Allows shared services agreement for certain warehouse developments specify size and sharing of costs and revenues associated with warehouse development.

A4062

ASSEMBLY, No. 4062

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED FEBRUARY 12, 2026

Sponsored by:

Assemblyman� ALEX SAUICKIE

District 12 (Burlington, Middlesex, Monmouth and Ocean)

SYNOPSIS

���� Allows shared services agreement for certain
warehouse developments specify size and sharing of costs and revenues
associated with warehouse development.�

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act

concerning municipal shared services agreements
and warehouse development and amending P.L.2007, c.63.

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

���� 1.��� Section 7 of P.L.2007,
c.63 (C.40A:65-7) is amended to read as follows:

���� 7.��� a.� An agreement made
pursuant to section 4 of P.L.2007, c.63 (C.40A:65-4) shall specify:

���� (1)�� the specific services to
be performed by one or more of the parties as agent for any other party or
parties;

���� (2)�� standards of the level,
quality, and scope of performance, with assignment and allocation of
responsibility for meeting those standards between or among the parties;

���� (3)�� the estimated cost of
the services throughout the duration of the agreement, with allocation of those
costs to the parties, in dollar amounts or by formula, including a time
schedule for periodic payment of installments for those allocations, and in the
case of a shared service agreement between pilot municipalities, an estimate of
the cost savings anticipated to be achieved by the local units that are the
parties to the agreement.� The specification may provide for the periodic
modification of estimates or formulas contained therein in the light of actual
experience and in accordance with procedures to be specified in the agreement;

���� (4)�� the duration of the
agreement, which shall be 10 years, unless otherwise agreed upon by the
parties, but in no case shall the duration of any agreement between pilot
municipalities be less than two years;
[
and
]

���� (5)�� the procedure for
payments to be made under the contract
; and

����
(6)�� for an agreement
related to the development and operation of a warehouse within the shared
territories of contracting parties entered into or renewed after the effective
date of P.L.��� , c.��� (pending before the Legislature as this bill), terms
and conditions to share the costs and revenues resulting from the development
and operation of the warehouse.� The agreement shall further specify the square
footage of a warehouse subject to the provisions of this paragraph
.

���� b.��� In the case when all of
the participating local units are municipalities, the agreement may provide
that it shall not take effect until submitted to the voters of each
municipality, and approved by a majority of the voters of each municipality
voting at the referendum.

���� c.���� The agreement may
provide for binding arbitration or for binding fact-finding procedures to
settle any disputes or questions which may arise between the parties as to the
interpretation of the terms of the agreement or the satisfactory performance by
any of the parties of the services and other responsibilities required by the
agreement.

���� d.��� For the purposes of
sections 4 through 13 of P.L.2007, c.63 (C.40A:65-4 through C.40A:65-13), any
party performing a service under a shared service agreement is the general
agent of any other party on whose behalf that service is performed pursuant to
the agreement, and that agent-party has full powers of performance and
maintenance of the service contracted for, and full powers to undertake any
ancillary operation reasonably necessary or convenient to carry out its duties,
obligations and responsibilities under the agreement.� These powers include all
powers of enforcement and administrative regulation which are, or may be,
exercised by the party on whose behalf the agent-party acts pursuant to the
agreement, except as the powers are limited by the terms of the agreement
itself, and except that no contracting party shall be liable for any part or
share of the cost of acquiring, constructing, or maintaining any capital
facility acquired or constructed by an agent-party unless that part or share is
provided for in the agreement, or in an amendment thereto ratified by the
contracting parties in the manner provided in sections 1 to 37 of P.L.2007,
c.63 (C.40A:65-1 et al.) for entering into an agreement.

���� e.���� Except as the terms of
any agreement may explicitly or by necessary implication provide, any party to
an agreement entered into pursuant to section 4 of P.L.2007, c.63 (C.40A:65-4)
may enter into another agreement or agreements with any other eligible parties
for the performance of any service or services pursuant to sections 1 to 37 of
P.L.2007, c.63 (C.40A:65-1 et al.). The participation in one agreement shall
not bar participation with the same or other parties in any other agreement.

���� f.���� Payment for services
performed pursuant to an agreement shall be made by and to the parties, and at
such intervals, as shall be provided in the agreement.

���� g.��� In the event of any
dispute as to the amount to be paid, the full amount to be paid as provided in
subsection a. of this section shall be paid; but if through subsequent
negotiation, arbitration or litigation the amount due shall be determined,
agreed or adjudicated to be less than was actually so paid, then the party
having received the payment shall forthwith repay the excess.

(cf: P.L.2013, c.166, s.6)

���� 2.��� This act shall take
effect immediately.

STATEMENT

���� This bill amends the "Uniform
Shared Services and Consolidation Act," P.L.2007, c.63 (C.40A:65-1 through
C.40A:65-35) to allow local units entering into or renewing a shared services
agreement for the development of a warehouse within their shared territories,
pursuant to law, to specify terms and conditions related to sharing the costs
and revenues of the warehouse development.� The bill also requires that the
agreement include information on the square footage of the warehouse.

���� It is the sponsor�s intent to
give municipalities another tool to prevent the overdevelopment or
underutilization of warehouses. Some municipalities are promised increased
property tax revenue from warehouse developments, only to find that the pledge
leaves them with many empty or under-used facilities and less property taxes
than promised.