A1725 1R

An Act concerning certain telecommunications, cable television, and public utility service discontinuance notices, ¹[amending N.J.S.18A:19-4 and N.J.S.40A:5-16,]¹ and supplementing Title ¹[52] 48¹ of the Revised Statutes.

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

¹[1. N.J.S.18A:19-4 is amended to read as follows:

18A:19-4. a. All claims and demands against the board of education, except those which are to be paid from funds derived from athletic events or other activities of pupil organizations, shall, unless otherwise provided by resolution of the board of education, be examined, audited, and certified in writing by the secretary and presented by the secretary to the board of education for its approval at a regularly called meeting, and if found to be correct, shall be ordered paid by the board of education, whereupon the secretary and the president of the board of education and the chief school administrator shall issue and sign a warrant in payment therefor. In a district which has a treasurer of school moneys, the secretary thereupon shall forward the warrant to the treasurer of school moneys.

b. The provisions of subsection a. of this section shall not apply to payments made by a board of education for the provision of:

(1) telecommunications or basic cable service provided by a telecommunications or cable television company under the jurisdiction of the Board of Public Utilities;

(2) electric, gas, water, or sewer utility service provided by a public utility, as that term is defined pursuant to R.S.48:2-13, that is regulated by the Board of Public Utilities pursuant to Title 48 of the Revised Statutes; or

(3) a service that is provided under a contract between a public utility, as that term is defined pursuant to R.S.48:2-13, and a board of education that is approved by the Board of Public Utilities under which rates for service are controlled by the terms of the contract.

c. An entity providing service to a board of education as described in paragraphs (1), (2), or (3) of subsection b. of this section shall notify the board of education, in writing by certified or registered mail, of any pending service discontinuance due to an unpaid bill at least five business days prior to discontinuing service to any property owned or operated by the board of education.

(cf: P.L.2015, c.177, s.4)]¹

¹[2. N.J.S.40A:5-16 is amended to read as follows:

40A:5-16. The governing body of any local unit shall not pay out any of its moneys:

a. unless the person claiming or receiving payment first presents a detailed bill of items or demand, specifying particularly how the bill or demand is made up, with the certification of the party claiming payment that the bill or demand is correct. The governing body may, by resolution, require an affidavit in lieu of the certification, and the clerk or disbursing officer of the local unit may take the affidavit without cost; and

b. unless the payment carries a written or electronic certification of some officer or duly designated employee of the local unit having knowledge of the facts that the goods have been received by, or the services rendered to, the local unit.

c. Notwithstanding the provisions of subsection a. of this section, upon adoption by the Local Finance Board of rules adopted pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) that provide for procedures to be followed by local units and under those circumstances deemed appropriate by the Local Finance Board, a local unit shall be permitted to pay out its moneys without requiring a certification of the party claiming payment as otherwise required by subsection a. of this section. Those circumstances may include, but shall not be limited to:

(1) when payment to vendors is required in advance of the delivery of certain materials or services that cannot be obtained from any other source at comparable prices;

(2) when ordering, billing, and payment transactions for goods or services are made through a computerized electronic transaction; or

(3) when the claim or demand is less than a threshold set by the Local Finance Board and the certification is not readily obtainable by the contracting unit; but the exceptions shall not include reimbursement of employee expenses or payment for personal services.

d. The provisions of subsection a. of this section shall not apply to payments made by a governing body of a local unit for the provision of:

(1) telecommunications or basic cable service provided by a telecommunications or cable television company under the jurisdiction of the Board of Public Utilities;

(3) a service that is provided under a contract between a public utility, as that term is defined pursuant to R.S.48:2-13, and a governing body that is approved by the Board of Public Utilities under which rates for service are controlled by the terms of the contract.

e. An entity providing service to a local unit as described in paragraphs (1), (2), or (3) of subsection d. of this section shall notify the governing body of a local unit, in writing by certified or registered mail, of any pending service discontinuance due to an unpaid bill at least five business days prior to discontinuing service to any property owned or operated by the local unit.

(cf: P.L.2015, c.177, s.6)]¹

¹[3. (New section)] 1.¹ a. ¹[An] In addition to the provisions of R.S.48:2-24 or any other applicable rule, regulation, or order of the Board of Public Utilities concerning notice of a pending service discontinuance by an entity to a customer, an¹ entity providing service to a ¹board of education, local unit, or¹ State agency shall notify the ¹[State agency] Division of Customer Assistance in the Board of Public Utilities¹, in writing ¹[by certified or registered mail]¹, of any pending service discontinuance due to an unpaid bill at least ¹[five] 14¹ business days prior to discontinuing service to any property owned or operated by the ¹board of education, local unit, or¹ State agency. ¹The notice shall include the name of the customer of record, the location of the premises, the amount owed, a statement of account including payment history, the method of and attempts made for negotiation and resolution, and the scheduled service discontinuance date.¹

b. As used in this section:

¹“Board of education” shall have the same meaning as provided in N.J.S.18A:18A-2.¹

“Entity” means:

(1) a telecommunications or cable television company under the jurisdiction of the Board of Public Utilities that provides telecommunications or basic cable service;

(2) a public utility, as that term is defined pursuant to R.S.48:2-13, that is regulated by the Board of Public Utilities pursuant to Title 48 of the Revised Statutes that provides electric, gas, water, or sewer utility service; or

(3) a public utility, as that term is defined pursuant to R.S.48:2-13, that provides a service to a State agency under a contract approved by the Board of Public Utilities under which rates for the service are controlled by the terms of the contract.

¹“Local unit” shall have the same meaning as provided in N.J.S.40A:5-2.¹

“State agency” means any agency in the executive branch of the State government, including, but not limited to, any department, board, bureau, commission, division, office, council, or instrumentality thereof, or independent agency, public authority or public benefit corporation, and any State college or public institution of higher education.

¹[4.] 2.¹ This act shall take effect immediately, but shall remain inoperative for 60 days following the date of enactment.