S2807

An Act concerning consolidation of the Newark Watershed Conservation and Development Corporation, the North Jersey District Water Supply Commission, and the Passaic Valley Water Commission.

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

1. a. There is created a committee to be known as the “Newark Watershed Conservation and Development Corporation, North Jersey District Water Supply Commission, and Passaic Valley Water Commission Consolidation Committee.” The purpose of the committee shall be to develop a plan to consolidate the three entities and achieve cost savings for the ratepayers served by each of the entities.

The committee shall consist of seven members, as follows: the Executive Director of the Newark Watershed Conservation and Development Corporation, or the executive director’s designee; the Executive Director of the North Jersey District Water Supply Commission, or the executive director’s designee; the Executive Director of the Passaic Valley Water Commission, or the executive director’s designee; a member of the board of commissioners or trustees, as appropriate, of each of the three entities, appointed by the Governor; and the Commissioner of Environmental Protection, or the commissioner’s designee.

b. Members of the committee as appropriate shall be appointed within 30 days after the effective date of this act. The committee shall organize as soon as practicable, but no later than 30 days following the appointment of its members, and shall select a chairperson from among its members. The chairperson shall appoint a secretary, who need not be a member of the committee.

c. A majority of the membership of the committee shall constitute a quorum for the transaction of committee business, and action may be taken at any meeting by the affirmative vote of a majority of the membership of the committee.

d. Members of the committee shall serve without compensation, but shall be reimbursed for necessary expenses incurred in the performance of their duties as members of the committee, within the limits of funds appropriated or otherwise made available to the committee for its purposes.

2. a. The committee shall submit a report to the Governor, and to the Legislature pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), no later than six months following the organization of the committee concerning consolidation of the Newark Watershed Conservation and Development Corporation, the North Jersey District Water Supply Commission, and the Passaic Valley Water Commission.

b. The report shall contain:

(1) a plan detailing the committee’s recommendations on how to best consolidate the three entities and achieve savings for the ratepayers served by the three entities, for consideration by the Legislature for enactment into law;

(2) the committee’s findings and recommendations concerning potential issues posed by the consolidation including, but not limited to: legal matters, including a review of bond covenants and labor issues; operational matters; financial matters, including costs and savings; and any other matter the committee deems relevant; and

(3) a summary of the public comments received by the committee at the public hearings held pursuant to subsection c. of this section.

c. In preparing the report required pursuant to this section, the committee shall hold three public hearings to solicit public comment from interested groups and the general public on recommendations to consolidate the three entities. The committee shall provide a minimum of seven days notice of each public hearing. The Department of Environmental Protection, the Newark Watershed Conservation and Development Corporation, the North Jersey District Water Supply Commission, and the Passaic Valley Water Commission shall each, in a prominent location on their respective websites, provide notice of the public hearings required pursuant to this subsection. The committee may request the appearance of officials of any State agency or political subdivision of the State at such public hearings and shall allow for testimony of interested groups and the general public.

3. The committee shall be entitled to call to its assistance and avail itself of the services of the employees of any State, county, or municipal department, board, bureau, commission, or agency as it may require and as may be available to it for its purposes, and to employ stenographic and clerical assistance and incur traveling and other miscellaneous expenses necessary to perform its duties, within the limits of funds appropriated or otherwise made available to it for its purposes. If requested by the committee, the Department of Environmental Protection shall provide primary staff support to the committee.

4. This act shall take effect immediately and shall expire on the 60th day after submission of the report required pursuant to section 2 of this act.

STATEMENT

This bill would establish a “Newark Watershed Conservation and Development Corporation, North Jersey District Water Supply Commission, and Passaic Valley Water Commission Consolidation Committee.” The committee is charged with developing a plan to consolidate the three entities and achieve cost savings for the ratepayers served by the entities.

The committee is to consist of seven members, as follows: the Executive Director of each of the entities, or their designees; a commissioner or trustee, as appropriate, from each of the entities, appointed by the Governor; and the Commissioner of Environmental Protection, or the commissioner’s designee.

The committee is to submit a report to the Governor and the Legislature, within six months after organization of the committee, concerning the consolidation of the Newark Watershed Conservation and Development Corporation (NWCDC), the North Jersey District Water Supply Commission (NJDWSC), and the Passaic Valley Water Commission (PVWC). The NWCDC, the NJDWSC, and the PVWC provide water supply services to customers in generally the same geographic area at different rates.

The report to be submitted by the committee is to contain: a plan detailing the committee’s recommendations on the best means to consolidate the three entities; the committee’s findings and recommendations concerning potential issues posed by consolidation; and a summary of the public comments received by the committee on its recommendations to consolidate the entities. The committee would be required to hold three public hearings to solicit public comment on recommendations for consolidation.