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S 3787

Eliminates rent for homeless shelters; repealer

2025 Regular Session Introduced by Zellnor Myrie

Mandates timely remittance of 5% of the annual service charge to the county CFO, with per-installment reporting and penalties for nonpayment to boost accountability.

REPORTED AND COMMITTED TO FINANCE
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Bill Summary · S 3787

Summary — S-3787 (P.L.2025, c.91)

Status: Enacted (Approved P.L.2025, c.91). Introduced: Oct 10, 2024. Sponsor: Sen. Zellnor Myrie. Companion: A5613.

Purpose

Amend the "Long Term Tax Exemption Law" (P.L.1991, c.431) to strengthen notification, reporting, remittance, and enforcement procedures for municipal payments in lieu of taxes (the “annual service charge”) paid by urban renewal projects and to provide counties improved access to information and timely receipt of the county share.

Key provisions

  • Notification of county public hearing: Municipalities must notify the county chief financial officer (CFO) and the county clerk of the date, time, and place of the public hearing required before passage of an ordinance approving a financial agreement with an urban renewal entity (clarifies and expands prior notice requirements).

  • County receipt of ordinance/agreement (existing but reiterated): Within 10 calendar days after final adoption of the ordinance or execution of the financial agreement, the municipal clerk must transmit a certified copy of the ordinance and financial agreement to the county CFO and county counsel for informational purposes.

  • Timely remittance of county share:

    • Municipal tax collectors or municipal finance officers who receive an annual service charge must notify the municipality and the county CFO upon receipt.
    • Within seven days of that notification the municipal tax collector or finance officer must directly remit to the county CFO five percent (5%) of the annual service charge (the county’s statutory share).

  • Required payment-level reporting: With each installment payment, the municipal chief finance officer must provide specified information for each financial agreement, including:

    • project name and address;
    • date the municipality entered into the agreement and its expiration date;
    • amount of the annual service charge and the annual amount due to the county;
    • portion of each installment due to the county, the installment amount collected by the municipality, and the amount attributable to the agreement included in the county tax installment.

  • Remedies and sanctions for nonpayment or noncompliance:

    • If the 5% remittance is not paid when due, the county may recover the unpaid balance plus interest at 1% per month, and attorneys’ fees and court costs, in an action in a court of competent jurisdiction.
    • Municipal finance officer certification may be suspended or revoked for willful or intentional failure, neglect, or refusal to comply with the remittance/reporting requirements.

  • Technical and conforming amendments: Various technical changes and clarifications to sections 9 and 12 of P.L.1991, c.431.

Who is affected

  • Municipalities that receive annual service charges under long-term tax exemption financial agreements (municipal tax collectors and municipal finance officers bear operational responsibility).
  • County governments — particularly county CFOs and county counsel — who receive the 5% remittances and informational materials.
  • Urban renewal entities and projects subject to long-term tax exemption agreements, which will be subject to more detailed installment reporting.

Implementation / timing

  • The Assembly Committee version specified an effective date: the first day of the third month following enactment; and stated the new remittance/reporting rules apply to annual service charges received on or after that effective date for agreements subject to the Long Term Tax Exemption Law entered into on or after the effective date of P.L.2003, c.125. The measure was approved as P.L.2025, c.91 (Chapter 91).

Compiled from official sources — confirm details with the bill’s official record.

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