SENATE, No. 428
STATE OF NEW JERSEY
210th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2002 SESSION
Sponsored by:
Senator WAYNE R. BRYANT
District 5 (Camden and Gloucester)
Senator MARTHA W. BARK
District 8 (Burlington)
Co-Sponsored by:
Senator Kyrillos
SYNOPSIS
Designated the "Camden Rehabilitation and Economic Recovery Act;" authorizes issuance of bonds and makes appropriations.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
(Sponsorship Updated As Of: 6/7/2002)
An Act encouraging municipal rehabilitation and economic recovery in certain fiscally distressed municipalities, amending P.L.1974, c.80, P.L.1979, c.303 and P.L.1991, c.266, creating chapter 27BBB of Title 52 of the Revised Statutes, and making appropriations.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
ARTICLE 1. GENERAL PROVISIONS
1. (New section) This act shall be known and may be cited as the "Camden Rehabilitation and Economic Recovery Act."
2. (New section) The Legislature finds and declares that:
a. There exists in Camden a continuing state of fiscal distress which endures despite the imposition of a series of measures authorized pursuant to law;
b. Economically impoverished, the City of Camden has a history of high crime rates, including arson, that has necessitated the maintenance of large police and fire departments, at enormous taxpayer cost in a city without a sound tax base;
c. The past fifty years have witnessed the depopulation of the City of Camden such that its population of 79,904 under the 2000 census shows a loss of more than 40,000 persons compared to the city's population at the end of the Second World War;
d. Spending power on the part of city residents is severely limited, reflected by its per capita income which, at $7,276, is the lowest in New Jersey, and its median household income which, in 2000, was only $21,944, compared with the $56,650 median for all households in New Jersey; these figures indicate that local businesses suffer from the lack of local disposable income, and that rebuilding the fortunes of city residents in order to recreate a viable urban economy will require a considerable period of time;
e. Notwithstanding the current prosperity which is unprecedented in terms of its force and duration, Camden's unemployment rate of over 13 percent is more than three times the rate for the rest of the State;
f. While the rest of New Jersey has enjoyed a boom in land values, Camden's ratable base has declined steadily during the 1990's, marked by its low equalized value per capita which is about one-half that of other cities;
g. Coupled with this economic deprivation is a city government which is characterized by a well-documented lack of internal audit controls, accountability and oversight, evidenced by the fact that although real estate taxes comprise over two-thirds of locally generated revenues, the city does not rigorously enforce collection and currently receives only about 77 percent of its levy;
h. Although the State has experienced a period of tremendous prosperity and economic growth over the past few years, the City of Camden continues to languish without any obvious signs of improvement;
i. The city has experienced a substantial budget deficit for many years which has only been addressed through extraordinary payments of State aid;
j. While State aid dollars which have been directed toward Camden have served to address its structural deficits, they have not, and cannot, function as an economic impetus toward the rebuilding of the city;
k. The Camden County Municipal Utilities Authority has also committed to providing extraordinary assistance to the economic recovery of the city by offering to waive sewer hook up fees for a certain period of time and to finance improvements to the city water and sewer system, estimated at $30 million;
l. Because a significant proportion of Camden's population lacks adequate health insurance coverage, causing many to seek basic care in the city's emergency rooms, the city's hospitals are heavily dependent upon state assistance commonly referred to as "charity care" for reimbursement. Recognizing this problem, the Delaware River Port Authority has committed itself to providing assistance to a federally qualified health organization designed to meet the needs of this population;
m. Given the city's history of high crime rates, if economic recovery is to be successful, it is vital the city residents feel that their basic safety is assured; accordingly, the State has committed to assist the city in maintaining not less than the 391 police officers employed by the city on the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) during the period that the city is under rehabilitation and economic recovery;
n. In order to ensure the long-term economic viability of the City of Camden, it is critical that the Legislature encourage, to the extent possible, the production of market-rate housing within the city so as to expand the local tax base and provide a greater diversity of income levels among the city's inhabitants;
o. When faced with analogous situations, other states have employed extraordinary measures to provide leadership and oversight for struggling cities and the necessary tools to spur an economic revival within those cities; and
p. In light of the dire needs faced by the city and the lack of progress in addressing those needs either governmentally or through private sector initiative, and given the successful interventions on the part of other states in analogous circumstances, it is incumbent upon the State to take exceptional measures, on an interim basis, to rectify certain governance issues faced by the city and to strategically invest those sums of money necessary in order to assure the long-term financial viability of the City of Camden.
3. (New section) The Legislature therefore resolves that extraordinary measures are urgently called for in order to rehabilitate the City of Camden and restore its economic vitality, without which the city will continue to languish. Accordingly, this act establishes a pilot program for a limited period of time during which considerable sums of State money will be invested in the City of Camden with appropriate State supervision by a chief operating officer who is accountable to both city elected officials and the State. This pilot program reflects the understanding that the enormity of the investment required in the city and the level of State assistance to be provided to the chief operating officer preclude the utilization of this approach statewide; if, however, this approach is successful in reversing years of decline in the City of Camden, it may then be applied in other analogous situations.
4. (New section) As used in this act:
"Authority" means the New Jersey Economic Development Authority established pursuant to P.L.1974, c.80 (C.34:1B-1 et seq.);
"Board" means the State Economic Recovery Board for the City of Camden established pursuant to section 40 of P.L. , c. (C. ) (pending before the Legislature as this bill).
"Chief operating officer" means that person appointed pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill) responsible for reorganizing governmental operations of the City of Camden in order to assure the delivery of essential municipal services and the professional administration of that municipal government.
"Commissioner" means the Commissioner of Community Affairs.
"Director" means the Director of the Division of Local Government Services in the Department of Community Affairs.
"Economic recovery term" means the period commencing with the expiration of the term of the chief operating officer and terminating five years thereafter.
"In consultation with" means with consideration of the input of, or the advice of, the mayor, chief operating officer or director, as the case may be, without regard to the form or manner of the consultation.
"Local Finance Board" means the Local Finance Board of the Division of Local Government Services in the Department of Community Affairs.
"Rehabilitation term" means that period during which the City of Camden is under the direction of the chief operating officer appointed pursuant to section 7 of P.L. , c. (C. ) (pending before the Legislature as this bill).
"Special arbitrator" means that judge designated by the Chief Justice pursuant to section 5 of P.L. , c. (C. ) (pending before the Legislature as this bill).
"State supervision" means supervision pursuant to Article 4 of the "Local Government Supervision Act (1947)," P.L.1947, c.151 (C.52:27BB-54 et seq.).
"Treasurer" or "State treasurer" means the Treasurer of the State of New Jersey.
"Under rehabilitation and economic recovery" means that period which coincides with the rehabilitation term and the economic recovery term.
ARTICLE 2. GOVERNANCE
5. (New section) Upon the enactment of the "Camden Rehabilitation and Economic Recovery Act," P.L. , c. (C. ) (pending before the Legislature as this bill), the Chief Justice shall designate a Superior Court judge that sits within the vicinage of Camden County as the special arbitrator as prescribed pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill). The special arbitrator shall, on an expedited basis, oversee the resolution of any impasse brought before the special arbitrator by the chief operating officer pursuant to sections 9, 11, 16 and 22, of P.L. , c. (C. ) ( pending before the Legislature as this bill) or by the mayor during the economic recovery term, as the case may be, or with respect to any other impasse resulting from any action or failure to act on the part of the mayor, during the rehabilitation term, or the governing body. The special arbitrator shall use the following criteria in dispute resolution, as appropriate to the particular circumstances:
a. The action or failure to act would be adverse to the rehabilitation or economic recovery of the city;
b. The action in question or failure to act would represent an unsound decision in violation of the fiduciary responsibility of the city officials;
c. The action or failure to act would be inconsistent with internal financial controls or would violate prudent standards or practices of municipal administration or would violate or compromise State laws, rules or regulations under which the city operates.
6. (New section) a. Upon the effective date of the "Camden Rehabilitation and Economic Recovery Act," P.L. , c. (C. ) (pending before the Legislature as this bill), the City of Camden shall be under rehabilitation and economic recovery. This period shall begin with the assumption of job responsibilities by the chief operating officer pursuant to this section and terminate five years following the end of the term of the chief operating officer. The period corresponding with the term of the chief operating officer shall be referred to hereinafter as the rehabilitation term. The period commencing with the expiration of the term of the chief operating officer and terminating five years thereafter shall be referred to hereinafter as the economic recovery term.
b. During the economic recovery term, the mayor shall exercise those powers delegated to the mayor pursuant to the form of government, the charter and the administrative code of the municipality, and those powers delegated to the mayor under general law. In addition, during the economic recovery term, the mayor shall retain the power to: (1) refer to the special arbitrator for resolution any impasse which arises during that time, pursuant to sections 9, 11, 16 and 22, as the case may be, of P.L. , c. (C. ) (pending before the Legislature as this bill); and (2) veto the minutes of any independent board or authority, including, but not limited to, the housing authority, parking authority, redevelopment authority, planning board and board of adjustment.
While the city is under rehabilitation and economic recovery, the mayor shall retain the power to make those appointments to municipal authorities, boards or commissions, as the case may be, which is otherwise allocated to the mayor pursuant to law.
The mayor may retain staff for the purpose of advising the mayor and aiding in the performance of constituent services.
c. Upon the assumption of job responsibilities by the chief operating officer, the financial review board created pursuant to section 5 of P.L.1999, c.156 (C.52:27D-118.30a) to oversee the finances of the City of Camden shall cease to function and the municipality shall cease to be under supervision pursuant to Article 4 of P.L.1947, c.151 (C.52:27BB-54 et seq.). All outstanding debts or obligations previously incurred by the City of Camden with any department, agency, authority or other agency or instrumentality of the State, other than those debts or obligations represented by bonds or other negotiable instruments, shall be assumed by the State, subject to appropriation.
Notwithstanding the termination of the financial review board and supervision, all memorandums of understanding entered into by the city as a condition of receiving assistance under P.L.1987, c.75 (C.52:27D-118.24 et seq.) that require the city to implement any government, administrative, operational efficiency or oversight measures necessary for the fiscal recovery of the municipality as recommended by the director and approved by the board shall continue to have full force and effect.
7. (New section) a. Within 30 days following the enactment of P.L. , c. (C. ), the commissioner shall undertake a nationwide search for candidates for the position of chief operating officer. Following upon the search, the commissioner, in consultation with the mayor, shall submit two nominees for the position to the mayor, who shall select one of the candidates and submit that nomination to the city council. Along with the names of the nominees, the commissioner shall submit the curriculum vitae of each nominee. Each of the nominees shall be qualified by training and experience for the position and shall have at least 10 years of experience in the management or supervision of government activities, three years of which may be substituted by an advanced degree in business, law, or public administration.
b. At the next council meeting occurring not less than 14 days following the submission of nominees to the council by the mayor, the council shall appoint one of the nominees as the chief operating officer of the municipality. Selection shall be by a majority of the fully authorized membership of the city council. In the event of a failure to select one of the two nominees within seven days following the next meeting of council pursuant to this subsection but not later than 30 days following the submission of the nominee by the mayor, the commissioner shall make the appointment.
c. Pending the appointment of a chief operating officer or, in the event of the death, resignation, removal or inability of the chief operating officer to discharge the duties of that office, the functions, powers and duties of the chief operating officer shall devolve upon the director, for the time being, until a chief operating officer is appointed or is able to discharge the duties of that office. In the event that the chief operating officer appointed after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) does not serve out the chief operating officer's term of office for any reason, the selection process shall be recommenced in accordance with the provisions of this section.
d. The term of the chief operating officer shall terminate five years following the assumption of duties on the part of the chief operating officer. The chief operating officer may be a State employee in the unclassified service of Title 11A, Civil Service, of the New Jersey Statutes or may be hired under contract, as provided hereunder. Notwithstanding any other provision of law, no person so appointed shall acquire tenure.
If the chief operating officer is hired under contract, the person hired shall meet the qualifications set forth herein, and it shall be clear from the contract that the position is full-time and that the job site is the City Hall of the City of Camden. If, for any reason, a person engaged under contract is unable to fulfill the job responsibilities of chief operating officer, the selection process shall be recommenced in accordance with the provisions of this section.
If the chief operating officer is hired under contract, the contract shall be available for public inspection in the office of the municipal clerk.
e. Subject to the approval of the commissioner, the salary, benefits and costs of the chief operating officer shall be fixed by the director and adjusted from time to time as the director deems appropriate. The salary, benefits, and costs of the chief operating officer shall be an expense of the State.
8. (New section) a. At the end of four years following the commencement of duties by the chief operating officer, the chief operating officer shall submit a report to the Governor, each member of the State Economic Recovery Board for the City of Camden, each member of the Senate and General Assembly, the mayor and each member of the governing body of the City of Camden. The report shall evaluate progress made in rehabilitating the City of Camden and the status of economic recovery efforts. The report shall include an enumeration of any problems or hurdles encountered in rehabilitation and economic recovery and, where applicable, recommendations for any amendments to State law which would promote and encourage rehabilitation and economic recovery. If the chief operating officer anticipates that the rehabilitation term will be insufficient to achieve rehabilitation goals, the chief operating officer shall include in the report a detailed analysis of the causes for the municipality's inability to reestablish local control and an assessment of the amount of time necessary for the continuation of the period of the rehabilitation term.
In addition to the foregoing, the report shall include detailed information as to how those funds appropriated pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill) are being spent and how those expenditures are serving to promote the economic revitalization of the City of Camden.
b. Within 30 days of receipt of the report by members of the Legislature, a hearing shall be held by the Senate Community and Urban Affairs Committee and the Assembly Local Government Committee, or their successors, to provide an opportunity for public comment and discussion.
9. (New section) a. Upon the appointment of the chief operating officer by the city council pursuant to subsection b. of section 7 of P.L. , c. (C. ) (pending before the Legislature as this bill), all the functions, powers and duties heretofore or hereafter assigned by any statute, regulation, ordinance, resolution, charter or contract for municipal operations, municipal organization and reorganization, development and implementation of workforce training programs, and the hiring and firing of department heads, managers and supervisory employees shall be reallocated to the chief operating officer. The chief operating officer shall exercise those functions, powers and duties in consultation with the mayor as are hereinafter provided.
Notwithstanding the appointment of the chief operating officer by the city council, the chief operating officer shall report to and serve at the pleasure of the commissioner.
b. Except as otherwise provided in P.L. , c. (C. ) (pending before the Legislature as this bill), the chief operating officer shall have the power to perform all acts and do all things consistent with law necessary for the proper conduct, maintenance, rehabilitation and supervision of the City of Camden. The chief operating officer may propose ordinances, resolutions, rules, policies and guidelines, not inconsistent with law, for the proper conduct, maintenance and supervision of the municipality.
In addition, notwithstanding the provisions of the "Long Term Tax Exemption Law," P.L.1991, c.431 (C.40A:20-1 et seq.), the chief operating officer may negotiate financial agreements and otherwise exercise the powers of the governing body pursuant thereto, including making available municipal land in order to facilitate a project pursuant to section 17 of P.L.1991, c.431 (C.40A:20-17). Any such agreements negotiated by the chief operating officer shall be presented to the city council for the information of the council members.
Ordinances and resolutions shall be adopted or amended as provided by law except that the chief operating officer shall exercise the functions, powers and duties of the chief executive officer.
c. The functions, powers and duties reallocated to the chief operating officer pursuant to this section shall include, but not be limited to those powers allocated to the mayor which are found in the charter and administrative code of the municipality, Titles 40 and 40A generally and specifically in the "Local Bond Law," N.J.S.40A:2-1 et seq., the "Local Budget Law," N.J.S.40A:4-1 et seq., the "Local Fiscal Affairs Law," N.J.S.40A:5-1 et seq., the "Local Public Contracts Law," P.L.1971, c.198 (C.40A:11-1 et seq.), any specific form of government law according to which the municipality is governed, and such other sections or other laws necessary to the governance and administration of a municipality, the control of litigation, and the determination of service levels as provided in this section.
During the rehabilitation term, the chief operating officer shall exercise the veto power of the mayor with respect to municipal ordinances; provided, however, that the chief operating officer may delegate the veto power to the mayor. In addition, during the rehabilitation term, the chief operating officer shall have the power to veto the minutes of any independent board or authority, including, but not limited to, the housing authority, parking authority, redevelopment authority, planning board and board of adjustment.
During the rehabilitation term, the chief operating officer may refer any matter involving any action or failure to act to the special arbitrator.
d. Subject to the approval of the director, the chief operating officer may appoint a confidential secretary and executive assistant who shall be State employees and serve in the unclassified service of the Civil Service. The salary and benefits of these appointees shall be fixed by the director and adjusted from time to time as the director deems appropriate. The salary, benefits, and costs of these appointees shall be an expense of the State.
These appointees shall serve at the pleasure of the chief operating officer.
10. (New section) The chief operating officer may:
a. Sue in the municipality's corporate name and submit disputes and controversies to arbitration and determination in the manner provided by law;
b. Retain municipal corporation counsel and such other special counsel as the chief operating officer may deem necessary to carry out the functions, powers and duties set forth in P.L. , c. (C. ) (pending before the Legislature as this bill); and
c. Request the State Treasurer to provide no interest loans to the municipality for cash flow purposes. Notwithstanding any other provision of law relating to the transfer of sums appropriated to a State agency, the treasurer is empowered to direct the Director of the Division of Budget and Accounting to transfer from any State department to any other State department sums as may be necessary to provide a loan on the terms and conditions that the treasurer deems appropriate.
11. (New section) Within 30 days of the assumption of job responsibilities on the part of the chief operating officer, the chief operating officer shall, in consultation with the mayor, recommend the interim appointment of department heads and submit the list of nominees to the council for confirmation. The department heads shall include a business administrator, or functional equivalent thereof, who shall not be the chief operating officer. The city council may only reject a candidate by a 2/3 vote of the fully authorized membership of the city council. In the event of an impasse in the appointment process, the matter shall be decided by the special arbitrator, whose decision shall not be subject to appeal. In making a determination pursuant to this subsection, the special arbitrator shall uphold the recommended appointment if, by any objective measure, the person under consideration for that position is qualified by reason of experience, education or training.
These interim appointees shall fulfill those responsibilities delegated to them by the chief operating officer pending the completion of the municipal management study by the chief operating officer pursuant to section 12 of P.L. , c. (C. ) (pending before the Legislature as this bill).
12. (New section) a. Within 30 days following the submission of interim department head appointments to the city council, the chief operating officer, in consultation with the mayor, shall undertake the preparation of a municipal management study which analyzes the current state of all services provided by each municipal department and the service levels provided in similarly situated municipalities and shall call upon experts or State government officials, as necessary, in order to identify the options available to achieve appropriate levels of service. The study shall include police and fire services provided by the municipality.
b. The study shall include reference to those studies previously completed by the State during the period of supervision or the operation of the financial review board, including the City of Camden Multi-Year Recovery Plan for Fiscal Years 2001-2003 prepared by Public Financial Management, November 2000, and any other relevant studies.
c. The study shall be completed no later than nine months following the appointment of the interim department heads.
d. The study shall include a review of the municipal organizational plan, the management structure of each department, and the specific personnel needs within each department and unit therein necessary to achieve the levels of service identified in the study as appropriate for the City of Camden.
With regard to public safety services, the study shall analyze the current state of services provided in light of such performance measures as calls per officer and call response time and make recommendations for current and future staffing levels in order to realize appropriate levels of service.
In addition, the study shall include an assessment of the current state of computerization of municipal operations, the extent to which technology and mechanization are used to increase the efficiency of municipal operations, and, in particular, the extent to which geographic information systems are used to assist in municipal resource allocation, and recommendations for ways in which those operations may be made more efficient and accessible to the public through the use of computers and technological innovation, including the use of geographic information systems.
e. Following from this review, the study shall include any recommendations for the reorganization of municipal government structure considered necessary in order to achieve the more efficient, orderly, cost-effective and professional delivery of municipal services.
In addition, the study shall include an analysis and recommendations concerning appropriate pay scales for department heads in order to assist the chief operating officer in recruiting persons with the training and experience necessary to effectuate their job responsibilities.
f. Notwithstanding any other law, rule or regulation to the contrary, the municipal management study shall include an evaluation of the qualification levels of departmental employees in light of their assigned tasks and an identification of training opportunities to assist those employees in better performing their assigned duties, including a program of computer and technology training. The chief operating officer may call upon the Commissioner of Personnel or other appropriate State government appointees or officers in order to perform this evaluation and provide appropriate training.
g. Upon completion, the study shall be distributed to the mayor, each member of the city council and the Commissioner of Community Affairs. In addition, the study shall be available for public inspection.
h. Following from the municipal management study, the chief operating officer shall prepare the necessary amendments to the municipality's administrative code and ordinance, including salary ordinances, which follow from the recommendations in the study. These ordinances and amendments should be included as an appendix to the municipal management study.
The mayor and the city council shall be kept apprised of the progress of the municipal management study and shall cooperate with the chief operating officer and provide that information and documentation necessary to assure the expeditious completion of the study.
13. (New section) a. Upon the completion of the municipal management study by the chief operating officer, the chief operating officer shall make available for public inspection a copy of the study in the office of the municipal clerk and each branch of the public library within the municipality.
b. The chief operating officer shall cause notice to be published in a newspaper circulating within the municipality that the study is available for public inspection, not less than 14 days before the meeting of the city council at which the study is to be voted on.
c. The municipal management study shall become the official operating plan for the municipality unless the city council rejects the study by a 2/3 vote of the fully authorized membership of the city council within 30 days following the publication of notice pursuant to subsection b. of this section. If the city council has not acted within that 30 day period, the study shall be considered adopted.
d. Upon the adoption of the municipal management study, the chief operating officer, in consultation with the director, shall establish a salary scale for each department head. To the extent that the established salaries exceed those paid by the city at the commencement of the rehabilitation term, the State shall absorb the increased expense for salaries and benefits during the rehabilitation term, and for two years thereafter, subject to appropriation.
e. Once the chief operating officer has established the salary scale and the municipal management study has been adopted, the chief operating officer shall cause to be prepared proposed ordinances effectuating the salary scales and those amendments to the administrative code necessary to implement the municipal management study.
14. (New section) For the purposes of Title 11A, Civil Service, of the New Jersey Statutes, the chief operating officer shall act as the appointing authority.
The Commissioner of Personnel, in conjunction with the chief operating officer, shall design a remedial Human Resource Plan for the City of Camden which best supports the efficient and effective delivery of services to the residents of the municipality. This plan may include, but need not be limited to, such measures as delegation of specified personnel functions, pilot programs, and streamlined appointment processes and shall remain in place during the rehabilitation term.
The Commissioner of Personnel may approve such additional changes in the staffing and organization structure as are needed to support the rehabilitation and economic recovery of the City of Camden pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill).
15. (New section) a. Notwithstanding any other provision of law or contract, the chief operating officer may abolish positions in the municipality not under the direct supervision of the municipal governing body at any time. All of the functions, powers and duties of such abolished positions shall be exercised by the chief operating officer or those persons whom the chief operating officer designates to exercise them during the rehabilitation term. The affected individuals shall be given 60 days' notice of termination or pay for the same period. The notice or payment shall be in lieu of any other claim or recourse against the municipality based on law or contract or term of office.
b. Notwithstanding any law, rule or regulation to the contrary, no individual whose position is abolished by operation of this section shall be entitled to assert a claim to any position or to placement upon a preferred eligibility list for any position to which the individual may be entitled by virtue of tenure or seniority within the municipality. Nothing herein shall preclude an individual from asserting upon separation from service any legal contractual right to health care coverage, annuities, accrued vacation days, accrued sick leave, insurance and approved tuition costs. No individual whose position is abolished by operation of this subsection shall retain any right to tenure or seniority in the positions abolished herein.
c. Notwithstanding any provision of P.L.1992, c.43 (C.34:15D-1 et seq.) to the contrary, the Department of Labor shall, if requested by an employee, provide a training grant under the "Job Training Partnership Act," Pub. L. 97-300 (29 U.S.C. s.1501 et seq), to each person who applies pursuant to this section for a training grant to pay for employment and training services as provided pursuant to section 6 of P.L.1992, c.43 (C.34:15D-6).
16. (New section) a. Following the completion of the municipal management study, the chief operating officer shall, in consultation with the mayor, recommend the appointment of department heads and division heads, as the case may be, and submit the list of nominees to the city council for approval. Any recommendations provided by the chief operating officer pursuant to this subsection shall be made in consultation with the mayor. Any person who has served as an interim department head pursuant to section 11 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall be eligible for appointment pursuant to this section. The city council may only reject a candidate by a 2/3 vote of the fully authorized membership of the city council. In the event of an impasse in the appointment process, the matter shall be decided by the special arbitrator, whose decision shall not be subject to appeal. In making a determination pursuant to this subsection, the special arbitrator shall uphold the recommended appointment if, by any objective measure, the person under consideration for that position is the most qualified by reason of experience, education or training.
Appointment as a department head or division head, as the case may be, shall be for a period of time coinciding with the term of the chief operating officer and an additional two years thereafter; however, department heads and division heads may be removed for cause by the Local Finance Board following a hearing before the board.
b. Any person who has served as an employee in a position with tenure rights during the rehabilitation term who is reappointed by the mayor, with the advice and consent of the council, as appropriate, following the termination of the rehabilitation term shall receive credit for the years served during the period of rehabilitation for the purposes of establishing eligibility for tenure, so long as their position otherwise qualifies for tenure under general law.
17. (New section) Upon the adoption of the municipal management study, the chief operating officer, working in conjunction with the Commissioner of Personnel and in consultation with the mayor, shall, within 60 days, transfer, assign or reclassify, as the case may be, those positions recommended for such action in the study.
The residency requirement established pursuant to municipal ordinance shall be waived for those positions which are at the supervisory, management level or above and which are in the unclassified service of Title 11A, Civil Service, of the New Jersey Statutes.
18. (New section) Any person hired in a position for which the residency requirement has been waived or as a police officer or firefighter after the adoption of the municipal management study, and who purchases a home in the City of Camden and occupies that home as a principal residence shall, subject to appropriation, receive an annual stipend of 10 percent of their base salary upon proper claim made therefor each year to the Department of Community Affairs, so long as the claim is made during the rehabilitation term. The department shall pay the stipend upon satisfactory proof by the applicant that the dwelling for which the stipend is being paid continues to be occupied as a principal residence by the applicant. An employee may receive this stipend for a period of five years; however, the requirement that the dwelling be occupied as a principal residence shall extend to the period of rehabilitation and economic recovery. Any person who does not continue to occupy the residence for which that person receives the stipend for the entirety of the period of rehabilitation and economic recovery shall be required to reimburse the State for the entire amount of the stipend received.
A municipal tax lien shall attach on the property for which the stipend is being paid, at the time the annual stipend is paid by the State in the amount of stipend received by the applicant. The lien shall have the same status and shall be given the same effect as municipal liens established under R.S.54:5-9. The lien shall remain on the property until the expiration of the period of rehabilitation and economic recovery, or until the entire amount of the stipend paid to the applicant has been reimbursed back to the State, should the applicant not continue to occupy the residence for the entire period of rehabilitation and economic recovery. The amount of the stipend to be reimbursed to the State shall also be a personal debt of the applicant, and both the lien and the debt shall be recoverable in the name of the State by means of any remedy available at law.
The chief operating officer shall each year compile a list of those employees eligible to receive the stipend, which shall be used by the department to verify eligibility. An employee who receives the stipend shall be ineligible to receive the income tax credit authorized pursuant to section 59 of P.L. , c. (C. ) (pending before the Legislature as this bill).
The commissioner shall annually submit a list to the State Treasurer of those persons who receive the stipend.
19. (New section) Notwithstanding the provisions of any other law, rule or regulation to the contrary, a city employee who is a member of the Public Employees' Retirement System and is otherwise eligible for retirement may, upon the recommendation of the chief operating officer with the approval of the director, receive an incentive payment for the termination of the employee's employment with the city.
As used in this section, "incentive payment" shall mean a lump sum payment of 20 percent of the employee's annual base salary, exclusive of overtime.
An employee shall only be eligible for an incentive payment pursuant to this section if that person applies for this termination benefit within 60 days of the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill). Payment shall be made not sooner than upon the receipt of the first pension check by the city employee.
This election to retire on the part of the city employee shall be communicated by the member to the retirement system pursuant to Title 43 of the Revised Statutes; however, once the employee has elected to retire, that decision shall be final.
20. (New section) A resident of Camden who has paid property taxes for the tax year on a homestead that is owned as such and who is eligible to receive an NJ SAVER rebate pursuant to P.L.1999, c.63 (C.54:4-8.58a et al.) shall, subject to appropriation, receive an NJ SAVER rebate in an amount equal to 150% of the amount otherwise owed that resident pursuant to section 4 of P.L.1999, c.63 (C.54:4-8.58b) during the time that the city is under rehabilitation and economic recovery.
21. (New section) a. The chief operating officer shall conduct monthly meetings with the mayor, department heads and the executive directors of any independent boards or authorities created by the municipality or which otherwise operate in the name of the municipality. Meetings may be held more frequently, as necessary, at the call of the chief operating officer.
b. During the rehabilitation term, the chief operating officer may veto the minutes of any independent board or authority, including, but not limited to, the housing authority, parking authority, redevelopment authority, planning board and board of adjustment. The mayor shall retain this power during the economic recovery term.
c. A true copy of the minutes of every meeting of any independent board or authority, including, but not limited to, the housing authority, parking authority, redevelopment authority, planning board and board of adjustment, shall be prepared and forthwith delivered to the chief operating officer or mayor, as the case may be. No action taken at any such meeting shall have force or effect until 10 days, exclusive of Saturdays, Sundays and public holidays, after the copy of the minutes shall have been so delivered. If, in that 10-day period, the chief operating officer or mayor returns the copy of the minutes with a veto of any action taken by the board or authority at the meeting, that action shall be null and void and of no force and effect. Following the completion of the 10-day period, those actions not vetoed shall be considered approved.
d. To ensure the expeditious consideration of any decision by the planning board and zoning board of adjustment or any other independent board or authority on the part of the chief operating officer or mayor, as appropriate, the secretary of each board or authority shall forward a copy of each resolution adopted by each board or authority within five business days following the adoption thereof. For the purposes of the exercise of the veto power by the chief operating officer or mayor pursuant to subsection c. of this section, the 10-day period shall commence upon the receipt, by the chief operating officer or mayor, as appropriate, of those resolutions.
22. (New section) a. Within three business days following each meeting of the city council, a copy of each ordinance and resolution which has been adopted by the council shall be forwarded to the chief operating officer or mayor, as the case may be, who shall have 10 days from the receipt thereof to veto the ordinance or resolution, as the case may be. Any veto action by the chief operating officer or mayor shall be submitted to the president of the city council within 10 days of the veto. Within five business days thereafter, the council may override the veto by a two-thirds vote of the fully authorized membership thereof.
If, in the opinion of the chief operating officer, the action is contrary to the rehabilitation of economic recovery goals which justified the rehabilitation declaration, the chief operating officer can submit the action to the special arbitrator, who shall allow the action only upon a finding that the action is consistent with the rehabilitation and economic recovery of the City of Camden. The decision of the special arbitrator shall not be subject to appeal.
b. The chief operating officer shall have full access to all municipal records and to municipal information from all officials and employees of the municipality. If the chief operating officer believes that an official or employee of the municipality is not answering the questions of the chief operating officer accurately or completely or is not furnishing information requested by the chief operating officer, the chief operating officer may notify the official or employee in writing to furnish answers to questions or to furnish documents or records, or both. If the official or employee refuses, the chief operating officer may seek a subpoena in the Superior Court, in a summary manner, to compel testimony and furnish records and documents.
23. (New section) The city council, in conjunction with the Eagleton Institute of Politics and the Rand Institute at Rutgers, The State University, shall hire a non-partisan, professional staff to assist the city council in the execution of its governmental functions and shall provide the staff with the computer hardware and software necessary to perform their assigned tasks. Computer equipment shall be provided at State expense. The staff members shall possess expertise in areas of municipal government operation, including but not limited to, municipal law, planning, social services, public health, public finance and public works administration. Candidates for appointment shall possess a college degree which is relevant to the position which may include, but not be limited to, business, law and public administration. Although a candidate may possess a law degree, staff members shall serve as subject matter experts to the council and shall not serve as legal counsel.
The Eagleton Institute and the Rand Institute shall also provide comprehensive training for members of the city council and the non-partisan, professional staff to better enable them to discharge their representative functions in the public interest. The State shall adequately compensate the Eagleton Institute and the Rand Institute for their services, subject to appropriation.
24. (New section) Unless otherwise provided pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill), the city council shall retain all functions, powers and duties prescribed to it pursuant to the charter and administrative code of the municipality, Titles 40 and 40A generally and specifically in the "Local Bond Law," N.J.S.40A:2-1 et seq., the "Local Budget Law," N.J.S.40A:4-1 et seq., the "Local Fiscal Affairs Law," N.J.S.40A:5-1 et seq., the "Local Public Contracts Law," P.L.1971, c.198 (C.40A:11-1 et seq.), the "New Jersey Water Supply Public-Private Contracting Act," P.L.1995, c.101 (C.58:26-19 et seq.), any specific form of government law according to which the municipality is governed, and such other sections or other laws which govern municipal operation or administration.
The city council shall set the schedule and agenda for meetings of the city council, which shall be duly advertised pursuant to the "Open
Public Meetings Act," P.L.1975, c.231 (C.10:4-6 et seq.). Meetings shall be presided over by the council president.
25. (New section) a. The director may provide for oversight or audit of the activities of the City of Camden and report the findings to the Local Finance Board and the chief operating officer. The cost of providing oversight and audit functions shall be borne by the State. The power to negotiate collective bargaining agreements pursuant to section 20 of P.L.1981, c.211 (C.52:27BB-66.1) shall be vested in the chief operating officer. Collective bargaining agreements entered into by the municipality prior to the commencement of the rehabilitation term shall remain in force as provided in those agreements, except when otherwise expressly provided in P.L. , c. (C. ) (pending before the Legislature as this bill).
b. The director may make grants to a municipality under rehabilitation, using such funds as may be available to the director, for the purposes of conducting studies or engaging consultants as may be authorized by P.L. , c. (C. ) (pending before the Legislature as this bill) to assist in rehabilitation, or those that the director and the chief operating officer or mayor, as appropriate, determine are necessary to the rehabilitation of the municipality. Grants may be made subject to conditions deemed necessary by the director.
26. (New section) a. During the rehabilitation term, the chief operating officer shall not increase the municipal portion of the general tax rate over the rate established for the year during which the rehabilitation took effect.
b. The chief operating officer shall, in consultation with the mayor, annually prepare a budget pursuant to the provisions of the "Local Budget Law," N.J.S.40A:4-1 et seq. This budget shall conform in all respects with the requirements of the "Local Budget Law," N.J.S.40A:4-1 et seq. and shall be subject to the limitations on spending by municipalities set forth in P.L.1976, c.68 (C.40A:4-45.1 et seq.). The Local Finance Board may grant exceptions to the spending limitations set forth in P.L.1976, c.68 (C.40A:4-45.1 et seq.) upon application by the chief operating officer, if the Local Finance Board finds such exceptions to be necessary for the rehabilitation of the municipality.
c. Upon the preparation of the budget, the chief operating officer, in consultation with the mayor, shall fix: a date, place and time for the holding of a public hearing upon the budget; the amounts of money necessary to be appropriated for the use of the municipality for the ensuing year; and the various items and purposes for which the same are to be appropriated. The hearing shall be held in accordance with the provisions of the "Local Budget Law," N.J.S.40A:4-1 et seq.; however, the hearing shall be held at least 28 days after the date on which the budget is advertised. Notice of hearing, contents of the notice and the format and purpose of the hearing shall be as provided in that law. As part of the budget request, the chief operating officer may include provision for anticipation of rehabilitation aid if other revenues are insufficient to meet the revenues needed to offset total appropriations.
d. If the budget proposed by the chief operating officer includes a provision for rehabilitation aid, the chief operating officer shall apply to the director for approval of the amount and shall supply the director with documentation justifying the need. The director shall then recommend an amount to the State Treasurer. The treasurer, after consideration of the recommendation, shall determine the amount of the rehabilitation aid to be requested.
e. During the period that the city is under rehabilitation and economic recovery, the commissioner shall ensure that those appropriations in the city budget or departmental budget, as the case may be, necessary for the rehabilitation and economic recovery of the City of Camden either appropriated pursuant to the "Camden Rehabilitation and Economic Recovery Act," P.L. c. , (C. ) (pending before the Legislature as this bill) anticipated by the programs established pursuant thereto, or otherwise necessary to assure the city's rehabilitation and revitalization, are fully funded and continued during the entire period of rehabilitation and economic recovery.
27. (New section) During the rehabilitation term, all ordinances authorizing the issuance of debt shall be subject to approval of the Local Finance Board. Provisions of the "Local Bond Law," N.J.S.40A:2-1 et seq., with regard to the introduction of bond ordinances shall be followed, and approval of the chief operating officer shall serve as approval of the bond ordinance for publication. After a public hearing held by the city council and approval of a bond ordinance by the chief operating officer, the chief operating officer shall apply to the Local Finance Board for approval of the bond ordinance. No bond ordinance shall take effect without the approval of the Local Finance Board. Amendments to existing bond ordinances that do not increase the amount of bonded indebtedness may be approved by the chief operating officer without the approval of the Local Finance Board.
28. (New section) The chief operating officer shall annually provide to the Local Finance Board an assessment of the progress of the City of Camden toward achieving municipal rehabilitation and economic recovery. The director shall formally report annually to the Local Finance Board, the commissioner, the Attorney General, the treasurer, the Governor, each member of the city council, including the mayor or other chief executive officer, and each member of the Legislature on the municipality's progress towards achieving these goals. The reports may also include recommendations to the Legislature by the chief operating officer for specific changes to the law that the chief operating officer believes would facilitate the goal of rehabilitating the City of Camden.
29. (New section) The mayor and chief operating officer shall establish a community advisory committee in order to provide an efficient means of eliciting citizen input in the rehabilitation and economic recovery and community development of the City of Camden. The community advisory committee shall consist of 13 members as follows: three to be appointed by the Commissioner of Community Affairs; three by the city council; and three by the chief operating officer. The mayor shall serve as an ex officio member of the committee and shall appoint an additional three members.
Membership of the committee shall include representatives of the municipality's neighborhood, business, labor, faith-based, civic, and public interest organizations. No fewer than three members of the committee shall represent private businesses situated within the City of Camden.
The committee shall meet not less than twice a year, at the pleasure of the chief operating officer, and shall assist the chief operating officer in the conduct of the municipal management study pursuant to section 12 of P.L. , c. (C. ) (pending before the Legislature as this bill) and such other functions as are assigned to it by the chief operating officer.
30. (New section) a. All State departments and agencies, to the extent not inconsistent with law and within budget constraints, shall cooperate with the chief operating officer and respond to requests for such information and assistance as are necessary to accomplish the purposes of P.L. , c. (C. ) (pending before the Legislature as this bill).
b. Notwithstanding any law or regulation to the contrary, during the period of rehabilitation and economic recovery, each State department, agency, or authority shall supersede existing priority setting or ranking systems to place applications from the City of Camden in the highest priority or ranking category for award of grants, benefits, or other considerations that would benefit the municipality. This shall be done to the greatest extent possible to benefit the municipality.
31. (New section) The State shall not be liable in tort, contract or in the nature of tort for any action or inaction involving the rehabilitation or revitalization of the municipality. The chief operating officer, assistant chief operating officer, and any State officer or employee involved in the rehabilitation or revitalization of the municipality shall not be liable in tort, contract or in the nature of tort personally or as State employees for any action or inaction involving the rehabilitation or revitalization of the municipality.
This section shall not be construed to preclude an aggrieved person from maintaining an action in tort, contract or in the nature of tort against the chief operating officer or a State officer or employee involved in the rehabilitation or revitalization of the municipality, as municipal employees. For purposes of those actions the chief operating officer, appointees of the chief operating officer pursuant to subsection d. of section 9 of P.L. , c. (C. ) (pending before the Legislature as this bill), and any State officer or employee involved in the rehabilitation shall be deemed officers or employees of the municipality and shall be entitled to the defenses and immunities as provided under the "New Jersey Tort Claims Act," N.J.S.59:1-1 et seq. and the "New Jersey Contractual Liability Act," N.J.S.59:13-1 et seq. for public employees and shall be entitled to defense and indemnification by the municipality as provided to other municipal employees.
32. (New section) The commissioner shall utilize available mechanisms, such as the Urban Coordinating Council, to coordinate and facilitate communications between the chief operating officer and the various State departments and agencies.
33. (New section) a. Notwithstanding that the City of Camden has been placed under rehabilitation and economic recovery under P.L. , c. (C. ) (pending before the Legislature as this bill), the City of Camden shall remain a body corporate and politic in the same manner as existed prior to rehabilitation and economic recovery.
b. Nothing in P.L. , c. (C. ) (pending before the Legislature as this bill) shall be construed to interrupt the holding of regular elections of the city council, mayor or other chief executive officer.
34. (New section) Notwithstanding any law, rule or regulation to the contrary, the governing body of any municipality in which a free public library has been established pursuant to R.S.40:54-1 et seq. situated in a county in which a free county library has been established pursuant to R.S.40:33-1 et seq. may enter into an agreement with the governing body of the county, acting on behalf of the county library commission, for the county library to assume responsibility for the administration and operation of the municipal library system. The agreement shall provide for those financial arrangements necessary in order to assure a smooth transition from municipal to county operation and the transfer of library personnel from the municipal, to the county library system.
ARTICLE 3. DEMOLITION, CAPITAL IMPROVEMENT AND INFRASTRUCTURE
35. (New section) a. The chief operating officer, in consultation with the mayor and the State Economic Recovery Board for the City of Camden established pursuant to section 40 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall, within six months of the appointment of the board, oversee the preparation of a capital improvement and infrastructure plan for the City of Camden.
The first section of the plan shall be a water and sewer subplan which shall be completed within one year. The water and sewer subplan shall provide a detailed blueprint for the separation of storm drains from the sewer system throughout the city, which improvements shall be completed within four years. In addition, the water and sewer subplan shall coordinate the overlay of municipal roads following the separation of underground lines and designate those roads which require reconstruction and allocate administrative and financial responsibility among various agencies for effectuating the plan. Funds shall be earmarked by the appropriate State agencies from the Transportation Trust Fund and the New Jersey Environmental Infrastructure Trust created pursuant to section 4 of P.L.1985, c.334 (C.58:11B-4), in order to accomplish the work plan set forth in the water and sewer subplan.
The capital improvement and infrastructure plan shall include those features of the municipal capital improvement program authorized pursuant to section 20 of P.L.1975, c.291 (C.40:55D-29). In addition, the plan shall specifically incorporate: a time frame for making any improvements necessary in the public water system to accommodate proposed redevelopment in the city and surrounding areas; a parks and open public space subplan which encompasses projects to improve the streetscapes, parks, public spaces, and any other relevant aspects of the public environment; and an analysis of public building needs, including administrative offices of the City of Camden, firehouses, police stations, libraries, and any other municipal government functions in light of the organizational and functional analysis of municipal government operations contained in the municipal management study.
The capital improvement and infrastructure plan shall recognize the plans of Camden County, the Delaware River Port Authority, the State Department of Transportation, the New Jersey Transit Corporation, Rutgers University, and any other public and non-profit entities which operate in the City of Camden.
Any municipal plan which affects the physical development of the city and is adopted by the municipality or any agency or instrumentality thereof after the adoption of the capital improvement and infrastructure plan shall be consistent with that plan.
b. The capital improvement and infrastructure plan shall be adopted upon an affirmative vote of a majority of the full authorized membership of the city council.
36. (New section) In addition to the municipal management study, the chief operating officer in consultation with the mayor, shall cause to be conducted a property tax collection audit in order to ascertain those properties which are in arrears with regard to property taxes and subject to tax sale or foreclosure. The study shall identify the ownership of those properties, the length of time during which taxes have been in arrears, and the likelihood that the properties might be developed individually or assembled with adjacent properties for demolition or redevelopment.
Following the completion of the property tax collection audit, the chief operating officer shall submit the study to the Commissioner of Community Affairs, who shall designate the New Jersey Economic Development Authority or the State Economic Recovery Board for the City of Camden to assist in the preparation of a demolition funding plan.
The State shall provide the necessary level of funding to allow for the demolition of unsafe structures and clearing of those lots for future development.
Those moneys which have been, or which may hereafter be appropriated for demolition under P.L.1999, c.144 from the "Urban and Rural Centers Unsafe Buildings Demolition Revolving Loan Fund" for the City of Camden shall be reappropriated to the State Economic Recovery Board for the City of Camden or the New Jersey Economic Development Authority, as appropriate.
37. (New section) The governing body of the City of Camden shall convey to the board, for the period of rehabilitation and economic recovery, its right, title and interest in any real property, acquired through the purchase of any tax sale certificate covering that real property whose rights of redemption have been foreclosed under the In Rem Tax Foreclosure Act (1948), P.L.1948, c.96 (C.54:5-104.29 et seq.), so long as the liens have previously been offered by the city at a public tax lien sale. The board may enter contracts for property tax lien management services pursuant to sections 65 through 69 of P.L. , c. (C. ) (pending before the Legislature as this bill).
ARTICLE 4. REDEVELOPMENT MANAGEMENT
38. (New section) The New Jersey Economic Development Authority shall enter with the Delaware River Port Authority established under R.S.32:3-2 into a management agreement which sets forth the terms and conditions under which the Delaware River Port Authority will assume project management responsibilities pursuant to the "Camden Rehabilitation and Economic Recovery Act," P.L. , c. (C. ) (pending before the Legislature as this bill). The Delaware River Port Authority shall, subject to such a management agreement, oversee the expenditure of those revenues made available out of: (1) the Interior Gateway Fund; (2) the Camden Aquarium Initiative Fund; (3) the Camden Brownfields Redevelopment Fund; and (4) the Commercial Corridor Improvement Fund created pursuant to section 50 of P.L. , c. (C. ) (pending before the Legislature as this bill) subject to the terms and conditions which otherwise govern the Delaware River Port Authority pursuant to law.
39. Section 1 of P.L.1979, c.303 (C.34:1B-5.1) is amended to read as follows:
1. The New Jersey Economic Development Authority shall adopt rules and regulations requiring that not less than the prevailing wage rate be paid to workers employed in the performance of construction contracts undertaken in connection with any of its projects, those projects which it undertakes pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill) or school facilities projects. The prevailing wage rate shall be the rate determined by the Commissioner of Labor pursuant to the provisions of P.L.1963, c.150 (C.34:11-56.25 et seq.).
(cf: P.L.2000, c.72, s.47)
40. (New section) In order to facilitate the rehabilitation and economic recovery of the City of Camden, there is created a subsidiary corporation of the New Jersey Economic Development Authority, which shall be known as the State Economic Recovery Board for the City of Camden. The board shall operate for the period during which the city is under rehabilitation and economic recovery and for a period of two years thereafter. Any outstanding debts or obligations which remain at the termination of board operation shall be assumed by the authority and any accounts payable to the board shall be due and payable to the authority.
The board shall consist of 11 voting members, as follows: the mayor of the City of Camden; the chief operating officer; the State Treasurer; the Commissioner of Community Affairs; the chairperson of the authority; the director of the Camden County Board of Chosen Freeholders, as provided hereunder, all of whom shall serve ex officio and may select a designee to serve in their stead; one member of the Senate chosen by the Senate President and one member of the Assembly chosen by the Assembly Speaker who shall both serve ex officio; and three public members to be appointed by the Governor, at least one of whom shall be a city resident. In addition, the Senior Community Builder in the State office of the federal Department of Housing and Urban Development shall serve as an ex officio, non-voting member of the board.
Each public member shall serve for a term of five years. Vacancies in the public membership of the board shall be filled in the same manner as the original appointments are made and a member may be eligible for reappointment. Vacancies occurring other than by expiration of a term shall be filled for the unexpired term. Each ex officio member shall serve for the period during which the city is under rehabilitation and economic recovery and for a period of two years thereafter.
The board shall be chaired by the chairperson of the authority or the designee of the chairperson.
The voting authority of the director of the Camden County Board of Chosen Freeholders shall not become effective until the filing with the Secretary of State of an agreement entered into by the chief operating officer, acting on behalf of the city, and the county, detailing the financial commitment of the county to the redevelopment of the infrastructure of the city and a proposed construction schedule for the completion thereof.
41. (New section) The duties of the board shall include, but not be limited to:
a. in consultation with the chief operating officer and the mayor, the preparation of the capital improvement and infrastructure master plan, identification of resources necessary to assure its implementation, marshaling of efforts of public and private entities which operate within Camden, and performance of any other tasks requested by the chief operating officer to assure the efficient use of, and maximum access to, public resources in order to assure the economic recovery of the City of Camden;
b. the making of grants, matching grants or loans, as appropriate, to finance, in whole or in part, projects which further economic recovery goals of the "Camden Rehabilitation and Economic Recovery Act," P.L. , c. (C. ) (pending before the Legislature as this bill), and which are consistent with the capital improvement and infrastructure master plan, out of: (1) the Neighborhood Redevelopment Fund; (2) the Camden Higher Education Economic Development Fund; (3) the Camden Regional Health Care Facilities Fund; and (4) the Neighborhood Revitalization Fund; and
c. the review and approval of plans submitted by Rutgers, the State University, Rowan University, the University of Medicine & Dentistry of New Jersey, Camden County College or any other institution of higher education as a prerequisite for the receipt of funding out of the "Camden Higher Education Economic Development Fund" created pursuant to section 51 of P.L. , c. (C. ) (pending before the Legislature as this bill) and by Our Lady of Lourdes Medical Center and Cooper Hospital/University Medical Center as a prerequisite for the receipt of funding out of the "Camden Regional Health Care Facilities Fund" created pursuant to section 52 of P.L. , c. (C. ) (pending before the Legislature as this bill). The approval of these plans shall not be unreasonably or arbitrarily withheld.
42. (New section) Except as otherwise limited in this act, the board shall have power:
a. to sue and be sued;
b. to have a seal and alter the same at pleasure;
c. to make and execute contracts and all other instruments necessary or convenient for the exercise of its powers and functions under this act;
d. to make and alter bylaws for its organization and internal management and, subject to agreements with noteholders or bondholders, to make rules and regulations with respect to its projects, operations, properties and facilities;
e. to acquire, hold and dispose of real or personal property for its corporate purposes;
f. to appoint officers, agents and employees, prescribe their duties and fix their compensation;
g. to acquire or contract to acquire from any individual, partnership, trust, association or corporation, or any public agency, by grant, purchase or otherwise, real or personal property or any interest therein; to own, hold, clear, improve, rehabilitate and develop, and to sell, assign, exchange, transfer, convey, lease, mortgage or otherwise dispose of or encumber the same;
h. to acquire, construct, reconstruct, rehabilitate, improve, alter or repair or provide for construction, reconstruction, rehabilitation, improvement, alteration or repair of any project;
i. to sell, lease, assign, transfer, convey, exchange, mortgage, or otherwise dispose of or encumber any project, and in the case of the sale of any project, to accept a purchase money mortgage in connection therewith; and to lease, repurchase or otherwise acquire and hold any project which the board has theretofore sold, leased or otherwise conveyed, transferred or disposed of;
j. to grant options to purchase any project or to renew any leases entered into by it in connection with any of its projects, on such terms and conditions as it may deem advisable;
k. to prepare or cause to be prepared plans, specifications, designs and estimates of costs for the construction, reconstruction, rehabilitation, improvement, alteration or repair of any project, and from time to time to modify such plans, specifications, designs or estimates;
l. to manage any project, whether then owned or leased by the board, and to enter into agreements with any individual, partnership, trust, association or corporation, or with any public agency, for the purpose of causing any project to be managed;
m. to provide advisory, consultative, training and educational services, technical assistance and advice to any individual, partnership, trust, association or corporation, or to any public agency, in order to carry out the purposes of P.L. , c. (C. ) (pending before the Legislature as this bill);
n. to issue, purchase, pledge and sell stock in projects of the board on such terms and conditions as the board may deem advisable; o. subject to the provisions of any contract with noteholders, to consent to the modification, with respect to rate of interest, time of payment or any installment of principal or interest, security, or any other terms, of any loan, mortgage, commitment, contract or agreement of any kind to which the board is a party;
p. in connection with any property on which it has made a mortgage loan, to foreclose on the property or commence any action to protect or enforce any right conferred upon it by any law, mortgage, contract or other agreement, and to bid for or purchase the property at any foreclosure or at any other sale, or acquire or take possession of the property; and in such event the board may complete, administer, pay the principal of and interest on any obligations incurred in connection with the property, dispose of and otherwise deal with the property, in such manner as may be necessary or desirable to protect the interests of the board therein;
q. to invest any funds held in reserve or sinking funds, or any moneys not required for immediate use and disbursement, at the discretion of the board, in obligations of this State or of the United States, or obligations the principal and interest of which are guaranteed by this State or the United States;
r. to procure insurance against any loss in connection with its property and other assets and operations, in such amounts and from such insurers as it deems desirable;
s. to engage the services of consultants on a contract basis for rendering professional and technical assistance and advice;
t. to contract for and to accept any gifts or grants or loans of funds or property or financial or other aid in any form from the federal government or any agency or instrumentality thereof, or from the State or a municipality or any agency or instrumentality thereof, or from any other source, and, subject to the provisions of this act and any other applicable law, to comply with the terms and conditions thereof;
u. to establish, levy and collect, in connection with any civic project or utilities project managed or operated by the board, whether then owned or leased by the board, user fees and facility charges;
v. to do any and all things necessary or convenient to carry out its purposes and exercise the powers given and granted in this act;
w. to borrow money or secure credit against the assets of the board on a temporary, short-term, interim or long-term basis;
x. to make short-term loans or advances to developers for construction in anticipation of the issuance of permanent loans; and
y. to exercise sole authority for investment, reinvestment or expenditure of its revenues, fund balances and appropriations consistent with the purposes of this act on projects and investments utilizing revenues from the sale of government obligation bonds, which projects shall be subject to the approval of the State Treasurer, and the Treasurer's actions shall be based solely on the treasurer's fiduciary role to ensure that all applicable federal and State tax laws are adhered to regarding the investment of bond funds.
43. Section 5 of P.L.1974, c.80 (C.34:1B-5) is amended to read as follows:
5. The authority shall have the following powers:
a. To adopt bylaws for the regulation of its affairs and the conduct of its business;
b. To adopt and have a seal and to alter the same at pleasure;
c. To sue and be sued;
d. To acquire in the name of the authority by purchase or otherwise, on such terms and conditions and such manner as it may deem proper, or by the exercise of the power of eminent domain in the manner provided by the "Eminent Domain Act of 1971," P.L.1971, c.361 (C.20:3-1 et seq.), any lands or interests therein or other property which it may determine is reasonably necessary for any project or school facilities project; provided, however, that the authority in connection with any project shall not take by exercise of the power of eminent domain any real property except upon consent thereto given by resolution of the governing body of the municipality in which such real property is located; and provided further that the authority shall be limited in its exercise of the power of eminent domain in connection with any project to municipalities receiving State aid under the provisions of P.L.1978, c.14 (C.52:27D-178 et seq.), or to municipalities which had a population, according to the latest federal decennial census, in excess of 10,000;
e. To enter into contracts with a person upon such terms and conditions as the authority shall determine to be reasonable, including, but not limited to, reimbursement for the planning, designing, financing, construction, reconstruction, improvement, equipping, furnishing, operation and maintenance of the project or the school facilities project and to pay or compromise any claims arising therefrom;
f. To establish and maintain reserve and insurance funds with respect to the financing of the project or the school facilities project;
g. To sell, convey or lease to any person all or any portion of a project or school facilities project, for such consideration and upon such terms as the authority may determine to be reasonable;
h. To mortgage, pledge or assign or otherwise encumber all or any portion of a project , school facilities project or revenues, whenever it shall find such action to be in furtherance of the purposes of this act and P.L.2000, c.72 (C.18A:7G-1 et al.);
i. To grant options to purchase or renew a lease for any of its projects or school facilities projects on such terms as the authority may determine to be reasonable;
j. To contract for and to accept any gifts or grants or loans of funds or property or financial or other aid in any form from the United States of America or any agency or instrumentality thereof, or from the State or any agency, instrumentality or political subdivision thereof, or from any other source and to comply, subject to the provisions of this act and P.L.2000, c.72 (C.18A:7G-1 et al.), with the terms and conditions thereof;
k. In connection with any application for assistance under this act or P.L.2000, c.72 (C.18A:7G-1 et al.) or commitments therefor, to require and collect such fees and charges as the authority shall determine to be reasonable;
l. To adopt, amend and repeal regulations to carry out the provisions of this act and P.L.2000, c.72 (C.18A:7G-1 et al.);
m. To acquire, purchase, manage and operate, hold and dispose of real and personal property or interests therein, take assignments of rentals and leases and make and enter into all contracts, leases, agreements and arrangements necessary or incidental to the performance of its duties;
n. To purchase, acquire and take assignments of notes, mortgages and other forms of security and evidences of indebtedness;
o. To purchase, acquire, attach, seize, accept or take title to any project or school facilities project by conveyance or by foreclosure, and sell, lease, manage or operate any project or school facilities project for a use specified in this act and P.L.2000, c.72 (C.18A:7G-1 et al.);
p. To borrow money and to issue bonds of the authority and to provide for the rights of the holders thereof, as provided in this act and P.L.2000, c.72 (C.18A:7G-1 et al.);
q. To extend credit or make loans to any person for the planning, designing, acquiring, constructing, reconstructing, improving, equipping and furnishing of a project or school facilities project, which credits or loans may be secured by loan and security agreements, mortgages, leases and any other instruments, upon such terms and conditions as the authority shall deem reasonable, including provision for the establishment and maintenance of reserve and insurance funds, and to require the inclusion in any mortgage, lease, contract, loan and security agreement or other instrument, such provisions for the construction, use, operation and maintenance and financing of a project or school facilities project as the authority may deem necessary or desirable;
r. To guarantee up to 90% of the amount of a loan to a person, if the proceeds of the loan are to be applied to the purchase and installation, in a building devoted to industrial or commercial purposes, or in an office building, of an energy improvement system;
s. To employ consulting engineers, architects, attorneys, real estate counselors, appraisers, and such other consultants and employees as may be required in the judgment of the authority to carry out the purposes of this act and P.L.2000, c.72 (C.18A:7G-1 et al.), and to fix and pay their compensation from funds available to the authority therefor, all without regard to the provisions of Title 11A of the New Jersey Statutes;
t. To do and perform any acts and things authorized by this act and P.L.2000, c.72 (C.18A:7G-1 et al.) under, through or by means of its own officers, agents and employees, or by contract with any person;
u. To procure insurance against any losses in connection with its property, operations or assets in such amounts and from such insurers as it deems desirable;
v. To do any and all things necessary or convenient to carry out its purposes and exercise the powers given and granted in this act and P.L.2000, c.72 (C.18A:7G-1 et al.);
w. To construct, reconstruct, rehabilitate, improve, alter, equip, maintain or repair or provide for the construction, reconstruction, improvement, alteration, equipping or maintenance or repair of any development property and lot, award and enter into construction contracts, purchase orders and other contracts with respect thereto, upon such terms and conditions as the authority shall determine to be reasonable, including, but not limited to, reimbursement for the planning, designing, financing, construction, reconstruction, improvement, equipping, furnishing, operation and maintenance of any such development property and the settlement of any claims arising therefrom and the establishment and maintenance of reserve funds with respect to the financing of such development property;
x. When authorized by the governing body of a municipality exercising jurisdiction over an urban growth zone, to construct, cause to be constructed or to provide financial assistance to projects in an urban growth zone which shall be exempt from the terms and requirements of the land use ordinances and regulations, including, but not limited to, the master plan and zoning ordinances, of such municipality;
y. To enter into business employment incentive agreements as provided in the "Business Employment Incentive Program Act," P.L.1996, c.26 (C.34:1B-124 et al.);
z. To undertake school facilities projects and to enter into agreements or contracts, execute instruments, and do and perform all acts or things necessary, convenient or desirable for the purposes of the authority to carry out any power expressly provided pursuant to P.L.1974, c.80 (C.34:1B-1 et seq.) and P.L.2000, c.72 (C.18A:7G-1 et al.), including, but not limited to, entering into contracts with the State Treasurer, the Commissioner of Education, districts and any other entity which may be required in order to carry out the provisions of P.L.2000, c.72 (C.18A:7G-1 et al.);
aa. To enter into leases, rentals or other disposition of a real property interest in and of any school facilities project to or from any local unit pursuant to P.L.2000, c.72 (C.18A:7G-1 et al.);
bb. To make and contract to make loans or leases and to make grants to local units to finance the cost of school facilities projects and to acquire and contract to acquire bonds, notes or other obligations issued or to be issued by local units to evidence the loans or leases, all in accordance with the provisions of P.L.2000, c.72 (C.18A:7G-1 et al.);
cc. Subject to any agreement with holders of its bonds issued to finance a project or school facilities project, obtain as security or to provide liquidity for payment of all or any part of the principal of and interest and premium on the bonds of the authority or for the purchase upon tender or otherwise of the bonds, lines of credit, letters of credit, reimbursement agreements, interest rate exchange agreements, currency exchange agreements, interest rate floors or caps, options, puts or calls to hedge payment, currency, rate, spread or similar exposure or similar agreements, float agreements, forward agreements, insurance contract, surety bond, commitment to purchase or sell bonds, purchase or sale agreement, or commitments or other contracts or agreements, and other security agreements or instruments in any amounts and upon any terms as the authority may determine and pay any fees and expenses required in connection therewith; [and]
dd. To charge to and collect from local units, the State and any other person, any fees and charges in connection with the authority's actions undertaken with respect to school facilities projects, including, but not limited to, fees and charges for the authority's administrative, organization, insurance, operating and other expenses incident to the financing, construction and placing into service and maintenance of school facilities projects; and
ee. To oversee and monitor progress on the part of the Delaware River Port Authority and the State Economic Recovery Board for the City of Camden created pursuant to section 40 of P.L. , c. (C. ) (pending before the Legislature as this bill) in carrying out the revitalization, economic development and restoration projects authorized pursuant to the "Camden Rehabilitation and Economic Recovery Act," P.L. , c. (C. ) (pending before the Legislature as this bill) and otherwise fulfilling their responsibilities pursuant thereto.
(cf: P.L.2000, c.72, s.46)
ARTICLE 8. FUNDING AND FUND MANAGEMENT
44. (New section) As used in this article:
"Bonds" means bonds, notes or other obligations issued by the authority pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill); and
"Refunding bonds" means bonds, notes or other obligations issued to refinance bonds, notes or other obligations previously issued by the authority pursuant to section 45 of P.L. , c. (C. ) (pending before the Legislature as this bill).
45. (New section) Notwithstanding the provisions of any law, rule, regulation or order to the contrary:
a. The authority shall have the power, pursuant to the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill) and P.L.1974, c.80 (C.34:1B-1 et seq.), to issue bonds and refunding bonds, incur indebtedness and borrow money secured, in whole or in part, by money received pursuant to sections 46 and 47 of P.L. , c. (C. ) (pending before the Legislature as this bill), for the purpose of making the deposits described in section 48 of P.L. , c. (C. ) (pending before the Legislature as this bill). The total outstanding principal amount of the bonds shall not exceed $173,600,000. In computing the foregoing limitation as to amount, there shall be excluded all bonds which shall be issued for (i) costs incurred in connection with the issuance of the bonds and (ii) refunding purposes, provided that the refunding shall be determined by the authority to result in a debt service savings. The authority may establish reserve or other funds to further secure bonds and refunding bonds.
b. The authority may, in any resolution authorizing the issuance of bonds or refunding bonds, pledge the contract with the State Treasurer, provided for in section 47 of P.L. , c. (C. ) (pending before the Legislature as this bill), or any part thereof, for the payment or redemption of the bonds or refunding bonds, and covenant as to the use and disposition of money available to the authority for payments of bonds and refunding bonds. All costs associated with the issuance of bonds and refunding bonds by the authority for the purposes set forth in P.L. , c. (C. ) (pending before the Legislature as this act) may be paid by the authority from amounts it receives from the proceeds of the bonds or refunding bonds and from amounts it receives pursuant to sections 46 and 47 of P.L. , c. (C. ) (pending before the Legislature as this bill), which costs may include, but are not limited to, any costs relating to the issuance of the bonds or refunding bonds and costs attributable to the agreements described in subsection c. of this section. The bonds or refunding bonds shall be authorized by resolution, which shall stipulate the manner of execution and form of the bonds whether the bonds are in one or more series, the date or dates of issue, time or times of maturity, which shall not exceed 40 years, the rate or rates of interest payable on the bonds, which may be at fixed rates or variable rates, and which interest may be current interest or may accrue, the denomination or denominations in which the bonds are issued, conversion or registration privileges, the sources and medium of payment and place or places of payment, terms of redemption, privileges of exchangeability or interchangeability, and entitlement to priorities of payment or security in the amounts to be received by the authority pursuant to sections 46 and 47 of P.L. , c. (C. ) (pending before the Legislature as this bill). The bonds may be sold at a public or private sale at a price or prices determined by the authority. The authority is authorized to enter into any agreements necessary or desirable to effectuate the purposes of this section, including agreements to sell bonds or refunding bonds to any persons and to comply with the laws of any jurisdiction relating thereto.
c. In connection with any bonds or refunding bonds issued pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill), the authority may also enter into any revolving credit agreement, agreement establishing a line of credit or letter of credit, reimbursement agreement, interest rate exchange agreement, currency exchange agreement, interest rate floor or cap, options, puts or calls to hedge payment, currency, rate, spread or similar exposure, or similar agreements, float agreements, forward agreements, insurance contract, surety bond, commitment to purchase or sell bonds, purchase or sale agreement, or commitments or other contracts or agreements and other security agreements approved by the authority.
d. No resolution adopted by the authority authorizing the issuance of bonds or refunding bonds pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill) shall be adopted or otherwise made effective without the approval in writing of the State Treasurer. Except as provided by subsection i. of section 4 of P.L.1974, c.80 (C.34:1B-4), bonds or refunding bonds may be issued without obtaining the consent of any department, division, commission, board, bureau or agency of the State, other than the approval as required by this subsection, and without any other proceedings or the occurrence of any other conditions or other things other than those proceedings, conditions or things which are specifically required by P.L. , c. (C. ) (pending before the Legislature as this bill).
e. Bonds and refunding bonds issued by the authority pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill) shall be special and limited obligations of the authority payable from, and secured by, such funds and moneys determined by the authority in accordance with this section. Neither the members of the authority nor any other person executing the bonds or refunding bonds shall be personally liable with respect to payment of interest and principal on these bonds or refunding bonds. Bonds or refunding bonds issued pursuant to the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill) shall not be a debt or liability of the State or any agency or instrumentality thereof, except as otherwise provided by this subsection, either legal, moral or otherwise, and nothing contained in P.L. , c. (C. ) (pending before the Legislature as this bill) shall be construed to authorize the authority to incur any indebtedness on behalf of or in any way to obligate the State or any political subdivision thereof, and all bonds and refunding bonds issued by the authority shall contain a statement to that effect on their face.
f. The authority is authorized to engage, subject to the approval of the State Treasurer and in such manner as the State Treasurer shall determine, the services of financial advisors and experts, placement agents, underwriters, appraisers, and such other advisors, consultants and agents as may be necessary to effectuate the purposes of P.L. , c. (C. ) (pending before the Legislature as this bill).
g. The proceeds from the sale of the bonds, other than refunding bonds, issued pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill), after payment of any costs related to the issuance of such bonds, shall be applied to the purposes set forth in section 48 of P.L. , c. (C. ) (pending before the Legislature as this bill).
h. All bonds or refunding bonds issued by the authority are deemed to be issued by a body corporate and politic of the State for an essential governmental purpose, and the interest thereon and the income derived from all funds, revenues, incomes and other moneys received for or to be received by the authority and pledged and available to pay or secure the payment on bonds or refunding bonds and the interest thereon, shall be exempt from all taxes levied pursuant to the provisions of Title 54 of the Revised Statutes or Title 54A of the New Jersey Statutes, except for transfer, inheritance and estate taxes levied pursuant to Subtitle 5 of Title 54 of the Revised Statutes.
i. The State hereby pledges and covenants with the holders of any bonds or refunding bonds issued pursuant to the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill), that it will not limit or alter the rights or powers vested in the authority by P.L. , c. (C. ) (pending before the Legislature as this bill), nor limit or alter the rights or powers of the State Treasurer in any manner which would jeopardize the interest of the holders or any trustee of such holders, or inhibit or prevent performance or fulfillment by the authority or the State Treasurer with respect to the terms of any agreement made with the holders of these bonds or refunding bonds or agreements made pursuant to subsection e. of this section, except that the failure of the Legislature to appropriate moneys for any purpose of P.L. , c. (C. ) (pending before the Legislature as this bill) shall not be deemed a violation of this section.
j. Notwithstanding any restriction contained in any other law, rule, regulation or order to the contrary, the State and all political subdivisions of this State, their officers, boards, commissioners, departments or other agencies, all banks, bankers, trust companies, savings banks and institutions, building and loan associations, saving and loan associations, investment companies and other persons carrying on a banking or investment business, and all executors, administrators, guardians, trustees and other fiduciaries, and all other persons whatsoever who now are or may hereafter be authorized to invest in bonds or other obligations of the State, may properly and legally invest any sinking funds, moneys or other funds, including capital, belonging to them or within their control, in any bonds or refunding bonds issued by the authority under the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill); and said bonds and refunding bonds are hereby made securities which may properly and legally be deposited with, and received by any State or municipal officers or agency of the State, for any purpose for which the deposit of bonds or other obligations of the State is now, or may hereafter be authorized by law.
46. (New section) a. The State Treasurer shall, in each State fiscal year, pay from the General Fund to the authority, in accordance with a contract or contracts between the State Treasurer and the authority, authorized pursuant to section 47 of P.L. , c. (C. ) (pending before the Legislature as this bill), an amount equivalent to the amount due to be paid in such State fiscal year to pay the debt service incurred for such State fiscal year on the bonds or refunding bonds of the authority issued pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill) and any additional costs authorized by section 45 of P.L. , c. (C. ) (pending before the Legislature as this bill); and
b. In addition to such terms and conditions as are agreed upon pursuant to section 47 of P.L. , c. (C. ) (pending before the Legislature as this bill), the contract or contracts shall provide that all such payments from the General Fund shall be subject to, and dependent upon, appropriations being made from time to time by the Legislature for these purposes.
47. (New section) The State Treasurer and the authority are authorized to enter into one or more contracts to implement the payment arrangement that is provided for in section 46 of P.L. , c. (C. ) (pending before the Legislature as this bill). The contract or contracts shall provide for payment by the State Treasurer of the amounts required to be paid pursuant to section 46 of P.L. , c. (C. ) (pending before the Legislature as this bill) and shall set forth the procedure for the transfer of moneys for the purpose of paying such moneys. The contract or contracts shall contain such terms and conditions as are determined by the parties, and shall include, but not be limited to, terms and conditions necessary pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill); provided, however, that notwithstanding any other provision of any law, rule, regulation or order to the contrary, the authority shall be paid only such funds as shall be determined by the contract or contracts and further provided that the incurrence of any obligation of the State under the contract or contracts, including any payments to be made thereunder from the General Fund, shall be subject to and dependent upon appropriations being made from time to time by the Legislature for the purposes of P.L. , c. (C. ) (pending before the Legislature as this bill).
48. (New section) a. The New Jersey Economic Development Authority shall establish and maintain a series of special funds as provided in sections 49 through 52 of P.L. , c. (C. ) (pending before the Legislature as this bill) into which shall be deposited such moneys: (1) as shall be paid to the funds by the State Treasurer; (2) as shall be appropriated by the State for the purpose of such funds; (3) as shall be deposited into the funds in accordance with section 70 of P.L. , c. (C. ) (pending before the Legislature as this bill) and (4) any other moneys or funds of the authority which it determines to deposit therein. Moneys in the funds may be invested in such obligations as the authority may approve and interest or other earnings on such investments shall be credited to the funds.
b. In addition to the powers of the authority set forth in section 5 of P.L.1974, c.80 (C.34:1B-5) and other powers which may be conferred on the authority or the executive director by P.L. , c. (C. ) (pending before the Legislature as this bill), the authority, by resolution, shall have the power to: (1) pay all or part of the cost of an eligible project; and (2) make loans, guarantees, equity investments, and grants, or provide other forms of financing for an eligible project.
c. The purpose of the special funds established pursuant to subsection a. of this section shall be to provide grants and loans of a sufficient scale and visibility to expand and sustain economic activity in the City of Camden, both within the central business district and in order to encourage revitalization of the city's neighborhoods outside of the central business district through the rehabilitation, acquisition, demolition and redevelopment of property within those neighborhoods, the improvement of city-owned water supply and distribution facilities, and, where necessary, the remediation of brownfields sites to foster redevelopment. Grants shall be made available to the City of Camden in order to strengthen the provision of municipal services through capital construction and reconstruction of public buildings and financial assistance necessary to allow for the purchase of equipment considered vital to the sustenance of municipal public services, particularly public safety.
49. (New section) The State Economic Recovery Board for the City of Camden shall administer the following funds as provided pursuant to section 41 of P.L. , c. (C. ) (pending before the Legislature as this bill):
a. the "Neighborhood Revitalization Fund," into which shall be deposited the sum of $27 million from bond proceeds, to be disbursed at the discretion of the executive director and upon the recommendation of the chief operating officer, of which $10 million which shall be used to make grants, matching grants or loans, to support water and sewer improvements not funded by the county, and the remaining $17 million shall be used to make grants, matching grants or loans to support the removal of litter and clean community activities, the development of tot-lots, community gardens, landscape amenities, small scale demolitions, streetscape improvements, property acquisition, and restoration in neighborhoods outside of the central business district;
b. the "Neighborhood Redevelopment Fund," into which shall be deposited the sum of $42 million from bond proceeds, which shall be used to provide grants, matching grants or loans to support neighborhood rehabilitation, land acquisition, brownfields remediation, demolition and redevelopment;
c. the "Camden Higher Education Economic Development Fund" established pursuant to section 51 of P.L. , c. (C. ) (pending before the Legislature as this bill); and
d. the "Camden Regional Health Care Facilities Fund" established pursuant to section 52 of P.L. , c. (C. ) (pending before the Legislature as this bill).
50. (New section) The Delaware River Port Authority shall administer the following funds as provided pursuant to section 38 of P.L. , c. (C. ) (pending before the Legislature as this bill):
a. the Interior Gateway Fund, into which shall be deposited the sum of $23.5 million from bond proceeds, which shall be used to make grants, matching grants or loans, at the discretion of the executive director and upon the recommendation of the chief operating officer, to support streetscape improvements, facade restoration, street signage improvements, street resurfacing, demolition and restoration of commercial structures, property acquisition, and redevelopment projects;
b. the Camden Brownfields Redevelopment Fund, into which shall be deposited the sum of $5 million from bond proceeds, which shall be used to provide grants, matching grants or loans to support brownfields remediation in order to foster redevelopment;
c. the Commercial Corridor Improvement Fund, into which shall be deposited the sum of $5 million from bond proceeds, which shall be used to provide grants, matching grants or loans to support streetscape improvements, facade restoration, street signage improvements, street resurfacing, small scale demolition and restoration of commercial structures situated outside of the central business district and outside the waterfront area; and
d. the "Camden Aquarium Initiative Fund," into which shall be deposited the sum of $30 million from bond proceeds to be made available for the expansion and upgrade of the aquarium by a private developer. Moneys from the fund shall be made available on a matching basis, with three dollars of State money to be made available for every dollar raised by a private developer. The receipt of funds by a private developer shall be subject to those conditions set forth pursuant to section 58 of P.L. , c. (C. ) (pending before the Legislature as this bill).
Funds paid out of the "Camden Aquarium Initiative Fund" may be used for debt retirement; however, any funds used for that purpose shall not be subject to the matching requirement pursuant to this subsection.
51. (New section) There is created in the New Jersey Economic Development Authority the "Camden Higher Education Economic Development Fund" which shall be used to provide grants, on a one-to-one matching basis, to non-profit educational institutions in order to encourage the development of student housing, retail facilities and commercial enterprises in the central business district of the City of Camden, subject to those conditions set forth in section 58 of P.L. , c. (C. ) (pending before the Legislature as this bill).
Any facility constructed using bond proceeds shall be located within the central business district of the City of Camden and shall be co-located with other university buildings.
With respect to Rowan University, these funds shall be made available on the condition that the university shall offer at least two full four- year programs, thereby allowing students to complete an entire course of study on the campus housed in the central business district. In addition, Rowan University may use these matching funds in conjunction with land acquisition moneys received by that university from the Delaware River Port Authority.
The bond proceeds shall be allocated as follows:
a. the sum of $11 million shall be made available to Rutgers, the State University;
b. the sum of $5 million shall be made available to Rowan University;
c. the sum of $9 million shall be made available to the University of Medicine & Dentistry of New Jersey; and
d. the sum of $3.5 million shall be made available to Camden County College.
Moneys shall be committed within four years of the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill).
52. (New section) There is created in the New Jersey Economic Development Authority the "Camden Regional Health Care Facilities Fund" into which shall be deposited the sum of $12.6 million from bond proceeds which shall be used to provide grants, on a matching basis, to regional health care facilities situated within the City of Camden, to allow for facility expansion, including but not limited to, facilities for pre-admission testing, occupational health, health-related educational facilities such as a school of nursing, emergency room facilities and such ancillary facilities as a heliport, subject to those conditions set forth in sections 41 and 58 of P.L. , c. (C. ) (pending before the Legislature as this bill). Each health care facility shall be required to raise one dollar for every three dollars provided by the State. The bond proceeds shall be allocated as follows:
a. the sum of $3 million shall be made available to Our Lady of Lourdes Medical Center; and
b. the sum of $9.6 million shall be made available to Cooper Hospital/University Medical Center; provided, however, that no funds shall be made available to Cooper Hospital/University Medical Center for the purpose of establishing or expanding family practice facilities. Cooper Hospital/University Medical Center may make available a portion of these funds to a federally-qualified health center operating in the City of Camden.
53. (New section) There is created in the Department of Labor the "Camden Economic Opportunity Fund," into which shall be deposited the sum of $2.5 million, which shall be used, in coordination with the job training provisions of the State's school construction program, to create employment and entrepreneurial opportunities through the completion of the Gateway project, entrepreneurial training, and grants and loans to small business development in South Camden, and loans for housing development.
ARTICLE 6. ECONOMIC DEVELOPMENT
54. (New section) Notwithstanding the provisions of the "New Jersey Urban Enterprise Zones Act," P.L.1983, c.303 (C.52:27H-60 et seq.), upon the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), and for the duration of the period of rehabilitation and economic recovery, all reduced rate revenues collected within the urban enterprise zone in the city of Camden shall be deposited into the enterprise zone assistance fund created pursuant to section 29 of P.L.1983, c.303 (C.52:27H-88). Upon the termination of the period of rehabilitation and economic recovery, the disposition of reduced rate revenues collected within the urban enterprise zone shall be governed by the provisions of general law.
55. (New section) As used in this section and section 56 of P.L. , c. (C. ) (pending before the Legislature as this bill):
a. "Business facility" means any factory, mill, plant, refinery, warehouse, building, complex of buildings or structural components of buildings, and all machinery, equipment and personal property located within the City of Camden, used in connection with the operation of the business of a corporation that is subject to the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5), and all facility preparation and start-up costs of the taxpayer for the business facility which it capitalizes for federal income tax purposes.
b. "Business relocation or business expansion property" means improvements to real property and tangible personal property, but only if that improvement or personal property is constructed or purchased and placed in service or use by the taxpayer, for use as a component part of a new or expanded business facility located in the City of Camden.
(1) Business relocation or business expansion property shall include only:
(a) improvements to real property placed in service or use as a business facility on or after the operative date of P.L. , c. (C. ) (pending before the Legislature as this bill) by the taxpayer;
(b) tangible personal property placed in service or use by the taxpayer on or after the operative date of P.L. , c. (C. )(pending before the Legislature as this bill), with respect to which depreciation, or amortization in lieu of depreciation, is allowable in determining the corporation business tax liability of the taxpayer under P.L.1945, c.162, and which has a remaining recovery period of three or more years at the time the property is placed in service or use in the City of Camden; or
(c) tangible personal property owned and used by the taxpayer at a business location outside the City of Camden which is moved into the City of Camden on or after the effective date of P.L. , c. (C. )(pending before the Legislature as this bill), for use as a component part of a new or expanded business facility located in the City of Camden; provided that the property is depreciable or amortizable personal property for income tax purposes, and has a remaining recovery period of three or more years at the time the property is placed in service or use in the City of Camden.
(2) Property purchased for business relocation or expansion shall not include:
(a) repair costs, including materials used in the repair, unless for federal income tax purposes, the cost of the repair must be capitalized and not expensed;
(b) airplanes;
(c) property which is primarily used outside the City of Camden with that use being determined based upon the amount of time the property is actually used both within and without the City of Camden;
(d) property which is acquired incident to the purchase of the stock or assets of the seller.
(3) Property shall be deemed to have been purchased prior to a specified date only if:
(a) the physical construction, reconstruction or erection of the property was begun prior to the specified date, or such property was constructed, reconstructed, erected or acquired pursuant to a written contract as existing and binding on the purchase prior to the specified date; or
(b) the machinery or equipment was owned by the taxpayer prior to the specified date, or was acquired by the taxpayer pursuant to a binding purchase contract which was in effect prior to the specified date.
c. "Business relocation or expansion" means capital investment in a new or expanded business facility in the City of Camden.
d. "Controlled group" means one or more chains of corporations connected through stock ownership with a common parent corporation if stock possessing at least 50% of the voting power of all classes of stock of each of the corporations is owned directly or indirectly by one or more of the corporations; and the common parent owns directly stock possessing at least 50% of the voting power of all classes of stock of at least one of the other corporations.
e. "Director" means the Director of the Division of Taxation in the Department of the Treasury.
f. "Expanded business facility" means any business facility, other than a new business facility, resulting from acquisition, construction, reconstruction, installation or erection of improvements or additions to existing property if such improvements or additions are purchased on or after the effective date of rehabilitation and economic recovery.
g. "Incentive payment" means: the amount of tax owed by a taxpayer for a privilege period, as computed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5), multiplied by a fraction, the numerator of which is the average value of the taxpayer's business relocation or business expansion property within the City of Camden during the period covered by its report, and the denominator of which is the average value of all the taxpayer's real and tangible personal property wherever situated during such period which result is multiplied by 96 percent; provided, however, that for the purpose of determining average value, the provisions with respect to depreciation as set forth in subparagraph (F) of paragraph (2) of subsection (k) of section 4 of P.L.1945, c.162 (C.54:10A-4) shall be taken into account for arriving at such value; and provided further that incentive payments shall be made for a period not to exceed 10 years, commencing on the date of a taxpayer's first acquisition of business relocation or business expansion property in the City of Camden following the operative date of P.L. , c. (C. ) (pending before the Legislature as this bill).
h. "New business facility" means a business facility which:
(1) is employed by a taxpayer in the conduct of a business which is or will be taxable under P.L.1945, c.162 (C.54:10A-1 et seq.). A business facility shall not be considered a new business facility in the hands of a taxpayer if the taxpayer's only activity with respect to the facility is to lease it to another person;
(2) is purchased by a taxpayer and is placed in service or use on or after the effective date of rehabilitation and economic recovery;
(3) was not purchased by a taxpayer from a related person; and
(4) was not in service or use during the 90 day period immediately prior to transfer of the title to the facility.
i. "Partnership" means a syndicate, group, pool, joint venture or other unincorporated organization through or by means of which any business, financial operation or venture is carried on, and which is not a trust or estate, a corporation or a sole proprietorship. The term "partner" includes a member in such a syndicate, group, pool, joint venture or organization.
j. "Purchase" means, with respect to the determination of whether business relocation or business expansion property was purchased, any acquisition of property, including an acquisition pursuant to a lease, but only if:
(1) the property is not acquired from a person whose relationship to the person acquiring it would result in the disallowance of deductions under section 267 or subsection (b) of section 707 of the federal Internal Revenue Code of 1986, 26 U.S.C.s.267 or s.707;
(2) the property is not acquired by one member of a controlled group from another member of the same controlled group; and
(3) the basis of the property for federal income tax purposes, in the hands of the person acquiring it, is not determined:
a) in whole or in part by reference to the federal adjusted basis of such property in the hands of the person from whom it was acquired; or
(b) under subsection (e) of section 1014 of the federal Internal Revenue Code of 1986, 26 U.S.C. s.1014.
k. "Related person" means:
(1) a corporation, partnership, association or trust controlled by the taxpayer;
(2) an individual, corporation, partnership, association or trust that is in control of the taxpayer;
(3) a corporation, partnership, association or trust controlled by an individual, corporation, partnership, association or trust that is in control of the taxpayer; or
(4) a member of the same controlled group as the taxpayer.
56. (New section) a. There is established in the New Jersey Economic Development Authority in but not of the Department of the Treasury the “Camden Open For Business Incentive Program,” the purpose of which is to foster business investment in the City of Camden. Businesses that locate or expand in the City of Camden during the period that the city is under rehabilitation and economic recovery shall be eligible to receive a rebate from the "Corporation Business Tax Act (1945)," P.L.1945, c.162 (C.54:10A-1 et seq.) as provided herein.
b. For each year in which a taxpayer is eligible for a rebate of a portion of the incentive payment, the Director of the Division of Taxation shall certify to the State Treasurer (1) that the taxpayer’s corporation business tax return has been filed; (2) that the taxpayer's entire corporation business tax obligation has been satisfied; and (3) the amount of the taxpayer’s incentive payment entitlement. Upon such certification, the treasurer shall certify to the executive director of the New Jersey Economic Development Authority the amount of the taxpayer’s incentive payment and, subject to the approval of the Director of the Division of Budget and Accounting, transfer that incentive payment to the fund established with the proceeds of those funds appropriated pursuant to subsection b. of section 71 of P.L. , c. (pending before the Legislature as this bill).
c. The executive director of the New Jersey Economic Development Authority shall rebate to the taxpayer up to 75% of the incentive payment paid by the taxpayer and placed by the treasurer into a fund established using those funds appropriated pursuant to subsection b. of section 71 of P.L. , c. (pending before the Legislature as this bill) if the taxpayer applies for a rebate within two years of deposit of the incentive payment into the fund and establishes to the satisfaction of the executive director of the New Jersey Economic Development Authority that the taxpayer will utilize those monies for business relocation or business expansion property. The cumulative amount of monies distributed to the taxpayer pursuant to this section shall not exceed the amount paid or to be paid by the taxpayer for the business relocation or business expansion property. In the event that the taxpayer does not establish its eligibility for a rebate of a portion of the incentive payment within two years of its deposit into the fund, the fund shall retain any remaining amount of the incentive payment.
57. (New section) a. A taxpayer engaged in the conduct of business within the City of Camden and who is not receiving a benefit under the "New Jersey Urban Enterprise Zones Act," P.L.1983, c.303 (C.52:27H-60 et seq.), may apply to receive a tax credit against the amount of tax otherwise imposed under the "Corporation Business Tax Act (1945)," P.L. 1945, c. 162 (C. 54:10A-1 et seq.) equal to: $2,500 for each new full-time position at that location in credit year one and $1,250 for each new full-time position at that location in credit year two.
b. (1) The credit pursuant to subsection a. of this section for credit year one shall be allowed for the privilege period in which or with which credit year one ends; the credit pursuant to subsection a. of this section for credit year two shall be allowed for the privilege period in which or with which credit year two ends.
(2) An unused credit may be carried forward, if necessary, for use in the five privilege periods following the privilege period for which the credit is allowed.
(3) The order of priority of the application of the credit allowed under this section and any other credits allowed by law shall be as prescribed by the Director of the Division of Taxation. The amount of the credit applied under this section against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) for a privilege period, together with any other credits allowed by law, shall not exceed 50% of the tax liability otherwise due and shall not reduce the tax liability to an amount less than the statutory minimum provided in subsection (e) of section 5 of P.L.1945, c.162.
c. (1) Notwithstanding the provisions of subsection b. of this section to the contrary, the credit allowed for credit year one may be refundable at the close of the privilege period in which or with which credit year two ends, pursuant to the requirements and limitations of this subsection.
(2) That amount of the credit received for credit year one remaining, if any, after the liabilities for the privilege period in which or with which credit year two ends and for any prior privilege period have been satisfied, multiplied by the sustained effort ratio, shall be an overpayment for the purposes of section R.S.54:49-15 for the privilege period in which or with which credit year two ends; that amount of the credit received for credit year one remaining, if any, that is not an overpayment pursuant to this paragraph may be carried forward pursuant to subsection b. of this section.
d. The burden of proof shall be on the taxpayer to establish by clear and convincing evidence that the taxpayer is entitled to the credits or refund allowed pursuant to this section. The director shall by regulation establish criteria for the determination of when new or expanded operations have begun at a location. No taxpayer shall be allowed more than a single 24 month continuous period in which credits shall be allowed for activity at a location within the City of Camden pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill).
e. For the purposes of this section:
"Credit year one" means the first twelve calendar months following initial or expanded operations at a location within the City of Camden pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill).
"Credit year two" means the twelve calendar months following credit year one.
"Employee of the taxpayer" does not include an individual with an ownership interest in the business, that individual's spouse or dependants, or that individual's ancestors or descendants.
"Full time position" means a position filled by an employee of the taxpayer for at least 140 hours per month on a permanent basis, which does not include employment that is temporary or seasonal.
"New full time position" means a position that did not exist prior to credit year one. New full time positions shall be measured by the increase, from the twelve month period preceding credit year one to the measured credit year, in the average number of full-time positions and full-time position equivalents employed by the taxpayer at the location within the City of Camden pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill). The hours of employees filling part-time positions shall be aggregated to determine the number of full-time position equivalents.
"Part-time position" means a position filled by an employee of the taxpayer for at least 20 hours per week for at least 3 months during the credit year.
"Sustained effort ratio" means the proportion that the credit year two new full-time positions bears to the credit year one new full-time positions, not to exceed one.
58. (New section) Any entity which is otherwise tax-exempt pursuant to Title 54 of the Revised Statutes and which receives funding pursuant to the "Camden Rehabilitation and Economic Recovery Act," P.L. , c. (C. ) (pending before the Legislature as this bill) to finance the purchase of any real property or construction of any improvement which would otherwise be tax-exempt shall be subject to the following conditions:
a. The entity shall pay an annual service charge for a period of 20 years following the receipt of funding pursuant thereto, which shall be negotiated by the tax-exempt entity and the City of Camden according to the formula set forth pursuant to section 12 of P.L.1991, c.431 (C.40A:20-12).
b. The board shall approve in advance any facility plans or other such documentation produced by the tax-exempt entity which include detailed information concerning the projects proposed to be funded with the matching grants.
The receipt of matching funds by such an entity pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill) shall be conditioned upon compliance with the provisions of this section, as determined by the board.
59. (New section) a. For the purposes of subsection b. of this section, "residential property" shall include land, a dwelling house or a condominium unit under the form of real property ownership provided for under the "Condominium Act," P.L.1969, c.257 (C.46:8B-1 et seq.).
b. A taxpayer who shall not previously have occupied property owned by the taxpayer as a principal residence and who, during the taxable year, purchases residential property within the City of Camden for the purpose of occupying the property as the taxpayer's principal residence shall be allowed in that taxable year, and for four taxable years thereafter, a credit not to exceed $5,000 against the tax otherwise due under N.J.S.54A:1-1 et seq. The credit shall be allowed beginning in any taxable year during the period of rehabilitation and economic recovery.
No taxpayer filing either a single or a joint return shall be eligible for a credit under this section: (1) if, in a prior taxable year, the taxpayer or the taxpayer's spouse, either singly or jointly with each other or with another, shall have owned and occupied as a principal residence any residential property; or (2) if the taxpayer or the taxpayer's spouse has received an annual stipend pursuant to section 18 of P.L. , c. (C. ) (pending before the Legislature as this bill).
In the case of a husband and wife who elect to file separate tax returns, each shall, unless otherwise ineligible, be entitled to one-half of the credit allowed.
If a taxpayer who shall have been allowed a credit under the provisions of this section with respect to the purchase of residential property fails to occupy the property as the taxpayer's principal residence within one year after the date of the purchase, or terminates occupation of the property as the taxpayer's principal residence within 10 years after the date of the purchase or the date on which such occupation shall have commenced, whichever is later, the taxpayer shall be liable for tax in an amount equal to the credit previously so allowed.
ARTICLE 6. LABOR RELATIONS AND CONTRACTS
60. (New section) For the purposes of section 3 of P.L.1977, c.85 (C.34:13A-16), when deciding the award in a dispute involving public fire or police departments of the City of Camden during the rehabilitation term, the arbitrator or panel of arbitrators shall, when considering the interests and welfare of the public and the lawful authority of the employer, include in those assessments the fact that the municipality is under rehabilitation pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill).
61. (New section) During the rehabilitation term, the City of Camden may enter into arrangements with other municipalities, counties, local public authorities, or the State, for the purpose of affording the municipality those benefits which may accrue pursuant to any laws providing for contracted provision of goods or services. Notwithstanding any other provision of law to the contrary all State agencies are authorized to enter into such agreements or arrangements with the City of Camden during the rehabilitation term as are necessary or useful in furthering the purposes of P.L. , c. (C. ) (pending before the Legislature as this bill).
62. (New section) All contracts and agreements entered into by the City of Camden during the rehabilitation term pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill) shall contain provisions stating that the director or chief operating officer may, upon 30 days' notice, terminate the contract or agreement for any reason without payment of penalty or damages. This section shall not apply to collective bargaining agreements.
ARTICLE 7. MISCELLANEOUS
63. Section 2 of P.L.1991, c.266 (C.40:14B-23.1) is amended to read as follows:
2. a. As used in this section:
"Residential property" means any building or part of a building used, to be used or held for use as a home or residence, together with the land upon which it is situate. A residential property shall include single family dwellings, multifamily dwellings as defined under subsection (k) of section 3 of the "Hotel and Multiple Dwelling Law," P.L.1967, c.76 (C.55:13A-1 et seq.), and other rental unit property, and individual residences within a horizontal property regime as defined pursuant to the "Horizontal Property Act," P.L.1963, c.168 (C.46:8A-1 et seq.), or a condominium as defined pursuant to the "Condominium Act," P.L.1969, c.257 (C.46:8B-1 et seq.), units in a cooperative, and units in a mutual housing corporation;
"Cooperative" means a housing corporation or association which entitles the holder of a share or membership interest thereof to possess and occupy for dwelling purposes a house, apartment, manufactured or mobile home or other unit of housing owned or leased by the corporation or association, or to lease or purchase a unit of housing constructed or to be constructed by the corporation or association;
"Mutual housing corporation" means a corporation not-for-profit, incorporated under the laws of this State on a mutual or cooperative basis within the scope of section 607 of the "National Defense Housing Act," Pub. L. 76-849, (42 U.S.C. s. 1521 et seq.), as amended, which acquired a National Defense Housing Project pursuant to that act;
"Qualified resident" means a person who owns, rents or occupies residential property;
"Qualified entity" means a building or facility which is owned and used by:
(1) a public or private school, university, college or seminary for either classroom space or administrative office space;
(2) a church, synagogue or temple for holding religious services, or which is used to house church-, synagogue- or temple- related personnel;
(3) a clinic or hospital, including a residential building which is used to house personnel who are employed by the clinic or hospital;
(4) a nonprofit organization which operates under the provisions of Title 15A of the New Jersey Statutes, for the purposes for which the organization was created, or for administrative office space; or
(5) a business which has less than 10 full-time employees.
b. A city of the second class with a population of more than [80,000] 79,000 but less than 88,000 according to the latest federal decennial census, located in a county of the second class with a population of more than 455,000 but less than 510,000 according to the latest federal decennial census, and a county or municipal utilities authority whose operations plant is located within the city's boundaries may negotiate a host community benefit for qualified residents and qualified entities within the city. The benefit may be applied against the rate, fee or charge assessed pursuant to section 23 of P.L.1957, c.183 (C.40:14B-23) or the connection fee or tapping fee assessed pursuant to section 21 of P.L.1957, c.183 (C.40:14B-21), or both, at the discretion of the county or municipal utilities authority. The benefit shall be provided as a credit against the individual accounts of the qualified resident or entity, and the county or municipal utilities authority and the city shall negotiate the amount of the benefit. Upon agreement of the parties, the governing body of the city shall adopt an ordinance setting forth the specific requirements under the agreement. In cases in which a qualified resident is not billed directly for the county or municipal utilities authority's services, the city shall, as part of the ordinance setting forth the specific requirements of the agreement, establish procedures under which the owner of the appropriate property shall insure that the qualified resident is compensated for the amount of the credit.
(cf: P.L.1991, c.266, s.2)
64. (New section) As used in sections 65 through 69 of P.L. , c. (C. ) (pending before the Legislature as this bill):
"Property" means parcels of land and their improvements on which the municipality holds a tax lien, or which were acquired by the municipality through the property tax foreclosure process, and including such parcels that the municipality possesses and for which it acts as a receiver pursuant to section 1 of P.L.1942, c.54 (C.54:5-53.1).
"Qualified municipality" means a municipality that is qualified to receive assistance under P.L.1978, c.14 (C.52:27D-178 et seq.), a municipality under the supervision of the Local Finance Board pursuant to the provisions of the "Local Government Supervision Act (1947)," P.L.1947, c.151 (C.52:27BB-1 et seq.), a municipality that has issued qualified bonds pursuant to the provisions of the "Municipal Qualified Bond Act," P.L.1976, c.38 (C.40A:3-1 et seq.) or a municipality identified by the director to be facing serious fiscal distress.
65. (New section) Notwithstanding any other provision of law to the contrary, the governing body of a qualified municipality, by resolution, may enter contracts for property tax lien management services with organizations for the purpose of assisting the qualified municipality in managing its property. For the purposes of this section, property tax lien management services shall be comprehensive in nature given the needs of the qualified municipality, and shall include the following activities as necessary for a comprehensive program of property tax lien management:
a. Developing and administering an asset management and disposition plan for properties owned by the municipality;
b. Developing and administering activities to encourage and assist property owners in satisfying their obligations and retaining their properties, which shall include, but not be limited to working with lenders and non-profit agencies to develop programs that help residential taxpayers address their credit problems and related service programs;
c. Educating property owners about financial alternatives in addressing back taxes, including making installment payments pursuant to R.S.54:5-65 et seq.;
d. Recommending and managing possession and receivership, foreclosure, and property sale activities;
e. Assembling and marketing properties to potential buyers and developers through public sale of properties to be sold, or by assignment sale of tax liens pursuant to N.J.S.54:5-112 and N.J.S.54:5-113;
f. Developing a database of information relating to all properties for which the qualified municipality holds a lien, where at the conclusion of the contract, the contents of the database shall be provided to that municipality in an electronic format that can be used by the municipality;
g. Providing regular reports to the governing body of the qualified municipality and the tax collector on the status of property tax lien management activities and the information obtained through the management process;
h. Managing property owned by the qualified municipality in preparation for its sale, assignment, or possession; or
i. Other similar programs and activities as approved by the director.
66. (New section) Contracts for property tax lien management services shall include compensation to the contractor based on any combination of the following mechanisms:
a. A percentage of proceeds earned by the qualified municipality from the outright sale of property or from an assignment sale;
b. A percentage of the proceeds from installment agreements entered into through the efforts of the contractor;
c. A percentage of the proceeds from the management of properties assigned to the contractor as part of possession and receivership, or preparing for a sale or assignment; or
d. A fixed amount for general services affecting all parcels whose tax lien is owned by the municipality, which may, at the option of the municipality, be either prorated and charged against such properties as a municipal charge, or be appropriated as if it were subject to the provisions of sections 1 through 5 of P.L.1961, c.22 (C.40A:4-55.1 through 40A:5-55.5).
67. (New section) Contracts for property tax lien management shall be approved by the governing body of the qualified municipality and shall then be submitted to the director for approval. The mayor or other chief executive officer shall not execute the contract until the director approves the contract. If the director neither approves nor returns the contract with recommendations for amendment within 45 days of the director's receipt of the contract, then the contact shall be deemed as approved.
68. (New section) The municipal tax collector of the qualified municipality shall provide the property tax lien management service contractors with any and all information as the tax collector may have available that is related to tax liens, and shall make available records of the tax collector's office accessible to the contractor as the contractor may require. Nothing P.L. , c. (C. ) (pending before the Legislature as this bill) shall supersede the responsibility of the tax collector to collect and record property tax receipts and manage those responsibilities statutorily assigned to the tax collector.
69. (New section) Notwithstanding the provisions of the "Local Public Contracts Law," P.L.1971, c.198 (C.40A:11-1 et seq.) to the contrary, contracts for property tax lien management services shall be considered as a professional service and may be entered into for a period not to exceed three years.
ARTICLE 9. APPROPRIATIONS
70. (New section) From the proceeds of bonds authorized pursuant to section 45 of P.L. , c. (C. ) (pending before the Legislature as this bill), the New Jersey Economic Development Authority shall deposit:
a. $42 million into the "Neighborhood Redevelopment Fund" created pursuant to section 49 of P.L. , c. (C. ) (pending before the Legislature as this bill);
b. $28.5 million into the "Camden Higher Education Economic Development Fund" created pursuant to section 51 of P.L. , c. (C. ) (pending before the Legislature as this bill);
c. $12.6 million into the "Camden Regional Health Care Facilities Fund" created pursuant to section 52 of P.L. , c. (C. ) (pending before the Legislature as this bill);
d. $27 million into the "Neighborhood Revitalization Fund" created pursuant to section 49 of P.L. , c. (C. ) (pending before the Legislature as this bill);
e. $23.5 million into the "Interior Gateway Project Fund" created pursuant to section 50 of P.L. , c. (C. ) (pending before the Legislature as this bill)
f. $30 million into the "Camden Aquarium Initiative Fund" created pursuant to section 50 of P.L. , c. (C. ) (pending before the Legislature as this bill)
g. $5 million into the "Camden Brownfields Redevelopment Fund" created pursuant to section 50 of P.L. , c. (C. ) (pending before the Legislature as this bill); and
h. $5 million into the "Commercial Corridor Improvement Fund" created pursuant to section 50 of P.L. , c. (C. ) (pending before the Legislature as this bill).
Notwithstanding this division of bond funds, up to 20% of the total amount deposited into these funds may be reallocated among these funds and subaccounts thereof, with the approval of the executive director of the authority and the chief operating officer, in order to serve the economic revitalization goals which P.L. , c. (C. ) (pending before the Legislature as this bill) seeks to promote.
71. a. There is appropriated from the General Fund to the Department of Community Affairs such sums as may be required for rehabilitation aid to be allocated pursuant to subsection c. of section 26 of P.L. , c. (C. ) (pending before the Legislature as this bill).
b. There is appropriated from the General Fund to the Department of the Treasury such sums as may be required for incentive payments to be allocated pursuant to section 19 of P.L. , c. (C. ) (pending before the Legislature as this bill).
c. There is appropriated from the General Fund such sums as may be required, not to exceed $1,500,000, to the Department of Community Affairs, Division of Local Government Services for the costs of: the salaries of the chief operating officer and the staff thereto; any salary differentials incurred in recruiting qualified personnel to serve under the chief operating officer; the buyout of retirees who choose the retirement option set forth in section 19 of P.L. , c. (C. ) (pending before the Legislature as this bill); and the additional SAVER rebate provided under section 20 of P.L. , c. (C. ) (pending before the Legislature as this bill); all subject to the approval of the Director of the Division of Budget and Accounting in the Department of the Treasury.
d. There is appropriated from the General Fund to the Faith-Based Community Development Initiative in the Department of Community Affairs the sum of $2.5 million to be used by the City of Camden in accordance with program guidelines promulgated by the department and pursuant to P.L. c. (C. )(pending before the Legislature as this bill).
e. There is appropriated from the General Fund to the Department of Labor the sum of $2.5 million to capitalize the "Camden Economic Opportunity Fund" created pursuant to section 53 of P.L. c. (C. ) (pending before the Legislature as this bill).
72. This act shall take effect immediately.
STATEMENT
This bill, designated the "Camden Rehabilitation and Economic Recovery Act," establishes a comprehensive framework within which the rehabilitation and economic recovery of Camden may occur.
Based on the premise that good governance and economic viability are inextricably linked, this bill embraces a multifaceted approach toward encouraging the achievement of economic self-sufficiency on the part of the City of Camden, recognizing that this will not happen without extraordinary measures on the part of the State.
Although the Constitution expressly prohibits special legislation, the various measures contained in the bill are conceived as a pilot program, recognizing that the level of resources and State involvement preclude the initial use of this approach statewide. It is anticipated that the successful implementation of these measures in Camden will result in the emulation of this approach in other similarly situated municipalities in New Jersey and across the country.
The bill requires the Commissioner of Community Affairs, within 60 days following the bill's enactment and in consultation with the mayor, to undertake a nationwide search in order to recruit a chief operating officer, who shall be qualified by training and experience for the position, according to criteria set forth in the bill. The term of the chief operating officer shall terminate five years following the assumption of duties of that person. The chief operating officer may either be a State employee in the unclassified service or a contractor, so long as there is an identifiable person assigned to the post who works full-time in Camden City Hall. Subject to the approval of the commissioner, the salary, benefits and costs of the chief operating officer shall be fixed by the Director of the Division of Local Government Services.
The period during which the City of Camden is under the direction of the chief operating officer is referred to in the bill as the rehabilitation term. During the rehabilitation term, all of the functions, powers and duties assigned either before or after the bill's enactment by any statute, regulation, ordinance, resolution, charter or contract for municipal operations, municipal organization and reorganization, including the hiring and firing of department heads, are reallocated to the chief operating officer, who shall exercise those responsibilities in consultation with the mayor.
In certain instances, impasses in decision making may be referred to a special arbitrator who is designated in the bill as the assignment judge of the vicinage of Camden County. The bill specifically calls upon the special arbitrator to resolve impasses which arise with regard to council ratification of interim and subsequent department head appointments by the chief operating officer, and the override by city council of the chief operating officer's veto of an ordinance. In addition, the chief operating officer is granted blanket power to refer disputes to the special arbitrator for resolution. The bill sets forth criteria to guide the special arbitrator in making his or her determinations.
Upon the assumption of job responsibilities by the chief financial officer, the financial review board created pursuant to section 5 of P.L.1999, c.156 (C.52:27D-118.30a) to oversee the finances of the City of Camden shall cease to function and the municipality shall cease to be under supervision pursuant to Article 4 of P.L.1947, c.151 (C.52:27BB-54 et seq.). All outstanding debts or obligations previously incurred by the City of Camden with any State agency shall be assumed by the State. Notwithstanding the termination of supervision and of the financial review board, all memorandums of understanding entered into by the city as a condition of receiving assistance under P.L.1987, c.75 (C.52:27D-118.24 et seq.) that require the city to implement any government, administrative, operational efficiency or oversight measures necessary for the fiscal recovery of the municipality as recommended by the director and approved by the board shall continue to have full force and effect, except for those that place a limitation on the hiring, promotion or transfer of personnel.
The bill establishes a subsidiary of the New Jersey Economic Development Authority (EDA) to be known as the State Economic Recovery Board for the City of Camden which is to consist of 11 voting members, including the mayor of the City of Camden, the chief operating officer, the State Treasurer, the Commissioner of Community Affairs, the chairperson of the EDA, the director of the Camden County Board of Chosen Freeholders, a member of the Senate and the General Assembly, and three public members. The board is to be chaired by the chairperson of the EDA and the voting authority of the Camden County Board of Chosen Freeholders shall not become effective until an agreement between the city and the county has been concluded establishing the financial commitment of the county to the city's redevelopment.
The board is called upon to assist in the preparation of the capital improvement and infrastructure master plan and to marshal resources necessary to assure its implementation.
The board is also charged with the review and approval of the plans of the various entities designated as eligible for funding under the bill as a condition for receiving those funds. Additionally, the board is to serve as a critical link between the city government and those State and nonprofit entities receiving funding under the bill through the bond issue and direct appropriations.
The chief operating officer shall convene a community advisory committee in order to provide an efficient means of eliciting citizen input in the rehabilitation and economic recovery and community development of the City of Camden. This committee would consist of 13 members, to include the mayor, ex officio, three appointees of the Commissioner of Community Affairs, three appointees of the city council and three appointees of the chief operating officer.
At the end of the four years following the commencement of duties by the chief operating officer, the chief operating officer is required to submit a report to the Governor, members of the State Economic Recovery Board for the City of Camden, each member of the Senate and General Assembly, the mayor and each member of the governing body of the City of Camden evaluating progress made in rehabilitating the City of Camden and the status of economic recovery efforts.
The bill requires the preparation of a series of plans to guide the rehabilitation of city government and the upgrade of urban infrastructure in order to facilitate revitalization with emphasis not only on the central business district, but the city's residential neighborhoods.
Upon the assumption of duties of the part of the chief operating officer, the chief operating officer is required to undertake the preparation of a municipal management study which analyzes the current state of all services provided by each municipal department and the service levels provided in similarly situated municipalities. The study shall include police and fire services provided by the municipality and shall include reference to those studies previously completed by the State during the period of supervision.
The study shall also include recommendations for the reorganization of municipal government structure, and any training deemed necessary for the existing city workforce, including a program of computer and technology training. The bill authorizes the relaxation of the residency requirement which currently pertains to the city workforce, but provides financial incentives to encourage municipal employees to live in the City of Camden. The municipal management study shall be used as the basis for any recommended changes in municipal organization, to be effectuated by amendments to the municipality's administrative code and ordinance, including salary ordinances.
Additionally, the bill requires the board, in consultation with the mayor and the chief operating officer, to oversee the preparation of a capital improvement and infrastructure plan for the city, which includes a detailed blueprint for the separation of storm drains from the sewer system throughout the city. The plan is also to include those features of the municipal capital improvement program authorized under existing law, incorporating a time frame for making improvements necessary in the public water system to accommodate proposed redevelopment in the city and surrounding areas.
The bill requires the chief operating officer to undertake a property tax collection audit in order to identify those properties which are in arrears or subject to tax foreclosure. Following completion of the audit, the chief operating officer shall submit the study to the Commissioner of Community Affairs, who shall designate the EDA or the State Economic Recovery Board for the City of Camden to assist in the preparation of a demolition funding plan. The bill calls for the reappropriation of demolition moneys allocated to the city to the Delaware River Port Authority (DRPA) or the EDA and requires the conveyance of certain city properties acquired through tax sale to the DRPA during the period of rehabilitation and economic recovery.
The bill contains a comprehensive and all-embracing series of financial incentives designed to rebuild the city's infrastructure, enhance the quality of life through the funding of amenities such as the aquarium expansion, build upon and promote the resources that are already present in the City of Camden, such as the hospitals and universities, promote business development and expansion through various tax incentives, and encourage people of all incomes to buy houses in the City of Camden by increasing the NJ SAVER rebate for people who do, and allowing an income tax credit for those who make Camden their home.
The bill authorizes the issuance of $173.6 million in bonds on the part of the New Jersey Economic Development Authority in order to capitalize a series of funds, the bill's principal source of moneys to allow for grants and loans of a sufficient scale and visibility to expand and sustain economic activity in the City of Camden. The fund is to be divided as follows:
(1) the Interior Gateway Fund ($23.5 million) to be used to make grants, matching grants or loans to support streetscape improvements, facade restoration, street resurfacing, demolition, property acquisition and redevelopment projects;
(2) the Neighborhood Revitalization Fund ($27 million) to be used to make grants, matching grants or loans to support clean community activities, water and sewer improvements, and various neighborhood-based activities outside of the central business district;
(3) the Neighborhood Redevelopment Fund ($42 million) to be used to provide grants, matching grants or loans to support neighborhood rehabilitation, land acquisition, demolition and redevelopment;
(4) the Camden Brownfields Redevelopment Fund ($5 million) to provide grants, matching grants or loans to support brownfields remediation in order to foster redevelopment;
(5) the Commercial Corridor Improvement Fund ($5 million) to provide grants, matching grants or loans to support streetscape improvements, facade restoration, street signage improvements and restoration of commercial structures situated outside the central business district; and
(6) the Camden Aquarium Initiative Fund ($30 million) to make funds available, on a matching basis, for the expansion and upgrade of the aquarium, including the retirement of existing debt.
The bill supports existing institutions of higher education through the creation of the $28.5 million "Camden Higher Education Economic Development Fund" to provide matching grants, on a one-to-one matching basis, to non-profit educational institutions in order to encourage the development of student housing, retail facilities and commercial enterprises in the central business district of the City of Camden.
The bill supports existing health care facilities through the creation of the $12.6 million "Camden Regional Health Care Facilities Fund" to provide matching grants to regional health care facilities to allow for facility expansion, including but not limited to, facilities for pre-admission testing, occupational health and emergency room facilities.
The bill authorizes the EDA to enter into a management agreement with the Delaware River Port Authority to authorize that entity to assume project management responsibilities under the bill.
The bill creates within the Department of Labor the $2.5 million "Camden Economic Opportunity Fund" in order to allow for the creation of a job training program designed specifically to address the unique conditions which pertain within the City of Camden.
The bill also calls for the targeting of $2.5 million by the Department of Community Affairs to the City of Camden as part of its existing Faith-Based Community Development Initiative and makes the necessary appropriation.
The bill appropriates the sum of $1.5 million to the Department of Community Affairs to cover the various increased responsibilities assigned to that department in implementing this bill.