New Jersey Assembly Bill A3177

New Jersey 2022-2023 Regular Session

• Introduced: 3/7/22
• Refer: 3/7/22

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

The enactment of A3177 would result in specific amendments to existing state laws governing the operation of sewer utilities. It would explicitly state that no interest shall be charged on unpaid sewerage service charges that are linked to the state or municipalities and their respective agencies. This could simplify financial management for various local authorities while ensuring that public agencies are not disproportionately penalized with accruing interest payments, thereby promoting fiscal responsibility within state and municipal governance.

Summary

Assembly Bill A3177 aims to prohibit sewerage authorities, municipal authorities, and local units of government from charging interest on unpaid sewer fees and charges that are attributable to state or local entities, including housing authorities. The bill clarifies that while these authorities can impose interest on unpaid rates for private entities, they cannot do so for governmental bodies. This change is intended to alleviate financial burdens on these entities by preventing additional charges that could accrue due to unpaid sewer fees.

Contention

There could be potential contention regarding this bill, particularly among different stakeholders. Some may argue that prohibiting interest on unpaid charges could undermine the financial viability of sewerage authorities, limiting their ability to maintain and upgrade essential infrastructure. Others may contend this proposal is a necessary reform that helps to protect local and state entities from undue financial strain, allowing them to allocate resources more effectively without the burden of compounding interest on unpaid fees.