An Act concerning the extension of certain permits and approvals affecting the physical development of property and amending P.L.2008, c.78 and supplementing P.L.1975, c.291 (C.40:55D-1 et seq.).

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 "Equitable Permit Extension Act of 2014."

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

a. Public health and environmental safeguards are necessary and are critical to life, liberty and the pursuit of happiness;

b. It is incumbent upon well intentioned officials in the administration of government to update such safeguards in response to advances in sciences, population increases and other changing conditions;

c. The State has experienced an increase in the frequency and severity of extreme weather that have caused significant damages to our economy and imperiled public health and safety, demonstrating the critical importance of updated and consistently applied safeguards: The droughts of 1999-2000, 2001-2003, and 2010; record-breaking blizzards on December 26, 2010 and October 29, 2011; the severe floods and destructive winds from Tropical Storm Floyd in 1999, Hurricane Irene in 2011 and Super Storm Sandy in 2012.

d. Municipalities have a traditional vested interest and a Constitutionally guaranteed stake in determining the planning of their communities;

e. Good planning requires appropriate development in appropriate locations; moreover, good planning must be periodically updated as conditions change;

f. The continued growth of New Jersey's urban communities are critical for our State's economic vitality; updated planning and zoning are essential responses to that growth;

g. Permits and other approvals, extended 3 times in the past 7 years to exempt projects from modern safeguards, have provided little to none of the economic benefit some had anticipated yet, with each successive year, these increasingly outdated permits and other approvals pose increasing risk to citizens of the State of New Jersey;

h. The 3rd extension is currently scheduled to expire on January 1, 2015;

i. It is in the public interest to further extend permits and other approvals for projects that meet modern public health, safety, building and environmental standards, but not to further extend permits and other approvals, even those previously extended, that do not conform to current development regulations and standards.

3. Section 3 of P.L.2008, c.78 (C.40:55D-136.3) is amended to read as follows:

3. As used in P.L.2008, c.78 (C.40:55D-136.1 et seq.) and P.L. , c. (C. ) (pending before the Legislature as this bill):

"Approval" means, except as otherwise provided in section 4 of P.L.2008, c.78 (C.40:55D-136.4), any approval of a soil erosion and sediment control plan granted by a local soil conservation district under the authority conferred by R.S.4:24-22 et seq., waterfront development permit issued pursuant to R.S.12:5-1 et seq., permit issued pursuant to "The Wetlands Act of 1970," P.L.1970, c.272 (C.13:9A-1 et seq.), permit issued pursuant to the "Freshwater Wetlands Protection Act," P.L.1987, c.156 (C.13:9B-1 et al.), approval of an application for development granted by the Delaware and Raritan Canal Commission pursuant to the "Delaware and Raritan Canal State Park Law of 1974," P.L.1974, c.118 (C.13:13A-1 et seq.), permit issued by the New Jersey Meadowlands Commission pursuant to the "Hackensack Meadowlands Reclamation and Development Act," P.L.1968, c.404 (C.13:17-1 et al.), approval of an application for development granted by the Pinelands Commission and determination of municipal and county plan conformance pursuant to the "Pinelands Protection Act," P.L.1979, c.111 (C.13:18A-1 et seq.), permit issued and center designations pursuant to the "Coastal Area Facility Review Act," P.L.1973, c.185 (C.13:19-1 et seq.), septic approval granted pursuant to Title 26 of the Revised Statutes, permit granted pursuant to R.S.27:7-1 et seq. or any supplement thereto, right-of-way permit issued by the Department of Transportation pursuant to paragraph (3) of subsection (h) of section 5 of P.L.1966, c.301 (C.27:1A-5), approval granted by a sewerage authority pursuant to the "sewerage authorities law," P.L.1946, c.138 (C.40:14A-1 et seq.), approval granted by a municipal authority pursuant to the "municipal and county utilities authorities law," P.L.1957, c.183 (C.40:14B-1 et seq.), an agreement with a municipality, county, municipal authority, sewerage authority, or other governmental authority for the use or reservation of sewerage capacity, approval issued by a county planning board pursuant to chapter 27 of Title 40 of the Revised Statutes, preliminary and final approval granted in connection with an application for development pursuant to the "Municipal Land Use Law," P.L.1975, c.291 (C.40:55D-1 et seq.), permit granted pursuant to the "State Uniform Construction Code Act," P.L.1975, c.217 (C.52:27D-119 et seq.), plan endorsement and center designations pursuant to the "State Planning Act," P.L.1985, c.398 (C.52:18A-196 et al.), permit or certification issued pursuant to the "Water Supply Management Act," P.L.1981, c.262 (C.58:1A-1 et al.), permit granted authorizing the drilling of a well pursuant to P.L.1947, c.377 (C.58:4A-5 et seq.), certification or permit granted, exemption from a sewerage connection ban granted, wastewater management plan approved, and pollution discharge elimination system permit pursuant to the "Water Pollution Control Act," P.L.1977, c.74 (C.58:10A-1 et seq.), certification granted pursuant to "The Realty Improvement Sewerage and Facilities Act (1954)," P.L.1954, c.199 (C.58:11-23 et seq.), certification or approval granted pursuant to P.L.1971, c.386 (C.58:11-25.1 et al.), certification issued and water quality management plan approved pursuant to the "Water Quality Planning Act," P.L.1977, c.75 (C.58:11A-1 et seq.), approval granted pursuant to the "Safe Drinking Water Act," P.L.1977, c.224 (C.58:12A-1 et al.), permit issued pursuant to the "Flood Hazard Area Control Act," P.L.1962, c.19 (C.58:16A-50 et seq.), any municipal, county, regional, or State approval or permit granted under the general authority conferred by State law or rule or regulation, or any other government authorization of any development application or any permit related thereto whether that authorization is in the form of a permit, approval, license, certification, permission, determination, interpretation, exemption, variance, exception, waiver, letter of interpretation, no further action letter, agreement or any other executive or administrative decision which allows a development or governmental project to proceed.

"Development" means the division of a parcel of land into two or more parcels, the construction, reconstruction, conversion, structural alteration, relocation or enlargement of any building or other structure or facility, or of any grading, soil removal or relocation, excavation or landfill or any use or change in the use of any building or other structure or land or extension of the use of land.

"Environmentally sensitive area" means an area designated pursuant to the State Development and Redevelopment Plan adopted, as of the effective date of P.L.2008, c.78, pursuant to P.L.1985, c.398 (C.52:18A-196 et al.) as Planning Area 4B (Rural/Environmentally Sensitive), Planning Area 5 (Environmentally Sensitive), or a critical environmental site, but shall not include any extension area as defined in this section.

"Extension area" means an area designated pursuant to P.L.1985, c.398 (C.52:18A-196 et seq.) as Planning Area 1 (Metropolitan), Planning Area 2 (Suburban), Planning Area 3 (Fringe Planning Area), Planning Area 4A (Rural Planning Area), a designated center, or a designated growth center in an endorsed plan until June 30, 2013, or until the State Planning Commission revises and readopts New Jersey's State Strategic Plan and adopts regulations to refine this definition as it pertains to Statewide planning areas, whichever is later; a smart growth area and planning area designated in a master plan adopted by the New Jersey Meadowlands Commission pursuant to subsection (i) of section 6 of P.L.1968, c.404 (C.13:17-6); regional growth areas, villages, and towns, designated in the comprehensive management plan prepared and adopted by the Pinelands Commission pursuant to section 7 of the "Pinelands Protection Act," P.L.1979, c.111 (C.13:18A-8); the planning area of the Highlands Region as defined in section 3 of the "Highlands Water Protection and Planning Act," P.L.2004, c.120 (C.13:20-3), and any Highlands center designated by the Highlands Water Protection and Planning Council, established pursuant to section 4 of P.L.2004, c.120 (C.13:20-4); an urban enterprise zone designated pursuant to P.L.1983, c.303 (C.52:27H-60 et seq.) or P.L.2001, c.347 (C.52:27H-66.2 et al.); an area determined to be in need of redevelopment pursuant to sections 5 and 6 of P.L.1992, c.79 (C.40A:12A-5 and 40A:12A-6) and as approved by the Department of Community Affairs; or similar areas designated by the Department of Environmental Protection. "Extension area" shall not include an area designated pursuant to the State Development and Redevelopment Plan adopted, as of the effective date of P.L.2008, c.78, pursuant to P.L.1985, c.398 as Planning Area 4B (Rural/Environmentally Sensitive) or Planning Area 5 (Environmentally Sensitive), except for any area within Planning Area 4B or Planning Area 5 that is a designated center, or a designated growth center in an endorsed plan.

"Extension period" means the period beginning January 1, 2007 and continuing through December 31, [2014] 2015.

"Government" means any municipal, county, regional, or State government, or any agency, department, commission or other instrumentality thereof.

(cf: P.L.2012, c.48, s.2)

4. Section 4 of P.L.2008, c.78 (C.40:55D-136.4) is amended to read as follows:

4. a. For any government approval in existence during the extension period, the running of the period of approval [is automatically] may be suspended for the extension period[, except as otherwise provided hereunder] pursuant to section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill); however, the tolling provided for herein shall not extend the government approval more than six months beyond the conclusion of the extension period. Nothing in P.L.2008, c.78 (C.40:55D-136.1 et seq.) or P.L. , c. (C. ) (pending before the Legislature as this bill) shall shorten the duration that any approval would have had in the absence of P.L.2008, c.78, nor shall [P.L.2008, c.78] either prohibit the granting of such additional extensions as are provided by law when the tolling granted by P.L.2008, c.78 shall expire. Notwithstanding any previously enacted provision of P.L.2008, c.78, as amended and supplemented, the running of the period of approval of all government approvals which would have been extended pursuant to the definition of "extension area," added by P.L.2012, c.48, shall be calculated, using that definition, retroactive to the enactment of P.L.2008, c.78.

b. Nothing in P.L.2008, c.78 (C.40:55D-136.1 et seq.) shall be deemed to extend or purport to extend:

(1) any permit or approval issued by the government of the United States or any agency or instrumentality thereof, or any permit or approval by whatever authority issued of which the duration of effect or the date or terms of its expiration are specified or determined by or pursuant to law or regulation of the federal government or any of its agencies or instrumentalities;

(2) any permit or approval issued pursuant to the "Pinelands Protection Act," P.L.1979, c.111 (C.13:18A-1 et seq.) if the extension would result in a violation of federal law, or any State rule or regulation requiring approval by the Secretary of the Interior pursuant to Pub.L.95-625 (16 U.S.C. s.471i);

(3) any permit or approval issued within an environmentally sensitive area;

(4) any permit or approval within an environmentally sensitive area issued pursuant to the "Highlands Water Protection and Planning Act," P.L.2004, c.120 (C.13:20-1 et al.), or any permit or approval issued within the preservation area of the Highlands Region as defined in section 3 of P.L.2004, c.120 (C.13:20-3);

(5) any permit or approval issued by the Department of Transportation pursuant to Title 27 of the Revised Statutes or under the general authority conferred by State law, other than a right-of-way permit issued pursuant to paragraph (3) of subsection (h) of section 5 of P.L.1966, c.301 (C.27:1A-5) or a permit granted pursuant to R.S.27:7-1 et seq. or any supplement thereto;

(6) any permit or approval issued pursuant to the "Flood Hazard Area Control Act," P.L.1962, c.19 (C.58:16A-50 et seq.), except (a) where work has commenced, in any phase or section of the development, on any site improvement as defined in paragraph (1) of subsection a. of section 41 of the "Municipal Land Use Law," P.L.1975, c.291 (C.40:55D-53) or on any buildings or structures or (b) where the permit or approval authorizes work on real property owned by the government or the federal government;

(7) any coastal center designated pursuant to the "Coastal Area Facility Review Act," P.L.1973, c.185 (C.13:19-1 et seq.), that as of March 15, 2007 (a) had not submitted an application for plan endorsement to the State Planning Commission, and (b) was not in compliance with the provisions of the Coastal Zone Management Rules at N.J.A.C.7:7E-5B.6; or

(8) any permit or approval within the Highlands planning area located in a municipality subject to the "Highlands Water Protection and Planning Act," P.L.2004, c.120, that has adopted, as of May 1, 2012, in accordance with the Highlands Water Protection and Planning Council conformance approval, a Highlands master plan element, a Highlands land use ordinance, or an environmental resource inventory, except that the provisions of this paragraph shall not apply to any permit or approval within a Highlands center designated by the Highlands Water Protection and Planning Council, notwithstanding the adoption by the municipality of a Highlands master plan element, a Highlands land use ordinance, or an environmental resource inventory.

c. P.L.2008, c.78 shall not affect any administrative consent order issued by the Department of Environmental Protection in effect or issued during the extension period, nor shall it be construed to extend any approval in connection with a resource recovery facility as defined in section 2 of P.L.1985, c.38 (C.13:1E-137).

d. Nothing in P.L.2008, c.78 or P.L. , c. (C. ) (pending before the Legislature as this bill) shall affect the ability of the Commissioner of Environmental Protection to revoke or modify a specific permit or approval, or extension thereof pursuant to P.L.2008, c.78, when that specific permit or approval contains language authorizing the modification or revocation of the permit or approval by the department.

e. In the event that any approval tolled pursuant to P.L.2008, c.78 is based upon the connection to a sanitary sewer system, the approval's extension pursuant to or section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall be contingent upon the availability of sufficient capacity, on the part of the treatment facility, to accommodate the development whose approval has been extended. If sufficient capacity is not available, those permit holders whose approvals have been extended shall have priority with regard to the further allocation of gallonage over those approval holders who have not received approval of a hookup prior to the date of enactment of P.L.2008, c.78. Priority regarding the distribution of further gallonage to any permit holder who has received the extension of an approval pursuant to P.L.2008, c.78 shall be allocated in order of the granting of the original approval of the connection.

f. P.L.2008, c.78 shall not toll any approval issued under the "Municipal Land Use Law," P.L.1975, c.291 (C.40:55D-1 et seq.) in connection with an application for development involving a residential use where, subsequent to the expiration of the permit but prior to January 1, 2007, an amendment has been adopted to the master plan and the zoning ordinance to rezone the property to industrial or commercial use when the permit was issued for residential use.

g. Nothing in P.L.2008, c.78 or P.L. , c. (C. ) (pending before the Legislature as this bill) shall be construed or implemented in such a way as to modify any requirement of law that is necessary to retain federal delegation to, or assumption by, the State of the authority to implement a federal law or program.

h. Nothing in P.L.2008, c.78 or P.L. , c. (C. ) (pending before the Legislature as this bill) shall be deemed to extend the obligation of any wastewater management planning agency to submit a wastewater management plan or plan update, or the obligation of a municipality to submit a wastewater management plan or plan update, pursuant to the "Water Quality Planning Act," P.L.1977, c.75 (C.58:11A-1 et seq.) and the Water Quality Management Planning rules, N.J.A.C.7:15-1.1 et seq., adopted by the Department of Environmental Protection, effective July 7, 2008.

i. All underlying municipal, county, and State permits or approvals within the extension area as defined in section 3 of P.L.2008, c.78 (C.40:55D-136.3), as amended, are extended in the Pinelands Area as designated pursuant to the "Pinelands Protection Act," P.L.1979, c.111 (C.13:18A-1 et seq.).

(cf: P.L.2012, c.48, s.3)

5. (New section) a. No running period of approval pursuant to 2008, c.78 shall extend beyond January 1, 2015 until the completion of the process set forth in this section.

b. An extension of permit application shall be filed by a permit holder with the municipality in which the permit is operative within 180 days of passage of P.L. , c. (C. ) (pending before the Legislature as this bill), or 90 days prior to the original expiration of any permits, whichever is later.

c. The application filed pursuant to this section shall include a signed certification from a licensed planner, engineer, and land use attorney that the extension requirements set forth in this section have been satisfied and a list of any other projects for which the applicant is seeking a permit extension. Each application shall also include the following information:

(1) Name of project;

(2) Municipal lot and block number, and acreage, for the property to which the permit is applicable;

(3) Date original permit issued;

(4) Percentage of impervious cover on the property to which the permit is applicable;

(5) Bulk volume and density data;

(6) For each permit extension requested, identify: the permit name, the permitting agency, original date of permit application and approval, the date of any prior extensions and the granting authority, and the current date of permit expiration.

d. Upon receipt of the application pursuant to this section, the municipality will transmit the information contained therein to the New Jersey Office of Planning Advocacy and the New Jersey Department of Environmental Protection. Each agency shall have a dedicated page on its official agency website for the public to access information concerning applications. The dedicated page shall be regularly updated to reflect status of extension requests.

e. A municipality shall not charge a fee for filing a application for an extension of permits under this section.

f. The local Planning Board or Zoning Board, as appropriate, shall review the certification for completeness at a public meeting. The board shall determine the completeness of an application, based upon the requirements of this section, but shall not consider the accuracy of the certification. The determination of the board that an application is complete shall constitute the approval of the application for an extension of the permits underlying the application, extending the permit through March 31, 2017. The board shall publish a list of extended projects, those applications pending before the board, and those failing to receive approval from the board on its website within 14 days of submission and no less than 14 days before a public meeting on the application.

g. The New Jersey Office of Planning Advocacy and New Jersey Department of Environmental Protection shall make records transmitted from municipalities easily accessible and searchable on its public website within five days of transmittal.

h. Permits applicable to foreclosed properties and applicants with tax arrears are ineligible for an extension. Applicants in arrears with outstanding environmental fines, or with standing environmental violations, shall be ineligible for an extension. The extension application shall be deemed complete if the following conditions have been satisfied:

(1) All projects shall comply with current State flood and storm water regulations, current flood maps approved by FEMA; plus 2 feet for in coastal zones, the "Pinelands Protection Act," P.L.1979, c.111 (C.13:18A-1 et seq.), the Pinelands Comprehensive Master Plan of 2014, and any applicable federal or State regulations adopted pursuant thereto;

(2) No permits shall be extended in the Highlands preservation area designated in the "Highlands Water Protection and Planning Act," P.L.2004, c.120 (C.13:20-1 et al.) or in the Highlands Planning Area of municipalities that have adopted the Highlands Municipal Master Plan Element or the Highlands Land Use Ordinance, unless the project is consistent with the Highlands Municipal Master Plan Element or the Highlands Land Use Ordinance. All other municipalities' projects must comply with Highlands water and wastewater capacity restraints pursuant to the determination of the Highlands Council. No capacity priority that has expired shall be extended.

i. It is unlawful for any person or entity to falsely make any statement in a application for extension of a permit under this Act. A violation of this subsection shall result in:

(1) a fine of not less than $2,000 or more than $50,000 per violation, to be collected by the Department of Community Affairs in a civil action by a summary proceeding under the "Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.);

(2) imprisonment for up to 3 years;

(3) loss of professional license; and

(4) disqualification of the permitee, any venture affiliated with the permitee, or any future venture of the permitee from any and all extensions available under P.L.2008, c.78 (C.40:55D-136.3) or P.L. , c. (C. ) (pending before the Legislature as this bill).

For purposes of this subsection, "falsely make" means to prepare or provide an application or document, with knowledge or in reckless disregard of the fact that the application or document contains a false, fictitious, or fraudulent statement or material representation, or has no basis in law or fact, or otherwise fails to state a fact which is material to the purpose for which it was submitted. Each falsely made statement, whether in one document or several, shall constitute a separate offense for the purposes of this subsection.

j. The Department of Community Affairs, pursuant to the "Administrative Procedure Act," P.L.1986, c.410 (C.52:14B-1 et seq.), shall adopt regulations necessary to effectuate the purpose of this section, which shall include a form application for use by permit holders seeking an extension under section 5 of P.L. , c. (C. ) (pending before the Legislature as this bill).

6. This act shall take effect immediately and shall expire on December 31, 2015.

STATEMENT

This bill extends certain permits and approvals beyond the current expiration date of January 1, 2015 to December 31, 2015. The "Permit Extension Act of 2008" originally suspended the running of certain government approvals until July 1, 2010. P.L.2012, c.48 extended the end date of the "extension period" to December 31, 2014. This bill would further extend the end date through December 31, 2015. In accordance with the tolling provision provided in the "Permit Extension Act of 2008," no approval would be extended beyond six months after the conclusion of the extension period.

As a result of the most recent recession, once-approved permits are in danger of expiring or lapsing because gaining permit extensions is difficult and costly and developers do not have the resources to obtain extensions. As permit approvals lapse, lenders must re-appraise and thereafter substantially lower real estate valuations established in conjunction with approved projects, thereby requiring the reclassification of numerous loans. This in turn affects the stability of the banking system and reduces the funds available for future lending, thus creating more severe restrictions on credit and leading to a vicious cycle of default.

Similar bills have been introduced in the past. This bill deviates from the approaches in other legislation by replacing the automatic approval of the extension with an application and review process. Basically, the project associated with the permits for which an extension is sought must be compliant with current environmental regulations, including those concerning flood and storm water management. The local planning or zoning board, as appropriate, would be charged with determining whether the application is complete pursuant to this bill. A determination that an application is complete ends the process and extends the permit.

Accordingly, so long as specific conditions are met, this bill would extend permits which have been granted by State, regional, county, and municipal agencies for an additional two years in order to prevent a waste of public and private resources.