified generator ready wiring equipment at the rate then in effect, and the tax shall be returned as a rebate to the purchaser by the filing of a claim with the Director of the Division of Taxation in the Department of the Treasury for a rebate of the tax paid.

c. The filing of a claim for a rebate of the tax paid in accordance with this section shall be made by the purchaser on forms furnished by the director, and shall be accompanied by such information and documentation as may be determined to be necessary by the director to verify the tax paid on qualified generator ready wiring equipment. The claim shall be filed within 360 days of the date the qualified generator ready wiring equipment is installed.

d. The director shall review or cause to be reviewed each complete claim filed for a rebate of the tax paid in accordance with this section, and shall determine or cause to be determined the amount to be returned as a rebate for the tax paid in connection with purchases of qualified generator ready wiring equipment based on the tax separately stated on the sales slip, invoice, receipt, or other statement or memorandum given to the purchaser at the time of purchase; provided, however, that the director shall determine the amount to be returned as a rebate for the tax paid in connection with eligible purchases of qualified generator ready wiring equipment made by a contractor on behalf of a purchaser based upon the separately stated cost of the qualified generator ready wiring equipment, or, if the cost for qualified generator ready wiring equipment is not separately stated on the contract, bill, or invoice given to the purchaser by the contractor, the amount to be returned as a rebate shall be based on 50 percent of the total amount of the sales price paid.

e. The director shall return or cause to be returned to each purchaser that has filed a complete claim for a rebate of the tax paid in accordance with this section the amount determined to be returned as a rebate within six months of the date the complete claim is filed.

f. The director shall pay or cause to be paid to a purchaser interest on any amount determined to be returned as a rebate that is not returned within six months of the date the complete claim is filed, as is allowed and paid on overpayments of tax pursuant to section 7 of P.L.1992, c.175 (C.54:49-15.1).

g. Notwithstanding any provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) to the contrary, the director may adopt, immediately upon filing with the Office of Administrative Law, such regulations, including, but not limited to, terms and conditions governing application for and payment of refunds, as the director deems necessary to implement the provisions of this section, which regulations shall be effective for a period not to exceed 180 days from the date of filing. Such regulations may thereafter be amended, adopted, or readopted by the director as the director deems necessary in accordance with the requirements of P.L.1968, c.410.

h. For the purposes of this section:

5. a. Notwithstanding the provisions of N.J.S.54A:5-1 and section 26 of P.L.2004, c.65 (C.54A:5-1.2), a taxpayer may elect to treat the cost of qualified generator ready wiring equipment, not to exceed $10,000, as an expense which is not chargeable to capital account. A cost treated as an expense shall be allowed as a deduction for the taxable year in which the qualified generator ready wiring equipment is installed.

b. (1) An election under this section for any taxable year shall:

(b) be made on the taxpayer's return of the tax imposed by the “Gross Income Tax Act,” N.J.S.54A:1-1 et seq. for the taxable year.

(2) the election shall be made in the manner as the Director of the Division of Taxation in the Department of the Treasury may by regulation prescribe.

(3) An election or specification with respect to a privilege period may be revoked by the taxpayer with respect to any property, and the revocation, once made, shall be irrevocable.

(4) The election under this section shall be made by the business entity of a taxpayer, and shall apply to each owner of the business entity.

c. The director shall prescribe rules and regulations pursuant to the rule-making authority provided under the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) necessary to carry out the provisions of this section, including, among others, those for determining the adjusted basis of the acquired qualified property for the purposes of the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq.

d. For the purposes of this section:

6. Sections 1 through 2 of this act shall take effect on the first day of the fourth month next following the date of enactment, but the Commissioner of Community Affairs may take such anticipatory administrative action in advance thereof as shall be necessary for the implementation of those sections. Sections 3 through 5 of this act shall take effect immediately and shall apply to taxable years beginning after the date of enactment, but the Director of the Division of Taxation in the Department of the Treasury may take such anticipatory administrative action in advance thereof as shall be necessary for the implementation of those sections.

STATEMENT

This bill would require all assisted living facilities in the State to be able to operate certain common areas and facilities with the use of alternative power generation devices. In the aftermath of Hurricane Sandy, assisted living facilities throughout the State were without power for extended periods of time. This bill would require these facilities to be able to use generators to continue to provide fully powered community rooms as well as essential services if power is lost during such an emergency.

The bill would condition the issuance of a construction permit for a new assisted living facility upon the installation of appropriate wiring, including a transfer switch, which enables all community rooms, kitchen and dining facilities, medical equipment, and safety systems of the facility to operate with the use of an alternative power generation device.

The bill would also require all existing assisted living facilities to be retrofitted in the same manner within one year of the date of enactment. An enforcing agency would be required to inspect each such assisted living facility within its jurisdiction to ensure compliance with this requirement within two years of the date of enactment. An owner of such assisted living facility that fails to comply with this requirement would be liable to a penalty of not more than $1,000 for a first offense and not more than $2,500 for each subsequent offense found upon reinspection.

In addition, the bill would provide for a corporation business tax deduction and a gross income tax deduction, not to exceed $10,000 in either case, and a sales tax exemption for the purchase of applicable equipment to help offset the costs to be borne in effectuating the provisions of the bill.