I. State Issues
a. Energy Tax Receipts Update
First, thank you to every Mayor, elected official, and municipal professional that reached out to their legislators and Governor Murphy urging the restoration of the Energy Tax Receipts, signed onto the joint Energy Tax Receipts Restoration Letter by the League and the Conference of Mayors and adopted resolutions of support for S-330/A-3804.
Your voices were heard! While we did not receive everything we fought for, the budget that was passed by the Legislature and signed by Governor Murphy includes $75 million in new funding, known as the Municipal Relief Fund, to be distributed to municipalities using the same Energy Tax Receipts formula. Once the final details of the distribution are known, we will provide you with an update.
When you see your legislators at events in your community in the coming months, please thank them for the Energy Tax Receipts Property Tax Relief Program down payment and be sure to let them know that you expect the $75 million to be both protected and expanded next year to a fully restored amount of $331 million.
Over the coming months, we will be in touch to discuss advocating further restoration in the Fiscal Year 2024 budget. In the meantime, please continue to use the League’s Energy Tax Restoration Resource Center.
Contacts:
Mike Cerra, Executive Director, mcerra@njlm.org, 609-695-3481, x120.
- Lori Buckelew, Deputy Executive Director & Director of Government Affairs, lbuckelew@njlm.org, 609-695-3481, x112.
b. State FY2023 Budget Signed
On June 30 Governor Murphy signed a $50.6 billion State FY2023 budget. The budget includes $649 million for Consolidated Municipal Property Tax Relief Aid (CMPTRA), $863 million for Energy Tax Receipts (ETR) allocations which includes the $75 million in Municipal Relief Fund, $6.8 billion for pension payments, and $900 million for the newly created ANCHOR program. The budget also includes, for the first time since 2009, $10 million for upgrades and consolidation for 9-1-1 centers thanks to the hard work by New Jersey Association of Counties (NJAC), which has long fought for the restoration of 9-1-1 funds. For more information on the State FY2023 budget and the municipal impact please see our June 30 Daily Update.
Contact: Andrew LaFevre, Legislative Analyst, alafevre@njlm.org, 609-695-3481, x116
c. Governor Signs Legislation
On June 30 Governor Murphy signed over 30 pieces of legislation into law. The following are of municipal interest.
i. Waiver of Marriage and Civil Union License Fees
S-2861/A-4440, waives the fees for marriage and civil union licenses for fiscal year 2023. From July 1, 2022 to June 30, 2023, the registrar cannot charge or collect the $28 fee for issuing a marriage or civil union license. The law appropriates $2 million for the State to reimburse municipalities the $3 per license portion of the fee. The Office of Vital Statistics and Registry must provide the Division of Local Government Services with marriage certificates submitted to the office by municipalities to assist in the reimbursements. P.L. 2022, c. 23 takes effect July 1 and expires on June 30, 2023.
Contact: Lori Buckelew, Deputy Executive Director & Director of Government Affairs, lbuckelew@njlm.org, 609-695-3481, x112.
ii. Governor Signs Legislation Regarding Economic Incentives for Certain Cannabis Businesses
On June 30 Governor Murphy signed into law S-2945/A-4392, concerning economic incentives for certain cannabis businesses. The new law removes the prohibition from receiving certain State or local economic incentives and technical assistance for small cannabis business operators, and operators of projects that are to be used to benefit these small cannabis businesses.
The new law removes from the definition of “State or local economic incentive” funding from the Department of Labor’s on-the-job training and financial incentives awarded by a program created by the New Jersey Economic Development Authority (EDA) for the purpose of providing financial or technical assistance to a prospective or licensed cannabis cultivator, cannabis manufacturer, cannabis wholesaler, cannabis distributor, cannabis retailer, or cannabis delivery service that qualifies as a small business. The program created by EDA must (1) require a portion of any funds made available under the program to be reserved for businesses operating within an impact zone, and (2) be funded in whole or in part through monies derived from the Social Equity Excise Fee and provide that the monies appropriated from the Social Equity Excise Fee are to be restricted to businesses operating within an impact zone. The law defines “small business” as an independently owned and operate small business with fewer than 250 full time employees.
P.L. 2022, c. 48 took effect on June 30, 2022. We would note that this bill was introduced on June 27, passed both the Senate and Assembly on June 29 and was signed by the Governor on June 30.
Contact: Lori Buckelew, Deputy Executive Director & Director of Government Affairs, lbuckelew@njlm.org, 609-695-3481, x112.
iii. College Credit for Serving as Poll Workers
A-3733/S-488 authorizes students attending institutions of higher education to earn credit towards graduation for serving as poll workers. P.L. 2022, c. 40 permits an institution of higher education to award and apply academic credit for each full shift of service a student serves as a poll worker. The student is also entitled to receive their pay as a poll worker and cannot be required to forego the pay as a condition of receiving the academic credit. The law took effect on June 30, 2022.
Contact: Lori Buckelew, Deputy Executive Director & Director of Government Affairs, lbuckelew@njlm.org, 609-695-3481, x112.
iv. Supermarkets and Grocery Stores in UEZs
A-4208/S-2791provides sales and use tax exemption for certain purchases made by all supermarkets and grocery stores located within urban enterprise zones or food desert communities. The law requires supermarkets and grocery stores located within an Urban Enterprise Zone (UEZ), but outside a food desert community, to receive an annual certification of eligibility from the Department of Community Affairs (DCA) to qualify for the unlimited sales and use tax exemption.
To qualify for the certificate, the supermarket or grocery store must demonstrate that: (1) not less than 30% of the employees hired by the supermarket or grocery store are comprised of persons who were unemployed for not less than three months or persons with a disability; or (2) not less than 35% of the employees hired by the supermarket or grocery store are residents of a municipality in which the urban enterprise zone has been established, and the supermarket or grocery store actively participated with one or more One Stop Career Centers in the recruitment of unemployed persons and persons with a disability, except that the One Stop Career Centers would also be required to provide written documentation to the DCA attesting to the actions of the supermarket or grocery store.
In addition, the law clarifies that the existing limitation for the sales and use tax exemption for businesses in an UEZ and for erecting structures or buildings on or improving, altering, or repairing certain real property of a qualified business, applies annually to the first $100,000 of annual qualifying purchases. P.L. 2022, c. 42 took effect on June 30, 2022.
Contact: Andrew LaFevre, Legislative Analyst,
alafevre@njlm.org, 609-695-3481, x116.
v. ARRIVE Together Pilot Program
The Senate Committee Substitute for S-722 codifies and expands the Alternative Response to Reduce Instances of Violence and Escalation (ARRIVE) Together Pilot Program and appropriates $2 million.
The program pairs a law enforcement officer with a certified mental health screener to respond together to 9-1-1 calls for behavioral health crises. The expanded program will provide accessible crisis intervention, mental health screening, or other support to individuals experiencing mental health crises who have contacted or are engaging with law enforcement.
With available funding, the Attorney General is required to select two municipalities in each of the northern, central, and southern regions of the state for participation in the pilot program expansion. The bill is effective in May, 2023.
Contact: Paul Penna, Senior Legislative Analyst, ppenna@njlm.org, 609-695-3481, x110.
vi. Tax Holiday for Back to School
A-1522/S-2914, establishes a “back-to-school” sales tax holiday during the 10-day period up to an including Labor Day. The tax holiday items include retail sales of computers with a sales price of less than $3,000, school computer supplies with a sales price of less than $1,000,school supplies, school art supplies, school instructional materials, and sport or recreation equipment. These items will be exempt from the State’s sales and use tax during the tax holiday. The Division of Taxation was given rulemaking authority. P.L. 2022, c. 21 took effect immediately.
Contact: Frank Marshall, Esq., Associate General Counsel,
fmarshall@njlm.org, 609-695-3481, x137.
d. Bills on the Governor’s Desk
As the legislature heads into summer break, there are 76 bills on the Governor Murphy’s desk for his consideration. The Governor has 45 days or until the next quorum day of the house of origin to take action, whichever is later. Please see our recent blog post for a summary of bills of municipal interest.
Contact: Lori Buckelew, Deputy Executive Director & Director of Government Affairs, lbuckelew@njlm.org, 609-695-3481, x112.
e. Daniel’s Law Online Portal Launching July 12
The New Jersey Department of Community Affairs and the Office of Information Privacy (OIP) announced this week that an online portal will launch on July 12 for all authorized public officials and public agencies to apply to have specific personal information redacted from certain records and internet postings. This is part of the state’s implementation of Daniel’s Law, which allows judges, police, their immediate family, and other covered individuals to have certain information redacted from published and public records. As a reminder, the requirement for records custodian to redact the information from public records does not take effect until January 13, 2023. For more information on Daniel’s Law please see our January 28 blog post.
Please copy Frank Marshall, fmarshall@njlm.org, on any comments submitted to NJDEP.
f. Uniform Construction Code Annual Report Deadline Approaching
The Department of Community Affairs sent a notice this week reminding state fiscal year municipalities that they must file their Uniform Construction Code (UCC) Annual Reports by August 10, 2022. UCC regulations NJAC 5:23-4.17 (b) require that municipalities file a report that accurately portrays the receipts and expenses of the code enforcement. The UCC Annual Report serves as a basis of any needed changes in the UCC fee ordinance and staffing needs for the next year.
Please log into the form site and complete the UCC Annual report and submit to the Department of Community Affairs no later than August 10, 2022.
Please note that login IDs are not maintained from year to year. If you used this site to submit last year's UCC Annual report, you must register as a new user and create a login ID for this year's submission. If you have questions or require assistance, please email the Department of Community Affairs Office of Regulatory Affairs at ora@dca.state.nj.us.
Contact: Paul Penna, Senior Legislative Analyst, ppenna@njlm.org, 609-695-3481, x110.
g. DEP and FEMA Release Draft Floodplain Administrator’s Guidebook
The New Jersey Department of Environmental Protection’s (NJDEP) Bureau of Flood Engineering along with the NJ National Flood Insurance Plan (NFIP) State Coordinator’s office announced the development of a draft Floodplain Administrator Guidebook. The goal of the Guidebook is to serve as a tool for ensuring all municipalities, regardless of size or capacity, have the ability to obtain clear and consistent technical assistance that can aid their community in enhancing resiliency.
The League is currently reviewing the draft Guidebook, and encourages floodplain administrators and other interested parties to do so as well. Comments on the draft Guidebook should be emailed to either Rebecca.Jones@dep.nj.gov and/or Kenya.Lovill@dep.nj.gov.
Please copy Frank Marshall, fmarshall@njlm.org, on any comments submitted to NJDEP.
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