Bill Text: NJ A1881 | 2022-2023 | Regular Session | Introduced
Bill Title: Concerns construction code enforcing agency fee revenue.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2022-01-11 - Introduced, Referred to Assembly State and Local Government Committee [A1881 Detail]
Download: New_Jersey-2022-A1881-Introduced.html
STATE OF NEW JERSEY
220th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2022 SESSION
Sponsored by:
Assemblyman THOMAS P. GIBLIN
District 34 (Essex and Passaic)
SYNOPSIS
Concerns construction code enforcing agency fee revenue.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act concerning enforcing agency fees under the "State Uniform Construction Code Act," P.L.1975, c.217 (C.52:27D-119 et. seq.), and amending P.L.1979, c.121.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 3 of P.L.1979, c.121 (C.52:27D-126a) is amended to read as follows:
3. a. Where the appointing authority of any municipality shall appoint an enforcing agency and construction board of appeals pursuant to section 8 of P.L.1975, c.217 (C.52:27D-126), the municipal governing body by ordinance, in accordance with standards established by the commissioner, shall set enforcing agency fees for plan review, construction permit, certificate of occupancy, demolition permit, moving of building permit, elevator permit and sign permit, provided, however, that such fees shall not exceed the annual costs for the operation of the enforcing agency. For the three-year period commencing with an enforcing agency's initial participation in the "Electronic Permit Processing Review System," developed and implemented pursuant to section 1 of P.L.2021, c.70 (C.52:27D-124.4), the municipal governing body may impose, and the enforcing agency may collect, construction permit surcharge fees to defray the enforcing agency's startup costs related to offering electronic plan review and scheduling. Surcharge fees shall be established in accordance with standards established by the commissioner.
b. Notwithstanding the provisions of subsection a. of this section, in any fiscal year in which enforcing agency fees collected from a project that is either providing affordable housing or occurring in an area in need of redevelopment, as defined in section 3 of P.L.1992, c.79 (C.40A:12A-3), causes the total amount of fees collected by an enforcing agency to exceed by 12 percent or more, the total cost of operating the enforcing agency, including indirect overhead expenses, as appropriated in the adopted municipal budget, the amount of fees collected in excess of 112 percent of the total cost, including indirect overhead expenses, shall lapse to the municipality's current fund balance, provided that enforcing agency fees were not increased by more than two percent in either the prior or current fiscal year and all enforcing agency fees, and all enforcing agency operations, procedures, and inspections, fully comply with all of the provisions of P.L.1975, c.217 (C.52:27D-119 et seq.).
c. In any fiscal year in which either the total amount of fees collected by an enforcing agency is less than the total costs of operating the enforcing agency, or the total appropriation in the adopted municipal budget for the enforcing agency is less than the total cost of operating the enforcing agency, the shortfall shall be satisfied by funds from either the municipality's general fund or current fund balance, so as to fully comply with all of the provisions of P.L.1975, c.217 (C.52:27D-119 et seq.).
(cf: P.L.2021, c.70, s.3)
2. This act shall take effect immediately.
STATEMENT
This bill would amend existing law to require the transfer of excess municipal code enforcing agency fees from the municipal enforcing agency to the municipality's surplus. The bill would also require the utilization of funds from the municipal general fund or current fund balance to satisfy any revenue or appropriation shortfall necessary to operate the enforcing agency.
The bill would require that in any fiscal year in which enforcing agency fees collected from a project that is either providing affordable housing or occurring in an area in need of development causes the total amount of fees collected by an enforcing agency exceeds, by 12 percent or more, the total cost of operating the enforcing agency, including indirect overhead expenses, as appropriated in the adopted municipal budget, the amount of fees collected in excess of 112 percent of the total cost, including indirect overhead expenses, shall lapse to the municipality's current fund balance, provided that enforcing agency fees were not increased by more than two percent in either the prior or current fiscal year and all enforcing agency fees, and all enforcing agency operations, procedures, and inspections, fully comply with all of the provisions of P.L.1975, c.217 (C.52:27D-119 et seq.). The 12 percent allowance is derived from current regulations permitting indirect overhead expenses in support of the enforcing agency, equal to 12 percent of the operating costs of the enforcing agency, to be charged to the enforcing agency.
The bill would also require that in any fiscal year in which either the total amount of fees collected by an enforcing agency is less than the total costs of operating the enforcing agency, or the total appropriation in the adopted municipal budget for the enforcing agency is less than the total cost of operating the enforcing agency, the shortfall shall be satisfied by funds from either the municipality's general fund or current fund balance, so as to fully comply with all of the provisions of P.L.1975, c.217 (C.52:27D-119 et seq.).
