ASSEMBLY APPROPRIATIONS COMMITTEE

STATEMENT TO

ASSEMBLY, No. 5538

with committee amendments

STATE OF NEW JERSEY

DATED:  JUNE 19, 2025

      The Assembly Appropriations Committee reports favorably and with committee amendments Assembly Bill No. 5538.

      As amended, this bill would prohibit a municipal utilities authority from imposing water service charges for fire protection systems upon a fire district or fire department if the authority also imposes water service charges upon customers of the authority who are taxpayers of the fire district or of a local government unit that finances the operations of the fire department.

COMMITTEE AMENDMENTS:

      The committee amendments prohibit a municipal utilities authority from imposing water service charges upon certain fire departments for fire protection systems.

FISCAL IMPACT:

      The Office of Legislative Services (OLS) concludes that this bill would result in an annual local government revenue loss because municipal utilities authorities would no longer be permitted to charge a fire district or fire department for a fire protection system’s water supply when water customers of the authority are also taxpayers of the fire district, or for a fire department, of a local government unit that finances the operations of a fire department.  This would result in an indeterminate revenue loss to the affected municipality utility authority while the affected fire district or local government would have a concomitant reduction in its expenditures.