ASSEMBLY, No. 4126

STATE OF NEW JERSEY

219th LEGISLATURE

 

INTRODUCED MAY 4, 2020

 


 

Sponsored by:

Assemblyman  JOSEPH V. EGAN

District 17 (Middlesex and Somerset)

Assemblywoman  NANCY J. PINKIN

District 18 (Middlesex)

 

 

 

 

SYNOPSIS

     Permits local units and authorities to waive interest and lien enforcement for certain delinquent water and sewer utility payments during emergency circumstances.

 

CURRENT VERSION OF TEXT

     As introduced.

  


An Act concerning interest and lien enforcement of certain utility payments during emergencies and amending various parts of the statutory law.

 

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

 

     1.    Section 21 of P.L.1946, c.138 (C.40:14A-21) is amended to read as follows:

     21.  (a)  In the event that a service charge of any sewerage authority with regard  to any parcel of real property shall not be paid as and when due, interest  shall accrue and be due to the sewerage authority on the unpaid balance at the  rate of 1  1/2  % per month until such service charge, and the interest  thereon, shall be fully paid to the sewerage authority.

     (b)   In the event that a service charge of any sewerage authority with regard  to any parcel of real property owned by any person other than the State or an  agency or subdivision thereof shall not be paid as and when due, the unpaid  balance thereof and all interest accruing thereon shall be a lien on such  parcel.  Such lien shall be superior and paramount to the interest in such  parcel of any owner, lessee, tenant, mortgagee or other person except the lien  of municipal taxes and shall be on a parity with and deemed equal to the lien  on such parcel of the municipality where such parcel is situate for taxes  thereon due in the same year and not paid when due.  Such lien shall not bind  or affect a subsequent bona fide purchaser of such parcel for a valuable  consideration without actual notice of such lien, unless the sewerage authority  shall have filed in the office of the collector or other officer of said  municipality charged with the duty of enforcing municipal liens on real  property a statement showing the amount and due date of such unpaid balance and  identifying such parcel, which identification may be sufficiently made by  reference to the assessment map of said municipality. The information shown in  such statement shall be included in any certificate with respect to said parcel  thereafter made by the official of said municipality vested with the power to  make official certificates of searches for municipal liens.  Whenever such  service charge and any subsequent service charge with regard to such parcel and  all interest accrued thereon shall have been fully paid to the sewerage authority, such statement shall be promptly withdrawn or cancelled by the sewerage authority.

     (c)   In the event that a service charge of any sewerage authority with regard  to any parcel of real property shall not be paid as and when due, the sewerage  authority may, in its discretion, enter upon such parcel and cause the  connection thereof leading directly or indirectly to the sewerage system to be  cut and shut off until such service charge and any subsequent service charge  with regard to such parcel and all interest accrued thereon shall be fully paid  to the sewerage authority.

     (d)   In the event that a service charge of any sewerage authority with regard  to any parcel of real property shall not be paid as and when due, the sewerage  authority may, in accordance with section twenty-six of this act, cause the  supply of water to such parcel to be stopped or restricted until such service  charge and any subsequent service charge with regard to such parcel and all  interest accrued thereon shall be fully paid to the sewerage authority.  If for  any any reason such supply of water shall not be promptly stopped or restricted  as required by section twenty-six of this act, the sewerage authority may  itself shut off or restrict such supply and, for that purpose, may enter on any  lands, waters or premises of any county, municipality or other person.  The  supply of water to such parcel shall, notwithstanding the provisions of this  subsection, be restored or increased if the State Department of Health, upon  application of the local board of health or health officer of the municipality  where such parcel is situate, shall after public hearing find and shall certify  to the sewerage authority that the continuance of such stopping or restriction  of the supply of water endangers the health of the public in such  municipality.

     (e)   The collector or other officer of every municipality charged by law with  the duty of enforcing municipal liens on real property shall enforce, with and  as any other municipal lien on real property in such municipality, all service  charges and the lien thereof shown in any statement filed with him by any  sewerage authority pursuant to subsection (b) of this section, and shall pay  over to the sewerage authority the sums or a pro rata share of the sums  realized upon such enforcement or upon liquidation of any property acquired by  the municipality by virtue of such enforcement.

     (f)   In the event that any service charge of a sewerage authority shall not be paid as and when due, the unpaid balance thereof and all interest accrued thereon, together with attorney's fees and costs, may be recovered by the sewerage authority in a civil action, and any lien on real property for such service charge and interest accrued thereon may be foreclosed or otherwise enforced by the sewerage authority by action or suit in equity as for the foreclosure of a mortgage on such real property.

     (g)   All rights and remedies granted by this act for the collection and enforcement of service charges shall be cumulative and concurrent.

     (h)   Notwithstanding the provisions of this section, if the Governor has declared a public health emergency pursuant to the “Emergency Health Powers Act,” P.L.2005, c.222 (C.26:13-1 et seq.), or a state of emergency, pursuant to P.L.1942, c.251 (C.App.A.9-33 et seq.), or both, in response to a flood, hurricane, superstorm, tornado, natural or other disaster, or public health emergency, then, for the duration of the public health emergency, state of emergency, or both and for a period up to 90 days after the public health emergency, state of emergency, or both, are no longer in effect, the sewerage authority may, in its discretion, engage in any combination of the following: (1) not charge interest on the delinquent payment; (2) not place a lien on such parcel of real property for the unpaid balance for any service charge and all interest accruing thereon; or (3) not discontinue  service of any property for the failure to pay any amount owing.  A sewerage authority shall exercise the discretionary authority it is provided under this subsection consistently to all properties, or to all properties of the same use type or other appropriate category.

(cf: P.L.1981, c.530, s.1)

 

     2.    Section 41 of P.L.1957, c.183 (C.40:14B-41) is amended to read as follows:

     41.  a.  In the event that a service charge of any municipal authority with regard to any parcel of real property shall not be paid as and when due, interest shall  accrue and be due to the municipal authority on the unpaid balance at the rate  of 1  1/2  [%] percent per month until such service charge, and the interest thereon,  shall be fully paid to the municipal authority.

     b.    Notwithstanding the provisions of subsection a. of this section regarding delinquent payments, if the Governor has declared a public health emergency pursuant to the “Emergency Health Powers Act,” P.L.2005, c.222 (C.26:13-1 et seq.), or a state of emergency, pursuant to P.L.1942, c.251 (C.App.A.9-33 et seq.), or both, in response to a flood, hurricane, superstorm, tornado, natural or other disaster, or public health emergency that the municipal authority has experienced, then, for the duration of the public health emergency, state of emergency, or both and for a period up to 90 days after the public health emergency, state of emergency, or both, are no longer in effect, the municipal authority may, in its discretion, refrain from charging interest on the delinquent payment.  A municipal authority shall exercise the discretionary authority it is provided under this subsection consistently to all properties, or to all properties of the same use type or other appropriate category.

(cf: P.L.1981, c.530, s.2)

 

     3.    Section 42 of P.L.1957, c.183, (C.40:14B-42) is amended to read as follows:

     42.  a.  In the event that a service charge of any municipal authority with regard to  any parcel of real property owned by any person other than the State or an agency or subdivision thereof shall not be paid as and when due, the unpaid balance thereof and all interest accruing thereon shall be a lien on such parcel.  Such lien shall be superior and paramount to the interest in such parcel of any owner, lessee, tenant, mortgagee or other person except the lien of municipal taxes and shall be on a parity with and deemed equal to the lien on such parcel of the municipality where such parcel is situate for taxes thereon due in the same year and not paid when due.  Such lien shall not bind or affect a subsequent bona fide purchaser of such parcel for a valuable consideration without actual notice of such lien, unless the municipal authority shall have filed in the office of the collector or other officer of said municipality charged with the duty of enforcing municipal liens on real property a statement showing the amount and due date of such unpaid balance and  identifying such parcel, which identification may be sufficiently made by reference to the assessment map of said municipality.  The information shown in  such statement shall be included in any certificate with respect to said parcel  thereafter made by the official of said municipality vested with the power to  make official certificates of searches for municipal liens. Whenever such service charge and any subsequent service charge with regard to such parcel and  all interest accrued thereon shall have been fully paid to the municipal authority, such statement shall be promptly withdrawn or canceled by the municipal authority.

     b.    Notwithstanding the provisions of subsection a. of this section regarding delinquent payments, if the Governor has declared a public health emergency pursuant to the “Emergency Health Powers Act,” P.L.2005, c.222 (C.26:13-1 et seq.), or a state of emergency, pursuant to P.L.1942, c.251 (C.App.A.9-33 et seq.), or both, in response to a flood, hurricane, superstorm, tornado, natural or other disaster, or public health emergency that the municipal authority has experienced, then, for the duration of the public health emergency, state of emergency, or both and for a period up to 90 days after the public health emergency, state of emergency, or both, are no longer in effect, the municipal authority may, in its discretion, refrain from placing a lien on such parcel of real property for the unpaid balance for any service charge and all interest accruing thereon.  A municipal authority shall exercise the discretionary authority it is provided under this subsection consistently to all properties, or to all properties of the same use type or other appropriate category.

(cf: P.L.1957, c.183, s.42)

 

     4.    N.J.S.40A:26A-12 is amended to read as follows:

     40A:26A-12.  a.  Rates, rentals, connection fees or other charges levied in accordance with N.J.S.40A:26A-10 and 40A:26A-11, shall be a first lien or charge against the property benefited therefrom.  If any part of the amount due and payable in rates, rentals, connection fees or other charges remain unpaid for 30 days following the date for the payment thereof, interest upon the amount unpaid shall accrue at a rate of interest to be determined in accordance with N.J.S.40A:26A-17.  The governing body or bodies of the local unit or units may authorize payment of delinquent assessments on an installment basis in accordance with R.S.54:5-19.  Liens levied in accordance with this section shall be enforceable in the manner provided for real property tax liens in chapter 5 of Title 54 of the Revised Statutes. 

     b.    Nothing in this section shall be construed to limit the right of a local unit or local units to discontinue service of any property for the failure to pay any amount owing within 30 days after the date the amount is due and payable, if written notice of the proposed discontinuance of service and of the reasons therefor has been given, within at least 10 days prior to the date of discontinuance, to the owner of record of the property.  In the event that notice is provided by mail, the notice requirements shall be satisfied if the mailing is made to the last known address of the owner of record and is postmarked at least 10 days prior to the date of discontinuance.

     c.     Notwithstanding the provisions of subsections a. and b. of this section, if the Governor has declared a public health emergency pursuant to the “Emergency Health Powers Act,” P.L.2005, c.222 (C.26:13-1 et seq.), or a state of emergency, pursuant to P.L.1942, c.251 (C.App.A.9-33 et seq.), or both, in response to a flood, hurricane, superstorm, tornado, natural or other disaster, or public health emergency, then, for the duration of the public health emergency, state of emergency, or both and for a period up to 90 days after the public health emergency, state of emergency, or both, are no longer in effect, the governing body or bodies of the local unit or units may, in its discretion, engage in any combination of the following: (1) not charge interest on the delinquent payment; (2) not place a lien on such parcel of real property for the unpaid balance for any service charge and all interest accruing thereon; or (3) not discontinue service of any property for the failure to pay any amount owing.  The governing body shall exercise the discretionary authority it is provided under this subsection consistently to all properties, or to all properties of the same use type or other appropriate category.

(cf: N.J.S.40A:26A-12)

 

     5.    N.J.S.40A:31-12 is amended to read as follows:

     40A:31-12.  a.  Rates, rentals, connection fees or other charges levied in accordance with N.J.S.40A:31-10 and 40A:31-11, shall be a first lien or charge against the property benefited therefrom.  If any part of the amount due and payable in rates, rentals, connection fees or other charges remains unpaid for 30 days following the date for the payment thereof, interest upon the amount unpaid shall accrue at a rate of interest to be determined in accordance with N.J.S.40A:31-17.  The governing body or bodies of the local unit or units may authorize payment of delinquent assessments on an installment basis in accordance with R.S.54:5-19.  Liens levied in accordance with this section shall be enforceable in the manner provided for real property tax liens in chapter 5 of Title 54 of the Revised Statutes.

     b.    Nothing in this section shall be construed to limit the right of a local unit or local units to discontinue service to any property for the failure to pay any amount owing within 30 days after the date the amount is due and payable, if written notice of the proposed discontinuance of service and of the reasons therefor has been given, within at least 10 days prior to the date of discontinuance, to the owner of record of the property.  In the event that notice is provided by mail, the notice requirements shall be satisfied if the mailing is made to the last known address of the owner of record and is postmarked at least 10 days prior to the date of discontinuance.

     c.     Notwithstanding the provisions of subsections a. and b. of this section, if the Governor has declared a public health emergency pursuant to the “Emergency Health Powers Act,” P.L.2005, c.222 (C.26:13-1 et seq.), or a state of emergency, pursuant to P.L.1942, c.251 (C.App.A.9-33 et seq.), or both, in response to a flood, hurricane, superstorm, tornado, natural or other disaster, or public health emergency, then, for the duration of the public health emergency, state of emergency, or both and for a period up to 90 days after the public health emergency, state of emergency, or both, are no longer in effect, the governing body or bodies of the local unit or units may, in its discretion, engage in any combination of the following: (1) not charge interest on the delinquent payment; (2) not place a lien on such parcel of real property for the unpaid balance for any service charge and all interest accruing thereon; or (3) not discontinue service of any property for the failure to pay any amount owing.  The governing body shall exercise the discretionary authority it is provided under this subsection consistently to all properties, or to all properties of the same use type or other appropriate category.

(cf: N.J.S.40A:31-12)

 

     6.    This act shall take effect immediately and shall apply retroactively to March 9, 2020.

 

 

STATEMENT

 

     This bill would permit local units and authorities to waive interest and lien enforcement for certain delinquent water and sewer utility payments during emergency circumstances. 

     Whenever the Governor declares a public health emergency or a state of emergency, or both, this bill would authorize that, for the duration of one or both of the emergency declarations and for a period up to 90 days thereafter, a sewerage authority, a county or municipal utilities authority, or a county or municipality responsible for the administration of a sewerage or water utility may, in its discretion, refrain from any combination of the following actions:

     (1) charging interest on a delinquent payment;

     (2) placing a lien on a parcel of real property for the unpaid balance for any service charge and all interest accruing thereon; or

     (3) as applicable, discontinuing the service of any property for the failure to pay any amount owing.

     The bill requires that the discretionary authority provided to local units and authorities would be applied consistently to all properties, or to all properties of the same use type or other appropriate category.  In order for the discretionary authority provided by the bill to be available, the emergency would have to emerge in response to a flood, hurricane, superstorm, tornado, natural or other disaster, or public health emergency.

     The bill would take effect immediately and would be retroactive to March 9, 2020.