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  • NJ A1492
  • Modifies requirements for local unit to dissolve certain authorities.
In Committee
Crossed OverPassedSignedDead/Failed/Vetoed
2016-2017 Regular Session
This bill would establish a new procedure for municipalities and counties to follow when they seek to dissolve environmental authorities. The bill uses the term "environmental authority" to address sewerage authorities, utilities authorities, county improvement authorities, pollution control financing authorities, incinerator authorities, and solid waste management authorities. The process through which a local unit may dissolve an authority that it has created is set forth in the "Local Authorities Fiscal Control Law," P.L.1983, c.313 (C.40A:5A-1 et seq.). This bill would require local units to comply with a more meaningful and transparent process when they seek to dissolve environmental authorities. Many environmental authorities contribute service charges and investments to infrastructure replenishment and replacement funds in order to ensure the proper operation of sewerage, water, pollution control and waste management facilities. Some municipalities and counties, struggling to balance their budgets under the current economic crisis, have resorted to raiding infrastructure reserves. Decisions to deplete these infrastructure reserves, which fund the maintenance and upgrades of water and sewerage utilities, is the result of short-term thinking. In fact, the New Jersey Clean Water Council, which serves as an advisory board to the Commissioner of Environmental Protection, has published a report, Recommendations on Water Infrastructure Financing (adopted 10 February 2009), outlining the negative impact the loss of funds dedicated for infrastructure sustainability will have on environmental protection. The bill does not prohibit municipalities and counties from dissolving environmental authorities. Rather, it adds transparency to the current dissolution process by allowing ratepayers and bondholders enhanced notice of attempts to dissolve environmental authorities and adequate time for thoughtful review of a proposed dissolution. This bill would maintain New Jersey's clean water and environmental protection efforts while protecting ratepayers and bondholders that have paid service charges to and invested in environmental authorities.
Not specified
Introduced, Referred to Assembly State and Local Government Committee  (on 1/27/2016)
Date Chamber Action Description
1/27/2016 A Introduced, Referred to Assembly State and Local Government Committee
Date Motion Yea Nay Other
None specified