ASSEMBLY LOCAL GOVERNMENT COMMITTEE

STATEMENT TO

ASSEMBLY, No. 654

with committee amendments

STATE OF NEW JERSEY

DATED: MARCH 25, 1996

      The Local Government Committee reports favorably Assembly Bill No. 654 with committee amendments.

      As amended by the committee, Assembly Bill No. 654 makes an unpaid water service charge under a joint water authority a municipal lien. The lien would be enforced in the same manner as municipal liens for delinquent property taxes under the "tax sale law," R.S.54:5-1 et seq. The bill defines "service charges" as the price or rent of the water plus any other costs, expenses, interest and penalties. The committee amended the bill to address concerns of the New Jersey Banker's Association that the original bill established a new type of lien superior to purchase money mortgage liens. These amendments make clear that a water service charge lien by a joint water authority is a municipal lien just as a water lien by a municipal water authority is a municipal lien.

      Assembly Bill No. 654 was pre-filed for introduction in the 1996-1997 legislative session pending technical review. As reported by the committee, the bill contains the changes required by technical review, which has been performed.

      The Assembly Local Government Committee reports favorably and with committee amendments Assembly Bill No. 654.

      This bill was prefiled for introduction in the 1996 session pending technical review. As reported, the bill includes the changes required by technical review which has been performed.