Ex-Governor Corzine Acts (and Fails to Act) on Legislation in Final Full Day in Office
By Michael J. Lipari, Esq.
In his last full day in office, ex-Governor Jon Corzine signed legislative bill A-4347 that extends all permits and approvals that were subject to the Permit Extension Act of 2008 (“PEA”) through 2012. Corzine did not sign legislative bill A-4345 that would have extended the requirement of wastewater management planning agencies to establish or update wastewater management plans, and extended validity of sewer service areas and wastewater service areas, until April 7, 2011.
The PEA applies to extend or “toll” such permits that otherwise lapsed on or after January 1, 2007 and extend them through July 1, 2010, and possibly up to six months thereafter as well, depending on applicable tolling periods. Corzine’s signing of A-4347 now extends the PEA from July 1, 2010 to December 31, 2012, with no approval to be tolled beyond June 30, 2013. This law is significant to developers who may have economically viable projects but for the inability to obtain project financing due to the current economic climate. This additional life line may be just enough to support projects until the economy recovers and banks ease lending restrictions on development projects.
The refusal of Corzine to sign A-4345 results in a pocket veto as Chris Christie was sworn in today as the 55th Governor of New Jersey. The pocket veto means that many projects throughout the state remain vulnerable to being removed from existing sewer service areas. Site plan and subdivision approvals do not protect against DEP changes, which could eliminate projects that are not yet ready to build. Moreover, the notice requirements that were proposed in A-4345 do not exist in the current statute and consequently a property owner may not know if a project has been removed.
The bill did receive overwhelming support by the legislature. It was approved in the Assembly by a vote of 60-13, with 3 not voting and 4 abstentions; and in the Senate by a vote of 30-1, with 8 not voting. Some speculate that the substantial support for the bill will result in it being reintroduced this session or other measures taken by Governor Christie that would extend the time for DEP to act on wastewater management plans and sewer service areas.