A5280

An Act restoring the Department of the Public Advocate as a principal department in the Executive Branch of State government, revising various parts of the statutory law and supplementing Title 52 of the Revised Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. Section 1 of P.L.1982, c.79 (C.2A:4A-60) is amended to read as follows:

1. Disclosure of juvenile information; penalties for disclosure.

a. Social, medical, psychological, legal and other records of the court and probation division, and records of law enforcement agencies, pertaining to juveniles charged as a delinquent or found to be part of a juvenile-family crisis, shall be strictly safeguarded from public inspection. Such records shall be made available only to:

(1) Any court or probation division;

(2) The Attorney General or county prosecutor;

(3) The parents or guardian and to the attorney of the juvenile;

(4) The Department of Human Services or Department of Children and Families, if providing care or custody of the juvenile;

(5) Any institution or facility to which the juvenile is currently committed or in which the juvenile is placed;

(6) Any person or agency interested in a case or in the work of the agency keeping the records, by order of the court for good cause shown, except that information concerning adjudications of delinquency, records of custodial confinement, payments owed on assessments imposed pursuant to section 2 of P.L.1979, c.396 (C.2C:43-3.1) or restitution ordered following conviction of a crime or adjudication of delinquency, and the juvenile's financial resources, shall be made available upon request to the Victims of Crime Compensation [Agency] Office established pursuant to section 2 of P.L.2007, c.95 (C.52:4B-3.2), which shall keep such information and records confidential;

(7) The Juvenile Justice Commission established pursuant to section 2 of P.L.1995, c.284 (C.52:17B-170);

(8) Law enforcement agencies for the purpose of reviewing applications for a permit to purchase a handgun or firearms purchaser identification card;

(9) Any potential party in a subsequent civil action for damages related to an act of delinquency committed by a juvenile, including the victim or a member of the victim's immediate family, regardless of whether the action has been filed against the juvenile; provided, however, that records available under this paragraph shall be limited to official court documents, such as complaints, pleadings and orders, and that such records may be disclosed by the recipient only in connection with asserting legal claims or obtaining indemnification on behalf of the victim or the victim's family and otherwise shall be safeguarded from disclosure to other members of the public. Any potential party in a civil action related to the juvenile offense may file a motion with the civil trial judge seeking to have the juvenile's social, medical or psychological records admitted into evidence in a civil proceeding for damages;

(10) Any potential party in a subsequent civil action for damages related to an act of delinquency committed by a juvenile, including the victim or a member of the victim's immediate family, regardless of whether the action has been filed against the juvenile; provided, however, that records available under this paragraph shall be limited to police or investigation reports concerning acts of delinquency, which shall be disclosed by a law enforcement agency only with the approval of the County Prosecutor's Office or the Division of Criminal Justice. Prior to disclosure, all personal information regarding all individuals, other than the requesting party and the arresting or investigating officer, shall be redacted. Such records may be disclosed by the recipient only in connection with asserting legal claims or obtaining indemnification on behalf of the victim or the victim's family, and otherwise shall be safeguarded from disclosure to other members of the public;

(11) The Office of the Child Advocate established pursuant to [P.L.2005, c.155 (C.52:27EE-1 et al.)] P.L. , c. (C. ) (pending before the Legislature as this bill). Disclosure of juvenile information received by the Child Advocate pursuant to this paragraph shall be in accordance with the provisions of [section 98 of P.L.2005, c.155 (C.52:27EE-76)] P.L. , c. (C. ) (pending before the Legislature as this bill);

(12) Law enforcement agencies with respect to information available on the juvenile central registry maintained by the courts pursuant to subsection g. of this section, including, but not limited to: records of official court documents, such as complaints, pleadings and orders for the purpose of obtaining juvenile arrest information; juvenile disposition information; juvenile pretrial information; and information concerning the probation status of a juvenile; and

(13) A Court Appointed Special Advocate as defined in section 1 of P.L.2009, c.217 (C.2A:4A-92).

b. Records of law enforcement agencies may be disclosed for law enforcement purposes, or for the purpose of reviewing applications for a permit to purchase a handgun or a firearms purchaser identification card to any law enforcement agency of this State, another state or the United States, and the identity of a juvenile under warrant for arrest for commission of an act that would constitute a crime if committed by an adult may be disclosed to the public when necessary to execution of the warrant.

c. At the time of charge, adjudication or disposition, information as to the identity of a juvenile charged with an offense, the offense charged, the adjudication and disposition shall, upon request, be disclosed to:

(1) The victim or a member of the victim's immediate family;

(2) (Deleted by amendment, P.L.2005, c.165).

(3) On a confidential basis, the principal of the school where the juvenile is enrolled for use by the principal and such members of the staff and faculty of the school as the principal deems appropriate for maintaining order, safety or discipline in the school or to planning programs relevant to the juvenile's educational and social development, provided that no record of such information shall be maintained except as authorized by regulation of the Department of Education; or

(4) A party in a subsequent legal proceeding involving the juvenile, upon approval by the court.

d. A law enforcement or prosecuting agency shall, at the time of a charge, adjudication or disposition, send written notice to the principal of the school where the juvenile is enrolled of the identity of the juvenile charged, the offense charged, the adjudication and the disposition if:

(1) The offense occurred on school property or a school bus, occurred at a school-sponsored function or was committed against an employee or official of the school; or

(2) The juvenile was taken into custody as a result of information or evidence provided by school officials; or

(3) The offense, if committed by an adult, would constitute a crime, and the offense:

(a) resulted in death or serious bodily injury or involved an attempt or conspiracy to cause death or serious bodily injury; or

(b) involved the unlawful use or possession of a firearm or other weapon; or

(c) involved the unlawful manufacture, distribution or possession with intent to distribute a controlled dangerous substance or controlled substance analog; or

(d) was committed by a juvenile who acted with a purpose to intimidate an individual or group of individuals because of race, color, religion, sexual orientation or ethnicity; or

(e) would be a crime of the first, second, or third degree.

Information provided to the principal pursuant to this subsection shall be maintained by the school and shall be treated as confidential but may be made available to such members of the staff and faculty of the school as the principal deems appropriate for maintaining order, safety or discipline in the school or for planning programs relevant to a juvenile's educational and social development.

e. Nothing in this section prohibits a law enforcement or prosecuting agency from providing the principal of a school with information identifying one or more juveniles who are under investigation or have been taken into custody for commission of any act that would constitute an offense if committed by an adult when the law enforcement or prosecuting agency determines that the information may be useful to the principal in maintaining order, safety or discipline in the school or in planning programs relevant to the juvenile's educational and social development. Information provided to the principal pursuant to this subsection shall be treated as confidential but may be made available to such members of the staff and faculty of the school as the principal deems appropriate for maintaining order, safety or discipline in the school or for planning programs relevant to the juvenile's educational and social development. No information provided pursuant to this section shall be maintained.

f. Information as to the identity of a juvenile adjudicated delinquent, the offense, the adjudication and the disposition shall be disclosed to the public where the offense for which the juvenile has been adjudicated delinquent if committed by an adult, would constitute a crime of the first, second or third degree, or aggravated assault, destruction or damage to property to an extent of more than [$500.00] $500, unless upon application at the time of disposition the juvenile demonstrates a substantial likelihood that specific and extraordinary harm would result from such disclosure in the specific case. Where the court finds that disclosure would be harmful to the juvenile, the reasons therefor shall be stated on the record.

g. (1) Nothing in this section shall prohibit the establishment and maintaining of a central registry of the records of law enforcement agencies relating to juveniles for the purpose of exchange between State and local law enforcement agencies and prosecutors of this State, another state, or the United States. These records of law enforcement agencies shall be available on a 24-hour basis.

(2) Certain information and records relating to juveniles in the central registry maintained by the courts, as prescribed in paragraph (12) of subsection a. of this section, shall be available to State and local law enforcement agencies and prosecutors on a 24-hour basis.

h. Whoever, except as provided by law, knowingly discloses, publishes, receives, or makes use of or knowingly permits the unauthorized use of information concerning a particular juvenile derived from records listed in subsection a. or acquired in the course of court proceedings, probation, or police duties, shall, upon conviction thereof, be guilty of a disorderly persons offense.

i. Juvenile delinquency proceedings.

(1) Except as provided in paragraph (2) of this subsection, the court may, upon application by the juvenile or his parent or guardian, the prosecutor or any other interested party, including the victim or complainant or members of the news media, permit public attendance during any court proceeding at a delinquency case, where it determines that a substantial likelihood that specific harm to the juvenile would not result. The court shall have the authority to limit and control attendance in any manner and to the extent it deems appropriate;

(2) The court or, in cases where the county prosecutor has entered an appearance, the county prosecutor shall notify the victim or a member of the victim's immediate family of any court proceeding involving the juvenile and the court shall permit the attendance of the victim or family member at the proceeding except when, prior to completing testimony as a witness, the victim or family member is properly sequestered in accordance with the law or the Rules Governing the Courts of the State of New Jersey or when the juvenile or the juvenile's family member shows, by clear and convincing evidence, that such attendance would result in a substantial likelihood that specific harm to the juvenile would result from the attendance of the victim or a family member at a proceeding or any portion of a proceeding and that such harm substantially outweighs the interest of the victim or family member to attend that portion of the proceeding;

(3) The court shall permit a victim, or a family member of a victim to make a statement prior to ordering a disposition in any delinquency proceeding involving an offense that would constitute a crime if committed by an adult.

j. The Department of Education, in consultation with the Attorney General, shall adopt, pursuant to the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations concerning the creation, maintenance and disclosure of pupil records including information acquired pursuant to this section.

(cf: P.L.2009, c.217, s.2)

2. N.J.S.3B:15-1 is amended to read as follows:

3B:15-1. The court or surrogate appointing a fiduciary in any of the instances enumerated below shall secure faithful performance of the duties of the office by requiring the fiduciary thereby authorized to act to furnish bond to the Superior Court in a sum and with proper conditions and sureties, having due regard to the value of the estate and the extent of the fiduciary's authority, as the court shall approve:

a. When an appointment is made upon failure of the will, or other instrument creating or continuing a fiduciary relationship, to name a fiduciary;

b. When a person is appointed in the place of the person named as fiduciary in the will, or other instrument creating or continuing the fiduciary relationship;

c. When the office to which the person is appointed is any form of administration, except: (1) administration ad litem which may be granted with or without bond; or (2) administration granted to a surviving spouse where the decedent's entire estate is payable to the surviving spouse;

d. When the office to which the person is appointed is any form of guardianship of a minor or a person who is incapacitated, except as otherwise provided in N.J.S.3B:12-16 or N.J.S.3B:12-33 with respect to a guardian appointed by will;

e. When letters are granted to a nonresident executor, except in cases where the will provides that no security shall be required of the person named as executor therein;

f. When an additional or substituted fiduciary is appointed;

g. When an appointment is made under chapter 26 of this title, of a fiduciary for the estate or property, or any part thereof, of an absentee;

h. When a fiduciary moves from the State, in which case the court may require the fiduciary to give such security as the court determines; or

i. (1) When an appointment is made, regardless of any direction in a last will and testament relieving a personal representative, testamentary guardian, or testamentary trustee or their successors from giving bond, that person shall, before receiving letters or exercising any authority or control over the property, provide bond to secure performance of the person's duties with respect to property to which a person with a developmental disability as defined in section 3 of P.L.1985, c.145 (C.30:6D-25) is, or shall be entitled, if:

(a) the testator has identified that a devisee or beneficiary of property of the decedent's estate is a person with a developmental disability; or

(b) the person seeking appointment has actual knowledge that a devisee or beneficiary of property of the decedent's estate is a person with a developmental disability.

(2) No bond shall be required pursuant to paragraph (1) of this subsection if:

(a) the court has appointed another person as guardian of the person or guardian of the estate for the person with a developmental disability;

(b) the person seeking the appointment is a family member within the third degree of consanguinity of the person with a developmental disability; or

(3) A personal representative, testamentary guardian, or testamentary trustee who is required to provide bond pursuant to paragraph (1) of this subsection shall file with the Superior Court an initial inventory and a final accounting of the estate in that person's charge containing a true account of all assets of the estate. That person shall file an interim accounting every five years, or a lesser period of time if so ordered by the Superior Court, in the case of an extended estate or trust administration. A copy of the accountings shall be served on the Public Advocate. The Public Advocate, on behalf of the developmentally disabled person or that person's estate, may file exceptions and objections to interim or final accountings and may initiate an action to compel the person to file an accounting of the trust or estate.

(4) A personal representative, testamentary guardian, or testamentary trustee who is required to provide bond pursuant to paragraph (1) of this subsection may make application to the court to waive the bond or reduce the amount of bond for good cause shown, including the need to preserve assets of the estate.

This subsection shall not apply to qualified financial institutions pursuant to section 30 of P.L.1948, c.67 (C.17:9A-30) or to non-profit community trusts organized pursuant to P.L.1985, c.424 (C.3B:11-19 et seq.).

Nothing contained in this section shall be construed to require a bond in any case where it is specifically provided by law that a bond need not be required.

(cf: P.L.2013, c.103, s.46)

3. Section 3 of P.L.1994, c.119 (C.9:6-8.76) is amended to read as follows:

3. The task force shall consist of [30] 31 members as follows: the Commissioners of Human Services, Children and Families, Education, Community Affairs, Corrections, and Health [and Senior Services], the Attorney General, two judges of the Superior Court involved in both civil and criminal court proceedings related to child abuse and neglect as appointed by the Chief Justice of the Supreme Court, the Public Defender, the Child Advocate, and the Superintendent of State Police, or their designees, as ex officio members; two members of the Senate and the General Assembly, respectively, no more than one of whom in each case shall be of the same political party; and a county prosecutor appointed by the Attorney General. The 14 public members shall be appointed by the Governor as follows: one member who is a director of a regional diagnostic and treatment center for child abuse and neglect; one member who represents the Advocates for Children of New Jersey; one member who represents Foster and Adoptive Family Services; one member who represents the Child Placement Advisory Council; one member who represents a faith-based organization; one member who is a director of a county department of human services; one member who is a youth 21 years of age or younger who is or has been placed under the care and custody of the Division of Child Protection and Permanency because of an allegation of child abuse or neglect; two members who represent service providers under contract with the Division of Child Protection and Permanency; and five members of the public who have an interest or expertise in issues concerning child welfare. The public members shall reflect the diversity of the residents of the State and the children and families served by the State's child welfare system.

The task force membership shall comply with the multidisciplinary requirements set forth in the “Child Abuse Prevention and Treatment Act,” Pub.L.93-247 (42 U.S.C. s.5101 et seq.).

The task force shall be co-chaired[,]; one co-chair shall be the Commissioner of Children and Families and the other shall be appointed by the Governor with the advice and consent of the Senate. The second co-chair shall be selected from among the public members and shall serve at the pleasure of the Governor. The public members shall serve for a term of three years.

(cf: P.L.2019, c.395)

4. Section 7 of P.L.1997, c.175 (C.9:6-8.89) is amended to read as follows:

7. a. The board shall consist of [13] 14 members as follows: the Commissioner of Children and Families, the Commissioner of Health [and Senior Services], the Director of the Division of Child Protection and Permanency in the Department of Children and Families, the Attorney General, the Child Advocate and the Superintendent of State Police, or their designees, the State Medical Examiner, and the Chairperson or Executive Director of the New Jersey Task Force on Child Abuse and Neglect, who shall serve ex officio; and six public members appointed by the Governor, one of whom shall be a representative of the New Jersey Prosecutors' Association, one of whom shall be a Law Guardian, one of whom shall be a pediatrician with expertise in child abuse and neglect, one of whom shall be a psychologist with expertise in child abuse and neglect, one of whom shall be a social work educator with experience and expertise in the area of child abuse or a related field and one of whom shall have expertise in substance abuse.

b. The public members of the board shall serve for three-year terms. Of the public members first appointed, three shall serve for a period of two years, and three shall serve for a term of three years. They shall serve without compensation but shall be eligible for reimbursement for necessary and reasonable expenses incurred in the performance of their official duties and within the limits of funds appropriated for this purpose. Vacancies in the membership of the board shall be filled in the same manner as the original appointments were made.

c. The Governor shall appoint a public member to serve as chairperson of the board who shall be responsible for the coordination of all activities of the board and who shall provide the technical assistance needed to execute the duties of the board.

d. The board is entitled to call to its assistance and avail itself of the services of employees of any State, county, or municipal department, board, bureau, commission, or agency as it may require and as may be available for the purposes of reviewing a case pursuant to the provisions of P.L.1997, c.175 (C.9:6-8.83 et al.). The board may also seek the advice of experts, such as persons specializing in the fields of pediatric, radiological, neurological, psychiatric, orthopedic, and forensic medicine; nursing; psychology; social work; education; law enforcement; family law; substance abuse; child advocacy; or other related fields, if the facts of a case warrant additional expertise.

(cf: P.L.2023, c.177, s.20)

5. Section 14 of P.L.1944, c.27 (C.17:29A-14) is amended to read as follows:

14. a. With regard to all property and casualty lines, a filer may, from time to time, alter, supplement, or amend its rates, rating systems, or any part thereof, by filing with the commissioner copies of such alterations, supplements, or amendments, together with a statement of the reason or reasons for such alteration, supplement, or amendment, in a manner and with such information as may be required by the commissioner. If such alteration, supplement, or amendment shall have the effect of increasing or decreasing rates, the commissioner shall determine whether the rates as altered thereby are reasonable, adequate, and not unfairly discriminatory. If the commissioner shall determine that the rates as so altered are not unreasonably high, or inadequate, or unfairly discriminatory, he shall make an order approving them. If he shall find that the rates as altered are unreasonable, inadequate, or unfairly discriminatory, he shall issue an order disapproving such alteration, supplement or amendment.

b. (Deleted by amendment, P.L.1984, c.1.)

c. If an insurer or rating organization files a proposed alteration, supplement or amendment to its private passenger automobile insurance rating system, or any part thereof, the commissioner shall transmit the filing to the appropriate office in the Division of Insurance, which office shall issue a preliminary determination within 90 days of receipt of a rate filing, except that the commissioner may, for good cause, extend the time for a preliminary determination by not more than 30 days. The preliminary determination shall set forth the basis for accepting, rejecting or modifying the rates as filed. A copy of the preliminary determination shall be provided to the filer and other interested parties. Unless the filer or other interested party, including the Director of the Division of Rate Counsel [in, but not of, the Department of the Treasury] in the Department of the Public Advocate, requests a hearing, the commissioner may adopt the preliminary determination as final within 30 days of the preliminary determination. If a hearing is requested, it shall proceed on an expedited basis in accordance with the provisions of this section. If a preliminary determination is not made within the time provided, a filing shall be transmitted to the Office of Administrative Law for a hearing and the commissioner shall adopt the determination of the administrative law judge as a final decision on the filing.

For filings other than private passenger automobile, if an insurer or rating organization files a proposed alteration, supplement or amendment to its rating system, or any part thereof, which would result in a change in rates, the commissioner may, or upon the request of the filer or the appropriate office in the Division of Insurance shall, certify the matter for a hearing. The hearing shall, at the commissioner's discretion, be conducted by himself, by a person appointed by the commissioner pursuant to section 26 of P.L.1944, c.27 (C.17:29A-26), or by the Office of Administrative Law, created by P.L.1978, c.67 (C.52:14F-1 et seq.), as a contested case. The following requirements shall apply to the hearing:

(1) The hearing shall commence within 30 days of the date of the request or decision that a hearing is to be held. The hearing shall be held on consecutive working days, except that the commissioner may, for good cause, waive the consecutive working day requirement. If the hearing is conducted by an administrative law judge, the administrative law judge shall submit his findings and recommendations to the commissioner within 30 days of the close of the hearing. The commissioner may, for good cause, extend the time within which the administrative law judge shall submit his findings and recommendations by not more than 30 days. A decision shall be rendered by the commissioner not later than 60 days, or, if he has granted a 30-day extension, not later than 90 days, from the close of the hearing. A filing shall be deemed to be approved unless rejected or modified by the commissioner within the time period provided herein.

(2) The commissioner, or the Director of the Office of Administrative Law, as appropriate, shall notify all interested parties, including the Director of the Division of Rate Counsel in the Department of the Public Advocate on behalf of insurance consumers, of the date set for commencement of the hearing, on the date of the filing of the request for a hearing, or within 10 days of the decision that a hearing is to be held.

(3) The insurer or rating organization making a filing on which a hearing is held shall bear the costs of the hearing.

(4) The commissioner may promulgate rules and regulations (a) to establish standards for the submission of proposed filings, amendments, additions, deletions and alterations to the rating system of filers, which may include forms to be submitted by each filer; and (b) making such other provisions as he deems necessary for effective implementation of this act.

d. (Deleted by amendment, P.L.1984, c.1.)

e. (Deleted by amendment, P.L.2003, c.89.)

f. The notice provisions set forth in section 51 of P.L.2005, c.155 (C.52:27EE-51), shall apply to this section.

(cf: P.L.2010, c.34, s.4)

6. Section 66 of P.L.1998, c.21 (C.17:29A-46.8) is amended to read as follows:

66. a. For the purposes of this section:

“Qualified person” means a person qualified by the Commissioner of Banking and Insurance to intervene in public hearings pursuant to this section, who shall be deemed a “public servant” within the meaning of N.J.S.2C:30-2;

“Rate filing” means a filing for a rate increase by an automobile insurer writing private passenger automobile insurance in this State, other than an expedited prior approval rate filing made pursuant to section 34 of P.L.1997, c.151 (C.17:29A-46.6) and other than a rate filing made pursuant to any statutory change in coverage provided under a policy of private passenger automobile insurance.

b. The Commissioner of Banking and Insurance shall establish standards for qualifying persons to intervene in rate filings pursuant to this section. The standards shall include, but shall not necessarily be limited to, requiring that any person intervening in a rate filing demonstrate: (1) expertise in the insurance laws of this State; (2) an understanding of the actuarial principles employed in establishing rates and rating systems; (3) sufficient access to a qualified actuary and sufficient expertise to conduct a technical examination of a rate filing; (4) sufficient resources to intervene in the rate filing process as provided herein; and (5) that the person represents the interest of consumers and accepts a duty of fidelity to do so.

c. The commissioner shall require such documentation as he determines is necessary to qualify a person to intervene in a rate filing, and may charge a fee for registration with the department as an intervenor, which fee shall be payable annually.

d. The commissioner may remove the registration of an intervenor if he determines that (1) the intervenor no longer meets the qualifications, or (2) if the intervenor is convicted of a crime or loses a professional license for misconduct.

e. If an insurer or rating organization files for a rate increase for private passenger automobile insurance, the commissioner shall notify the public of the proposed rate change in a newspaper or newspapers of general circulation throughout the State. A qualified person may request, and shall receive, a copy of the rate filing and any amendments and supplements thereto and shall pay the expenses in connection therewith. The qualified person may request that the commissioner certify the rate filing for a hearing pursuant to section 14 of P.L.1944, c.27 (C.17:29A-14).

f. The commissioner shall establish by regulation the terms and conditions under which the proceedings under this section shall be conducted, including, but not limited to the supporting material which shall accompany the intervention.

g. Upon determining that the intervenor has demonstrated that the qualified person has made a substantial contribution to the adoption of any order or decision by the commissioner or a court in connection with a rate filing made pursuant to this section, the commissioner shall award reasonable advocacy and witness fees and expenses.

h. A person commits a crime of the third degree if he solicits, accepts or agrees to accept any benefits as consideration for knowingly violating or agreeing to violate a duty of fidelity to which he is subject pursuant to this section. In addition to any disposition authorized by law, the Commissioner of Banking and Insurance shall forever bar from registration as an intervenor any person convicted under this subsection.

i. A person commits a crime of the third degree if he confers, or offers or agrees to confer, any benefit the acceptance of which would be criminal under this section. In addition to any disposition authorized by law, the Commissioner of Banking and Insurance shall deny the rate filing of any person convicted under this subsection and the person shall be barred from filing for any rate increase for a period of one year.

j. Nothing herein shall be construed to preclude a prosecution or conviction for a violation of any other law.

k. This section shall expire 180 days after the effective date of the Public Advocate Restoration Act [of 2005, P.L.2005, c.155 (C.52:27EE-1 et al.)], P.L. , c. (C. ) (pending before the Legislature as this bill).

(cf: P.L.2005, c.155, s.92)

7. Section 1 of P.L.1986, c.205 (C.30:1A-4) is amended to read as follows:

1. a. There is established in, but not of, the Department of Human Services the New Jersey Boarding Home Advisory Council. The council shall consist of [14] 15 members, to be appointed by the Commissioner of Human Services in consultation with the Commissioners of Community Affairs and Health [and Senior Services], the Public Defender, the Public Advocate, the Office of the Public Guardian [for Elderly Adults] and the [Ombudsperson for the Institutionalized Elderly] New Jersey Long-Term Care Ombudsman, as follows: two persons who own or operate a boarding house as defined in P.L.1979, c.496 (C.55:13B-1 et al.); two persons who own or operate a residential health care facility as defined in section 1 of P.L.1953, c.212 (C.30:11A-1) or licensed pursuant to P.L.1971, c.136 (C.26:2H-1 et seq.); two persons who currently reside in a boarding house or a residential health care facility; one person who is a member of the organization which represents operators of boarding houses or residential health care facilities, or both; one person who represents the health care professions; one person who represents a county office on aging; one person who represents a municipal building code department; one person who represents an organization or agency which advocates for mentally ill persons in this State; one person who represents an organization or agency which advocates for physically disabled persons in this State; and two other members who shall be chosen from among persons whose work, knowledge or interest relates to boarding houses or residential health care facilities and the residents thereof, including but not limited to municipal and county elected officials, county prosecutors, social workers, and persons knowledgeable about fire prevention standards and measures needed to assure safety from structural, mechanical, plumbing and electrical deficiencies in boarding houses and residential health care facilities. In addition, the Chairman of the General Assembly Standing Reference Committee on [Health] Aging and Human Services and the Chairman of the Senate Standing Reference Committee on Health, Human Services and Senior Citizens or their designees shall serve as ex officio members of the council.

b. The terms of office of each appointed member shall be three years, but of the members first appointed, two shall be appointed for a term of one year, five for terms of two years, and seven for terms of three years. All vacancies shall be filled for the balance of the unexpired term in the same manner as the original appointment. The members of the council shall not receive any compensation for their services, but shall be reimbursed for the actual and necessary expenses incurred in the performance of their duties as members of the council.

(cf: P.L.2010, c.34, s.5)

8. Section 4 of P.L.2009, c.329 (C.30:1B-6.3) is amended to read as follows:

4. a. The Commissioner of Corrections shall designate a staff member as Coordinator for Reentry and Rehabilitative Services. The coordinator shall be qualified by training and experience to perform the duties of this position. The coordinator may be chosen by the commissioner from among the current employees of the department and the chosen employee may continue the duties and responsibilities of the current position in addition to the duties and responsibilities of the coordinator position as provided in this section.

b. The coordinator shall compile and disseminate to inmates information concerning organizations and programs, whether faith-based or secular programs, which provide assistance and services to inmates reentering society after a period of incarceration. In compiling this information, the coordinator shall consult with non-profit entities, including but not limited to the New Jersey Institute for Social Justice, that provide informational services concerning reentry, [and] the Executive Director of the Office of [Faith-based] Faith Based Initiatives in the Department of State, and the Corrections Ombudsperson in[, but not of, the Department of the Treasury] the Department of the Public Advocate.

c. The coordinator shall ensure that inmates are made aware of and referred to organizations which provide services in the county where the inmate is to reside after being released from incarceration. The coordinator shall assist inmates in gaining access to programs and procuring the appropriate services.

d. The coordinator may employ professional and clerical staff as necessary within the limits of available appropriations.

(cf: P.L.2010, c.34, s.6)

9. Section 3 of P.L.2009, c.161 (C.30:4-3.25) is amended to read as follows:

3. The department shall notify the Division of Mental Health Advocacy in the Office of the Public [Defender] Advocate within 24 hours after an unexpected death occurs at a State psychiatric hospital and shall promptly notify the Division of Mental Health Advocacy of any death of which the department has knowledge that occurs within seven days after a patient was discharged from a State psychiatric hospital.

(cf: P.L.2010, c.34, s.7)

10. Section 4 of P.L.1992, c.111 (C.30:4C-69) is amended to read as follows:

4. The Commissioner of Children and Families shall develop an interdepartmental plan for the implementation of an individualized, appropriate child and family driven care system for children with special emotional needs and for the reduction of inappropriate use of out-of-home placements of these children. The plan shall first address children ready to be returned from in-State and out-of-State residential facilities, and those at imminent risk of extended out-of-home placement. The commissioner shall consult with appropriate representatives from the State departments of Education, Human Services, Corrections, Health [and Senior Services] and Community Affairs, the [Office of the Public Defender] Public Advocate, the Child Advocate, [the Statewide Children's Coordinating Council in the Department of Children and Families,] the Administrative Office of the Courts, and Statewide family advocacy groups, in the development of the plan.

(cf: P.L.2010, c.34, s.9)

11. Section 3 of P.L.1976, c.120 (C.30:13-3) is amended to read as follows:

3. Every nursing home shall have the responsibility for:

a. (1) Maintaining a complete record of all funds, personal property and possessions of a nursing home resident from any source whatsoever, which have been deposited for safekeeping with the nursing home for use by the resident. This record shall contain a listing of all deposits and withdrawals transacted, and these shall be substantiated by receipts given to the resident or his guardian. A nursing home shall provide to each resident or his guardian a quarterly statement which shall account for all of such resident's property on deposit at the beginning of the accounting period, all deposits and withdrawals transacted during the period, and the property on deposit at the end of the period. The resident or his guardian shall be allowed daily access to his property on deposit during specific periods established by the nursing home for such transactions at a reasonable hour. A nursing home may, at its own discretion, place a limitation as to dollar value and size of any personal property accepted for safekeeping.

(2) Offering an incoming resident or the resident's guardian, in accordance with current law, at the time of admission to a nursing home on or after the effective date of P.L.2015, c.230, a form designating the beneficiary of any remaining balance in the resident's personal needs allowance account that does not exceed $1,000 upon the resident's death. In the case of a person residing in a nursing home prior to the effective date of P.L.2015, c.230, the nursing home shall have the responsibility for offering the resident or the resident's guardian, in accordance with current law, whenever possible, a form designating the beneficiary of any remaining balance in the resident's personal needs allowance account that does not exceed $1,000 upon the resident's death. Funds remaining in a personal needs allowance account at the time of a resident's death shall be included in that resident's estate and shall, consistent with N.J.S.3B:22-2, be subject to claims made by estate creditors prior to distribution to a designated beneficiary.

b. Providing for the spiritual needs and wants of residents by notifying, at a resident's request, a clergyman of the resident's choice and allowing unlimited visits by such clergyman. Arrangements shall be made, at the resident's expense, for attendance at religious services of his choice when requested. No religious beliefs or practices, or any attendance at religious services, shall be imposed upon any resident.

c. Admitting only that number of residents for which it reasonably believes it can safely and adequately provide nursing care. Any applicant for admission to a nursing home who is denied such admission shall be given the reason for such denial in writing.

d. Ensuring that an applicant for admission or a resident is treated without discrimination as to age, race, religion, sex or national origin. However, the participation of a resident in recreational activities, meals or other social functions may be restricted or prohibited if recommended by a resident's attending physician in writing and consented to by the resident.

e. Ensuring that no resident shall be subjected to physical restraints except upon written orders of an attending physician for a specific period of time when necessary to protect such resident from injury to himself or others. Restraints shall not be employed for purposes of punishment or the convenience of any nursing home staff personnel. The confinement of a resident in a locked room shall be prohibited.

f. Ensuring that drugs and other medications shall not be employed for purposes of punishment, for convenience of any nursing home staff personnel or in such quantities so as to interfere with a resident's rehabilitation or his normal living activities.

g. Permitting citizens, with the consent of the resident being visited, legal services programs, employees of the [Office of Public Defender] Department of the Public Advocate and employees and volunteers of the [Office of the Ombudsman for the Institutionalized Elderly] New Jersey Long-Term Care Ombudsman, whose purposes include rendering assistance without charge to nursing home residents, full and free access to the nursing home in order to visit with and make personal, social and legal services available to all residents and to assist and advise residents in the assertion of their rights with respect to the nursing home, involved governmental agencies and the judicial system.

(1) Such access shall be permitted by the nursing home at a reasonable hour.

(2) Such access shall not substantially disrupt the provision of nursing and other care to residents in the nursing home.

(3) All persons entering a nursing home pursuant to this section shall promptly notify the person in charge of their presence. They shall, upon request, produce identification to substantiate their identity. No such person shall enter the immediate living area of any resident without first identifying himself and then receiving permission from the resident to enter. The rights of other residents present in the room shall be respected. A resident shall have the right to terminate a visit by a person having access to his living area pursuant to this section at any time. Any communication whatsoever between a resident and such person shall be confidential in nature, unless the resident authorizes the release of such communication in writing.

h. Ensuring compliance with all applicable State and federal statutes and rules and regulations.

i. Ensuring that every resident, prior to or at the time of admission and during his stay, shall receive a written statement of the services provided by the nursing home, including those required to be offered by the nursing home on an as-needed basis, and of related charges, including any charges for services not covered under Title XVIII and Title XIX of the Social Security Act, as amended, or not covered by the nursing home's basic per diem rate. This statement shall further include the payment, fee, deposit and refund policy of the nursing home.

j. Ensuring that a prospective resident or the resident's family or guardian receives a copy of the contract or agreement between the nursing home and the resident prior to or upon the resident's admission.

(cf: P.L.2015, c.230, s.1)

12. Section 3 of P.L.1971, c.223 (C.46:8-21.1) is amended to read as follows:

3. Within 30 days after the termination of the tenant's lease or licensee's agreement, the owner or lessee shall return by personal delivery, registered or certified mail the sum so deposited plus the tenant's portion of the interest or earnings accumulated thereon, less any charges expended in accordance with the terms of a contract, lease, or agreement, to the tenant or licensee, or, in the case of a lease terminated pursuant to P.L.1971, c.318 (C.46:8-9.1), the executor or administrator of the estate of the tenant or licensee or the surviving spouse of the tenant or licensee so terminating the lease. The interest or earnings and any such deductions shall be itemized and the tenant, licensee, executor, administrator or surviving spouse notified thereof by personal delivery, registered or certified mail. Notwithstanding the provisions of this or any other section of law to the contrary, no deductions shall be made from a security deposit of a tenant who remains in possession of the rental premises.

Within five business days after:

a. the tenant is caused to be displaced by fire, flood, condemnation, or evacuation, and

b. an authorized public official posts the premises with a notice prohibiting occupancy; or

c. any building inspector, in consultation with a relocation officer, where applicable, has certified within 48 hours that displacement is expected to continue longer than seven days and has so notified the owner or lessee in writing, the owner or lessee shall have available and return to the tenant or the tenant's designated agent upon his demand the sum so deposited plus the tenant's portion of the interest or earnings accumulated thereon, less any charges expended in accordance with the terms of the contract, lease or agreement and less any rent due and owing at the time of displacement.

Within 15 business days after a lease terminates as described in section 3 of P.L.2008, c.111 (C.46:8-9.6), the owner or lessee shall have available and return to the tenant or the tenant's designated agent upon his demand any money or advance of rent deposited as security plus the tenant's portion of the interest or earnings accumulated thereon, including the portion of any money or advance of rent due to a victim of domestic violence terminating a lease pursuant to section 3 of P.L.2008, c.111 (C.46:8-9.6), less any charges expended in accordance with the terms of the contract, lease or agreement and less any rent due and owing at the time of the lease termination.

Such net sum shall continue to be available to be returned upon demand during normal business hours for a period of 30 days at a location in the same municipality in which the subject leased property is located and shall be accompanied by an itemized statement of the interest or earnings and any deductions. The owner or lessee may, by mutual agreement with the municipal clerk, have the municipal clerk of the municipality in which the subject leased property is located return said net sum in the same manner. Within three business days after receiving notification of the displacement, the owner or lessee shall provide written notice to a displaced tenant by personal delivery or mail to the tenant's last known address. In the event that a lease terminates as described in section 3 of P.L.2008, c.111 (C.46:8-9.6), within three business days after the termination, the owner or lessee shall provide written notice to the victim of domestic violence by personal delivery or mail to the tenant's last known address. Such notice shall include, but not be limited to, the location at which and the hours and days during which said net sum shall be available to him. The owner or lessee shall provide a duplicate notice in the same manner to the relocation officer. Where a relocation officer has not been designated, the duplicate notice shall be provided to the municipal clerk. When the last known address of the tenant is that from which he was displaced and the mailbox of that address is not accessible during normal business hours, the owner or lessee shall also post such notice at each exterior public entrance of the property from which the tenant was displaced. Notwithstanding the provisions of P.L.1963, c.73 (C.47:1A-1 et seq.), or any other law to the contrary, the municipal clerk, and any designee, agent or employee of the municipal clerk, shall not knowingly disclose or otherwise make available personal information about any victim of domestic violence that the clerk or any designee, agent or employee has obtained pursuant to the procedures described in section 3 of P.L.1971, c.223 (C.46:8-21.1).

Any such net sum not demanded by and returned to the tenant or the tenant's designated agent within the period of 30 days shall be redeposited or reinvested by the owner or lessee in an appropriate interest bearing or dividend yielding account in the same investment company, State or federally chartered bank, savings bank or savings and loan association from which it was withdrawn. In the event that said displaced tenant resumes occupancy of the premises, said tenant shall redeliver to the owner or lessee one-third of the security deposit immediately, one-third in 30 days and one-third 60 days from the date of reoccupancy. Upon the failure of said tenant to make such payments of the security deposit, the owner or lessee may institute legal action for possession of the premises in the same manner that is authorized for nonpayment of rent.

The Commissioner of Community Affairs, the Attorney General, the Public Advocate, or any State entity which made deposits on behalf of a tenant may impose a civil penalty against an owner or lessee who has willfully and intentionally withheld deposits in violation of section 1 of P.L.1967, c.265 (C.46:8-19), when the deposits were made by or on behalf of a tenant who has received financial assistance through any State or federal program, including welfare or rental assistance. An owner or lessee of a tenant on whose behalf deposits were made by a State entity and who has willfully and intentionally withheld such deposits in violation of this section shall be liable for a civil penalty of not less than $500 or more than $2,000 for each offense. The penalty prescribed in this paragraph shall be collected and enforced by summary proceedings pursuant to the “Penalty Enforcement Law of 1999,” P.L.1999, c.274 (C.2A:58-10 et seq.). The State entity which made such deposits on behalf of a tenant shall be entitled to any penalty amounts recovered pursuant to such proceedings.

In any action by a tenant, licensee, executor, administrator or surviving spouse, or other person acting on behalf of a tenant, licensee, executor, administrator or surviving spouse, for the return of moneys due under this section, the court upon finding for the tenant, licensee, executor, administrator or surviving spouse shall award recovery of double the amount of said moneys, together with full costs of any action and, in the court's discretion, reasonable attorney's fees.

(cf: P.L.2010, c.34, s.11)

13. Section 7 of P.L.2003, c.64 (C.46:10B-28) is amended to read as follows:

7. a. The department shall conduct examinations and investigations and issue subpoenas and orders to enforce the provisions of this act with respect to a person licensed or subject to the provisions of the “New Jersey Residential Mortgage Lending Act,” sections 1 through 39 of P.L.2009, c.53 (C.17:11C-51 et seq.).

b. The department shall examine any instrument, document, account, book, record, or file of a person originating or brokering a high-cost home loan under this act. The department shall recover the cost of examinations from the person. A person originating or brokering high-cost home loans shall maintain its records in a manner that will facilitate the department in determining whether the person is complying with the provisions of this act and the regulations promulgated thereunder. The department shall require the submission of reports by persons originating or brokering high-cost home loans which shall set forth such information as the department shall require by regulation.

c. In the event that a person fails to comply with a subpoena for documents or testimony issued by the department, the department may request an order from a court of competent jurisdiction requiring the person to produce the requested information.

d. If the department determines that a person has violated the provisions of this act, the department may do any combination of the following that it deems appropriate:

(1) Impose a civil penalty of up to $10,000 for each offense, 40% of which penalty shall be dedicated for and used by the department for consumer education through nonprofit organizations which can establish to the satisfaction of the department that they have sufficient experience in credit counseling and financial education. In determining the penalty to be assessed, the commissioner shall consider the following criteria: whether the violation was willful; whether the violation was part of a pattern and practice; the amount of the loan; the points and fees charged; the financial condition of the violator; and other relevant factors. The department may require the person to pay investigative costs, if any.

(2) Suspend, revoke, or refuse to renew any license issued by the department.

(3) Prohibit or permanently remove an individual responsible for a violation of this act from working in his present capacity or in any other capacity related to activities regulated by the department.

(4) Order a person to cease and desist any violation of this act and to make restitution for actual damages to borrowers.

(5) Pending completion of an investigation or any formal proceeding instituted pursuant to this act, if the commissioner finds that the interests of the public require immediate action to prevent undue harm to borrowers, the commissioner may enter an appropriate temporary order to be effective immediately and until entry of a final order. The temporary emergent order may include: a temporary suspension of the creditor's authority to make high-cost home loans under this act; a temporary cease and desist order; a temporary prohibition against a creditor transacting high-cost home loan business in this State, or such other order relating to high-cost home loans as the commissioner may deem necessary to prevent undue harm to borrowers pending completion of an investigation or formal proceeding. Orders issued pursuant to this section shall be subject to an application to vacate upon two days' notice, and a preliminary hearing on the temporary emergent order shall be held, in any event, within five days after it is issued, in accordance with the provisions of the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.).

(6) Impose such other conditions as the department deems appropriate.

e. Any person aggrieved by a decision of the department and who has a direct interest in the decision may appeal the decision of the department to the commissioner. The appeal shall be conducted in accordance with the provisions of the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.).

f. The department may maintain an action for an injunction or other process against any person to restrain and prevent the person from engaging in any activity violating this act.

g. A decision of the commissioner shall be a final order of the department and shall be enforceable in a court of competent jurisdiction. The department shall publish the final adjudication issued in accordance with this section, subject to redaction or modification to preserve confidentiality.

h. The provisions of this section shall not limit the authority of the Attorney General or the Public Advocate, as established pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill) from instituting or maintaining any action within the scope of [the Attorney General's] their authority with respect to the practices prohibited under this act.

(cf: P.L.2010, c.34, s.12)

14. Section 2 of P.L.1991, c.428 (C.48:2-21.17) is amended to read as follows:

2. As used in this act:

“Alternative form of regulation” means a form of regulation of telecommunications services other than traditional rate base, rate of return regulation to be determined by the board and may include, but not be limited to, the use of an index, formula, price caps, or zone of rate freedom.

“Assess” means, in relation to the Director of the Division of Rate Counsel [in, but not of, the Department of the Treasury] in the Department of the Public Advocate, the making of any assessment or statement of the compensation and expense of counsel, experts and assistants employed by rate counsel and billed by the Director of the Division of Rate Counsel [in, but not of, the Department of the Treasury] in the Department of the Public Advocate as a final agency order or determination to a local exchange telecommunications company or an interexchange telecommunications carrier filing a petition with the Board of Regulatory Commissioners pursuant to the provisions of this act.

“Board” means the Board of Regulatory Commissioners or its predecessor agency.

“Competitive service” means any telecommunications service determined by the board to be competitive prior to the effective date of this act or determined to be competitive pursuant to section 4 or 5 of this act, or any telecommunications service not regulated by the board.

“Interexchange telecommunications carrier” means a carrier, other than a local exchange telecommunications company, authorized by the board to provide long-distance telecommunications services.

“LATA” means Local Access Transport Area as defined by the board in conformance with applicable federal law.

“Local exchange telecommunications company” means a carrier authorized by the board to provide local telecommunications services.

“Protected telephone services” means any of the following telecommunications services provided by a local exchange telecommunications company, unless the board determines, after notice and hearing, that any of these services is competitive or should no longer be a protected telephone service: telecommunications services provided to business or residential customers for the purpose of completing local calls; touch-tone service or similar service; access services other than those services that the board has previously found to be competitive; toll service provided by a local exchange telecommunications company; and the ordering, installation and restoration of these services.

“Rate counsel” means the Division of Rate Counsel [in, but not of, the Department of the Treasury] in the Department of the Public Advocate acting pursuant to sections 46 through 54 of P.L.2005, c.155 (C.52:27EE-46 through C.52:27EE-54), as amended and supplemented by [P.L.2010, c.34 (C.52:27EE-86 et al.)] P.L. , c. (C. ) (pending before the Legislature as this bill).

“Telecommunications service” means any telecommunications service which is subject to regulation by the board pursuant to Title 48 of the Revised Statutes.

(cf: P.L.2010, c.34, s.13)

15. Section 1 of P.L.1995, c.180 (C.48:2-21.24) is amended to read as follows:

1. The Legislature finds and declares that it is the policy of the State to foster the production and delivery of electricity and natural gas in such a manner as to lower costs and rates and improve the quality and choices of service for all of the State's consumers and to thereby ensure that New Jersey remains economically competitive on a regional, national and international basis; to implement programs which effectuate the economic development goals of attracting and retaining business, maintaining and creating jobs and enhancing the economic vitality of the State; to achieve federal and State environmental objectives in a cost effective manner; to promote secure energy supplies and service to end users, and the efficient use, production and procurement of energy; to maintain universal access to reliable electric and gas utility service; and to reduce unnecessary and costly regulatory oversight.

The Legislature further finds and declares that competitive market forces can produce improved quality and choices of energy services at lower costs, as well as promote efficiency, reduce regulatory delay, foster productivity and innovation; that in a fully competitive marketplace, traditional utility regulation may not be required to protect the public interest; and that to varying degrees, competitive forces now pervade the wholesale electric power and natural gas markets and some segments of the retail markets in these industries.

The Legislature further finds and declares that the Division of [the Ratepayer Advocate] Rate Counsel in the Department of the Public Advocate has the authority, pursuant to [Reorganization Plan No. 001-1994,] P.L. , c. (C. ) (pending before the Legislature as this bill) to appear before the Board of Public Utilities in any matters that affect the rates of public utility customers; that this act does not modify that authority; and that the Division of [the Ratepayer Advocate] Rate Counsel therefore has full authority to intervene in matters filed with the Board of Public Utilities that are authorized by [this act] P.L.1995, c.180 (C.48:2-21.24 to 48:2‑21.30).

The Legislature therefore determines that, whenever practicable, in the interests of ratepayers and otherwise consistent with the policy goals of this act, the Board of Public Utilities should implement programs that promote a transition to a market-based, competitive environment for the production and delivery of natural gas and electricity; that during a transitional phase aimed at achieving the long-term goal of lower electricity and natural gas costs to consumers, it may be necessary for the Board of Public Utilities to implement short-term measures to promote and enhance economic development and employment in the State and otherwise permit utilities to compete for customers with competitive alternatives; that transitional programs that align ratepayer and utility interests in cost management and foster greater innovation and productivity gains within the utility can help achieve the policy goals of this act; that during the transition to a market-based, competitive environment, the Board of Public Utilities must adopt guidelines that ensure that the transitional regulation produces tangible benefits for ratepayers as compared to the traditional form of regulation and that no cross-subsidization exists between or among classes of customers; and that the Board of Public Utilities should, subject to the provisions of this act, continue to regulate the price and quality of electricity and natural gas service under traditional rate base, rate of return regulation in those segments of the marketplace where full and effective competition does not exist or whenever the board determines that energy consumers are better served thereby.

The Legislature further determines that alternative forms of regulation shall be designed to achieve the State's objective of lowering rates for New Jersey consumers.

(cf: P.L.1995, c.180, s.1)

16. Section 3 of P.L.1995, c.180 (C.48:2-21.26) is amended to read as follows:

3. a. No later than October 18, 1995 and notwithstanding any provision of the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.) to the contrary, the Board of Public Utilities shall initiate a proceeding and shall adopt, after notice, provision of the opportunity for comment, and public hearing, specific standards regarding minimum prices, confidentiality standards, maximum contract duration, filing requirements, and such other standards as the board may determine are necessary for off-tariff rate agreements consistent with this act. Any subsequent modification of the standards that is adopted by the board shall be adopted pursuant to the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.).

b. After the adoption by the board of specific standards pursuant to subsection a. of this section, an electric public utility may, within seven years of July 20, 1995, enter into an off-tariff rate agreement with an individual retail customer pursuant to the provisions of sections 3 and 4 of P.L.1995, c.180 (C.48:2-21.26 and 48:2-21.27). The provisions of sections 3 and 4 shall not apply to an off-tariff rate agreement entered into by an electric public utility after that seven-year period, except as otherwise provided by the board. Notwithstanding the seven-year limitation imposed pursuant to this subsection, an off-tariff rate agreement that is entered into during that seven-year period shall remain in effect until its expiration pursuant to the terms of the agreement.

c. An off-tariff rate agreement shall be filed with the board a minimum of 30 days prior to its effective date along with sufficient information to demonstrate that the off-tariff rate agreement meets the conditions established in subsection d. of this section and the standards established pursuant to subsection a. of this section. The entire agreement shall be available to the public, except that a public utility may petition the board to keep confidential certain parts of the agreement or supporting documentation that are competitively sensitive. Upon petition by the public utility, the board may classify as confidential any part of the agreement that is found to contain competitively sensitive information that, if revealed, would harm the competitive position of either party to the agreement. A copy of the off-tariff rate agreement and supporting information shall be served simultaneously upon the [Director of the] Division of [the Ratepayer Advocate] Rate Counsel in the Department of the Public Advocate, or its successor agency. The staff of the board and the division shall have full access to all portions of the agreement and to any supporting documentation, subject to a standard non-disclosure agreement to be approved by the board. The board or its staff shall review the agreement, and upon review the board may delay its implementation if it requires additional time to review the agreement or shall disapprove the agreement upon a finding that it does not meet the conditions established in subsection d. of this section and the standards established pursuant to subsection a. of this section. If the board does not issue notice that it is delaying implementation for further review or that it disapproves the agreement, the utility may implement the off-tariff rate agreement.

An off-tariff rate agreement implemented pursuant to this subsection shall not include any reduction in the gross receipts and franchise tax or a successor tax pursuant to P.L.1997, c.162 (C.54:30A-100 et seq.).

d. An off-tariff rate agreement implemented pursuant to this section prior to the effective date of retail competition as provided in subsection a. of section 5 of P.L.1999, c.23 (C.48:3-53) may establish a price for electricity to a retail customer that is different from, but in no case higher than, that specified in the utility's current cost-of-service based tariff rate otherwise applicable to that customer. An off-tariff rate agreement implemented pursuant to this section on or after the effective date of retail competition as provided in subsection a. of section 5 of P.L.1999, c.23 (C.48:3-53) may establish a price for the transmission or distribution of electricity to a retail customer that is different from, but in no case higher than, that specified in the electric public utility's current cost-of-service based tariff rate for transmission or distribution service otherwise applicable to that customer. An off-tariff rate agreement shall be subject to the following conditions:

(1) There shall be no retroactive recovery by the utility from its general ratepayer base of any revenue erosion that occurs prior to the conclusion of the utility's next base rate case. Subsequent to the conclusion of the utility's next base rate case, any such recovery shall be prospective only and in accordance with section 4 of P.L.1995, c.180 (C.48:2-21.27).

(2) In no event shall any customer be required to enter into an off-tariff rate agreement.

(3) An off-tariff rate for electricity at a minimum shall equal the sum of the following:

(a) the electric public utility's marginal cost to provide transmission or distribution service to the customer over the term of the off-tariff rate agreement,

(b) the per kilowatt hour contribution to the societal benefits charge, market transition charge, and transition bond charge, as established pursuant to P.L.1999, c.23 (C.48:3-49 et al.) and otherwise chargeable under the standard applicable rate schedule, and

(c) a floor margin to be specified by the board pursuant to subsection a. of this section, which shall constitute the minimum contribution by an off-tariff customer toward a public utility's fixed transmission and distribution costs.

(4) Evidence of a comprehensive energy audit of the customer's facility must be submitted to the utility prior to the effective date of the off-tariff rate agreement, in order to ensure that the customer has evaluated cost-effective energy efficiency and demand side management measures at its facility as part of its efforts to reduce electricity costs.

(5) The term of the off-tariff rate agreement shall not exceed a maximum number of years, to be specified by the board pursuant to subsection a. of this section, except that the term of an off-tariff rate agreement may exceed the maximum contract term established by the board, only with the prior review and approval of the board on a case by case basis.

(6) The electric public utility shall not make the provision of any competitive service or basic generation service offered by the public utility or its related competitive business segment to the customer a pre-condition to the offering of or agreement to an off-tariff rate agreement.

(7) The utility shall submit any information required by the filing requirements established pursuant to subsection a. of this section.

e. Each electric public utility shall file with the board and the [Director of the] Division of [the Ratepayer Advocate] Rate Counsel in the Department of the Public Advocate, on a periodic basis to be determined by the board, a report, which shall be made available to the public, that includes the number of off-tariff rate contracts implemented, the aggregate expected revenues and margins derived thereunder, and an estimate of the aggregate differential between the revenues produced under the off-tariff rate agreements and the revenues that would have been produced under a standard board-approved tariff rate, so that the board can evaluate the total impact of off-tariff rate agreements on the financial integrity of the utility and on its ratepayers.

f. Upon notice and hearing, the board may suspend an electric public utility's implementation of additional off-tariff rate agreements based upon information in the report filed pursuant to subsection e. of this section or with other good cause. The board may suspend additional off-tariff rate agreements during the pendency of any such hearings.

(cf: P.L.1999, c.23, s.53)

17. Section 5 of P.L.1995, c.180 (C.48:2-21.28) is amended to read as follows:

5. a. An electric or gas public utility may petition the Board of Public Utilities to be regulated under an alternative form of regulation for its distribution system only, for the setting of prices for all or a portion of its retail customer base, or for the purpose of creating incentives consistent with the provisions of this act without changing the rate reductions for the sustained period as set forth under section 4 of P.L.1999, c.23 (C.48:3-52), no earlier than 12 months after the starting date of retail competition as provided in subsection a. of section 5 of P.L.1999, c.23 (C.48:3-53). The public utility shall submit its plan for an alternative form of regulation with its petition. The public utility shall also file its petition and plan concurrently with [the Director of] the Division of [the Ratepayer] Rate Counsel in the Department of the Public Advocate, or its successor. The public utility shall provide, within 15 days of the filing of its petition and plan, notice of the specific filing to the clerk of each municipality, to the clerk of each board of Chosen Freeholders, and to each county executive, in the service territory of the public utility. The public utility shall also provide, within 15 days of the filing, public notice to its customers of the filing, either by notice in a newspaper that has a general circulation in its service territory or by bill inserts as directed by the board. The board shall review the plan and may approve the plan, or approve it with modifications, if the board finds, after notice and hearing, that the plan will provide benefits to customers of the public utility, and that the plan meets the following standards:

(1) Will further the State's objective of producing lower rates for New Jersey consumers;

(2) Will provide incentives for the utility to lower its costs and rates;

(3) Will provide incentives to improve utility efficiency and productivity;

(4) Will foster the long-term delivery of electricity or natural gas in a manner that will improve the quality and choices of service;

(5) Includes a mechanism for the board to monitor and review the plan on a periodic basis over its term and to take appropriate actions if it is found that the plan is not achieving its intended results;

(6) Will maintain or improve pre-existing service quality standards, except that an individual customer may agree to accept lower quality service. A public utility shall continue to provide safe, adequate and proper service pursuant to R.S.48:2-23;

(7) Will not result in cross-subsidization among or between groups of utility customers, or between the portion of the utility's business or operations subject to the alternative form of regulation and the portion of the utility's business or operations that is not subject to the alternative form of regulation;

(8) Will reduce regulatory delay and cost;

(9) Is in the public interest and will produce just and reasonable rates;

(10) Will enhance economic development in the State;

(11) Will not discourage energy efficiency or distributed generation as alternatives to distribution plant investment and will explore ways to remove the linkage between retail throughput and the recovery of fixed and stranded costs; and

(12) Is otherwise consistent with the provisions of P.L.1999, c.23 (C.48:3-49 et al.).

In preparation for the development of such plans, each electric public utility shall begin to collect distribution cost data that will be needed to evaluate accurately alternatives to traditional infrastructure investments.

b. Consistent with the provisions of P.L.1995, c.180 (C.48:2-21.24 et seq.), and provided that the plan meets the standards established in subsection a. of this section, the board may approve a plan for an alternative form of regulation that permits a gas or electric public utility to establish a rate for a group of retail customers without a finding of rate base and reasonable rate of return pursuant to the pre-existing provisions of Title 48 of the Revised Statutes, if the board determines that the rate being charged by the utility to a retail customer is no lower than a minimum price that is determined by the board to prevent anti-competitive pricing and that:

(1) The group of customers has access to a competitive market for supply of power to its site and that market pricing of delivery services for that group of customers is thereby appropriate; or

(2) The group of customers has otherwise voluntarily agreed in writing to accept a price that has not been established based upon rate base and reasonable rate of return standards pursuant to Title 48 of the Revised Statutes; or

(3) At the time of the plan's approval, the level of retail prices of the utility for the group of customers is determined to be reasonably reflective of the level necessary to produce a fair and reasonable rate of return pursuant to a current evaluation under pre-existing standards of Title 48 of the Revised Statutes, and that the plan provides mechanisms for prospective adjustments to rates that will track trends in utility rates.

c. (Deleted by amendment, P.L.1999, c.23).

d. An alternative regulation plan as provided for in this section shall not include any mechanism for:

(1) Recovery of revenue erosion from other ratepayers; or

(2) A reduction in the gross receipts and franchise tax or a successor tax pursuant to P.L.1997, c.162 (C.54:30A-100 et seq.).

e. The board may require an independent audit or such accounting and reporting systems from electric and gas utilities as are necessary to allow a proper allocation of investments, costs or expenses for all services provided under the provisions of P.L.1995, c.180 (C.48:2-21.24 et seq.) that are subject to the jurisdiction of the board.

f. Consistent with the provisions of this section, the Legislature hereby authorizes and directs the New Jersey Economic Development Authority, in conjunction with the Board of Public Utilities, to establish the New Jersey Senior and Alternate Vital Energy (NJ SAVE) program for the purpose of funding capital improvements of natural gas distribution facilities, and for purchase and installation of natural gas heating equipment and appliances located on the premises of homeowners, where those homeowners reside in all-electric homes in age-restricted communities.

The authority may issue bonds on behalf of gas public utilities, the proceeds of which may be used for the purpose of distributing in the form of loans to eligible customers for the purpose of allowing such customers to pay home heating and appliance conversion costs and the customer's contribution, to the extent applicable, to gas distribution system extension costs required to serve those customers.

The gas public utility shall be permitted to assess a meter charge, as approved by the board, to recover the funds to repay loan principal and interest. Monies collected by the gas public utility as a result of such meter charge shall be utilized by the gas public utility to repay the bonds issued by the authority. Nothing in this section shall be construed to relieve the gas public utility of its obligation to repay any bonds issued by the authority.

(cf: P.L.1999, c.23, s.55)

18. Section 7 of P.L.1995, c.180 (C.48:2-21.30) is amended to read as follows:

7. Nothing in [this act] P.L.1995, c.180 (C.48:2-21.24 to 48:2‑21.30) shall be construed to alter or diminish in any way the authority of the Division of [the Ratepayer Advocate] Rate Counsel in the Department of the Public Advocate to participate in any proceeding before the Board of Public Utilities that may affect the rates that are charged to customers of an electric public utility.

(cf: P.L.1995, c.180, s.7)

19. Section 67 of P.L.1997, c.162 (C.48:2-21.34) is amended to read as follows:

67. a. As used in this section:

“Base rates” means the rates, including minimum bills, charged for utility commodities or service subject to the board's jurisdiction, other than the rates charged under a utility's levelized energy adjustment clause, hereinafter “LEAC,” or levelized gas adjustment clause, hereinafter “LGAC,” or equivalent rate provision;

“Base year” means the calendar year 1996;

“Board” means the Board of Public Utilities;

“Manufacturing facility” means a facility:

(1) with respect to which the owner of the facility shall have entered into an off-tariff rate agreement with an electric public utility, pursuant to the provisions of P.L.1995, c.180 (C.48:2-21.24 et seq.);

(2) that manufactures products made from using “postconsumer material,” as that term is defined in section 247.3 of title 40, Code of Federal Regulations, and other recovered material feedstocks that meet the requirements of the Comprehensive Procurement Guideline For Products Containing Recovered Materials as promulgated by the United States Environmental Protection Agency in section 247.1 et seq. of title 40, Code of Federal Regulations, pursuant to the “Resource Conservation and Recovery Act,” Pub.L.94-580 (42 U.S.C. s.6901 et seq.) and Executive Order No. 13101, issued by the President of the United States on September 14, 1998, provided that at least 75 percent of the manufacturing facility's total annual sales dollar volume of such products that are produced in New Jersey meet the recycled content standards within such guidelines;

(3) for which a “comprehensive energy audit,” as that term is defined in section 2 of P.L.1995, c.180 (C.48:2-21.25), shall have been undertaken within 90 days after the effective date of P.L.2007, c.94 (C.48:2-21.36 et al.), which audit shall have evaluated cost-effective energy efficiency and conservation measures as part of the efforts to reduce energy costs;

(4) that has been in operation in this State for at least 25 years as of the effective date of P.L.2007, c.94 (C.48:2-21.36 et al.); and

(5) at which at least 800 employees are employed on the first business or work day after the expiration of such off-tariff rate agreement;

“Postconsumer material manufacturing facility” means a facility that:

(1) received service under an electric public utility rate schedule that applied only to the owner of the facility on January 1, 2004;

(2) manufactures products made from “postconsumer material,” as that term is defined in 40 C.F.R. s.247.3; provided however, that not less than 75 percent of the facility's total annual sales dollar volume of such products produced in this State meet the definition of “postconsumer material”;

(3) completed a “comprehensive energy audit,” as that term is defined pursuant to section 2 of P.L.1995, c.180 (C.48:2-21.25), not more than 48 months before but not later than 90 days after the effective date of P.L.2009, c.90 (C.52:27D-489a et al.); and

(4) employed, individually or collectively with affiliated facilities, not less than 150 employees in this State on April 1, 2009;

“Sales and use tax” means the sales and use tax liability computed on sales and use of energy and utility service as defined in section 2 of P.L.1966, c.30 (C.54:32B-2);

“Utility” means a public utility subject to regulation by the board pursuant to Title 48 of the Revised Statutes; and

“Utility service” means the supply, transmission, distribution or transportation of electricity, natural gas or telecommunications services or any combination of such commodities, processes or services.

b. No later than 60 days after the date this act is enacted, each electric, gas and telecommunications utility subject to the provisions of this act shall file with the board, and shall simultaneously provide copies to the [Director of the] Division of [the Ratepayer Advocate] Rate Counsel in the Department of the Public Advocate, revised tariffs and such other supporting schedules, narrative and documentation required by this act, as set forth in this section, to reflect in the utility's rates the changes in tax liability effected pursuant to this act. No later than 90 days after the date of the utility's filing, and after determining that the filing and the rate changes provided for therein are in compliance with the provisions of this act, the board shall approve the utility's filing and associated rates for billing to the utility's customers, effective for utility service rendered on and after January 1, 1998. If the board determines that the utility's filing and the associated rate changes provided for therein are not in compliance with the provisions of this act, the board shall require the utility to amend or otherwise modify its filing to render it in compliance. The board may also permit the rates provided for in the utility's filing to be implemented on an interim basis pending the board's final determination in the event the board, in its discretion, determines that due to the filing's complexity, or for other valid reasons, including but not limited to the enactment of this act after June 30, 1997, additional time is needed for the board to complete its review of the filing. If the rates approved by the board upon its final determination are less than the rates implemented on an interim basis, the difference shall be refunded to the utility's customers with interest computed in accordance with N.J.A.C.14:3-7.5(c). The rate adjustments implemented pursuant to this act shall not constitute a fixing of rates pursuant to R.S.48:2-21 and shall not be subject to the hearing requirements set forth in that section.

c. As of the effective date of the rate changes implemented pursuant to this act, and except for rates applicable to sales that were or are currently exempt from the unit-based energy taxes formerly imposed pursuant to P.L.1940, c.5 (C.54:30A-49 et seq.) and rates applicable to sales to which section 59 of P.L.1997, c.162 (C.48:2-21.31) applies, the board shall remove from the base rates of each electric public utility and gas public utility the unit tax rates included therein for the recovery of those unit-based energy taxes, and include therein provision for the recovery of corporation business tax imposed pursuant to P.L.1945, c.162 (C.54:10A-1 et seq.), and additionally shall authorize the collection of the sales and use tax imposed pursuant to P.L.1966, c.30 (C.54:32B-1 et seq.), as follows:

(1) The base rates of each gas and electric utility shall be reduced by the amount of the unit-based energy taxes per kilowatthour or per therm included therein.

(2) The provision for corporation business tax initially included in the base rates of each gas and electric utility shall be based on the utility's after-tax net income earned in the base year as booked, unless the board determines, in its discretion, that such income as booked is unusually high or low or otherwise unrepresentative of the utility's prospective net income, in which case the utility's base year net income shall be adjusted as determined by the board.

To permit the board to make this determination, in addition to including in its filing schedules showing its net income earned in the base year as booked, the utility shall include adjustments to such booked income to eliminate the effect of revenues, expenses and extraordinary or other charges that are non-recurring, atypical, or both, including, but not limited to an adjustment to eliminate the effect of unusually hot or cold weather, and that would otherwise make the utility's base year net income unusually high or low or otherwise unrepresentative of the utility's prospective net income. If the adjustment is being made to eliminate the effect of unusually hot or cold weather, associated revenue and expense adjustments shall also be made. Subject to the board's approval, such adjusted income shall be the basis for the calculation of the initial provision for corporation business tax to be included in the utility's base rates.

The utility shall also include a calculation of its rate of return on common equity achieved in the base year, both as booked and as adjusted in accordance with the foregoing. The calculation shall be made employing the methodology set forth in N.J.A.C.14:12-4.2(b)1, and shall separately show the effect of reflecting adjustments to the calculation, if any, that may have been employed historically in establishing the utility's rate of return on common equity allowed for ratemaking purposes. The utility's filing shall also include copies of its audited financial statements for the base year and associated quarterly and other reports filed with the Securities and Exchange Commission.

To reflect the provision for corporation business tax in base rates, the demand charges, or charges per kilowatt, decatherm or million cubic feet; the energy charges, or charges per kilowatthour or per therm; and the customer charges, or charges other than demand and energy charges, set forth in each base rate schedule, and the floor price employed in parity rate schedules, included in the utility's tariff filed with and approved by the board shall be increased by amounts determined by multiplying such charges by the adjustment factor, “A e, g” derived below:

A e, g = ((I e, g) x (Rs/(1-Re))

-------------------------------------

(Br e, g)

where:

“A e, g” means the adjustment factor applicable to electric base rates (e), gas base rates (g), or both, other than rates applicable to sales that were exempt from unit-based energy taxes formerly imposed pursuant to P.L.1940, c.5 (C.54:30A-49 et seq.) or to which section 59 of P.L.1997, c.162 (C.48:2-21.31) applies;

“I e, g” means the utility's base year after-tax net income from electric or gas sales, or both, and transportation service subject to the board's jurisdiction and other operating revenue if such revenue is reflected in the utility's cost of service for ratemaking purposes, adjusted as approved by the board;

“Br e, g” means the utility's base year revenue from base rates applicable to electric or gas sales, or both, and transportation service subject to the board's jurisdiction, but excluding sales that were exempt from unit-based energy taxes formerly imposed pursuant to P.L.1940, c.5 (C.54:30A-49 et seq.) or to which section 59 of P.L.1997, c.162 (C.48:2-21.31) applies;

“Rs” means the corporation business tax rate, expressed as a decimal;

“Rf” means the applicable federal corporation income tax rate expressed as a decimal; and

“Re” equals Rs + Rf(1-Rs).

The utility shall account for the changes in tax liability provided for by this act effective January 1, 1998. Such accounting shall include the recording on the utility's income statement and balance sheet of deferred corporation business tax defined, for book accounting purposes, as differences in corporation business tax expense arising from timing differences in the recognition of revenue and expenses for book and tax purposes.

(3) When billed to the utility's customers, the adjusted base rate charges determined pursuant to paragraphs (1), (2), and (4) of this subsection, and the charges determined pursuant to the utility's levelized energy adjustment clause, levelized gas adjustment clause, or both, as determined both upon the effective date of the rate changes authorized by this act and as revised prospectively in accordance with the utility's tariff filed with and approved by the board, and the transitional energy facility assessment unit rate surcharges, hereinafter, “TEFA unit rate surcharges,” determined in accordance with subsection d. of this section, shall be increased by an amount determined by multiplying such charges by the sales and use tax rate imposed under P.L.1966, c.30 (C.54:32B-1 et seq.). In addition to the utility's rates for service included in its tariff, for informational purposes the tariff shall include such rates after application of the sales and use tax authorized by this section.

(4) The utility's filing with the board to implement the rate changes provided for by this act shall include an analysis, description, and quantification of the effect of the changes in rates and tax payments implemented pursuant to this act on the utility's requirement for cash working capital, and if such requirement is less than the cash working capital allowed for the collection and payment of unit-based energy taxes formerly imposed pursuant to P.L.1940, c.5 (C.54:30A-49 et seq.) in determining the utility's base rates in effect prior to the rate changes implemented pursuant to this act, and to the extent the working capital reduction is not offset by a reduction in net deferred taxes as provided for below, such base rates shall be reduced by the reduction in the utility's revenue requirement associated with the remaining reduction in the working capital requirement not so offset, if any. The reduction in working capital shall be determined by using the same methodology employed in establishing the working capital allowance related to unit-based energy taxes reflected in the utility's base rates in effect prior to the rate changes implemented pursuant to this act. The reduction in the utility's revenue requirement associated with the reduced working capital requirement shall be calculated using the utility's last overall rate of return allowed by the board, including provision for federal income taxes and the corporation business tax implemented pursuant to this act payable on the equity portion of the return, and shall be implemented on the effective date of the rate changes provided for, and in the manner set forth in paragraph (2) of this subsection.

If the utility's requirement for cash working capital is increased as a result of the changes in rates and tax payments implemented pursuant to this act, the utility may accrue carrying costs, calculated at its last overall rate of return allowed by the board and applied on a simple annual interest basis without compounding, on the increased working capital requirement and request recovery of such carrying costs in a rate proceeding before the board.

The working capital-related base rate changes and carrying cost accruals shall be subject to the board's approval, and shall not be included in the determination of the TEFA unit tax surcharges provided for in subsection d. of this section.

The utility's filing with the board to implement the rate changes provided for by this act shall also include an analysis, description and quantification of net deferred taxes. For the purposes of this section, “net deferred taxes” means deferred corporation business taxes, net of federal deferred income taxes, associated with the tax and rate changes implemented pursuant to this act, including deferred corporation business tax recorded in accordance with section 4 of P.L.1945, c.162 (C.54:10A-4), projected for the calendar year in which this act takes effect and for each year of the tax life of the asset giving rise to the deferred corporation business taxes pursuant to section 4 of P.L.1945, c.162 (C.54:10A-4).

If the change in such net deferred taxes projected for the calendar year in which the rate changes implemented pursuant to this act take effect is negative and if the utility's requirement for working capital is reduced as a result of the changes in rates and tax payments implemented pursuant to this act, the working capital-related rate reduction that otherwise would have been implemented pursuant to this subsection shall be treated as set forth in subparagraph (a) or (b) of this paragraph. For the purposes of this act, a change in net deferred taxes is considered negative when it reduces an existing deferred tax liability or creates a deferred tax asset on the utility's balance sheet. An appropriate rate adjustment for the working capital impacts of this act, reflecting all relevant facts and circumstances at the time of the adjustment, shall be made in the year when the earlier of the following events occur:

(a) The year in which the reduction in carrying costs assumed for the rate reduction for working capital that would have been made but for this paragraph is no longer required to offset, on a present value basis, the annual carrying costs calculated on the accumulated balance of negative net deferred taxes projected to be recorded by the utility, its successors and assigns, over the tax life of the single asset account giving rise to such net deferred taxes pursuant to section 4 of P.L.1945, c.162 (C.54:10A-4). For the purposes of this subparagraph (a):

(i) Carrying costs and present values are to be computed using the weighted average after-tax rate of return approved by the board in the utility's last base rate proceeding.

(ii) The accumulated balance of such negative net deferred taxes shall include net deferred taxes associated with all assets and liabilities originally placed in service by the utility and held by the utility or a company affiliated with the utility regardless of whether or not such assets continue to be subject to regulation by the New Jersey Board of Public Utilities.

(b) The year in which both an appropriate working capital adjustment and the accumulated balance of negative deferred taxes, as described in sub-subparagraph (ii) of subparagraph (a) of this paragraph (4), are reflected in the utility's rate base in a rate proceeding before the board. It is the intent of this section to fully compensate utilities on a present value basis, for the carrying costs associated with negative net deferred taxes arising as a result of this act, and to remit to ratepayers any credit due them as a result of any overcompensation as may have occurred due to the treatment of working capital and deferred taxes as set forth herein or in subparagraph (a) of this paragraph (4). At the time the above base rate adjustment is made, an analysis shall be made to determine if such carrying costs have been or will be fully recovered pursuant to the intent of this provision and any additional credit or charge to ratepayers to adjust for ratepayer overpayments or underpayments, if any shall be addressed.

If the change in net deferred taxes is positive, the increase shall be added to, or increase, the reduction in the utility's requirement for working capital if the requirement is reduced as a result of the rate and tax payment changes implemented pursuant to this act, or subtracted from the working capital requirement if it is increased, and the resultant net working capital requirement shall be reflected in rates or accrue carrying costs in the same manner as prescribed for changes in the utility's requirement for working capital above.

The deferred tax-related rate changes or carrying cost accruals shall be subject to the board's approval and shall not be included in the determination of the TEFA unit rate surcharges provided for in subsection d. of this section.

d. (1) Electric and gas utilities shall file, for the board's review and approval, initial TEFA unit rate surcharges determined by deducting from each unit-based energy tax unit tax rate effective January 1, 1997 the following:

(a) An amount per kilowatthour or per therm determined by multiplying the total revenue received in the base year from sales to which that unit tax rate would have been applicable by the factor Ru/(1 + Ru), where Ru is the sales and use tax rate imposed under P.L.1966, c.30 (C.54:32B-1 et seq.) expressed as a decimal, and dividing the result by the kilowatthours or therms billed in that unit tax rate class in the base year; and

(b) An amount per kilowatthour or per therm determined by dividing the revenue that would have been received in the base year from the inclusion, in the manner prescribed in paragraph (2) of subsection c. of this section, of the corporation business tax in the rates applicable to sales billed in that unit tax rate class by the kilowatthours or therms billed in that rate class. In each case, the determination shall reflect the effect of adjustments that affect the level of sales and revenue, if any, as provided in subsection c. of this section. Of the resultant rate per kilowatthour or per therm, the portion for recovery of the utility's transitional energy facilities assessment liability shall be determined by multiplying such rate by the factor (1 - Rs), where Rs is the corporation business tax rate expressed as a decimal.

The TEFA unit rate surcharges shall constitute non-bypassable wires and/or mains charges of the utility, and shall be applied to all sales within the customer classes to which they apply, regardless of whether such customers are purchasing bundled or unbundled services from the utility, but shall not be applied to sales:

(i) that were or are currently exempt from unit-based energy taxes formerly imposed pursuant to P.L.1940, c.5 (C.54:30A-49 et seq.) or to which section 59 of P.L.1997, c.162 (C.48:2-21.31) applies,

(ii) for a period of seven years commencing on the first day after the expiration of an off-tariff rate agreement, entered into or negotiated pursuant to the provisions of P.L.1995, c.180 (C.48:2-21.24 et seq.), to a manufacturing facility for use or consumption directly and primarily in the production of tangible personal property, other than energy, and

(iii) for a period of seven years beginning on January 1, 2010, to a postconsumer material manufacturing facility for use or consumption directly and primarily in the production of tangible personal property, other than energy.

Notwithstanding the provisions of the exemption provided in sub-subparagraph (ii) and sub-subparagraph (iii) of subparagraph (b) of paragraph (1) of subsection d. of this section, the TEFA unit rate surcharge shall be applied to the sales to the owner of the manufacturing facility or the postconsumer material manufacturing facility and the owner shall be refunded an amount equal to the TEFA unit rate surcharge paid by the filing, within 30 days following the close of a calendar quarter in which the exemption applies, of a claim with the Director of the Division of Taxation in the Department of the Treasury for a refund of the TEFA unit rate surcharge paid, which refund shall be paid within 60 days of the refund claim being filed. Proof of claim for refund shall be made by the submission of such records and other documentation as the director may require. If the owner of the manufacturing facility or the postconsumer material manufacturing facility at any time during the exemption period provided in sub-subparagraph (ii) or sub-subparagraph (iii) of subparagraph (b) of paragraph (1) of subsection d. of this section relocates the manufacturing facility to a location outside of this State, the owner shall pay to the director the amount of TEFA unit rate surcharge for which an exemption shall have been allowed and refund obtained under this section. The State Treasurer shall notify the director of the relocation of a manufacturing facility or a postconsumer material manufacturing facility to a location outside of this State, and the director shall issue a tax assessment for the recapture of tax, equal to the amount of TEFA unit rate surcharge for which an exemption shall have been allowed and refund obtained under this section. The recapture of tax shall be a State tax subject to the State Uniform Tax Procedure Law, R.S.54:48-1 et seq., and shall be deposited in the General Fund.

If, following the effective date of this act, a customer taking bundled service from the utility shall elect to obtain its requirements from another supplier and take transportation or wheeling service from the utility, the TEFA unit rate surcharge applicable to the bundled service shall continue to apply to the transportation or wheeling service. The TEFA components of the unit rate surcharges determined pursuant to this subsection (the components of the surcharges remaining after deducting the provision for corporation business tax included therein) shall be used to determine the transitional energy facility assessment liability pursuant to sections 36 through 49 of P.L.1997, c.162 (C.54:30A-100 through C.54:30A-113).

(2) Unless reduced pursuant to paragraphs (3) and (4) of this subsection, the initial TEFA unit rate surcharges are to be reduced annually on January 1, 1999 through January 1, 2001 by the following percentages:

January 1, 1999, 20%

January 1, 2000, 40%

January 1, 2001, 60%

(3) For each year beginning with calendar year 1998 and ending with calendar year 2001, the TEFA surcharge adjustment shall be determined as the difference between:

(a) The sum of the estimated, or actual when known, (i) TEFA liabilities, as defined in section 43 of P.L.1997, c.162 (C.54:30A-107), and sales and use taxes collected and corporation business taxes booked for the year 1998 by the gas and electric utilities and other entities subject to the TEFA provisions of this act (the year 1998 liability), and (ii) the TEFA liabilities of those utilities and entities in all years following the year 1998 through the year in which a determination is being made pursuant to this subsection (the determination year); and

(b) The sum of (i) the total of each remitter's base year liability, as defined in section 37 of P.L.1997, c.162 (C.54:30A-101), and (ii) the cumulative TEFA obligation, defined as the sum through the determination year of the amounts calculated by multiplying, for the applicable year, the percentage in the second column of the following table:

Determination Year % of

Year 1998

TEFA

-----------------------------------------------

1999 80%

2000 60%

by the Year 1998 TEFA,

where the Year 1998 TEFA is calculated as the total of each remitter's base year liability less the sales and use taxes collected and the corporation business taxes booked for the privilege period ending in calendar year 1998 by the gas and electric utilities and other entities subject to the TEFA provisions of this act. For purposes of this subsection, the amounts assumed for the determination year, including the year 1998 liability when first determined for the purposes of this subsection, shall be estimates based on nine months of actual data through and including the month of September, and three months of data forecast for the months of October through December.

(4) If the TEFA surcharge adjustment determined for the determination year is positive (that is, if the amount determined pursuant to subparagraph (a) of paragraph (3) of this subsection is greater than the amount determined pursuant to subparagraph (b) of paragraph (3) of this subsection), no reduction shall be made in the reduction in the TEFA unit rate surcharges provided for in paragraph (2) of this subsection for the year following the determination year. If the TEFA surcharge adjustment is negative, the reduction in the TEFA unit rate surcharges that otherwise would have been implemented on January 1 of the year following the determination year pursuant to paragraph (2) of this subsection shall be reduced by an amount (by percentage points) equal to the percentage the TEFA surcharge adjustment is of the total of the base year transitional energy facility assessment of all remitters, as defined in section 37 of P.L.1997, c.162 (C.54:30A-101), provided however, that such reduction in the reduction in the TEFA unit rate surcharges shall not exceed the percentage shown in paragraph (2) of this subsection for that year; and provided further that in the first two years, that such reduction shall not exceed 10 percentage points for each year.

(5) (a) The TEFA unit rate surcharges for calendar years 2002 through 2011 shall be the same as the TEFA unit rate surcharges in effect for calendar year 2001.

(b) The TEFA unit rate surcharges in effect for calendar year 2011 shall be reduced on January 1, 2012 and January 1, 2013 by the following percentages:

January 1, 2012 25%

January 1, 2013 50%

e. The utility's filing with the board to implement the rate changes provided for by this act shall include proof of revenue schedules that show for each rate schedule included in the utility's tariff, aggregated by unit-based energy tax unit tax classes, the number of customers billed under the rate schedule, the billing determinants of such customers (i.e. the kilowatts of billing demand and kilowatthours of electric energy consumed, and the million cubic feet/decatherm subject to gas capacity-related charges and decatherm of gas consumed) and the associated revenue, both as booked in the base year and on a pro forma basis reflecting the rate changes implemented pursuant to this act. The proof of revenue shall additionally show the amount of unit-based energy taxes included in the base year revenue as booked, the unit-based energy taxes that would have been collected at the unit-based energy tax unit tax rates effective January 1, 1997, if different, as well as the corporation business tax, sales and use tax and transitional energy facility assessment revenue that would have been collected or received on a pro forma basis if the rates implemented pursuant to this act had been in effect in the base year.

f. The board may, in its discretion, permit the rate changes provided for in this act to be implemented as part of a pending base rate case or other proceeding in which the utility's rates are to be changed, provided that the effective date of the changes is not delayed beyond the date on which the changes would have been implemented under subsection c. of this section. The board may also, pursuant to its powers provided by law, permit or require further modifications in the implementation of this section to address unforeseen consequences arising out of the implementation of this act.

g. Customers of the utility who are exempt from the sales and use tax imposed on sales of gas and/or electricity or as a result of rate changes occurring prior to the effective date of this act or for other valid reasons are due a refund of sales or use tax inadvertently imposed on such customers as a result of implementing the rate changes provided for by this act shall file with the State Treasurer to obtain such refunds. The State Treasurer shall promptly notify the utility of customers granted refunds under this provision in order to prevent additional collections of the sales and use tax from such customers.

h. Public utilities providing telecommunications service regulated by the board shall file for the board's review and approval revised tariffs that eliminate from the rates applicable to such service the excise tax liability included therein pursuant to P.L.1940, c.4 (C.54:30A-16 et seq.), and shall include therein the corporation business tax calculated using the methodology used in calculating the adjustment factor set forth in paragraph (2) of subsection c. of this section. Subsection d. of this section shall not apply to telecommunication utilities, and telecommunication utilities subject to a plan of regulation other than rate base/rate of return shall additionally not be required to file the rate of return information required by paragraph (2) of subsection c. Such utilities shall, however, include a narrative and/or other documentation as required by the board to support the reasonableness of the after-tax income, which may be adjusted to eliminate the effect of non-recurring or other atypical events, on which the corporate business tax inclusion in rates is based. Telecommunications utilities shall comply with all other applicable provisions of this section.

i. (1) The board shall not adjust the rates of a public utility, as provided in subsections c. and d. of this section, for a purchase by a cogenerator of natural gas and the transportation of that gas, that is exempt from sales and use tax pursuant to paragraph (2) of subsection b. of section 26 of P.L.1997, c.162 (C.54:32B-8.46). The board shall not allocate, in any future rate case, any sales and use tax, corporation business tax, or transitional energy facility assessment to rates for this purpose.

(2) The board shall adjust the rates, as provided in subsection c. of this section, for a purchase by a cogenerator of any quantity of natural gas and the transportation of that gas that is not exempt from sales and use tax pursuant to paragraph (2) of subsection b. of section 26 of P.L.1997, c.162 (C.54:32B-8.46).

(3) For the purposes of this section, “cogenerator” means a person or business entity that owns or operates a cogeneration facility in the State of New Jersey, which facility is a plant, installation or other structure whose primary purpose is the sequential production of electricity and steam or other forms of useful energy which are used for industrial, commercial, heating or cooling purposes, and which is designated by the Federal Energy Regulatory Commission, or its successor, as a “qualifying facility” pursuant to the provisions of the “Public Utility Regulatory Policies Act of 1978,” Pub.L.95-617.

(cf: P.L.2009, c.90, s.51)

20. Section 3 of P.L.2007, c.94 (C.48:2-21.36) is amended to read as follows:

3. a. As used in this section, “manufacturing facility” means a facility:

(2) that manufactures products made from using “postconsumer material,” as that term is defined in 40 C.F.R. s.247.3, and other recovered material feedstocks that meet the requirements of the Comprehensive Procurement Guideline For Products Containing Recovered Materials as promulgated by the United States Environmental Protection Agency in 40 C.F.R. s.247.1 et seq., pursuant to the “Resource Conservation and Recovery Act,” Pub.L.94-580 (42 U.S.C. s.6901 et seq.) and Executive Order No. 13101, issued by the President of the United States on September 14, 1998, provided that at least 75 percent of the manufacturing facility's total annual sales dollar volume of such products that are produced in New Jersey meet the recycled content standards within such guidelines;

(4) that has been in operation in this State for at least 25 years as of the effective date of P.L.2007, c.94 (C.48:2-21.36 et al.); and

(5) at which at least 800 employees are employed on the first business or work day after the expiration of such off-tariff rate agreement.

b. An electric public utility or a gas public utility may enter into an agreement with the owner of a manufacturing facility that establishes a price for the transmission or distribution of electricity or natural gas, as appropriate, to that manufacturing facility that is different from, but in no case higher than, that specified in the electric public utility's or gas public utility's current cost-of-service based tariff rate for transmission or distribution service otherwise applicable to the manufacturing facility.

c. The board shall approve the agreement if such agreement meets all of the following conditions:

(1) The agreement shall be filed with the board and the Division of Rate Counsel in the Department of the [Treasury] Public Advocate;

(2) The agreement shall contain a provision that the owner of the manufacturing facility would have relocated the facility outside of the State to a location where electric power or natural gas supply could be obtained at a lower cost, had it not entered into the agreement;

(3) There shall be no retroactive recovery by the electric public utility or gas public utility, as appropriate, from its general ratepayer base of any revenue erosion that occurs prior to the conclusion of the utility's next base rate case. Subsequent to the conclusion of the utility's next base rate case, any such recovery shall be prospective only. The board may require the utility to provide proof that there shall be no such retroactive recovery;

(4) There shall be no undue transfer of cost allocation or revenue recovery responsibility by the electric public utility or gas public utility, as appropriate, from the utility to its general ratepayer base. The utility agrees to be subject to an independent audit or such accounting and reporting systems the board may deem as necessary to ensure that costs are allocated properly and that revenue recovery responsibility is not transferred; and

(5) The term of the rate agreement shall begin within one year of the effective date of P.L.2007, c.94 (C.48:2-21.36 et al.) and shall not exceed seven years in duration.

(cf: P.L.2010, c.34, s.14)

21. Section 38 of P.L.1999, c.23 (C.48:3-87) is amended to read as follows:

38. a. The board shall require an electric power supplier or basic generation service provider to disclose on a customer's bill or on customer contracts or marketing materials, a uniform, common set of information about the environmental characteristics of the energy purchased by the customer, including, but not limited to:

(1) Its fuel mix, including categories for oil, gas, nuclear, coal, solar, hydroelectric, wind and biomass, or a regional average determined by the board;

(2) Its emissions, in pounds per megawatt hour, of sulfur dioxide, carbon dioxide, oxides of nitrogen, and any other pollutant that the board may determine to pose an environmental or health hazard, or an emissions default to be determined by the board; and

(3) Any discrete emission reduction retired pursuant to rules and regulations adopted pursuant to P.L.1995, c.188.

b. Notwithstanding any provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) to the contrary, the board shall initiate a proceeding and shall adopt, in consultation with the Department of Environmental Protection, after notice and opportunity for public comment and public hearing, interim standards to implement this disclosure requirement, including, but not limited to:

(1) A methodology for disclosure of emissions based on output pounds per megawatt hour;

(2) Benchmarks for all suppliers and basic generation service providers to use in disclosing emissions that will enable consumers to perform a meaningful comparison with a supplier's or basic generation service provider's emission levels; and

(3) A uniform emissions disclosure format that is graphic in nature and easily understandable by consumers. The board shall periodically review the disclosure requirements to determine if revisions to the environmental disclosure system as implemented are necessary.

Such standards shall be effective as regulations immediately upon filing with the Office of Administrative Law and shall be effective for a period not to exceed 18 months, and may, thereafter, be amended, adopted or readopted by the board in accordance with the provisions of the "Administrative Procedure Act."

c. (1) The board may adopt, in consultation with the Department of Environmental Protection, after notice and opportunity for public comment, an emissions portfolio standard applicable to all electric power suppliers and basic generation service providers, upon a finding that:

(a) The standard is necessary as part of a plan to enable the State to meet federal Clean Air Act or State ambient air quality standards; and

(b) Actions at the regional or federal level cannot reasonably be expected to achieve the compliance with the federal standards.

(2) By July 1, 2009, the board shall adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), a greenhouse gas emissions portfolio standard to mitigate leakage or another regulatory mechanism to mitigate leakage applicable to all electric power suppliers and basic generation service providers that provide electricity to customers within the State. The greenhouse gas emissions portfolio standard or any other regulatory mechanism to mitigate leakage shall:

(a) Allow a transition period, either before or after the effective date of the regulation to mitigate leakage, for a basic generation service provider or electric power supplier to either meet the emissions portfolio standard or other regulatory mechanism to mitigate leakage, or to transfer any customer to a basic generation service provider or electric power supplier that meets the emissions portfolio standard or other regulatory mechanism to mitigate leakage. If the transition period allowed pursuant to this subparagraph occurs after the implementation of an emissions portfolio standard or other regulatory mechanism to mitigate leakage, the transition period shall be no longer than three years; and

(b) Exempt the provision of basic generation service pursuant to a basic generation service purchase and sale agreement effective prior to the date of the regulation.

Unless the Attorney General or the Attorney General's designee determines that a greenhouse gas emissions portfolio standard would unconstitutionally burden interstate commerce or would be preempted by federal law, the adoption by the board of an electric energy efficiency portfolio standard pursuant to subsection g. of this section, a gas energy efficiency portfolio standard pursuant to subsection h. of this section, or any other enhanced energy efficiency policies to mitigate leakage shall not be considered sufficient to fulfill the requirement of this subsection for the adoption of a greenhouse gas emissions portfolio standard or any other regulatory mechanism to mitigate leakage.

d. Notwithstanding any provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) to the contrary, the board shall initiate a proceeding and shall adopt, after notice, provision of the opportunity for comment, and public hearing, renewable energy portfolio standards that shall require:

(1) that two and one-half percent of the kilowatt hours sold in this State by each electric power supplier and each basic generation service provider be from Class II renewable energy sources;

(2) beginning on January 1, 2020, that 21 percent of the kilowatt hours sold in this State by each electric power supplier and each basic generation service provider be from Class I renewable energy sources. The board shall increase the required percentage for Class I renewable energy sources so that by January 1, 2025, 35 percent of the kilowatt hours sold in this State by each electric power supplier and each basic generation service provider shall be from Class I renewable energy sources, and by January 1, 2030, 50 percent of the kilowatt hours sold in this State by each electric power supplier and each basic generation service provider shall be from Class I renewable energy sources. Notwithstanding the requirements of this subsection, the board shall ensure that the cost to customers of the Class I renewable energy requirement imposed pursuant to this subsection shall not exceed nine percent of the total paid for electricity by all customers in the State for energy year 2019, energy year 2020, and energy year 2021, respectively, and shall not exceed seven percent of the total paid for electricity by all customers in the State in any energy year thereafter; provided that, if in energy years 2019 through 2021 the cost to customers of the Class I renewable energy requirement is less than nine percent of the total paid for electricity by all customers in the State, the board may increase the cost to customers of the Class I renewable energy requirement in energy years 2022 through 2024 to a rate greater than seven percent, as long as the total costs to customers for energy years 2019 through 2024 does not exceed the sum of nine percent of the total paid for electricity by all customers in the State in energy years 2019 through 2021 and seven percent of the total paid for electricity by all customers in the State in energy years 2022 through 2024. In calculating the cost to customers of the Class I renewable energy requirement imposed pursuant to this subsection, the board shall not include the costs of the offshore wind energy certificate program established pursuant to paragraph (4) of this subsection. In calculating the cost to customers of the Class I renewable energy requirement, the board shall reflect any energy and environmental savings attributable to the Class I program in its calculation, which shall include, but not be limited to, the social cost of carbon dioxide emissions at a value no less than the most recently published three percent discount rate scenario of the United States Government Interagency Working Group on Social Cost of Greenhouse Gases. The board shall take any steps necessary to prevent the exceedance of the cap on the cost to customers including, but not limited to, adjusting the Class I renewable energy requirement.

(3) that the board establish a multi-year schedule, applicable to each electric power supplier or basic generation service provider in this State, beginning with the one-year period commencing on June 1, 2010, and continuing for each subsequent one-year period up to and including, the one-year period commencing on June 1, 2033, that requires the following number or percentage, as the case may be, of kilowatt-hours sold in this State by each electric power supplier and each basic generation service provider to be from solar electric power generators connected to the distribution system or transmission system in this State:

EY 2011 306 Gigawatthours (Gwhrs)

EY 2012 442 Gwhrs

EY 2013 596 Gwhrs

EY 2014 2.050%

EY 2015 2.450%

EY 2016 2.750%

EY 2017 3.000%

EY 2018 3.200%

EY 2019 4.300%

EY 2020 4.900%

EY 2021 5.100%

EY 2022 5.100%

EY 2023 5.100%

EY 2024 4.900%

EY 2025 4.800%

EY 2026 4.500%

EY 2027 4.350%

EY 2028 3.740%

EY 2029 3.070%

EY 2030 2.210%

EY 2031 1.580%

EY 2032 1.400%

EY 2033 1.100%

No later than 180 days after the date of enactment of P.L.2018, c.17 (C.48:3-87.8 et al.), the board shall adopt rules and regulations to close the SREC program to new applications upon the attainment of 5.1 percent of the kilowatt-hours sold in the State by each electric power supplier and each basic generation provider from solar electric power generators connected to the distribution system. The board shall continue to consider any application filed before the date of enactment of P.L.2018, c.17 (C.48:3-87.8 et al.). The board shall provide for an orderly and transparent mechanism that will result in the closing of the existing SREC program on a date certain but no later than June 1, 2021.

No later than 24 months after the date of enactment of P.L.2018, c.17 (C.48:3-87.8 et al.), the board shall complete a study that evaluates how to modify or replace the SREC program to encourage the continued efficient and orderly development of solar renewable energy generating sources throughout the State. The board shall submit the written report thereon to the Governor and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), to the Legislature. The board shall consult with public utilities, industry experts, regional grid operators, solar power providers and financiers, and other State agencies to determine whether the board can modify the SREC program such that the program will:

- continually reduce, where feasible, the cost of achieving the solar energy goals set forth in this subsection;

- provide an orderly transition from the SREC program to a new or modified program;

- develop megawatt targets for grid connected and distribution systems, including residential and small commercial rooftop systems, community solar systems, and large scale behind the meter systems, as a share of the overall solar energy requirement, which targets the board may modify periodically based on the cost, feasibility, or social impacts of different types of projects;

- establish and update market-based maximum incentive payment caps periodically for each of the above categories of solar electric power generation facilities;

- encourage and facilitate market-based cost recovery through long-term contracts and energy market sales; and

- where cost recovery is needed for any portion of an efficient solar electric power generation facility when costs are not recoverable through wholesale market sales and direct payments from customers, utilize competitive processes such as competitive procurement and long-term contracts where possible to ensure such recovery, without exceeding the maximum incentive payment cap for that category of facility.

The board shall approve, conditionally approve, or disapprove any application for designation as connected to the distribution system of a solar electric power generation facility filed with the board after the date of enactment of P.L.2018, c.17 (C.48:3-87.8 et al.), no more than 90 days after receipt by the board of a completed application. For any such application for a project greater than 25 kilowatts, the board shall require the applicant to post a notice escrow with the board in an amount of $40 per kilowatt of DC nameplate capacity of the facility, not to exceed $40,000. The notice escrow amount shall be reimbursed to the applicant in full upon either denial of the application by the board or upon commencement of commercial operation of the solar electric power generation facility. The escrow amount shall be forfeited to the State if the facility is designated as connected to the distribution system pursuant to this subsection but does not commence commercial operation within two years following the date of the designation by the board.

For all applications for designation as connected to the distribution system of a solar electric power generation facility filed with the board after the date of enactment of P.L.2018, c.17 (C.48:3-87.8 et al.), the SREC term shall be 10 years.

(a) The board shall determine an appropriate period of no less than 120 days following the end of an energy year prior to which a provider or supplier must demonstrate compliance for that energy year with the annual renewable portfolio standard;

(b) No more than 24 months following the date of enactment of P.L.2012, c.24, the board shall complete a proceeding to investigate approaches to mitigate solar development volatility and prepare and submit, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), a report to the Legislature, detailing its findings and recommendations. As part of the proceeding, the board shall evaluate other techniques used nationally and internationally;

(c) The solar renewable portfolio standards requirements in this paragraph shall exempt those existing supply contracts which are effective prior to the date of enactment of P.L.2018, c.17 (C.48:3-87.8 et al.) from any increase beyond the number of SRECs mandated by the solar renewable energy portfolio standards requirements that were in effect on the date that the providers executed their existing supply contracts. This limited exemption for providers' existing supply contracts shall not be construed to lower the Statewide solar sourcing requirements set forth in this paragraph. Such incremental requirements that would have otherwise been imposed on exempt providers shall be distributed over the providers not subject to the existing supply contract exemption until such time as existing supply contracts expire and all providers are subject to the new requirement in a manner that is competitively neutral among all providers and suppliers. Notwithstanding any rule or regulation to the contrary, the board shall recognize these new solar purchase obligations as a change required by operation of law and implement the provisions of this subsection in a manner so as to prevent any subsidies between suppliers and providers and to promote competition in the electricity supply industry.

An electric power supplier or basic generation service provider may satisfy the requirements of this subsection by participating in a renewable energy trading program approved by the board in consultation with the Department of Environmental Protection, or compliance with the requirements of this subsection may be demonstrated to the board by suppliers or providers through the purchase of SRECs.

The renewable energy portfolio standards adopted by the board pursuant to paragraphs (1) and (2) of this subsection shall be effective as regulations immediately upon filing with the Office of Administrative Law and shall be effective for a period not to exceed 18 months, and may, thereafter, be amended, adopted or readopted by the board in accordance with the provisions of the "Administrative Procedure Act."

The renewable energy portfolio standards adopted by the board pursuant to this paragraph shall be effective as regulations immediately upon filing with the Office of Administrative Law and shall be effective for a period not to exceed 30 months after such filing, and shall, thereafter, be amended, adopted or readopted by the board in accordance with the "Administrative Procedure Act"; and

(4) within 180 days after the date of enactment of P.L.2010, c.57 (C.48:3-87.1 et al.), that the board establish an offshore wind renewable energy certificate program to require that a percentage of the kilowatt hours sold in this State by each electric power supplier and each basic generation service provider be from offshore wind energy in order to support at least 3,500 megawatts of generation from qualified offshore wind projects.

The percentage established by the board pursuant to this paragraph shall serve as an offset to the renewable energy portfolio standard established pursuant to paragraph (2) of this subsection and shall reduce the corresponding Class I renewable energy requirement.

The percentage established by the board pursuant to this paragraph shall reflect the projected OREC production of each qualified offshore wind project, approved by the board pursuant to section 3 of P.L.2010, c.57 (C.48:3-87.1), for 20 years from the commercial operation start date of the qualified offshore wind project which production projection and OREC purchase requirement, once approved by the board, shall not be subject to reduction.

An electric power supplier or basic generation service provider shall comply with the OREC program established pursuant to this paragraph through the purchase of offshore wind renewable energy certificates at a price and for the time period required by the board. In the event there are insufficient offshore wind renewable energy certificates available, the electric power supplier or basic generation service provider shall pay an offshore wind alternative compliance payment established by the board. Any offshore wind alternative compliance payments collected shall be refunded directly to the ratepayers by the electric public utilities.

The rules established by the board pursuant to this paragraph shall be effective as regulations immediately upon filing with the Office of Administrative Law and shall be effective for a period not to exceed 18 months, and may, thereafter, be amended, adopted or readopted by the board in accordance with the provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.).

e. Notwithstanding any provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) to the contrary, the board shall initiate a proceeding and shall adopt, after notice, provision of the opportunity for comment, and public hearing:

(1) net metering standards for electric power suppliers and basic generation service providers. The standards shall require electric power suppliers and basic generation service providers to offer net metering at non-discriminatory rates to industrial, large commercial, residential and small commercial customers, as those customers are classified or defined by the board, that generate electricity, on the customer's side of the meter, using a Class I renewable energy source, for the net amount of electricity supplied by the electric power supplier or basic generation service provider over an annualized period. Systems of any sized capacity, as measured in watts, are eligible for net metering. If the amount of electricity generated by the customer-generator, plus any kilowatt hour credits held over from the previous billing periods, exceeds the electricity supplied by the electric power supplier or basic generation service provider, then the electric power supplier or basic generation service provider, as the case may be, shall credit the customer-generator for the excess kilowatt hours until the end of the annualized period at which point the customer-generator will be compensated for any remaining credits or, if the customer-generator chooses, credit the customer-generator on a real-time basis, at the electric power supplier's or basic generation service provider's avoided cost of wholesale power or the PJM electric power pool's real-time locational marginal pricing rate, adjusted for losses, for the respective zone in the PJM electric power pool. Alternatively, the customer-generator may execute a bilateral agreement with an electric power supplier or basic generation service provider for the sale and purchase of the customer-generator's excess generation. The customer-generator may be credited on a real-time basis, so long as the customer-generator follows applicable rules prescribed by the PJM electric power pool for its capacity requirements for the net amount of electricity supplied by the electric power supplier or basic generation service provider. The board may authorize an electric power supplier or basic generation service provider to cease offering net metering to customers that are not already net metered whenever the total rated generating capacity owned and operated by net metering customer-generators Statewide equals 5.8 percent of the total annual kilowatt-hours sold in this State by each electric power supplier and each basic generation service provider during the prior one-year period;

(2) safety and power quality interconnection standards for Class I renewable energy source systems used by a customer-generator that shall be eligible for net metering.

Such standards or rules shall take into consideration the goals of the New Jersey Energy Master Plan, applicable industry standards, and the standards of other states and the Institute of Electrical and Electronics Engineers. The board shall allow electric public utilities to recover the costs of any new net meters, upgraded net meters, system reinforcements or upgrades, and interconnection costs through either their regulated rates or from the net metering customer-generator;

(3) credit or other incentive rules for generators using Class I renewable energy generation systems that connect to New Jersey's electric public utilities' distribution system but who do not net meter; and

(4) net metering aggregation standards to require electric public utilities to provide net metering aggregation to single electric public utility customers that operate a solar electric power generation system installed at one of the customer's facilities or on property owned by the customer, provided that any such customer is a State entity, school district, county, county agency, county authority, municipality, municipal agency, or municipal authority. The standards shall provide that, in order to qualify for net metering aggregation, the customer must operate a solar electric power generation system using a net metering billing account, which system is located on property owned by the customer, provided that: (a) the property is not land that has been actively devoted to agricultural or horticultural use and that is valued, assessed, and taxed pursuant to the "Farmland Assessment Act of 1964," P.L.1964, c.48 (C.54:4-23.1 et seq.) at any time within the 10-year period prior to the effective date of P.L.2012, c.24, provided, however, that the municipal planning board of a municipality in which a solar electric power generation system is located may waive the requirement of this subparagraph (a), (b) the system is not an on-site generation facility, (c) all of the facilities of the single customer combined for the purpose of net metering aggregation are facilities owned or operated by the single customer and are located within its territorial jurisdiction except that all of the facilities of a State entity engaged in net metering aggregation shall be located within five miles of one another, and (d) all of those facilities are within the service territory of a single electric public utility and are all served by the same basic generation service provider or by the same electric power supplier. The standards shall provide that, in order to qualify for net metering aggregation, the customer's solar electric power generation system shall be sized so that its annual generation does not exceed the combined metered annual energy usage of the qualified customer facilities, and the qualified customer facilities shall all be in the same customer rate class under the applicable electric public utility tariff. For the customer's facility or property on which the solar electric generation system is installed, the electricity generated from the customer's solar electric generation system shall be accounted for pursuant to the provisions of paragraph (1) of this subsection to provide that the electricity generated in excess of the electricity supplied by the electric power supplier or the basic generation service provider, as the case may be, for the customer's facility on which the solar electric generation system is installed, over the annualized period, is credited at the electric power supplier's or the basic generation service provider's avoided cost of wholesale power or the PJM electric power pool real-time locational marginal pricing rate. All electricity used by the customer's qualified facilities, with the exception of the facility or property on which the solar electric power generation system is installed, shall be billed at the full retail rate pursuant to the electric public utility tariff applicable to the customer class of the customer using the electricity. A customer may contract with a third party to operate a solar electric power generation system, for the purpose of net metering aggregation. Any contractual relationship entered into for operation of a solar electric power generation system related to net metering aggregation shall include contractual protections that provide for adequate performance and provision for construction and operation for the term of the contract, including any appropriate bonding or escrow requirements. Any incremental cost to an electric public utility for net metering aggregation shall be fully and timely recovered in a manner to be determined by the board. The board shall adopt net metering aggregation standards within 270 days after the effective date of P.L.2012, c.24.

Such rules shall require the board or its designee to issue a credit or other incentive to those generators that do not use a net meter but otherwise generate electricity derived from a Class I renewable energy source and to issue an enhanced credit or other incentive, including, but not limited to, a solar renewable energy credit, to those generators that generate electricity derived from solar technologies.

Such standards or rules shall be effective as regulations immediately upon filing with the Office of Administrative Law and shall be effective for a period not to exceed 18 months, and may, thereafter, be amended, adopted or readopted by the board in accordance with the provisions of the "Administrative Procedure Act."

f. The board may assess, by written order and after notice and opportunity for comment, a separate fee to cover the cost of implementing and overseeing an emission disclosure system or emission portfolio standard, which fee shall be assessed based on an electric power supplier's or basic generation service provider's share of the retail electricity supply market. The board shall not impose a fee for the cost of implementing and overseeing a greenhouse gas emissions portfolio standard adopted pursuant to paragraph (2) of subsection c. of this section.

g. The board shall adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), an electric energy efficiency program in order to ensure investment in cost-effective energy efficiency measures, ensure universal access to energy efficiency measures, and serve the needs of low-income communities that shall require each electric public utility to implement energy efficiency measures that reduce electricity usage in the State pursuant to section 3 of P.L.2018, c.17 (C.48:3-87.9). Nothing in this subsection shall be construed to prevent an electric public utility from meeting the requirements of this subsection by contracting with another entity for the performance of the requirements.

h. The board shall adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), a gas energy efficiency program in order to ensure investment in cost-effective energy efficiency measures, ensure universal access to energy efficiency measures, and serve the needs of low-income communities that shall require each gas public utility to implement energy efficiency measures that reduce natural gas usage in the State pursuant to section 3 of P.L.2018, c.17 (C.48:3-87.9). Nothing in this subsection shall be construed to prevent a gas public utility from meeting the requirements of this subsection by contracting with another entity for the performance of the requirements.

i. After the board establishes a schedule of solar kilowatt-hour sale or purchase requirements pursuant to paragraph (3) of subsection d. of this section, the board may initiate subsequent proceedings and adopt, after appropriate notice and opportunity for public comment and public hearing, increased minimum solar kilowatt-hour sale or purchase requirements, provided that the board shall not reduce previously established minimum solar kilowatt-hour sale or purchase requirements, or otherwise impose constraints that reduce the requirements by any means.

j. The board shall determine an appropriate level of solar alternative compliance payment, and permit each supplier or provider to submit an SACP to comply with the solar electric generation requirements of paragraph (3) of subsection d. of this section. The value of the SACP for each Energy Year, for Energy Years 2014 through 2033 per megawatt hour from solar electric generation required pursuant to this section, shall be:

EY 2014 $339

EY 2015 $331

EY 2016 $323

EY 2017 $315

EY 2018 $308

EY 2019 $268

EY 2020 $258

EY 2021 $248

EY 2022 $238

EY 2023 $228

EY 2024 $218

EY 2025 $208

EY 2026 $198

EY 2027 $188

EY 2028 $178

EY 2029 $168

EY 2030 $158

EY 2031 $148

EY 2032 $138

EY 2033 $128.

The board may initiate subsequent proceedings and adopt, after appropriate notice and opportunity for public comment and public hearing, an increase in solar alternative compliance payments, provided that the board shall not reduce previously established levels of solar alternative compliance payments, nor shall the board provide relief from the obligation of payment of the SACP by the electric power suppliers or basic generation service providers in any form. Any SACP payments collected shall be refunded directly to the ratepayers by the electric public utilities.

k. The board may allow electric public utilities to offer long-term contracts through a competitive process, direct electric public utility investment and other means of financing, including but not limited to loans, for the purchase of SRECs and the resale of SRECs to suppliers or providers or others, provided that after such contracts have been approved by the board, the board's approvals shall not be modified by subsequent board orders. If the board allows the offering of contracts pursuant to this subsection, the board may establish a process, after hearing, and opportunity for public comment, to provide that a designated segment of the contracts approved pursuant to this subsection shall be contracts involving solar electric power generation facility projects with a capacity of up to 250 kilowatts.

l. The board shall implement its responsibilities under the provisions of this section in such a manner as to:

(1) place greater reliance on competitive markets, with the explicit goal of encouraging and ensuring the emergence of new entrants that can foster innovations and price competition;

(2) maintain adequate regulatory authority over non-competitive public utility services;

(3) consider alternative forms of regulation in order to address changes in the technology and structure of electric public utilities;

(4) promote energy efficiency and Class I renewable energy market development, taking into consideration environmental benefits and market barriers;

(5) make energy services more affordable for low and moderate income customers;

(6) attempt to transform the renewable energy market into one that can move forward without subsidies from the State or public utilities;

(7) achieve the goals put forth under the renewable energy portfolio standards;

(8) promote the lowest cost to ratepayers; and

(9) allow all market segments to participate.

m. The board shall ensure the availability of financial incentives under its jurisdiction, including, but not limited to, long-term contracts, loans, SRECs, or other financial support, to ensure market diversity, competition, and appropriate coverage across all ratepayer segments, including, but not limited to, residential, commercial, industrial, non-profit, farms, schools, and public entity customers.

n. For projects which are owned, or directly invested in, by a public utility pursuant to section 13 of P.L.2007, c.340 (C.48:3-98.1), the board shall determine the number of SRECs with which such projects shall be credited; and in determining such number the board shall ensure that the market for SRECs does not detrimentally affect the development of non-utility solar projects and shall consider how its determination may impact the ratepayers.

o. The board, in consultation with the Department of Environmental Protection, electric public utilities, the Division of Rate Counsel [in, but not of, the Department of the Treasury] in the Department of the Public Advocate, affected members of the solar energy industry, and relevant stakeholders, shall periodically consider increasing the renewable energy portfolio standards beyond the minimum amounts set forth in subsection d. of this section, taking into account the cost impacts and public benefits of such increases including, but not limited to:

(1) reductions in air pollution, water pollution, land disturbance, and greenhouse gas emissions;

(2) reductions in peak demand for electricity and natural gas, and the overall impact on the costs to customers of electricity and natural gas;

(3) increases in renewable energy development, manufacturing, investment, and job creation opportunities in this State; and

(4) reductions in State and national dependence on the use of fossil fuels.

p. Class I RECs and ORECs shall be eligible for use in renewable energy portfolio standards compliance in the energy year in which they are generated, and for the following two energy years. SRECs shall be eligible for use in renewable energy portfolio standards compliance in the energy year in which they are generated, and for the following four energy years.

q. (1) During the energy years of 2014, 2015, and 2016, a solar electric power generation facility project that is not: (a) net metered; (b) an on-site generation facility; (c) qualified for net metering aggregation; or (d) certified as being located on a brownfield, on an area of historic fill or on a properly closed sanitary landfill facility, as provided pursuant to subsection t. of this section may file an application with the board for approval of a designation pursuant to this subsection that the facility is connected to the distribution system. An application filed pursuant to this subsection shall include a notice escrow of $40,000 per megawatt of the proposed capacity of the facility. The board shall approve the designation if: the facility has filed a notice in writing with the board applying for designation pursuant to this subsection, together with the notice escrow; and the capacity of the facility, when added to the capacity of other facilities that have been previously approved for designation prior to the facility's filing under this subsection, does not exceed 80 megawatts in the aggregate for each year. The capacity of any one solar electric power supply project approved pursuant to this subsection shall not exceed 10 megawatts. No more than 90 days after its receipt of a completed application for designation pursuant to this subsection, the board shall approve, conditionally approve, or disapprove the application. The notice escrow shall be reimbursed to the facility in full upon either rejection by the board or the facility entering commercial operation, or shall be forfeited to the State if the facility is designated pursuant to this subsection but does not enter commercial operation pursuant to paragraph (2) of this subsection.

(2) If the proposed solar electric power generation facility does not commence commercial operations within two years following the date of the designation by the board pursuant to this subsection, the designation of the facility shall be deemed to be null and void, and the facility shall not be considered connected to the distribution system thereafter.

(3) Notwithstanding the provisions of paragraph (2) of this subsection, a solar electric power generation facility project that as of May 31, 2017 was designated as "connected to the distribution system," but failed to commence commercial operations as of that date, shall maintain that designation if it commences commercial operations by May 31, 2018.

r. (1) For all proposed solar electric power generation facility projects except for those solar electric power generation facility projects approved pursuant to subsection q. of this section, and for all projects proposed in energy year 2019 and energy year 2020, the board may approve projects for up to 50 megawatts annually in auctioned capacity in two auctions per year as long as the board is accepting applications. If the board approves projects for less than 50 megawatts in energy year 2019 or less than 50 megawatts in energy year 2020, the difference in each year shall be carried over into the successive energy year until 100 megawatts of auctioned capacity has been approved by the board pursuant to this subsection. A proposed solar electric power generation facility that is neither net metered nor an on-site generation facility, may be considered "connected to the distribution system" only upon designation as such by the board, after notice to the public and opportunity for public comment or hearing. A proposed solar electric power generation facility seeking board designation as "connected to the distribution system" shall submit an application to the board that includes for the proposed facility: the nameplate capacity; the estimated energy and number of SRECs to be produced and sold per year; the estimated annual rate impact on ratepayers; the estimated capacity of the generator as defined by PJM for sale in the PJM capacity market; the point of interconnection; the total project acreage and location; the current land use designation of the property; the type of solar technology to be used; and such other information as the board shall require.

(2) The board shall approve the designation of the proposed solar electric power generation facility as "connected to the distribution system" if the board determines that:

(a) the SRECs forecasted to be produced by the facility do not have a detrimental impact on the SREC market or on the appropriate development of solar power in the State;

(b) the approval of the designation of the proposed facility would not significantly impact the preservation of open space in this State;

(d) there will be no impingement on the ability of an electric public utility to maintain its property and equipment in such a condition as to enable it to provide safe, adequate, and proper service to each of its customers.

(3) The board shall act within 90 days of its receipt of a completed application for designation of a solar electric power generation facility as "connected to the distribution system," to either approve, conditionally approve, or disapprove the application. If the proposed solar electric power generation facility does not commence commercial operations within two years following the date of the designation by the board pursuant to this subsection, the designation of the facility as "connected to the distribution system" shall be deemed to be null and void, and the facility shall thereafter be considered not "connected to the distribution system."

s. In addition to any other requirements of P.L.1999, c.23 or any other law, rule, regulation or order, a solar electric power generation facility that is not net metered or an on-site generation facility and which is located on land that has been actively devoted to agricultural or horticultural use that is valued, assessed, and taxed pursuant to the "Farmland Assessment Act of 1964," P.L.1964, c.48 (C.54:4-23.1 et seq.) at any time within the 10-year period prior to the effective date of P.L.2012, c.24, shall only be considered "connected to the distribution system" if (1) the board approves the facility's designation pursuant to subsection q. of this section; or (2) (a) PJM issued a System Impact Study for the facility on or before June 30, 2011, (b) the facility files a notice with the board within 60 days of the effective date of P.L.2012, c.24, indicating its intent to qualify under this subsection, and (c) the facility has been approved as "connected to the distribution system" by the board. Nothing in this subsection shall limit the board's authority concerning the review and oversight of facilities, unless such facilities are exempt from such review as a result of having been approved pursuant to subsection q. of this section.

t. (1) No more than 180 days after the date of enactment of P.L.2012, c.24, the board shall, in consultation with the Department of Environmental Protection and the New Jersey Economic Development Authority, and, after notice and opportunity for public comment and public hearing, complete a proceeding to establish a program to provide SRECs to owners of solar electric power generation facility projects certified by the board, in consultation with the Department of Environmental Protection, as being located on a brownfield, on an area of historic fill or on a properly closed sanitary landfill facility, including those owned or operated by an electric public utility and approved pursuant to section 13 of P.L.2007, c.340 (C.48:3-98.1). Projects certified under this subsection shall be considered "connected to the distribution system", shall not require such designation by the board, and shall not be subject to board review required pursuant to subsections q. and r. of this section. Notwithstanding the provisions of section 3 of P.L.1999, c.23 (C.48:3-51) or any other law, rule, regulation, or order to the contrary, for projects certified under this subsection, the board shall establish a financial incentive that is designed to supplement the SRECs generated by the facility in order to cover the additional cost of constructing and operating a solar electric power generation facility on a brownfield, on an area of historic fill or on a properly closed sanitary landfill facility. Any financial benefit realized in relation to a project owned or operated by an electric public utility and approved by the board pursuant to section 13 of P.L.2007, c.340 (C.48:3-98.1), as a result of the provision of a financial incentive established by the board pursuant to this subsection, shall be credited to ratepayers. The issuance of SRECs for all solar electric power generation facility projects pursuant to this subsection shall be deemed "Board of Public Utilities financial assistance" as provided under section 1 of P.L.2009, c.89 (C.48:2-29.47).

(2) Notwithstanding the provisions of the "Spill Compensation and Control Act," P.L.1976, c.141 (C.58:10-23.11 et seq.) or any other law, rule, regulation, or order to the contrary, the board, in consultation with the Department of Environmental Protection, may find that a person who operates a solar electric power generation facility project that has commenced operation on or after the effective date of P.L.2012, c.24, which project is certified by the board, in consultation with the Department of Environmental Protection pursuant to paragraph (1) of this subsection, as being located on a brownfield for which a final remediation document has been issued, on an area of historic fill or on a properly closed sanitary landfill facility, which projects shall include, but not be limited to projects located on a brownfield for which a final remediation document has been issued, on an area of historic fill or on a properly closed sanitary landfill facility owned or operated by an electric public utility and approved pursuant to section 13 of P.L.2007, c.340 (C.48:3-98.1), or a person who owns property acquired on or after the effective date of P.L.2012, c.24 on which such a solar electric power generation facility project is constructed and operated, shall not be liable for cleanup and removal costs to the Department of Environmental Protection or to any other person for the discharge of a hazardous substance provided that:

(a) the person acquired or leased the real property after the discharge of that hazardous substance at the real property;

(b) the person did not discharge the hazardous substance, is not in any way responsible for the hazardous substance, and is not a successor to the discharger or to any person in any way responsible for the hazardous substance or to anyone liable for cleanup and removal costs pursuant to section 8 of P.L.1976, c.141 (C.58:10-23.11g);

(c) the person, within 30 days after acquisition of the property, gave notice of the discharge to the Department of Environmental Protection in a manner the Department of Environmental Protection prescribes;

(d) the person does not disrupt or change, without prior written permission from the Department of Environmental Protection, any engineering or institutional control that is part of a remedial action for the contaminated site or any landfill closure or post-closure requirement;

(e) the person does not exacerbate the contamination at the property;

(f) the person does not interfere with any necessary remediation of the property;

(g) the person complies with any regulations and any permit the Department of Environmental Protection issues pursuant to section 19 of P.L.2009, c.60 (C.58:10C-19) or paragraph (2) of subsection a. of section 6 of P.L.1970, c.39 (C.13:1E-6);

(h) with respect to an area of historic fill, the person has demonstrated pursuant to a preliminary assessment and site investigation, that hazardous substances have not been discharged; and

(i) with respect to a properly closed sanitary landfill facility, no person who owns or controls the facility receives, has received, or will receive, with respect to such facility, any funds from any post-closure escrow account established pursuant to section 10 of P.L.1981, c.306 (C.13:1E-109) for the closure and monitoring of the facility.

Only the person who is liable to clean up and remove the contamination pursuant to section 8 of P.L.1976, c.141 (C.58:10-23.11g) and who does not have a defense to liability pursuant to subsection d. of that section shall be liable for cleanup and removal costs.

u. No more than 180 days after the date of enactment of P.L.2012, c.24, the board shall complete a proceeding to establish a registration program. The registration program shall require the owners of solar electric power generation facility projects connected to the distribution system to make periodic milestone filings with the board in a manner and at such times as determined by the board to provide full disclosure and transparency regarding the overall level of development and construction activity of those projects Statewide.

v. The issuance of SRECs for all solar electric power generation facility projects pursuant to this section, for projects connected to the distribution system with a capacity of one megawatt or greater, shall be deemed "Board of Public Utilities financial assistance" as provided pursuant to section 1 of P.L.2009, c.89 (C.48:2-29.47).

w. No more than 270 days after the date of enactment of P.L.2012, c.24, the board shall, after notice and opportunity for public comment and public hearing, complete a proceeding to consider whether to establish a program to provide, to owners of solar electric power generation facility projects certified by the board as being three megawatts or greater in capacity and being net metered, including facilities which are owned or operated by an electric public utility and approved by the board pursuant to section 13 of P.L.2007, c.340 (C.48:3-98.1), a financial incentive that is designed to supplement the SRECs generated by the facility to further the goal of improving the economic competitiveness of commercial and industrial customers taking power from such projects. If the board determines to establish such a program pursuant to this subsection, the board may establish a financial incentive to provide that the board shall issue one SREC for no less than every 750 kilowatt-hours of solar energy generated by the certified projects. Any financial benefit realized in relation to a project owned or operated by an electric public utility and approved by the board pursuant to section 13 of P.L.2007, c.340 (C.48:3-98.1), as a result of the provisions of a financial incentive established by the board pursuant to this subsection, shall be credited to ratepayers.

x. Solar electric power generation facility projects that are located on an existing or proposed commercial, retail, industrial, municipal, professional, recreational, transit, commuter, entertainment complex, multi-use, or mixed-use parking lot with a capacity to park 350 or more vehicles where the area to be utilized for the facility is paved, or an impervious surface may be owned or operated by an electric public utility and may be approved by the board pursuant to section 13 of P.L.2007, c.340 (C.48:3-98.1).

(cf: P.L.2021, c.169, s.10)

22. Section 45 of P.L.1999, c.23 (C.48:3-94) is amended to read as follows:

45. a. (1) A government aggregator that is a municipality or a county may operate a government energy aggregation program that provides for the aggregation of residential electric generation service or gas supply service, non-residential electric generation service or gas supply service on a voluntary basis, and appliance repair services for residential and non- residential customers on a voluntary basis, either separately or bundled, in accordance with the provisions of this section.

(2) Electric generation service or gas supply service for residential customers within the municipality or county and for non-residential customers on a voluntary basis, and for appliance repair services for residential and non-residential customers on a voluntary basis, may be aggregated together with electric generation service, electric related service, gas supply service or gas related service, either separately or bundled, for the government aggregator's own facilities or with other government aggregators, provided that each governing body adopts an ordinance in the case of a municipality, or resolution in the case of a county, after notice and public hearing, indicating its intent to solicit bids for the provision of electric generation service or gas supply service, either separately or bundled, and for appliance repair services on a voluntary basis at a separate price and by separate bid solicitation, as the case may be, which approval shall require passage by a majority vote of the full membership of the governing body.

(3) If an ordinance or resolution adopted pursuant to paragraph (2) of this subsection would include non-residential customers in a government energy aggregation program on a voluntary basis, the adoption of the ordinance or resolution shall be accompanied by a public notice that non-residential customers will be included in the government energy aggregation program if they contact the appropriate governing body within 30 days of the adoption of the ordinance or resolution stating their affirmative choice to be included in the government energy aggregation program.

(4) (a) If an ordinance or resolution adopted pursuant to paragraph (2) of this subsection would include appliance repair services for residential or non-residential customers on a voluntary basis at a separate price and by separate bid solicitation, the adoption of the ordinance or resolution shall be accompanied by a public notice that residential or non-residential customers may receive appliance repair services if they contact the appropriate governing body within 30 days of the adoption of the ordinance or resolution stating their affirmative choice to receive appliance repair services under the government energy aggregation program.

(b) The Board of Public Utilities shall adopt, pursuant to the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations determining the manner in which electric related services and gas related services, other than appliance repair services, shall be included in government energy aggregation programs.

(5) A government energy aggregation program shall be structured to provide that each residential or non residential customer, as the case may be, shall receive electric generation service or gas supply service from one licensed electric power supplier or one licensed gas supplier, as the case may be.

(6) Any residential or non-residential customer receiving electric generation service or gas supply service from a licensed electric power supplier or a licensed gas supplier prior to the establishment of a government energy aggregation program pursuant to this section shall be exempt from a government energy aggregation program established pursuant to this section. Under no circumstance shall a residential or non-residential customer's affirmative choice to be included in a government energy aggregation program abrogate the existing terms of an electric power or gas supply contract between a non-residential customer and a licensed electric power supplier or licensed gas supplier.

b. (1) The governing body shall commence public bidding pursuant to the provisions of the “Local Public Contracts Law,” P.L.1971, c.198 (C.40A:11-1 et seq.) to receive bids from a licensed electric power supplier or licensed gas supplier, as appropriate, for electric generation service or gas supply service at one or more projected load levels, either separately or bundled, for customers within the municipality or county, and if appropriate, for any appliance repair services at a separate price and by separate bid solicitation, and for electric generation service, electric related service, gas supply service or gas related service, either separately or bundled, for the government aggregator's own facilities. Thirty days prior to the commencement of public bidding the governing body shall transmit the bid notice and all bidding documents to the board and the Division of [the Ratepayer Advocate] Rate Counsel in the Department of the Public Advocate for review. The board and the Division of [the Ratepayer Advocate] Rate Counsel shall have 15 days to review the bid notice and bidding documents and provide comments to the governing body, which may accept or reject the comments.

(2) Upon receipt of the bids, the governing body shall evaluate the proposals. The governing body shall select a licensed electric power supplier or licensed gas supplier, or both, based on the most advantageous proposal, price and other factors considered. The governing body shall only select a licensed electric power supplier or licensed gas supplier to be awarded a contract for service where the rate is the same as or lower than the price of basic generation service pursuant to section 9 of P.L.1999, c.23 (C.48:3-57) plus the pro-rata value of the cost of compliance with the renewable energy portfolio standards imposed pursuant to this act derived from a non-utility generation contract with an electric public utility and transferred by the electric public utility to a supplier of basic generation service or basic gas supply service pursuant to section 10 of P.L.1999, c.23 (C.48:3-58), as determined by the board. The governing body may award a contract for electric generation service where the rate is higher than the price of basic generation service as determined by the board pursuant to section 9 of P.L.1999, c.23 plus the pro-rata value of the cost of compliance with the renewable energy portfolio standards imposed pursuant to this act derived from a non-utility generation contract with an electric public utility and transferred by the electric public utility to a supplier of basic generation service, provided that the award is for electricity the percentage of which that is derived from verifiable Class I or Class II renewable energy as defined pursuant to section 3 of P.L.1999, c.23 (C.48:3-51) is greater than the percentage of Class I and Class II renewable energy required pursuant to subsection d. of section 38 of P.L.1999, c.23 (C.48:3-87), and that the customers are informed, in a manner determined by the board secretary, that such a higher rate is under consideration by the governing body.

c. Upon selection of a licensed electric power supplier or licensed gas supplier, or both, pursuant to subsection b. of this section, the governing body shall enter into a written agreement with the selected licensed supplier. The written agreement shall include:

(1) the contract with the selected licensed electric power supplier or licensed gas supplier, or both, for the government aggregator's own load; and

(2) a contract form which shall comply with and include the requirements of subsection a. of section 43 of P.L.1999, c.23 (C.48:3-92).

The governing body shall transmit a copy of the written agreement to the board and the Division of [the Ratepayer Advocate] Rate Counsel in the Department of the Public Advocate, each of which shall have 15 days to review the written agreement and provide comments to the governing body, which may accept or reject the comments.

d. (Deleted by amendment, P.L.2003, c.24).

e. (1) After entering into the agreement pursuant to section c. of this section, the governing body shall provide written individual notice to customers advising them of their individual right to affirmatively decline participation in the government energy aggregation program, and providing 30 days for customers to respond to the governing body of their decision to affirmatively decline participation in the government energy aggregation program and providing them with the price and other factors allowing the customer to compare the government energy aggregation program to other alternatives; and

(2) upon expiration of the 30-day period required pursuant to paragraph (1) of this subsection, the governing body shall determine the number and identity of customers who did not affirmatively decline to participate in the government energy aggregation program.

(3) The governing body shall then authorize the selected licensed electric power supplier or licensed gas supplier, or both, to enroll each customer within the municipality or county who did not initially affirmatively decline to be part of a government energy aggregation program pursuant to the provisions of paragraph (1) of subsection e. of this section.

(4) The Board of Public Utilities shall adopt, pursuant to the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations regarding service for residential and non-residential customers in municipalities and counties in which government energy aggregation programs have been established providing for the notification to new customers of the availability of the established government energy aggregation program and their option to enroll in the program, and establishing a process by which customers that have been enrolled in a government energy aggregation program and that move to a new location where that same government energy aggregation program is available may consent to continue in the program without reverting to basic generation service or basic gas service. The rules and regulations adopted by the board pursuant to this section shall provide for the recovery by an electric public utility or a gas public utility of all reasonable costs incurred by the electric public utility or gas public utility in complying with the regulations adopted pursuant to this section.

f. The licensed electric power supplier or licensed gas supplier, or both, selected pursuant to the provisions of this section shall be subject to the provisions of section 37 of this act.

g. Whenever the process results in a change of provider of energy or of price to program participants, the governing body shall give residential customers notice, as determined by the board, of their right to decline continued participation.

h. A government aggregator that is a county may implement the provisions of this section only as authorized pursuant to the provisions of subsection f. of section 43 of this act.

i. The provisions of this section shall only apply to government energy aggregation programs for residential customers and to non-residential customers on a voluntary basis.

j. Nothing in this section shall preclude a government energy aggregation program from including non-residential customers as participants on a voluntary basis and in a clear and consistent manner.

k. Nothing in this section shall preclude a residential customer who did not affirmatively decline to participate in a government energy aggregation program from switching electric service to another electric power supplier or to basic generation service pursuant to regulations adopted by the board.

(cf: P.L.2003, c.24, s.5)

23. Section 1 of P.L.1974, c.55 (C.52:14-15.107) is amended to read as follows:

1. Notwithstanding the provisions of the annual appropriations act and section 7 of P.L.1974, c.55 (C.52:14-15.110), the annual salary for each of the following officers shall be $210,000 in calendar year 2024 and thereafter:

Title

Agriculture Department

Secretary of Agriculture

Children and Families Department

Commissioner of Children and Families

Community Affairs Department

Commissioner of Community Affairs

Corrections Department

Commissioner of Corrections

Education Department

Commissioner of Education

Environmental Protection Department

Commissioner of Environmental Protection

Health Department

Commissioner of Health

Human Services Department

Commissioner of Human Services

Banking and Insurance Department

Commissioner of Banking and Insurance

Labor and Workforce Development Department

Commissioner of Labor and Workforce Development

Chairperson of the Civil Service Commission

Law and Public Safety Department

Attorney General

Colonel and Superintendent, State Police

Director of the Office of Homeland Security and Preparedness

Military and Veterans' Affairs Department

Adjutant General

State Department

Secretary of State

Secretary of Higher Education

Transportation Department

Commissioner of Transportation

Chief Administrator, New Jersey Motor Vehicle Commission

Treasury Department

State Treasurer

State Comptroller

Chief Technology Officer

Members, Board of Public Utilities

Public Advocate Department

Public Advocate

(cf: P.L.2023, c.349, s.5)

24. Section 12 of P.L.2005, c.155 (C.52:27EE-12) is amended to read as follows:

12. Definitions.

As used in P.L. , c. (C. ) (pending before the Legislature as this bill) and in sections 21 through 23, 26, 27, 31, 32, 33, 34 through 37, 46, 47, 48, 50, 51 through 54, and [64] and 61 through 65 of P.L.2005, c.155 (C.52:27EE-21 through 23, C.52:27EE-26, C.52:27EE-27, C.52:27EE-31, C.52:27EE-32, C.52:27EE-33, C.52:27EE-34 through C.52:27EE-37, C.52:27EE-46, C.52:27EE-47, C.52:27EE-48, C.52:27EE-50, C.52:27EE-51 through C.52:27EE-54 and [C.52:27EE-64)] C.52:27EE-61 through C.52:27EE-65):

“administrative action” means and includes any action, omission, decision, recommendation, practice or procedure of an agency, but does not include the preparation, presentation or introduction of legislation;

“agency” means and includes the State of New Jersey and its principal departments, and any division, bureau, board, commission, agency, office, authority, or institution of the Executive Branch of the State government, or any other agency, including bi-state agencies, or any instrumentality created by the State, including counties, municipalities, or political subdivisions thereof, or any officer, employee, or member thereof acting or purporting to act in the exercise of his official duties, except the Governor and the Governor's personal staff and any portion of the Legislative Branch or Judicial Branch of State government;

“compensatory damages” means damages intended to make good the loss of an injured party, and no more. The term includes general and special damages, and does not include nominal, exemplary, or punitive damages;

“consumer insurance rate increases” means prior approval rate increases for: personal lines property casualty coverages; Medicare supplemental coverages; or a rating system change pursuant to section 14 of P.L.1997, c.151 (C.17:29A-46.1 et seq.);

“correctional facility” means a jail, prison, lockup, penitentiary, reformatory, training school, or other similar facility within the State of New Jersey;

“department” means the Department of the Public Advocate established herein, unless the context clearly indicates otherwise;

“elderly” means a person age 60 years or older;

“facility” whenever referred to in section 64 of P.L.2005, c.155 (C.52:27EE-64) and sections 61 through 63 and section 65 of P.L. , c. (C. ) (pending before the Legislature as this bill), means any facility or institution, whether public or private, offering health or health related services for the institutionalized elderly, and which is subject to regulation, visitation, inspection, or supervision by any government agency. Facilities include, but are not limited to, nursing homes, skilled nursing homes, intermediate care facilities, extended care facilities, convalescent homes, rehabilitation centers, residential health care facilities, special hospitals, veterans' hospitals, chronic disease hospitals, psychiatric hospitals, mental hospitals, developmental centers or facilities, day care facilities for the elderly, and medical day care centers;

“funded entity” means any party to and beneficiary of contracts with the State or its political subdivisions, including any business, corporation, association, partnership, sole proprietorship, firm, trust, organization, unincorporated organization, individual, enterprise, or other legal entity receiving public funds;

“indigent mental hospital admittee” means a person who has been admitted to and is a patient in a mental hospital, an institution for the care and treatment of persons with mental illness, or a similar facility, whether public or private, State, county or local, or who is the subject of an action for admission as provided by P.L.1987, c.116 (C.30:4-27.1 et seq.) and who does not have the financial ability to secure competent representation and to provide all other necessary expenses of representation;

“institutionalized elderly” means any person 60 years of age or older, who is a patient, resident or client of any facility, as described herein;

“nominal damages” means damages that are designed to compensate a plaintiff and are less than $500;

“public employee” means an employee of a public entity, and includes a person participating, under the supervision of the Palisades Interstate Park Commission, in a volunteer program in that part of the Palisades Interstate Park located in New Jersey;

“public entity” means and includes the State, and any county, municipality, district, public authority, public agency, and any other political subdivision or public body in the State;

“public interest” means an interest or right arising from the Constitution, decisions of court, common law or other laws of the United States or of this State inhering in the citizens of this State or in a broad class of such citizens.

“punitive damages” means and includes exemplary damages and means damages awarded against a party in a civil action because of aggravating circumstances in order to penalize and to provide additional deterrence against a defendant to discourage similar conduct in the future. Punitive damages do not include compensatory damages or nominal damages.

(cf: P.L.2010, c.50, s.78)

25. Section 21 of P.L.2005, c.155 (C.52:27EE-21) is amended to read as follows:

21. Division of Citizen Relations; Dispute Settlement Office; established.

There is hereby established in the [Office of the Public Defender] Division of Citizen Relations in the Department of the Public Advocate the Dispute Settlement Office.

(cf: P.L.2010, c.34, s.21)

26. Section 22 of P.L.2005, c.155 (C.52:27EE-22) is amended to read as follows:

22. Dispute Settlement Office; services.

a. The Dispute Settlement Office may provide, in the discretion of the Public [Defender] Advocate, mediation and other third party neutral services in the resolution of disputes which involve the public interest and may enter into agreements or contracts to carry out any of the purposes or functions of this section. The office may assist public or private parties in resolving disputes. The office is authorized to:

(1) facilitate the resolution of disputes through the provision of mediation and other neutral dispute resolution services;

(2) establish standards for the selection, assignment, and conduct of persons acting on behalf of the office in the resolution of disputes;

(3) conduct educational programs and provide other services designed to reduce the occurrence, magnitude, or cost of disputes;

(4) design, develop, or operate dispute resolution programs, or assist in improving or extending existing dispute resolution programs;

(5) work with the business ombudsman or advocate in the Division of Business Assistance, Marketing and Trade in the New Jersey [Commerce and Economic Growth Commission] Economic Development Authority and take such other action as will promote and facilitate dispute resolution in the State; and

(6) coordinate and cooperate with the Office of Administrative Law so as to avoid duplication of effort and to facilitate alternate resolution of disputes that would otherwise require administrative hearings.

b. The Public [Defender] Advocate may establish reasonable fees to be charged to public or private parties for the provision of the educational, consultation, dispute resolution, or other services authorized herein and may apply for and accept on behalf of the State any federal, local, or private grants, bequests, gifts, or contributions to aid in the financing of any of the programs or activities of the office. The Public Defender in the name of the State shall do all that is necessary and proper to receive or to collect all moneys due to the State, including such fees, grants, bequests, gifts, or contributions, by or reimbursement for services rendered pursuant to this section.

(cf: P.L.2010, c.34, s.22)

27. Section 23 of P.L.2005, c.155 (C.52:27EE-23) is amended to read as follows:

23. Dispute Settlement Office; transfer of functions.

All functions, powers and duties which had been vested in the Office of Dispute Settlement in the Division of Citizen Relations in the Department of the Public Advocate prior to the effective date of P.L.2010, c.34 (C.52:27EE-86 et al.) and which were transferred by P.L.2010, c.34 (C.52:27EE-86 et al.) to the Office of the Public Defender, and are now vested in the Office of the Public Defender, are hereby transferred to and assumed by the Dispute Settlement Office of the Division of Citizen Relations in the [Office] Department of the Public [Defender] Advocate.

Whenever in any law, rule, regulation, order, reorganization plan, contract, document, judicial or administrative proceeding or otherwise, reference is made to the Dispute Settlement Office in the Department of the Public [Advocate] Defender, the same shall mean and refer to the Dispute Settlement Office of the Division of Citizen Relations in the Office of the Public [Defender] Advocate.

(cf: P.L.2010, c.34, s.23)

28. Section 26 of P.L.2005, c.155 (C.52:27EE-26) is amended to read as follows:

26. [Office of] Corrections Ombudsperson; transfer of functions.

a. All functions, powers, and duties now vested in the Corrections Ombudsperson [in the Department of the Public Advocate are hereby transferred to and assumed by the Office of the Corrections Ombudsperson] in, but not of, the Department of the Treasury are hereby transferred to and assumed by the Corrections Ombudsperson in the Division of Citizen Relations in the Department of the Public Advocate. [For the purposes of complying with the provisions of Article V, Section IV, paragraph 1 of the New Jersey Constitution, the Office of the Corrections Ombudsperson is hereby allocated to the Department of the Treasury, but, notwithstanding this allocation, the Office of the Ombudsperson shall be independent of any supervision or control by the Department of the Treasury or by any board or officer thereof.]

b. Whenever, in any law, rule, regulation, order, reorganization plan, contract, document, judicial, or administrative proceeding, or otherwise, reference is made to the [Corrections Ombudsperson in the Department of the Public Advocate the same shall mean and refer to the] Office of the Corrections Ombudsperson in, but not of, the Department of the Treasury the same shall mean and refer to the Corrections Ombudsperson in the Division of Citizen Relations in the Department of the Public Advocate.

c. The [office] Corrections Ombudsperson in the Division of Citizen Relations in the Department of the Public Advocate shall be responsible for:

(1) providing information to inmates and their families;

(2) promoting public awareness and understanding of the rights of inmates;

(3) identifying systemic issues and responses upon which the Governor and Legislature may act; and

(4) ensuring compliance with relevant statutes, rules, regulations, and policies concerning corrections facilities, services, and treatment of inmates under the jurisdiction of the department.

d. [The Corrections Ombudsperson shall serve as the head of the Office of the Corrections Ombudsperson.

(1) The corrections ombudsperson shall be appointed by the Governor from qualified persons of recognized judgment, independence, objectivity, and integrity, who are qualified by training or experience in corrections law and policy.

(2)] A person shall be disqualified from [being appointed] serving as [ombudsperson] Corrections Ombudsperson in the Division of Citizen Relations in the Department of the Public Advocate if the person or the person's spouse:

[(a)] (1) is or has been employed by or participates in the management of a business entity or other organization receiving funds from the [department] Department of Corrections within the last five years;

[(b) ] (2) owns or controls, directly or indirectly, any interest in a business entity or other organization receiving funds from the [department] Department of Corrections within the last five years;

[(c)] (3) uses or receives any amount of tangible goods, services, or funds from the [department] Department of Corrections; or

[(d)] (4) is required to register as a lobbyist because of the person's activities for compensation on behalf of a profession related to the operation of the [department or the office] Department of Corrections.

e. [The corrections ombudsperson shall hold the office for a term of five years and continue to hold the office until reappointed or the appointment of a successor. The Governor may remove the ombudsperson only for neglect of duty, misconduct, or the inability to perform duties. Any vacancy shall be filled by similar appointment for the remainder of the unexpired term.] (Deleted by amendment, P.L. , c. ) (pending before the Legislature as this bill)

f. [The corrections ombudsperson shall report directly to the Governor.] (Deleted by amendment, P.L. , c. ) (pending before the Legislature as this bill)

g. [The office shall be adequately funded and staffed with the requisite number of employees with expertise and training necessary to carry out the duties of the office.] (Deleted by amendment, P.L. , c. ) (pending before the Legislature as this bill)

h. [The corrections ombudsperson may employ assistants to perform duties and exercise the same powers as the ombudsperson.] (Deleted by amendment, P.L. , c. ) (pending before the Legislature as this bill)

i. A person may not serve as an [assistant corrections ombudsperson or] employee of the [office] Corrections Ombudsperson in the Division of Citizen Relations in the Department of the Public Advocate if the person or the person's spouse:

(a) is or has been employed by or participates in the management of a business entity or other organization receiving funds from the Department of Corrections within the last five years;

(b) owns or controls, directly or indirectly, any interest in a business entity or other organization receiving funds from the [department] Department of Corrections within the last five years;

(c) uses or receives any amount of tangible goods, services, or funds from the [department] Department of Corrections; or

(d) is required to register as a lobbyist because of the person's activities for compensation on behalf of a profession related to the operation of the [department] Department of Corrections or the office.

j. [The corrections ombudsperson may employ technical experts and other employees or consultants necessary to perform the duties of the office.] (Deleted by amendment, P.L. , c. ) (pending before the Legislature as this bill)

(cf: P.L.2019, c.288, s.6)

29. Section 29 of P.L.2005, c.155 (C.52:27EE-29) is amended to read as follows:

29. Division of Mental Health Advocacy; established.

a. There is hereby established in the [Office] Department of the Public [Defender] Advocate a Division of Mental Health Advocacy to be under the supervision of the Director of the Division of Mental Health Advocacy.

b. The division is hereby designated as the State's mental health protection and advocacy agency. The division shall have all the powers necessary to carry out its responsibilities as required to qualify for federal funding as the State protection and advocacy agency.

(cf: P.L.2010, c.34, s.25)

30. Section 31 of P.L.2005, c.155 (C.52:27EE-31) is amended to read as follows:

31. Division of Mental Health Advocacy; class actions.

The Director of the Division of Mental Health Advocacy may represent, with the approval of the Public [Defender] Advocate, the interests of indigent mental hospital admittees in such disputes and litigation as will, in the discretion of the Public [Defender] Advocate, best advance the interests of indigent mental hospital admittees as a class on an issue of general application to them, and may act as representative of indigent mental hospital admittees with any principal department or other instrumentality of State, county or local government.

(cf: P.L.2010, c.34, s.26)

31. Section 34 of P.L.2005, c.155 (C.52:27EE-34) is amended to read as follows:

34. Division of Mental Health Advocacy; financial status of client; investigation.

The Division of Mental Health Advocacy shall make such investigation of the financial status of each mental health client as the circumstances warrant. The division, pursuant to rules and regulations promulgated by the [Office] Department of the Public [Defender] Advocate for this purpose, may obtain information from any public record, office of the State or of any subdivision or agency thereof on request and without payment of the fees ordinarily required by law.

(cf: P.L.2010, c.34, s.27)

32. Section 35 of P.L.2005, c.155 (C.52:27EE-35) is amended to read as follows:

35. Division of Mental Health Advocacy; staff.

a. The Director of the Division of Mental Health Advocacy may employ, with the approval of the Public [Defender] Advocate, such assistants on a full-time basis as are necessary to protect the rights of persons with mental illness. When exceptional circumstances arise, the director may retain, with the approval of the Public [Defender] Advocate, on a temporary basis such other expert assistants as are necessary pursuant to a reasonable fee schedule established in advance by the Public [Defender] Advocate.

b. Cases shall be assigned to staff attorneys or attorneys hired by case on a basis calculated to provide competent representation in light of the nature of the case, the services to be performed, the experience of the particular attorney and other relevant factors.

c. Employees of the Division of Mental Health Advocacy in the [Department of the Public Advocate] Office of the Public Defender who are client services representatives or patient advocates for the mentally ill providing patient advocacy services in State or county facilities that provide inpatient care, supervision and treatment for persons with mental illness, including psychiatric facilities, and the functions of such employees, are hereby transferred to the [Office of the Public Defender] Department of the Public Advocate to be employees thereof. The Public [Defender] Advocate through the Division of Mental Health Advocacy shall employ such persons and continue such functions in the manner the Public [Defender] Advocate and the director of the division shall deem appropriate and necessary. These employees shall report to the division director and the Public [Defender] Advocate.

(cf: P.2010, c.34, s.28)

33. Section 36 of P.L.2005, c.155 (C.52:27EE-36) is amended to read as follows:

36. Division of Mental Health Advocacy; status of staff.

Independent contractors or other individuals, agencies, or entities not established in or employed by the [Office] Department of the Public [Defender] Advocate retained to provide protection and advocacy services to indigent mental hospital admittees[, or designated to provide mental health protection and advocacy services,] are not public entities or public employees for purposes of the “New Jersey Tort Claims Act,” N.J.S.59:1-1 et seq.

(cf: P.L.2010, c.34, s.29)

34. Section 37 of P.L.2005, c.155 (C.52:27EE-37) is amended to read as follows:

37. Division of Mental Health Advocacy; transfer of functions.

All functions, powers, and duties which had been vested in the Division of Mental Health Advocacy in the [Department] Office of the Public [Advocate] Defender are hereby transferred to and assumed by the Division of Mental Health Advocacy in the [Office] Department of the Public [Defender] Advocate.

Whenever, in any law, rule, regulation, order, reorganization plan, contract, document, judicial or administrative proceeding, or otherwise, reference is made to the Division of Mental Health Advocacy in the [Department] of the Public [Advocate] Defender, the same shall mean and refer to the Division of Mental Health Advocacy in the [Office] Department of the Public [Defender] Advocate.

(cf: P.L.2010, c.34, s.30)

35. Section 46 of P.L.2005, c.155 (C.52:27EE-46) is amended to read as follows:

46. Division of Rate Counsel; established.

There is hereby established in the Department of the [Treasury] the Public Advocate the Division of Rate Counsel to be under the supervision of the Director of the Division of Rate Counsel. [For the purposes of complying with the provisions of Article V, Section IV, paragraph 1 of the New Jersey Constitution, the Division of Rate Counsel is hereby allocated to the Department of the Treasury, but, notwithstanding this allocation, the division shall be independent of any supervision or control by the department or by any board or officer thereof.]

(cf: P.L.2010, c.34, s.31)

36. Section 47 of P.L.2005, c.155 (C.52:27EE-47) is amended to read as follows:

47. Director of the Division of Rate Counsel; staff.

a. The Director of the Division of Rate Counsel shall be an attorney-at-law of this State, appointed by the [Governor] Public Advocate.

b. When exceptional circumstances arise, the Director of the Division of Rate Counsel, with the approval of the [State Treasurer] Public Advocate, may on a temporary basis retain such expert assistants as are necessary to protect the public interest, pursuant to a reasonable fee schedule established in advance by the Treasurer.

c. Cases shall be assigned to staff attorneys or to attorneys hired on a case by case basis calculated to provide competent representation in the light of the nature of the case, the services to be performed, the experience of the particular attorney, and other relevant factors.

(cf: P.L.2010, c.34, s.32)

37. Section 48 of P.L.2005, c.155 (C.52:27EE-48) is amended to read as follows:

48. Division of Rate Counsel; jurisdiction.

The Division of the Rate Counsel [in, but not of, the Department of the Treasury] in the Department of the Public Advocate shall have the authority to conduct investigations, initiate studies, conduct research, present comments and testimony before governmental bodies, issue reports, and produce and disseminate consumer guides on any matters that fall within the Rate Counsel's jurisdiction. The Rate Counsel shall also have the authority to represent the public interest as set forth below.

a. Utilities. The Division of Rate Counsel may represent and protect the public interest as defined in section 12 of P.L.2005, c.155 (C.52:27EE-12) in proceedings before and appeals from any State department, commission, authority, council, agency, or board charged with the regulation or control of any business, industry, or utility regarding a requirement that the business, industry, or utility provide a service or regarding the fixing of a rate, toll, fare, or charge for a product or service. The Division of Rate Counsel may initiate any such proceedings when the director determines that a discontinuance or change in a required service or a rate, toll, fare, or charge for a product or service is in the public interest.

b. Insurance; limited jurisdiction. The Department of the Public Advocate shall represent and protect the public interest with respect to insurance matters through the Division of Rate Counsel , which shall represent and protect the public interest as defined in section 12 of P.L.2005, c.155 (C.52:27EE-12) with respect to insurance matters in significant proceedings that pertain solely to prior approval rate increases for personal lines property casualty coverages or Medicare supplemental coverages. The Division of Rate Counsel shall have no jurisdiction or authority to participate or intervene in (1) expedited prior approval rate filings made by an insurer or affiliated group of insurers pursuant to section 34 of P.L.1997, c.151 (C.17:29A-46.6) or section 3 of P.L.2001, c.409 (C.17:36-5.35), or (2) prior approval rate filings of seven percent or less, or (3) rule or form filings for any other form of insurance.

In determining, in his discretion, whether a proceeding is significant, the Director of the Division of Rate Counsel shall consider the following factors:

(1) the overall dollar impact of the requested increase, considering the filer's market share and the magnitude of the requested rate change;

(2) whether the increase, if granted, will increase the filer's rates significantly above market norms;

(3) whether the filer is advancing a significantly different alternate ratemaking methodology to the standard methodology established pursuant to section 8 of P.L.1988, c.119 (C.17:29A-36.2);

(4) whether the insurer is experiencing financial difficulties at its present rate level, as evidenced by the filing of rehabilitation proceedings, recent downgrading by insurance rating services, or significant losses reported on the filer's public financial statement.

The Director of the Division of Rate Counsel in the Department of the Public Advocate shall, in addition to the powers set forth in [this act] sections 46 through 55 of P.L.2005, c.155 (C.52:27EE-46 through C.52:27EE-55), have the express authority to intervene in public hearings pursuant to section 66 of P.L.1998, c.21 (C.17:29A-46.8).

(cf: P.L.2010, c.34, s.33)

38. Section 52 of P.L.2005, c.155 (C.52:27EE-52) is amended to read as follows:

52. Division of Rate Counsel; payment of expenses of division; annual utility assessment.

a. Annual utility assessment. The Division of Rate Counsel shall annually make an assessment against each public utility consistent with, but separate from, the Board of Public Utilities' assessments under the provisions of P.L.1968, c.173 (C.48:2-59 et seq.). All assessments due and owing to the Division of Rate Counsel as of the effective date of P.L.2010, c.34 (C.52:27EE-86 et al.), including any assessments due and owing as of the effective date of P.L.2005, c.155 (C.52:27EE-1 et seq.) shall be deemed due and owing to the Division of Rate Counsel [in, but not of, the Department of the Treasury] in the Department of the Public Advocate. Any assessments due and owing on and after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) shall be deemed due and owing to the Division of Rate Counsel in the Department of the Public Advocate.

b. Calculation of annual utility assessment. The annual assessment shall be equal to a percentage of the gross operating revenue of the public utilities under the jurisdiction of the Board of Public Utilities derived from intrastate operations during the preceding calendar year at a rate determined annually by the Director of the Division of Rate Counsel in the manner set forth in section 2 of P.L.1968, c.173 (C.48:2-60), except that the total amount assessed to any public utility shall not exceed 1/4 of 1 percent of the gross operating revenue subject to assessment hereunder. The minimum annual assessment under this section shall not be less than $500.

c. Levy and payment of annual assessment. The annual assessment set forth in subsections a. and b. above shall be levied by the Division of the Rate Counsel no later than August 15, and shall be paid within 30 days of mailing notice thereof and a statement of the amount by first class mail to any public utility.

(cf: P.L.2010, c.34, s.34)

39. Section 53 of P.L.2005, c.155 (C.52:27EE-53) is amended to read as follows:

53. Division of Rate Counsel; payment of expenses of division; annual insurance assessment.

a. Annual insurance assessment. The Director of the Office of Management and Budget in the Department of the Treasury shall, on or before August 15 in each year, ascertain and certify to the Commissioner of Banking and Insurance by category the total amount of expenses incurred by the State in connection with the administration of the special functions of the Division of Rate Counsel in the Department of the Public Advocate relative to the expenses of the Division of Rate Counsel in connection with the administration of insurance rate cases during the preceding fiscal year. The Department of Banking and Insurance shall make a separate special assessment on lines of insurance subject to the jurisdiction of the Director of the Division of Rate Counsel pursuant to subsection b. of section 48 of P.L.2005, c.155 (C.52:27EE-48), on an annual basis, in accordance with the formula set forth in P.L.1995, c.156 (C.17:1C-19 et seq.).

b. Calculation of annual insurance assessment. The annual assessment shall be no more than a specified aggregate amount adjusted annually for inflation, which shall be calculated and applied separately from the maximum total assessment set forth in section 13 of P.L.1995, c.156 (C.17:1C-31). The amount collected for expenses pursuant to subsection a. of this section, shall not exceed the amount appropriated by the Legislature for those expenses.

(cf: P.L.2010, c.34, s.35)

40. Section 54 of P.L.2005, c.155 (C.52:27EE-54) is amended to read as follows:

54. Division of Rate Counsel; transfer of powers and duties.

All functions, powers, and duties which had been vested in the Division of Rate Counsel in the Department of the [Public Advocate] Treasury are hereby transferred to and assumed by the Division of Rate Counsel in[, but not of,] the Department of the [Treasury] Public Advocate. Whenever, in any law, rule, regulation, order, reorganization plan, contract, document, judicial or administrative proceeding, or otherwise, reference is made to the Division of Rate Counsel in the Department of the [Public Advocate] Treasury, the same shall mean and refer to the Division of Rate Counsel [in, but not of,] in the Department of the [Treasury] Public Advocate.

(cf: P.L.2010, c.34, s.36)

41. Section 61 of P.L.2005, c.155 (C.52:27EE-61) is amended to read as follows:

61. Division of Elder Advocacy; established.

There is hereby established in the Department of the [Treasury] Public Advocate the Division of Elder Advocacy to be under the supervision of the Director of the Division of Elder Advocacy, appointed by the [Governor] Public Advocate. [For the purposes of complying with the provisions of Article V, Section IV, paragraph 1 of the New Jersey Constitution, the Division of Elder Advocacy is hereby allocated to the Department of the Treasury, but, notwithstanding this allocation, the division shall be independent of any supervision or control by the department or by any board or officer thereof.]

(cf: P.L.2010, c.34, s.37)

42. Section 62 of P.L.2005, c.155 (C.52:27EE-62) is amended to read as follows:

62. Division of Elder Advocacy; jurisdiction.

The Division of Elder Advocacy may represent the public interest in such administrative and court proceedings as the [director] Public Advocate deems shall best serve the interests of elderly adults.

(cf: P.L.2010, c.34, s.38)

43. Section 63 of P.L.2005, c.155 (C.52:27EE-63) is amended to read as follows:

63. Division of Elder Advocacy; powers and duties.

The Division of Elder Advocacy may protect the interests of the elderly by:

a. intervening in or instituting proceedings involving the interests of the elderly before any department, commission, agency, or board of the State leading to an administrative adjudication or administrative rule as defined in section 2 of P.L.1968, c.410 (C.52:14B-2);

b. instituting litigation on behalf of the elderly when authorized to do so by the Public Advocate; and

c. commencing negotiation, mediation, or alternative dispute resolution prior to, or in lieu of, the initiation of any litigation.

(cf: P.L.2010, c.34, s.39)

44. Section 65 of P.L.2005, c.155 (C.52:27EE-65) is amended to read as follows:

65. [Ombudsperson for the Institutionalized Elderly] State Long-Term Care Ombudsman; transfer to Department of the [Treasury. For the purposes of complying with the provisions of Article V, Section IV, paragraph 1 of the New Jersey Constitution, the Ombudsperson for the Institutionalized Elderly is hereby allocated to the Department of the Treasury, but, notwithstanding this allocation, the Ombudsperson shall be independent of any supervision or control by the department or by any board or officer thereof] Public Advocate.

a. There is hereby established in the Division of Elder Advocacy in the Department of the [Treasury an Ombudsperson for the Institutionalized Elderly] Public Advocate a State Long-Term Care Ombudsman.

b. The [Ombudsperson for the Institutionalized Elderly] State Long-Term Care Ombudsman shall be appointed by the [Governor] Public Advocate.

c. All functions, powers, and duties now vested in the [Ombudsperson for the Institutionalized Elderly] State Long-Term Care Ombudsman in the Department of the Treasury are hereby transferred to and assumed by the [Ombudsperson for the Institutionalized Elderly in, but not of,] State Long-Term Care Ombudsman in the Department of the [Treasury] Public Advocate.

Whenever, in any law, rule, regulation, order, reorganization plan, contract, document, judicial or administrative proceeding, or otherwise, reference is made to the [Ombudsperson for the Institutionalized Elderly] State Long-Term Care Ombudsman in the Department of the [Public Advocate] Treasury, the same shall mean and refer to the [Ombudsperson for the Institutionalized Elderly in, but not of,] State Long-Term Care Ombudsman in the Department of the [Treasury] Public Advocate.

(cf: P.L.2010, c.34, s.40)

45. Section 3 of P.L.1977, c.239 (C.52:27G-3) is amended to read as follows:

3. There is established in the Division of Elder Advocacy in the Department of the Public Advocate the State Long-Term Care Ombudsman. [For the purposes of complying with the provisions of Article V, Section IV, paragraph 1 of the New Jersey Constitution, the Office of the State Long-Term Care Ombudsman is hereby allocated to the Department of the Treasury, but, notwithstanding this allocation, the ombudsperson shall be independent of any supervision or control by the department or by any board or officer thereof.]

As of the effective date of P.L.2017, c.131 the Office of the Ombudsman for the Institutionalized Elderly, or the ombudsman thereof, shall be named the Office of the State Long-Term Care Ombudsman or the ombudsman thereof. All references in any law, order, rule, regulation, contract, document, judicial, or administrative proceeding, or otherwise, to the Office of the Ombudsman for the Institutionalized Elderly, or the ombudsman thereof, shall mean the Office of the State Long-Term Care Ombudsman or the ombudsman thereof in the Division of Elder Advocacy in the Department of the Public Advocate.

(cf: P.L.2017, c.131, s.202)

46. Section 4 of P.L.1977, c.239 (C.52:27G-4) is amended to read as follows:

4. The administrator and chief executive officer of the office shall be the [Ombudsperson for the Institutionalized Elderly] State Long-Term Care Ombudsman, who shall be a person qualified by training and experience to perform the duties of the office. [The Ombudsperson shall be appointed by the Governor and shall serve at the pleasure of the Governor.]

(cf: P.L.2010, c.34, s.42)

47. Section 12 of P.L.1980, c.125 (C.56:12-12) is amended to read as follows:

12. The Office of the Attorney General, the Division of Consumer Affairs, the Division of Rate Counsel in[, but not of, the Department of the Treasury,] the Department of the Public Advocate, the Commissioner of Banking and Insurance, in regard to contracts of insurance provided for in subsection c. of section 1 of [this act] P.L.1980, c.125 (C.56:12-1), or any interested person may seek injunctive relief. The court may authorize reasonable attorney's fees, not to exceed [$2,500.00] $2,500, and court costs in such a proceeding.

(cf: P.L.2010, c.34, s.43)

48. Section 1 of P.L.1981, c.347 (C.58:11-59) is amended to read as follows:

1. a. Whenever a small water company or a small sewer company, or both, are found to have failed to comply with any unstayed order of the Department of Environmental Protection concerning the availability of water, the potability of water, or the provision of water at adequate volume and pressure, or any unstayed order finding a small water company or a small sewer company or both a significant noncomplier or requiring the abatement of a serious violation, as those terms are defined pursuant to section 3 of P.L.1977, c.74 (C.58:10A-3), which the department is authorized to enforce pursuant to Title 58 of the Revised Statutes, the department and the Board of Public Utilities, and the Division of Rate Counsel in [, but not of, the Department of the Treasury] the Department of the Public Advocate may, after 30 days' notice to capable proximate public or private water or sewer companies, municipal utilities authorities established pursuant to P.L.1957, c.183 (C.40:14B-1 et seq.), municipalities or any other suitable public or private entities wherein the small water company, small sewer company, or both, provide service, conduct a joint public hearing to announce: the actions that may be taken and the expenditures that may be required, including acquisition costs, to make all improvements necessary to assure the availability of water, the potability of water and the provision thereof at adequate volume and pressure, and the compliance with all applicable federal and State water pollution control requirements for a small sewer company, including, but not necessarily limited to, the acquisition of the small water company or small sewer company, or both, by the most suitable public or private entity.

At the hearing the department and the board shall state the costs that are expected to be borne by the current users of the small water company, small sewer company, or both. The department shall propose an administrative consent order setting forth an agreed upon time schedule by which the acquiring entity would be required to make improvements required to resolve existing violations of federal and State safe drinking water and water pollution control statutes and regulations. The administrative consent order shall stipulate that the acquiring entity shall not be liable for any fines or penalties for continuing violations arising from the deficiencies, obsolescence or disrepair of the facilities at the time of the acquisition, provided that:

(1) the stipulation shall be conditioned upon compliance by the acquiring entity with the time frames established for improving the facilities and eliminating the existing violations; and

(2) the stipulation shall not include any violation to the extent caused by operational error, lack of preventive maintenance or careless or improper operation by the acquiring entity.

Under no circumstances shall the acquiring entity be liable for violations occurring prior to the acquisition.

At the conclusion of a hearing conducted pursuant to this section the record of the hearing shall be kept open for 30 days to allow for the submission of additional comments.

b. As used in sections 1 through 4 of P.L.1981, c.347 (C.58:11-59 through 58:11-62):

“Small water company” means any company, purveyor or entity, other than a governmental agency, that provides water for human consumption and which regularly serves less than 1,000 customer connections; and

“Small sewer company” means any company, business, or entity, other than a governmental agency, which is a public utility as defined pursuant to R.S.48:2-13, that collects, stores, conveys, or treats primarily domestic wastewater, and that regularly serves less than 1,000 customer connections.

(cf: P.L.2010, c.34, s.44)

49. Section 5 of P.L.1985, c.37 (C.58:26-5) is amended to read as follows:

5. A contracting unit which intends to enter into a contract with a private vendor for the provision of water supply services pursuant to the provisions of this act shall notify, at least 60 days prior to issuing a request for qualifications from interested vendors pursuant to section 6 of this act, the division, the department and the Board of Public Utilities and the Director of the Division of Rate Counsel [in, but not of, the Department of the Treasury] in the Department of the Public Advocate of its intention, and shall publish notice of its intention in at least one newspaper of general circulation in the jurisdiction which would be served under the terms of the proposed contract.

(cf: P.L.2010, c.34, s.45)

50. Section 11 of P.L.1985, c.37 (C.58:26-11) is amended to read as follows:

11. Upon designating the selected vendor or vendors pursuant to section 10 of [this act] P.L.1985, c.37 (C.58:26-10), a contracting unit shall negotiate with the selected vendor or vendors a proposed contract, which shall include the accepted proposal and the provisions required pursuant to section 15 of [this act] P.L.1985, c.37 (C.58:26-15). Upon negotiating a proposed contract, the contracting unit shall make the proposed contract available to the public at its main offices, and shall transmit a copy of the proposed contract to the division, the department, the Board of Public Utilities and the Division of Rate Counsel [in, but not of, the Department of the Treasury] in the Department of the Public Advocate.

(cf: P.L.2010, c.34, s.46)

51. Section 12 of P.L.1985, c.37 (C.58:26-12) is amended to read as follows:

12. a. A contracting unit shall conduct a public hearing or hearings on the charges, rates, or fees, or the formula for determining these charges, rates, or fees, and the other provisions contained in a proposed contract negotiated pursuant to section 11 of [this act] P.L.1985, c.37 (C.58:26-11). The contracting unit shall provide at least 90 days' public notice of this public hearing to the Division of Rate Counsel [in, but not of, the Department of the Treasury] in the Department of the Public Advocate, prospective consumers and other interested parties. This notice shall be published in at least one newspaper of general circulation in the jurisdiction to be served under the terms of the proposed contract. Within 45 days after giving notice of the public hearing, the contracting unit shall hold a meeting with prospective consumers and other interested parties to explain the terms and conditions of the proposed contract, and to receive written questions which will be part of the record of the public hearing. At the public hearing, the selected vendor or vendors shall be present, and the contracting unit shall have the burden to answer the questions received at the meeting, and to show that the proposed contract complies with the provisions of section 15 of [this act] P.L.1985, c.37 (C.58:26-15), and that it constitutes the best means of securing the required water supply services among available alternatives. The contracting unit shall provide that a verbatim record be kept of the public hearing, and that a written transcript of this record be printed and made available to the public within 30 days of the close of the public hearing. After the public hearing the contracting unit and the vendor may agree to make changes to the proposed contract, and shall transmit the proposed contract, a copy of the printed transcript of the public hearing, and a statement summarizing the major issues raised at the public hearing and the response of the contracting unit to these issues, to the division, the department, the Board of Public Utilities, and the Division of Rate Counsel in the Department of the Public Advocate, and to all persons who attended the public hearing.

b. [If the Division of Rate Counsel represents the public interest at a public hearing or hearings conducted pursuant to this section, the Division of Rate Counsel shall be entitled to assess the vendor for costs incurred in this representation in the manner provided in section 20 of P.L.1974, c.27 (C.52:27E-19). The basis of the assessment shall be the prospective first year's revenue realized by the vendor from the provision of the water supply services pursuant to the terms of the proposed contract.] (Deleted by amendment, P.L. , c. ) (pending before the Legislature as this bill)

c. If a contract awarded pursuant to the provisions of this act is renegotiated, the contracting unit shall conduct a public hearing on the renegotiated contract pursuant to the provisions of this section.

(cf: P.L.2010, c.34, s.47)

52. Section 11 of P.L.1985, c.72 (C.58:27-11) is amended to read as follows:

11. Upon designating the selected vendor or vendors pursuant to section 10 of [this act] P.L.1985, c.37 (C.58:26-10), a contracting unit shall negotiate with the selected vendor or vendors a proposed contract, which shall include the accepted proposal and the provisions required pursuant to section 15 of [this act] P.L.1985, c.37 (C.58:26-15). Upon negotiating a proposed contract, the contracting unit shall make the proposed contract available to the public at its main offices, and shall transmit a copy of the proposed contract to the division, the department and the Division of Rate Counsel [in, but not of, the Department of the Treasury] in the Department of the Public Advocate.

(cf: P.L.2010, c.34, s.48)

53. Section 12 of P.L.1985, c.72 (C.58:27-12) is amended to read as follows:

12. a. A contracting unit shall conduct a public hearing or hearings on the charges, rates, or fees, or the formula for determining these charges, rates, or fees, and the other provisions contained in a proposed contract negotiated pursuant to section 11 of [this act] P.L.1985, c.37 (C.58:26-10). The contracting unit shall provide at least 90 days' public notice of this public hearing to the Division of Rate Counsel in[, but not of, the Department of the Treasury] the Department of the Public Advocate, prospective consumers and other interested parties. This notice shall be published in at least one newspaper of general circulation in the jurisdiction to be served under the terms of the proposed contract. Within 45 days after giving notice of the public hearing, the contracting unit shall hold a meeting with prospective consumers and other interested parties to explain the terms and conditions of the proposed contract, and to receive written questions which will be part of the record of the public hearing. At the public hearing, the selected vendor or vendors shall be present, and the contracting unit shall have the burden to answer the questions received at the meeting, and to show that the proposed contract complies with the provisions of section 15 of [this act] P.L.1985, c.37 (C.58:26-15), and that it constitutes the best means of securing the required wastewater treatment services among available alternatives. The contracting unit shall provide that a verbatim record be kept of the public hearing, and that a written transcript of this record be printed and made available to the public within 45 days of the close of the public hearing. Written testimony received no more than 15 days after the public hearing shall be included in the written transcript. After the public hearing the contracting unit and the vendor may agree to make changes to the proposed contract, and the contracting unit shall transmit the proposed contract, a copy of the printed transcript of the public hearing, and a statement summarizing the major issues raised at the public hearing and the response of the contracting unit to these issues, to the division, the department, and the Division of Rate Counsel in the Department of the Public Advocate, and shall make copies available to any other person upon request.

b. [If the Division of Rate Counsel represents the public interest at a public hearing or hearings conducted pursuant to this section, the Division of Rate Counsel shall be entitled to assess the vendor for costs incurred in this representation in the manner provided in section 20 of P.L.1974, c.27 (C.52:27E-19). The basis of the assessment shall be the prospective first year's revenue realized by the vendor from the provision of the wastewater treatment services pursuant to the terms of the proposed contract.] (Deleted by amendment, P.L. , c. ) (pending before the Legislature as this bill)

(cf: P.L.2010, c.34, s.49)

54. (New section) Short title.

This act shall be known and may be cited as the “Public Advocate Restoration Act of 2018.”

55. (New section) Legislative findings and declarations.

The Legislature finds and declares that:

a. There is a great need for consumer protection and advocacy on behalf of the indigent, the elderly, children, and other persons unable to protect themselves as individuals or a class.

b. Consolidating the diffuse functions of ombudspersons, Rate Counsel, and other functions within a single Department of the Public Advocate will produce cost savings and more effective protection of the public interest and empower the Public Advocate to coordinate an efficient and timely process for evaluation and resolution of problems and disputes that affect consumers and other interested parties.

c. The abolition of the Public Advocate by P.L.2010, c.34 and the transfer of some of its functions to various departments has resulted in diffuse, ineffective representation of the rights of those unable to effectively advocate for themselves.

d. It is essential that the State of New Jersey marshal existing resources scattered throughout State government and create economies of scale that will aid in the effective delivery of public services and the appropriate allocation of public resources.

e. The Legislature must protect the public and restore confidence in government through effective advocacy, provided by the Department of the Public Advocate.

f. Litigation is a costly and oftentimes ineffective means of resolving disputes, and State government must provide leadership and foster an environment for alternative dispute resolution. The public will benefit greatly from a Public Advocate devoted to a cost-effective means to avoid expensive litigation and an amicable way to resolve disputes.

g. Children have special advocacy needs that require familiarity and expertise regarding the issues that affect them and the Office of the Child Advocate allocated within the Department of the Public Advocate can effectively fulfill those needs.

h. The elderly represent an ever-increasing portion of the population that requires special attention, and a Division of Elder Advocacy can effectively meet those needs.

i. There must be a transfer of funding to fund the operations of the Department of the Public Advocate and the salary of its appointed commissioner known as the “Public Advocate.”

56. (New section) Department established.

There is hereby established in the Executive Branch of the State Government a principal department which shall be known as the Department of the Public Advocate.

57. (New section) Commissioner; appointment; term; salary.

The administrator and chief executive officer of the Department of the Public Advocate shall be a commissioner, who shall be known as the Public Advocate and who shall be an attorney-at-law of this State and a person qualified by training and experience to perform the duties of the office. The Public Advocate shall be appointed by the Governor, with the advice and consent of the Senate, and shall serve during the Governor's term of office and until the appointment and qualification of the Public Advocate's successor.

The Governor shall have the power to remove the Public Advocate for cause.

The Public Advocate shall receive such salary as shall be provided by law.

The Public Advocate may, in the discretion of the Governor, concurrently hold another position established in or allocated to the Department of the Public Advocate, notwithstanding any requirement of law that the Public Advocate devote his entire time to the duties of one position or the other. In such case, the Public Advocate shall receive only the salary provided for the Public Advocate, and not the salary for such other position.

58. (New section) Powers and duties of Public Advocate.

The Public Advocate as administrator and chief executive officer of the department shall:

a. administer the work of the department;

b. appoint and remove such officers, investigators, stenographic and clerical assistants and other personnel as may be required for the conduct of the department, subject to the provisions of Title 11A of the New Jersey Statutes, Civil Service, and other applicable statutes, except as provided otherwise herein;

c. adopt, issue and promulgate, in the name of the department, such rules and regulations as may be necessary, consistent with the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.);

d. formulate and adopt rules and regulations for the efficient conduct of the work and general administration of the department, its officers and employees;

e. institute or cause to be instituted such legal proceedings or processes consistent with the Rules Governing the Courts of New Jersey and the practice of law therein as may be necessary to properly enforce and give effect to any of his powers or duties;

f. have the authority to issue subpoenas to compel the attendance and testimony of witnesses or the production of books, papers and other documents, and administer oaths to witnesses in any matter under the investigation of the office. If any person to whom such subpoena is issued fails to appear or, having appeared, refuses to give testimony, or fails to produce the books, papers or other documents required, the Public Advocate may apply to the Superior Court, which may order the person to appear and give testimony or produce the books, papers or other documents, as applicable;

g. prepare schedules of rates to be paid for services rendered other than by the staff, taking into account the nature of the services, the time involved, the skill and experience required and other pertinent factors;

h. make such reports of the department's operation as the Governor or the Legislature shall from time to time request, or as may be required by law. In addition, the Public Advocate shall report to the Governor and the Legislature annually with respect to such matters relating to the work of the Public Advocate and at such times as he or she may deem in the public interest. This report shall describe the matters and activities involving the Department of the Public Advocate, its divisions and offices, including the status and description of significant cases that have been litigated, mediated, or otherwise administered by the Public Advocate. This report shall include an analysis on the costs and benefits of the litigation brought by the Public Advocate, and include any recommendations for administrative or legislative action that he or she deems necessary or appropriate;

i. perform, exercise and discharge the functions, powers and duties of the department through such divisions or offices as may be established by this act or otherwise by law;

j. organize and coordinate the work of the department in such divisions or offices, not inconsistent with the provisions of this act, and in such other organizational units as he or she may determine to be necessary for efficient and effective operation;

k. integrate within the department, so far as practicable, all staff services of the department and of the several divisions and other offices therein;

l. maintain suitable headquarters for the department and such other quarters as he or she shall deem necessary to the proper functioning of the department;

m. except as otherwise provided by law, appoint division directors, office directors, and ombudspersons who are qualified by training and experience to direct, under the supervision of the Public Advocate, the several divisions and offices established pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill). Such division directors, office directors, and ombudspersons shall serve at the pleasure of the Public Advocate who shall fix their compensation within the limits of available appropriations;

n. adopt policies and procedures to manage any litigation so that the Public Advocate may reasonably ensure that all litigation matters are effectively managed by the relevant division overseeing such actions;

o. solicit and accept grants of funds from the federal government and from private foundations, and allocate or restrict the use of such funds as may be required by the grantor;

p. be the request officer for the department within the meaning of such term as defined in P.L.1944, c.112 (C.52:27B-1 et seq.);

q. hire independent counsel on a case-by-case basis to provide competent representation in light of the nature of the case, the services to be performed, the experience of the particular attorney and other relevant factors, notwithstanding the provisions of section 11 of P.L.1944, c.20 (C.52:17A-11) to the contrary;

r. consult with the Child Advocate prior to the exercise of the Public Advocate's duties, or those of a division, office or ombudsperson, by commencing an investigation, legal proceeding or other matter, or taking an action, that may be co-extensive with the duties of the Child Advocate. The purpose of the consultation shall be to provide the Child Advocate with an opportunity to assist or collaborate with the Public Advocate on such investigation, legal proceeding, matter or action if the extent of the assistance or collaboration is within the powers and duties of the Child Advocate as those powers and duties are provided in this act. This requirement to consult the Child Advocate or the failure to do so in a timely manner shall not preclude or serve to restrict the Public Advocate in the performance of his duties, or those of a division, office or ombudsperson, at the Public Advocate's discretion; and

s. perform such other functions as may be prescribed in this act or by any other law.

59. (New section) Appointment of Assistant Public Advocate.

The Public Advocate may appoint an Assistant Public Advocate to serve at the pleasure of the Public Advocate. Such appointment shall be in writing and filed with the Secretary of State. The Assistant Public Advocate shall have and shall exercise the powers and perform the functions and duties of the Public Advocate during the absence or disability of the Public Advocate. The Assistant Public Advocate shall also have and exercise such of the powers and perform such of the functions and duties of the Public Advocate as he shall be authorized and directed by the Public Advocate. Any such authorization and direction shall be in writing, signed by the Public Advocate and filed with the Secretary of State, and shall include a designation of the period during which it shall be and remain in force. No such authorization and direction shall be deemed to preclude the Public Advocate from himself exercising the powers and the performance of the duties included in the authorization and direction. In the event that the Public Advocate shall die, resign or be removed from office, or become disqualified to execute the duties of the office, or a vacancy shall occur in the office of the Public Advocate for any cause whatsoever, the person then holding the office of Assistant Public Advocate shall continue to hold such office and shall have and shall exercise the powers and perform the functions and duties of the Public Advocate until the successor of the Public Advocate shall be appointed and shall qualify.

The Assistant Public Advocate shall receive such salary as shall be provided by law.

60. (New section) Deputy public advocates and other assistants.

The Public Advocate shall appoint deputy public advocates and other expert assistants in such number as he or she shall require to assist him in the performance of the duties of the office. Deputies shall be attorneys-at-law of this State. Deputies and other expert assistants shall serve at the pleasure of the Public Advocate and shall receive such salaries as the Public Advocate shall from time to time designate.

61. (New section) Professional responsibilities.

The primary duty of all staff members and of others engaged by the department on a temporary or case basis shall be to the individual client, with like effect and to the same purpose as though privately engaged by the client and without regard to the use of public funds to provide the service. This responsibility shall not preclude the designation or assignment of different individuals to perform various parts of the service from time to time, the duty in such cases to be the same as would exist in the case of a privately engaged law firm.

62. (New section) Attorney-client and work product privileges.

a. All communications between the individual client and any attorney in or engaged by the Department of the Public Advocate shall be fully protected by the attorney-client privilege to the same extent and degree as though counsel has been engaged privately, and the work product of such attorneys shall be fully protected by the work product privilege to the same extent and degree as though counsel has been engaged privately. These privileges shall in no way preclude the use by the department of material in its files, otherwise privileged, for the preparation and disclosure of statistical, case study and other sociological data, provided always that in any such use there shall be no disclosure of the identity or the means for discovering the identity of particular clients.

b. Any record held by the department which includes information about the identity, care or treatment of any person seeking or receiving services from the department, or the identity of any person seeking services from the department on behalf of another person, shall not be a government record as defined in section 1 of P.L.1995, c.23 (C.47:1A-1.1) and shall not be available for public inspection, copying, or the purchase of copies.

c. Any person acting reasonably and in good faith who seeks assistance from the department on behalf of another person shall be immune from civil or criminal liability that might otherwise be incurred or imposed and shall have the same immunity with respect to testimony given in any judicial proceeding resulting from that request for assistance.

63. (New section) Standard of performance.

In providing legal services to clients pursuant to this act, every attorney, whether a member of the staff or engaged by the department on a temporary or case basis, shall adhere to the standards of performance established from time to time by the Supreme Court of New Jersey in the execution of its duty to supervise the practice of law.

64. (New section) Organization of department.

a. There are hereby established seven divisions and one office within the Department of the Public Advocate.

The divisions within the department shall be the: Division of Administration; Division of Citizen Relations; Division of Mental Health Advocacy; Division of Advocacy for the Developmentally Disabled; Division of Rate Counsel; Division of Public Interest Advocacy; and Division of Elder Advocacy.

The office within the department shall be the Office of Public Advocate.

b. The Office of the Child Advocate shall be an office allocated within the Department of the Public Advocate, but shall be independent of supervision and control by the department and its officers and divisions, as provided in this act.

65. (New section) Office of Public Advocate; established.

The Public Advocate may establish an Office of Public Advocate and appoint to such office those persons necessary to the supervision and efficient operations of the department.

66. (New section) Division of Administration; established.

There is hereby established in the Department of the Public Advocate the Division of Administration to be under the supervision of the Director of the Division of Administration.

67. (New section) Division of Administration; duties.

It shall be the duty of the Division of Administration, at the direction of the Public Advocate, to prepare a budget for the department, fulfill personnel requirements, provide public information concerning department activities, and conduct such research as the Public Advocate determines to be relevant and necessary to the department's functions.

68. (New section) Division of Citizen Relations; established.

There is hereby established in the Department of the Public Advocate the Division of Citizen Relations to be under the supervision of the Director of the Division of Citizen Relations.

69. (New section) Division of Citizen Relations; powers and duties.

The Division of Citizen Relations shall, under the direction and supervision of the Director of the Division of Citizen Relations, in addition to other powers and duties vested in it by this act, or any other law:

a. receive and forward to appropriate agencies of the State for determination complaints from any citizen relating to the administrative action or inaction of agencies;

b. investigate any complaint from any citizen relating to the administrative action or inaction of any agency, whether or not such action or inaction is final, where the complaint indicates that the action or inaction may have been:

(1) unreasonable, unfair, oppressive, or potentially discriminatory, although in accordance with law;

(2) unaccompanied by an adequate explanation; or

(3) performed in an inefficient manner; and

c. maintain records indicating the final disposition of any complaint forwarded by the division to an agency.

70. (New section) Division of Citizen Relations; notice to complainant and agency.

The Division of Citizen Relations shall determine whether a complaint is or is not an appropriate subject for investigation under this act, and shall inform the complainant of that decision, stating its reasons therefor. If the division decides to investigate a complaint, it shall also notify the affected agency of its decision.

71. (New section) Division of Citizen Relations; procedure after investigation.

If, after investigation, the Division of Citizen Relations finds that:

a. a matter should be further considered by the agency,

b. an administrative action or inaction should be modified or canceled,

c. a statute or regulation on which an administrative action or inaction is based should be altered,

d. reasons or more complete reasons should be given for an administrative action or inaction, or

e. any other action should be taken by the agency, it shall report its findings and recommendations to the Public Advocate who may request the agency to notify him or her, within a specified time, of the action taken on such recommendations. The division is also authorized to conduct public hearings on such an issue if it determines that such hearings are necessary. The Public Advocate may refer the findings and recommendations of the Division of Citizen Relations to the Division of Public Interest Advocacy or, if appropriate, to the Division of Rate Counsel.

72. (New section) Division of Citizen Relations; notice to the complainant.

After a reasonable time has elapsed, the Division of Citizen Relations shall notify the complainant of the action taken by the Division of Citizen Relations and by the agency which was the subject of the complaint.

73. (New section) Corrections Ombudsperson; established.

There is hereby established in the Division of Citizen Relations in the Department of the Public Advocate a Corrections Ombudsperson.

74. (New section) Corrections Ombudsperson; appointment.

The Corrections Ombudsperson shall be appointed by the Public Advocate and shall serve at the pleasure of the Public Advocate during the Public Advocate's term of office.

75. (New section) Division of Advocacy for the Developmentally Disabled; established; appointment.

a. There is hereby established in the Department of the Public Advocate the Division of Advocacy for the Developmentally Disabled to be under the supervision of the Director of the Division of Advocacy for the Developmentally Disabled, appointed by the Public Advocate.

b. The division is hereby designated as the State's protection and advocacy agency for persons with developmental disabilities. The intent of sections 75 through 82 of P.L. , c. (C. ) (pending before the Legislature as this act) is that the division shall have all the powers necessary to carry out its responsibilities as required to qualify for federal funding as the State protection and advocacy agency. Until such designation is effectuated, the division may take such action as it deems appropriate for the purpose of coordinating with the private entity designated the State's protection and advocacy agency for persons with developmental disabilities pursuant to subsection i. of section 1 of P.L.2010, c.34 (C.52:27EE-86).

76. (New section) Division of Advocacy for the Developmentally Disabled; objective; duties.

a. The Division of Advocacy for the Developmentally Disabled shall promote, advocate, and ensure the adequacy of the care received, and the quality of life experienced, by persons with developmental disabilities, including patients, residents, and clients within the developmental disabilities facilities and programs operated, funded, or licensed by the State. In determining what elements are essential to ensure adequate care and quality of life, the division shall consider the unique medical, social, and economic needs and problems of persons with developmental disabilities as patients, residents, and clients of facilities and as citizens and community members.

b. The director shall establish and implement procedures to elicit, receive, process, respond, and resolve complaints from patients, their families, other interested citizens, public officials, and government agencies concerning conditions in the State’s developmental disabilities facilities.

77. (New section) Division of Advocacy for the Developmentally Disabled; services.

The Division of Advocacy for the Developmentally Disabled may receive and investigate complaints and provide such legal representation and other advocacy services on an individual or class basis as the Public Advocate deems appropriate to protect and advocate the rights of developmentally disabled persons. The division may also, within the limits of available funding, provide services to other handicapped persons or classes of persons found by the Public Advocate to have needs similar to developmentally disabled people.

78. (New section) Division of Advocacy for the Developmentally Disabled; eligibility for services.

Eligibility for services for the developmentally disabled shall be determined on the basis of the need of the client and in a manner consistent with the conditions of any grant obtained by the Public Advocate to assist in implementing P.L. , c. (C. ) (pending before the Legislature as this bill).

79. (New section) Division of Advocacy for the Developmentally Disabled; staff.

The Director of the Division of Advocacy for the Developmentally Disabled may employ, with the approval of the Public Advocate, such assistants on a full time basis as are necessary to protect the rights of developmentally disabled persons. When exceptional circumstances arise, the director may retain, with the approval of the Public Advocate, on a temporary basis such other expert assistants as are necessary pursuant to a reasonable fee schedule established in advance by the Public Advocate.

Cases shall be assigned to staff attorneys or attorneys hired by case on a basis calculated to provide competent representation in light of the nature of the case, the services to be performed, the experience of the particular attorney and other relevant factors.

80. (New section) Division of Advocacy for the Developmentally Disabled; status of staff.

Independent contractors or other individuals, agencies, or entities not established in or employed by the Department of the Public Advocate retained or designated to provide protection and advocacy services to persons with a developmental disability as the term is defined in section 3 of the “Developmentally Disabled Rights Act,” P.L.1977, c.82 (C.30:6D-3), are not public entities or public employees for purposes of the “New Jersey Tort Claims Act,” N.J.S.59:1-1 et seq.

81. (New section) Division of Advocacy for the Developmentally Disabled; definition.

For purposes of this act, a developmentally disabled person is a person with a developmental disability as that term is defined in section 3 of the “Developmentally Disabled Rights Act,” P.L.1977, c.82 (C.30:6D-3).

82. (New section) Division of Advocacy for the Developmentally Disabled; transfer of functions.

All functions, powers, and duties which had been vested in a private entity pursuant to designation by the Governor as the State’s protection and advocacy agency for persons with developmental disabilities are hereby transferred to and assumed by the Division of Advocacy for the Developmentally Disabled in the Department of the Public Advocate, except that the private entity shall continue to exercise the functions, powers and duties as the State's protection and advocacy agency for persons with developmental disabilities until the designation of the division as the State's protection and advocacy agency for persons with developmental disabilities is effectuated.

Whenever, in any law, rule, regulation, order, reorganization plan, contract, document, judicial or administrative proceeding, or otherwise, reference is made to the private entity designated by the Governor as the State's protection and advocacy agency for persons with developmental disabilities concerning functions, powers, and duties which now vested in the private entity, the same shall mean and refer to the Division of Advocacy for the Developmentally Disabled in the Department of the Public Advocate, except that with regard to the private entity the reference shall be effective when the designation of the division as the State’s protection and advocacy agency for persons with developmental disabilities is effectuated.

83. (New section) Division of Public Interest Advocacy; established.

There is hereby established in the Department of the Public Advocate the Division of Public Interest Advocacy to be under the supervision of the Director of the Division of Public Interest Advocacy, who shall be an attorney-at-law of this State, appointed by the Public Advocate.

84. (New section) Division of Public Interest Advocacy; jurisdiction.

The Division of Public Interest Advocacy may represent the public interest in such administrative and court proceedings, other than those under the jurisdiction of the Division of Rate Counsel pursuant to sections 46 through 55 of P.L.2005, c.155 (C.52:27EE-46 through C.52:27EE-55), as the Public Advocate deems shall best serve the public interest.

85. (New section) Division of Public Interest Advocacy; decision to represent particular public interest.

The Public Advocate shall have sole discretion to represent or refrain from representing the public interest in any proceeding. The Public Advocate shall consider in exercising his discretion the importance and the extent of the public interest involved and whether that interest would be adequately represented without the action of the department. If the Public Advocate determines that there are inconsistent public interests involved in a particular matter, the Public Advocate may choose to represent one such interest based on the considerations in this section, to represent no interest in that matter, or to represent one such interest through the Division of Public Interest Advocacy and another or others through other divisions of the department or through outside counsel engaged on a case by case basis. The Public Advocate has the authority to use his discretion to refer potential litigation or other matters to the Dispute Settlement Office in the Division of Citizen Relations for mediation and resolution.

86. (New section) Division of Public Interest Advocacy; power.

The Division of Public Interest Advocacy may represent and protect the public interest by:

a. intervening in or instituting proceedings before any department, commission, agency, or board leading to an administrative adjudication or administrative rule as defined in section 2 of P.L.1968, c.410 (C.52:14B-2), or intervening in any matter involving the grant or denial of a permit issued by an agency; and

b. instituting litigation on behalf of a broad public interest when authorized to do so by the Public Advocate. Such litigation or representation may include, but is not limited to, litigation on behalf of, or representation of, consumers, the indigent, the elderly, senior citizens, people with disabilities, persons with mental illness and developmental disabilities, or any other group or interest deemed appropriate by the Public Advocate.

87. (New section) Division of Public Interest Advocacy; additional powers.

a. The Division of Public Interest Advocacy may receive and investigate complaints and provide such legal representation and other advocacy services as the Public Advocate deems appropriate to protect and advocate the rights of any group or interest deemed appropriate by the Public Advocate, except, however, the provisions of this act shall not be construed to authorize the Division of Public Interest Advocacy, or any other division within the Department of the Public Advocate, to represent any individual in any matters involving incarceration, except as expressly set forth as the duties of the Corrections Ombudsperson in the Division of Citizen Relations.

b. The Division of Public Interest Advocacy may, in its discretion, commence negotiation, mediation, or alternative dispute resolution prior to, or in lieu of, the initiation of any litigation.

88. (New section) Office of the Child Advocate; established.

There is established the Office of the Child Advocate in the Executive Branch of the State Government. For purposes of complying with Article V, Section IV, paragraph 1 of the New Jersey Constitution, the office is allocated within the Department of the Public Advocate, but notwithstanding the allocation, the office shall be independent of any supervision or control by the department, or a division, office or officer thereof, in the performance of its duties.

89. (New section) Office of the Child Advocate; qualifications; appointment; term.

a. The administrator and chief executive officer of the office shall be the Child Advocate, who shall be an attorney admitted to practice law in New Jersey and be qualified by training and experience to perform the duties of the office.

b. The Child Advocate shall be appointed by the Governor and shall serve for a term of five years and until the appointment and qualification of his successor. The Governor shall have the power to remove the Child Advocate for cause. The Child Advocate shall devote his entire professional time to the duties of this position and receive such salary as shall be provided by law. A vacancy occurring in the position of Child Advocate shall be filled in the same manner as the original appointment, except that if the Child Advocate dies, resigns, becomes ineligible to serve for any reason or is removed from office, the Governor shall appoint an acting Child Advocate who shall serve until the appointment and qualification of the Child Advocate's successor.

90. (New section) Office of Child Advocate; purpose; consultation.

a. The Child Advocate shall seek to ensure the provision of effective, appropriate and timely services for children at risk of abuse and neglect in the State, and that children under State supervision due to abuse or neglect are served adequately and appropriately by the State.

b. The Office of the Child Advocate shall be deemed a child protective agency for the purposes of section 1 of P.L.1977, c.102 (C.9:6 8.10a).

c. The Child Advocate shall consult with the Public Advocate prior to exercising his duties by commencing an investigation, legal proceeding, inspection, evaluation or other matter that may be co-extensive with the duties of the Public Advocate or of a division of the Department of the Public Advocate. The purpose of the consultation shall be to provide the Public Advocate with an opportunity to assist or collaborate with the Child Advocate on such investigation, legal proceeding, inspection, evaluation or other matter if the extent of the assistance or collaboration is within the powers and duties of the Public Advocate or of a division as those powers and duties are provided in this act. This requirement to consult the Public Advocate or the failure to do so in a timely manner shall not preclude or serve to restrict the Child Advocate in the performance of his duties at his discretion.

91. (New section) Office of the Child Advocate; duties.

a. The Child Advocate shall:

(1) administer the work of the Office of the Child Advocate;

(2) appoint and remove such officers, investigators, stenographic and clerical assistants and other personnel, in the career or unclassified service, as may be required for the conduct of the office, subject to the provisions of Title 11A of the New Jersey Statutes (Civil Service), and other applicable statutes, except as provided otherwise herein;

(3) formulate and adopt rules and regulations for the efficient conduct of the work and general administration of the office, its officers and employees, in accordance with the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B 1 et seq.); and

(4) institute or cause to be instituted such legal proceedings or processes consistent with the Rules Governing the Courts of New Jersey as may be necessary to properly enforce and give effect to any of the Child Advocate's powers or duties.

b. Consistent with the provisions of federal and State law,

(1) the Child Advocate shall have access to, and the right to inspect and copy, any records, including pupil records in accordance with the provisions of N.J.S.18A:36-19, necessary to carry out the responsibilities under this act; and

(2) the Child Advocate shall have reasonable access to, and the right to copy any records from, the Division of Child Protection and Permanency necessary to carry out its responsibilities under this act, and only with regard to individuals who are or may be the subject of an investigation by the Child Advocate, or to assess the status of an individual complaint or inquiry to determine whether further action by the Child Advocate is appropriate; except that, access provided to the successor system, including the Statewide Automated Child Welfare Information System, shall be limited to information available through the Service Information System, unless otherwise agreed to by the Child Advocate and the Department of Human Services.

c. The Child Advocate may issue subpoenas to compel the attendance and testimony of witnesses or the production of books, papers and other documents, and administer oaths to witnesses in any matter under the investigation of the office.

If any person to whom such subpoena is issued fails to appear or, having appeared, refuses to give testimony, or fails to produce the books, papers or other documents required, the Child Advocate may apply to the Superior Court, which may order the person to appear and give testimony or produce the books, papers or other documents, as applicable.

d. The Child Advocate shall disseminate information to the public on the objectives of the office, the services the office provides and the methods by which the office may be contacted.

e. The Child Advocate shall aid the Governor in proposing methods of achieving increased coordination and collaboration among State agencies to ensure maximum effectiveness and efficiency in the provision of services to children.

92. (New section) Office of the Child Advocate; powers.

The Child Advocate may:

a. investigate, review, monitor or evaluate any State agency response to, or disposition of, an allegation of child abuse or neglect in this State;

b. inspect and review the operations, policies and procedures of:

(1) juvenile detention centers operated by the counties and all juvenile justice facilities operated by or under contract with the Juvenile Justice Commission, including, but not limited to, secure correctional facilities and residential and day treatment programs;

(2) resource family homes, group homes, residential treatment facilities, shelters for the care of abused or neglected children, shelters for the care of juveniles considered as juvenile family crisis cases, shelters for the care of homeless youth, or independent living arrangements operated, licensed, or approved for payment, by the Department of Human Services, Department of Community Affairs or Department of Health; and

(3) any other public or private setting in which a child has been placed by a State or county agency or department;

c. review, evaluate, report on and make recommendations concerning the procedures established by any State agency providing services to children who are at risk of abuse or neglect, children in State or institutional custody, or children who receive child protective or permanency services;

d. review, monitor and report on the performance of State funded private entities charged with the care and supervision of children due to abuse or neglect by conducting research audits or other studies of case records, policies, procedures and protocols, as deemed necessary by the Child Advocate to assess the performance of the entities;

e. receive, investigate and make referrals to other agencies or take other appropriate actions with respect to a complaint received by the office regarding the actions of a State, county or municipal agency or a State funded private entity providing services to children who are at risk of abuse or neglect;

f. hold a public hearing on the subject of an investigation or study underway by the office, and receive testimony from agency and program representatives, the public and other interested parties, as the Child Advocate deems appropriate;

g. establish and maintain a 24-hour toll free telephone hotline to receive and respond to calls from citizens referring problems to the Child Advocate, both individual and systemic, in how the State, through its agencies or contract services, protects children;

h. in exercising the authority provided in subsection a. of this section, the Child Advocate may conduct unannounced site visits to any institution or facility to which children are committed, placed or otherwise disposed if the Child Advocate, prior to conducting an unannounced site visit, has initiated a project or investigation into the response or disposition of an allegation of abuse or neglect and there is a reasonable basis to believe that an unannounced site visit is necessary to carry out the Child Advocate’s responsibilities under this act, provided, however, that any unannounced site visit shall be conducted at a reasonable time and in a reasonable manner;

i. in exercising the authority provided under subsections a. through e. of this section, the Child Advocate shall consult with any appropriate State, county or municipal agency or a State funded private entity providing services to children, and may request from any such entity, and the entity is hereby authorized and directed to provide, such cooperation and assistance as will enable the Child Advocate to properly perform its responsibilities under this act; and

j. notwithstanding the provisions of section 11 of P.L.1944, c.20 (C.52:17A-11) to the contrary, hire independent counsel on a case-by-case basis to provide competent representation in light of the nature of the case, the services to be performed, the experience of the particular attorney and other relevant factors.

93. (New section) Office of the Child Advocate; findings; recommendations.

a. If the Child Advocate identifies a systemic problem in how the State, through its agencies or contract services, protects children, the Child Advocate shall meet with the State agency or agencies with jurisdiction to provide a reasonable opportunity to discuss the problem and identify possible responses the agency may consider. Taking into account any information provided during the meeting and discussion, the Child Advocate shall provide its findings and recommendations to the agency affected by the findings and recommendations, and, except as provided in subsections b. and c. of section 98 of this act, make those findings and recommendations available to the public.

b. Within 30 days from the receipt of the Child Advocate's findings and recommendations, the agency shall develop a corrective action response that addresses the findings and recommendations of the Child Advocate and specifies what actions, if any, the agency will take in response to the systemic problem identified by the Child Advocate, which response may be developed in conjunction with the Child Advocate.

c. The agency shall submit its corrective action response to the head of the relevant department or departments with jurisdiction over the agency and simultaneously provide a copy to the Child Advocate.

d. The Child Advocate shall monitor an agency's implementation of its corrective action response. An agency implementing a corrective action response shall provide the Child Advocate with periodic reports on the status of the actions taken by the agency pursuant to its corrective action response. The Child Advocate shall monitor the agency’s implementation of its corrective action response for a period of one year, during which time the agency shall provide the Child Advocate with periodic reports, except that the Child Advocate may determine that the monitoring and periodic reports are required for a period of less than one year. The agency’s obligation to provide periodic reports on the implementation of its corrective action response may exceed a period of one year if the Child Advocate and the agency jointly agree that an extended reporting period is appropriate.

e. If an agency fails to promptly and adequately implement a corrective action response, the Child Advocate shall take such action as the Child Advocate deems necessary.

f. An agency shall make public the corrective action responses and periodic status reports required by this section, except that the agency may provide to the Child Advocate an additional response or report containing confidential information.

94. (New section) Office of the Child Advocate; additional powers.

a. In addition to the powers granted in section 92 of P.L. , c. (C. ) (pending before the Legislature as this bill), the Child Advocate may:

(1) intervene in or institute litigation, including appearing in the capacity of an amicus curiae, as appropriate, or

(2) intervene in or institute administrative proceedings before any department, commission, agency or State board, to assert the broad public interest of the State in the welfare of children and to protect and promote the rights of children.

In taking such actions, the Child Advocate shall consider whether a child or family may be in need of assistance from the Child Advocate or whether there is a systemic issue in the State's provision of services to children that should be addressed. The Child Advocate shall make a good faith effort to resolve issues or problems, and shall have the authority to commence negotiations, mediation or alternative dispute resolution in its advocacy efforts prior to, or in lieu of, the initiation of any action brought pursuant to this section.

b. The Child Advocate shall have discretion to decide whether to intervene in any particular matter or to represent or refrain from representing the public interest in a proceeding. The Child Advocate shall consider, in exercising his discretion, the resources available, the importance and extent of the public interest involved, and whether that interest would be adequately represented without the action of the office.

95. (New section) Office of the Child Advocate; communication.

a. The Child Advocate shall seek the approval of a parent, guardian or law guardian, as applicable, or obtain the approval of a court of competent jurisdiction so as to communicate directly with a child who is the subject of a complaint or allegation of child abuse or neglect, if necessary to conduct an investigation authorized under the provisions of this act. The communications with the child shall be conducted under such terms and conditions that protect the best interests of the child.

b. If court approval is sought, the court, in reviewing an application for approval, shall consider: (1) the best interests of the child, so as to minimize any detrimental effects on the child that may occur as a result of the communication; and (2) the investigative needs of the Child Advocate and law enforcement authorities, when applicable. Upon consideration of the factors in this subsection, the court may order any alternative methods for obtaining the required information.

96. (New section) Office of the Child Advocate; protection; resource.

The Child Advocate shall seek to ensure the protection of children who are in an institution or resource family care by reviewing, evaluating and monitoring the operation and activities of the Institutional Abuse Investigation Unit in the Department of Human Services.

a. In order to enable the Child Advocate to carry out the Child Advocate's responsibilities under this section, the Institutional Abuse Investigation Unit shall:

(1) promptly notify the Child Advocate of any allegations of abuse or neglect made against an institution or resource family home serving children in this State;

(2) promptly provide the Child Advocate with a copy of the unit's response to the complaint and the actions taken by the unit to address the complaint;

(3) provide the Child Advocate with monthly updates of the status of actions proposed by the unit regarding an existing complaint that has not been resolved; and

(4) provide the Child Advocate with such other information as the Child Advocate may deem necessary to carry out the Child Advocate's responsibilities to review, evaluate and monitor the operation and activities of the unit.

b. As used in this section, “institution” means a public or private facility, in this State or out of State, that provides children with out of home care, supervision or maintenance. Institution includes, but is not limited to: a correctional facility, detention facility, treatment facility, child care center, group home, public and nonpublic elementary or secondary school and school bus or other similar vehicle used to transport students to and from school, residential school, shelter, psychiatric hospital and developmental center.

97. (New section) Office of the Child Advocate; reports.

The Child Advocate shall report annually to the Governor, the Public Advocate, the Commissioner of Human Services, and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), to the Legislature, on: the activities of the office; priorities for children's services that have been identified by the Child Advocate; and recommendations for improvement or needed changes concerning the provision of services to children who are at risk of abuse or neglect, and are in State or institutional custody or receive child protective or permanency services by State agencies and State funded private entities.

The annual report shall be made available to the public.

98. (New section) Office of the Child Advocate; disclosure; confidentiality.

a. The Child Advocate shall make public its findings of investigation reports or other studies undertaken by the office, including its investigatory findings to complaints received pursuant to section 92 of P.L. , c. (C. ) (pending before the Legislature as this bill), and shall forward any publicly reported findings to the Governor, the Legislature, the Public Advocate, the Commissioner of Human Services, and the affected public agencies.

b. The Child Advocate shall not disclose:

(1) any information that would likely endanger the life, safety, or physical or emotional wellbeing of a child or the life or safety of a person who filed a complaint or which may compromise the integrity of a State or county department or agency investigation, civil or criminal investigation or judicial or administrative proceeding; and

(2) the name of or any other information identifying the person who filed a complaint with, or otherwise provided information to, the office without the written consent of that person.

The information subject to the provisions of this subsection shall not be considered a public record pursuant to the provisions of P.L.1963, c.73 (C.47:1A-1 et seq.) and P.L.2001, c.404 (C.47:1A-5 et al.).

c. The Child Advocate shall not disclose any information that may be deemed confidential by federal or State law, except when necessary to allow the Department of the Public Advocate, Department of Human Services, Attorney General, Juvenile Justice Commission and other State or county department or agency to perform its duties and obligations under the law.

99. (New section) Actions; name of party; prior communication to public entity.

a. Any action brought by the Public Advocate or any persons authorized herein to institute or participate in actions before the courts or agencies of this State shall be brought in the name of the person serving as the Public Advocate or in the name of an affected individual or group, but shall not be brought in the name of the State or the people thereof.

b. Prior to initiating litigation, the Public Advocate shall communicate, in writing, with a public entity against which the Public Advocate anticipates filing adversarial action. The Public Advocate shall state unequivocally in its written transmittal to the public entity that the Public Advocate anticipates filing litigation to resolve the matter in controversy. The purpose of this requirement is to clearly provide the potential litigants with a final opportunity to resolve the matters in controversy outside the court system.

100. (New section) Suits or causes of action against Legislature or officers thereof.

The provisions of this act in and of themselves shall not be construed so as to create any new causes of action, or to authorize any suit against the Legislature or either House or the officers thereof.

101. (New section) No award of punitive or exemplary damages against public entities or employees.

No punitive or exemplary damages shall be awarded against a public entity or public employee in any action brought by the Public Advocate.

102. (New section) Applicability of State Agency Transfer Act.

This act shall be subject to the provisions of the “State Agency Transfer Act,” P.L.1971, c.375 (C.52:14D-1 et seq.).

103. (New section) Preservation of rights and terms.

This act shall not:

a. affect the tenure, compensation, and pension rights, if any, of the lawful holder thereof, in any position not specifically abolished herein, upon the effective date of this act; or

b. alter the term of any member of any board, commission, or public body, not specifically abolished or repealed herein, lawfully in office on the effective date of this act, or require the reappointment thereof.

104. (New section) Supersedure and repeal of inconsistent acts.

All acts and parts of acts inconsistent with any of the provisions of this act are, to the extent of such inconsistency, superseded and repealed.

105. (New section) Assertion of claim against spill compensation fund for class by Public Advocate.

The Department of the Public Advocate may act to assert claims as alleged against the Spill Compensation Fund established pursuant to the “Spill Compensation and Control Act,” P.L.1976, c.141 (C.58:10-23.11 et seq.).

106. (New section) Severability.

If any section, subsection, paragraph, sentence, or other part of P.L. , c. (C. ) (pending before the Legislature as this bill) is adjudged unconstitutional or invalid, such judgment shall not affect, impair, or invalidate the remainder of P.L. , c. (C. ) (pending before the Legislature as this bill), but shall be confined in its effect to the section, subsection, paragraph, sentence, or other part of this act directly involved in the controversy in which the judgment shall have been rendered.

107. (New section) Such sums as may be required for the costs of the Department of the Public Advocate shall be transferred from existing appropriations, subject to the approval of the Director of the Division of Budget and Accounting and such further approval as required pursuant to the transfer provisions of the annual appropriations act, to the Department of the Public Advocate for the purposes of implementing this act.

108. The following are repealed:

Section 37 of P.L.1994, c.58 (C.52:27E-75); and

Section 1 of P.L.2010, c.34 (C.52:27EE-86).

109. This act shall take effect on the 180^th day following enactment.

STATEMENT

This bill would restore the Department of the Public Advocate as a principal department in the Executive Branch.

The Department of the Public Advocate was first established in 1974 by P.L.1974, c.27. The department’s mission was to protect the interest of the residents of New Jersey by advocating and litigating on issues involving the public interest. The Public Advocate operated for 20 years until it was abolished by P.L.1994, c.58. Nine years later, the Department of the Public Advocate was restored by P.L.2005, c.155. The restored Department of the Public Advocate was abolished again by P.L.2010, c.34.

This bill is based on P.L.2005, c.155.

Under the bill, the Department of the Public Advocate would consist of the following:

• The Division of Administration;

• The Division of Citizen Relations, which would include the Corrections Ombudsperson and the Dispute Settlement Office;

• The Division of Mental Health Advocacy;

• The Division of Advocacy for the Developmentally Disabled;

• The Division of Rate Counsel;

• The Division of Public Interest Advocacy;

• The Division of Elder Advocacy; and

• The Office of the Child Advocate (in, but independent of, the Public Advocate).

Under the bill, the administrator and chief executive officer of the department would be known as the Public Advocate. The Public Advocate would be appointed by the Governor and serve during the Governor’s term of office.

Divisions:

· The Division of Administration would prepare the Department’s budget, fulfill personnel requirements, and conduct such research as the Public Advocate deems relevant and necessary.

· The Division of Citizen Relations would receive complaints from citizens relating to the administrative action or inaction of agencies, investigate those complaints, and report findings and recommendations to the Public Advocate. The division would also be authorized to conduct public hearings on issues.

· The bill would transfer the Corrections Ombudsperson, currently located in, but independent of, the Department of the Treasury, to the Division of Citizen Relations.

· The bill would also transfer the Dispute Settlement Office, currently located in the Office of the Public Defender, to the Division of Citizen Relations. The Dispute Settlement Office would be authorized to provide mediation and other third party neutral services in the resolution of disputes which involve the public interest.

· The Division of Advocacy for the Developmentally Disabled would promote, advocate, and ensure the adequacy of the care received by persons with developmental disabilities, including persons within facilities and programs operated, funded, or licensed by the State. The division would be authorized to receive and investigate complaints and provide legal representation and other advocacy services on an individual or class basis.

· The Division of Rate Counsel would represent and protect the public interest in proceedings before and appeals from any State department, commission, authority, council, agency, or board charged with the regulation or control of any business, industry, or utility regarding a requirement that the business, industry, or utility provide a service or regarding the fixing of a rate, toll, fare, or charge for a product or service.

· The Division of Public Interest Advocacy would represent the public interest in such administrative and court proceedings, other than those under the jurisdiction of the Division of Rate Counsel, as the Public Advocate would deem shall best serve the public interest.

· The Division of Elder Advocacy would represent the public interest in such administrative and court proceedings as the Public Advocate would deem shall best serve the interests of elderly adults. The division would also include the New Jersey Long-Term Care Ombudsman, which would be transferred to the division from its current location in the Department of the Treasury.

· The Office of the Child Advocate would be in, but independent of, the Department of the Public Advocate. The office would be authorized to investigate, review, monitor or evaluate any State agency response to, or disposition of, an allegation of child abuse or neglect in this State, and inspect and review the operations, policies and procedures of juvenile justice facilities, group homes, residential treatment facilities, and shelters for the care of abused or neglected children.