New Jersey Senate Bill S2372

New Jersey 2022-2023 Regular Session

• Introduced: 3/24/22
• Refer: 3/24/22

Caption

Authorizes alternative procedure for sale of municipal sewerage systems to public utilities.

Impact

S2372 significantly alters the existing framework for the sale of municipal sewerage systems. Under current law, municipalities require explicit voter approval for such transactions, which can hinder timely and efficient responses to urgent infrastructure needs. By allowing sales to be enacted via ordinance, contingent only on Board of Public Utilities' approval, the bill aims to improve operational efficiency while maintaining regulatory safeguards for ratepayers. This intervention is particularly relevant as many municipalities face pressing financial struggles related to aging sewer infrastructure, potentially reducing repair and maintenance liabilities and enabling investments in system upgrades.

Summary

Senate Bill S2372 proposes a new procedure for municipalities in New Jersey to sell their sewerage systems to public utilities. This legislative change aims to provide an alternative to the current requirement of a voter referendum for such sales, allowing municipalities to authorize the transfer through an ordinance. This streamlined process could potentially accelerate the management of deteriorating infrastructure by enabling municipalities to offload their liabilities while ensuring state oversight through the approval of the Board of Public Utilities. The bill is positioned as a means to allow municipalities to convert future liabilities into current assets, facilitating better financial management of public services.

Contention

One point of contention surrounding S2372 may arise from concerns about local governance and public involvement in decisions impacting essential services. Critics of the bill may argue that circumventing voter referendums undermines community input, potentially leading to decisions that prioritize financial expediency over residents' needs. Additionally, some may question whether the shift to a simpler ordinance-based approach sufficiently protects consumers, especially regarding rate increases that may follow the acquisition by public utilities. The bill attempts to address these concerns by assuring that any acquisitions are aligned with 'public convenience and necessity,' as guaranteed by the Board of Public Utilities.