Assembly Commerce and Economic Development Committee Statement to Assembly, No. 3671, Dated March 21, 2022

Summary

Statement of the Assembly Commerce and Economic Development Committee of the State of New Jersey, dated March 21, 2022, reporting Assembly Bill 3671 favorably with committee amendments. For residential customers who applied to a State agency for utility assistance before June 15, 2022, the grace period of Executive Order 246 of 2021 stays in effect for 60 days after the application, and electric, gas, sewer and water service continues until the application is approved or rejected. Discontinuances since the end of the extended grace period are nullified and service is restored. Local authorities may not place, sell or enforce liens for unpaid charges in that time. The Department of Community Affairs, the Department of Human Services and the Board of Public Utilities must decide completed applications within 90 days.

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ASSEMBLY COMMERCE AND ECONOMIC DEVELOPMENT COMMITTEE

STATEMENT TO

ASSEMBLY,
No. 3671

STATE
OF NEW JERSEY

DATED: MARCH
21, 2022

The Assembly Commerce and Economic Development Committee
reports favorably and with committee amendments Assembly Bill No. 3671.

As amended and reported, this bill provides that if a
residential customer submits an application for utility assistance before June
15, 2022 to a State agency but has not received an application determination
from the State agency, then the provisions of Executive Order No. 246 of 2021 (concerning
a grace period for residential customers) are to remain in effect for 60 days
after the customer has submitted an application and any local authority,
municipal utility, public utility, or rural electric cooperative within the
residential customer’s service territory is to continue to provide electric,
gas, sewer, or water service to that residential customer. If the customer
completes the application, the local authority, municipal utility, public
utility, or rural electric cooperative is to continue to provide electric, gas,
sewer, or water service to the residential customer until such time as the
application is approved or rejected by the appropriate State agency. Any
discontinuance occurring to a residential customer described in the bill
between the end of the extended grace period established by P.L.2021, c.317 and
before the effective date of the bill is to be nullified and service is to be
restored immediately.

The bill also provides that, when a residential
customer submits an application to a State agency for utility assistance prior
to June 15, 2022, a local authority or municipal utility is not to place, sell,
or enforce a lien on real property owned by a residential customer for the
unpaid balance of any electric or water charges, or for the unpaid balance of
any sewer charges not sold at tax sale, or otherwise accrued to a lien that was
struck off to a municipality prior to January 1, 2022 until 60 days after the
customer has submitted an application, or, if the application is completed,
until such time as the application is approved or rejected by the appropriate
State agency, and the residential customer is offered a utility service bill
payment plan.

The bill requires the Department of Community Affairs
(DCA), Department of Human Services (DHS), Board of Public Utilities (BPU), or
any other State agency that administers a utility assistance program to provide
approval or rejection of the application to the residential customer by regular
mail and, if applicable, the online portal in which the residential customer applied
for the utility assistance program, within 90 days of receiving a completed
application for utility assistance from a residential customer.

The bill provides that, upon receipt of the completed
application, the DCA is to consider whether the residential customer is
eligible for any utility assistance programs administered by the DCA when
making an application determination. If the residential customer may be
eligible for participation in the Payment Assistance for Gas and Electric
(PAGE) program, the DCA is to refer the application to the Affordable Housing
Alliance, which administers the program, for review and determination.

The bill provides that the notice provided to the
residential customer pursuant to the bill is to include information concerning
the availability of utility bill service payment plans.

Within two weeks of the effective date of the bill,
and bi-weekly thereafter, the DCA, DHS, BPU, and any other State agency that
administers a utility assistance program are to notify each local authority,
municipal utility, public utility, and rural electric cooperative that provides
electric, gas, sewer, or water service, within the residential customer’s
service territory. This notice would indicate:

1) the name, address, and utility account number of
each residential customer that has submitted an application or completed an
application to a utility assistance program pursuant to the bill; and

2) the protections set forth in the bill, which
prohibit the discontinuance of any utility service to that residential customer
until the State agency determines the residential customer’s application and
the placing, selling, or enforcing of a lien on real property owned by a
residential customer until the State agency determines the residential
customer’s application.

The bill provides that, within seven business days of
receiving notice of the approval or rejection of a residential customer’s
application for a utility assistance program, the appropriate State agency is
to provide a notice of determination to each local authority, municipal
utility, public utility, and rural electric cooperative that provides electric,
gas, sewer, or water service within the residential customer’s service
territory. In addition to any other information that the State agency may deem
appropriate, the written notice is to indicate:

1) the name, address, and utility account number of
the residential customer who applied for the utility assistance program;

2) the decision made on the application and the
amount of assistance that will be provided to the residential customer; and

3) the termination of the protections set forth in
the bill.

The provisions of the bill are not to apply in certain
situations.

A local authority, municipal utility, public utility,
or rural electric cooperative is not to be deemed to violate the provisions of
this subsection if: the State agency failed to provide notice to the local
authority, municipal utility, public utility, or rural electric cooperative; or
the local authority, municipal utility, public utility, or rural electric
cooperative determines, in good faith, that a utility emergency requires the
discontinuance or interruption of electric, gas, sewer, or water service.

Upon the effective date of the bill, DCA, DHS, BPU,
and any other State agency that administers a utility assistance program is
required to update all public information, including written materials,
advertisements, and websites, regarding the availability of the utility
assistance programs administered by the State. The public information is to
prominently include a statement of the consumer protections that residential
customers receive if the customer has submitted an application for utility
assistance program or completed an application for a utility assistance
program. Each local authority, municipal utility, public utility, or rural
electric cooperative is also required to provide this information in any
communication to a residential customer in connection with an overdue utility
bill.

COMMITTEE AMENDMENTS:

The committee amended the bill to:

1) require residential customer utility account
numbers to be included in the notices required pursuant to the bill;

2) require DCA, upon receipt of a completed
application, to consider whether the residential customer is eligible for any
utility assistance programs administered by the department. If the residential
customer may be eligible for participation in the PAGE program, the DCA is to
refer the application to the Affordable Housing Alliance, which administers the
program, for review and determination;

3) require information concerning utility bill
payment plans be included in the notice required by the bill;

4) omit a requirement for notice by certified mail;
and

5) require the State to notify utilities and
authorities within seven, rather than three, business days of the agencies’
determination on an application for assistance.

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