As we approach the deadline to adopt the SFY2025 budget, the Assembly will be holding a voting session on Friday, June 28. In addition to considering the SFY2025 budget, the following bills of municipal interest will be considered:
- A-2623.The “Home Business Jobs Creation Act:” classifies certain home businesses as permitted accessory uses. The League opposes this bill.
This bill creates a loophole that allows home-based businesses, currently illegal under a municipality’s zoning law, to become legal and protected by overriding any inconsistent local ordinances, but then permits a municipality to adopt a later ordinance that could be the same as the original local ordinance that was overridden.
In addition, if a municipality presently prohibits by ordinance certain home occupations and such use is permitted by the legislation, upon readoption of the same ordinance, such use would be protected as a preexisting nonconforming use. In municipalities with no specific provision regarding home-based businesses or occupations, there is typically a provision in their ordinances that provides that no uses are permitted unless they are specifically permitted. In these cases, this legislation would work to permit all home-based businesses or occupations, allowing the municipality to adopt a subsequent ordinance to restrict or prohibit those uses. However, businesses currently illegal under the existing zoning law but legal according to this bill would benefit from preexisting nonconforming use status in the interim.
Additionally, this bill imposes restrictions on the number of invitees or guests that apply to home-based businesses or occupations. The effect of such a provision would be to restrict social gatherings; Scout meetings; birthday parties; and all sorts of events that presently occur in residential homes if the municipality attempted to limit the number of business invitees or guests who could frequent the business in the residential zone. These normal residential activities should not be bound by the same regulations as business interests.
This legislative concept of overriding local zoning rules for home-based businesses has existed in various forms and has been proposed multiple times over the past decade. The League has consistently opposed it.
The Senate counterpart, S-116, has not been scheduled for consideration.
- A-3772. Revises process for property tax lien holders to foreclose right to redeem property tax lien; allows property owners to protect remaining equity.
A-3772 would revise the “Tax Sale Law” and the “In Rem Tax Foreclosure Act” to bring those laws in compliance with the 2023 United States Supreme Court decision in Tyler v. Hennepin County, which led to concerns that New Jersey’s system concerning the sale and ultimate foreclosure of tax liens could violate the U.S. Constitution.
Municipalities rely on the revenue from tax sales to fill the revenue gap created when property owners fail to pay their property taxes. Without the ability to fill this gap, municipalities are put in a position where other measures need to be taken to ensure a balanced budget. This could include increasing property taxes or cutting critical services. Maintaining the viability of a tax sale certificate market is paramount.
The Senate counterpart to this bill, S-2334, has also advanced and is likely to be considered at the Senate’s voting session on Friday.
The League supports A-3772/S-2334 as we believe it represents a fair and balanced approach to resolving the issues created by Tyler and provides protection for property owners, all while ensuring the viability of the tax sale certificate market.
- A-4602. Concerns deadline for municipality to report certain non-residential development fee information.
A-4602 would extend the deadline for municipalities to report non-residential development fee information. The recently signed law overhauling the state’s affordable housing policy included various deadlines for different reporting requirements imposed on municipalities. One reporting requirement is for any municipality that is or has been authorized to retain and expend non-residential development fees to provide the Department of Community Affairs (DCA) with a detailed accounting of all such fees that have been collected and expended since the inception of the municipal authorization to collect those fees.
Under current law, municipalities were required to provide their first accounting to the DCA by June 18, 2024, then by February 15 of each year thereafter.
This legislation would extend this deadline by an additional 90 days and would apply retroactively to the enforceability of penalties for noncompliance. The League supports this commonsense legislation as it allows additional time for municipalities to provide the necessary reports.
The Senate counterpart, S-3385, was reported out of committee last week and is anticipated to be on the Senate board list for consideration at the Senate’s voting session on Friday.
- A-2196. Requires outdoor lighting fixtures installed or replaced by, or on behalf of State, or at projects receiving State funds, to meet certain criteria.
The bill would require outdoor lighting fixtures installed or replaced by, or on behalf of, a state agency or as part of a project that receives funds from a state agency, to meet certain criteria in order to reduce light pollution.
The League supports this bill as the reduction of light pollution is a laudable goal. As an additional benefit, to meet these standards, many of the lighting fixtures will need to be replaced with much more energy efficient technology such as LED.
The Senate counterpart for this bill, S-1610, has not had a committee hearing.
- A-2884. Provides for purchase of PFRS credit for service as class two special law enforcement officer.
The League supports this bill because the cost is borne by the individual seeking to purchase the time and serves as an incentive for municipalities seeking to hire officers that have some experience.
The Senate counterpart for this bill, S-2070, passed the Senate Budget and Appropriations Committee on Monday.
- A-3060. Permits designation of special event zones for traffic regulation purposes during certain large events.
The League supports this A-3060 as it provides municipalities with tools necessary to combat pop-up special events such as illegal car rallies. Under the bill municipalities would be able to establish special event zones around roads, parking lots and property near motor vehicle events with more than 25 people. Officials would be permitted to lower the existing speed limit and prohibit “exhibition driving” along with increasing penalties for speeding and burnouts, without obtaining prior approval of the Department of Transportation.
The Senate counterpart, S-1362, has not had a committee hearing.
- A-3930/S-2470. Permits service credit in Prosecutors Part of PERS for judicial clerk service; increases salary of Presiding Judge of Appellate Division and county prosecutor; permits retired judges to collect pension while serving as county prosecutor.
The League supports this measure as it has minimal impact on municipal contributions to the state pension system. Both this bill and the Senate counterpart, S-2470, are scheduled to be considered by each chamber.
- A-4534/S-3439. Revises definition of qualified assistance fund expenses under UEZ program to include costs of transportation infrastructure projects and related debt service.
This bill expands the use of “qualified assistance fund expense” in the UEZ program to include the improvement of public infrastructure in a commercial or transportation corridor and transportation infrastructure, including, but not limited to, payment of debt service related to the financing of a transportation project and the pledge of funds credited to assistance funds toward the repayment of any loan issued by State Transportation Infrastructure Bank or any government agency for transportation infrastructure projects.
The Senate counterpart, S-3439, is scheduled to be considered in today’s Senate Budget and Appropriations Committee.
The League supports this measure as it expands economic development in UEZ communities.