A1512

An Act amending the "Stormwater Management and Combined Sewer Overflow Abatement Bond Act of 1989" to authorize the Department of Environmental Protection and the New Jersey Environmental Infrastructure Trust to use bond moneys therefrom to make low or zero interest loans to local government units for financing the construction of stormwater management and combined sewer overflow abatement projects; providing for the submission of this amendatory act to the people at a general election and making an appropriation.

"Combined sewer system" means a [wastewater treatment system that carries both wastewater and stormwater runoff] sewer system designed to carry sanitary sewage at all times, which is also designed to collect and transport stormwater runoff from streets and other sources, thereby serving a combined purpose;

"Combined sewer overflow" means the discharge of untreated or partially treated stormwater runoff and wastewater from a combined sewer into a body of water;

"Construction" means, in addition to the usual meaning thereof, acts of construction, reconstruction, improvement, rehabilitation, relocation, demolition, renewal, repair, replacement, extension, improvement, and betterment;

"Cost" means the expenses incurred in connection with: the acquisition by purchase, lease, or otherwise, and the construction of a project authorized by this act; the acquisition by purchase, lease, or otherwise, and the development of any real or personal property for use in connection with a project authorized by this act, including any rights or interests therein; the execution of any agreements and franchises deemed by the department to be necessary or useful and convenient in connection with any project authorized by this act; the procurement of engineering, inspection, planning, legal, financial, or other professional services, including the services of a bond registrar or an authenticating agent; the issuance of bonds, or any interest or discount thereon; the administrative, organizational, operating, or other expenses incident to the financing, completing, and placing into service of any project authorized by this act; the establishment of a reserve fund or funds for working capital, operating, maintenance, or replacement expenses and for the payment or security of principal or interest on bonds, as the Director of the Division of Budget and Accounting in the Department of the Treasury may determine; and reimbursement to any fund of the State of moneys which may have been transferred or advanced therefrom to any fund created by this act, or of any moneys which may have been expended therefrom for, or in connection with, any project authorized by this act;

"Government securities" means any bonds or other obligations which as to principal and interest constitute direct obligations of, or are unconditionally guaranteed by, the United States of America, including obligations of any federal agency, to the extent those obligations are unconditionally guaranteed by the United States of America, and any certificates or any other evidences of an ownership interest in those obligations of, or unconditionally guaranteed by, the United States of America or in specified portions which may consist of the principal of, or the interest on, those obligations;

"Local government unit" means a county, municipality, municipal or county sewerage authority or utilities authority, municipal sewerage district, joint meeting or any other political subdivision of the State authorized pursuant to law to construct, operate or maintain a stormwater management system or a combined sewer system;

"Project" means any work relating to any of the stormwater management or combined sewer overflow abatement projects identified in the stormwater management and combined sewer overflow abatement project priority list adopted by the commissioner pursuant to section 28 of [this act] P.L.1989, c.181;

"Stormwater management system" means any equipment, plants, structures, machinery, apparatus, management practices, or land, or any combination thereof, acquired, used, constructed, implemented or operated by a local government unit to prevent nonpoint source pollution, abate improper cross-connections and interconnections between stormwater and sewer systems, minimize stormwater runoff, reduce soil erosion, or induce groundwater recharge, or any combination thereof;

"Trust" means the New Jersey Environmental Infrastructure Trust established pursuant to the "New Jersey Environmental Infrastructure Trust Act," P.L.1985, c.334 (C.58:11B-1 et seq.);

"Wastewater" means residential, commercial, industrial, or agricultural liquid waste, sewage, or any combination thereof, or other liquid residue discharged or collected into a sewer system or stormwater [runoff] management system, or any combination thereof; and

"Wastewater treatment system" means any equipment, plants, structures, machinery, apparatus, or land, or any combination thereof, acquired, used, constructed or operated by a local government unit for any or all of the following: the storage, collection, reduction, recycling, reclamation, disposal, separation, or other treatment of wastewater or sewage sludge; the collection or treatment, or both, of stormwater runoff and wastewater; or the final disposal of residues resulting from the treatment of wastewater, including, but not limited to, pumping and ventilating stations, treatment plants and works, connections, outfall sewers, interceptors, trunk lines, stormwater [runoff collection] management systems, and other personal property and appurtenances necessary for their use or operation.

5. a. Bonds of the State of New Jersey are authorized to be issued in the aggregate principal amount of $50,000,000 for the [purpose] purposes of (1) providing grants to local government units for financing the costs of the mapping, planning or designing of stormwater management and combined sewer overflow abatement projects; and (2) making loans to local government units for financing the costs of stormwater management and combined sewer overflow abatement projects, all as identified pursuant to the stormwater management and combined sewer overflow abatement project priority list adopted by the commissioner pursuant to section 28 of this act. [The rate of interest on loans to local government units for projects shall be 2% per annum.]

b. Of the total principal amount authorized pursuant to subsection a. of this section:

(1) Not less than $45,000,000 is allocated to the department for the purposes of (a) providing grants to local government units for financing the costs of the mapping, planning or designing of stormwater management and combined sewer overflow abatement projects; and (b) making low or zero interest loans to local government units for financing the costs of stormwater management and combined sewer overflow abatement projects, all as designated and authorized pursuant to section 28 of P.L.1989, c.181; and

(2) No more than $5,000,000 is allocated for payment to, and use by, the trust in establishing reserves and providing loan guarantees in accordance with paragraph (2) of subsection a. of section 15 of P.L.1989, c.181.

If the "New Jersey Environmental Infrastructure Trust Act" (before the Legislature as Assembly Bill No. of 1996) has not been enacted into law by the date of the approval of this act by the voters, the bonds allocated pursuant to paragraph (2) of this subsection shall be allocated with the bonds allocated pursuant to paragraph (1) of this subsection, and subsection b. of section 14 of P.L.1989, c.181 and paragraph (2) of subsection a. of section 15 of P.L.1989, c.181 shall be inoperative.

10. a. The bonds shall recite that they are issued for the purposes set forth in section 5 of [this act] P.L.1989, c.181, that they are issued pursuant to this act, that this act was submitted to the people of the State at the general election held in the month of November, 1989, and that this act was approved by a majority of the legally qualified voters of the State voting thereon at the election. [This recital] The bonds shall also recite, if issued after the effective date of P.L. , c. (before the Legislature as this bill), that the amendments to P.L.1989, c.181 were submitted to the people of the State at the general election held in the month of November, 1996, and were approved by a majority of the legally qualified voters of the State voting thereon. These recitals shall be conclusive evidence of the authority of the State to issue the bonds and their validity. Any bonds containing [this recital] the recitals shall, in any suit, action or proceeding involving their validity, be conclusively deemed to be fully authorized by this act and to have been issued, sold, executed and delivered in conformity herewith and with all other provisions of laws applicable hereto, and shall be incontestable for any cause.

b. The bonds shall be issued in those denominations and in the form or forms, whether coupon, fully-registered or book-entry, and with or without provisions for interchangeability thereof, as may be determined by the issuing officials.

14. a. The proceeds from the sale of the bonds [and any repayment of the principal and interest on loans made to local government units pursuant to this act] allocated pursuant to paragraph (1) of subsection b. of section 5 of P.L.1989, c.181 shall be paid to the State Treasurer [to be held by the State Treasurer] for deposit in a separate nonlapsing revolving fund, which shall be known as the "Stormwater Management and Combined Sewer Overflow Abatement Fund[.]," [The proceeds of this fund shall be deposited in those depositories as may be selected by the State Treasurer to the credit of the fund] for use by the department as hereinafter provided.

b. The proceeds from the sale of bonds allocated pursuant to paragraph (2) of subsection b. of section 5 of P.L.1989, c.181 shall be paid to the State Treasurer for deposit in a separate nonlapsing revolving fund, which shall be known as the "Stormwater Management and Combined Sewer Overflow Abatement Trust Fund," for use by the trust as hereinafter provided.

15. a. (1) The moneys in the "Stormwater Management and Combined Sewer Overflow Abatement Fund" are specifically dedicated and shall be applied to the [cost of the purposes set forth in section 5 of this act] financing of the costs of stormwater management and combined sewer overflow abatement projects designated and authorized pursuant to section 28 of P.L.1989, c.181. However, no moneys in the fund shall be expended for those purposes, except as otherwise authorized by this act, without the specific appropriation thereof by the Legislature, but bonds may be issued as herein provided, notwithstanding that the Legislature shall not have then adopted an act making a specific appropriation of any of the moneys. Any act appropriating moneys from the "Stormwater Management and Combined Sewer Overflow Abatement Fund" shall identify the project to be funded by the moneys.

Payments of principal and interest on loans made from the "Stormwater Management and Combined Sewer Overflow Abatement Fund" shall be returned to that fund for use for any authorized purpose to which moneys in the fund may be used pursuant to P.L.1989, c.181. Moneys in the "Stormwater Management and Combined Sewer Overflow Abatement Fund" may be made available to the trust, with the concurrence of the department, for temporary use by the trust for any of the purposes set forth in paragraph (2) of this subsection, under terms and conditions established therefor by the commissioner and the trust and approved by the State Treasurer.

The trust shall repay to the "Stormwater Management and Combined Sewer Overflow Abatement Fund" any sums made available for temporary use. Repayment shall be in accordance with the terms and conditions approved therefor.

(2) The moneys in the "Stormwater Management and Combined Sewer Overflow Abatement Trust Fund" are specifically dedicated and allocated to, and shall be applied to the cost of, the establishment by the trust of reserve and loan guarantee accounts within that fund. The reserve account is to be used to secure debt issued by the trust pursuant to P.L.1985, c.334 (C.58:11B-1 et seq.); and the guarantee account is to be used by the trust to secure debt issued by a local government unit. The trust shall not directly or indirectly use any moneys paid to it pursuant to this paragraph for the purpose of issuing a loan guarantee in connection with the financing of a stormwater management or combined sewer overflow abatement project, unless the project, and the amount and the terms or conditions of the loan guarantee, shall have been approved by the Legislature. Moneys in the reserve and loan guarantee accounts may be made available to the department, with the concurrence of the trust, for temporary use by the department in implementing the provisions of P.L.1989, c.181, under terms and conditions established therefor by the commissioner and the trust and approved by the State Treasurer. The department shall repay to the "Stormwater Management and Combined Sewer Overflow Abatement Trust Fund" any sums made available for temporary use. Repayment shall be in accordance with the terms and conditions approved therefor.

(3) Moneys in the "Stormwater Management and Combined Sewer Overflow Abatement Fund" may be transferred to the trust for use as set forth in paragraph (2) of this subsection.

b. At any time prior to the issuance and sale of bonds under this act, the State Treasurer is authorized to transfer from any available moneys in any fund of the treasury of the State to the credit of the "Stormwater Management and Combined Sewer Overflow Abatement Fund" or the "Stormwater Management and Combined Sewer Overflow Abatement Trust Fund" those sums as the State Treasurer may deem necessary. The sums so transferred shall be returned to the same fund of the treasury of the State by the State Treasurer from the proceeds of the sale of the first issue of bonds.

c. Pending their application to the purposes provided in this act, the moneys in the "Stormwater Management and Combined Sewer Overflow Abatement Fund" may be invested and reinvested as are other trust funds in the custody of the State Treasurer, in the manner provided by law, and moneys in the "Stormwater Management and Combined Sewer Overflow Abatement Trust Fund" may be invested and reinvested by the trust as are other trust funds in the custody of the [State Treasurer, in the manner provided by law] trust.

Net earnings received from the investment or deposit of moneys in the "Stormwater Management and Combined Sewer Overflow Abatement Fund" shall be paid [into the General Fund] to that fund for use by the department to cover administrative expenses incurred in administering that fund, and net earnings received from the investment or deposit of moneys in the "Stormwater Management and Combined Sewer Overflow Abatement Trust Fund" shall be paid to that fund for use by the trust to cover administrative expenses incurred in administering that fund. Any moneys not required for administrative expenses shall be used for any other authorized purpose to which moneys in the respective funds may be used.

d. The department and the trust may charge and collect annually from local government units fees and charges in connection with any loans, guarantees or other services provided by the department or the trust, in amounts sufficient to reimburse the department or the trust for all reasonable costs necessarily incurred in connection therewith, and in connection with the establishment and maintenance of reserve or other funds, as the department or trust may determine to be reasonable.

28. The commissioner shall [for each fiscal year], on or before January 15 of each year, develop and submit to the Legislature a priority system for stormwater management system and combined sewer overflow abatement projects and shall establish the ranking criteria and funding policies for the projects therefor. The commissioner shall set forth a stormwater management system and combined sewer overflow abatement project priority list for funding for each fiscal year and shall include the aggregate amount of funds to be authorized for these purposes. No [monies] moneys shall be expended for grants or loans in a fiscal year for any stormwater management system or combined sewer overflow abatement project unless the expenditure is authorized pursuant to an appropriations act. As part of the annual submission required by this subsection, the department and the trust shall each provide a financial accounting of all project expenditures made in the preceding year, and of all administrative expenses incurred by the department and the trust from interest earnings from the "Stormwater Management and Combined Sewer Overflow Abatement Fund" and the "Stormwater Management and Combined Sewer Overflow Abatement Trust Fund" in connection therewith.

29. Not less than 30 days prior to entering into any contract, lease, obligation, or agreement to effectuate the purposes of this act, the [commissioner] commissioner or the trust shall report to and consult with the Joint Budget Oversight Committee, or its successor.

30. All appropriations from the [bond fund] "Stormwater Management and Combined Sewer Overflow Abatement Fund" shall be by specific allocation for each project, and any transfer of any funds so appropriated shall require the approval of the Joint Budget Oversight Committee or its successor.

9. (New section) For the purpose of complying with the provisions of the State Constitution, this act shall be submitted to the people at the general election to be held in the month of November, 1996. To inform the people of the contents of this act, it shall be the duty of the Secretary of State, after this section takes effect, and at least 60 days prior to the election, to cause this act to be published at least once in one or more newspapers of each county, if any newspapers are published therein, and to notify the clerk of each county of this State of the passage of this act; and the clerks respectively, in accordance with the instructions of the Secretary of State, shall have printed on each of the ballots the following:

If you approve of the act entitled below, make a cross (X), plus (+), or check () mark in the square opposite the word "Yes."

If you disapprove of the act entitled below, make a cross (X), plus (+), or check () mark in the square opposite the word "No."

If voting machines are used, a vote of "Yes" or "No" shall be equivalent to these markings respectively.

		STORMWATER MANAGEMENT AND COMBINED SEWER OVERFLOW ABATEMENT BOND ISSUE
	YES	Shall the amendments to the "Stormwater Management and Combined Sewer Overflow Abatement Bond Act of 1989," which authorize the Department of Environmental Protection and the New Jersey Environmental Infrastructure Trust to use such bonds to make low or zero interest loans to local governments for financing the cost of stormwater management and combined sewer overflow abatement projects, and to establish reserve and guarantee accounts in conjunction therewith, be approved?
		INTERPRETIVE STATEMENT
	NO	Approval of the amendments to the "Stormwater Management and Combined Sewer Overflow Abatement Bond Act of 1989," would authorize the use of moneys from bonds issued pursuant to that act to make low or zero interest loans to local governments, and to establish reserve and guarantee accounts in conjunction therewith. The loans are to be used to finance the costs of projects to manage stormwater and to abate overflows of combined wastewater and stormwater sewers in order to minimize or prevent certain discharges of pollutants into the State's waters. Authorization for the issuance of the bonds was approved by the voters in 1989. The proposed revisions to the bond act under this act authorize the Department of Environmental Protection and the New Jersey Environmental Infrastructure Trust to administer a combined loan and loan guarantee program for stormwater management and combined sewer overflow abatement projects. Approval of these revisions to the "Stormwater Management and Combined Sewer Overflow Abatement Bond Act of 1989" would not involve any new State bonded indebtedness.

The fact and date of the approval or passage of this act, as the case may be, may be inserted in the appropriate place after the title in the ballot. No other requirements of law of any kind or character as to notice or procedure, except as herein provided, need be adhered to.

The votes so cast for and against the approval of this amendatory act, by ballot or voting machine, shall be counted and the result thereof returned by the election officer, and a canvass of the election had in the same manner as is provided for by law in the case of the election of a Governor, and the approval or disapproval of this act so determined shall be declared in the same manner as the result of an election for a Governor, and if there is a majority of all the votes cast for and against it at the election in favor of the approval of this amendatory and supplementary act, then all the provisions thereof not made effective theretofore shall take effect forthwith.

10. (New section) There is appropriated, from the General Fund, the sum of $5,000 to the Department of State for expenses in connection with the publication of the notice required pursuant to section 9 of P.L. , c. (before the Legislature as this bill).

11. Sections 9 and 10 of this act shall take effect immediately, and the remainder of the act shall take effect as and when provided in section 9 of this act.

The bill amends the "Stormwater Management and Combined Sewer Overflow Abatement Bond Act of 1989" (P.L.1989, c.181) to permit the Department of Environmental Protection (DEP) and the New Jersey Environmental Infrastructure Trust (Trust) to use the bond moneys to make low interest loans to local governments for stormwater management and overflow abatement projects. The 1989 bond act was approved in November, 1989 by the voters of New Jersey. The bill's proposed changes to that act must also be approved by the electorate. The ballot question is to be submitted for approval at the general election to be held in November, 1996.

The bill provides that the $50,000,000 authorized by P.L.1989, c.181 would be used for the purposes of (1) providing grants to local governments for financing the costs of the mapping, planning or designing of stormwater management and combined sewer overflow abatement projects; and (2) making loans to local governments for financing the costs of stormwater management and combined sewer overflow abatement projects, all as identified pursuant to the stormwater management and combined sewer overflow abatement project priority list to be adopted by the Commissioner of DEP pursuant to section 28 of P.L.1989, c.181, as amended by the bill.

The bill provides for two separate, nonlapsing revolving funds: the "Stormwater Management and Combined Sewer Overflow Abatement Fund" and the "Stormwater Management and Combined Sewer Overflow Abatement Trust Fund."

Not less than $45,000,000 is to be deposited in the "Stormwater Management and Combined Sewer Overflow Abatement Fund" and allocated to the DEP for the purposes of (1) providing grants to local governments for financing the costs of the mapping, planning or designing of stormwater management and combined sewer overflow abatement projects; and (2) making low or zero interest loans to local governments for financing the costs of stormwater management and combined sewer overflow abatement projects.

Up to $5,000,000 is to be deposited into the "Stormwater Management and Combined Sewer Overflow Abatement Trust Fund," with moneys in that fund to be used by the Trust to establish a reserve account for loans made by the Trust, and a guarantee account to secure debt issued by local governments in connection with the financing of a project.

The bill also: (1) authorizes DEP and the Trust to collect administrative fees in administering the respective funds and services rendered in connection therewith; (2) delegates to DEP responsibility for administering the "Stormwater Management and Combined Sewer Overflow Abatement Fund;" (3) authorizes DEP and the Trust to use income earned on moneys deposited in their respective funds to cover unreimbursed administrative expenses; (4) authorizes temporary cross-use by the DEP and Trust of moneys in the two funds; and (5) requires DEP and the Trust to provide annual accounts of moneys expended from their respective funds.

The bill also provides that if the "New Jersey Environmental Infrastructure Trust Act" (a companion measure, Assembly Bill No. ) has not been enacted into law by the date of the approval of this act by the voters, the amendments made to the 1989 bond act pertaining to the Trust would remain inoperative.

Amends the "Stormwater Management and Combined Sewer Overflow Abatement Bond Act of 1989."