ASSEMBLY LOCAL GOVERNMENT COMMITTEE

STATEMENT TO

[First Reprint]

SENATE, No. 427

with committee amendments

STATE OF NEW JERSEY

DATED: MAY 13, 1996

      The Assembly Local Government Committee reports favorably Senate Bill No. 427 (1R), with committee amendments.

      Senate Bill No. 427 (1R), as amended by the committee, permits the use of surplus that was generated in prior years and utilized in the current budget to be used in determining whether a municipal public utility is a self-liquidating purpose. Under current law the term " municipal public utility" is defined to include a county public utility.

      The committee amended the bill to remove language stating that any municipal public utility shall be deemed to be a self-liquidating purpose if the public utility qualifies under the "Municipal Qualified Bond Act," P.L.1976, c.38 (C.40A:3-1 et seq.), or the public utility shall have anticipated surplus funds for the purpose of paying operating and maintenance costs in its budget as approved by the Director of the Division of Local Government Services in the Department of Community Affairs. The removal of this language permits all local units the option of including appropriated surplus as revenues for the purpose of determining a municipal or county public utility to be a self-liquidating purpose. These amendments conform current law with current practice.

      The committee also amended the bill to insert the word "public," which appears in the statute but was inadvertently omitted in the bill.

      As amended by the committee, this bill is the same as Assembly Bill No. 318 with Assembly committee amendments, also reported by the committee on May 13, 1996.