New Jersey 2022 2022-2023 Regular Session

New Jersey Senate Bill S1006 Comm Sub / Analysis

                    SENATE BUDGET AND APPROPRIATIONS COMMITTEE 
 
STATEMENT TO  
 
[First Reprint] 
SENATE, No. 1006  
 
with committee amendments 
 
STATE OF NEW JERSEY 
 
DATED:  OCTOBER 31, 2022 
 
 The Senate Budget and Appropriations Committee reports 
favorably and with committee amendments Senate Bill No. 1006 (1R). 
 As amended by the committee, this bill requires the Department of 
Environmental Protection (DEP), the Department of Health (DOH), 
owners or operators of public water systems, and the owners or 
operators of certain types of buildings to take specified actions to help 
inform citizens of the State about, and prevent and control cases of, 
Legionnaires’ disease.   
 The bill requires the owner or operator of a public water system 
with 100 or more service connections to (1) maintain a minimum 
detectable disinfectant residual of free chlorine of at least 0.3 
milligrams per liter in all active parts of the public water system at all 
times for systems utilizing chlorine as a disinfectant, or maintain a 
minimum detectable disinfectant residual of at least 1.0 milligrams per 
liter of monochloramine in all active parts of the public water system 
at all times for systems utilizing chloramine as a disinfectant, and (2) 
conduct disinfectant residual testing at frequent and regular intervals to 
determine the amount and type of detectable disinfectant residual 
existing at different points in the public water system.  Under the bill, 
the DEP is authorized to adopt rules and regulations to require 
additional disinfectant requirements or testing requirements of public 
water systems, or to increase the minimum detectable disinfectant 
residual, in order to minimize the growth and transmission of 
Legionella bacteria, or to require nitrification action plans. 
 The bill requires the owner or operator of a public water system 
with 100 or more service connections to provide written notice to its 
residential, commercial, and institutional customers and to residents 
located in an affected area of disruptions in the water distribution 
system that could result in increased levels of Legionella bacteria 
being present in the public water system.  The bill also requires the 
owner or operator of a public water system with 100 or more service 
connections to provide a written record of a reported disruption in the 
water distribution system to the DEP within 24 hours of the occurrence 
of the disruption.  The bill requires the DEP to establish on its Internet  2 
 
website a publicly accessible database of the records of a disruption in 
the water distribution system submitted to the DEP pursuant to the bill.  
The bill requires the DEP to publish a public notice in the New Jersey 
Register and on its Internet website specifying the form and manner of 
the notice and records required by the bill and the specific information 
to be included in the notice and records. 
 The bill requires the DOH to conduct an investigation into every 
reported diagnosis of Legionnaires’ disease and require the DOH to 
advise an individual diagnosed with Legionnaires’ disease about the 
availability of testing by the DOH of the fixtures and water-using 
equipment in the individual’s residence, locations frequently visited, 
and places of employment in the 45 days immediately prior to the 
individual’s diagnosis. The bill requires the DOH to develop 
procedures and guidelines regarding investigations of reported cases of 
Legionnaires’ disease.  The bill authorizes the DOH to delegate certain 
responsibilities and duties for administering the testing and 
investigatory provisions of section 3 of the bill to a local health officer 
having jurisdiction over the locality in which a patient diagnosed with 
Legionnaires’ disease lives, frequently visits, or is employed.  The bill 
also requires the DOH to establish on its Internet website a registry 
accessible to the public of de-identified data related to each case of 
Legionnaires’ disease reported to the DOH. “De-identified data” is 
defined in the bill as information that does not identify an individual 
and for which there is no reasonable basis to believe that the 
information can be used to identify an individual, and which meets the 
requirements for de-identification of protected health information 
under the federal "Health Insurance Portability and Accountability Act 
of 1996," Pub.L.104-191.  
 Section 4 of the bill requires the owner or operator of certain types 
of buildings to implement a water management program to minimize 
the growth and transmission of Legionella bacteria in the building 
water system.  This requirement applies to: 
 (1) certain health care facilities where patient stays exceed 24 
hours; 
 (2) buildings containing one or more areas for the purpose of 
housing or treating occupants receiving treatment for burns, 
chemotherapy, solid organ transplantation, or bone marrow 
transplantation; 
 (3) buildings containing one or more areas for the purpose of 
housing or treating occupants that are immunocompromised, at-risk, 
on medications that weaken the immune system, or have renal disease, 
diabetes, or chronic lung disease;  
 (4) buildings containing a whirlpool, spa, pool, open- or closed-
circuit cooling tower or evaporative condenser that provides cooling or 
refrigeration for a heating, ventilation, air conditioning, or 
refrigeration system, ornamental fountain, mister, atomizer, air wash, 
humidifier, or other non-potable water system or device that releases  3 
 
water aerosols in the building or on the property upon which the 
building is located; and 
 (5) buildings that are more than 10 stories high, including any 
level that is below grade, with a centralized potable water-heater 
system. 
 The bill requires that testing conducted as part of a building’s 
water management program be conducted in a manner consistent with 
the American Society of Heating, Refrigeration, and Air Conditioning 
Engineers (ASHRAE) Standard 188-2018 or comparable standards 
adopted by a nationally recognized, accepted, and appropriate 
organization, and specifies the qualifications of individuals who may 
conduct the required testing. 
 The bill establishes penalties for the owner or operator of a facility 
or building who fails to implement a water management program or 
fails to demonstrate compliance with a water management program.  A 
violator would be subject to a penalty of not more than $2,000 for a 
first violation, and not more than $5,000 for a second or subsequent 
violation, except that an owner or operator would be subject to a 
penalty of not more than $10,000 for any violation which causes 
serious injury or death to any person. 
 The bill requires the DOH, in consultation with the DEP, the DCA, 
and a public stakeholder group, to adopt rules and regulations as 
necessary to implement the provisions of the bill.  The bill requires 
that the rules and regulations be consistent with the ASHRAE 
Standard 188-2018 or comparable standards adopted by a nationally 
recognized, accepted, and appropriate organization.  
 The bill requires the DOH, in conjunction with the DEP and the 
DCA, to prepare an annual report including information on reported 
cases of Legionnaires’ disease reported in each of the previous 10 
years, test results indicating the presence of Legionella bacteria, and 
recommendations for such legislative action as may be necessary to 
further control Legionella bacteria in the public water supply and 
affected buildings. 
 Lastly, the bill requires the DOH to develop a public awareness 
campaign and targeted consumer education program to educate 
consumers, especially vulnerable populations, on the environmental 
sources of Legionella bacteria, the movement of Legionella bacteria 
through water distribution systems, the notification requirements 
required by the bill and how the requirements impact consumers, and 
on methods to control Legionella bacteria in a person’s home.  
 
COMMITTEE AMENDMENTS : 
 The committee amendments: 
 1) clarify the minimum detectable disinfectant residual of free 
chlorine of at least 0.3 milligrams per liter in all active parts of the 
public water system at all times applies to systems utilizing chlorine as 
a disinfectant, and require a minimum detectable disinfectant residual  4 
 
of at least 1.0 milligrams per liter of monochloramine in all active 
parts of the public water system at all times for systems utilizing 
chloramine as a disinfectant; 
 2) provide that the DEP may adopt rules and regulations 
concerning nitrification action plans;  
 3) clarify that the owner or operator of a facility or building is to 
make the water management program required by the bill available 
upon request to an employee of the DCA, DEP, DOH, or any other 
department or agency with license or inspection authority for the 
facility or building in order to confirm that a water management 
program was developed; and 
 4) specify that the DCA, DEP, DOH, or any other department or 
agency with license or inspection authority for the facility or building 
is not required to evaluate or otherwise review a water management 
program unless required for an investigation of a case of Legionnaires’ 
disease pursuant to the bill. 
 
FISCAL IMPACT: 
 The Office of Legislative Services (OLS) determines that this bill 
would result in an indeterminate annual expenditure increase by the 
State, local government units, and school districts that own or operate 
certain buildings to utilize water management programs, conduct water 
monitoring and testing, and to investigate cases of reported 
Legionnaires’ Disease. The OLS understands that implementing a 
water management program that meets the standards required by the 
bill could cost in the range of $2,000 to $10,000 or more, depending 
on the size and complexity of the building.  In addition, each program 
could cost several thousand dollars or more annually for water 
monitoring and testing.   
 According to information from the Department of Health, annual 
departmental expenditures under the bill could be $6 million to 
investigate cases of Legionnaires’ disease. Depending on how the 
investigative responsibilities are delegated, some of these costs could 
be borne by the affected local government entity rather than the State.  
The bill may also result in an indeterminate annual expenditure 
increase by the State and by local government units that operate public 
water systems with more than 100 service connections, in order to 
satisfy the bill's requirements that public water systems maintain a 
certain minimum level of disinfectant residual in their water supply, 
and institute a testing regimen to verify this level.  For those public 
water systems that do not currently meet the bill's testing requirements, 
the OLS understands that such testing would cost up to tens of 
thousands of dollars per system annually, depending on the size of the 
system.