New Jersey Assembly Bill A2505

New Jersey 2024-2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24

Caption

Prohibits sewerage authorities, municipal authorities, and local units of government from charging interest on unpaid sewer fees and charges attributable to State or local entities, including housing authorities.

Impact

Should this bill be enacted, it would amend existing statutes concerning sewerage authorities, specifically adjusting the rules around charging interest on unpaid fees. The prohibition aligns with broader efforts to simplify municipal finance and ensure financial equity among state and local agencies. It is believed that removing such financial penalties could promote more timely payments and motivate local and state agencies to prioritize their service fees, fostering better governmental relations.

Summary

Assembly Bill A2505 aims to prohibit municipal authorities, sewerage authorities, and local units of government in New Jersey from charging interest on unpaid sewer fees and charges that are attributable to state or local entities, including housing authorities. This measure is meant to alleviate the financial burden on public entities which often face delays in payments for services rendered. The bill seeks to create a more equitable system, ensuring that these entities are not penalized with interest charges when they fall behind on payments due to budgetary constraints.

Contention

While supporters argue that the bill is necessary to protect public entities from undue financial strain, opponents may raise concerns regarding the implications for sewerage authorities' revenue streams. They might argue that this could lead to a shortfall in funding necessary for maintenance and operations of sewer systems. Additionally, discussions may arise regarding the fairness of burdening individual residents and businesses with potential increases in sewer rates to compensate for lost interest income.