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A 5538

Enhances the assisted outpatient treatment program and eliminates the expiration and repeal of Kendra's Law

2025 Regular Session Introduced by Chris Burdick and 7 co-sponsors

Stops MUAs from charging fire districts/departments for fire-protection water when those taxpayers already pay via taxes, reducing double billing.

REFERRED TO MENTAL HEALTH
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Bill Summary · A 5538

Summary — Assembly Bill A5538 (1R)

Note: the bill number A5538 as introduced and amended in 2025 concerns municipal utilities authorities and billing for fire protection water service. (An alternative title shown in the request — concerning assisted outpatient treatment/Kendra’s Law — appears to be incorrect for this bill.)

Main purpose

To prevent certain duplicate charges for fire-protection water supply by prohibiting a municipal utilities authority (MUA) from imposing water service charges for fire protection systems on a fire district or certain fire departments when the MUA already charges customers who are also taxpayers of the taxing unit that supports that fire district or department.

Key provisions

  • Amends Section 21 of P.L.1957, c.183 (C.40:14B-21).
  • Requires MUAs that furnish water supply services to set a rate structure that provides uniform water service charges for both standard water supply and fire protection systems.
  • Prohibits an MUA from imposing water service charges for fire protection systems on:
    • A fire district designated under N.J.S.40A:14-70, or
    • A fire department (added by committee amendment), when the MUA also imposes water service charges on customers who are taxpayers of that fire district or of the local government unit that finances the fire department.
  • Retains existing prohibitions (existing law) on imposing standby fees for residential customers served by a water service line of two inches or less.
  • Preserves MUA authority to require separate service lines or metering for fire protection and existing rules on connection and tapping fees.
  • Effective date: immediately upon enactment.

Who is affected

  • Municipal utilities authorities: may lose the ability to bill certain fire districts or fire departments for fire protection system water service.
  • Fire districts and local governments supporting fire departments: may see reduced expenditures.
  • Ratepayers/customers of MUAs: MUAs are required to be self‑financing; OLS notes MUAs could potentially shift lost revenue onto other ratepayers if deficits arise.
  • Fire protection service users and taxpayers who are also MUA customers: intended to avoid being charged twice (via MUA rate and via taxes).

Fiscal and administrative impact

  • Office of Legislative Services (OLS) estimate: an indeterminate annual local government revenue loss to affected MUAs because they would no longer be permitted to collect certain charges from fire districts/departments.
  • Corresponding reduction in expenditures for the fire districts or local governments that finance fire departments.
  • OLS cannot quantify the impact due to lack of data on how many MUAs currently bill in the duplicative manner and the amounts involved.
  • OLS notes MUAs are required to be self-financing; any shortfall may be shifted to other ratepayers or funded by municipal budgets.

Legislative status / timeline (selected)

  • Introduced in Assembly: April 10, 2025
  • Reported by Assembly Public Safety and Preparedness Committee: May 15, 2025
  • Reported with amendments by Assembly Appropriations Committee: June 19, 2025
  • Passed Assembly: June 30, 2025 (79-0-0)
  • Received in Senate and referred to Senate Community and Urban Affairs Committee: Oct 20, 2025
  • Reported by Senate Community and Urban Affairs Committee (1R): Nov 10, 2025
  • Referred to Senate Budget & Appropriations Committee: Nov 10, 2025

(Record shows two entries “REFERRED TO MENTAL HEALTH” on Feb 14, 2025 — this appears to be metadata or clerical duplication unrelated to the bill’s subject matter.)

Sponsors and related legislation

  • Primary sponsor: Assemblymember Jo Anne Simon
  • Cosponsors: Chris Burdick; Jaime R. Williams; Phil Steck; Vivian Cook; Steven Otis; David Weprin; Amy Paulin
  • Companion / related bills: S-4344 (companion), S-3474 (companion), and several prior-session bills (A1275, A604, A2414, A5284, A4451).

Practical effect

If enacted, A5538 would stop certain MUAs from billing fire districts or qualifying fire departments for fire-protection water service when that same charge is already borne by taxpayers who are MUA customers — eliminating a form of double billing. The net fiscal effect is unclear and may shift costs to other ratepayers or municipal budgets if MUAs cannot absorb the revenue loss.

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

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