Bill Text: NJ S1978 | 2016-2017 | Regular Session | Introduced
Bill Title: Permits municipalities impacted by Hurricane Sandy to borrow for current expenses through December 31, 2017, and repay special emergency notes over a 10-year period.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2016-03-14 - Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee [S1978 Detail]
Download: New_Jersey-2016-S1978-Introduced.html
Sponsored by:
Senator CHRISTOPHER J. CONNORS
District 9 (Atlantic, Burlington and Ocean)
SYNOPSIS
Permits municipalities impacted by Superstorm Sandy to borrow for current expenses through December 31, 2017, and repay special emergency notes over a 10-year period.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the fiscal affairs of municipalities impacted by certain natural disasters and amending 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. (1) 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 unless permitted under paragraph (2) of this subsection, and payment of obligations (other than those for temporary financing).
(2) current expenses through December 31, 2017, if the municipality's ratable base and revenue collections have been negatively impacted by Superstorm Sandy; 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).
d. 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:4-53 is amended to read as follows:
40A:4-53. A local unit may adopt an ordinance authorizing special emergency appropriations for the carrying out of any of the following purposes:
a. Preparation of an approved tax map.
b. 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.
c. Preparation of a revision and codification of its ordinances.
d. 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.
e. Preparation of drainage maps for flood control purposes.
f. Preliminary engineering studies and planning necessary for the installation and construction of a sanitary sewer system.
g. 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 the "Uniform Shared Services and Consolidation Act," sections 1 through 35 of P.L.2007, c.63 (C.40A:65-1 through C.40A:65-35).
h. 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.
i. Preparation of a sanitary or storm system map.
j. Liabilities incurred to the Department of Labor and Workforce Development for the reimbursement of unemployment benefits paid to former employees.
k. Payment of current expenses through December 31, 2017, in the case of a municipality whose ratable base and revenue collections have been negatively impacted by Superstorm Sandy.
A copy of all ordinances or resolutions as adopted relating to special emergency appropriations shall be filed with the director.
(cf: P.L.2015, c.95, s.39)
3. N.J.S.40A:4-55 is amended to read as follows:
40A:4-55. After the adoption of an ordinance or resolution for special emergency 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 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 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.
d. Notwithstanding the provisions of subsections b. and c. of this section, with respect to an appropriation funded through special emergency notes issued by a municipality whose ratable base and revenue collections have been negatively impacted by Superstorm Sandy, at least 1/10 of the amount thereof shall be included in each annual budget until the appropriation has been fully provided for.
(cf: N.J.S.40A:4-55)
4. This act shall take effect immediately and shall be retroactive to October 29, 2012.
STATEMENT
This bill would permit municipalities whose ratable base and revenue collections have been negatively impacted by Superstorm Sandy, to borrow money or issue its obligations to fund current expenses through December 31, 2017, and to authorize special emergency appropriations for current expenses, financed for a period not to exceed 10 years. Under current law, municipalities cannot borrow money to fund current expenses.
The bill would be retroactive to October 29, 2012.
