Sponsored by:
Senator RONALD L. RICE
District 28 (Essex)
SYNOPSIS
Clarifies intent of P.L.2018, c.74 regarding local government utility connection fees.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning certain local government utility connection fees and amending P.L.2018, c.74.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 2 of P.L.2018, c.74 (C.40:14A-8.5) is amended to read as follows:
2. a. A sewerage authority shall provide a credit applicable toward a connection or tapping fee to be charged for a reconnection of a disconnected property that was previously connected to the sewerage system, provided that:
(1) the property has been connected to the sewerage system for at least 20 years; and
(2) service charges have been paid for the property in at least one of the last five years.
b. The credit required under subsection a. of this section shall be calculated as follows:
(1) If the reconnection does not require any new physical connection or does not increase the nature or size of the service or the number of service units, or does not expand the use of the sewerage system, the credit shall be equal in amount to the new connection or tapping fee.
(2) If the reconnection requires a new physical connection, increases the nature or size of the service or the number of service units, or expands the use of the sewerage system, the credit shall be equal in amount to any connection or tapping fee previously paid for the property, and the sewerage authority shall charge the difference between the credit and the connection or tapping fee for the new use or class.
(3) If no connection or tapping fee was ever paid for the property, but all service charges due and owing on the property have been paid for at least 20 years, the credit shall be equal in amount to the new connection or tapping fee; provided, however, that any charges due and owing pursuant to paragraph (2) of this subsection shall be paid.
c. If no connection or tapping fee was ever paid for a disconnected property that is to be reconnected and which was previously connected to the sewerage system for at least 20 years and all service charges due and owing on the property have not been paid for at least 20 years, the sewerage authority shall charge, in addition to any [amount] charges due and owing [after application of a credit] pursuant to paragraph (2) of subsection b. of this section, a connection or tapping fee equal to the lesser of:
(1) 20 percent of the service charges that would have been paid based upon the usage for the last full year that the property was connected to the sewerage system for the period from the date of the disconnection from the sewerage system to the date of the new connection; or
(2) the new connection fee.
d. A credit shall not be allowed under this section for a property that has been disconnected from the sewerage system for more than five years.
e. As used in this section, "disconnected property" means a property that has been physically disconnected from the sewerage system or a property not physically disconnected but to which service has been discontinued without payments being made. A "disconnected property" shall not include a property that has been temporarily disconnected from the sewerage system or to which service has been discontinued without payments being made for less than 12 consecutive months and is being reconnected as it existed, prior to the temporary disconnection or discontinuance of service.
(cf: P.L.2018, c.74, s.2)
2. Section 5 of P.L.2018, c.74 (C.40:14B-22.5) is amended to read as follows:
5. a. A municipal authority shall provide a credit applicable toward a connection or tapping fee to be charged for a reconnection of a disconnected property that was previously connected to the water or sewerage system, provided that:
(1) the property has been connected to the water or sewerage system for at least 20 years; and
(2) service charges have been paid for the property in at least one of the last five years.
b. The credit required under subsection a. of this section shall be calculated as follows:
(1) If the reconnection does not require any new physical connection or does not increase the nature or size of the service or the number of service units, or does not expand the use of the water or sewerage system, the credit shall be equal in amount to the new connection or tapping fee.
(2) If the reconnection requires a new physical connection, increases the nature or size of the service or the number of service units, or expands the use of the water or sewerage system, the credit shall be equal in amount to any connection or tapping fee previously paid for the property, and the municipal authority shall charge the difference between the credit and the connection or tapping fee for the new use or class.
(3) If no connection or tapping fee was ever paid for the property, but all service charges due and owing on the property have been paid for at least 20 years, the credit shall be equal in amount to the new connection or tapping fee; provided, however, that any charges due and owing pursuant to paragraph (2) of this subsection shall be paid.
c. If no connection or tapping fee was ever paid for a disconnected property that is to be reconnected and which was previously connected to the water or sewerage system for at least 20 years and all service charges due and owing on the property have not been paid for at least 20 years, the municipal authority shall charge, in addition to any [amount] charges due and owing [after application of a credit] pursuant to paragraph (2) of subsection b. of this section, a connection or tapping fee equal to the lesser of:
(1) 20 percent of the service charges that would have been paid based upon the usage for the last full year that the property was connected to the water or sewerage system for the period from the date of the disconnection from the water or sewerage system to the date of the new connection; or
(2) the new connection fee.
d. A credit shall not be allowed under this section for a property that has been disconnected from the water or sewerage system for more than five years.
e. As used in this section, "disconnected property" means a property that has been physically disconnected from the water or sewerage system or a property not physically disconnected but to which service has been discontinued without payments being made. A "disconnected property" shall not include a property that has been temporarily disconnected from the water or sewerage system or to which service has been discontinued without payments being made for less than 12 consecutive months and is being reconnected as it existed, prior to the temporary disconnection or discontinuance of service.
(cf: P.L.2018, c.74, s.5)
3. Section 8 of P.L.2018, c.74 (C.40A:26A-11.2) is amended to read as follows:
8. a. A local unit operating a county or municipal sewerage facility shall provide a credit applicable toward a connection or tapping fee to be charged for a reconnection of a disconnected property that was previously connected to the sewerage system, provided that:
(1) the property has been connected to the sewerage system for at least 20 years; and
(2) service charges have been paid for the property in at least one of the last five years.
b. The credit required under subsection a. of this section shall be calculated as follows:
(1) If the reconnection does not require any new physical connection or does not increase the nature or size of the service or the number of service units, or does not expand the use of the sewerage system, the credit shall be equal in amount to the new connection or tapping fee.
(2) If the reconnection requires a new physical connection, increases the nature or size of the service or the number of service units, or expands the use of the sewerage system, the credit shall be equal in amount to any connection or tapping fee previously paid for the property, and the local unit shall charge the difference between the credit and the connection or tapping fee for the new use or class.
(3) If no connection or tapping fee was ever paid for the property, but all service charges due and owing on the property have been paid for at least 20 years, the credit shall be equal in amount to the new connection or tapping fee; provided, however, that any charges due and owing pursuant to paragraph (2) of this subsection shall be paid.
c. If no connection or tapping fee was ever paid for a disconnected property that is to be reconnected and which was previously connected to the sewerage system for at least 20 years and all service charges due and owing on the property have not been paid for at least 20 years, the local unit shall charge, in addition to any [amount] charges due and owing [after application of a credit] pursuant to paragraph (2) of subsection b. of this section, a connection or tapping fee equal to the lesser of:
(1) 20 percent of the service charges that would have been paid based upon the usage for the last full year that the property was connected to the sewerage system for the period from the date of the disconnection from the sewerage system to the date of the new connection; or
(2) the new connection fee.
d. A credit shall not be allowed under this section for a property that has been disconnected from the sewerage system for more than five years.
e. As used in this section, "disconnected property" means a property that has been physically disconnected from the sewerage system or a property not physically disconnected but to which service has been discontinued without payments being made. A "disconnected property" shall not include a property that has been temporarily disconnected from the sewerage system or to which service has been discontinued without payments being made for less than 12 consecutive months and is being reconnected as it existed, prior to the temporary disconnection or discontinuance of service.
(cf: P.L.2018, c.74, s.8)
4. Section 11 of P.L.2018, c.74 (C.40A:31-11.2) is amended to read as follows:
11. a. A local unit operating a county or municipal water supply facility shall provide a credit applicable toward a connection or tapping fee to be charged for a reconnection of a disconnected property that was previously connected to the water supply system, provided that:
(1) the property has been connected to the water supply system for at least 20 years; and
(2) service charges have been paid for the property in at least one of the last five years.
b. The credit required under subsection a. of this section shall be calculated as follows:
(1) If the reconnection does not require any new physical connection or does not increase the nature or size of the service or the number of service units, or does not expand the use of the water supply system, the credit shall be equal in amount to the new connection or tapping fee.
(2) If the reconnection requires a new physical connection, increases the nature or size of the service or the number of service units, or expands the use of the water supply system, the credit shall be equal in amount to any connection or tapping fee previously paid for the property, and the local unit shall charge the difference between the credit and the connection or tapping fee for the new use or class.
(3) If no connection or tapping fee was ever paid for the property, but all service charges due and owing on the property have been paid for at least 20 years, the credit shall be equal in amount to the new connection or tapping fee; provided, however, that any charges due and owing pursuant to paragraph (2) of this subsection shall be paid.
c. If no connection or tapping fee was ever paid for a disconnected property that is to be reconnected and which was previously connected to the water supply system for at least 20 years and all service charges due and owing on the property have not been paid for at least 20 years, the local unit shall charge, in addition to any [amount] charges due and owing [after application of a credit] pursuant to paragraph (2) of subsection b. of this section, a connection or tapping fee equal to the lesser of:
(1) 20 percent of the service charges that would have been paid based upon the usage for the last full year that the property was connected to the water supply system for the period from the date of the disconnection from the water supply system to the date of the new connection; or
(2) the new connection fee.
d. A credit shall not be allowed under this section for a property that has been disconnected from the water supply system for more than five years.
e. As used in this section, "disconnected property" means a property that has been physically disconnected from the water supply system or a property not physically disconnected but to which service has been discontinued without payments being made. A "disconnected property" shall not include a property that has been temporarily disconnected from the water supply system or to which service has been discontinued without payments being made for less than 12 consecutive months and is being reconnected as it existed, prior to the temporary disconnection or discontinuance of service.
(cf: P.L.2018, c.74, s.11)
5. This act shall take effect immediately.
STATEMENT
This bill would clarify that certain local government utilities are to impose connection fees if service charges due and owing on a disconnected property were not paid for at least 20 years. That circumstance was not expressly addressed by the recently enacted P.L.2018, c.74, which authorized these local government utilities to impose additional connection fees and required certain new credits and reductions be applied to these fees. This bill would resolve any confusion over properties in that situation by specifically providing that they may be subject to connection fees.
The local government entities covered by the bill are: sewerage authorities under the “sewerage authorities law,” P.L.1946, c.138 (C.40:14A-1 et seq.); municipal authorities under the “municipal and county utilities authorities law,” P.L.1957, c.183 (C.40:14B-1 et seq.); and local units operating either a county or municipal sewerage facility or water supply facility under the “Municipal and County Sewerage Act,” N.J.S.40A:26A-1 et seq., and the “County and Municipal Water Supply Act,” N.J.S.40A:31-1 et seq., respectively.