Bill Text: NJ S2290 | 2010-2011 | Regular Session | Introduced
Bill Title: Authorizes transfer of State's public broadcasting system to a nonprofit corporation or other entity eligible to operate a public broadcasting system; abolishes NJ Public Broadcasting Authority and Foundation for NJ Public Broadcasting.
Sponsorship: Partisan Bill (Republican 1)
Status: (Introduced - Dead) 2010-09-23 - Introduced in the Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee [S2290 Detail]
Download: New_Jersey-2010-S2290-Introduced.html
Sponsored by:
Senator JOSEPH M. KYRILLOS, JR.
District 13 (Middlesex and Monmouth)
SYNOPSIS
Authorizes transfer of State's public broadcasting system to a nonprofit corporation or other entity eligible to operate a public broadcasting system; abolishes NJ Public Broadcasting Authority and Foundation for NJ Public Broadcasting.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the State's public broadcasting system, supplementing Title 52 of the Revised Statutes, amending P.L.1977, c.44 and P.L.1972, c.133, and repealing various parts of the statutory law.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. (New section) This act shall be known and may be cited as the "New Jersey Public Broadcasting System Transfer Act."
2. (New section) The Legislature finds and declares that:
a. In 1961, the public broadcast station WNET-TV moved its operations from the City of Newark to New York City, leaving New Jersey without a public television station of its own.
b. Thereafter, the Legislature passed and Governor Richard J. Hughes signed the "New Jersey Public Broadcasting Authority Act of 1968," P.L.1968, c.405 (C.48:23-1 et seq.), establishing the New Jersey Public Broadcasting Authority ("authority"), the current operator of the New Jersey Network ("NJN"), in response to the inability of commercial and public broadcasters to adequately cover public affairs in the State. Further, in 1990, the Legislature passed and Governor Thomas H. Kean signed P.L.1990, c.114 (C.48:23-13 et al.), establishing the Foundation for New Jersey Public Broadcasting ("foundation") as NJN's fundraising arm.
c. While this structure has served the State by building a broadcast network that assists in meeting the information and entertainment needs of our citizens, the current fiscal crisis confronting the State, the need for fundamental structural reform at the State level, and the inherent difficulties in operating an essentially creative, artistic, cultural, educational, and public affairs entity under the control of a State authority clearly necessitated a thorough reexamination of the State's role in providing a public broadcasting system to its citizens.
d. In light of the aforesaid fiscal, structural, and operational challenges, the Fiscal Year 2011 appropriations law, passed by the Legislature and signed by the Governor on June 29, 2010 (P.L.2010, c.35), significantly reduced State support for public broadcasting services based on the determination that NJN should operate independently and that the State of New Jersey will no longer financially support the public television business as of January 1, 2011.
e. It is in the public interest to establish a legal structure within which the authorization of a transfer of the State's public broadcasting system to a nonprofit corporation or other entity eligible to operate a public broadcasting system, including, but not limited to, a transfer of its assets, operating licenses, and operations, or an interest in them, may be accomplished in a timely manner that provides maximum benefits for the citizens of the State while, at the same time, minimizing disruption to affected employees and other interested parties. It is also in the public interest to authorize the State Treasurer to take any and all actions necessary to effectuate the termination of the foundation.
f. Moreover, while it is important to consider and provide for a potential asset transfer to a nonprofit corporation or similar entity, it is also in the public interest to authorize the State Treasurer to explore alternative paths to such a transfer, including, but not limited to, the outright sale of some or all of the assets of the authority.
3. (New section) The New Jersey Public Broadcasting Authority created pursuant to P.L.1968, c.405 (C.48:23-1 et seq.), shall undertake all acts necessary to accomplish the transfer of the State's public broadcasting system to a nonprofit corporation or other entity eligible to operate a public broadcasting system as authorized by P.L. , c. (C. ) (pending before the Legislature as this bill), including, but not limited to, applying or assisting in applying to the Federal Communications Commission ("FCC") or other governmental entity for any required approval, executing any authorization or authorizations required to implement such transfer, and seeking any other approval or approvals as may be necessary and convenient to accomplish the transfer. All State departments and agencies, boards, commissions, and authorities, as well as all municipal and county governing bodies, boards, commissions, and authorities, shall cooperate fully with the transfer authorized by P.L. , c. and facilitate the transfer of assets, the rendering of approvals, and other acts necessary or convenient to accomplish the transfer. The State Treasurer is authorized to retain any consultants, experts, brokers, advisors, or other professionals whose services may be necessary in order to effectuate the transaction or transactions contemplated by P.L. , c. , and there are appropriated such sums as may be necessary for such fees and services, as well as any other costs determined to be necessary to effectuate such transaction or transactions, subject to the approval of the Director of the Division of Budget and Accounting in the Department of the Treasury.
4. (New section) a. The State Treasurer, in consultation with the authority, shall prepare a complete inventory identifying the public broadcasting system's assets and liabilities appropriate for transfer or sale pursuant to sections 5 and 6 of P.L. , c. (C. ) (pending before the Legislature as this bill). The inventory shall include a description and recommendations, if any, concerning the most appropriate mechanism or mechanisms through which a transfer of such assets and liabilities to a qualifying nonprofit corporation or one or more sales to another entity or entities pursuant to P.L. , c. should be accomplished. The inventory shall be completed and copies of the inventory shall be delivered to the Governor, the Speaker of the General Assembly, and the President of the Senate not later than November 1, 2010. The Legislature may object to the inventory or any part thereof by passing a concurrent resolution within 30 days of the delivery of the inventory stating in substance that the Legislature does not favor the inventory or portion thereof. The inventory or any part thereof that is disapproved in this manner may not be acted upon by the State Treasurer.
b. Any assets or properties owned by the State or any department, agency, board, authority, or commission thereof or any county or municipal board, commission, or authority used in the operation of the public broadcasting system or an interest therein, may be leased or licensed, in lieu of an assignment or transfer of such assets or properties, except as may otherwise be prohibited or limited by the terms of any debt issued to acquire such assets or properties, as determined by the State Treasurer.
5. (New section) a. The State Treasurer is authorized to receive and approve, in the State Treasurer's discretion, one or more proposals to transfer all or any part of the assets of the authority to a nonprofit corporation; provided, however, that no such transfer or transfers shall occur unless the State Treasurer shall determine, upon application by or on behalf of the nonprofit corporation, that:
(1) The nonprofit corporation is an educational and charitable corporation validly existing and in good standing under the "New Jersey Nonprofit Corporation Act," P.L.1983, c.127 (N.J.S.15A:1-1 et seq.) and is incorporated, organized and operated in such a manner as to qualify as a nonprofit corporation described in section 501(c)(3) of the federal Internal Revenue Code, 26 U.S.C. s.501(c)(3) or any successor provision that is exempt from taxation pursuant to section 501(a) of the federal Internal Revenue Code, 26 U.S.C. s.501(a) or any successor provision;
(2) The nonprofit corporation's certificate of incorporation and by-laws authorize the receipt of the FCC licenses currently assigned to the authority and the ownership of the assets and liabilities of the authority, and provide that the purposes of the nonprofit corporation include the ownership, maintenance, and operation of a public broadcasting system; and
(3) The nonprofit corporation's by-laws provide or shall have been amended to provide that, from and after the transfer date, the Governor shall have the right to appoint four trustees to the board of trustees of the nonprofit corporation, or, if the board is comprised of eight or less trustees, one less than half of the total number of trustees, with any other vacancies on the board of trustees being filled by the remaining trustees, and shall further provide that the Governor's right to appoint such trustees may not be repealed or modified without the approval of the Governor.
b. Upon the assignment of any broadcasting licenses and the transfer of assets, the nonprofit corporation shall provide public broadcasting services and operate a public broadcasting system consistent with FCC license requirements.
c. Any assets and liabilities, including receivables, shall automatically, without any further act or deed and by operation of law, be assigned, transferred, and conveyed to the nonprofit corporation upon the State Treasurer's approval and shall become vested in the nonprofit corporation, any of which assignments, transfers and conveyances may also be evidenced by such instruments of assignment, transfer, or conveyance as the State Treasurer may approve, and all liabilities listed in a schedule of assets and liabilities, as well as all outstanding obligations and commitments lawfully undertaken or contracted for by the authority in respect of the public broadcasting system, shall be assumed and performed by the nonprofit corporation through the execution, delivery, and performance of such instruments of assumption as the State Treasurer shall prescribe, in each case subject to action by the State Treasurer.
d. The State Treasurer shall take such other actions, and may require the nonprofit corporation to take such other actions, as the State Treasurer deems to be necessary or convenient to implement the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill).
e. The State Treasurer is also authorized to assign, transfer, or convey to the nonprofit corporation from time to time such additional public broadcasting system assets as the State Treasurer deems appropriate to further the purposes of P.L. , c. .
6. (New section) a. As an alternative to a transfer or transfers as authorized by section 5 of P.L. , c. (C. ) (pending before the Legislature as this bill), the State Treasurer is authorized to solicit, receive and approve, in the State Treasurer's discretion, one or more proposals to transfer FCC licenses held by the authority to one or more existing nonprofit entities whose mission is public broadcasting or to other entities who are eligible to operate a public broadcasting system, on such terms and conditions as the State Treasurer shall determine to be in the public interest; provided, however, that the successor nonprofit entity or entities shall maintain a public broadcasting presence in New Jersey.
b. The State Treasurer is further authorized to solicit, receive, and approve, in the State Treasurer's discretion, one or more proposals to sell all or any part of the assets of the authority, other than FCC licenses, to a for-profit corporation, not-for-profit corporation, or other entity, subject to such terms, conditions, limitations, rights of reversion and first refusal, provisions for liquidated damages and other contractual penalty provisions, and such other provisions as the State Treasurer shall determine to be in the public interest; provided, however, that no such transfer shall occur unless the State Treasurer shall determine, upon review of proposals, that maximum value to the State and its citizens will be achieved.
7. (New section) The State Treasurer may receive, continue, or assume any records, liabilities, obligations or commitments of the authority or by written order or other appropriate method make an assignment or transfer thereof to any State department, agency, or instrumentality in order to effectuate the transfer of the State's public broadcasting system to a nonprofit corporation or other entity eligible to operate a public broadcasting system authorized by P.L. , c. (C. ) (pending before the Legislature as this bill). All State departments, agencies, and instrumentalities shall take all necessary measures to effectuate any action taken by the State Treasurer pursuant to P.L. , c. and shall assume and perform any liabilities, obligations, and commitments transferred or assigned to them.
8. (New section) The State Treasurer is authorized to enter into any and all agreements as may be required to carry out any transfer or sale of assets pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill), as well as to set forth the terms and conditions of such transfer or sale.
9. (New section) Upon the transfer of all of the FCC licenses held by the authority, the activities of the authority and the foundation shall cease and the authority and the foundation shall be dissolved. Following the enactment of P.L. , c. (C. ) (pending before the Legislature as this bill), but prior to the transfer of all of the FCC licenses held by the authority, the authority and the foundation shall cooperate fully to ensure the implementation of P.L. , c. . The State Treasurer shall take any and all actions necessary to effectuate the termination of the foundation.
10. (New section) Notwithstanding the provisions of any other law, rule, or regulation to the contrary, contracts may be entered into and assets may be transferred, leased, subleased, licensed, or sublicensed, or authorized to be transferred, leased subleased, licensed, or sublicensed pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill) without the approval of the State House Commission, established pursuant to R.S.52:20-1, the State Leasing and Space Utilization Committee, established pursuant to section 4 of P.L.1992, c.130 (C.52:18A-191.4), or the Office of Leasing Operations in the General Services Administration of the Department of the Treasury, established pursuant to section 3 of P.L.1992, c.130 (C.52:18A-191.3), or of any other person or agency, provided that the contract, transfer, lease, sublease, license, or sublicense has been approved in writing by the State Treasurer.
11. (New section) Public broadcasting system assets transferred, or authorized to be transferred, by contract or otherwise, pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill), may be leased, subleased, licensed, sublicensed, sold, devised, donated, or otherwise disposed of for a nominal or other consideration, in order to effectuate the transfer of the State's public broadcasting system to a nonprofit corporation or other entity eligible to operate a public broadcasting system required by P.L. , c. .
12. Section 3 of P.L.1977, c.44 (C.34:1B-24) is amended to read as follows:
3. a. There is hereby established in but not of the [Department of Labor and Industry] the Division of Business Assistance, Marketing, and International Trade in the New Jersey Economic Development Authority a Motion Picture and Television Development Commission.
b. The commission shall consist of eight public members, no more than four of whom shall be members of the same political party, who shall be appointed by the Governor with the advice and consent of the Senate, and the Chairman of the New Jersey State Council on the Arts, [the Chairman of the Public Broadcasting Authority] and the Commissioner of Labor and [Industry on] Workforce Development or their designees serving in an ex officio capacity. The Governor shall appoint from the [11] ten members a chairman who shall serve in [said] that office at the pleasure of the Governor.
c. The public members of the commission shall be appointed initially for the following terms: three members for a term of [2] two years; three members for a term of [3] three years; and two members for a term of [4] four years. The initial members shall serve from the date of the original appointment for the aforementioned specified terms and until their respective successors shall be duly appointed and qualified. The term of each such appointed member shall be designated by the Governor at the time of his appointment. The successors to the initially appointed members shall each be appointed for a term of [4] four years, except that any person appointed to fill a vacancy shall serve only for the unexpired term.
d. The members of the commission shall serve without compensation, but the commission may reimburse its members for necessary expenses incurred in the discharge of their duties.
(cf: P.L.1977, c.44, s.3)
13. Section 4 of P.L.1972, c.133 (C.52:14E-4) is amended to read as follows:
4. There is hereby created a Governor's Advisory Council for Emergency Services, which shall consist of the Attorney General, who shall be the presiding officer; the Adjutant General of Military and Veterans' Affairs, the Commissioner of Community Affairs, the Commissioner of Environmental Protection, the Commissioner of Transportation, and the President of the Board of Public Utilities [, and the Executive Director of the New Jersey Public Broadcasting Authority] or their designees. The members of the council shall serve without pay in connection with all such duties as are prescribed in [this act] P.L.1972, c.133 (C.52:14E-1 et seq.).
(cf: P.L.1989, c.133, s.5)
14. Section 8 of P.L.1972, c.133 (C.52:14E-8) is amended to read as follows:
8. The council shall be authorized to perform the following functions and exercise the following powers:
a. Review, evaluate and recommend to the Legislature any necessary changes in any existing compact between this State and the federal government or between this State and any other state created for the purposes set forth in this act or develop such compacts where they do not exist.
b. Review, evaluate and periodically recommend changes in existing emergency master plans.
c. Encourage and coordinate comprehensive services available through private organizations and intercommunity cooperations.
d. Authorize expenditures from the fund upon approval of the Governor to provide emergency relief deemed appropriate by the council or to reimburse municipalities or counties for damages or excessive costs sustained as a result of an emergency [or to reimburse the New Jersey Public Broadcasting Authority for the cost of its emergency broadcasts].
e. Utilize the manpower facilities and materials of the various State departments for the purposes of [this act] P.L.1972, c.133 (C.52:14E-1 et seq.).
(cf: P.L.1989, c.133, s.6)
15. (New section) This act shall be liberally construed to effectuate its purposes. All acts and parts of acts inconsistent with any of the provisions of this act are, to the extent of such inconsistencies, superseded and shall be deemed inoperative. If any provision of this act, or the application thereof to any person or circumstance is held invalid, the invalidity shall not affect other provisions or applications of the sections that can be given effect without the invalid provision or application, and to this end the provisions of this act are severable.
16. The following sections are repealed:
Section 14 of P.L.1974, c.26 (C.19:44A-39);
Sections 1 through 10 of P.L.1968, c.405 (C.48:23-1 through C.48:23-10);
Sections 1 and 2 of P.L.1989, c.133 (C.48:23-11 and C.48:23-12);
Sections 1 through 5 of P.L.1990, c.114 (C.48:23-13 through C.48:23-17);
Section 4 of P.L.1989, c.133 (C.52:14E-8.1);
Section 10 of P.L.1987, c.365 (C.52:27H-20.3); and
Section 3 of P.L.1989, c.133 (C.53:1-21.6).
17. Sections 1 through 11 and section 15 of this act shall take effect immediately. Sections 12 through 14 and section 16 of this act shall take effect on January 1, 2011.
STATEMENT
This bill provides for the transfer of the State's public broadcasting system to a nonprofit corporation or other entity eligible to operate a public broadcasting system in light of the cessation of State financial support to the New Jersey Public Broadcasting Authority ("authority") on January 1, 2011. Specifically, the bill abolishes the authority and the Foundation for New Jersey Public Broadcasting ("foundation") on that date. Prior to this date, the bill requires the authority to undertake all acts necessary to accomplish such transfer, including, but not limited to, applying or assisting in applying in the transfer of the Federal Communications Commission ("FCC") licenses held by the authority or other governmental entity for any required approval, executing any authorization or authorizations required to implement the transfer, and seeking any other approval or approvals as may be necessary and convenient to accomplish the transfer.
The bill requires the State Treasurer, in consultation with the authority, to prepare a complete inventory identifying the public broadcasting system's assets and liabilities appropriate for transfer or sale and include a description and recommendations, if any, concerning the most appropriate mechanism or mechanisms through which a transfer of such assets and liabilities to a qualifying nonprofit corporation or one or more sales to another entity or entities should be accomplished. The inventory shall be completed and copies of the inventory shall be delivered to the Governor, the Speaker of the General Assembly, and the President of the Senate not later than November 1, 2010. The Legislature may object to the inventory or any part thereof by passing a concurrent resolution within 30 days of the delivery of the inventory stating in substance that the Legislature does not favor the inventory or portion thereof. The inventory or any part thereof that is disapproved in this manner may not be acted upon by the State Treasurer.
The bill authorizes the State Treasurer to receive and approve one or more proposals to transfer all or any part of the assets of the authority to a nonprofit corporation; provided, however, that no such transfer or transfers shall occur unless the State Treasurer shall determine, upon application by or on behalf of the nonprofit corporation, that: 1) the nonprofit corporation is an educational and charitable corporation validly existing and in good standing under the "New Jersey Nonprofit Corporation Act," P.L.1983, c.127 (N.J.S.15A:1-1 et seq.) and is incorporated, organized and operated in such a manner as to qualify as a nonprofit corporation described in section 501(c)(3) of the federal Internal Revenue Code, 26 U.S.C. s.501(c)(3) (or any successor provision) that is exempt from taxation pursuant to section 501(a) of the federal Internal Revenue Code, 26 U.S.C. s.501(a) (or any successor provision); 2) the nonprofit corporation's certificate of incorporation and by-laws authorize the receipt of the FCC licenses currently assigned to the authority and the ownership of the assets and liabilities of the authority, and provide that the purposes of the nonprofit corporation include the ownership, maintenance, and operation of a public broadcasting system; and 3) the nonprofit corporation's by-laws provide or shall have been amended to provide that, from and after the transfer date, the Governor shall have the right to appoint four trustees to the board of trustees of the nonprofit corporation, or, if the board is comprised of eight or less trustees, one less than half of the total number of trustees, with any other vacancies on the board of trustees being filled by the remaining trustees, and shall further provide that the Governor's right to appoint such trustees may not be repealed or modified without the approval of the Governor. Upon the assignment of any broadcasting licenses and the transfer of assets, the nonprofit corporation shall provide public broadcasting services and operate a public broadcasting system consistent with FCC license requirements. Any assets and liabilities, including receivables, shall automatically, without any further act or deed and by operation of law, be assigned, transferred, and conveyed to the nonprofit corporation upon the State Treasurer's approval and shall become vested in the nonprofit corporation (any of which assignments, transfers, and conveyances may also be evidenced by such instruments of assignment, transfer, or conveyance as the State Treasurer may approve), and all liabilities listed in a schedule of assets and liabilities, as well as all outstanding obligations and commitments lawfully undertaken or contracted for by the authority in respect of the public broadcasting system, shall be assumed and performed by the nonprofit corporation through the execution, delivery, and performance of such instruments of assumption as the State Treasurer shall prescribe, in each case subject to action by the State Treasurer.
As an alternative to a transfer or transfers as authorized by the bill, the State Treasurer is authorized to solicit, receive and approve, in the State Treasurer's discretion, one or more proposals to transfer FCC licenses held by the authority to one or more existing nonprofit entities whose mission is public broadcasting or to other entities who are eligible to operate a public broadcasting system, on such terms and conditions as the State Treasurer shall determine to be in the public interest; provided, however, that the successor nonprofit entity or entities shall maintain a public broadcasting presence in New Jersey. The bill further authorizes the State Treasurer to solicit, receive, and approve, in the State Treasurer's discretion, one or more proposals to sell all or any part of the assets of the authority, other than FCC licenses, to a for-profit corporation, not-for-profit corporation, or other entity, subject to such terms, conditions, limitations, rights of reversion and first refusal, provisions for liquidated damages and other contractual penalty provisions, and such other provisions as the State Treasurer shall determine to be in the public interest; provided, however, that no such transfer shall occur unless the State Treasurer shall determine, upon review of proposals, that maximum value to the State and its citizens will be achieved.
The bill authorizes the State Treasurer to enter into any and all agreements as may be required to carry out any transfer or sale of assets pursuant to the bill's provisions, as well as to set forth the terms and conditions of such transfer or sale.
The bill provides that, upon the transfer of all of the FCC licenses held by the authority, the activities of the authority and the foundation shall cease and the authority and the foundation shall be dissolved. Following the enactment of the bill, but prior to the transfer of all of the FCC licenses held by the authority, the authority and the foundation shall cooperate fully to ensure the implementation of the bill's provisions. The State Treasurer shall take any and all actions necessary to effectuate the termination of the foundation.
The bill provides that contracts may be entered into and assets may be transferred, leased, subleased, licensed, or sublicensed, or authorized to be transferred, leased subleased, licensed, or sublicensed pursuant to the bill's provisions without the approval of the State House Commission, the State Leasing and Space Utilization Committee, or the Office of Leasing Operations in the General Services Administration of the Department of the Treasury, or of any other person or agency, provided that the contract, transfer, lease, sublease, license or sublicense has been approved in writing by the State Treasurer.
The bill provides that public broadcasting system assets transferred, or authorized to be transferred, by contract or otherwise, pursuant to the bill's provisions, may be leased, subleased, licensed, sublicensed, sold, devised, donated or otherwise disposed of for a nominal or other consideration, in order to effectuate the transfer of the State's public broadcasting system to a nonprofit corporation or other entity eligible to operate a public broadcasting system as required by the bill.
The bill repeals, on January 1, 2011, those provisions of law that establish the authority and the foundation, as well as their duties and responsibilities.
Finally, the bill removes the membership of a representative of the authority from the Motion Picture and Television Development Commission and the Governor's Advisory Council for Emergency Services and removes the provision of the council's statute that reimburses the authority for the cost of the authority's emergency broadcasts.
