A2644

An Act concerning the use of dedicated revenues from the storage of vehicles in a municipal impound lot, and amending N.J.S.40A:4-39.

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

1. N.J.S.40A:4-39 is amended to read as follows:

40A:4-39. a. In the budget of any local unit, dedicated revenues anticipated during the fiscal year from any dog tax, dog license, revenues collected pursuant to N.J.S.18A:39-1.2, solid fuel license, sinking fund for term bonds, bequest, escheat, federal grant, motor vehicle fine dedicated to road repairs, relocation costs deposited into a revolving relocation assistance fund established pursuant to section 2 of P.L.1987, c.98 (C.20:4-4.1a), fee revenues collected in connection with recreation programs operated pursuant to section 2 of P.L.1999, c.292 (C.40:48-2.56), receipts from franchise assessments levied pursuant to section 4 of P.L.1995, c.173 (C.40A:12A-53) to be retained by the municipality, refund payments from a joint insurance fund deposited into a joint insurance revolving fund established pursuant to section 12 of P.L.1996, c.113 (C.40A:10-36.2), fee revenues collected in connection with the "Attorney Identification Card Program" pursuant to section 1 of P.L.2009, c.11 (C.40A:4-22.2), fee revenues imposed on delinquent amounts owed to the county or municipality and collected pursuant to section 37 of P.L.2000, c.126 (C.40:23-6.53) (as amended by section 2 of P.L.2009, c.233) or section 1 of P.L.1983, c.208 (C.40:48-5a) (as amended by section 3 of P.L.2009, c.233), revenues from the storage of vehicles in a municipal impound lot to be dedicated for the maintenance, surveillance, construction expenses, and salaries related to the impound lot, and, subject to the prior written consent of the director, other items of like character when the revenue is not subject to reasonably accurate estimate in advance, may be included in said budget by annexing to said budget a statement in substantially the following form:

"The dedicated revenues anticipated during the year ....... from ........ (here insert one or more of the sources above, as the case may be) are hereby anticipated as revenue and are hereby appropriated for the purposes to which said revenue is dedicated by statute or other legal requirement."

b. Dedicated revenues included in accordance with this section shall be available for expenditure by the local unit as and when received in cash during the fiscal year. The inclusion of such dedicated revenues shall be subject to the approval of the director, who may require such explanatory statements or data in connection therewith as the director deems advisable for the information and protection of the public.

(cf: P.L.2009, c.233, s.4)

2. The Director of the Division of Local Government Services in the Department of Community Affairs shall promulgate those rules and regulations, pursuant to the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.) necessary to effectuate the purposes of this act.

3. This act shall take effect immediately.

STATEMENT

This bill permits municipalities to dedicate revenues raised by the storage of motor vehicles at a municipal impound lot for the maintenance, surveillance, construction expenses, and salaries related to the impound lot. Municipalities are permitted to establish impound lots for the placement of motor vehicles confiscated by law enforcement authorities for violations of municipal ordinances and State laws and charge vehicle owners fees for their storage that are based on the length of time the vehicle remains at the impound lot. Current law requires revenues raised by the storage of motor vehicles to be classified as miscellaneous revenues. Miscellaneous revenues over the amount anticipated in the adopted budget are deposited in the municipality’s current fund and may support general government operations in the next budget year. These revenues may not be used to offset any expenses related to the impound lot in the current budget year.

Municipalities would have the option to dedicate impound lot revenues for these specific purposes through the “dedication by rider” process. A dedication by rider resolution is a request to the Director of the Division of Local Government Services to approve in the budget of a local unit dedicated revenues anticipated to be received during the fiscal year, which are not subject to a reasonably accurate estimate in advance. Upon approval of the resolution, the municipality is permitted to establish a separate trust fund attached to its operating budget to accomplish the purposes of the revenue, provided that cash is on hand for the expenditures to be made. The creation of a separate trust fund for expenditures associated with a municipal impound lot also allows for the continuation of these funds beyond the one-year budget cycle otherwise provided for in the “Local Budget Law.”