SENATE BUDGET AND APPROPRIATIONS COMMITTEE

 

STATEMENT TO

 

SENATE, No. 1962

 

with Senate committee amendments

 

STATE OF NEW JERSEY

 

DATED: DECEMBER 11, 1997

 

      The Senate Budget and Appropriations Committee reports favorably Senate Bill No. 1962 with amendments.

      Senate Bill No. 1962, as amended, changes the application fee for a certificate of need. The minimum fee for the filing of an application will remain at $5,000. However, for a project whose total cost is greater than $1 million, the fee will be $5,000 plus 0.15% of the total project cost. The separate fee for projects with total costs over $10 million is eliminated, as is the maximum fee for all projects which is now set at $100,000.

      Under current law, if a project costs $10 million or more, the application fee is $5,000 plus 1.0% of the total project, with the maximum fee set at $100,000; the application fee for a project whose cost is greater than $1 million but less than $10 million, is $5,000 plus 0.05% of the total project cost.

 

COMMITTEE AMENDMENTS

      The committee amended the bill to:

 

*    change the fee for projects with total costs greater than $1 million from $5,000 plus 0.05% of the total project cost to $5,000 plus 0.15% of total project cost;

*    delete the provision that would have set a separate fee for a certificate of need for projects requiring an expedited review by the Department of Health and Senior Services; and

*    eliminate the maximum fee to be charged for any project application.

 

FISCAL IMPACT

      According to the Department of Health and Senior Services, this bill, as amended, will not result in any significant increase or decrease in the revenues collected from these fees.