Bill Text: NJ A1701 | 2018-2019 | Regular Session | Introduced
Bill Title: Revises authorization and financing of certain notes as special emergency appropriations.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2018-01-09 - Introduced, Referred to Assembly State and Local Government Committee [A1701 Detail]
Download: New_Jersey-2018-A1701-Introduced.html
STATE OF NEW JERSEY
218th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2018 SESSION
Sponsored by:
Assemblyman RONALD S. DANCER
District 12 (Burlington, Middlesex, Monmouth and Ocean)
SYNOPSIS
Revises authorization and financing of certain notes as special emergency appropriations.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the authorization and financing of emergency appropriations, and revising various parts of the statutory law.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. N.J.S.40A:2-3 is amended to read as follows:
40A:2-3. Any local unit, by bond ordinance, may incur indebtedness, borrow money, authorize and issue negotiable obligations for financing:
a. any capital improvement or property which it may lawfully make or acquire;
b. any purpose for which it is authorized or required by law to make an appropriation, except current expenses, as may be defined by rule and regulation of the Local Finance Board, and payment of obligations (other than those for temporary financing); [or]
c. the amount of any contribution by a local unit that is a sending municipality under a regional contribution agreement pursuant to section 12 of P.L.1985, c.222 (C.52:27D-312); or
d. appropriations for the carrying out of any of the following purposes:
(1) Preparation of an approved tax map.
(2) Preparation and execution of a complete program of revaluation of real property for the use of the local assessor, or of any program to update and make current any previous revaluation program when such is ordered by the county board of taxation.
(3) Preparation of a revision and codification of its ordinances.
(4) Engagement of special consultants for the preparation, and the preparation of a master plan or plans, when required to conform to the planning laws of the State.
(5) Preparation of drainage maps for flood control purposes.
(6) Preliminary engineering studies and planning necessary for the installation and construction of a sanitary sewer system.
(7) Authorized expenses of a consolidation commission established pursuant to the "Municipal Consolidation Act," P.L.1977, c.435 (C.40:43-66.35 et seq.) or sections 25 through 29 of the "Uniform Shared Services and Consolidation Act," P.L.2007, c.63 (C.40A:65-25 through C.40A:65-29).
(8) Contractually required severance liabilities resulting from the layoff or retirement of employees. Such liabilities shall be paid without interest and, at the sole discretion of the local unit, may be paid in equal annual installments over a period not to exceed five years.
(9) Preparation of a sanitary or storm system map.
(10) Liabilities incurred to the Department of Labor and Workforce Development for the reimbursement of unemployment benefits paid to former employees.
(11) Subject to approval by the Director of the Division of Local Government Services, non-recurring expenses incurred by a municipality to implement a consolidation with another municipality, or municipalities, pursuant to the "Municipal Consolidation Act," P.L.1977, c.435 (C.40:43-66.35 et seq.); the sparsely populated municipalities law, P.L.1995, c.376 (C.40:43-66.78 et seq.); sections 25 through 29 of the "Uniform Shared Services and Consolidation Act," P.L.2007, c.63 (C.40A:65-25 through C.40A:65-29); or N.J.S.40A:7-1 et seq., in the case of a consolidation effectuated through the annexation of land comprising an entire municipality or entire municipalities, to another municipality. The director shall approve the ordinance if he or she determines that the non-recurring expenses are reasonable and permissible by law and that the consolidation will result in long-term savings for the municipality.
(12) Subject to approval by the Director of the Division of Local Government Services, non-recurring expenses incurred by a municipality to implement a consolidation with another municipality, or municipalities, pursuant to the "Municipal Consolidation Act," P.L.1977, c.435 (C.40:43-66.35 et seq.); the sparsely populated municipalities law, P.L.1995, c.376 (C.40:43-66.78 et seq.); sections 25 through 29 of the "Uniform Shared Services and Consolidation Act," P.L.2007, c.63 (C.40A:65-25 through C.40A:65-29); or N.J.S.40A:7-1 et seq., in the case of a consolidation effectuated through the annexation of land comprising an entire municipality or entire municipalities, to another municipality. The director shall approve the ordinance if he or she determines that the non-recurring expenses are reasonable and permissible by law and that the consolidation will result in long-term savings for the municipality.
e. A local unit may issue notes with respect to the purposes set forth at subsection d. hereof pursuant to the terms of this chapter; provided, that notwithstanding the provisions of subsections (a)(2) and (3) of C.40A:2-8.1, at least 1/5 of all such notes, and the renewals thereof, shall mature and be paid in each year, so that all notes and renewals shall have matured and have been paid not later than the last day of the fifth year following the date of adoption of the bond ordinance. A local unit may also finance such purposes from surplus funds available, with at least 1/5 of the amount thereof included in each annual budget until the appropriation has been fully provided for.
f. No local unit shall borrow money or issue its obligations for purposes authorized under this chapter except as provided in this chapter.
(cf: P.L.2007, c.62, s.16)
2. N.J.S.40A:4-54 is amended to read as follows:
40A:4-54. A local unit may adopt a resolution authorizing [special emergency] capital appropriations to cover the cost of extraordinary expense for the repair, reconstruction of streets, roads or bridges, or other public property damaged by flood or hurricane where such expense was not foreseen at the time of the adoption of the budget. A municipality may adopt a resolution authorizing [special emergency] capital appropriations to cover the cost of extraordinary expense for the repair and reconstruction of private property damaged by flood or hurricane in accordance with rules and regulations promulgated by the Department of Community Affairs for a Municipal Natural Disaster Relief Grant Program authorized pursuant to section 2 of P.L.1999, c.366 (C.40:48-9.15).
(cf: P.L.1999, c.366, s.1)
3. N.J.S.40A:4-55 is amended to read as follows:
40A:4-55. After the adoption of [an ordinance or] a resolution for [special emergency] capital appropriations, the local unit shall by 2/3 vote of the full governing body adopt a resolution setting forth:
a. The amount appropriated.
b. Provision for the borrowing of money and the issuance of ["Special Emergency] "Capital Notes" which may be renewed from time to time, but at least 1/5 of all such notes, and the renewals thereof, shall mature and be paid in each year, so that all notes and renewals shall have matured and have been paid not later than the last day of the fifth year following the date of the emergency resolution. The provisions of this chapter relating to tax anticipation notes shall apply to [special emergency] capital notes.
c. A local unit may finance such appropriation from surplus funds available or borrow money in the manner prescribed above. Where any appropriation is financed from surplus funds available, at least 1/5 of the amount thereof shall be included in each annual budget until the appropriation has been fully provided for.
(cf: P.L.1960, c.61, s.12)
4. The following sections of law are repealed:
N.J.S.40A:4-53.
5. This act shall take effect immediately.
STATEMENT
This bill eliminates designation of the special emergency note through the repeal of N.J.S.40A:4-53, and thereby simplifies the landscape of municipal bond issuance in New Jersey. The bill allows actions that could presently be funded through special emergency note issuance, to instead be funded through issuance of capital notes under the "Local Bond Law" (N.J.S.40A:2-1 et seq.). These actions include tax map preparation, real property revaluation, ordinance revision and recodification, engagement with consultants in relation to master plan preparation, drainage map preparation, sanitary sewer system engineering studies, payment of certain severance liabilities, sanitary or storm system map preparation, certain unemployment benefit reimbursements, and consolidation commission and certain other consolidation-related expenses.
