Permits business entities and nonprofit organizations to adopt certain responsibilities related to stormwater management basins; provides corporation business tax credit for adoption of stormwater management basins in certain watersheds.

A1878

ASSEMBLY, No. 1878

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblywoman CLEOPATRA G. TUCKER

District 28 (Essex and Union)

SYNOPSIS

���� Permits business entities and nonprofit organizations
to adopt certain responsibilities related to stormwater management basins;
provides corporation business tax credit for adoption of stormwater management
basins in certain watersheds.

CURRENT VERSION OF TEXT

���� Introduced Pending Technical Review by Legislative
Counsel.

��

An Act

concerning stormwater management basins and
supplementing Title 40 of the Revised Statutes and P.L.1945, c.162 (C.54:10A-1
et seq.).�

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� This act
shall be known and may be cited as the �Adopt a
Stormwater Management Basin Act.�

����
2.��� As
used in this act:

�Participating
entity� means a business entity or nonprofit organization that has entered into
a stormwater management basin adoption agreement with a stormwater management
agency in accordance with this act.

�Qualified
watershed� means the respective watersheds of Lake Hopatcong in Morris and
Sussex counties, Budd Lake in Morris County, Swartswood Lake in Sussex County,
Greenwood Lake in Passaic County, and Lake Musconetcong in Morris and Sussex
Counties.�

���� �Stormwater management agency�
means the State, or any political subdivision thereof, including, but not
limited to, any department, county, municipality, commission, utility, or
authority, or any agency thereof, that has ownership or control over a stormwater
management basin or a site suitable therefor.�

���� �Stormwater management basin�
means an excavation or embankment and related areas designed to retain
stormwater runoff, which may be either a detention or infiltration basin that
is normally dry, a retention basin that retains water in a permanent pool, or
an area of constructed wetlands that is planted mainly with wetland vegetation.

���� �Stormwater management basin
adoption agreement� means an agreement between a stormwater management agency
and a business entity or nonprofit organization by which the business entity or
nonprofit organization agrees to provide for the construction, improvement,
operation, or maintenance of a stormwater management basin over which the
stormwater management agency has ownership or control, or to provide a
specified amount of funding therefor in a manner prescribed by the agreement,
as the case may be.�

���� 3.��� a.� A stormwater
management agency that owns or has control over an existing stormwater
management basin or a site suitable therefor may enter into a stormwater
management basin adoption agreement that imposes no cost on the stormwater
management agency except as provided pursuant to section 4 of this act.�

���� No stormwater management basin
adoption agreement may be entered into unless the participating entity
successfully demonstrates to the stormwater management agency that the
participating entity is capable of constructing, improving, operating,
maintaining, or funding the stormwater management basin, as the case may be, in
accordance with the agreed upon terms and conditions and with all State and
federal laws, rules, and regulations pertaining to stormwater management.� A
stormwater management basin adoption agreement shall be for such period as may
be agreed upon by the stormwater management agency and the participating
entity, and may be terminated by the participating entity upon at least six
months� notice to the stormwater management agency, or by the stormwater
management agency at any time without prior notice to the participating entity,
for any reason, including, but not limited to, failure of the participating
entity to comply with any term or condition of the stormwater management basin
adoption agreement.

���� b.��� Nothing in this act
shall be deemed to relieve a stormwater management agency of its
responsibilities to comply with the conditions and requirements of any permit
issued by the Department of Environmental Protection concerning stormwater
management.�

���� 4.��� A stormwater management
agency may:

���� a.���� provide at no cost to a
participating entity materials, supplies, or services that the stormwater
management agency deems appropriate to assist the participating entity with its
responsibilities under the stormwater management basin adoption agreement;

b.��� advertise
and promote a stormwater management basin adoption program established by the
stormwater management agency pursuant to this act; and

c.���� provide for
appropriate public recognition of a participating entity, including, but not
limited to:

(1)�� issuance of
a certificate of recognition; and

(2)�� authorization
for the participating entity to pay for and erect a sign or signs at the
applicable stormwater management basin, consistent with any applicable
municipal ordinance, indicating the name and address of the participating
entity, and that the participating entity has assumed those responsibilities
performed pursuant to the stormwater management basin adoption agreement as a
public service in accordance with this act.� The stormwater management agency
shall determine the size, color, style, and location of any such sign or signs
that may be erected.� A stormwater management agency may pay for a sign or
signs erected in accordance with this paragraph if the participating entity is
a nonprofit organization.

���� 5.��� a.�� Except as provided
in the �New Jersey Tort Claims Act,� N.J.S.59:1‑1 et seq., no stormwater
management agency, or any employee or agent thereof, may be held liable in any
civil action to any person for any injury or damages that may be caused or
sustained by any participating entity, or any employee, agent, contractor, member,
or volunteer thereof, during the course of, or as a result of, any activity
related to the performance of a stormwater management basin adoption agreement.

b.��� As a
condition of any stormwater management basin adoption agreement entered into in
accordance with this act:

(1)�� a
participating entity, and each employee, agent, contractor, member, or
volunteer of that participating entity assisting in performance of the
stormwater management basin adoption agreement, shall sign a waiver releasing
the stormwater management agency and its employees and agents from any civil
liability for any injury or damages, except those arising from criminal or
willful, wanton, or grossly negligent conduct, that may be sustained by the
participating entity, or any employee, agent, contractor, member, or volunteer
thereof, as the case may be, during the course of, or as a result of, any
activity related to the performance of the stormwater management basin adoption
agreement;

(2)�� a
participating entity shall agree to indemnify, and if requested by the
stormwater management agency, defend, the stormwater management agency and its
employees and agents against all claims made by any person for injuries or
damages that may be caused or sustained by the participating entity, or any
employee, agent, contractor, member, or volunteer thereof, during the course
of, or as a result of, any activity related to the performance of a stormwater
management basin adoption agreement; and

(3)�� a
participating entity shall obtain and retain insurance in an amount sufficient
for the purposes set forth in this section.

6.��� While
performing responsibilities pursuant to a stormwater management basin adoption
agreement entered into in accordance with this act, a participating entity and
its employees, agents, contractors, members, and volunteers shall not be
considered to be �public employees� or �State employees� for the purposes of
the �New Jersey Tort Claims Act,� N.J.S.59:1‑1 et seq., or otherwise be
accorded any of the protections set forth therein.

7.��� A stormwater
management basin adoption agreement entered into in accordance with this act
shall not be subject to the requirements and provisions of the �Local Public
Contracts Law,� P.L.1971, c.198 (C.40A:11‑1 et seq.).

���� 8.��� a.� A taxpayer who
provides materials, supplies, labor, or funding, or who incurs other costs,
including, but not limited to, increased costs for insurance, for the adoption
of a stormwater management basin located in a qualified watershed, as that term
is defined in section 1 of P.L.��� , c.�� (C.������� ) (pending before the
Legislature as this bill), pursuant to a stormwater management basin adoption
agreement entered into in accordance with this act, which is certified by a
stormwater management agency pursuant to subsection b. of this section, shall
be entitled to a credit as provided herein against the tax imposed pursuant to
section 5 of P.L.1945, c.162 (C.54:10A-5), in an amount equal to 100 percent of
the taxpayer�s total certified expenditures, or $1,000, whichever is lower,
provided, however, the credit shall not exceed 50 percent of the tax liability
otherwise due pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5).� The order
of priority of application of a tax credit under this section and any other tax
credits allowed by law shall be as prescribed by the Director of the Division
of Taxation.

���� b.��� In order to qualify for
the tax credit pursuant to subsection a. of this section, the taxpayer shall
apply for and obtain a certification from the stormwater management agency that
certifies that the taxpayer was a participating entity for the applicable
privilege period and that the stormwater management basin is located in a
qualified watershed.� The certification shall indicate the date when the
taxpayer became a participating entity, include a copy of the stormwater
management basin adoption agreement, and state, to the best of the stormwater
management agency's knowledge, that the materials, supplies, labor, or other
costs incurred by the taxpayer, or the funding provided by the taxpayer, have
been expended by the taxpayer and have not previously qualified for and received
a credit pursuant to this section.

���� Upon certification, the
stormwater management agency shall submit a copy thereof to the taxpayer and to
the Director of the Division of Taxation in the Department of the Treasury.�
When filing a tax return that includes a claim for a credit pursuant to this
section, the taxpayer shall include a copy of the certification and a statement
that the expenditures certified therein were incurred in the applicable
privilege period.� Any credit shall be valid in the privilege period in which
the certification is approved, and any unused portion thereof may be carried
forward for up to four subsequent privilege periods.

���� c.� The Director of the
Division of Taxation, in consultation with the Commissioner of Environmental
Protection, shall adopt rules and regulations, pursuant to the �Administrative
Procedure Act,� P.L.1968, c.410 (C.52:14B-1 et seq.), establishing technical
specifications and certification requirements for qualification for the tax
credit established pursuant to this section.

���� 9.��� This act shall take
effect immediately, and section 8 shall apply to privilege periods beginning on
or after January 1 next following the date of enactment.

STATEMENT

���� This bill, to be known as the
�Adopt a Stormwater Management Basin Act,�
would
permit a business entity or nonprofit organization (�participating entity�) to
adopt certain responsibilities related to a stormwater management basin by
entering into an agreement with a stormwater management agency.�

Specifically,
under the bill, a stormwater management agency would be authorized to enter
into a �stormwater management basin adoption agreement� with a participating
entity for the construction, improvement, operation, maintenance, or funding of
a stormwater management basin.� The agreement could only be entered into at no
cost to the stormwater management agency.� However, the stormwater management
agency would be authorized to provide the participating entity with such
materials, supplies, or services that the stormwater management agency deems
appropriate.� The stormwater management agency would also be authorized to
advertise and promote a stormwater management basin adoption program, and
provide for appropriate public recognition of a participating entity.�

No stormwater
management basin adoption agreement would be permitted unless the participating
entity successfully demonstrates to the stormwater management agency that it is
capable of performing its responsibilities in accordance with the terms and
conditions of the agreement and with all State and federal laws, rules and
regulations pertaining to stormwater management.� The bill would also establish
the grounds and procedures for termination of a stormwater management basin
adoption agreement.

In addition, the
bill would authorize a stormwater management agency to advertise any stormwater
management basin adoption program established pursuant to this bill and to
provide for appropriate public recognition of a participating entity.�
Specifically, the stormwater management agency would be authorized to issue a
certificate of recognition to the participating entity, and would be further
authorized to allow for the erection of certain signs at the stormwater
management basin.� The erection of signs consistent with municipal ordinances
would be subject to certain conditions and in accordance with certain
specifications, as set forth by the stormwater management agency.

The bill also
provides that a stormwater management agency would be protected from claims by
any person for injuries or damages that may be caused or sustained by any
participating entity, or any employee, agent, contractor, member, or volunteer
thereof, during the course of, or as a result of, any activity related to the
performance of a stormwater management basin adoption agreement.

While performing
responsibilities under a stormwater management basin adoption agreement entered
into in accordance with the bill, a participating entity and its employees,
agents, contractors, members, and volunteers would not be considered to be
�public employees� or �State employees� for the purposes of the �New Jersey
Tort Claims Act,� or otherwise be accorded any of the protections set forth
therein.� Furthermore, any stormwater management basin adoption agreement
entered into in accordance with this bill would not be subject to the
requirements and provisions of the "Local Public Contracts Law."

Finally, the bill
would provide a tax credit against the corporation business tax for a
participating entity that adopts a stormwater management basin located in a
qualified watershed.� Under the bill a �qualified watershed� means the
respective watersheds of Lake Hopatcong in Morris and Sussex counties, Budd
Lake in Morris County, Swartswood Lake in Sussex County, Greenwood Lake in
Passaic County, and Lake Musconetcong in Morris and Sussex Counties.�
Specifically, the tax credit would be equal to the amount of the participating
entity�s certified expenditures incurred under a stormwater management basin
adoption agreement, provided, however, the credit could not exceed $1,000 or 50
percent of the taxpayer�s total tax liability under the corporation business
tax.� The bill also establishes procedures by which a taxpayer may apply for
the tax credit, including certain requirements related to the certification of
eligible expenditures.