SENATE BUDGET AND APPROPRIATIONS COMMITTEE

STATEMENT TO

[First Reprint]

SENATE, No. 4344

STATE OF NEW JERSEY

DATED:  DECEMBER 15, 2025

      The Senate Budget and Appropriations Committee reports favorably Senate Bill No. 4344 (1R).

      As reported, this bill prohibits 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.

      As reported by the committee, Senate Bill No. 4344 (1R) is identical to Assembly Bill No. 5538 (1R), which was also reported by the committee on this date.

FISCAL IMPACT:

      The Office of Legislative Services concludes that this bill would result in an annual local government revenue loss because municipal utility 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 the fire department.  This would result in an indeterminate revenue loss to the affected municipal utility authority while the affected fire district or fire department would have a concomitant reduction in its expenditures.