LEGISLATIVE FISCAL ESTIMATE

[First Reprint]

SENATE, No. 1444

STATE OF NEW JERSEY

221st LEGISLATURE

DATED: JANUARY 9, 2026

SUMMARY

Synopsis:	Prohibits sewerage authority from imposing connection fee in certain circumstances.
Type of Impact:	Annual local revenue decrease and expenditure increase.
Agencies Affected:	Local sewerage authorities.

Office of Legislative Services Estimate
Fiscal Impact	Annual
Local Revenue Decrease	Indeterminate
Local Expenditure Increase	Indeterminate

· The Office of Legislative Services (OLS) concludes that the bill will result in decreased revenue to sewerage authorities in the State associated with a prohibition on imposing a new connection fee on a property in certain circumstances.

· The bill is also expected to result in increased expenditures for sewerage authorities associated with a requirement to reimburse property owners in certain circumstances.

BILL DESCRIPTION

      The bill prohibits a sewerage authority from imposing a new connection fee if the property being redeveloped was previously connected to the sewerage system for 20 or more years.  This exclusion applies although the property has not been in active use for a period of time since initial connection to the sewerage system.  The bill provides that the exclusion does not apply, and a sewerage authority is permitted to impose a new connection fee or tapping fee upon the owner or occupant, if the fee is imposed for the purpose of a proposed addition, alteration, or change of use to the property, including a proposed addition, alteration, or change of use that requires a modification and relocation of an existing connection to the sewerage system.  The bill requires a sewage authority to reimburse the fee for a new connection, paid in protest by the owner or occupant of the property, which was imposed by the authority prior to the effective date of the bill.

FISCAL ANALYSIS

EXECUTIVE BRANCH

      None received.

OFFICE OF LEGISLATIVE SERVICES

      The OLS concludes that the bill will result in decreased revenue and increased expenditures to sewerage authorities in the State.

      In order to encourage redevelopment of obsolete or vacant property, the bill prohibits a sewerage authority from imposing a new connection fee if the property being redeveloped was previously connected to the sewerage system for 20 or more years.  The OLS is unable to estimate the number of properties in the State that may be redeveloped and for which a sewerage authority would otherwise impose a new connection fee.  The OLS also notes that, while many sewerage authority new connection fees appear to fall within the $2,000 to $3,000 range, such fees vary across the State and are dependent upon multiple factors including, type of property, location, and estimated usage.  For these reasons, the OLS is unable to estimate the total decrease in revenue to sewerage authorities in the State as a result of the bill’s prohibition on imposing certain new connection fees.

      The bill also requires a sewage authority to reimburse the fee for a new connection, paid in protest by the owner or occupant of the property, which was imposed by the authority prior to the effective date of the bill.  The OLS is unable to estimate the number of reimbursements that may be required pursuant to this provision, given the number of potential cases, scope of time elapsed, and availability of records establishing proof of protest, and is, therefore, unable to estimate the total increase in expenditures that will be experienced by sewerage authorities in the State as a result of the bill.

Section:	Local Government
Analyst:	Abigail Stoyer Senior Fiscal Analyst
Approved:	Thomas Koenig Legislative Budget and Finance Officer

This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.

This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).