New Jersey Assembly Bill A1881

New Jersey 2022-2023 Regular Session

• Introduced: 1/11/22
• Refer: 1/11/22

Caption

Concerns construction code enforcing agency fee revenue.

Impact

The proposed changes would place a new structure on how municipalities manage their code enforcement agency revenues. By requiring that fees collected in excess of operational needs be redirected to the municipality’s surplus, this bill promotes greater fiscal responsibility among local municipalities. Furthermore, it stipulates that any shortfalls in funding for the operation of enforcing agencies must be made up from the municipality's general fund, which could ensure continuous operation despite fluctuations in collected fees.

Summary

Assembly Bill A1881 seeks to amend existing laws relating to municipal code enforcing agency fees under the State Uniform Construction Code Act. The bill aims to ensure better financial management by mandating that any excess fees collected by enforcing agencies beyond 112% of their operational costs be transferred to the municipality's surplus fund. This is intended to streamline financial operations related to the construction and permitting processes, particularly when projects are aimed at providing affordable housing or taking place in areas deemed underdeveloped.

Contention

Debates surrounding A1881 may arise from those who are concerned about the impact on local governance and operational autonomy. While the bill aims to ensure financial health for local agencies, some stakeholders might argue that it could lead to reduced discretion in managing local affairs since the municipalities' fiscal resources could be more tightly controlled by state mandates. Additionally, the two percent cap on fee increases could limit local agencies’ ability to respond to increasing operational costs, presenting a contention point in discussions over the bill.