Sponsored by:
Senator PAUL A. SARLO
District 36 (Bergen and Passaic)
Assemblyman THOMAS P. GIBLIN
District 34 (Essex and Passaic)
SYNOPSIS
Concerns construction code enforcing agency fee revenue.
CURRENT VERSION OF TEXT
As reported by the Senate Budget and Appropriations Committee on June 17, 2021, with amendments.
An Act concerning enforcing agency fees under the “State Uniform Construction Code Act,” P.L.1975, c.217 (C.52:27D-119 et. seq.), and amending P.L.1979, c.121.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1[1. Section 3 of P.L.1979, c.121 (C.52:27D-126a) is amended to read as follows:
3. a. Where the appointing authority of any municipality shall appoint an enforcing agency and construction board of appeals pursuant to section 8 of P.L.1975, [c. 217] c.217 (C.52:27D-126), the municipal governing body by ordinance, in accordance with standards established by the commissioner, shall set enforcing agency fees for plan review, construction permit, certificate of occupancy, demolition permit, moving of building permit, elevator permit and sign permit, provided, however, that such fees shall not exceed the annual costs for the operation of the enforcing agency.
b. In any fiscal year in which the total amount of fees collected by an enforcing agency exceeds, by 12 percent or more, the costs of operating the enforcing agency, as described in subsection (c) of N.J.A.C.5:23-4.17 on the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) and as appropriated in the adopted municipal budget, the amount of fees collected in excess of 112 percent of the total cost shall lapse to the municipality’s current fund balance, provided that all enforcing agency fees, and all enforcing agency operations, procedures, and inspections, fully comply with all of the provisions of P.L.1975, c.217 (C.52:27D-119 et seq.).
(cf: P.L.1979, c.121, s.3)]1
11. Section 3 of P.L.1979, c.121 (C.52:27D-126a) is amended to read as follows:
3. a. Where the
appointing authority of any municipality shall appoint an enforcing agency and
construction board of appeals pursuant to section 8 of P.L.1975, c.217
(C.52:27D-126), the municipal governing body by ordinance, in accordance with
standards established by the commissioner, shall set enforcing agency fees for
plan review, construction permit, certificate of occupancy, demolition permit,
moving of building permit, elevator permit and sign permit, provided, however,
that such fees shall not exceed the annual costs for the operation of the
enforcing agency. For the three-year period commencing with an enforcing
agency's initial participation in the "Electronic Permit Processing Review
System," developed and implemented pursuant to section 1 of
P.L.2021, c.70 (C.52:27D-124.4), the municipal governing body may impose, and the enforcing agency may collect, construction permit surcharge fees to defray the enforcing agency's startup costs related to offering electronic plan review and scheduling. Surcharge fees shall be established in accordance with standards established by the commissioner.
b. Notwithstanding the provisions of subsection a. of this section, in any fiscal year in which enforcing agency fees collected from a project that is either providing affordable housing or occurring in an area in need of redevelopment, as defined in section 3 of P.L.1992, C.79 (C.40A:12A-3), causes the total amount of fees collected by an enforcing agency to exceed by 12 percent or more, the total cost of operating the enforcing agency, including indirect overhead expenses, as appropriated in the adopted municipal budget, the amount of fees collected in excess of 112 percent of the total cost, including indirect overhead expenses, shall lapse to the municipality’s current fund balance, provided that enforcing agency fees were not increased by more than two percent in either the prior or current fiscal year and all enforcing agency fees, and all enforcing agency operations, procedures, and inspections, fully comply with all of the provisions of P.L.1975, c.217 (C.52:27D-119 et seq.).
c. In any fiscal year in which either the total amount of fees collected by an enforcing agency is less than the total costs of operating the enforcing agency, or the total appropriation in the adopted municipal budget for the enforcing agency is less than the total cost of operating the enforcing agency, the shortfall shall be satisfied by funds from either the municipality’s general fund or current fund balance, so as to fully comply with all of the provisions of P.L.1975, c.217 (C.52:27D-119 et seq.).1
(cf: P.L.2021, c.70, s.3)
2. This act shall take effect immediately.