Permits counties to charge a fee to fund infrastructure through voter approval.

S3552

SENATE, No. 3552

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED FEBRUARY 19, 2026

Sponsored by:

Senator� JAMES BEACH

District 6 (Burlington and Camden)

SYNOPSIS

���� Permits counties to charge a fee to fund
infrastructure through voter approval.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act

concerning the imposition of a fee at the county
level to fund infrastructure construction projects and amending P.L.1976, c.68
and supplementing Title 40 of the Revised Statutes.

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

���� 1.��� (New section) This act
shall be known and may be cited as the �County Self-Help Infrastructure Act.�

���� 2.��� (New section) The
Legislature finds and declares that:

���� a.���� Infrastructure
construction projects are vital to maintaining the quality of life that the
residents of this State enjoy and ensuring the health, safety, and welfare of
its residents and visitors.

���� b.��� The State�s aged
infrastructure is crumbling and the investment gap grows each day.

���� c.���� Local aid provided by
the New Jersey Department of Transportation, the main source of funding for
infrastructure construction projects at the county level, has proven to be
woefully inadequate to address even basic needs, and greater funding is
required.

���� d.��� With State funds
stretched to the limit, the residents of a county may desire a new funding
mechanism that would allow important infrastructure construction projects to
move forward, benefitting the economy and overall well-being of that region.

���� e.���� New Jersey should
follow the actions of other states that have permitted a self-help fee at the
local level, including Alabama, Arkansas, California, Florida, Hawaii,
Illinois, Mississippi, Montana, Nevada, New Mexico, Oregon, South Dakota, Tennessee, and Washington.

���� f.���� Residents of each
county deserve the flexibility to choose whether or not to impose, based on
voter approval, an infrastructure construction fee in order to address their
crumbling infrastructure, stimulate local economies, and create jobs.

���� 3.��� (New section) As used in
this act:

���� �Infrastructure construction
fee� means a county-wide fee established with voter approval, in a manner
determined by the county�s governing body within the parameters of
P.L. , c. (C. )
(pending before the Legislature as this bill), and to be used expressly for the
purpose of funding infrastructure construction projects within that county�s
jurisdiction.

����
�Infrastructure
construction project� means the construction, reconstruction, alteration,
addition, physical betterment, or improvement of any public infrastructure
within a county, including, but not limited to public highways, bridges,
utilities, water and sewer systems.

���� 4.��� (New section) An
infrastructure construction fee may be imposed by a county under the following
procedures:

���� a.���� Prior to the imposition
and collection of any fee under this section, the governing body of the county
shall request approval, through a public question submitted in a general or
special election to the legal voters residing in its territory, to allow the
county to establish an infrastructure construction fee.� Approval shall be by
an affirmative vote of in excess of 50 percent of the people voting on the
question at the election.� A county ordinance or resolution, as applicable to
the form of government, proposing an infrastructure construction fee shall be
introduced and approved in the manner otherwise provided for ordinances or
resolutions of that county, as the case may be, at least 20 days prior to the
date on which the referendum is to be held, and shall be published in the
manner otherwise provided for ordinances or resolutions of the county at least
12 days prior to the referendum date, unless otherwise directed by the Director
of the Division of Local Government Services in the Department of Community
Affairs.

���� b.��� The public question to
be submitted to the voters at the referendum shall state the maximum fee to be
established, and may specify the period for which the fee will be implemented
and the projects to be funded.� The public question shall include an accompanying
explanatory statement that identifies the infrastructure needs that warranted
the governing body�s decision to ask the public question.

���� c.���� The infrastructure
construction fee may take any reasonable form so long as that form is stated in
the public question and in the accompanying explanatory statement.

���� 5.��� (New section)� In
consultation with the State Treasurer and the Commissioner of Community
Affairs, the collection and allocation of a voter-approved infrastructure
construction fee shall be administered by the governing body of the county or
its designee.� So long as it complies with the county ordinance or resolution
establishing the infrastructure construction fee, and with P.L.��� , c.��
(C.������� ) (pending before the Legislature as this bill) and its associated
regulations, the governing body of the county or its designee may adopt any
necessary ordinances, resolutions, rules, or regulations relative to the
collection and allocation of funds generated, along with any procedures and
penalties that may be assessed to address violations.

���� 6.��� (New section) The
proceeds from an infrastructure construction fee shall be used by the county
solely for the purpose of funding infrastructure construction projects within
the county that established the fee.

���� 7.��� (New section)� The State
Treasurer, in consultation with the Director of the Division of Local
Government Services in the Department of Community Affairs, shall promulgate
rules and regulations necessary to effectuate the provisions of
P.L. , c. (C. )
(pending before the Legislature as this bill) not later than the first day of
the third month next following enactment.

���� 8.��� Section 4 of P.L.1976,
c.68 (C.40A:4-45.4) is amended to read as follows:

���� 4.��� In the preparation of
its budget, a county may not increase the county tax levy to be apportioned
among its constituent municipalities in excess of 2.5% or the cost-of-living
adjustment, whichever is less, of the previous year's county tax levy, subject to
the following exceptions:

���� a.���� The amount of revenue
generated by the increase in valuations within the county, based solely on
applying the preceding year's county tax rate to the apportionment valuation of
new construction or improvements within the county, and such increase shall be
levied in direct proportion to said valuation;

���� b.��� Capital expenditures,
including appropriations for current capital expenditures, whether in the
capital improvement fund or as a component of a line item elsewhere in the
budget, provided that any such current capital expenditures would be otherwise
bondable under the requirements of N.J.S.40A:2-21 and 40A:2-22;

���� c.���� (1) An increase based
upon emergency temporary appropriations made pursuant to N.J.S.40A:4-20 to meet
an urgent situation or event which immediately endangers the health, safety or
property of the residents of the county, and over which the governing body had
no control and for which it could not plan and emergency appropriations made
pursuant to N.J.S.40A:4-46.� Emergency temporary appropriations and emergency
appropriations shall be approved by at least two-thirds of the governing body
and by the Director of the Division of Local Government Services, and shall not
exceed in the aggregate 3% of the previous year's final current operating
appropriations.

���� (2)�� (Deleted by amendment,
P.L.1990, c.89.)

���� The approval procedure in this
subsection shall not apply to appropriations adopted for a purpose referred to
in subsection d. or f. below;

���� d.��� All debt service, except
as otherwise provided in this section;

���� e.���� (Deleted by amendment,
P.L.1990, c.89.)

���� f.���� Amounts required to be
paid pursuant to (1) any contract with respect to use, service or provision of
any project, facility or public improvement for water, sewerage, parking,
senior citizen housing or any similar purpose, or payments on account of debt service
therefor, between a county and any other county, municipality, school or other
district, agency, authority, commission, instrumentality, public corporation,
body corporate and politic or political subdivision of this State; and (2) any
lease of a facility owned by a county improvement authority when the lease
payment represents the proportionate amount necessary to amortize the debt
incurred by the authority in providing the facility which is leased, in whole
or in part;

���� g.��� That portion of the
county tax levy which represents funding to participate in any federal or State
aid program and amounts received or to be received from federal, State or other
funds in reimbursement for local expenditures.� If a county provides matching
funds in order to receive the federal or State or other funds, only the amount
of the match which is required by law or agreement to be provided by the county
shall be excepted;

���� h.��� (Deleted by amendment,
P.L.1987, c.74.)

���� i.���� (Deleted by amendment,
P.L.1990, c.89.)

���� j.���� (Deleted by amendment,
P.L.1990, c.89.)

���� k.��� (Deleted by amendment,
P.L.1990, c.89.)

���� l.���� (Deleted by amendment,
P.L.2004, c.74.)

���� m.�� (Deleted by amendment,
P.L.1990, c.89.)

���� n.��� (Deleted by amendment,
P.L.1990, c.89.)

���� o.��� (Deleted by amendment,
P.L.1990, c.89.)

���� p.��� Extraordinary expenses,
approved by the Local Finance Board, required for the implementation of an
interlocal services agreement;

���� q.��� Any expenditure mandated
as a result of a natural disaster, civil disturbance or other emergency that is
specifically authorized pursuant to a declaration of an emergency by the
President of the United States or by the Governor;

���� r.���� Expenditures for the
cost of services mandated by any order of court, by any federal or State
statute, or by administrative rule, directive, order, or other legally binding
device issued by a State agency which has identified such cost as mandated
expenditures on certification to the Local Finance Board by the State agency;

���� s.���� That portion of the
county tax levy which represents funding to a county college in excess of the
county tax levy required to fund the county college in local budget year 1992;

���� t.���� (Deleted by amendment,
P.L.2004, c.74.)

���� u.��� Expenditures for the
administration of general public assistance pursuant to P.L.1995, c.259
(C.40A:4-6.1 et al.);

���� v.��� Amounts in a separate
line item of a county budget that are expended on tick-borne disease vector
management activities undertaken pursuant to P.L.1997, c.52 (C.26:2P-7 et al.);

���� w.�� Amounts expended by a
county under
[
an
interlocal services agreement
]

a joint contract
entered into pursuant to the
[
"Interlocal Services
Act," P.L.1973, c.208 (C.40:8A-1 et al.)
]

�Uniform Shared Services and Consolidation Act,� P.L.2007, c.63 (C.40A:65-1
et seq.)
entered into after the effective date of P.L.2000, c.126
(C.52:13H-21 et al.) or amounts expended under a joint contract pursuant to the

[
"Consolidated
Municipal Service Act," P.L.1952, c.72 (C.40:48B-1 et seq.)
]

�Uniform
Shared Services and Consolidation Act,� P.L.2007, c.63 (C.40A:65-1 et seq.)

entered into after the effective date of P.L.2000, c.126 (C.52:13H-21 et al.);

���� x.��� Amounts appropriated in
the first three years after the effective date of P.L.2003, c.92 (C.18A:7F-5b
et al.) for liability insurance, workers' compensation insurance and employee
group insurance;

���� y.��� Amounts appropriated in
the first three years after the effective date of P.L.2003, c.92 (C.18A:7F-5b
et al.) for costs of domestic security preparedness and responses to incidents
and threats to domestic security;

���� z.���� Expenditures of amounts
received pursuant to section 5 of P.L.1981, c.278 (C.13:1E-96)
;

����
aa.� Any amount approved by
referendum under section 4 of P.L. , c. (C. ) (pending
before the Legislature as this bill)
.

���� In the first full year where
an existing appropriation or expenditure that is subject to budget limitations
is made an exception to budget limitations, a county shall deduct from its
final appropriations upon which its permissible expenditures are calculated
pursuant to section 2 of P.L.1976, c.68 (C.40A:4-45.2) the amount which the
county expended for that purpose during the last full budget year, or portion
thereof, in which the purpose so excepted was funded from appropriations in the
county budget.

���� In the first full year where
an existing appropriation or expenditure that is not subject to budget
limitations is made subject to budget limitations, a county shall add to its
final appropriations upon which its permissible expenditures are calculated pursuant
to section 2 of P.L.1976, c.68 (C.40A:4-45.2) the amount which the county
expended for that purpose during the last full budget year, or portion thereof,
in which the purpose so excepted was funded from appropriations in the county
budget.

���� Notwithstanding the provisions
of section 10 of P.L.2007, c.62 (C.40A:4-45.45) to the contrary, after a county
has made the determination to prepare its budget under the property taxation
limitations of section 4 of P.L.1976, c.68 (C.40A:4-45.4), pursuant to
paragraph (1) of subsection a. of section 10 of P.L.2007, c.62 (C.40A:4-45.45),
then in any such local budget year, if a county's appropriations for debt
service are less than the prior year's appropriations for debt service, which
amounts are exceptions to the 2.5% county tax levy increase limitation pursuant
to this section, then the county's maximum permissible tax levy for that local
budget year shall not be reduced by the amount of the difference in

appropriations for debt service
between the two local budget years.

(cf: P.L.2024, c.8, s.1)

����

���� 9.��� This act shall take
effect immediately, but its provisions shall remain inoperative until the first
day of the fourth month next following enactment.

STATEMENT

���� This bill would create the
�County Self-Help Infrastructure Act,� permitting the governing body of any
county to impose a county-wide fee for the purpose of funding infrastructure
construction within the county after first obtaining voter approval.

���� Like many states, New
Jersey�s infrastructure needs are growing increasingly critical.� Various
other states have created a self-help fee at the local level to address these
needs.� Because local aid for these projects from the New Jersey Department of
Transportation and other State agencies is woefully inadequate, New
Jersey�s counties could benefit tremendously from following other states�
examples.� The infrastructure construction fee created through this bill could
take any reasonable form so long as it is presented to the voters through a
public question that clearly states the maximum fee to be established.