New Jersey § 58:30-5

§ 58:30-5.

a. The determination that emergent conditions exist shall be made by certification

of the mayor, the mayor's designee of the municipality, and a licensed engineer. b. Emergent conditions shall exist if at least one of the following conditions is

met: (1) The system is located in an area designated by the Department of Environmental

Protection as an Area of Critical Water Supply Concern I or II, or any future designation

or newly added area of critical water supply concern; (2) The owner of the system is a significant noncomplier, as defined pursuant to section

3 of P.L.1977, c. 7 ( C.58:10A-3 ), has been the subject of a formal enforcement action initiated by the department,

or is substantially out of compliance with an administrative consent order, settlement

agreement, stipulation of settlement, or judicial consent order entered into with

the department; or (3) There is a present deficiency or violation of maximum contaminant levels established

pursuant to the “Safe Drinking Water Act,” P.L.1977, c. 224 ( C.58:12A-1 et seq. ), concerning the availability or potability of water, or concerning the provision

of water at adequate volume or pressure, or distribution or treatment of wastewater; (4) There is a demonstrated lack of historical investment, repair, or sustainable

maintenance as determined by the department, or material damage to the infrastructure

of the system; or (5) The system owner lacks the financial, technical, or managerial capacity to adequately

address any of the foregoing on a sustainable basis or own and operate the system

in a way that supports economic activity in the municipality on a sustainable basis. c. Should the owner determine that one or more emergent conditions contained in subsection

b. of this section exists and that it is necessary to take steps to effectuate the

sale or long-term lease of its water or wastewater assets to a capable private or

public entity pursuant to this act to address these emergent conditions and to operate

and maintain the system, the owner shall through the utilization of applicable public

procurement laws of the State of New Jersey retain the services of an independent

financial advisor to review, analyze and report on the value of the system and the

short and long term impacts to rate-payers of the cash-flow structure of the proposed

transaction and to provide an estimate as to the financial requirements necessary

to address the emergent conditions and to operate and maintain the system. Upon completion of the analysis and review, the independent financial advisor shall

transmit its report to the owner. Within 10 days of the approval of the report by the owner, the owner shall transmit

copies to the board, the director, and the department and shall make the report available

for public review. d. After the independent financial advisor has completed its analysis of the financial

aspects of the proposed transaction and has presented its report to the owner, a public

hearing on the proposed emergent condition certification shall be held. The owner shall provide notice of the public hearing no less than 30 days prior

to the date of the hearing. The notice shall prominently state the findings upon which the certification of

emergent conditions is based, a summary of the findings by the independent financial

advisor and that the certification is in anticipation of a proposed long-term lease

or sale of water or wastewater assets to a capable private or public entity. Notice of the public hearing shall be published on the official Internet website

of the municipality and at least once in one or more newspapers circulating in the

municipality. Notice of the public hearing shall be published on the official Internet website

of the county and at least once in one or more newspapers circulating in the county. If an applicable official website does not exist, notice of the public hearing shall

be published on the official Internet website of the Department of Community Affairs. e. After the public hearing and after giving due consideration to the findings of

the independent financial advisor, the governing body of the owner shall, by resolution

adopted by at least two-thirds of its authorized membership, certify that one or more

emergent conditions exist and that the owner intends to sell or long-term lease its

water or wastewater assets to a capable private or public entity to address these

emergent conditions and to operate and maintain the system. Within five days of the adoption of the resolution, the governing body of the owner

shall transmit a true copy of the resolution, to the department, the board, and the

director. Within 30 days of receipt of the resolution by the department, the department shall

approve or reject the owner's emergent conditions certification as contained in the

resolution. f. Upon receipt of the approval of the emergent conditions certification by the Department

of Environmental Protection, the owner shall publish notice of the approval if the

owner chooses to proceed with the sale or long-term lease of its water or wastewater

assets to a capable private or public entity. The notice shall prominently state that the certification is in anticipation of

a long-term lease or sale of water or wastewater assets to a capable private or public

entity. Notice of the approval shall be published on the official Internet website of the

municipality and at least once in one or more newspapers circulating in the municipality,

and shall prominently state that a petition may be filed within 45 days after the

publication of such notice to require a referendum before a resolution authorizing

the long-term lease or sale of water or wastewater assets may take effect. If an applicable official website does not exist, notice of the approval shall be

published on the official Internet website of the Department of Community Affairs. g. A petition may be filed with the municipal clerk, no later than 45 days after the

notice of the approval of the emergent conditions certification is published, protesting

the lease or sale of water or wastewater assets without a public referendum. If the petition is signed by a number of legal voters of the municipality equal

to at least 15% of the total votes cast in the municipality at the last election at

which members of the General Assembly were elected, a resolution to lease or sell

water or wastewater assets shall not take effect unless the lease or sale of such

assets is approved pursuant to R.S.40:62-4 and R.S.40:62-5 . If a petition is not filed pursuant to this subsection, a resolution to lease or

sell water or wastewater assets shall not be subject to a public referendum.