Bill Text: NJ A3832 | 2018-2019 | Regular Session | Introduced
Bill Title: Authorizes municipal tax levy through public question for certain purposes; clarifies ability of local government entities to issue non-recourse bonds; appropriates $100,000.*
Spectrum: Partisan Bill (Democrat 11-0)
Status: (Passed) 2020-01-13 - Approved P.L.2019, c.335. [A3832 Detail]
Download: New_Jersey-2018-A3832-Introduced.html
Sponsored by:
Assemblyman RAJ MUKHERJI
District 33 (Hudson)
SYNOPSIS
Authorizes municipal tax levy dedicated to arts and culture through public question.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning arts and culture funding and supplementing Title 40 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. As used in P.L. , c. (C. ) (pending before the Legislature as this bill):
"Arts and culture" means creative and cultural activities, including but not limited to, performing, visual, and fine arts, music, dance, graphic design, film, digital media and video, architecture and urban design, humanities, literature, arts and culture education, historic preservation, museum curation, crafts, and folk arts.
"Arts and culture trust fund" means a fund established pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill), for the purpose of supporting local arts and culture.
"Local arts council" means an entity, often referred to as a local arts agency, arts commission, or cultural affairs office, that:
a. is either a municipal or county government agency, or a private entity exempt from federal income taxation under paragraph (3) of subsection (c) of section 501 of the federal Internal Revenue Code of 1986 (26 U.S.C. s.501(c)(3)); and
b. maintains a mission that generally involves making arts and culture more accessible to the public, and supporting local artists, art programming, or local organizations focused on arts and culture.
2. a. The governing body of a municipality may, by ordinance, submit to the voters of the municipality, in a general or special election, a proposition authorizing an annual levy, in an amount or at a rate that the governing body deems appropriate, to be established for the purpose of supporting arts and culture, or any subset of activities within the definition of "arts and culture" under section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill). Upon approval of the proposition by a majority of the votes cast by the voters of the municipality, the governing body of the municipality may annually raise by taxation a sum not to exceed the amount or rate set forth in the proposition approved by the voters for the purposes specified therein.
b. (1) The amount or rate of the annual levy may be subdivided in the proposition to reflect the relative portions of the levy to be allocated to any respective arts and culture purpose.
(2) If the amount or rate set forth in the proposition is not subdivided among its various purposes, then the governing body of the municipality may, by ordinance, determine the appropriate amount or rate to be allocated to each purpose at a later time. By ordinance, the governing body of the municipality may also adjust any previously-determined allocation of funds among each purpose, so long as the adjustment is in accordance with the terms of the levy allocation submitted to the voters.
c. Amounts raised by the levy imposed pursuant to this section shall be deposited into an "arts and culture trust fund" to be created by the municipality, and shall be used exclusively for the purposes authorized by the voters of the municipality. Any interest or other income earned on monies deposited into the arts and culture trust fund shall be credited to the fund to be used for the same purposes as the principal. Separate accounts may be created within the arts and culture trust fund for the deposit of revenue that is to be expended for each respective purpose, as specified in the proposition approved by the voters of the municipality. A municipality may deposit other funds into the arts and culture trust fund, as it may, from time to time, deem appropriate.
d. The governing body of a municipality may, by ordinance, submit to the voters of the municipality in a general or special election a proposition amending, supplementing, or repealing, a proposition previously submitted, approved, and implemented as provided pursuant to this section. The proposition may propose to eliminate the annual levy, change the amount or rate of the annual levy, or add or remove purposes authorized pursuant to this section for which the levy may be expended. Upon approval of an amendatory or supplementary proposition by a majority of the votes cast by the voters of the municipality, the governing body of the municipality shall implement it in the same manner as set forth in P.L. , c. (C. ) (pending before the Legislature as this bill) for implementation of the original proposition.
e. Upon petition to the governing body of a municipality signed by the voters of the municipality equal in number to at least 15 percent of the votes cast therein at the last preceding general election, filed with the governing body at least 90 days before a general or special election, the governing body of the municipality shall submit to the voters of the municipality in the general or special election the proposition otherwise authorized pursuant to subsection a. or subsection d. of this section, as the case may be.
3. a. The municipality, either through an ordinance adopted pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill), or through a subsequent ordinance, shall designate a local arts council to manage the distribution of monies in the arts and culture trust fund. In distributing arts and culture trust fund monies, the local arts council shall comply with the conditions for the use of the funding established through the propositions and ordinances adopted pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill).
b. An agreement entered into in accordance with this section shall not be subject to the requirements and provisions of the "Local Public Contracts Law," P.L.1971, c.198 (C.40A:11-1 et seq.). If the local arts council is a private entity, then the local arts council shall allow the chief financial officer of the municipality to serve on its board, ex officio, as a non-voting member.
4. This act shall take effect immediately.
STATEMENT
This bill would authorize a municipality to adopt an ordinance, allowing the establishment of an annual tax levy dedicated to arts and culture funding, if approved by a majority of voters in the municipality through a public question in a general or special election.
The public question permitted by the bill would specify the sum or rate of the annual tax levy, and whether the levy will support arts and culture in the municipality broadly, or a subset of specific activities within the bill's definition of "arts and culture." The bill defines "arts and culture" as creative and cultural activities, including but not limited to, performing, visual, and fine arts, music, dance, graphic design, film, digital media and video, architecture and urban design, humanities, literature, arts and culture education, historic preservation, museum curation, crafts, and folk arts.
Under the bill, the amount or rate of the annual levy could be subdivided in the public question to reflect the relative portions of the levy to be allocated to any respective arts and culture purpose. If the public question does not subdivide the amount or rate of the levy among its various purposes, then the bill allows the municipality to determine by ordinance the appropriate amount or rate to be allocated to each purpose at a later time. By ordinance, the bill also allows the municipality to adjust any previously-determined allocation of funds among each purpose, so long as the adjustment is consistent with the terms of the levy allocation submitted to the voters.
Amounts raised by the levy would be deposited into an "arts and culture trust fund," and used exclusively for the purposes authorized by the voters of the municipality. The bill allows separate accounts to be created within the arts and culture trust fund for the deposit of revenue to be expended for each of the purposes specified in the public question. The bill also allows the municipality to deposit other funds into the arts and culture trust fund, as it may deem appropriate.
Following approval and implementation of one public question submitted under the terms of this bill, a municipality could, by ordinance, submit to the voters another proposition to (1) eliminate the annual levy, (2) change the amount or rate of the annual levy, or (3) add or remove certain purposes of the levy. Upon approval of an amendatory or supplementary proposition by a majority of the voters, this bill allows the municipality to implement it in the same manner as the original proposition.
The bill also authorizes a municipality's residents to compel a public question on arts and culture funding through petition. Specifically, through a petition signed by the voters of the municipality equal in number to at least 15 percent of the votes cast therein at the last preceding general election, filed with the municipality at least 90 days before a general or special election, the bill requires the municipality to submit to the voters any proposition otherwise authorized by the bill, in accordance with the terms of the petition.
The bill requires the municipality to designate, by ordinance, a local arts council to manage the distribution of monies in the arts and culture trust fund. The bill defines a local arts council as an entity, often referred to as a local arts agency, arts commission, or cultural affairs office, that:
· is either a municipal or county government agency, or a private entity exempt from federal income taxation under paragraph (3) of subsection (c) of section 501 of the federal Internal Revenue Code of 1986 (26 U.S.C. s.501(c)(3)); and
· maintains a mission that generally involves making arts and culture more accessible to the public, and supporting local artists, art programming, or local organizations focused on arts and culture.
In distributing arts and culture trust fund monies, the bill requires the local arts council to comply with the conditions for the use of the funding established through the one or more propositions and ordinances establishing the fund. An agreement entered into with a local arts council would not be subject to the requirements and provisions of the "Local Public Contracts Law," P.L.1971, c.198 (C.40A:11-1 et seq.). However, if the local arts council is a private entity, then the bill requires it to allow the chief financial officer of the municipality to serve on its board, ex officio, as a non-voting member.
