May 27, 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. Energy Tax Receipts Tax Relief Fund Restoration Update

Earlier this week, the League of Municipalities and the New Jersey Conference of Mayors sent a joint letter to Assemblyman Verrelli, Chair of the Assembly State and Local Government Committee, respectfully requesting that S-330 be re-assigned to the Assembly State and Local Government Committee and S-330 and A-3804 be posted for a hearing in a timely manner.

A-3804/S-330, which would restore distributions to municipalities from the Energy Tax Receipts Property Tax Municipal Distribution Program (ETR) over two years and require additional funding to be subtracted from the municipal property tax levy, is the first major step in addressing property tax affordability.

The League has long advocated the restoration of this funding. With news that the State’s fiscal picture is remarkably strong and expected revenue far exceeds projections, now is the time to restore Energy Tax Receipts. We suggest you to reach out to your Assembly representatives urging them to support A-3804. And if you have not done so already, please consider adopting the sample resolution calling for the swift passage and signing of S-330. Also, please use the 2021 ETR Impact Calculation individual sheet. Simply insert the annual amount of ETR funding your municipality received and the sheet will update to reflect the shortfall over time. We suggest you share this information with your residents, Assembly and Senate representatives, and Governor.

The time has come to restore to local budgets the millions in property tax relief that have been annually diverted to meet State needs.

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. Update on Legislation Undermining Local Planning and Zoning

The League is continuing to monitor and advocate against A-1294/S-2103. This legislation 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.

A-1294 and S-2103 have both already been reported out of committee. We are asking our members to review the legislation and consider adopting a resolution drafted by the League opposing this measure. We also encourage you to reach out to your legislative representatives to voice your concerns over this attempt to undermine local planning.

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

c. Russia-Belarus Vendor Certification Not Currently Required

P.L. 2022, c. 3 prohibits government dealings with businesses associated with Belarus and Russia. As part of the implementation of the law, the New Jersey Department of the Treasury is required to develop, based on credible information available to the public, a list of persons and entities engaging in prohibited activities in Russia or Belarus. Once the list is established, a contracting unit must, prior to contract award, require a vendor or contractor to certify that they are not identified on Treasury's Russia-Belarus list and review the Russia-Belarus list to determine whether the vendor or contractor appears on the list.

On Monday, the Division of Local Government Services issued a notice advising that the vendor/contractor certification requirement is not currently in effect for local governments and boards of education, and will not take effect until such time as Treasury finalizes the Russia-Belarus list. The Division of Local Government Services will provide further updates as needed. For more information on the new law please see the March 10 blog post.

Contact: Lori Buckelew, Deputy Executive Director & Director of Government Affairs,lbuckelew@njlm.org, 609-695-3481, x112.

d. Directives Issued Regarding Municipal Court Bench Warrants

On Wednesday, May 25, New Jersey’s Acting Attorney General, Matthew Platkin, issued Law Enforcement Directive NO. 2022-6. The Directive instructs law enforcement agencies, including municipal agencies, to no longer, in most instances, subject individuals encountered with municipal court bench warrants with bail amounts of $500 or less to custodial arrest. Instead, such individuals will now be given notice of a new court date and released at scene.

The Attorney General Directive was issued in conjunction with Directive #04-22 from the Administrative Office of the Courts (AOC), establishing a uniform, statewide process for the handling of individuals with outstanding municipal court bench warrants. AOC Directive #04-22 requires, effective immediately, all defendants, except those charged with a domestic violence offense, subject to a municipal court bench warrant with a bail amount set at $500 or less who are unable to post bail, or any portion of the bail to be either released on such bail that can be posted or released on their own recognizance.
When doing so the defendant must provide updated contact information, be issued a new date for the court appearance, and be advised of the consequences for failing to appear.

The AOC Directive also provides that all defendants arrested and placed in jail on municipal court bench warrants who are unable to promptly post bail are entitled to a bail review hearing within 48 hours, excluding weekends and holidays. The hearing shall be before the issuing municipal court, before a judge presiding over the Central Judicial Processing court, or before another judge authorized to review the bail amount.

Both the AG and AOC Directives should be reviewed with your chief of police, municipal court, and other relevant personnel.

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

II. Federal Issues

a. U.S. Treasury Issues Guidance for Federal Requirements for Single Audits

U.S. Treasury released the 2022 Compliance Supplement – 2 CFR Part 200 Appendix XI. Among the changes that the Office of Management and Budget (OMB) issued is the Coronavirus State and Local Fiscal Recovery Funds (SLFRF): Assistance Listing # 21.027

The Compliance Supplement provides a road map that auditors must follow when performing a Single Audit. With the large number of new federal COVID-19 programs awarded to states and municipalities, it can also be a useful tool to better understand the audit process and what the auditors will be testing.

Unless otherwise specified, municipalities that expend $750,000 or more in Federal financial assistance within their fiscal year are required to engage the services of an auditor to conduct Single Audits.

The 2022 Compliance Supplement includes an alternative option to the Single Audit for municipalities that would otherwise not be required to undergo an audit if it was not for the expenditures of SLFRF funds directly awarded by Treasury.

SLFRF recipients that expend $750,000 or more during their fiscal year in Federal awards and meet both criteria listed below have the option for their auditor or practitioner to follow the Alternative Compliance Examination Engagement guidance. The criteria are:

The recipient’s total SLFRF award received directly from Treasury is at or below $10 million; and
Other Federal award funds the recipient expended (not including their SLFRF award funds) are less than $750,000 during the recipient’s fiscal year.

We encourage you to share this information with your Chief Financial Officer and your Municipal Manager. Questions can be addressed to U.S. Treasury at SLFRF@treasury.gov.

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

b. 988 Suicide & Crisis Lifeline

On July 16, 2022, 9-8-8 will become the nationwide 3-digit dialing code for crisis and suicide prevention, replacing the 1-800 number currently used by the National Suicide Prevention Lifeline. When dialed, 9-8-8 connects the caller with the crisis/suicide prevention system. This will allow anyone in the U.S. to call 9-8-8 and get help designed specifically for someone dealing with a mental health crisis.

Recently the New Jersey Department of Human Services hosted a webinar with a PowerPoint presentation that you can review. Questions can be sent via email to 988Questions@dhs.nj.gov.

This direct connection to accessible and compassionate support and resources will be open to anyone experiencing emotional distress or those worried about a loved one. We encourage you to share this information with your Municipal Manager and Health Officer.

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

c. City Infrastructure Projects to Watch Survey

The League’s federal partner, the National League of Cities (NLC) has created a short survey to assess how local communities are planning infrastructure projects that could utilize funding from the $1.2 trillion in Bipartisan Infrastructure Law (BIL). As a reminder, the BIL invests in roads, transit, water, and broadband.

We encourage municipalities to complete the survey prior to its closing on June 2, 2022.

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

d. Available Federal Grants

Please read the League’s recent blog post regarding announcements and application instructions for various competitive federal grants that are available to municipalities. We encourage you to review these programs with your Municipal Manager, Public Safety Director, and other personnel as appropriate.

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

III. Also Of Interest

a. Lunch and Learn Briefing with Department of Community Affairs on the New Lead Based Paint Hazards and Associated Inspection Requirements

Register for free webinar with Kia King, Director of Policy & External Affairs for the Department of Community Affairs and Marie Daniels, Program Specialist 2, Regulatory Program, Code Development Unit, Division of Codes and Standards, as they provide a general overview of lead-based paint hazards and the associated requirements for municipalities under P.L. 2021, Chapter 182. The webinar will be held Friday, June 3, 2022, from 12:00 p.m. to 1:00 p.m. As a reminder, this new law takes effect on July 22, 2022.

b. New Jersey Sustainability Summit

Friday, June 24, 2022 at the Bell Works, Holmdel, New Jersey

The New Jersey Sustainability Summit is an annual one-day forum, drawing change-makers from across the political, private and public sectors. Participants will engage in thoughtful discussions, share best practices, hail the work that is currently being done in sustainability throughout New Jersey and identify areas for future regional collaboration. This year's event includes:

Educational Sessions in community energy planning, electric vehicles, resiliency, food waste, community health, food security, organic gardening, eliminating bias, economic development and more.
Sustainability Exhibit with businesses and organizations offering sustainable solutions for your municipality
Electric Vehicle Ride & Drive with electric heavy vehicles and a fleet showcase
Networking with hundreds of sustainability leaders from across New Jersey

Register and see more information on this event.