N.J. Admin. Code § 7:26H-3.2

Current through Register Vol. 56, No. 24, December 18, 2024

Section 7:26H-3.2 - Petitions for the approval of the sale or lease of property

(a) No sale or transfer or encumbrance of the assets of a solid waste collection or solid waste disposal utility or any change in majority control of such utility shall be consummated without prior authorization of the Department.

(b) Petitions to sell or transfer the assets or to affect a change in the majority control of a solid waste business shall be in accordance with the provisions of N.J.A.C. 7:26H-2, to the extent applicable, and shall in the body thereof, or in attached exhibits, also provide the following information:

1. The executed purchase or lease agreement including the name of the transferee or lessee, the consideration or rental and the method of payment, and any rights reserved by the transferor or lessor;

2. The proposed customer notice;

3. The proposed promissory note(s) or other security instruments;

4. The schedule of assets which are the subject of the proposed transaction;

5. The two most recent quarterly financial statements of both the buyer and seller or lessor and lessee. In the event that a solid waste utility does not, in the ordinary course of business, prepare quarterly financial statements, the solid waste utility shall submit an income statement and a balance sheet;

6. Proof of certification and licensure of the buyer or lessee by the Department;

7. A petition seeking Department approval to discontinue service to that portion of the seller's service area that is the subject of the petitioned transaction, if applicable;

8. A description of the relationship between the parties other than that of transferrer and transferee, or lessor and lessee; and

9. A description of any existing mortgage or other security agreement, including, the amount, and the time required to obtain a release.

(c) Notice of the sale shall appear in a newspaper of general circulation in the service territory of the utility relinquishing its assets at least 30 days before the sale occurs.

(d) The Department has 30 days from the date of receipt to review the Notice of Intent. For the purposes of this section, receipt means arrival at and date stamped by the Division of Sustainable Waste Management.

(e) The Department shall deny approval of an agreement described in (a) above if it contains any of the following terms and conditions:

1. Irrevocable payments on the promissory note commencing prior to Department approval;

2. Security interests in the customer accounts;

3. Reversion of the customer accounts to the seller in the event of default; or

4. Management agreement with buyer prior to Department approval of same pursuant to N.J.A.C. 7:26H-3.6.

N.J. Admin. Code § 7:26H-3.2

Administrative change.
See: 30 N.J.R. 3948(a).
Amended by R.2002 d.356, effective 11/4/2002.
See: 34 N.J.R. 1792(a), 34 N.J.R. 3819(a).
In (b), deleted former 8 and 9 and recodified former 10 and 11 as 8 and 9; rewrote (c).
Amended by R.2008 d.117, effective 5/5/2008.
See: 39 N.J.R. 4477(a), 40 N.J.R. 2243(a).
In (d), substituted "County Environmental and Waste Enforcement" for "Solid and Hazardous Waste".
Notice of readoption with technical change.
See: 47 N.J.R. 721(a).

Administrative Change, 55 N.J.R. 2003(a), effective 8/23/2023