May 6, 2022

I. State Issues
II. Federal Issues
III. Also of Interest

Municipal Clerks: Please forward to your Mayor, Governing Body and Department Heads.

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I. State Issues

a. Senate Committee Set to Review Bill Preempting Municipal Zoning

On Monday, May 9, the Senate Community and Urban Affairs Committee is scheduled to review S-2103, a bill opposed by the League. S-2103 would authorize the conversion of certain office parks and retail centers to mixed-use developments regardless of municipal zoning regulations. Under the legislation a mixed-use development, that is those containing both non-residential and residential components, would be a permitted use, not requiring a variance, when the application seeks to convert an office park or retail center.

While the League is cognizant of the evolving nature of development trends within the state, we oppose S-2103 as it undermines the careful planning and consideration that has gone into municipal zoning. Further, the Municipal Land Use Law already provides a mechanism through variance approval that would allow for necessary zoning changes.

S-2103’s Assembly companion bill, A-1294, was approved by the Assembly Community Development and Affairs Committee on March 7. Since then the League has met with Assembly sponsors and other interested stakeholders to discuss possible amendments and other solutions. We are hopeful that these discussions will yield consensus legislation, but must remain opposed to both bills until appropriate amendments have been made.

We ask that you review S-2103/A-1294 and consider reaching out to your legislators to express concerns with this attempt to preempt local zoning.

Contact: Frank Marshall, Esq., Associate General Counsel, fmarshall@njlm.org, 609-695-3481, x137.

b. FY 2023 Budget Departmental Hearings Continue

This week, both the Senate Budget and Appropriations Committee and the Assembly Budget Committee heard testimony from several departments regarding FY2023 funding.

Please see our blog post for a deep dive into the hearings from the Department of Law and Public Safety, the Department of Transportation, and the Department of Labor and Workforce Development.

Contact: Andrew LaFevre, Legislative Analyst, alafevre@njlm.org, 609-695-3481, x116.

c. DCA Issues Local Finance Notice to Provides Guidance on Utility Relief Measures

On April 29, the Division of Local Government Services (DLGS) issued Local Finance Notice 2022-11, regarding the treatment of Residential Water, Sewer, & Electric Arrearages and Residential Ratepayer Assistance. While the moratorium of shutoffs for, or enforcement of, liens on unpaid water, sewer, and electric charges for residential customers expired on March 15, P.L. 2022, c. 4 extends the moratorium for those residents who applied for a state utility assistance program prior to June 15, 2022. Local Finance Notice 2022-11 supersedes and repeals LFN 2021-22 and LFN 2022-09. For a deep diver into LFN 2022-11, please see our blog post.

Contact: Andrew LaFevre, Legislative Analyst, alafevre@njlm.org, 609-695-3481, x116.

d. Senate Committee Hearing on Delayed Cannabis Sales Scheduled for May 12

The Senate Judiciary Committee will hold a public hearing on Thursday, May 12, at 11 a.m., to hear testimony from invited guests on issues concerning the implementation of recreational cannabis in New Jersey.

New Jersey voters approved adult-use cannabis in 2020 and the implementing legislation was enacted in February 2021. Since enactment, the Cannabis Regulatory Commission has adopted regulations and has begun accepting and reviewing license applications for cannabis operators, and as of May 21 had approved 13 Alternative Treatment Centers to begin selling to the recreational market as well.

The Senate Judiciary Committee hearing will be livestreamed on the Legislature’s website.

Contact: Frank Marshall, Esq., Associate General Counsel, fmarshall@njlm.org, 609-695-3481, x137.

II. Federal Issues

a. SCOTUS Free Speech Decision May Impact Municipalities

The Supreme Court of the United States (SCOTUS), in a unanimous decision, ruled that a local government violated the free speech rights of a citizen when the city refused a request to fly a Christian flag on a flagpole outside of City Hall.

The Court’s decision in Shurtleff v. City of Boston examined the city’s policy allowing third-parties to raise a flag on the city-owned flagpole. Finding that the policy lacked specific standards and oversight to constitute government speech, the Court determined that the city’s refusal to fly a Christian flag violated the Free Speech Clause of the First Amendment.

Local governments that allow third-parties to fly flags on government flagpoles and property should take note of this decision and review it with their municipal attorneys to ensure compliance. For more information please see the League’s recent blog post.

Contact: Frank Marshall, Esq., Associate General Counsel, fmarshall@njlm.org, 609-695-3481, x137.

b. League Hosted Webinar with US DOT

This past Tuesday (May 3), the League hosted a free Lunch and Learn briefing with Charles Small, Deputy Assistant Secretary, Intergovernmental Affairs Office of the Secretary, U.S. Department of Transportation; and Nikki McDavid, Chief of the Commercial Driver's License Division at the USDOT's Federal Motor Carrier Safety Administration.

They discussed municipal funding in the Bipartisan Infrastructure Law (BIL), and the new federal Commercial Drivers’ License rules. We encourage you to view the webinar, slides, upcoming available grant funding, and financing opportunities from the Build America Bureau.

Contact: Paul Penna, Senior Legislative Analyst, ppenna@njlm.org, 609-695-3481, x110.

c. Submit ARP Project & Expenditure Reports to DLGS

While the April 30 deadline for municipalities to submit a Project and Expenditure report to U.S. Treasury regarding usage of American Rescue Plan (ARP) State and Local Fiscal Recovery Funds (SLFRF) has passed, please remember to submit a copy of the report to the Division of Local Government Services (DLGS).

As a reminder, this past March DLGS issued Local Finance Notice (LFN) 2022-08 outlining instructions for submitting U.S. Treasury Reports to the Department of Community Affairs pursuant to Executive Order 267. Please do not overlook this required step.

All Project and Expenditure Reports filed with U.S. Treasury, along with any Interim Reports and Recovery Plan and Performance Reports required from certain municipalities, must be submitted in PDF format to LFRF.Reporting@dca.nj.gov. The subject line must include the name of the municipality and assigned municode.

For more information, please read the League’s blog post on the subject and view the federal resource page.

If your municipality continues to have technical issues filing the Project & Expenditure report with the U.S. Treasury, please reach out to Paul Penna, Senior Legislative Analyst, at the contact information below.

Contact: Paul Penna, Senior Legislative Analyst, ppenna@njlm.org, 609-695-3481, x110.

d. National Park Service Underrepresented Community Grant Program Opportunity

The National Park Service’s (NPS) Underrepresented Community Grant Program (URC) announced a grant opportunity intended to diversify the nominations submitted to the National Register of Historic Places to include communities that are currently underrepresented.

URC grants are funded by the Historic Preservation Fund (HPF), and are administered by the NPS. Projects include surveys and nominations of historic sites associated with communities underrepresented in the National Register. Every URC project results in at least one new or amended nomination to the National Register of Historic Places.

There are 48 certified local governments in New Jersey eligible to apply for the grant, which has a deadline of August 10, 2022.

Contact: Paul Penna, Senior Legislative Analyst, ppenna@njlm.org, 609-695-3481, x110.

III. Also of Interest

a. DEP Hosting Public Information Session on Natural Climate Solutions Grant Program

On May 19 at 10 a.m., the NJ Department of Environmental Protection (DEP) will be hosting a public information session on the recently announced Natural Climate Solutions Grant Program.

The information session will review applicant eligibility, project types, and the application process. The $15 million grant program is open to municipalities, counties, state agencies, and school boards, as well as others.

Grant awards will range from $250,000 to $5 million for projects designed to reduce greenhouse gas emissions by increasing carbon storage capacity in biomass and soils, will reduce methane and nitrous oxide emissions caused by increasing salinity of coastal water or changing land use, and will reduce carbon dioxide emissions by preventing soil loss.

Those interested should register for the information session. For more information on the grant program, please see the DEP’s dedicated webpage.