Removes municipal and county ability to divert up to five percent of funds from certain water and sewer authorities for other purposes.

Bill A1104 would prevent New Jersey municipalities and counties from diverting up to five percent of funds from certain water and sewer authorities for other local purposes. Currently, these authorities (including local water utilities and sewer systems) can have up to five percent of their annual operating funds redirected to municipal or county budgets. The bill would amend state law to eliminate this diversion, ensuring funds stay invested in water and sewer infrastructure rather than subsidizing general government expenses. This change targets a practice that previously redirected millions of dollars annually from infrastructure improvements, as noted in the bill's statement.