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July 1, 2013

Re: Legislative Update
       I. Suspension of Commercial Development Fee Expires
      II. Amendments to the Common Sense Shared Service Act

Dear Mayor,

We would like to provide you with two additional legislative developments.

I. Suspension of Commercial Development Fee Expires

Late last week, the Governor conditionally vetoed S-2716/A-4251 (, which proposed to extend the moratorium on the collection of the statewide non-residential development fee until 2016 and establish the “New Jersey Residential Foreclosure Transformation Act.”

The Governor’s conditional veto, which is online at, eliminates the foreclosure program but would leave intact the extension of the commercial development fee moratorium until January 1, 2016.       The conditional veto was received by the Senate late Thursday and both Houses would need to accept and approve the Governor’s recommendations and return it to him for his signature.   

However until the Legislature acts, the moratorium on the collection of the fee is expired as of July 1, 2013.   That means municipalities with affordable housing trust funds are to collect the fee, pursuant to P.L. 2008. c46.    If the conditional veto is accepted and approved, it is likely that any funds collected between now and the effective date of the law would need to be reimbursed to the developer.  

The League will advise if the Department of Community Affairs (DCA) issues any guidance on this issue.    For background on the statewide non-residential fee, please see the DCA memo to tax assessor of June 26, 2008 (   and the DCA letter to construction officials of the same date (
Contact: Mike Cerra, 609-695-3481 x120,

II. Amendments to the Common Sense Shared Service Act

As we reported in our June 28 Dear Mayor Letter, the Assembly further amended S-533/A-1401 on the Assembly floor by a vote of 71-0-1.  The most significant amendment was to make the Act a Pilot Program.  Instead of having broad application only municipalities located in Camden, Morris, Ocean, Sussex and Warren counties could remove a tenured municipal clerk, chief financial officer, tax collector, municipal treasurer, tax assessor or municipal superintendent of public works to effectuate a shared service agreement deemed to be in the interest of the economy of efficiency of the municipalities.

In addition, only pilot municipalities would be able to take advantage of the provisions of the bill and must choose between the existing employees.  Any shared service agreement enter into under this act would have to be for at least two years but no more than ten years.  The amended bill must now go back to the State Senate for concurrence.
Contact Lori Buckelew, 609-695-3481 x112,

Very truly yours,

Janice S. Mironov, President,
New Jersey State League of Municipalities,
Mayor, East Windsor Township
William G. Dressel, Jr.
Executive Director





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