Bill Text: NJ ACR205 | 2014-2015 | Regular Session | Introduced

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Bill Title: Amends State Constitution to dedicate all revenues from petroleum products gross receipts tax to transportation system and requires periodic, binding transportation funding plans.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2014-11-13 - Introduced, Referred to Assembly Transportation and Independent Authorities Committee [ACR205 Detail]

Download: New_Jersey-2014-ACR205-Introduced.html

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ASSEMBLY CONCURRENT RESOLUTION No. 205

STATE OF NEW JERSEY

216th LEGISLATURE

 

INTRODUCED NOVEMBER 13, 2014

 

 

Sponsored by:

Assemblyman  JOHN S. WISNIEWSKI

District 19 (Middlesex)

 

 

 

 

SYNOPSIS

     Amends State Constitution to dedicate all revenues from petroleum products gross receipts tax to transportation system and requires periodic, binding transportation funding plans.

 

CURRENT VERSION OF TEXT

     As introduced.

  

A Concurrent Resolution proposing to amend Article VIII, Section II, paragraph 4 of the New Jersey Constitution.

 

     Be It Resolved by the General Assembly of the State of New Jersey (the Senate concurring):

 

     1.    The following proposed amendment to the Constitution of the State of New Jersey is agreed to:

 

PROPOSED AMENDMENT

 

     Amend Article VIII, Section II, paragraph 4 to read as follows:

     4.    There shall be credited to a special account in the General Fund:

     (a)   for each State fiscal year commencing on and after July 1, 2007 an amount equivalent to the revenue derived from $0.105 per gallon from the tax imposed on the sale of motor fuels pursuant to chapter 39 of Title 54 of the Revised Statutes;

     (b)   for the State fiscal year 2001 an amount not less than $100,000,000 derived from the State revenues collected from the tax on the gross receipts of the sale of petroleum products imposed pursuant to P.L.1990, c.42 (C.54:15B-1 et seq.) as amended and supplemented, or any other subsequent law of similar effect, [and] for each State fiscal year [thereafter] from State fiscal year 2002 through State fiscal year 2015, an amount not less than $200,000,000 derived from those revenues , and for each State fiscal year thereafter, an amount equivalent to the entire amount collected from the tax on the gross receipts of the sale of petroleum products imposed pursuant to P.L.1990, c.42 (C.54:15B-1 et seq.) as amended and supplemented, or any other subsequent law of similar effect, or if that amount is less than $1,450,000,000, any additional State funds necessary to ensure that the amount credited to the special account is not less than $1,450,000,000; and

     (c)   for the State fiscal year 2002 an amount not less than $80,000,000 from the State revenue collected from the State tax imposed under the "Sales and Use Tax Act," pursuant to P.L.1966, c.30 (C.54:32B-1 et seq.), as amended and supplemented, or any other subsequent law of similar effect, for the State fiscal year  2003 an amount not less than $140,000,000 from those revenues, and for each State fiscal year thereafter an amount not less than $200,000,000 from those revenues;

provided, however, the dedication and use of such revenues as provided in this paragraph shall be subject and subordinate to (a) all appropriations of revenues from such taxes made by laws enacted on or before December 7, 2006 in accordance with Article VIII, Section II, paragraph 3 of the State Constitution in order to provide the ways and means to pay the principal and interest on bonds of the State presently outstanding or authorized to be issued under such laws or (b) any other use of those revenues enacted into law on or before December 7, 2006.  These amounts shall be appropriated from time to time by the Legislature, only for the purposes of paying or financing the cost of planning, acquisition, engineering, construction, reconstruction, repair and rehabilitation of the transportation system in this State and it shall not be competent for the Legislature to borrow, appropriate or use these amounts or any part thereof for any other purpose, under any pretense whatever.

     (d)   Notwithstanding any provisions of this constitution to the contrary, the Legislature shall enact, by law, a plan to be known as the "Five-Year Transportation Capital Plan." The plan shall be a program providing for the financing of the planning, acquisition, engineering, construction, reconstruction, repair, and rehabilitation of the State's transportation system, including, public highways, public transportation projects, and other transportation projects in the State, and State aid to counties and municipalities for transportation projects for the five State fiscal years following enactment of the plan.

     (e) The first "Five-Year Transportation Capital Plan" shall become effective on July 1 following the date of enactment of the plan and shall expire on June 30 of the fifth year following the plan's effective date.  Each subsequent "Five-Year Transportation Capital Plan" shall then become effective on July 1 following the date of enactment and shall expire on June 30 of the fifth year following the plan's effective date, provided that any subsequent "Five-Year Transportation Capital Plan" shall become effective no earlier than July 1 following the expiration of the prior "Five-Year Transportation Capital Plan."  Each "Five-Year Transportation Capital Plan" shall provide for: (1) a maximum amount to be appropriated in each fiscal year of a "Five-Year Transportation Capital Plan" from the revenues and other nonfederal funds of the New Jersey Transportation Trust Fund Authority for the projects included in the appropriations act pursuant to section 21 of P.L.1984, c.73 (C.27:1B-21); (2) a maximum amount of bonds that the New Jersey Transportation Trust Fund Authority, or its successor, may issue in each fiscal year of a "Five-Year Transportation Capital Plan"; and (3) a minimum amount of money that shall be credited to the Transportation Trust Fund Account, established pursuant to section 20 of P.L.1984, c.73 (C.27:1B-20), in each fiscal year of a "Five-Year Transportation Capital Plan"; provided, however, in each fiscal year, the sum of the amount of money credited to the Transportation Trust Fund Account and the permitted annual amount of bonding by the New Jersey Transportation Trust Fund Authority, or its successor, shall equal the sum of the annual debt service payable by the New Jersey Transportation Trust Fund Authority, or its successor, on bonds, notes, or other outstanding obligations, and the amount of authorized appropriations for the projects included in the appropriations act pursuant to section 21 of P.L.1984, c.73 (C.27:1B-21). 

     A "Five-Year Transportation Capital Plan" shall include provisions for sufficient additional dedicated revenue to fund the entire net increase in debt service on bonds, notes, or other outstanding obligations of the New Jersey Transportation Trust Fund Authority, or its successor, that becomes due or payable in the fiscal years covered by a "Five-Year Transportation Capital Plan."  Any additional revenue generated from an existing source of dedicated revenue is considered additional dedicated revenue for these purposes.  If the amount of annual additional dedicated revenue is greater than the net increase in debt service under a "Five-Year Transportation Capital Plan," the excess amount of annual revenue may be used in a subsequent "Five-Year Transportation Capital Plan" as additional dedicated revenues to fund a net increase in debt service in that subsequent "Five-Year Transportation Capital Plan."

     In any fiscal year for which a "Five-Year Transportation Capital Plan" has not been enacted, the Legislature shall not make any appropriations for transportation projects, and the New Jersey Transportation Trust Fund Authority, or its successor, shall not issue any new bonds to finance transportation projects until a "Five-Year Transportation Capital Plan" has been enacted.

     The Legislature shall not alter the appropriations, maximum amount of bonding, or minimum amount credited to the Transportation Trust Fund Account provided for in a "Five-Year Transportation Capital Plan" once enacted, except in cases of war, to repel invasion, to suppress insurrection, or to meet an emergency caused by disaster or act of God. 

(cf: Art. VIII, Sec. II, par. 4; amended effective December 7, 2006)

 

     2.    When this proposed amendment to the Constitution is finally agreed to pursuant to Article IX, paragraph 1 of the Constitution, it shall be submitted to the people at the next general election occurring more than three months after the final agreement and shall be published at least once in at least one newspaper of each county designated by the President of the Senate, the Speaker of the General Assembly and the Secretary of State, not less than three months prior to the general election.

 

     3.    This proposed amendment to the Constitution shall be submitted to the people at that election in the following manner and form:

     There shall be printed on each official ballot to be used at the general election, the following:

     a. In every municipality in which voting machines are not used, a legend which shall immediately precede the question as follows:

     If you favor the proposition printed below make a cross (X), plus (+), or check (a) in the square opposite the word "Yes." If you are opposed thereto make a cross (X), plus (+) or check (a) in the square opposite the word "No."

     b. In every municipality the following question:

 

		CONSTITUTIONAL AMENDMENT TO DEDICATE PETROLEUM PRODUCTS TAX TO STATE TRANSPORTATION SYSTEM AND REQUIRE FIVE YEAR TRANSPORTATION CAPITAL PLANS
	YES	Do you approve amending the Constitution to dedicate at least $1.25 billion in additional revenue for transportation projects and to require five-year transportation spending plans?     This would increase the dedication of the tax on petroleum products to the Transportation Trust Fund.  The amount increases from $200 million to at least $1.45 billion.      The Legislature will have to pass a transportation spending plan every five years.  The plan will include the amount of bonding and spending allowed on projects.  The plan will also name the source of money to pay for the projects.      The amendment also requires the State to identify new sources of funding for any new borrowing in a five-year plan.

 

		INTERPRETIVE STATEMENT
	NO	This amendment dedicates all the revenue from the tax on the gross receipts of the sale of petroleum products or $1.45 billion to the Transportation Trust Fund.  If more than $1.45 billion is generated from the tax, that larger amount will be dedicated.  If less than $1.45 billion is generated from the tax, General Fund or other State funds will be dedicated to the Transportation Trust Fund.  Currently, a minimum of $200 million is dedicated.     The amendment requires the Legislature to pass a transportation spending plan every five years.  The plan sets a limit on bonding and spending for transportation projects.  The plan identifies resources to support transportation spending in each year of the plan.      Each plan is to be balanced so spending on new projects and debt service equals revenues from new borrowing authority and dedicated revenues for transportation.  Any net increase in debt service under the plan is to have new dedicated funding.  The additional funding is to equal the annual cost of repaying the debt.     The plan cannot be changed during the five year period.  The only exception is in cases of war or a major disaster.

 

 

STATEMENT

 

     This constitutional amendment dedicates all the revenue from the tax on the gross receipts of the sale of petroleum products (petroleum products tax) to the Transportation Trust Fund (trust fund).

     The constitutional dedication is equal to all of the revenues from the tax on the gross receipts of the sale of petroleum products, or $1.45 billion per year, whichever is greater.  In State fiscal year 2015, it is anticipated that the current tax will generate $215 million.  The current constitutional dedication from the tax on the gross receipts of petroleum products is $200 million per year. 

     This amendment anticipates the passage of companion legislation that would increase the petroleum products tax from an amount equal to four cents per gallon of motor fuel sales to an amount equal to nine percent of the average retail price of regular unleaded gasoline applied to all motor fuel sales, which is anticipated to generate approximately $1.45 billion per year.  If the tax generates less than $1.45 billion, with or without the passage of companion legislation, additional amounts from the General Fund or other State funds must be dedicated to the Transportation Trust Fund to equal $1.45 billion.

     This amendment also requires the Legislature to enact a law every five years known as the "Five-Year Transportation Capital Plan" (the plan).  The plan establishes five-year spending, borrowing, and funding levels for the trust fund.  The plan sets: (1) a maximum appropriation level each year for State transportation capital projects to be included in the annual transportation capital program; (2) a maximum amount of permitted bonding each year by the trust fund; and (3) a minimum amount of State revenues to be appropriated into the trust fund account each year to support debt service on existing trust fund debt and to provide a level of pay-as-you-go funding for current year transportation projects, equal to the difference between the appropriation level set for new projects and the permitted bonding level for that year.

     Any net new borrowing that takes place under a five-year plan, that is, borrowing greater than the amount of principal retired through debt service, is to be accompanied by an increase in dedicated State revenues to the Transportation Trust Fund under the plan equal to the annual debt service cost of net new borrowing under the plan.  Any increase in revenues from a currently dedicated source of revenue, such as an increase in petroleum products gross receipts tax collections, is considered an increase in dedicated State revenues.  This revenue restriction preserves the amount of pay-as-you-go funding for new projects.

     The amendment requires the plan to be balanced each year, so that the amount of revenue deposited into the trust fund and permitted new debt issuance are sufficient to pay for outstanding debt service costs and any new appropriations for transportation projects.

     The amendment also prevents the plan from being changed once it has been approved.  The amendment provides exceptions in the event of emergency needs of war, to repel invasion, to suppress insurrection, or to meet an emergency caused by disaster or an act of God.