Bill Text: NJ S827 | 2010-2011 | Regular Session | Introduced
Bill Title: Clarifies tax status of certain construction projects undertaken at State and county colleges through public-private partnerships and eliminates the sunset provision for such projects.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Failed) 2010-01-19 - Withdrawn from Consideration [S827 Detail]
Download: New_Jersey-2010-S827-Introduced.html
Sponsored by:
Senator RAYMOND J. LESNIAK
District 20 (Union)
Senator JIM WHELAN
District 2 (Atlantic)
SYNOPSIS
Clarifies tax status of certain construction projects undertaken at State and county colleges through public-private partnerships and eliminates the sunset provision for such projects.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning certain construction projects at State and county colleges and amending P.L.2009, c.90.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 43 of P.L.2009, c.90 (C.18A:64-85) is amended to read as follows:
43. a. A State college or county college may enter into a contract with a private entity, subject to subsection f. of this section, to be referred to as a public-private partnership agreement, that permits the private entity to assume full financial and administrative responsibility for the on-campus construction, reconstruction, repair, alteration, improvement or extension of a building, structure, or facility of the institution, provided that the project is financed in whole by the private entity and that the State or institution of higher education, as applicable, retains full ownership of the land upon which the project is completed. As the carrying out of any project described herein shall constitute the performance of an essential public function, the project, provided it is not owned by or leased to a for-profit entity, shall at all times be exempt from property taxation and special assessments of the State, or any municipality, or other political subdivision of the State.
b. A private entity that assumes financial and administrative responsibility for a project pursuant to subsection a. of this section shall not be subject to the procurement and contracting requirements of all statutes applicable to the institution of higher education at which the project is completed, including, but not limited to, the "State College Contracts Law," P.L.1986, c.43 (C.18A:64-52 et seq.), and the "County College Contracts Law," P.L.1982, c.189 (C.18A:64A-25.1 et seq.).
c. Each worker employed in the construction, rehabilitation, or building maintenance services of facilities by a private entity that has entered into a public-private partnership agreement with a State or county college pursuant to subsection a. of this section shall be paid not less than the prevailing wage rate for the worker's craft or trade as determined by the Commissioner of Labor and Workforce Development pursuant to P.L.1963, c.150 (C.34:11-56.25 et seq.) and P.L.2005, c.379 (C.34:11-56.58 et seq.).
d. (1) All construction
projects under a public-private partnership agreement entered into pursuant to
this section shall contain a project labor agreement. The project labor
agreement shall be subject to the provisions of P.L.2002, c.44 (C.52:38-1 et
seq.), and shall be in a manner that to the greatest extent possible enhances
employment opportunities for individuals residing in the county of
the project's location. Further, the general contractor, construction manager,
design-build team, or subcontractor for a construction project proposed in
accordance with this paragraph shall be registered pursuant to the provisions
of P.L.1999, c.238 (C.34:11-56.48 et seq.), and shall be classified by the
Division of Property Management and Construction to perform work on a
public-private partnership higher education project. All construction projects
proposed in accordance with this paragraph shall be submitted to the New Jersey
Economic Development Authority for its review and approval and, when
practicable, are encouraged to adhere to the Leadership in Energy and
Environmental Design Green Building Rating System as adopted by the United
States Green Building Council.
(2) Where no public fund has been established for the financing of a public improvement, the chief financial officer of the public owner shall require the private entity for whom the public improvement is being made to post, or cause to be posted, a bond guaranteeing prompt payment of moneys due to the contractor, his or her subcontractors and to all persons furnishing labor or materials to the contractor or his or her subcontractors in the prosecution of the work on the public improvement.
e. A general contractor, construction manager, design-build team, or subcontractor shall be registered pursuant to the provisions of P.L.1999, c.238 (C.34:11-56.48 et seq.), and shall be classified by the Division of Property Management and Construction to perform work on a public-private partnership higher education project.
f. (1) [On or before the first day of the nineteenth month next following enactment of P.L.2009, c.90, all] All projects proposed in accordance with this section shall be submitted to the New Jersey Economic Development Authority for its review and approval. The projects are encouraged, when practicable, to adhere to the green building manual prepared by the Commissioner of Community Affairs pursuant to section 1 of P.L.2007, c.132 (C.52:27D-130.6). [Any application that is deemed to be incomplete on the first day of the nineteenth month next following enactment of P.L.2009, c.90 shall not be eligible for consideration.]
(2) (a) In order for an application to be complete and considered by the authority it shall include, but not be limited to: (i) a public-private partnership agreement between the State or county college and the private developer; (ii) a full description of the project; (iii) the estimated costs and financial documentation for the project; (iv) a timetable for completion of the project extending no more than five years after consideration and approval; and (v) any other requirements that the authority deems appropriate or necessary.
(b) As part of the estimated costs and financial documentation for the project the application shall contain a long-range maintenance plan and shall specify the expenditures that qualify as an appropriate investment in maintenance. This long-range maintenance plan shall be approved by the authority pursuant to regulations promulgated by the authority that reflect national building maintenance standards and other appropriate building maintenance benchmarks. All contracts to implement a long-range maintenance plan pursuant to this paragraph shall contain a project labor agreement. The project labor agreement shall be subject to the provisions of P.L.2002, c.44 (C.52:38-1 et seq.), and shall be in a manner that to the greatest extent possible enhances employment opportunities for individuals residing in the county of the project's location.
(3) The authority shall review all completed applications, and request additional information as is needed to make a complete assessment of the project. No project shall be undertaken until final approval has been granted by the authority; provided, however, that the authority shall retain the right to revoke approval if it determines that the project has deviated from the plan submitted pursuant to paragraph (2) of this subsection.
(4) The authority may promulgate any rules and regulations necessary to implement this subsection, including provisions for fees to cover administrative costs.
Where no public fund has been established for the financing of a public improvement, the chief financial officer of the public owner shall require the private entity for whom the public improvement is being made to post, or cause to be posted, a bond guaranteeing prompt payment of moneys due to the contractor, his or her subcontractors and to all persons furnishing labor or materials to the contractor or his or her subcontractors in the prosecution of the work on the public improvement.
(cf: P.L.2009, c.90, s.43)
2. This act shall take effect immediately.
STATEMENT
Pursuant to provisions of the "New Jersey Economic Stimulus Act of 2009," P.L.2009, c.90, a State college or county college may enter into a contract with a private entity, under certain conditions, that permits the private entity to assume full financial and administrative responsibility for a construction or improvement project, provided that the project is financed in whole by the private entity and that the ownership of the land remains with the State or institution of higher education, as applicable. This bill clarifies that such a project is exempt from property taxation and special assessments of the State, a municipality, or other political subdivision of the State.
Also, under current law, a project must be submitted to the New Jersey Economic Development Authority for its review and approval within nineteen months of the law's original effective date, July 28, 2009. The bill removes this time limit on the submission and approval of projects.
