40A:26B-5 Establishment of stormwater utility by municipal authorities.

5. a. The governing body or bodies of one or more municipalities that have established a municipal sewerage authority pursuant to P.L.1946, c.138 (C.40:14A-1 et seq.) or a municipal utilities authority pursuant to P.L.1957, c.183 (C.40:14B-1 et seq.) may, by ordinance, or parallel ordinances, as appropriate, request that the authority establish a stormwater utility for the purposes of acquiring, constructing, improving, maintaining, and operating stormwater management systems in the municipality or municipalities, consistent with State and federal laws, rules, and regulations.

b. Upon the request of a municipality or municipalities, an authority may establish a stormwater utility pursuant to a service agreement between the authority and the requesting municipality or municipalities, in accordance with the provisions of P.L.2019, c.42 (C.40A:26B-1 et al.) and the "Local Authorities Fiscal Control Law," P.L.1983, c.313 (C.40A:5A-1 et seq.). The agreement shall set forth the powers, duties, and functions of the stormwater utility and any other matters that may be necessary for the agreement. A stormwater utility established pursuant to this section shall be considered a separate operation of the authority to be budgeted and accounted for separately.

c. An authority that establishes a stormwater utility pursuant to this section shall submit a copy of the service agreement to the Department of Environmental Protection and the Division of Local Government Services in the Department of Community Affairs. A municipality that contractually delegates to an authority any of its responsibilities under any New Jersey Pollutant Discharge Elimination System permit or any other rule, regulation, order, or permit issued by the department shall remain responsible for compliance with any such rules, regulations, orders, or permits if the authority fails to implement the requirements thereof.

L.2019, c.42, s.5.