ASSEMBLY, No. 89
STATE OF NEW JERSEY
Introduced Pending Technical Review by Legislative Counsel
PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION
By Assemblymen ROONEY and ROCCO
An Act concerning solid waste disposal, supplementing P.L.1970, c.39 (13:1E-1 et seq.), and amending various parts of the statutory law.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. (New section) Sections 1 through 10 inclusive of this act shall be known and may be cited as the "Solid Waste Facility Debt Retirement Act."
2. (New section) As used in this act:
"Debt retirement surcharge" means the solid waste facility debt retirement surcharge imposed pursuant to section 3 of this act.
"Debt retirement surcharge fund" means the Solid Waste Facility Debt Retirement Surcharge Fund established pursuant to section 7 of this act.
"Director" means the Director of the Division of Taxation.
"Municipal solid waste stream" means all residential, commercial and institutional solid waste generated within the boundaries of any municipality.
"Public authority" means a solid waste management authority created pursuant to the "solid waste management authorities law," P.L.1968, c.249 (C.40:66A-32 et seq.); a municipal or county utilities authority created pursuant to the "municipal and county utilities authorities law," P.L.1957, c.183 (C.40:14B-1 et seq.); an incinerator authority created pursuant to the "incinerator authorities law," P.L.1948, c.348 (C.40:66A-1 et seq.); a county improvement authority created pursuant to the "county improvement authorities law," P.L.1960, c.183 (C.40:37A-44 et seq.); a pollution control financing authority created pursuant to the "New Jersey Pollution Control Financing Law," P.L.1973, c.376 (C.40:37C-1 et seq.); or any other public body corporate and politic created for solid waste management purposes in any county or municipality pursuant to the provisions of any law.
"Solid waste facility" means a solid waste facility as defined in section 3 of P.L.1970, c.39 (C.13:1E-3).
3. (New section) a. There is levied upon the governing body of every municipality a solid waste facility debt retirement surcharge of $10 per ton of solid waste generated from the municipal solid waste stream within the municipality.
b. If any owner or operator of a registered solid waste facility determines the quantity of solid waste accepted for disposal or transfer by a measure other than tons, the surcharge imposed pursuant to this section shall be levied at an equivalent rate as determined by the director.
4. (New section) Every municipality shall, on or before March 15 of each year, prepare and file a report for the preceding calendar year with the director on forms the director shall prescribe indicating the number of tons of solid waste generated from the municipal solid waste stream within the municipality. The municipality shall remit the amount owed with the report.
5. (New section) The surcharge imposed on municipal solid waste generation shall expire on December 31 next following the date all outstanding principal and interest and administrative charges and other charges incurred as of May 15, 1994 on the debt service have been defeased. However, this expiration shall not affect any obligation, lien or duty to pay surcharges that may be due with respect to the imposition of any levy, or interest or penalties that may accrue by virtue of any assessment, which may be made with respect to surcharges levied for any year or part of a year prior to the first day of the second calendar year following the imposition of the surcharge, nor shall this expiration affect the legal authority to assess and collect the surcharges that may be due and payable under this section, as the case may be, together with such interest and penalties as would accrue thereon under this section, nor shall the expiration invalidate any assessment or affect any proceeding for the enforcement thereof.
6. (New section) If a report required by this act is not filed, or if a report when filed is incorrect or insufficient in the opinion of the director, the amount of the surcharge due shall be determined by the director from such information as may be available. Notice of such determination shall be given to the municipality liable for the payment of the surcharge. Such determination shall finally and irrevocably fix the surcharge unless the governing body of the municipality against whom it is assessed, within 30 days after receiving notice of such determination, shall apply to the director for a hearing, or unless the director on his own motion shall redetermine the same. After such hearing the director shall give notice of his determination to the municipality to which the surcharge is assessed.
7. (New section) The Solid Waste Facility Debt Retirement Surcharge Fund is established in the Department of Treasury. The debt retirement surcharge fund shall be the depository for revenue generated by the debt retirement surcharge imposed pursuant to section 3 of this act, and any interest earned thereon, and shall be disbursed pursuant to this 8 section of this act.
8. (New section) a. Prior to the disbursement of any moneys in the fund, the costs of administering and collecting the surcharge shall be paid to the director out of the fund, up to an amount not to exceed 2% of the total revenues deposited in the fund during the fiscal year.
b. The moneys in the debt retirement surcharge fund shall be allocated and used to provide State aid to counties and public authorities for retiring the debt service on bonds issued as of May 15, 1994 to finance solid waste facilities. The amount of this State aid shall be calculated based on the proportion that the outstanding debt of the county or public authority bears to the total outstanding debt of all counties and public authorities that have issued bonds to finance the development, operation and maintenance of solid waste facilities in the State. The Local Finance Board in the Division of Local Government Services in the Department of Community Affairs shall certify the amount of bonded indebtedness.
9. (New section) Each county that has outstanding debt on bonds issued to finance solid waste facilities shall establish a District Solid Waste Facility Debt Retirement Surcharge Fund which shall be the depository for the moneys appropriated to each county pursuant to this act and shall be administered by the governing body of each county.
10. (New section) The Division of Taxation shall adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), any rules and regulations necessary to implement the provisions of this act. The division shall adopt these rules and regulations within 270 days of the effective date of this act.
11. Section 33 of P.L.1957, c.183 (C.40:14B-33) is amended to read as follows:
33. Neither the members of the municipal authority nor any person executing bonds issued pursuant to this act shall be liable personally on the bonds by reason of the issuance thereof. Bonds or other obligations issued pursuant to this act shall not be in any way a debt or liability of the State, and bonds or other obligations issued by a municipal authority pursuant to this act shall not be in any way a debt or liability of the State or of any local unit or of any county or municipality and shall not create or constitute any indebtedness, liability or obligation of the State or of any such local unit, county or municipality, either legal, moral or otherwise, and nothing in this act contained shall be construed to authorize any municipal authority to incur any indebtedness on behalf of or in any way to obligate the State or any county or municipality. The authority may receive moneys from the Solid Waste Facility Debt Retirement Surcharge Fund pursuant to section 8 of P.L. , c. (C. ) (now before the Legislature as this bill).
(cf: P.L.1957, c.183, s.33)
12. Section 23 of P.L.1960, c.183 (C.40:37A-66) is amended to read as follows:
23. Neither the members of an authority nor any person executing bonds issued pursuant to this act shall be liable personally on the bonds by reason of the issuance thereof. Bonds or other obligations issued by an authority pursuant to this act shall not be in any way a debt or liability of the State or any subdivision thereof and shall not create or constitute any indebtedness, liability or obligation of the State or any such subdivision, except the authority and any county which in accordance with this act shall have guaranteed payment of the principal of and interest on such bonds. The authority may receive moneys from the Solid Waste Facility Debt Retirement Surcharge Fund pursuant to section 8 of P.L. , c. (C. ) (now before the Legislature as this bill).
(cf: P.L.1960, c.183, s.23)
13. Section 10 of P.L.1973, c.376 (C.40:37C-10) is amended to read as follows:
10. Bonds issued under the provisions of this act shall not be deemed to constitute a debt or liability of the State or of any political subdivision thereof, but shall be payable solely from the funds herein provided therefor. The issuance of bonds under the provisions of this act shall not, directly, indirectly or contingently, obligate the State or any political subdivision thereof to levy any form of taxation therefor or to make any appropriation for their payment. Nothing in this act shall be construed to authorize an agency to create a debt of the State or any county or municipality within the meaning of the Constitution or statutes of New Jersey and all bonds issued by such authority pursuant to the provisions of this act, unless funded or refunded pursuant to this act, are payable and shall state that they are payable solely from the funds pledged for their payment in accordance with the resolution authorizing their issuance or in any indenture executed as security therefor. The State, county, and municipality shall not in any event be liable for the payment of the principal of or interest or premiums, if any, on any bonds of an authority or for the performance of any pledge, obligation or agreement of any kind whatsoever which may be undertaken by such authority. No breach by an authority of any such pledge, obligation or agreement may impose any pecuniary liability upon the State, county or municipality or any charge upon their general credit or against their taxing power.
The State, however, does pledge and agree with the holders of any bonds issued under this act that it will not limit or alter the rights hereby vested in any authority to fulfill the terms of any agreements made with the holders thereof consistent herewith, or in any way impair the rights and remedies of such holders until such bonds, together with the interest thereon, with interest on any unpaid installments of interest, and all costs and expenses for which the authority is liable in connection with any action or proceeding by or on behalf of such holders, are fully met and discharged. Any authority is authorized to include this pledge and agreement of the State in any agreement it may make with the holders of such bonds. The authority may receive moneys from the Solid Waste Facility Debt Retirement Surcharge Fund pursuant to section 7 of P.L. , c. (C. ) (now before the Legislature as this bill).
(cf: P.L.1973, c.376, s.10)
14. Section 16 of P.L.1948, c.348 (C.40:66A-16) is amended to read as follows:
16. Neither the members of the incinerator authority nor any person executing bonds issued pursuant to this act shall be liable personally on the bonds by reason of the issuance pursuant to this act shall not be in any way a debt or liability of the State, and bonds or other obligations issued by an incinerator authority pursuant to this act shall not be in any way a debt or liability of the State or of any local unit or municipality. The authority may receive moneys from the Solid Waste Facility Debt Retirement Surcharge Fund pursuant to section 8 of P.L. , c. (C. ) (now before the Legislature as this bill).
(cf: P.L.1948, c.348, s.16)
15. Section 16 of P.L.1968, c.249 (C.40:66A-49) is amended to read as follows:
16. Neither the member of the solid waste management authority nor any person executing bonds issued pursuant to this act shall be liable personally on the bonds by reason of the issuance thereof. Bonds or other obligations issued pursuant to this act shall not be in any way a debt or liability of the State, and bonds or other obligations issued by a solid waste management authority pursuant to this act shall not be in any way a debt or liability of the State or of any local unit or municipality. The authority may receive moneys from the Solid Waste Facility Debt Retirement Surcharge Fund pursuant to section 8 of P.L. , c. (C. ) (now before the Legislature as this bill).
(cf: P.L.1968, c.249, s.16)
16. This act shall take effect upon enactment into law of P.L. , c. (C. ) (now before the Legislature as Assembly Bill No. 2626 of 1995).
STATEMENT
This bill would impose a surcharge on solid waste generation. The moneys would be used to offset the accumulated bonded indebtedness incurred by counties and public authorities in constructing and operating registered solid waste facilities. The aggregate bonded indebtedness is approximately $1.47 million.
Specifically, this bill, the "Solid Waste Facility Debt Retirement Act," would impose a $10 per ton surcharge on solid waste generated from the municipal solid waste stream within each municipality. The moneys collected would be deposited in the Solid Waste Facility Debt Retirement Surcharge Fund. The moneys in the fund would be allocated and used to provide State aid to counties and public authorities for retiring the debt service on bonds issued as of May 15, 1994 to finance solid waste facilities. The amount of State aid shall be calculated based on the proportion that the outstanding debt of the county or public authority bears to the total outstanding debt of all counties and public authorities that have issued bonds to finance the development, operation and maintenance of solid waste facilities. The Local Finance Board in the Department of Community Affairs would certify the amount of bonded indebtedness. In addition, the bill would amend sections of law concerning public authorities to provide that they may receive moneys from the Solid Waste Facility Debt Retirement Surcharge Fund to assist in retiring outstanding bond obligations. Finally, the bill would not take effect until enactment of Assembly Bill No. 2626 of 1995, which would require every municipality to assume responsibility for the collection and disposal of municipal solid waste.
Creates debt retirement fund to defray cost of county solid waste disposal facility bonded indebtedness.