STATEMENT TO

 

SENATE, No. 670

 

with Senate Floor Amendments

(Proposed By Senator Adler)

 

ADOPTED: NOVEMBER 7, 1996

 

 

      These amendments would provide that a county improvement authority may not issue "qualified small issue bonds," often referred to as industrial revenue bonds, unless the authority first requests the New Jersey Economic Development Authority (NJEDA) to act as a conduit financier and to issue the bonds and the NJEDA declines to do so. The amendments would require the NJEDA to respond to an authority's request within 90 days of receipt. In the event the NJEDA declines to act as conduit financier, the county improvement authority may issue the "qualified small issue bonds," subject to any currently existing requirements of the Local Finance Board and any authorization necessary to receive an allocation of volume cap by the State Treasurer pursuant to the "New Jersey Private Activity Bond Volume Cap Allocation Act," P.L.1987, c.393 (C.49:2A-1 et seq.).

      The amendments would specify that a county improvement authority may issue other types of bonds without granting the NJEDA a right of first refusal so long as the authority satisfies any currently existing requirements of the Local Finance Board and receives volume cap allocation from the State Treasurer.

      The amendments would also make a technical correction to recognize that a county improvement authority may engage in activities in a beneficiary county (a county that has not created a county improvement authority).