[Third Reprint]

SENATE, No. 1348

STATE OF NEW JERSEY210th LEGISLATURE

DATED: FEBRUARY 4, 2004

SUMMARY

*    This bill creates a loan and grant program in the Department of Community Affairs for the remediation and removal of lead-based paint hazards from residences and creates an inspection program for the identification of lead based paint hazards in multiple dwellings.

*    The bill also establishes a Lead Hazard Control Assistance Fund (LHCAF) for the purpose of funding loans and grants to eligible owners of multifamily housing and to eligible owners of single-family and two-family homes for lead hazard control work in compliance with the terms set forth in the bill. The LHCAF will be funded from a portion of the sales tax revenue equal to $0.50 or the amount of sales tax collected from every retail sale of a container of paint or other surface coating material, and directs that a minimum of $7 million per year, and a maximum of $14 million per year, be set aside from such sales tax revenue.

*    In the first year the bill appropriates $2.0 million from the Catastrophic Illness in Children Relief Fund (CICRF) to the LHCAF for the purpose of making grants.

*    An additional $1.0 million will be drawn from the CICRF in the first year for deposit into the Emergency Lead Poisoning Relocation Fund (ELPRF) established under this bill for the purpose of relocating children and their families who have tested positive for lead poisoning and have been removed from their dwelling unit in connection with an order to abate a lead-based paint hazard, or upon the order of the Commissioner of Community Affairs.

*    In addition, the bill allocates the proceeds of an additional $20 per unit fee collected at the time of the inspections required of multiple dwellings pursuant to the "Hotel and Multiple Dwelling Law," P.L.1967, c.76 (C.55:13A-1 et seq.). The Department of Community Affairs estimates that there are approximately 177,000 multiple dwellings inspected each year. Adjusting this figure downward for the exemptions provided under the bill for seasonal rentals and owner-occupied condominiums, the department has informally advised the Office of Legislative Services that there will be remaining approximately 140,000 multiple dwellings which will likely be subject to inspection for lead-based paint hazards per year under the bill. This will result in $2,800,000 being collected and deposited in to the LHCAF.

BILL DESCRIPTION

      Senate Bill No.1348 (3R) of 2002 establishes the Lead Hazard Control Assistance Fund for the purpose of making loans and grants to the owners of housing units for lead-based paint hazard control work. The bill provides low-interest loans (of not more than $150,000 per dwelling unit) under a program to be established by the Department of Community Affairs (DCA). Grants will be provided under a program to be established by the DCA for owners of single-family and two-family homes and multiple dwellings with no more than four separate dwelling units.

      The bill requires the DCA to maintain a registry of lead-safe housing. The registry could be used to track progress of the State's lead hazard control work programs, as well as to identify lead-safe housing.

      The bill establishes the Emergency Lead Poisoning Relocation Fund and appropriates in the first year from the Catastrophic Illness in Children Relief Fund $1,000,000 for emergency relocation assistance for lead poisoned children.

      The bill requires the DCA to inspect every multiple dwelling for lead-based paint hazards and authorizes the imposition of an additional fee of $20 per unit inspected to be charged for the inspection of lead hazards in multiple dwellings under the "Hotel and Multiple Dwelling Law," P.L.1967, c.76 (C.55:13A-1 et seq.). These additional fees will be deposited into the Lead Hazard Control Assistance Fund. Additionally, the bill requires that a minimum of $7,000,000 of a portion of the sales tax revenue equal to $0.50 or the amount of sales tax collected from every retail sale of a container of paint or other surface coating material be set aside from the sales tax collected from the retail sales of paint for deposit annually into the Lead Hazard Control Assistance Fund, up to a maximum of $14.0 million per year.

FISCAL ANALYSIS

EXECUTIVE BRANCH

      None received.

OFFICE OF LEGISLATIVE SERVICES

      The Office of Legislative Services (OLS) estimates the cost of the establishment of the lead-safe housing grant and loan program and registry pursuant to this bill to be $19.8 million in the first year of the program, and $16.8 million in each of the second and third years of the program. The OLS notes that the bill directs a minimum of $7,000,000, or the amount actually collected up to a maximum of $14,000,000, from a portion of the sales and use tax revenue collected on retail paint sold in New Jersey to be credited annually to the Lead Hazard Control Assistance Fund. In addition, $2.0 million will be appropriated in the first year from the Catastrophic Illness in Children Relief Fund (CICRF) to the Lead Hazard Control Assistance Fund for the purpose of making grants under the program established under the bill.

      The bill also appropriates $1,000,000 in the first year from the Catastrophic Illness in Children Relief Fund into the Emergency Lead Poisoning Relocation Fund for emergency relocation assistance for lead poisoned children.

      The bill imposes a $20 fee (in addition to regular inspection fees) upon the inspection of multiple dwellings under the "Hotel and Multiple Dwelling Law" for lead-based hazards with the proceeds of these funds to be deposited into the Lead Hazard Control Assistance Fund. In addition, the bill provides that the proceeds of penalty fees collected from violations resulting lead-based paint hazards in multiple dwellings be deposited into the Lead Hazard Control Assistance Fund. As noted above, this fee is estimated to produce $2.8 million in new revenue to the fund, based on 140,000 multiple dwelling unit inspections annually to which the fund will pertain.

This fiscal estimate has been prepared pursuant to P.L.1980, c.67.