ASSEMBLY COMMERCE AND MILITARY AND VETERANS' AFFAIRS COMMITTEE

 

STATEMENT TO

 

ASSEMBLY, No. 1678

 

with committee amendments

 

STATE OF NEW JERSEY

 

DATED: SEPTEMBER 16, 1996

 

 

      The Assembly Commerce and Military and Veterans' Affairs Committee reports favorably Assembly Bill No. 1678 with committee amendments.

      As amended, this bill supplements chapter 2 of Title 48 of the Revised Statutes to limit the jurisdiction of the Board of Public Utilities (hereinafter, "board") over any nonprofit, non-publicly owned water company which is exclusively owned and controlled by the consumers it serves provided that the majority of the members of the association which controls the water company approves of the limitation.

      This bill eliminates the board's jurisdiction over rates, charges and operations of such water companies, as well as the requirement of the board's approval for the authorization or validation of any mortgage or encumbrance of real property or the issuance of any evidence of indebtedness of such companies. The bill also stipulates that the board shall retain jurisdiction over disputes concerning the territory served or to be served by such a water company.

      Under current law (R.S.48:2-13), water companies are included within the scope of public utilities subject to the board's jurisdiction.

      The committee adopted amendments to clarify that the bill applies to nonpublicly-owned, nonprofit water companies and to require that a majority of the membership of the association which controls the water company must approve of the limitation of the Board of Public Utility's jurisdiction.