A 4687

[Second Reprint]
ASSEMBLY, No. 4687
STATE OF NEW JERSEY
222nd LEGISLATURE
�
INTRODUCED MARCH 16, 2026
Sponsored by:
Assemblyman� DAVID BAILEY, JR.
District 3 (Cumberland, Gloucester and Salem)
Assemblyman� ROBERT J. KARABINCHAK
District 18 (Middlesex)
Senator� JOHN J. BURZICHELLI
District 3 (Cumberland, Gloucester and Salem)
Senator� LATHAM TIVER
District 8 (Atlantic and Burlington)
Co-Sponsored by:
Assemblymen Stanley, Sampson, Senators Amato, Timberlake
and McKnight
SYNOPSIS
���� Concerns local government financing and acquisition
of fire fighting apparatus and equipment.
CURRENT VERSION OF TEXT
���� As amended by the Senate on June 30, 2026.
��
An Act concerning 2[leasing
1and
lease-purchasing1 terms] financing for
acquisition2 of
certain fire fighting apparatus and equipment 2,2
1[,]
and1 amending 2[N.J.S.40A:2-22
1[,]1
and 1[supplementing
chapter 2 of Title 40A of the New Jersey Statutes] P.L.1981,
c.1881] various parts of
statutory law2.
���� Be It
Enacted by the Senate and General Assembly of
the State of New Jersey:
���� 2[1. N.J.S.40A:2-22
is amended to read as follows:
���� 40A:2-22.� The governing body
of the local unit shall determine the period of usefulness of any purpose
according to its reasonable life computed from the date of the bonds, which
period shall not be greater than the following:
���� a.��� Buildings and
structures.
���� 1.��� Bridges, including
retaining walls and approaches, or permanent structures of brick, stone,
concrete or metal, or similar durable construction, 30 years.
���� 2.��� Buildings, including the
original furnishings and equipment therefor:
���� Class A:���� A building, of
which all walls, floors, partitions, stairs and roof are wholly of
incombustible material, except the window frames, doors, top flooring and
wooden handrails on the stairs, 40 years;
���� Class B:���� A building, the
outer walls of which are wholly of incombustible material, except the window
frames and doors, 30 years;
���� Class C:���� A building which
does not meet the requirements of Class A or Class B, 20 years.
���� 3.��� Buildings or structures
acquired substantially reconstructed or additions thereto, one-half the period
fixed in this subsection for such buildings or structures.
���� 4.��� Additional furnishings,
five years.
���� b.��� Marine improvements.
���� 1.��� Harbor improvements,
docks or marine terminals, 40 years.
���� 2.��� Dikes, bulkheads,
jetties or similar devices of stone, concrete or metal, 15 years; of wood or
partly of wood, 10 years.�
���� c.��� Additional equipment and
machinery.
���� 1.��� Additional or
replacement equipment and machinery, 15 years.
���� 2.��� Voting machines, 15
years.
���� 3.��� Information technology
and telecommunications equipment, seven years, except that for items with a
unit cost of less than $5,000, five years.
���� d.��� Real property.
���� 1.��� Acquisition for any
public purpose of lands or riparian rights, or both, and the original dredging,
grading, draining or planting thereof, 40 years.
���� 2.��� Improvement of airport,
cemetery, golf course, park, playground, 15 years.�
���� 3.��� Stadia of concrete or
other incombustible materials, 20 years.
���� e.��� Streets or
thoroughfares.
���� 1.��� Elimination of grade
crossings, 35 years.
���� 2.��� Streets or roads:
���� Class A:���� Rigid pavement.�
A pavement of not less than eight inches of cement concrete or a six-inch
cement concrete base with not less than three-inch bituminous concrete surface
course, or equivalent wearing surface, 20 years.
���� Flexible pavement.� A pavement
not less than 10 inches in depth consisting of five-inch macadam base,
three-inch modified penetration macadam and three-inch bituminous concrete
surface course or other pavements of equivalent strength, in accordance with the
findings of the American Association of State Highway Officials (AASHO) Road
Test, 20 years.
���� Class B:���� Mixed
surface-treated road.� An eight-inch surface of gravel, stone or other selected
material under partial control mixed with cement or lime and fly ash, six
inches in compacted thickness with bituminous surface treatment and cover, 10
years.
���� Bituminous penetration road.�
A five-inch gravel or stone base course and a three-inch course bound with a
bituminous or equivalent binder, 10 years.
���� Class C:���� Mixed bituminous
road.� An eight-inch surface of gravel, stone, or other selected material under
partial control mixed with bituminous material one inch or more in compacted
thickness, five years.
���� Penetration macadam road.� A
road of sand, gravel or water-bound macadam, or surfacing with penetration
macadam, five years.
���� 3.��� Sidewalks, curbs and
gutters of stone, concrete or brick, 10 years.
���� The period of usefulness in
this subsection shall apply to construction and reconstruction of streets and
thoroughfares.
���� f.���� Utilities and municipal
systems.
���� 1.��� Sewerage system, whether
sanitary or storm water, water supply or distribution system, 40 years.
���� 2.��� Electric light, power or
gas systems, garbage, refuse or ashes incinerator or disposal plant, 25 years.
���� 3.��� Communication and signal
systems, 10 years.
���� 4.��� Service connections to
publicly-owned gas, water or sewerage systems from the service main in the
street to the curb or property lines where not part of original installation,
five years.
���� 5.��� Service connections to
publicly-owned water systems, from the distribution main onto privately-owned
real property and into the privately-owned structure, for the purpose of
replacing residential, commercial, and institutional lead service lines, 30
years.
���� g.��� Vehicles and apparatus.
���� 1.��� Fire engines, apparatus
and equipment, when purchased new 1,
lease-purchased,1
or leased, but not fire equipment purchased separately, 20 years.
���� 2.��� Automotive vehicles,
including original apparatus and equipment, when purchased new, five years for
vehicles with a gross vehicle weight rating (GVWR) below 15,000 pounds, and 10
years for vehicles with a GVWR in excess of 15,000 pounds.
���� 3.��� Major repairs,
reconditioning or overhaul of fire engines and apparatus, ambulances, rescue
vehicles, similar public safety vehicles, public works vehicles with a GVWR in
excess of 15,000 pounds, and heavy construction equipment with a weight in
excess of 10,000 pounds, which may reasonably be expected to extend for at
least five years the period of usefulness thereof, five years.
���� 4.��� Alternative fuel
automotive vehicles, including but not limited to, electric vehicles, plug-in
hybrid vehicles, hydrogen fuel cell vehicles, natural gas vehicles, and propane
vehicles, when purchased new, five years.
���� h.��� The closure of a
sanitary landfill facility utilized, owned or operated by a county or
municipality, 15 years; provided that the closure has been approved by the
Board of Public Utilities and the Department of Environmental Protection.� For
the purposes of this subsection "closure" means all activities
associated with the design, purchase or construction of all measures required
by the Department of Environmental Protection, pursuant to law, in order to
prevent, minimize or monitor pollution or health hazards resulting from
sanitary landfill facilities subsequent to the termination of operations at any
portion thereof, including, but not necessarily limited to, the costs of the
placement of earthen or vegetative cover, and the installation of methane gas vents
or monitors and leachate monitoring wells or collection systems at the site of
any sanitary landfill facility.
���� i.���� (Deleted by amendment,
P.L.2007, c.62)
���� j.���� The prefunding of a
claims account for environmental liability claims by an environmental
impairment liability insurance pool pursuant to P.L.1993, c.269 (C.40A:10-38.1
et al.), 20 years.
���� k.��� As used in this section:
���� "Alternative fuel
automotive vehicle" means any passenger car, station wagon, or other motor
vehicle that is not solely propelled by gasoline or diesel fuel.
���� "Electric vehicle"
means any passenger car, station wagon, or other motor vehicle that is
propelled solely by an electric motor or energy storage device.
���� "Gross vehicle weight
rating" or "GVWR" means the value specified by the manufacturer
as the loaded weight of a single or combination (articulated) vehicle.� The
GVWR of a combination (articulated) vehicle, commonly referred to as the
"gross combination weight rating" or "GCWR," is the GVWR of
the power unit plus the GVWR of the towed unit or units.
���� "Hydrogen fuel cell
vehicle" means any passenger car, station wagon, or other motor vehicle
that is propelled by power derived from one or more cells that convert chemical
energy directly into electricity by combining oxygen with hydrogen fuel.
���� "Plug-in hybrid
vehicle" means any passenger car, station wagon, or other motor vehicle
that can be charged from a source of electricity external to the vehicle
through an electric plug, but which is not solely powered by electricity.
(cf: P.L.2023, c.333, s.1)]2
���� 2[12.] 1.2� Section
1 of P.L.1981, c.188 (C.40A:14-86.1) is amended to read as follows:
���� The board of commissioners of
a fire district, following the authorization by voters of the issuance of bonds
pursuant to N.J.S.40A:14-86, may by resolution borrow money and issue
negotiable notes in anticipation of the bond issue.� Any note shall be designated
a "bond anticipation note" and shall contain a recital that it is
issued in anticipation of the issuance of bonds. Such notes may be issued for a
period not to exceed [1] one
year, and may be renewed from time to time not to exceed [1] one
year;� but all such notes, including renewals, shall mature and be paid not
later than the [third] 10th
anniversary of the date of the original notes;� provided, however, that no
notes shall be renewed beyond the first anniversary date of the original notes
unless an amount of such notes, at least equal to the first legally payable
installment of the bonds in anticipation of which the notes are issued is paid
and retired on or before the second anniversary date, and if the notes are
renewed beyond the second anniversary date of the original notes, a like amount
is paid or retired on or before the [third] 10th
anniversary date from funds other than the proceeds of obligations;� except
that the notes shall mature and be paid not later than the first day of the
fifth month following the close of the [third] 10th
fiscal year next following the date of the original notes, provided that, in
addition to amounts paid and retired pursuant to this section, an amount of
such notes equal to not� less than the first legally payable installment of the
bonds in anticipation of which the notes are issued has been paid and retired
not later than the end of the [third] 10th
fiscal year from funds other than the proceeds of obligations.
���� The period of usefulness as
defined in N.J.S.40A:2-22 of any purpose for which bonds are issued shall
include the period during which notes issued in anticipation of such bonds are
outstanding, including all renewals thereof.
���� Funds derived from the
issuance of fire district bonds may be used to redeem notes issued in
anticipation of the bond issue.1
(cf: P.L.1981, c.188, s.1)
���� 22.�� Section
24 of P.L.1983, c.313 (C.40A:5A-24) is amended to read as follows:
���� a.��� Notwithstanding
any other law to the contrary, any authority, in anticipation of the issuance
of bonds, may borrow money and issue temporary obligations if the bond
resolution so provides.� A temporary obligation shall be designated "bond
anticipation note" or "project note" and shall contain a recital
that it is issued in anticipation of the issuance of bonds.� [At] For all
authorities except fire districts, any time within three years of the date
of the original note issue, the authority may renew the notes, provided that a
form prescribed by the director listing the terms and conditions of the
renewals is submitted to the director and the director fails to disapprove the
renewal in writing within 10 days of the date of its receipt.� If the renewal
is disapproved by the director, the Local Finance Board shall hold a hearing as
set forth in section 7 of P.L.1983, c. 313 (C. 40A:5A-7).� Any application for
a renewal after three years from the date of the original issue shall be
submitted and subject to the approval and conditions of the Local Finance
Board.
���� b.��� The issuance of
temporary obligations by a fire district shall be pursuant to section 1 of
P.L.1981, c.188 (C. 40A:14-86.1). The terms and conditions of note renewals
shall be submitted to the director for approval following the procedure set
forth in subsection a. of this section.� If the renewal is disapproved by the
director, the Local Finance Board shall hold a hearing as set forth in section
7 of P.L.1983, c.313 (C. 40A:5A-7).2
(cf: P.L.1987, c.319, s.11)
���� 23.�� Section
15 of P.L.1971, c.198 (C.40A:11-15) is amended to read as follows:
���� 15.� All contracts for the
provision or performance of goods or services shall be awarded for a period not
to exceed 24 consecutive months, except that contracts for professional
services pursuant to subparagraph (i) of paragraph (a) of subsection (1) of
section 5 of P.L.1971, c.198 (C.40A:11-5) shall be awarded for a period not to
exceed 12 consecutive months.� Contracts may be awarded for longer periods of
time as follows:
���� (1)� Supplying of:
���� (a)�� (Deleted by amendment,
P.L.1996, c.113[.])
���� (b)� (Deleted by amendment,
P.L.1996, c.113[.])
���� (c)�� Thermal energy produced
by a cogeneration facility, for use for heating or air conditioning or both,
for any term not exceeding 40 years, when the contract is approved by the Board
of Public Utilities.
���� For the purposes of this
paragraph, "cogeneration" means the simultaneous production in one
facility of electric power and other forms of useful energy such as heating or
process steam;
���� (2)� (Deleted by amendment,
P.L.1977, c.53[.])
���� (3)� The collection and
disposal of municipal solid waste, the collection and disposition of recyclable
material, or the disposal of sewage sludge, for any term not exceeding in the
aggregate, five years;
���� (4)� The collection and
recycling of methane gas from a sanitary landfill facility, for any term not
exceeding 25 years, when the contract is in conformance with a district solid
waste management plan approved pursuant to P.L.1970, c.39 (C.13:1E-1 et seq.),
and with the approval of the Division of Local Government Services in the
Department of Community Affairs and the Department of Environmental Protection.
The contracting unit shall award the contract to the highest responsible
bidder, notwithstanding that the contract price may be in excess of the amount
of any necessarily related administrative expenses; except that if the contract
requires the contracting unit to expend funds only, the contracting unit shall
award the contract to the lowest responsible bidder.� The approval by the
Division of Local Government Services of public bidding requirements shall not
be required for those contracts exempted therefrom pursuant to section 5 of
P.L.1971, c.198 (C.40A:11-5);
���� (5)� Data processing service,
for any term of not more than seven years;
���� (6)� Insurance, including the
purchase of insurance coverages, insurance consulting or administrative
services, claims administration services, including participation in a joint
self-insurance fund, risk management program or related services provided by a
contracting unit insurance group, or participation in an insurance fund
established by a local unit pursuant to N.J.S.40A:10-6, or a joint insurance
fund established pursuant to P.L.1983, c.372 (C.40A:10-36 et seq.), for any
term of not more than three years;
���� (7)� Leasing or servicing of
(a) automobiles, motor vehicles, machinery, and equipment of every nature and
kind, except for new fire engines and apparatus, for a period not to
exceed five years, or (b) machinery and equipment used in the generation of
electricity by a municipal shared services energy authority established
pursuant to section 4 of P.L.2015, c.129 (C.40A:66-4), or a contracting unit
engaged in the generation of electricity, for a period not to exceed 20 years,
or (c) new fire engines and apparatus, including fire equipment together with
new fire engines or apparatus, for a period not to exceed 20 years;
provided, however, a contract shall be awarded only subject to and in
accordance with the rules and regulations promulgated by the Director of the
Division of Local Government Services in the Department of Community Affairs;
���� (8)� The supplying of any
product or the rendering of any service by a company providing voice, data,
transmission, or switching services for a term not exceeding five years;
���� (9)� Any single project for
the construction, reconstruction, or rehabilitation of any public building,
structure, or facility, or any public works project, including the retention of
the services of any architect or engineer in connection therewith, for the length
of time authorized and necessary for the completion of the actual construction;
���� (10) The providing of food
services for any term not exceeding three years;
���� (11)  On-site inspections and
plan review services undertaken by private agencies pursuant to the "State
Uniform Construction Code Act," P.L.1975, c.217 (C.52:27D-119 et seq.) for
any term of not more than three years;
���� (12)� (Deleted by amendment,
P.L.2009, c.4)[.]
���� (13)� (Deleted by amendment,
P.L.1999, c.440[.])
���� (14) � (Deleted by amendment,
P.L.1999, c.440[.])
���� (15)� Leasing of motor
vehicles, machinery, and other equipment primarily used to fight fires, for a
term not to exceed [ten] 20
years, when the contract includes an option to purchase, subject to and in
accordance with rules and regulations promulgated by the Director of the
Division of Local Government Services in the Department of Community Affairs;
���� (16)� The provision of water
supply services or the designing, financing, construction, operation, or
maintenance, or any combination thereof, of a water supply facility, or any
component part or parts thereof, including a water filtration system, for a period
not to exceed 40 years, when the contract for these services is approved by the
Division of Local Government Services in the Department of Community Affairs,
the Board of Public Utilities, and the Department of Environmental Protection
pursuant to P.L.1985, c.37 (C.58:26-1 et al.), except that no approvals shall
be required for those contracts otherwise exempted pursuant to subsection (30),
(31), (34), (35) or (43) of this section.
���� For the purposes of this
subsection, "water supply services" means any service provided by a
water supply facility; "water filtration system" means any equipment,
plants, structures, machinery, apparatus, or land, or any combination thereof,
acquired, used, constructed, rehabilitated, or operated for the collection,
impoundment, storage, improvement, filtration, or other treatment of drinking
water for the purposes of purifying and enhancing water quality and insuring
its potability prior to the distribution of the drinking water to the general
public for human consumption, including plants and works, and other personal
property and appurtenances necessary for their use or operation; and
"water supply facility" means and refers to the real property and the
plants, structures, or interconnections between existing water supply
facilities, machinery and equipment and other property, real, personal, and
mixed, acquired, constructed, or operated, or to be acquired, constructed, or
operated, in whole or in part by or on behalf of a political subdivision of the
State or any agency thereof, for the purpose of augmenting the natural water
resources of the State and making available an increased supply of water for
all uses, or of conserving existing water resources, and any and all
appurtenances necessary, useful, or convenient for the collecting, impounding,
storing, improving, treating, filtering, conserving, or transmitting of water
and for the preservation and protection of these resources and facilities and
providing for the conservation and development of future water supply
resources;
���� (17) � The provision of
resource recovery services by a qualified vendor, the disposal of the solid
waste delivered for disposal which cannot be processed by a resource recovery
facility or the residual ash generated at a resource recovery facility,
including hazardous waste and recovered metals and other materials for reuse,
or the design, financing, construction, operation, or maintenance of a resource
recovery facility for a period not to exceed 40 years when the contract is
approved by the Division of Local Government Services in the Department of
Community Affairs, and the Department of Environmental Protection pursuant to
P.L.1985, c.38 (C.13:1E-136 et al.); and when the resource recovery facility is
in conformance with a district solid waste management plan approved pursuant to
P.L.1970, c.39 (C.13:1E-1 et seq.).
���� For the purposes of this
subsection, "resource recovery facility" means a solid waste facility
constructed and operated for the incineration of solid waste for energy
production and the recovery of metals and other materials for reuse, or a mechanized
composting facility, or any other facility constructed or operated for the
collection, separation, recycling, and recovery of metals, glass, paper, and
other materials for reuse or for energy production; and "residual
ash" means the bottom ash, fly ash, or any combination thereof, resulting
from the combustion of solid waste at a resource recovery facility;
���� (18) � The sale of electricity
or thermal energy, or both, produced by a resource recovery facility for a
period not to exceed 40 years when the contract is approved by the Board of
Public Utilities, and when the resource recovery facility is in conformance with
a district solid waste management plan approved pursuant to P.L.1970, c.39
(C.13:1E-1 et seq.).
���� For the purposes of this
subsection, "resource recovery facility" means a solid waste facility
constructed and operated for the incineration of solid waste for energy
production and the recovery of metals and other materials for reuse, or a mechanized
composting facility, or any other facility constructed or operated for the
collection, separation, recycling, and recovery of metals, glass, paper, and
other materials for reuse or for energy production;
���� (19) � The provision of
wastewater treatment services or the designing, financing, construction,
operation, or maintenance, or any combination thereof, of a wastewater
treatment system, or any component part or parts thereof, for a period not to
exceed 40 years, when the contract for these services is approved by the
Division of Local Government Services in the Department of Community Affairs
and the Department of Environmental Protection pursuant to P.L.1985, c.72
(C.58:27-1 et al.), except that no approvals shall be required for those
contracts otherwise exempted pursuant to subsection (36) or (43) of this
section.
���� For the purposes of this
subsection, "wastewater treatment services" means any services
provided by a wastewater treatment system; and "wastewater treatment
system" means equipment, plants, structures, machinery, apparatus, or
land, or any combination thereof, acquired, used, constructed, or operated for
the storage, collection, reduction, recycling, reclamation, disposal,
separation, or other treatment of wastewater or sewage sludge, or for the final
disposal of residues resulting from the treatment of wastewater, including, but
not limited to, pumping and ventilating stations, facilities, plants and works,
connections, outfall sewers, interceptors, trunk lines, and other personal
property and appurtenances necessary for their operation;
���� (20) � The supplying of goods
or services for the purpose of lighting public streets, for a term not to
exceed five years;
���� (21) � The provision of
emergency medical services for a term not to exceed five years;
���� (22) � Towing and storage
contracts, awarded pursuant to paragraph u. of subsection (1) of section 5 of
P.L.1971, c.198 (C.40A:11-5) for any term not exceeding three years;
���� (23) � Fuel for the purpose of
generating electricity for a term not to exceed eight years;
���� (24) � The purchase of
electricity or administrative or dispatching services related to the
transmission of electricity, from a supplier of electricity subject to the
jurisdiction of a federal regulatory agency, from a qualifying small power
producing facility or qualifying cogeneration facility, as defined by 16 U.S.C.
s.796, or from any supplier of electricity within any regional transmission
organization or independent system operator or from an organization or operator
or their successors, by a contracting unit engaged in the generation of
electricity for retail sale, as of May 24, 1991, for a term not to exceed 40
years; or by a contracting unit engaged solely in the distribution of
electricity for retail sale for a term not to exceed ten years, except that a
contract with a contracting unit, engaged solely in the distribution of
electricity for retail sale, in excess of ten years, shall require the written
approval of the Director of the Division of Local Government Services.� If the
director fails to respond in writing to the contracting unit within 10 business
days, the contract shall be deemed approved;
���� (25)� Basic life support
services, for a period not to exceed five years.
���� For the purposes of this
subsection, "basic life support" means a basic level of prehospital
care, which includes but need not be limited to patient stabilization, airway
clearance, cardiopulmonary resuscitation, hemorrhage control, initial wound
care, and fracture stabilization;
���� (26) � (Deleted by amendment,
P.L.1999, c.440[.])
���� (27)� The provision of
transportation services to an elderly person, an individual with a disability,
or an indigent person for any term of not more than three years.
���� For the purposes of this
subsection, "elderly person" means a person who is 60 years of age or
older.� "Individual with a disability" means a person of any age who,
by reason of illness, injury, age, congenital malfunction, or other permanent
or temporary incapacity or disability, is unable, without special facilities or
special planning or design to utilize mass transportation facilities and
services as effectively as persons who are not so affected.� "Indigent
person " means a person of any age whose income does not exceed 100
percent of the poverty line, adjusted for family size, established and adjusted
under section 2 of the "Community Services Block Grant Act," (42
U.S.C. s.9902);
���� (28) � The supplying of liquid
oxygen or other chemicals, for a term not to exceed five years, when the
contract includes the installation of tanks or other storage facilities by the
supplier, on or near the premises of the contracting unit;
���� (29) � The performance of
patient care services by contracted medical staff at county hospitals,
correction facilities, and long term care facilities, for any term of not more
than three years;
���� (30) � The acquisition of an
equitable interest in a water supply facility pursuant to section 2 of
P.L.1993, c.381 (C.58:28-2), or a contract entered into pursuant to the
"County and Municipal Water Supply Act," N.J.S.40A:31-1 et seq., if
the contract is entered into no later than January 7, 1995, for any term of not
more than [forty] 40
years;
���� (31) � The provision of water
supply services or the financing, construction, operation, or maintenance or
any combination thereof, of a water supply facility or any component part or
parts thereof, by a partnership or copartnership established pursuant to a contract
authorized under section 2 of P.L.1993, c.381 (C.58:28-2), for a period not to
exceed 40 years;
���� (32) � Laundry service and the
rental, supply, and cleaning of uniforms for any term of not more than three
years;
���� (33)� The supplying of any
product or the rendering of any service, including consulting services, by a
cemetery management company for the maintenance and preservation of a municipal
cemetery operating pursuant to the "New Jersey Cemetery Act, 2003,"
P.L.2003, c.261 (C.45:27-1 et seq.), for a term not exceeding 15 years;
���� (34) � A contract between a
public entity and a private firm pursuant to P.L.1995, c.101 (C.58:26-19 et
al.) for the provision of water supply services may be entered into for any
term which, when all optional extension periods are added, may not exceed 40 years;
���� (35)� A contract for the
purchase of a supply of water from a public utility company subject to the
jurisdiction of the Board of Public Utilities in accordance with tariffs and
schedules of charges made, charged or exacted or contracts filed with the Board
of Public Utilities, for any term of not more than 40 years;
���� (36)� A contract between a
public entity and a private firm or public authority pursuant to P.L.1995,
c.216 (C.58:27-19 et al.) for the provision of wastewater treatment services
may be entered into for any term of not more than 40 years, including all optional
extension periods;
���� (37)� The operation and
management of a facility under a license issued or permit approved by the
Department of Environmental Protection, including a wastewater treatment
system, a stormwater management system, or a water supply or distribution
facility, as the case may be, for any term of not more than [ten] 10
years.
���� For the purposes of this
subsection, "wastewater treatment system" refers to facilities
operated or maintained for the storage, collection, reduction, disposal, or
other treatment of wastewater or sewage sludge, remediation of groundwater
contamination, stormwater runoff, or the final disposal of residues resulting
from the treatment of wastewater; "stormwater management system"
means the same as that term is defined in section 3 of P.L.2019, c.42
(C.40A:26B-3); and "water supply or distribution facility" refers to
facilities operated or maintained for augmenting the natural water resources of
the State, increasing the supply of water, conserving existing water resources,
or distributing water to users;
���� (38)� Municipal solid waste
collection from facilities owned by a contracting unit, for any term of not
more than three years;
���� (39) � Fuel for heating
purposes, for any term of not more than three years;
���� (40) � Fuel or oil for use in
motor vehicles for any term of not more than three years;
���� (41) � Plowing and removal of
snow and ice for any term of not more than three years;
���� (42)� Purchases made under a
contract awarded by the Director of the Division of Purchase and Property in
the Department of the Treasury for use by counties, municipalities, or other
contracting units pursuant to section 3 of P.L.1969, c.104 (C.52:25-16.1), for
a term not to exceed the term of that contract;
���� (43) � A contract between the
governing body of a city of the first class and a duly incorporated nonprofit
association for the provision of water supply services as defined in subsection
(16) of this section, or wastewater treatment services as defined in subsection
(19) of this section, may be entered into for a period not to exceed 40 years;
���� (44)� The purchase of
electricity generated through Class I renewable energy or from a power
production facility that is fueled by methane gas extracted from a landfill in
the county of the contacting unit for any term not exceeding 25 years;
���� (45) � The provision or
performance of goods or services for the purpose of producing Class I renewable
energy or Class II renewable energy, as those terms are defined in section 3 of
P.L.1999, c.23 (C.48:3-51), at, or adjacent to, buildings owned by, or operations
conducted by, the contracting unit, the entire price of which is to be
established as a percentage of the resultant savings in energy costs, for a
term not to exceed 15 years; provided, however, that a contract shall be
entered into only subject to and in accordance with guidelines promulgated by
the Board of Public Utilities establishing a methodology for computing energy
cost savings and energy generation costs;
���� (46)� A power supply contract,
as defined pursuant to section 3 of P.L.2015, c.129 (C.40A:66-3), between a
member municipality as defined pursuant to section 3 of P.L.2015, c.129
(C.40A:66-3), and the municipal shared services energy authority established
pursuant to the provisions of P.L.2015, c.129 (C.40A:66-1 et al.) to meet the
electric power needs of its members, for the lease, operation, or management of
electric generation within a member municipality's corporate limits and
franchise area or the purchase of electricity, or the purchase of fuel for
generating units for a term not to exceed 40 years;
���� (47)� A contract entered into
pursuant to paragraph (2) of subsection a. of section 6 of P.L.2006, c.46
(C.30:9-23.20) between a county hospital authority and a manager for the
management, operation, and maintenance of a hospital owned by the authority or
the county for a term not to exceed 20 years, provided, however, that a
contract entered into pursuant to paragraph (2) of subsection a. of section 6
of P.L.2006, c.46 (C.30:9-23.20) may be renewed for two additional periods, not
to exceed five years each; and
���� (48)� (a)� A lease agreement
that provides for the use, lease, lease-back, acquisition, operation, or
maintenance of ferry boats and related facilities and services, for a period
not to exceed 20 years, except as provided by paragraph (b) of this subsection.�
For the purposes of this subsection, "related facilities and
services" includes, but is not limited to, docks and terminals, parking
facilities, intermodal facilities, ingress and egress to the parking and
terminal facilities, and the provision of goods and services to the public,
provided that a contract for the provision or performance of such goods or
services is related to ferry services and requires:
���� (1)� a total capital
expenditure exceeding $300,000, as certified by the chief financial officer of
the contracting unit, including but not limited to capital expenditures made by
the lessee; or
���� (2)� a capital improvement
that has a life expectancy upon completion exceeding 20 years, as certified by
the chief financial officer of the contracting unit.
���� (b)� A lease agreement for a
capital improvement under subparagraph (2) of paragraph (a) of this subsection
may be awarded for a period not to exceed 50 years.
���� (c)�� Each worker employed in
a construction project under a contract executed pursuant to this subsection
shall be paid not less than the prevailing wage rate for the worker's craft or
trade as determined by the Commissioner of Labor and Workforce Development
pursuant to P.L.1963, c.150 (C.34:11-56.25 et seq.).
���� Any contract for services
other than professional services, the statutory length of which contract is for
three years or less, may include provisions for no more than one two-year, or
two one-year, extensions, subject to the following limitations: a. The contract
shall be awarded by resolution of the governing body upon a finding by the
governing body that the services are being performed in an effective and
efficient manner; b. No contract shall be extended so that it runs for more
than a total of five consecutive years; c. Any price change included as part of
an extension shall be based upon the price of the original contract as
cumulatively adjusted pursuant to any previous adjustment or extension and
shall not exceed the change in the index rate for the 12 months preceding the
most recent quarterly calculation available at the time the contract is
renewed; and d. The terms and conditions of the contract remain substantially
the same.
���� All multiyear leases and
contracts entered into pursuant to this section, including any two-year or
one-year extensions, except contracts involving the supplying of electricity
for the purpose of lighting public streets and contracts for thermal energy authorized
pursuant to subsection (1) above, construction contracts authorized pursuant to
subsection (9) above, contracts for the provision or performance of goods or
services or the supplying of equipment to promote energy conservation through
the production of Class I renewable energy or Class II renewable energy
authorized pursuant to subsection (45) above, contracts for water supply
services or for a water supply facility, or any component part or parts thereof
authorized pursuant to subsection (16), (30), (31), (34), (35), (37), or (43)
above, contracts for resource recovery services or a resource recovery facility
authorized pursuant to subsection (17) above, contracts for the sale of energy
produced by a resource recovery facility authorized pursuant to subsection (18)
above, contracts for wastewater treatment services or for a wastewater
treatment system or any component part or parts thereof authorized pursuant to
subsection (19), (36), (37), or (43) above, contracts for the operation and
maintenance of a stormwater management system authorized pursuant to subsection
(37) above, and contracts for the purchase of electricity or administrative or
dispatching services related to the transmission of electricity authorized
pursuant to subsection (24) above, contracts for the purchase of electricity
generated from a power production facility that is fueled by methane gas
authorized pursuant to subsection (44) above, and power supply contracts
authorized pursuant to subsection (46) respectively, shall contain a clause
making them subject to the availability and appropriation annually of
sufficient funds as may be required to meet the extended obligation, or contain
an annual cancellation clause.
���� The Division of Local
Government Services in the Department of Community Affairs shall adopt and
promulgate rules and regulations concerning the methods of accounting for all
contracts that do not coincide with the fiscal year.
���� All contracts shall cease to
have effect at the end of the contracted period and shall not be extended by
any mechanism or provision, unless in conformance with the "Local Public
Contracts Law," P.L.1971, c.198 (C.40A:11-1 et seq.), except that a
contract may be extended by mutual agreement of the parties to the contract
when a contracting unit has commenced rebidding prior to the time the contract
expires or when the awarding of a contract is pending at the time the contract
expires.2
(cf: P.L.2019, c.79, s.1)
���� 1[2. The
governing body of a local unit shall ensure that all fire vehicles and
apparatus, purchased or leased pursuant to N.J.S.40A:2-22, adhere to the
nationally recognized industry standards set forth in National Fire Protection
Association (NFPA) Standard 1911 for the inspection, maintenance, testing, and
retirement of in-service emergency vehicles, or other internationally
recognized standard for automobile fire fighting apparatus and equipment.]1
���� 1[3. The
Commissioner of Community Affairs, in consultation with the Director of the
Division of Fire Safety, in accordance with the "Administrative Procedure
Act," P.L.1968, c.410 (C.52:14B-1 et seq.), shall adopt rules and
regulations as necessary to effectuate the provisions of P.L.��� , c.���
(C.������� ) (pending before the Legislature as this bill).]1
���� 1[4.] 2[3.1] 4.2� This
act shall take effect immediately.