[Third Reprint]

SENATE, No. 800

STATE OF NEW JERSEY

INTRODUCED FEBRUARY 15, 1996

By Senators LaROSSA, BRYANT and Rice

An Act designated the "New Jersey Urban Redevelopment Act," ¹[creating] reconstituting the New Jersey Urban Development Corporation as¹ the New Jersey Redevelopment Authority, ¹[and]¹ providing a source of funding therefor, ¹[permitting revenue allocation financing,]¹ establishing a neighborhood empowerment program, ¹[allowing for abbreviated tax foreclosure and condemnation compensation proceedings for abandoned properties,]¹ amending, supplementing and repealing various sections of statutory law, and making an appropriation.

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

    1. (New section) This act shall be known and may be cited as the "New Jersey Urban Redevelopment Act."

    2. (New section) The Legislature finds and determines that:

    a. As one of the nation's most densely populated States and one of the earliest settled, New Jersey is beset by a host of urban problems attendant upon economic obsolescence, an aging infrastructure, long-term underinvestment and de-industrialization;

    b. Although the State Development and Redevelopment Plan has fostered a more coordinated and integrated State planning process and has placed renewed emphasis on urban revitalization goals, the realization of those revitalization goals still presents a critical challenge to the private sector and the myriad of governmental entities whose policies touch urban areas;

    c. The rapid pace of technological change with which the late twentieth century is associated, represented by the development and growth of the "information superhighway," and increasing world competition, spurred on by recent and ongoing international free trade agreements, threatens to further marginalize our already distressed and beleaguered urban centers;

    d. Environmentally compromised sites present a particular challenge to the State's urban centers, particularly those with major associated cleanup liability and, notwithstanding the impressive strides taken by this Legislature to address remediation issues, further remedies are necessary in order to imbue those sites with renewed economic potential;

    e. Given the number of years over which these problems have developed and in light of the enormity of the challenges which lay ahead, it is incumbent upon this Legislature to ¹[create] designate¹ an entity that has as its primary focus the State's urban centers, and to ¹[endow that entity with the powers and financial resources necessary to reverse decades of decay and neglect] provide that entity with resources to effectuate renewal in these urban areas¹;

    f. At present, a vast and complex network of State agencies and policies which should cooperate in the identification and resolution of urban problems too often work at cross-purposes and so it is vital that this new entity bring together those agencies whose policies are most strongly felt in urban areas in order to promote their economic and social viability in a coordinated fashion;

    g. There is a need for a redevelopment agency whose focus is developing and implementing strategic revitalization plans and neighborhood empowerment plans for urban neighborhoods to serve as the State's primary community development agency with particular focus on technical assistance, grants, low and no interest loans, loan guarantees, and capacity building for community development organizations; and

    h. This legislative initiative is intended to implement the urban redevelopment initiative concept and philosophy articulated by the sponsor which calls for the establishment of ¹[a new] an independent¹ entity which will allow for a coordinated approach to urban revitalization and succeed in achieving its goals where previous urban efforts have failed.

    3. (New section) As used in P.L. , c. (C. ) (pending before the Legislature as this bill), except as otherwise clearly required by the context:

    "Authority" means the New Jersey Redevelopment Authority established pursuant to section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill).

    "Council" means the Urban ¹[Policy]¹ Coordinating Council established pursuant to section ¹[7] 45¹ of P.L. , c. (C. ) (pending before the Legislature as this bill).

    "Department" means the Department of the ¹[Treasury] Commerce and Economic Development¹.

    "Project" means a specific work or improvement, including lands, buildings, improvements, real and personal property or any interest therein, including lands under water, riparian rights, space rights and air rights, acquired, owned, constructed, reconstructed, rehabilitated or improved by the authority or a subsidiary, or by any other person, firm or corporation under agreement with the authority or subsidiary pursuant to the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill) in a qualified municipality, and which falls within any of the following classifications:

    (1) "Industrial project"--a project designed and intended to provide facilities for manufacturing, industrial, commercial, wholesale, retail, warehousing, or research and development purposes, including but not limited to machinery and equipment deemed necessary for the operation thereof, when the authority finds that there is a compelling public need to undertake such project.

    (2) "Land-use improvement project"--a project for the clearance, replanning, reconstruction, rehabilitation, renewal, redevelopment, conservation, restoration or improvement of an area, in cooperation or under agreement with a qualified municipality which has designated the area in need of redevelopment.

    (3) "Civil project"--a project designed and intended to provide facilities for educational, cultural, health, recreational, community or other civic purposes.

    (4) "Utility project"--a project designed and intended to provide facilities for provision of water, sewerage, solid waste disposal, transportation, utility or other public services necessary for the accommodation of a project of another classification undertaken pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill), but accommodation of needs greater than those of the other project may be encompassed.

    (5) "Mixed-use project"--a project consisting of housing development and commercial development, in which the prorated cost of the housing development is equivalent to no more than one-third of the cost of the total project.

    (6) "Multi-purpose project"--a project combining the purposes of two or more of the foregoing classifications.

    "Qualified municipality" means any municipality which at the time of the initiation of a project was either eligible to receive aid under the "Special Municipal Aid Act," P.L.1987, c.75 (C.52:27D-118.24 et seq.) or was coextensive with a school district which qualified for designation as a "special needs district" pursuant to the "Quality Education Act of 1990," P.L.1990, c.52 (C.18A:7D-1 et seq.).

    "Subsidiary" means a subsidiary corporation formed by the authority pursuant to section ¹[13] 8¹ of P.L. , c. (C. ) (pending before the Legislature as this bill).

    4. (New section) a. ¹[There is hereby established the New Jersey Redevelopment Authority as the successor to the New Jersey Urban Development Corporation, except as provided in section 38 of P.L.     , c. (C. ) (pending before the Legislature as this bill).] The New Jersey Urban Development Corporation established pursuant to P.L.1985, c.227 (C.55:19-1 et. seq.) is reconstituted as the New Jersey Redevelopment Authority.¹ For the purpose of complying with the provisions of Article V, Section IV, paragraph 1 of the Constitution of the State of New Jersey, this authority is allocated to the Department of ¹[the Treasury] Commerce and Economic Development¹; but, notwithstanding that allocation, the authority shall be independent of any supervision or control by the department or by any other board or officer thereof. ¹All references in any law, order, rule, regulation, contract, loan, document or otherwise to the New Jersey Urban Development Corporation in the Department of Commerce and Economic Development shall mean the New Jersey Redevelopment Authority in the Department of Commerce and Economic Development.¹

    b. The authority shall constitute a body corporate and politic and an instrumentality exercising public and essential governmental functions, and the exercise by the authority of the powers conferred by P.L. , c. (C. ) (pending before the Legislature as this bill) shall be deemed and held to be an essential governmental function of the State.

    c. The authority shall consist of the State Treasurer, the Attorney General, the Commissioner of Community Affairs, the Commissioner of Education, the Commissioner of Environmental Protection, the Commissioner of Health, the Commissioner of Human Services, the Commissioner of Labor, the Commissioner of Transportation, and the Commissioner of Commerce and Economic Development who shall be members and who shall serve ex officio, and eleven public members of whom seven shall be appointed by the Governor with the advice and consent of the Senate, two shall be appointed by the Senate President and two shall be appointed by the Speaker of the General Assembly, for terms of three years, except as provided hereunder. Of the seven members appointed by the Governor, one shall represent the interests of the for-profit development industry; one shall represent the interests of the non-profit development community, two shall be mayors of municipalities which are coextensive with "special needs districts" as defined pursuant to section 3 of P.L.1990, c.52 (C.18A:7D-3); two shall be mayors of municipalities which are contiguous to municipalities which are coterminous with special needs districts; and one shall represent the interest of the banking, insurance or real estate financing industries. Each member shall hold office for the term of his appointment and until his successor shall have been appointed and qualified. A member shall be eligible for reappointment. Each mayor shall serve for a term of three years, but shall continue to serve only as long as the mayor continues to hold mayoral office. The members appointed by each of the presiding officers of both Houses of the Legislature shall not represent the same political party ³[, and none of the legislative appointees shall be members of the Legislature]³. Any vacancy in the membership occurring other than by expiration of term shall be filled in the same manner as the original appointment but for the unexpired term only. In appointing public members, the presiding officers shall have regard to providing an adequate depth and diversity of knowledge and experience in the financial, physical and social aspects of urban development, and of other relevant expertise in urban matters.

    d. Each ex officio member may designate an officer or employee of his department to represent him at authority meetings. The designation shall be in writing, delivered into the hands of the secretary of the authority, and shall continue in effect until revoked or amended in the same manner.

    e. Each member appointed by the Governor may be removed from office by the Governor, for cause, after a public hearing, and may be suspended by the Governor pending the completion of the hearing. Each member before entering upon his duties shall take and subscribe an oath to perform the duties of his office faithfully, impartially and justly to the best of his ability. A record of such oaths shall be filed in the office of the Secretary of State.

    f. The ³[Governor shall appoint a chairperson, with the advice and consent of the Senate, from the members of the authority other than the ex officio members and the]Commissioner of Commerce and Economic Development may, at the commissioner's discretion, serve as the chairperson of the authority or may appoint one of the public members of the authority as chairperson. Any such designation or appointment shall be made in writing and shall be delivered to the authority and to the Governor and shall continue in effect until revoked or amended by a writing delivered to the authority and the Governor. The³ members of the authority shall elect from their remaining number a vice chairperson and a treasurer thereof. The authority shall employ an executive director who shall be its secretary and chief executive officer. The powers of the authority shall be vested in the members thereof in office from time to time and eleven members of the authority shall constitute a quorum at any meeting thereof. Action may be taken, and motions and resolutions adopted, by the authority at any meeting thereof by the affirmative vote of at least eleven members of the authority. No vacancy in the membership of the authority shall impair the right of a quorum of the members to exercise all of the powers and perform all of the duties of the authority.

    g. Each public member of the authority shall execute a bond to be conditioned upon the faithful performance of the duties of such member in such form and amount as may be prescribed by the State Comptroller. Such bonds shall be filed in the office of the Secretary of State. At all times thereafter the members and treasurer of the authority shall maintain such bonds in full force and effect. All costs of such bonds shall be borne by the authority.

    h. The members of the authority shall serve without compensation, but the authority shall reimburse its members for actual expenses necessarily incurred in the discharge of their duties. Notwithstanding the provisions of any other law, no officer or employee of the State shall be deemed to have forfeited or shall forfeit his or her office or employment or any benefits or emoluments thereof by reason of his or her acceptance of the office of ex officio member of the authority or his or her services therein.

    i. The authority may be dissolved by act of the Legislature on condition that the authority has no debts or obligations outstanding or that provision has been made for the payment or retirement of such debts or obligations. Upon any such dissolution of the authority, all property, funds and assets thereof shall be vested in the State.

    j. A true copy of the minutes of every meeting of the authority shall be forthwith delivered by and under the certification of the secretary thereof to the Governor. No action taken at such meeting by the authority shall have force or effect until 10 days, Saturdays, Sundays, and public holidays excepted, after a copy of the minutes shall have been so delivered unless during that 10-day period the Governor shall approve the same in which case such action shall become effective upon approval. If, within the 10-day period, the Governor returns the copy of the minutes with a veto of any action taken by the authority or any member thereof at the meeting, that action shall be null and void and of no effect. The powers conferred in this subsection upon the Governor shall be exercised with due regard for the rights of the holders of bonds and notes of the authority at any time outstanding, and nothing in or done pursuant to this subsection shall in any way limit, restrict or alter the obligation or powers of the authority or any representative or officer of the authority to carry out and perform in every detail each and every covenant, agreement or contract at any time made or entered into by or on behalf of the authority with respect to its bonds or notes or for the benefit, protection or security of the holders thereof. ¹The Governor may approve all or part of the action taken at such meeting prior to the expiration of the 10-day period.¹

    k. On or before March 31 of each year, the authority shall make an annual report of its activities for the preceding calendar year to the Governor and the Legislature. Each such report shall set forth a complete operating and financial statement covering the authority's operations during the year. The authority shall cause an audit of its books and accounts to be made at least once in each year by certified public accountants and cause a copy thereof to be filed with the Secretary of State and the State Comptroller.

    1. The State Comptroller and his legally authorized representatives are hereby authorized and empowered from time to time to examine the accounts, books and records of the authority, including its receipts, disbursements, contracts, sinking funds, investments, and any other matters relating thereto and to its financial standing.

    m. No member, officer, employee or agent of the authority shall be interested, either directly or indirectly, in any project or in any contract, sale, purchase, lease or transfer of real or personal property to which the authority is a party.

    5. (New section) The authority shall have the following powers:

    a. to sue and be sued;

    b. to have a seal and alter the same at the authority's pleasure;

    c. to enter into contracts 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 and to pay or compromise any claims arising therefrom;

    d. to make and alter by-laws 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 invest any funds held in reserve or sinking funds, or any moneys not required for immediate use and disbursement, at the discretion of the authority, 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;

    f. 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 corporation has theretofore sold, leased or otherwise conveyed, transferred or disposed of;

    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 in the name of the authority by purchase or otherwise, on such terms and conditions and such manner as it may deem proper ¹[, 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.),]¹ any lands or interests therein or other property which it may determine is reasonably necessary for any project; ¹[provided, however, that except in connection with a property included on the abandoned property list pursuant to section 75 of P.L.   , c. (C. ) (pending before the Legislature as this bill), the authority 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 to qualified municipalities;]¹

    i. to acquire, construct, reconstruct, rehabilitate, improve, alter or repair or provide for construction, reconstruction, rehabilitation, improvement, alteration or repair of any project;

    j. to arrange or contract with a municipality for the planning, replanning, opening, grading or closing of streets, roads, roadways, alleys or other places, or for the furnishing of facilities or for the acquisition by a municipality of property or property rights or for the furnishing of property or services, in connection with a project;

    k. 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;

    l. 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;

    m. to manage any project, whether then owned or leased by the authority, 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;

    n. to hold any property owned or acquired by the authority in the name of the authority;

    o. 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);

    p. to issue, purchase, pledge and sell stock in projects of the authority and to purchase, sell or pledge the shares, or other obligations or securities of any subsidiary corporation, on such terms and conditions as the authority or subsidiary corporation may deem advisable;

    q. 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 authority is a party;

    r. 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 authority 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 authority therein;

    s. 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;

    t. to purchase, acquire and take assignments of notes, mortgages and other forms of security and evidences of indebtedness;

    u. to extend credit or make loans to any person for the planning, designing, acquiring, constructing, reconstructing, improving, equipping and furnishing of a 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 as the authority may deem necessary or desirable;

    v. to borrow money, secure credit against the assets of the authority on a temporary, short-term, interim or long-term basis and to issue bonds of the authority and to provide for the rights of the holders thereof, as provided in P.L. , c. (C. ) (pending before the Legislature as this bill);

    w. to make short-term loans or advances to developers for construction in anticipation of the issuance of permanent loans;

    x. to exercise sole authority for investment, reinvestment or expenditure of its revenues, fund balances and appropriations consistent with the purposes of P.L. , c. (C. ) (pending before the Legislature as this bill) on projects and investments utilizing revenues from the sale of revenue bonds, which projects shall be subject to the approval of the State Treasurer, and the Treasurer's actions shall be based solely on his fiduciary role to ensure that all applicable federal and State tax laws are adhered to regarding the investment of bond funds;

    y. notwithstanding any law to the contrary, and upon resolution of the municipal governing body, to act as the redevelopment agency of any municipality in which there is not established a redevelopment agency pursuant to subsection a. of section 11 of P.L.1992, c.79 (C.40A:12A-11) and which is not precluded from establishing such an agency;

    z. in connection with any application for assistance under P.L. , c. (C. ) (pending before the Legislature as this bill) or commitments therefor, to require and collect such fees and charges as the authority shall determine to be reasonable;

    aa. to establish, levy and collect, in connection with any civic project or utilities project managed or operated by the authority, whether then owned or leased by the authority, user fees and facility charges;

    bb. 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;

    cc. 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 the act, and to fix and pay their compensation from funds available to the authority therefor, all without regard to the provisions of Title 11A, Civil Service, of the New Jersey Statutes;

    dd. 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 P.L. , c. (C. ) (pending before the Legislature as this bill) and any other applicable law, to comply with the terms and conditions thereof;

    ee. to create subsidiary corporations as provided in section ¹[13] 8¹ of P.L. , c. (C. ) (pending before the Legislature as this bill);

    ff.¹[to act as a district agent pursuant to section 41 of P.L. , c. (C. ) (pending before the Legislature as this bill);

    gg.]¹ to assist municipalities, counties, public or private county and municipal development agencies, district management corporations created pursuant to section 4 of P.L.1972, c.134 (C.40:56-68), community action boards established pursuant to section 4 of P.L.1991, c.51 (C.52:27D-398), or sponsors of neighborhood empowerment organizations, in formulating and implementing community redevelopment plans, which shall include, but not be limited to, neighborhood restoration, residential development, and industrial and commercial development;

    ¹[hh.] gg.¹ to fund, or assist in funding, community redevelopment projects by municipalities, counties, public or private county and municipal development agencies, district management corporations created pursuant to section 4 of P.L.1972, c.134 (C.40:56-68), community action boards established pursuant to section 4 of P.L.1991, c.51 (C.52:27D-398), or sponsors of neighborhood empowerment organizations, which shall include, but not be limited to, direct loan assistance, including loan guarantees, procuring capital from private developers and lending institutions, and facilitating access to State, federal, and private sources of loans or grants, including, but not limited to, the New Jersey Economic Development Authority and the Casino Redevelopment Authority;

    ¹[ii.]hh.¹ to assist in providing access to support services, including technical assistance and job training programs, for projects developed in connection with comprehensive community redevelopment plans and neighborhood empowerment programs established pursuant to this act;

    ¹[jj.] ii.¹ to provide assistance to urban areas in attracting industrial and commercial projects, in rehabilitating existing industrial and commercial facilities to restore them to productive use through the establishment of marketing programs and incentive programs;

    ¹[kk. to provide] jj. to assist in facilitating the work of the Office of Neighborhood Empowerment established pursuant to this act, which assistance shall include, but not be limited to, providing¹ professional or technical expertise and funding for the establishment and implementation of neighborhood empowerment plans developed pursuant to this act;

    ¹[ll.] kk.¹ to enter into partnerships with private developers, the New Jersey Economic Development Authority or any other public entity, for the purpose of community redevelopment, and establish fees therefor;

    ¹[mm.] ll.¹ to enter into agreements with municipalities or counties regarding projects to be financed through the use of payment in lieu of taxes, as provided for in section ¹[70] 33¹ of P.L. , c. (C.   ) (pending before the Legislature as this bill); and

    ¹[nn.] mm.¹ to do any and all things necessary or convenient to carry out its purposes and exercise the powers given and granted in P.L. , c. (C.   ) (pending before the Legislature as this bill).

    6. (New section) The authority, in determining which projects to approve for financing, shall accord first priority to any project situated in ¹[a] ²[an empowerment neighborhood designated pursuant to section 54 of P.L. , c. (C. ) (pending before the Legislature as this bill), second priority to any¹] a ² municipality which at the time the application for project financing is submitted is eligible to receive aid under the "Special Municipal Aid Act," P.L.1987, c.75 (C.52:27D-118.24 et seq.) and is coextensive with a "special needs district" designated pursuant to the "Quality Education Act of 1990," P.L.1990, c.52 (C.18A:7D-1 et seq.). Subsequent priority shall be assigned to projects in any municipality which, at the time the application for project financing is submitted, is coextensive with a "special needs district" and projects in a qualified municipality shall receive last priority. ¹[In making project financing decisions, the authority shall give preference to any project situated in an empowerment neighborhood designated pursuant to section 88 of P.L.      c. (C. ) (pending before the Legislature as this bill).]^{1 2}In making project financing decisions, the authority shall give preference to any project situated in an empowerment neighborhood designated pursuant to section 54 of P.L.........., c.........., (C..........)(now pending before the Legislature as this bill).² With respect to projects for which costs are to be financed by the authority, the authority shall consider the following factors:

    (1) the economic feasibility of the project;

    (2) the extent of economic and related social distress in the municipality and the area to be affected by the project;

    (3) the degree to which the project will advance State, regional and local development strategies;

    (4) the likelihood that the project shall upon completion be capable of repaying all or part of any financing costs incurred;

    (5) the relationship of the project to a comprehensive local development strategy, including other major projects undertaken within the municipality; and

    (6) the degree to which the project interfaces with public transportation systems.

    ¹[7. (New section) For the purpose of assuring effective coordination of urban policies among those public agencies and officers having responsibilities which affect the physical, economic and social life of the State's urban areas, the Governor shall establish an Urban Policy Coordinating Council within the authority to advise the authority board and shall designate to serve on the council designees of all Cabinet members, State authorities, boards and commissions, and other State public bodies whose activities may affect or be affected by the operations of the authority.]¹

    ¹[8. (New section) The Urban Policy Coordinating Council shall:

    a. Ensure that State agencies coordinate responses and provide assistance to projects and programs outlined in neighborhood empowerment plans developed pursuant to section 11 of P.L. , c. (C. )(pending before the Legislature as this bill), and projects and programs established by the New Jersey Redevelopment Authority, the New Jersey Economic Development Authority, and development initiatives proposed by municipal and county governments, including making available the resources of the departments of the State in implementing those programs;

    b. Make available the resources of its member agencies to assist local sponsors in implementing neighborhood empowerment plans;

    c. Form interagency teams of State representatives. The membership of each interagency team shall be determined by the needs outlined in the neighborhood empowerment plan. Each interagency team shall serve as the primary link between the neighborhood and State government in responding to programming needs, shall be co-chaired by a case manager from the Office of Neighborhood Empowerment, established pursuant to section 9 of P.L. , c. (C.    )(pending before the Legislature as this bill); and by the community director, and shall include at least one representative of the council; and

    d. Assist in coordinating the activities of the New Jersey Redevelopment Authority, municipalities, counties, public or private county and municipal development agencies, district management corporations created pursuant to section 4 of P.L.1972, c.134 (C.40:56-68), and community action boards established pursuant to section 4 of P.L.1991, c.51 (C.52:27D-398).]¹

    ¹[9. (New section) There is established in the New Jersey Redevelopment Authority an Office of Neighborhood Empowerment.

    The Office of Neighborhood Empowerment shall:

    a. Provide support for a community director who shall assist local sponsors in developing or implementing neighborhood empowerment plans;

    b. Provide case management services to qualified local sponsors of neighborhood empowerment plans;

    c. Assist neighborhoods in developing and implementing neighborhood empowerment plans;

    d. Ensure that communities receive technical assistance in neighborhood planning;

    e. Train and provide administrative support for interagency teams;

    f. Assist local sponsors in evaluating progress through mutually agreed upon measures;

    g. Provide assistance in obtaining private sector support for developing and implementing neighborhood empowerment plans;

    h. Maintain and make available a complete inventory of State programs, services and funding that are available to municipalities; and

    i. Enter into partnerships with qualified local sponsors.]¹

    ¹[10. (New section) In order to qualify to receive the services of the Office of Neighborhood Empowerment and of an interagency team, a community must first have developed a neighborhood empowerment plan which shall be submitted to the Urban Policy Coordinating Council established pursuant to section 7 of P.L. , c. (C. ) (pending before the Legislature as this bill). A neighborhood empowerment plan shall incorporate and address the needs of the neighborhood as identified by the community. It shall be comprehensive and shall take into consideration and show the relationship to the municipal master plan, other locally adopted plans (including, but not limited to urban enterprise zone plans, redevelopment plans and neighborhood social service plans), and the State Development and Redevelopment Plan, and shall outline how residents, municipal government, the private sector and neighborhood organizations will cooperate with the State and with each other during implementation. Neighborhood empowerment plans shall focus on neighborhood restoration. They may include, but need not be limited to, projects for infrastructure improvement and expansion, rehabilitation and construction of affordable housing, increased public safety, facility rehabilitation and construction, economic development, recreation and open space, environmental cleanup, employment and training, improvement of educational opportunities for youth, and efficient and humane provision of social services dedicated to strengthening the community's human capital.]¹

    ¹[11. (New section) Neighborhood empowerment plans shall be developed by local sponsors with the guidance of a community director and under the direction of, and with the participation of, residents, community-based organizations, the private sector, and the municipal government. A local sponsor may be a municipality, county, public or private county and municipal development agency, district management corporation created pursuant to section 4 of P.L.1972, c.134 (C.40:56-68), community action board established pursuant to section 4 of P.L.1991, c.51 (C.52:27D-398), sponsors of neighborhood empowerment organizations, and institution, such as a hospital, college or university, or a community-based organization.

    The entity that will implement the neighborhood empowerment plan shall be either a new or existing community development organization or a consortium of existing community based organizations.]¹

    ¹[12.] 7.¹ (New section) In planning and carrying out projects pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill) the authority and its subsidiaries shall endeavor to enlist the cooperation and assistance, on a volunteer basis, of private business firms and individual business executives whose experience and training qualify them to advise the authority and its subsidiaries on the design and coordination of aid and development programs for the revitalization of urban centers, and to advise upon the most efficient and businesslike manner of managing and directing such programs.

    ¹[13.] 8.¹ (New section) a. In order to carry out the purposes and provisions of P.L. , c. (C. ) (pending before the Legislature as this bill), the authority, in addition to any powers granted to it elsewhere in P.L. , c. (C. ) (pending before the Legislature as this bill), shall have the authority to form, purchase or assume control of one or more subsidiaries, in the manner and for the purposes set forth in this section.

    b. The authority may form a subsidiary by filing with the Secretary of State a certificate of incorporation, which may be amended from time to time and which shall set forth the name of the subsidiary, its duration, the location of its principal office, the joint owners thereof, and the purposes of the subsidiary.

    c. The directors of the subsidiary shall be members or employees of the authority, who shall constitute at least a majority, and such other persons representing any joint owner or owners as may be provided for in the agreement in connection with the incorporation of the subsidiary.

    d. The subsidiary shall have all the powers vested in the authority which the authority may delegate to it by terms of the agreement of incorporation, except that it shall not have the power to contract indebtedness independently of the authority. The subsidiary and any of its properties, functions and activities shall have all the privileges, immunities, tax exemptions and other exemptions as the authority's property, functions and activities. The subsidiary shall also be subject to the restrictions and limitations to which the authority is subject. The subsidiary shall be subject to suit as if it were the authority itself.

    e. Whenever the State or any municipality, commission, public authority, agency, officer, department, board, or division is authorized and empowered for any purposes of P.L. , c. (C. ) (pending before the Legislature as this bill) to cooperate and enter into agreements with the authority or to grant any consent to the authority or to grant, convey, lease or otherwise transfer any property to the authority or to execute any document, the State or such municipality, commission, public authority, agency, officer, department, board, or division shall have the same authorization and power for any of such purposes to cooperate and enter into agreements with the subsidiary, to grant consents to the subsidiary, to grant, convey, lease or otherwise transfer property to the subsidiary and to execute documents for the subsidiary.

    f. Among the powers that shall be granted to a subsidiary corporation established by the authority, or which may be exercised by the authority itself, are:

    (1) the power to participate as a co-owner or co-venturer in any activity financed by a loan from the authority; and

    (2) the power to issue its stock and employ the proceeds of such sales for capital investment in, or other expenses in connection with, the projects of the subsidiary, upon authorization by the authority.

    ¹[14.] 9.¹ (New section) The authority, or any subsidiary, may enter into agreements with any individual, partnership, trust, association or corporation, or any public agency, under which the authority or subsidiary and such other entity or entities shall undertake a project as a joint venture, with the authority or subsidiary providing such financial assistance, through loans, grants or the acquisition of an ownership interest in the project, and such technical or managerial assistance or advice, as the agreement may provide.

    ¹[15.] 10.¹ (New section) The authority, or any subsidiary, may make loans to any individual, partnership, trust, association or corporation for the purpose of enabling such entity to undertake any work, improvement or other activity in a qualified municipality which, if undertaken by the authority or a subsidiary, would be a "project" within the meaning of section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill). The authority, or any subsidiary, may also pledge its credit for the repayment of any such loan made for like purposes by any financial institution in the State.

    ¹[16.] 11.¹ (New section) For the purpose of providing funds to pay all or any part of the cost of any project or projects, to make loans in accordance with the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill), and for the funding or refunding of any bonds, the authority shall have the power to authorize or provide for the issuance of bonds pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill).

    ¹[17.] 12.¹ (New section) By resolution, the authority shall have power to incur indebtedness, borrow money and issue its bonds for the purposes stated in section ¹[16] 11¹ of P.L. , c. (C. ) (pending before the Legislature as this bill) ¹; provided, however, that the authority shall not issue more than $100 million of bonds in any one year¹. Except as may otherwise be expressly provided by the authority, every issue of its bonds shall be general obligations of the authority payable from any revenues or moneys of the authority or any other contracted with or agreed upon source, subject only to any agreements with the holders of particular bonds or notes pledging any particular revenues or moneys. Bonds shall be authorized by resolution and may be issued in one or more series and shall bear that date or those dates, mature at that time or those times not exceeding 40 years from the date thereof, bear interest at a rate or rates, be in that denomination or those denominations, be in such form, either coupon or registered, carry such conversion or registration privileges, have such rank or priority, be executed in such manner, be payable from such sources in such medium of payment at such place or places within or without the State, and be subject to such terms of redemption (with or without premium) as the resolution may provide. Bonds of the authority may be sold by the authority at public or private sale at such price or prices as the authority shall determine.

    ¹[18.] 13.¹ (New section) Any provision of any law to the contrary notwithstanding, any bond or other obligation issued pursuant to P.L.   , c. (C. ) (pending before the Legislature as this bill) shall be fully negotiable within the meaning and for all purposes of Title 12A, Commercial Transactions, of the New Jersey Statutes, and each holder or owner of such a bond or other obligation, or of any coupon appurtenant thereto, by accepting such bond or coupon shall be conclusively deemed to have agreed that such bond, obligation or coupon is and shall be fully negotiable within the meaning and for all purposes of Title 12A of the New Jersey Statutes.

    ¹[19.] 14.¹ (New section) In order to secure the payment of such bonds and in addition to its other powers, the authority shall have power by resolution to covenant and agree with the several holders of such bonds, as to:

    a. the custody, security, use, expenditure or application of the proceeds of the bonds;

    b. the use, regulation, operation, maintenance, insurance or disposition of all or any part of any project or projects;

    c. payment of the principal of or interest on the bonds, or any other obligations, and the sources and methods thereof, the rank or priority of any such bonds or obligations as to any lien or security, or the acceleration of the maturity of any such bonds or obligations;

    d. the use and disposition of any moneys of the authority, including all revenues or other moneys derived or to be derived from any project or projects;

    e. pledging, setting aside, depositing or trusteeing all or any part of the revenues or other moneys of the authority to secure the payment of the principal of or interest on the bonds or any other obligations and the powers and duties of any trustee with regard thereto;

    f. the setting aside out of the revenues or other moneys of the authority of reserves and sinking funds, and the source, custody, security, regulation, application and disposition thereof;

    g. the rents, fees or other charges for the use of any project or projects, including any parts thereof theretofore constructed or acquired and any parts, replacements or improvements thereof thereafter constructed or acquired, and the fixing, establishment, collection and enforcement of the same;

    h. limitation on the issuance of additional bonds or any other obligations or on the incurrence of indebtedness of the authority;

    i. vesting in a trustee or trustees, fiscal or escrow agent or agents within or without the State such property, rights, powers and duties in trust as the authority may determine and limiting the rights, duties and powers of such trustee or agent;

    j. payment of costs or expenses incident to the enforcement of the bonds or of the provisions of the resolution or of any covenant or contract with the holders of the bonds;

    k. the procedure, if any, by which the terms of any covenant or contract with, or duty to, the holders of bonds may be amended or abrogated, the amount of bonds the holders of which must consent thereto, and the manner in which such consent may be given or evidenced; or

    l. any other matter or course of conduct which, by recital in the resolution, is declared to further secure the payment of the principal of or interest on the bonds.

    All such provisions of the resolution and all such covenants and agreements shall constitute valid and legally-binding contracts between the authority and the several holders of the bonds, regardless of the time of issuance of such bonds, and shall be enforceable by any such holder or holders by appropriate action, suit or proceeding in any court of competent jurisdiction, or by proceeding in lieu of prerogative writ.

    ¹[20.] 15.¹ (New section) Any pledge of revenues or other moneys made by the authority shall be valid and binding from the time that the pledge is made. The revenues or other moneys so pledged and thereafter received by the authority shall immediately be subject to the lien of such pledge without any physical delivery thereof or further act, and the lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the authority, irrespective of whether such parties have notice thereof. Neither the resolution nor any other instrument by which a pledge is created need be filed or recorded except in the records of the authority.

    ¹[21.] 16.¹ (New section) Any public or private agency, organization, corporation, or association which is not legally barred from investing in the bonds or stock of the New Jersey Housing and Mortgage Finance Agency or any of its subsidiary corporations may lawfully invest in the corresponding securities of the authority and its subsidiaries.

    ¹[22. (New section) a. Notwithstanding the provisions of section 5 of P.L.1945, c.162 (C.54:10A-5), or of N.J.S.54A:2-1 to the contrary, a qualified taxpayer that expands its operations in a qualified municipality shall pay tax on its income generated by new activities in a qualified municipality at an effective reduced rate, determined by multiplying the taxpayer's income generated by new activities in a qualified municipality by the multiplier determined pursuant to subsection b. of this section for the five privilege periods, in the case of a taxpayer pursuant to P.L.1945, c.162 (C.54:10A-1 et seq.), or the five taxable years, in the case of a taxpayer pursuant to N.J.S.54A:1-1 et seq., next ending after the commencement of operations at a location in a qualified municipality.

    b. For the purposes of subsection a. of this section, the income multiplier for each of the five privilege periods or taxable years next ending after the commencement of operations shall be as follows:

      Period/ Year                                 Multiplier

      First                                               0.00

      Second                                           0.20

      Third                                              0.40

      Fourth                                            0.60

      Fifth                                               0.80

      Sixth year and thereafter                1.00

    c. For the purposes of this section:

    "Qualified taxpayer" means a taxpayer engaged in the active conduct of a trade or business at a location in a qualified municipality that has at least 25% of its full-time employees at that location meeting one or more of the following criteria:

    (1) resides within the qualified municipality or within another qualified municipality; or

    (2) unemployed for at least six months prior to being hired and residing in New Jersey, and recipients of New Jersey public assistance programs for at least six months prior to being hired, or either of the aforesaid; or

    (3) determined to be economically disadvantaged pursuant to the "Job Training Partnership Act," Pub.L.97-300 (29 U.S.C.§1501 et seq.);

    "Income generated by new activities in a qualified municipality" means that portion of a taxpayer's income that is generated by its activities commencing at a location in a qualified municipality on or after the designation of the municipality as qualified and that is not generated by a transfer of its previous activities at a location in this State to the qualified municipality. For a taxpayer pursuant to P.L.1945, c.162 (C.54:10A-1 et seq.), "taxpayer's income" in this definition means that portion of the taxpayer's entire net income that is taxable under the Corporation Business Tax Act (1945), P.L.1945, c.162 (C.54:10A-1 et seq.). For a taxpayer pursuant to N.J.S.54A:1-1 et seq., "taxpayer's income" in this definition means, in the case of a sole proprietor that part of the profits from business derived from lines of business with operations in a qualified municipality; in the case of a partner or a member of a limited liability company, that part of the partner or member's distributive share of partnership income of a partnership or limited liability company with operations in a qualified municipality allocated to this State pursuant to N.J.S.54A:5-7; and in the case of a shareholder of an S corporation, the pro rata share of S corporation income of an S corporation with operations in a qualified municipality.

    d. For a taxpayer pursuant to P.L.1945, c.162 (C.54:10A-1 et seq.), notwithstanding the provisions of section 19 of P.L.1983, c.303 (C.52:27H-78), section 12 of P.L.1985, c.227 (C.55:19-13), section 42 of P.L.1987, c.102 (C.54:10A-5.3), section 1 of P.L.1993, c.150 (C.27:26A-15), section 3 of P.L.1993, c.170 (C.54:10A-5.6), sections 3 or 4 of P.L.1993, c.171 (C.54:10A-5.18 or C.54:10A-5.19), or section 1 of P.L.1993, c.175 (C.54:10A-5.24), to the contrary, no credits otherwise allowed pursuant to those sections shall be allowed against income generated by new activities in a qualified municipality for the five privilege periods ending after the commencement of operations in a qualified municipality for which the income generated by new activities in a qualified municipality is allowed a multiplier pursuant to this section. For the purposes of section 19 of P.L.1983, c.303 (C.52:27H-78), section 12 of P.L.1985, c.227 (C.55:19-13), section 42 of P.L.1987, c.102 (C.54:10A-5.3), section 1 of P.L.1993, c.150 (C.27:26A-15), section 3 of P.L.1993, c.170 (C.54:10A-5.6), sections 3 or 4 of P.L.1993, c.171 (C.54:10A-5.18 or C.54:10A-5.19), and section 1 of P.L.1993, c.175 (C.54:10A-5.24), any income or liability limits established pursuant to those sections shall be deemed to refer only to income that is not income generated by new activities in a qualified municipality, and any salary, wages or remuneration paid to employees employed at the location in the qualified municipality, the cost of any property installed or employed at the location in the qualified municipality and any expenses incurred at or for the location in the qualified municipality shall be disallowed from the inclusion in any calculation under those sections.]¹

    ¹[23.] 17.¹ (New section) Neither the members of the authority nor any person executing bonds issued pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill) shall be liable personally on the bonds by reason of the issuance thereof. Bonds or other obligations issued by the authority pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill) shall not be in any way a debt or liability of the State or of any political subdivision thereof and shall not create or constitute any indebtedness, liability or obligation of the State or of any political subdivision, 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, and all such bonds shall contain on the face thereof a statement to that effect.

    ¹[24.] 18.¹ (New section) a. No member, officer, agent or employee of the authority or of any of its subsidiaries shall take any official action on any matter in which he or she has a direct or indirect financial interest, except that the ownership of, or tenancy in, one's own private residence shall not be considered a financial interest for the purposes of this section.

    b. Any action taken or approval granted by the authority or any of its subsidiaries in violation of this section is voidable.

    c. Any person who knowingly violates any provision of this section shall forfeit his office or employment and is guilty of a crime of the fourth degree.

    ¹[25.] 19.¹ (New section) Any builder, contractor or subcontractor engaged upon a project within the meaning of P.L. , c. (C. ) (pending before the Legislature as this bill), and any person, firm or authority managing or operating such a project, including the authority and its subsidiaries, shall pay the workmen employed in the construction, reconstruction, demolition, or rehabilitation thereof not less than the prevailing wage rate. The prevailing wage rate shall be determined by the Commissioner of Labor in all cases, except that the prevailing wage rate shall be determined by the Secretary of the United States Department of Labor in accordance with the Davis-Bacon Act as amended (40 U.S.C. § 276a to 276a-5), when the loan or other assistance given by the authority in connection with the work, or the funds of the authority or subsidiary thereof expended for the work, are the subject of direct or indirect federal assistance other than federal tax exemption of the interest paid on obligations of the authority or a subsidiary thereof.

    ¹[26.] 20.¹ (New section) a. Under the jurisdiction ¹and at the discretion¹ of the authority, there ¹[shall] may¹ be a public hearing on each project, the cost of which is estimated to exceed $250,000, within the municipality in which the project is to be located. ¹[The] In the event that a hearing is to be conducted, the¹ authority shall cause notice of the hearing to be published in at least two newspapers of general circulation within the municipality at least 15 days prior to the date of the hearing and shall also file the notice at least 15 days prior to the date of the hearing with the governing body of the county and municipality in which the project is to be located.

    The notice shall summarize the project and specify where and how additional information may be obtained.

    b. All testimony presented at the hearing and all material submitted to the authority within 15 days following the hearing shall be included in a hearing record to be prepared and made available to the public by the authority.

    c. The governing body of the county or municipality in receipt of the notice prescribed in subsection a. of this section may file with the authority, within 15 days following the hearing, a written objection to the project, stating in detail the nature of the objection.

    d. The authority shall respond in writing to any objection filed pursuant to subsection c. of this section, including specific responses to the data, views, and arguments contained in the objection.

    ¹[27.] 21.¹ (New section) The exercise of the powers granted by P.L. , c. (C. ) (pending before the Legislature as this bill) shall constitute the performance of an essential governmental function and the authority shall not be required to pay any taxes or assessments upon or in respect of a project, or any property or moneys of the authority, and the authority, its projects, property and moneys and any bonds and notes issued under the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill), their transfer and the income therefrom, including any profit made on the sale thereof, shall at all times be free from taxation of every kind by the State except for transfer, inheritance and estate taxes and by any political subdivision of the State; provided, that any person occupying a project whether as lessee, vendee or otherwise shall, as long as title thereto shall remain in the authority, pay to the political subdivision in which such project is located a payment in lieu of taxes which shall equal the taxes on real and personal property, including water and sewer service charges or assessments, which such person would have been required to pay had it been the owner of such property during the period for which such payment is made and neither the authority nor its projects, properties, money or bonds and notes shall be obligated, liable or subject to lien of any kind for the enforcement, collection or payment thereof. If and to the extent the proceedings under which the bonds authorized to be issued under the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill) so provide, the authority may agree to cooperate with such person occupying a project, in connection with any administrative or judicial proceedings for determining the validity or amount of such payments and may agree to appoint or designate and reserve the right in and for such person to take all action which the authority may lawfully take in respect of such payments and all matters relating thereto, provided such person shall bear and pay all costs and expenses of the authority thereby incurred at the request of such person or by reason of any such action taken by such person on behalf of the authority. If such person occupying a project has paid the amounts in lieu of taxes required by this section to be paid, such person shall not be required to pay any such taxes for which a payment in lieu thereof has been made to the State or to any political subdivision, any other statute to the contrary notwithstanding.

    ¹[28.] 22.¹ (New section) The governing bodies of any two contiguous municipalities within which is located or is to be located a New Jersey Redevelopment Authority project situated in part within each municipality, may by reciprocal ordinances enter into agreements with each other to share all tax revenues, payments in lieu of taxes or other revenues as shall be derived from the entire project, and to which they are by law entitled, in such proportion as they deem proper.

    ¹[29.] 23.¹ (New section) Any agreement entered into pursuant to section ¹[28] 22¹ of P.L. , c. (C. ) (pending before the Legislature as this bill) for the sharing of payments and revenues derived from a project shall also set forth the manner in which the costs of municipal services for such project are to be apportioned and specify the services to be supplied by each municipality in sufficient detail so as to permit the owners, occupants and users of property within the project to determine the responsibilities of each participating municipality.

    ¹[30.] 24.¹ (New section) Notwithstanding any restriction contained in any other law, the State and all political subdivisions of this State, and all other persons who are or may hereafter be authorized to invest in bonds or other obligations of the State, may invest any sinking funds, moneys or other funds, including capital, belonging to them or within their control in any bonds or notes issued by the authority under the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill).

    ¹[31.] 25.¹ (New section) The foregoing sections of P.L. , c. (C. ) (pending before the Legislature as this bill) shall be deemed to provide a complete method for the doing of things authorized thereby and shall be regarded as not in conflict with, or as restrictive of, powers conferred by any other laws, and the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill) shall be complete authority for the issuance of bonds by the authority and the provisions of any other laws shall not apply to the issuance of such bonds.

    ¹[32.] 26.¹ (New section) With its first annual report, and every second year thereafter, the authority shall submit a New Jersey Redevelopment Strategy document, setting forth ¹[its assessment of the current needs for industrial, land-use improvement, civic, utility and multi-purpose projects in qualified municipalities of the State; its estimate of the resources available, under the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill), from public and private sources for the undertaking of such projects; and its anticipated participation in or assistance of such projects during the two years next succeeding the date of submission. The document shall set forth]¹ the goals and priorities governing the selection of the projects it anticipates participating in or assisting; and the authority shall annually review and evaluate the projects actually undertaken in light of the goals and priorities established therefor by the New Jersey Redevelopment Strategy document. In selecting projects for its participation, and in evaluating those projects in which it has participated, the authority shall devise and employ techniques for forecasting and measuring relevant indices of accomplishment of its goals of economic revitalization, including specifically:

    a. the number of jobs created, or to be created, by, or as a result of, the project;

    b. the cost, or estimated cost, to the State, involved in the creation of those jobs;

    c. the amount of private capital investment in, or stimulated by, a project, in proportion to the public funds invested therein; and

    d. in the case of an industrial project or a multi-purpose project which has, as one of its elements, a project classified as an industrial project, a determination, based upon written findings, that the project would not be undertaken but for the participation of the authority.

    ¹[33. (New section) a. Beginning 180 days after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), the Division of Investment may invest State-administered pension funds in authority bonds or projects; provided, however, that the amount of funds to be so invested in total shall not exceed one-half of one percent of the aggregate amount of pension funds invested or an aggregate of $200 million, whichever is greater.

     b. Twelve months after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), the Director of the Division of Investment in the Department of the Treasury shall report to the State Investment Council, the Governor and the Legislature the total amount of authority bonds purchased by the division and the percentage that amount represents of State-administered pension funds. The director of the division shall also set forth in the report what return on the investment has been realized on the investment in authority bonds and how that rate of return compares to the rate of return on other division investments of State-administered pension funds.

    Following the first report as required herein, the council shall include this information in its report submitted to the Governor, the Legislature and the State Treasurer on or before January first of each year pursuant to section 13 of P.L.1950, c.270 (C.52:18A-91).]¹

    ¹[34.] 27.¹ (New section) a. There is hereby created the New Jersey Redevelopment Investment Fund, or "fund," a revolving loan pool to be used for the purpose of making loans, loan guarantees or grants pursuant to the provisions of this act, into which shall be paid:

    (1) moneys received from the sale of authority bonds ¹[, including those moneys made available through the purchase of authority bonds by the Division of Investment pursuant to section 33 of P.L. , c. (C. ) (pending before the Legislature as this bill)]¹.

    (2) funds appropriated by section ¹[97]68¹ of P.L. , c. (C. ) (pending before the Legislature as this bill) ¹as may be determined by the authority¹;

    (3) repayments of loans or other payments, including repayments of principal and interest on loans, received by the authority pursuant to agreements made under authority of sections 5, ¹[13, 14, or 15] 8, 9 or 10¹ of P.L. , c. (C. ) (pending before the Legislature as this bill);

    (4) ¹[$20 million from the tax collected pursuant to section 3 of P.L.1966, c.30 (C.54:32B-3);

    (5)]¹ any income derived from investment pursuant to subsection b. of this section;

    ¹[(6)] (5)¹ moneys collected as user fees and facility charges in connection with any civic project or utilities project managed or operated by the authority as authorized by subsection z. of section 5 of P.L. , c. (C.   ) (pending before the Legislature as this bill);

    ¹[(7) those bond funds made available to the New Jersey Redevelopment Investment Fund from the bond funds referred to in sections 101, 102 and 103 of P.L. c. (C. ) (pending before the Legislature as this bill);]¹ and

    ¹[(8)] (6)¹ such additional funds as the Legislature may from time to time appropriate for the purpose.

    b. The fund shall be in the custody and control of the authority, which may invest and reinvest any portion thereof not immediately required for the purposes of the authority in the manner provided by law for investment of public funds on projects and investments utilizing revenues from the sale of general obligation bonds, which projects shall be subject to the approval of the State Treasurer, and the State Treasurer's actions shall be based solely on his fiduciary role to ensure that all applicable federal and State tax laws are adhered to regarding the investment of bond funds.

    c. The authority may resell any loan or loans made by the authority pursuant to this act to any buyer or buyers; the proceeds of any such sales shall be returned to the fund established pursuant to this section.

    ¹[35.] 28¹. (New section) a. Loan rates and maturities of loans made by the New Jersey Redevelopment Authority shall be established by the ³[State Treasurer] Commissioner of Commerce and Economic Development³ taking into consideration rates available in capital markets for comparable maturities and comparable credit quality. Local governments may secure interim financing under this act to enable a project to be undertaken before permanent financing is secured or may secure permanent financing under P.L. , c. (C. ) (pending before the Legislature as this bill) with a final maturity related to the expected useful life of the project being so financed.

    b. ³[Pending their application to the purposes provided in P.L.   , c. (C. ) (pending before the Legislature as this bill), the monies in the New Jersey Redevelopment Investment Fund may be invested and reinvested as are other trust funds in the custody of the State Treasurer, in the manner provided by law.]³ Net earnings received from the investment or deposit of ³[that fund] the New Jersey Redevelopment Investment Fund³ shall be paid into the New Jersey Redevelopment Investment Fund.

    ³[c. No interest-free loan shall be permitted without the written approval of the State Treasurer or his designee.

    d. The State Treasurer or the Director of the Division of Budget and Accounting in the Department of the Treasury shall approve expenditures from the fund for administrative costs.]³

    ¹[36.] 29.¹ (New section) a. Any county, by resolution of its governing body, shall have power to enter into contracts with the authority relating to any project or projects situated within the county; provided, however, that any such resolution shall be introduced in writing at a meeting of the governing body and shall be passed upon first reading which may be by title, and thereafter, the resolution shall be published with notice of the introduction thereof and of the date, time and place of further consideration for final passage, and on the date and at the time and place so advertised, all persons interested shall be given the opportunity to be heard and after the hearing, the governing body may proceed to reject or finally adopt the resolution by the recorded affirmative votes of at least two-thirds of the full membership of the governing body; and provided, further, that the resolution shall contain findings and determinations of the governing body (1) that the project will maintain employment opportunities in the county or provide new employment opportunities in the county and (2) that the contract with the authority is a necessary inducement to the undertaking of the project in that it makes the financing thereof feasible. The contract or contracts may provide for the payment to the authority by the county annually or otherwise of such sum or sums of money, computed at fixed amounts or by any formula, or in any other manner as may be fixed in or pursuant thereto. Any contract may be made and entered into for a term beginning currently or at some future or contingent date and with or without consideration and for a specified or unlimited time and on any terms and conditions which may be approved by the county and which may be agreed to by the authority in conformity with its contracts with the holders of any bonds, and shall be valid and binding on the county whether or not an appropriation is made thereby prior to authorization or execution of the contract. Every county is hereby authorized and directed to do and perform any and all acts and things necessary, convenient or desirable to carry out and perform any contract entered into by it and to provide for the payment or discharge of any obligation thereunder in the same manner as other obligations of the county.

    b. For the purpose of aiding the authority and cooperating in the planning, designing, acquiring, constructing, reconstructing, improving, equipping and furnishing of any project situate in any county, any county, by ordinance of its governing body, shall have power from time to time and for such period and upon such terms, with or without consideration, as may be provided by the ordinance and accepted by the authority:

    (1) to appropriate moneys for the purposes of the authority with respect to the project, and to loan or donate such money to the authority in such installments and upon such terms as may be agreed upon with the authority;

    (2) upon authorization by it in accordance with law of the performance of any act or thing which it is empowered by law to authorize or perform and after appropriation of the moneys, if any, necessary for that performance, to covenant and agree with the authority to do and perform any act and as to the time, manner and other details of its doing and performance; and

    (3) to appropriate money for all or any part of the cost of the acquisition or construction of the project, and, in accordance with the limitations and exceptions thereto and in the manner or mode of procedure prescribed by the local bond law to incur indebtedness, borrow money and issue its negotiable bonds for the purpose of the project and appropriation, and to pay the proceeds of those bonds to the authority.

    c. Any contract, and any instrument making or evidencing the same, may be pledged or assigned by the authority, with the consent of the county executing the contract, to secure its bonds and thereafter may not be modified except as provided by the terms of such instrument or by the terms of the pledge or assignment.

    ¹[37.] 30.¹ (New section) All property of the authority shall be exempt from levy and sale by virtue of an execution and no execution or other judicial process shall issue against the same nor shall any judgment against an authority be a charge or lien upon its property; provided, that nothing herein contained shall apply to or limit the rights of the holder of any bonds to pursue any remedy for the enforcement of any pledge or lien given by the authority on or with respect to any project or any revenues or other moneys.

    ¹[38.] 31.¹ (New section)  a.  ¹[The New Jersey Economic Development Authority shall repay without interest to the State Treasurer all moneys realized from borrowers upon loans they obtained through the New Jersey Urban Development Corporation, which loans were made from the sums appropriated to the Urban Development Investment Fund from the Community Development Bond Fund created pursuant to section 14 of the "Community Development Bond Act of 1982" (P.L.1981, c.486). The repayment from moneys realized from borrowers shall be considered as cash received from payments of principal and interest from the borrowers and received from the liquidation of collateral securing such loans. Such repayments shall be net of all direct expenses incurred in servicing the loan or in protecting and collecting the collateral, or both.

    b.]¹ All sums appropriated ¹[or],¹ transferred ¹or otherwise available¹ to the New Jersey Redevelopment Authority from any source, are transferred to the New Jersey Redevelopment Investment Fund to carry out the purposes of P.L. , c. (C. ) (pending before the Legislature as this bill).

    ¹[c. The New Jersey Economic Development Authority may, after negotiation and agreement with the State Treasurer, prepay all outstanding appropriations due in future years to the State Treasurer, discounted at an interest rate agreeable to the State Treasurer and the New Jersey Economic Development Authority.

    d.] b.¹ All of the functions, powers and duties of the New Jersey Urban Development Corporation ¹[,except for the administration of loans made prior to the effective date of this bill,]¹ are hereby transferred to and vested in the New Jersey Redevelopment Authority.

    ¹c. At the discretion of the board of the New Jersey Redevelopment Authority, all employees employed by the New Jersey Urban Development Corporation as of the effective date of this act may serve the New Jersey Redevelopment Authority.

    d. All records, property, outstanding loans, loan guarantees and other obligations of the New Jersey Urban Development Corporation shall be transferred to, and assumed by, the New Jersey Redevelopment Authority.¹

ARTICLE TWO - FINANCING

    ¹32. (New section) Moneys deposited in the fund established pursuant to section 4 of P.L.1983, c.190 (C.34:1B-39), shall be used to provide financial assistance to sponsors for implementation of projects as defined pursuant to P.L.1974, c.80 (C.34:1B-1 et seq.). Financial assistance provided by the fund shall be used to meet eligible project costs as defined pursuant thereto. Eligible projects to be undertaken by the New Jersey Redevelopment Authority pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill), shall be given priority consideration by the Commissioner of Commerce and Economic Development in administering this fund.¹

    ¹[39. (New section) The Legislature finds and declares that:

    a. There are areas within certain municipalities in this State that deter private capital investment because of the deteriorating condition of the land, buildings and infrastructure within those areas, or which have not experienced private capital investment due to inadequate infrastructure or adverse economic conditions.

    b. These areas also create an economic burden for the municipality due to the limited tax base and underutilization of resources.

    c. The scarcity of resources available to municipalities for redevelopment has severely hampered these municipalities' ability to rehabilitate these areas.

    d. In order to redevelop these areas in a beneficial manner, municipalities should be provided the means to finance certain costs of redevelopment so as to open new avenues for private investment; stimulate commercial, industrial, recreational, cultural, entertainment, civic and educational enterprise, and create favorable conditions for increases in economic activity, property values, employment opportunities and the provision of affordable housing.

    e. The use of new redevelopment tools as a catalyst for economic revitalization can be maximized if employed in conjunction with the redevelopment planning process established pursuant to P.L.1992, c.79 (C.40A:12A-1 et al.).

    f. It is, therefore, in the public interest to authorize the use of revenue allocation financing by municipalities and the dedication of payments in lieu of taxes toward the retirement of debt incurred in redevelopment, as set forth hereunder, to encourage private investment within areas that are blighted or in need of redevelopment or would otherwise remain unused.]¹

     ¹[40. (New section) As used in this article:

    "Area in need of redevelopment" means a redevelopment area as defined pursuant to section 3 of P.L.1992, c.79 (C.40A:12A-3).

    "Board" means the Local Finance Board established in the Division of Local Government Services in the Department of Community Affairs.

    "Bonds" means the bonds, notes and bond anticipation notes issued to finance projects pursuant to this article.

    "District" means the area or areas within a municipality designated as a revenue allocation district pursuant to the provisions of this article.

    "District agent" means that entity designated by the municipal governing body pursuant to section 41 of P.L. , c. (C. ) (pending before the Legislature as this bill) to administer a revenue allocation plan on behalf of the municipality.

    "Eligible revenue" means the property tax increment and any other incremental revenues set forth in section 48 of P.L. , c. (C. ) (pending before the Legislature as this bill).

    "Permitted investment obligations" means any securities permitted for purchase by local units of government pursuant to section 8 of P.L.1977, c.396 (C.40A:5-15.1).

    "Plan" means the final revenue allocation plan developed by a district agent pursuant to section 49 of P.L. , c. (C. ) (pending before the Legislature as this bill) and containing, among other elements, the proposed projects, estimated cost of the projects, sources of revenue, and the terms of any obligations, undertakings or commitments to be incurred by the district agent.

    "Pledged revenues" means those eligible revenues designated in the plan for payment of project costs.

    "Project" means the purchasing, leasing, condemning or otherwise acquiring of land or other property, or an interest therein, in the district or as necessary or convenient for the acquisition of any right-of-way or other easement to or from the revenue allocation district; the moving and relocation of persons or businesses displaced by the acquisition of land or property; the acquisition, construction, reconstruction or rehabilitation of land or property and the improvements thereon, or the financing thereof, including demolition, clearance, removal, relocation, renovation, alteration, construction, reconstruction, alteration or repair of any land, building, street, highway, alley, utility, mass transit facility, service or other structure, infrastructure or improvement in the district or necessary to effectuate the plan for the district, including infrastructure improvements outside the district, but only those which are integral to the effectuation of the district plan; the acquisition, construction, reconstruction, rehabilitation or installation of public facilities and improvements, or the financing thereof, other than facilities for the general conduct of government and schools, nonprofit corporation or other suitable public or private person, firm, corporation or association, including educational, cultural, civic and recreational facilities including, but not limited to, convention centers, arenas and public meeting facilities; acquisition, construction, reconstruction or rehabilitation of residential structures, or the conversion to residential use of structures previously designed or used for other purposes, or the financing thereof, nonprofit corporation or other suitable public or private person, firm, corporation or association, and which, to the extent economically feasible, shall constitute housing affordable to persons and families of low and moderate income pursuant to P.L.1985, c.222 (C.52:27D-301 et al.) or rules and regulations adopted pursuant thereto; and all costs associated with any of the foregoing, including the cost of administrative appraisals, legal, financial, economic and environmental analyses, engineering or cleanup, planning, design, architectural, surveying or other professional and technical services necessary to effectuate the purposes of P.L. , c. (C. ) (pending before the Legislature as this bill).

    "Project cost" means the cost of the plan or project in all or any part of the district and of all and any property, rights, easements, privileges, agreements and franchises deemed by the district agent to be necessary or useful and convenient therefor or in connection therewith, including interest or discount on bonds; cost of issuance of bonds; engineering and inspection costs; legal expenses; costs of financial and other professional estimates and advice; organization, administrative, operating and other expenses of the district agent prior to and during the planning and implementation of a development, plan or project, including such provision as the district agent may determine for the payment, or security for payment, of principal of or interest on bonds during or after the implementation of any development, plan or project.

    "Property tax increment" means the amount obtained by:

    (1) multiplying the general tax rate levied each year by the taxable value of all the property assessed within a district in the same year, excluding any special assessments; and

    (2) multiplying that product by a fraction having a numerator equal to the taxable value of all the property assessed within the district, minus the property tax increment base, and having a denominator equal to the taxable value of all property assessed within the district.

    "Property tax increment base" means the aggregate taxable value of all property assessed which is located within a district as of October 1 of the year preceding the year in which the district is authorized pursuant to this article.

    "Redevelopment plan" means a redevelopment plan as the term is defined pursuant to section 3 of P.L.1992, c.79 (C.40A:12A-3).

    "Revenue increment base" means the amount of any eligible revenues, other than the property tax increment, collected in the calendar year immediately preceding the adoption of the plan.

    "Taxing entity" means the county, the school district or districts, and the municipality authorized to levy a tax on the taxable property within a municipality.]¹

    ¹[41. (New section) A revenue allocation district shall consist of all lots and streets within the borders of an area within a municipality or within areas of the municipality designated in the plan. The lots and streets shall be contiguous unless the municipality determines that non-contiguous areas of the municipality should comprise one district because those areas are part of a common development project or plan. The total taxable value in all districts designated shall not exceed 15 percent of the total taxable property assessed within the municipality, as determined by the municipal assessor, except that, upon a request by the governing body, the board may approve for inclusion in the district up to 20 percent of the total taxable property assessed in the municipality, as determined by the municipal assessor. The lots and streets to be designated as part of the plan shall be designated as a revenue allocation district as part of a duly adopted redevelopment plan approved by the governing body.

    The governing body of a municipality may by ordinance establish a district or districts. In the case of a municipality whose redevelopment powers are assigned by law to a regional planning commission, the commission may, by resolution, establish a district or districts in the area within which the commission has jurisdiction. The ordinance or resolution, as appropriate, shall be adopted as provided in section 44 of P.L. , c. (C. ) (pending before the Legislature as this bill), and shall include or incorporate:

    a. a map designating the area or areas within the municipality as a district or districts;

    b. a certification by the municipal assessor that, upon the basis of property assessments as of October 1 of the year preceding the certification, the total taxable property value in all districts designated by the municipality, including the district being proposed in the ordinance, does not exceed 15 or 20 percent of the total taxable property assessed in the municipality, as appropriate, as provided in the ordinance adopted in accordance with the provisions of this section;

    c. the designation of a district agent, which may be a county improvement authority, a municipal redevelopment agency, a local housing authority with redevelopment powers, the New Jersey Redevelopment Authority established pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill) or one of its subsidiaries or the local governing body; provided, however, that if a district is created in an area under the jurisdiction of a regional planning commission which has been assigned redevelopment powers pursuant to law, that commission shall serve as the district agent in connection with that district;

    d. a designation of all or any percentage of any eligible revenue or revenues as pledged revenues;

     e. a statement of whether or not the municipality intends that the bonds issued by the district agent be guaranteed by the municipality, or be issued as qualified bonds pursuant to the "Municipal Qualified Bond Act," P.L.1976, c.38 (C.40A:3-1 et seq.), or both;

    f. a proposed preliminary revenue allocation plan, as set forth in section 42 of P.L. , c. (C. ) (pending before the Legislature as this bill); and

    g. documentation that the district has been identified in the appropriate redevelopment plan.]¹

    ¹[42. (New section) The proposed preliminary revenue allocation plan shall include:

     a. a certification by the municipal tax assessor of the property tax increment base of the district;

    b. a statement of the revenues if any to be pledged to support bonds of the district, the percentage of such revenues to be so pledged, and a certification by the chief financial officer of the municipality of the revenue increment base for each of the pledged revenues other than the property tax revenue base. If the amount of any such revenue base cannot be certified, then the chief financial officer shall estimate the amount and describe the basis for preparing the estimate and the manner in which the revenue increment base will be determined after adoption of the plan;

    c. a description of the proposed project or projects, an estimate of their cost, a proposed construction schedule, and the projected debt service on the bonds issued to finance the project and the anticipated amount of private activity bonds, as that term is defined in 26 U.S.C.§141, to be issued, if any;

    d. a description of the development expected or planned within the district, including the identification of the developers, if any, other than the district agent or the municipality, and their contractual relationship, if any, with the district agent or the municipality;

    e. an estimate of the taxable value of the assessed property within a district upon completion of the projects;

    f. a projection of the amount of the pledged revenues during the period in which any bond will be outstanding;

    g. a statement of whether or not the district agent intends to create a reserve for payment of project costs prior to the adoption of the final revenue allocation plan;

    h. a statement of whether or not tax abatements or exemptions are expected to be granted in the district; and

    i. a fiscal impact statement for the taxing entities involved.]¹

    ¹[43. (New section) When an ordinance establishing or amending a district has passed first reading, it shall be submitted as an application, together with all included and incorporated certificates and documents and such additional documentation as the board may by rule prescribe, to the board and the State Treasurer. The board shall notify the State Treasurer of its receipt of the submission.

    The board shall approve the ordinance if it determines that:

    a. the planned developments are likely to be realized and would not likely be accomplished by private enterprise without the creation of the district and the revenue allocation financing of the proposed project or projects;

    b. the revenue increments and any other pledged revenues will be sufficient to pay debt service on bonds issued to effectuate the plan;

    c. the credit of the municipality and its ability to pay the principal of and interest on its debts and to provide essential public services will not be impaired;

    d. the creation of the district will contribute to the economic development of the municipality;

    e. the size of the proposed district and the amount of the pledged revenues do not exceed the size and amount necessary to accomplish the purposes of the plan; and

     f. the pledged revenue or guarantees would not pose inappropriate risk or undue financial hardship to the taxpayers of the community in the event of default.

    In approving ordinances, the board shall give priority to any municipality in which an empowerment neighborhood has been designated.]¹

    ¹[44. (New section) a. The board and the State Treasurer may make written recommendations as to any aspect of the ordinance and the preliminary revenue allocation plan and any related fiscal matters of the municipality which in the opinion of the board or the State Treasurer must be changed in order to effectuate the plan. The board may condition its approval of the ordinance upon the adoption of its recommendations by the municipality.

    b. The board shall approve, approve with conditions, or disapprove the ordinance within 60 days of its receipt of an application which the board has deemed to be complete. If the board does not act within 60 days the ordinance shall be deemed approved. If the board disapproves the ordinance it shall, within 30 days of signifying its disapproval, set forth its reasons in writing. The municipality may amend the ordinance and resubmit it to the board and the State Treasurer.

    c. Upon receipt of the approved ordinance from the board, the municipal governing body may adopt the ordinance at a meeting of the governing body by a majority of the authorized membership thereof.]¹

    ¹[45. (New section) After adoption of the ordinance establishing a district there shall be no changes in the boundaries of the district, the designation of the district agent, or the designation of the pledged revenues without cause and without adoption of an amending ordinance approved by the board as provided in section 44 of P.L. , c. (C. ) (pending before the Legislature as this bill).

    Cause for expanding the district or enlarging the designation of pledged revenues shall be based on the need to maintain pledged revenues sufficient to secure all outstanding and anticipated indebtedness of the district agent or to undertake additional projects.

    Cause for contracting the district or reducing the designation of pledged revenues shall be based on the need to create other districts within the municipality and on the demonstration that the amount of the pledged revenue is excessive for the purposes of the district; however, in no case shall the size of the district be contracted or the pledged revenues be reduced if the district agent has issued bonds or incurred obligations and if such contraction or reduction would impair the security of the bonds or the district agent's ability to pay its obligations.]¹

    ¹[46. (New section) Whenever a district is expanded as permitted under section 45 of P.L. , c. (C. ) (pending before the Legislature as this bill) the property tax increment base for any area added to the district shall be the aggregate taxable value of all property assessed which is located within the added area as of October 1 of the year preceding the year in which the area is added, as certified by the municipal assessor. The revenue increment base of all other eligible revenues shall include the amounts of all other eligible revenues from sources within the added area in the calendar year preceding the year in which the area is added, as certified by the chief financial officer of the municipality.

    Whenever a district is contracted as permitted under section 45 of P.L. , c. (C. ) (pending before the Legislature as this bill) the tax increment base and the increment base of all other eligible revenues of the district shall be adjusted as if that area had not been a part of the district at the time when it became part of the district.]¹

    ¹[47. (New section) The district agent shall have the following powers and responsibilities:

    a. to make and enter into contracts or agreements with public agencies, nonprofit corporations or other suitable public or private persons, firms, corporations or associations, and to make loans or grants to, or guarantee the obligations of, any other public agency or corporation, as may be necessary, convenient or incidental to the execution of the plan and the exercise of the district agent's powers under P.L. , c. (C. ) (pending before the Legislature as this bill).

    b. to enter into agreements or other transactions with, and accept grants, loans, appropriations or other assistance or cooperation from the United States or any agency thereof, or from the State or a county or municipal governing body or any agency thereof, or any nonprofit corporation or other suitable public or private person, firm, corporation or association in furtherance of the purposes of P.L.   , c.   (C. ) (pending before the Legislature as this bill);

    c. to prepare and administer the plan according to the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill);

    d. to hire or consult with private consultants when preparing the plan, or to enter into agreements with public or nonprofit private agencies to prepare and administer the plan;

    e. to issue bonds for any purpose of the district authorized by or pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill), or to issue refunding bonds for the purpose of paying or retiring bonds previously issued by it, and to issue notes in anticipation of the issuance of bonds as provided in P.L. , c. (C. ) (pending before the Legislature as this bill);

    f. to seek and receive funds from local, State and federal governments and from private sources for the purpose of implementing any authorized development or project or meeting any project cost; and

    g. to pay project costs, specifically including payments to a private developer, as reimbursement for project costs incurred by a private developer, in accordance with a redevelopment agreement entered into by the municipality or municipalities and the private developer.

    Nothing herein is intended to limit the powers granted under any other law or regulation to the entity acting as district agent under P.L.   , c. (C. ) (pending before the Legislature as this bill).]¹

    ¹[48. (New section) In addition to the property tax increment, the plan may include one or more of the following eligible revenues if the municipality is otherwise authorized by law to collect such revenues:

    a. incremental payments in lieu of taxes, with respect to property located in the district, made pursuant to the "Long Term Tax Exemption Law," P.L.1991, c.431 (C.40A:20-1 et al.);

    b. incremental revenues from payroll or wage taxes with respect to activities carried on within the district;

    c. incremental revenue from lease payments made to the municipality or district agent with respect to property located in the district;

    d. incremental revenue from payments in lieu of taxes or service charges with respect to property located within the district;

    e. incremental revenue from parking taxes derived from parking facilities located within the district;

    f. admissions and sales taxes received from the operation of a public facility which the district agent is authorized by law to retain;

    g. sales and excise taxes which are derived from activities within the district and which are rebated to or retained by the municipality pursuant to the "New Jersey Urban Enterprise Zones Act," P.L.1983, c.303 (C.52:27H-60 et seq.) or any other law providing for such rebate or retention;

    h. parking revenue from public parking facilities built as part of a project except for public parking facilities owned by parking authorities pursuant to the "Parking Authority Law," P.L.1948, c.198 (C.40:11A-1 et seq.);

    i. assessments levied against properties in a special improvement district pursuant to section 8 of P.L.1972, c.134 (C.40:56-72), if consented to by the governing body of the municipality in which the special improvement district is situated.

    The incremental revenue for the revenues listed in subsections b., c., d. and e. of this section shall be calculated as the difference between the amount collected in any calendar year from any eligible revenue source included in the plan, less the revenue increment base for that eligible revenue.]¹

    ¹[49. (New section) Before pledging any revenues, issuing any bonds, incurring any obligations or guaranteeing the obligations of any other entity with respect to the project costs of any project, the district agent shall adopt a final revenue allocation plan for that project. That plan shall include:

    a. a description of the project or projects to be financed, including the projected cost and construction schedule;

    b. a description of any development to be undertaken by any developer in connection with the project, including an estimate of the eligible revenues anticipated from the development;

    c. a description of the eligible revenues to be pledged to the support of the project, or to the bonds or other obligations to be issued or incurred by the district agent;

    d. a description of other anticipated projects for the district and the anticipated means of financing those projects;

    e. a copy of any proposed bond resolution, contract, lease or other agreement to be adopted or authorized by the district agent. Any proposed bond resolution shall include a description of the security features of the bonds, including reserve funds or other security enhancements, if any, such as a municipal guarantee, qualified bond authorization, bond insurance or letter of credit; the maturity schedule for the bonds; the estimated interest rate; the period of capitalized interest, if any; an estimate of the costs of issuance, with identification of bond counsel, financial advisers, underwriters and other professionals engaged to assist in the issuance of bonds; lien priorities among projects, if any; and such other information as the board may require; and

    f. a certification by the chief financial officer of the property tax increment base, if property tax increment revenue is to be pledged, and of the revenue increment base for each other pledged revenue. If the amount of any such revenue increment base cannot be certified, then the chief financial officer shall estimate the amount and describe the basis for preparing the estimate and the manner in which the revenue increment base will be determined after adoption of the final plan.]¹

    ¹[50. (New section) A final revenue allocation plan shall be submitted to the governing body of the municipality for approval by ordinance. When an ordinance embodying a final revenue allocation plan has been introduced in writing at a meeting of the governing body and approved on first reading, which may be by title, by a majority of the authorized membership thereof, it shall be submitted, together with all included and incorporated certificates and documents and such additional supporting documentation as the board may by rule prescribe, to the board and the State Treasurer. The board shall notify the State Treasurer of the receipt of the submission.

    The board shall approve the plan if it determines that:

    a. the planned developments are likely to be realized and would not be accomplished by private enterprise without the creation of the district and the financing of the proposed project or projects;

    b. the pledged revenues will be sufficient to pay debt service on bonds and discharge any obligations undertaken by the district agent to effectuate the plan;

    c. the credit of the municipality and its ability to pay the principal of and interest on its debts and to provide essential public services will not be impaired; and

    d. the pledged revenues or guarantees would not pose inappropriate risk or undue financial hardship to the taxpayers of the community in the event of default.]¹

    ¹[51. (New section) a. The board and the State Treasurer may make written recommendations as to any aspect of the plan and any related fiscal matters of the municipality or the district agent which, in the determination of the board and the State Treasurer, must be changed in order to effectuate the plan, and the board may condition its approval of the plan upon the adoption of its recommendations or those of the State Treasurer.

    b. The board shall approve, approve with conditions, or disapprove the plan within 60 days of its receipt of an application which the board has deemed to be complete. If the board does not act within 60 days the plan shall be deemed approved. If the board disapproves the plan it shall set forth its reasons in writing within 30 days of its disapproval. The governing body, upon recommendation of the district agent, may amend the ordinance and resubmit it to the board and the State Treasurer.

    c. Upon receipt of the approved ordinance from the board the municipal governing body may adopt the ordinance at a meeting of the governing body by a majority of the authorized membership thereof. Any changes to the plan as embodied in the ordinance shall be by amendment of the ordinance adopted and approved by the same method as prescribed in section 44 of P.L. , c. (C. ) (pending before the Legislature as this bill) in connection with the proposed preliminary revenue allocation plan included in the ordinance establishing the district.]¹

    ¹[52. (New section) If the preliminary revenue allocation plan has designated the property tax increment as a pledged revenue, the property tax increment shall be calculated and paid to the revenue allocation fund or the bond trustee, as appropriate, as provided hereunder.

    a. Upon the striking of the tax rate in each year following the adoption of the ordinance creating the district, the chief financial officer of the municipality, with assistance provided by the assessor and collector, shall calculate the amount of property tax increment, if any, for each revenue allocation district within the municipality and shall certify to the district agent of each such district a copy of that calculation. Thereafter the chief financial officer shall, within 10 days after each date fixed by statute for the payment of property taxes, cause to be deposited in the revenue allocation fund of the district agent or paid to the trustees as provided in the resolution authorizing the issuance of bonds the percentage of the property tax increments certified in the plan as designated to be so deposited or paid. The calculation of the property tax increment shall be based on the amount to be billed at the quarterly payment date, regardless of whether or not the increment is actually collected from the taxpayers within the district.

    b. Whenever an added assessment shall occur within a district, the chief financial officer of the municipality shall notify the district agent and thereafter shall, within 10 days of the date fixed by law for payment of property taxes on such added assessment, cause to be paid to the revenue allocation fund or the bond trustee, as appropriate, the property taxes, or a percentage thereof as designated in the plan, billed upon such added assessment, regardless of whether or not the tax or any portion thereof is actually collected.

    c. Whenever an omitted assessment which if not omitted would have been included in the computation of the tax increment of a district occurs, the chief financial officer of the municipality shall notify the district agent and thereafter shall, within 10 days after the date fixed by statute for payment of taxes upon such omitted assessments, cause to be deposited to the revenue allocation fund or paid to the bond trustees of the district, as appropriate, the proportion of tax upon such omitted assessments designated in the plan for such deposit or payment, regardless of whether or not the tax or any portion thereof is actually collected.

    d. In no event shall any changes in assessed valuation within a district due to appeals or correction of errors with respect to a tax year subsequent to the creation of the district alter the amount of property tax increment certified pursuant to this section for that tax year.

    e. In no event shall any changes in assessed valuation within a district due to appeals or correction of errors alter the property tax increment base of the district.

    f. Whenever a revaluation or general reassessment occurs in a municipality which has designated one or more districts, the property tax increment base for each district shall be adjusted to equal the absolute difference between the taxable value of the property in the district after revaluation or reassessment less the amount of the property tax increment base for the year immediately prior to the revaluation or reassessment divided by the adjusted tax rate. The adjusted tax rate shall be a fraction, the numerator of which is the total tax levy of the municipality before revaluation or reassessment and the denominator of which is the total taxable value of all taxable property in the municipality after revaluation or reassessment.]¹

    ¹[53. (New section) If the preliminary revenue allocation plan has designated any eligible revenues, in addition to or other than the property tax increment, as a pledged revenue, the other pledged revenues shall be deposited as provided in this section.

    a. The collector of any pledged revenues shall certify to the municipal chief financial officer the amount of the eligible revenue collected in the preceding calendar year no later than January 30 of each year and shall pay to the municipality such amount, or the percentage thereof designated in the plan, beginning in the first calendar year after the creation of the district.

    b. The municipality shall include in its budget the amount certified as collected in the preceding year and shall pay to the district agent for deposit in the revenue allocation financing fund the amount certified in the plan as designated for such payment.

    c. Payments in lieu of taxes shall be deposited in four equal installments, regardless of the date or dates fixed for such payments by statute, agreement or otherwise.]¹

    ¹[54. (New section) The district agent shall submit its operating budget for the district annually to the Director of the Division of Local Government Services in the Department of Community Affairs and to the State Treasurer. If the district agent certifies that the budget is in compliance with a preliminary or final financing plan and all other relevant statutes and rules, the director shall approve the budget within 45 days of receipt. If the director disapproves the budget he shall state the reasons therefor. The district agent may then make the necessary changes and resubmit the budget for approval. The director may adopt rules and regulations in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), to ensure the fiscal integrity of districts and effectuate the intent of P.L. , c. (C. ) (pending before the Legislature as this bill).]¹

    ¹[55. (New section) The district agent shall establish and maintain a special fund called the "(Name of district agent) Revenue Allocation Fund," and herein referred to as "district fund" or "fund."

    The fund shall be used by the district agent for purposes of P.L.   , c. (C. ) (pending before the Legislature as this bill), including but not limited to:

    a. paying the project costs;

    b. paying the principal of and interest on bonds or other obligations issued or guaranteed pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill);

    c. prepaying the principal of and interest on the bonds or other obligations;

    d. paying additional property tax increment revenue, if any, to taxing entities, as provided for in subsections b. and c. of section 56 of P.L. , c. (C. ) (pending before the Legislature as this bill) or in the final revenue allocation plan; and

    e. reimbursing the municipality for any payments made by the State pursuant to the "Municipal Qualified Bond Act," P.L.1976, c.38 (C.40A:3-1 et seq.) to pay debt service on any qualified bonds issued pursuant to section 63 of P.L. , c. (C. ) (pending before the Legislature as this bill).]¹

    ¹[56. (New section) a. Prior to the adoption of a final revenue allocation plan, the district agent may draw money from the revenue allocation fund for purposes of paying all project costs incurred in connection with the development of the final revenue allocation plan as provided in the approved operating budget, including a reserve for project costs if such reserve is part of the preliminary plan.

    b. At the end of each calendar year, any moneys in the fund not required by the district agent for development of the plan shall be distributed to the taxing entities that shall forgo the pledged revenues. The revenues shall be distributed by the district agent in proportion to the taxing effort of each taxing entity in the year of distribution; except that no revenues deposited in the fund shall be included in the calculation of any adjustment payments payable to an intermunicipal account pursuant to statute.

    c. After the adoption of the final revenue allocation plan the district agent may decide to distribute to the taxing entities that shall forgo the revenues pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill) a portion of the revenue increments received by the district agent not pledged to the payment of debt service or necessary to pay project costs. The revenues shall be distributed in proportion to the taxing effort of each such taxing entity in the year of distribution.

    d. Moneys in the fund may be invested in the State of New Jersey Cash Management Fund established pursuant to section 1 of P.L.1977, c.281 (C.52:18A-90.4) or in any securities that a local government is

permitted to purchase pursuant to section 8 of P.L.1977, c.396 (C.40A:5-15.1).]¹

     ¹[57. (New section) Except where the municipal governing body has designated itself as the district agent, or except in municipalities which are under the jurisdiction of a regional planning commission assigned redevelopment powers pursuant to law, any action of the district agent shall be subject to the veto of the mayor of the municipality. The veto shall be exercised by the veto of the minutes of the district agent by the mayor. The mayor shall have 10 days, Saturdays, Sundays and legal holidays excepted, after receipt of the minutes to exercise the veto. If a mayoral veto is exercised during that period, the action of the district agent shall be considered null and void. If no veto is exercised during that period, the action of the district agent shall be considered valid. The mayor, upon receipt of the minutes, may in writing notify the district agent of the approval of the minutes before the expiration of the 10-day period. Where the municipal governing body has designated itself as the district agent, the mayor shall have only such veto powers as are granted to the mayor by law.

    The veto power shall be exercised with due regard for the rights of the holders of bonds issued by the district agent and shall not limit, restrict or alter the obligations or powers of the district agent to carry out and perform in every detail each and every covenant, agreement or contract entered into with respect to the bonds or for the benefit, protection or security of the bond holders.]¹

    ¹[58. (New section) Subject to the limitations contained in P.L.   , c. (C. ) (pending before the Legislature as this bill), each district shall remain in existence until obligations for any project in that district cease to be outstanding; provided, however, the district may be terminated if sufficient moneys have been deposited in the revenue allocation fund for the full payment of the principal of and interest on the bonds at maturity or full payment of any other obligations, and if the board approves the dissolution of the district. The Division of Local Government Services in the Department of Community Affairs may recommend to the municipality the dissolution of a district which has not taken substantial steps to implement the plan, so long as there are no bonded obligations outstanding or contractual obligations to pay any part of project costs.]¹

    ¹[59. (New section) a. In calculating the general tax rate levied each year, the aggregate amount of the ratable increments of the tax increment districts shall not be considered a part of the total taxable value of land and improvements within the municipality.

    b. In calculating the net valuation on which school district taxes are apportioned, the aggregate amount of the ratable increments in the tax increment district shall be excluded.

    c. For purposes of this section, "ratable increment" means the taxable value of all property assessed within a district for the tax year, minus the tax increment base.]¹

    ¹[60. (New section) Upon approval of the resolution by the board and adoption of an ordinance approving or adopting the final revenue allocation plan by the municipal governing body, the district agent shall have the power to incur indebtedness, borrow money and issue its bonds or notes for purposes of financing a project or funding or refunding its bonds or notes. If the district agent is the municipal governing body, any pledge of revenues or funds and obligations incurred shall be limited to the revenues and property accruing to the municipality as district agent and shall not be deemed to include any other municipal revenue or property unless such revenues are pledged or obligations are incurred pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill). The district agent may from time to time issue its bonds or notes in such principal amounts as in the opinion of the district agent are necessary to provide sufficient funds for all or any portion of project costs, including the payment, funding or refunding of the principal of or interest or redemption premiums on any bonds or notes issued by it, whether the bonds or notes or interest to be funded or refunded has or has not become due; the establishment or increase of such reserves to secure or to pay the bonds or notes or interest thereon; and all other costs or expenses of the district agent incident to and necessary to carrying out its corporate purposes and powers.

    Any provisions of law to the contrary notwithstanding, a bond issued pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill) shall be fully negotiable within the meaning and for all purposes of Title 12A of the New Jersey Statutes, and each holder of the bond, or a coupon appurtenant thereto, by accepting the bond or coupon shall be conclusively deemed to have agreed that the bond or coupon is and shall be fully negotiable within the meaning and for the purposes of that title.]¹

    ¹[61. (New section) Bonds or notes of the district agent shall be authorized by a resolution or resolutions of the district agent and may be issued in one or more series and shall bear such dates, mature at such times, bear interest at such rates of interest per annum, be in such denominations, be in such form, either coupon or registered, carry such conversion or registration privileges, have such rank or priority, be executed in such manner, be payable from such sources and in such medium of payment at such places within or without the State, and be subject to such terms of redemption, with or without premium, as the resolution or resolutions may provide.

    Bonds or notes of the district agent may be sold at public or private sale at such price and in such manner as the district agent shall determine. Every bond shall mature and be paid not later than 35 years from the date thereof.

    Bonds or notes may be issued under the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill) without any other proceeding or the occurrence of any other conditions or other things than those proceedings, conditions or things which are specifically required by P.L. , c. (C. ) (pending before the Legislature as this bill).

     Bonds or notes of the district agent issued under the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill) shall contain a statement to the effect that they are issued pursuant to P.L.   , c. (C. ) (pending before the Legislature as this bill) and entitled to the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill).]¹

    ¹[62. (New section) Each issue of bonds or notes of the district may, if it is determined by the district agent, be general obligations thereof payable out of any revenues, receipts or funds held by the district agent, subject only to any agreements with the holders of particular bonds or notes pledging any particular revenues or funds, and may be secured by one or more of the following:

    a. pledge of eligible revenues and any other revenues derived from leases, sales agreements, service contracts or similar contractual arrangements with one or more persons, firms, partnerships or corporations, whether or not the same relate to the project or part thereof financed with the bonds or notes;

    b. pledge of grants, subsidies, contributions or other payments to be received from the United States of America or any instrumentality thereof, or from any State, county or municipal governmental body or agency;

    c. a first mortgage on all or any part of the property, real or personal, of the district agent then owned or thereafter to be acquired; or

    d. pledge of any moneys, funds, accounts, securities and other funds, including the proceeds of the bonds or notes.]¹

    ¹[63. (New section) The municipal governing body may issue general obligation bonds to guarantee payment of the bonds or notes pursuant to the provisions of the "Local Bond Law," N.J.S.40A:2-1 et seq. Such guarantees shall be set forth in the final revenue allocation plan approved pursuant to section 49 of P.L. , c. (C. ) (pending before the Legislature as this bill).

    The district agent may file an application with the board to qualify an issue of its bonds pursuant to the "Municipal Qualified Bond Act," P.L.1976, c.38 (C.40A:3-1 et seq.). Intention to file such an application shall be set forth in the final revenue allocation plan approved pursuant to section 49 of P.L. , c. (C. ) (pending before the Legislature as this bill). Bonds may be issued by the district agent as municipal qualified bonds upon the review and approval of the board as provided in the "Municipal Qualified Bond Act," P.L.1976, c.38 (C.40A:3-1 et seq.). In considering the ordinance, the board may require the governing body to adopt resolutions restricting or limiting any future issuance of bonds for any purpose.

    Upon the issuance of such bonds and certification to the State Treasurer of the name and address of the paying agent, the maturity schedule, interest rates and dates of payment of debt service, the State Treasurer shall withhold municipal qualified revenues payable to the municipality in amounts sufficient to pay debt service on such bonds as the same shall mature and become due. The State Treasurer shall on or before each principal and interest payment date forward such withheld amounts to the paying agent for the sole purpose of paying debt service on such bonds. As such withheld amounts are forwarded to the paying agent, the district agent shall return a like amount of eligible revenues received by the district agent, if any, which may be applied to the payment of municipal operating expenses.]¹

    ¹[64. (New section) In any resolution of the district agent authorizing or relating to the issuance of any bonds or notes, the district agent, in order to secure the payment of the bonds or notes and in addition to its other powers, shall have power by provisions in that resolution, which shall constitute covenants by the district agent and contracts with the holders of the bonds or notes, to:

    a. secure the bonds or notes as provided in section 63 of P.L. , c.   (C. ) (pending before the Legislature as this bill);

    b. covenant against pledging all or any part of its revenues or receipts from its lease, sales arrangement, service contracts or other security instruments, of the revenues or receipts under any of the foregoing or the proceeds thereof, or against mortgaging or leasing all or any part of the its real or personal property then owned or thereafter acquired, or against permitting or suffering any of the foregoing;

    c. covenant with respect to limitations on any right to sell, mortgage, lease or otherwise dispose of any project or any part thereof or any property of any kind;

    d. covenant as to any bonds and notes to be issued and the limitations thereon and the terms and conditions thereof and as to the custody, application, investment, and disposition of the proceeds thereof;

    e. covenant as to the issuance of additional bonds or notes or as to limitations on the issuance of additional bonds or notes and on the incurring of other debts by it;

    f. covenant as to the payment of the principal of or interest on the bonds or notes, or any other obligations, as to the sources and methods of the payment, as to the rank or priority of the bonds, notes or obligations with respect to any lien or security or as to acceleration of the maturity of the bonds, notes or obligations;

    g. provide for the replacement of lost, stolen, destroyed or mutilated bonds or notes;

    h. covenant against extending the time for the payment of bonds or notes or interest thereon;

    i. covenant as to the redemption of bonds or notes and privileges of exchange thereof for other bonds or notes of the district agent;

    j. covenant as to the fixing and collection of rents, fees, rates and other charges, the amount to be raised each year or other period of time by rents, fees, rates and other charges and as to the use and disposition to be made thereof;

    k. covenant to create or authorize the creation of special funds or moneys to be held in pledge or otherwise for construction, operating expenses, tax rebate, payment or redemption of bonds or notes; reserves or other purposes and as to the use, investment, and disposition of the moneys held in these funds;

    l. establish the procedure, if any, by which the terms of any contract or covenant with or for the benefit of the holders of bonds or notes may be amended or abrogated, the amount of bonds or notes the holders of which must consent thereto, and the manner in which the consent may be given;

    m. covenant as to the construction, improvement, operation or maintenance of any project and its other real and personal property, the replacement thereof, the insurance to be carried thereon, and the use and disposition of insurance moneys;

    n. provide for the release of property, leases or other agreements, or revenues and receipts from any pledge or mortgage and to reserve rights and powers in, or the right to dispose of, property which is subject to a pledge or mortgage;

    o. provide for the rights and liabilities, powers and duties arising upon the breach of any covenant, condition or obligation and prescribe the events of default and the terms and conditions upon which any or all of the bonds, notes or other obligations of the district agent shall become or may be declared due and payable before maturity and the terms and conditions upon which the declaration and its consequences may be waived;

    p. vest in a trustee or trustees within or without the State such property rights, powers and duties in trust as the district agent may determine, including the right to foreclose any mortgage, which may include any or all of the rights, powers and duties of any trustee appointed by the holders of any bonds or notes issued pursuant to this section and to limit or abrogate the right of the holders of any bonds or notes of the district agent to appoint a trustee under P.L. , c. (C.   ) (pending before the Legislature as this bill), and to limit the rights, duties and powers of the trustee;

    q. execute all mortgages, leases, sales agreements, service contracts, bills of sale, conveyances, deeds of trust and other instruments necessary or convenient in the exercise of its powers or in the performance of its covenants or duties;

    r. pay the costs or expenses incident to the enforcement of the bonds or notes or of the provisions of the resolution or of any covenant or agreement of the district agent with the holders of its bonds or notes;

    s. limit the rights of the holders of any bonds or notes to enforce any pledge or covenant securing bonds or notes; and

    t. make covenants other than or in addition to the covenants authorized by P.L. , c. (C. ) (pending before the Legislature as this bill) of like or different character, and to make such covenants to do or refrain from doing such acts and things as may be necessary, or convenient and desirable, in order to better secure bonds or notes or which, in the absolute discretion of the district agent will tend to make bonds or notes more marketable, notwithstanding that the covenants, acts or things may not be enumerated herein.]¹

    ¹[65. (New section) Any pledge of revenues, receipts, moneys, funds, levies, sales agreements, service contracts or other property or instruments made by the district agent shall be valid and binding from the time when the pledge is made. The revenues, receipts, moneys, funds or other property so pledged and thereafter received by the district agent or a subsidiary shall immediately be subject to the lien of the pledge without any physical delivery thereof or further act, and the lien of any pledge shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the district agent irrespective of whether the parties have notice thereof. Neither the resolution nor any other instrument by which a pledge under this section is created need be filed or recorded except in the records of the district agent.]¹

    ¹[66. (New section) Neither the directors of the district agent nor any person executing bonds or notes issued pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill) shall be liable personally on the bonds or notes by reason of the issuance thereof.]¹

    ¹[67. (New section) The district agent may establish such reserves, funds or account as may be, in its discretion, necessary or desirable to further the accomplishment of the purposes of the district agent or to comply with the provisions of any agreement made by or any resolution of the district agent.

    The State and all public officers, governmental units and agencies thereof, all banks, trust companies, savings banks and institutions, building and loan associations, savings and loan associations, investment companies, and other persons carrying on a banking business, all insurance companies, insurance associations and other persons carrying on an insurance business, and all executors, administrators, guardians, trustees and other fiduciaries may legally invest any sinking funds, moneys or other funds belonging to them or within their control in any bonds or notes issued pursuant to P.L. , c.   (C. ) (pending before the Legislature as this bill), and such bonds or notes shall be authorized security for any and all public deposits.]¹

    ¹[68. (New section) Bonds, notes or other obligations issued pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill) are for an essential public and governmental purpose, and the bonds, notes or other obligations, their transfer and the interest and premium, if any, thereon and the income therefrom, including any profit made on the sale thereof, and all assessments, charges, funds, revenues, income and other moneys pledged or available to pay or secure the payments of the bonds, or interest thereon, shall be exempt from taxation of every kind by the State and the municipality, except transfer inheritance and estate taxes unless exemptions from those taxes have been provided under other laws.]¹

    ¹[69. (New section) If any section, part, phrase, or provision of P.L.   , c. (C. ) (pending before the Legislature as this bill) of the application thereof to any person, project or circumstances, be adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the section, part, phrase, provision or application directly involved in the controversy in which such judgment shall have been rendered and shall not affect or impair the validity of the remainder of P.L. , c. (C. ) (pending before the Legislature as this bill) or the application thereof to other persons, projects or circumstances.]¹

    ¹[70.] 33.¹ (New section) ¹[ a.]¹ In order to provide security for the bonds or other obligations authorized herein, a municipality may adopt an ordinance which provides for tax abatement within a redevelopment area and for a payment in lieu of taxes. Any tax abatement granted by the municipality and any agreement for the payment in lieu of taxes shall be included as part of a financial agreement between the municipality and the developer in accordance with the provisions of P.L.1991, c.431 (C.40A:20-1 et seq.); provided, however, that provisions of subsection b. of section 12 of P.L.1991, c.431 (C.40A:20-12) ¹[and],¹ subsection a. of section 14 of P.L.1991, c.431 (C.40A:20-14) ¹ and subsection c. of section 18 of P.L.1991, c.431 (C.40A:20-18)¹ shall not apply to any financial agreement entered into pursuant to this section.

    ¹[71.] 34.¹ (New section) a. A financial agreement entered into pursuant to section ¹[70] 33¹ of P.L. , c. (C. ) (pending before the Legislature as this bill) shall provide for payments in lieu of taxes in an amount agreed upon, and, to the extent needed to pay debt service and other related costs of the bonds or other obligations authorized in this section, shall be pledged to the repayment of the bonds or other obligations authorized in this section. 

    b. The bonds or other obligations authorized in this section shall be special and limited obligations secured by the agreement for payment in lieu of taxes or other available sources.

    c. The New Jersey Redevelopment Authority ¹, New Jersey Economic Development Authority¹ or county improvement authority may issue negotiable bonds or other obligations for the purpose of financing or refinancing the construction, reconstruction, repair, alteration, improvement and development of any infrastructure or parking or transportation facilities or work that reduces, abates or prevents environmental pollution or other improvements that provide a public benefit within or to a redevelopment area ³as defined pursuant to section 3 of P.L.1992, c.79 (C.40A:12A-3)³.

    d. The financial agreement provided for in this section or other source of revenues may be assigned, by the municipality, in whole or in part, directly to the New Jersey Redevelopment Authority ¹, New Jersey Economic Development Authority¹ or county improvement authority or the trustee of bonds or other obligations as payment or security for the bonds or other obligations.

    e. In the event the payment in lieu of taxes is secured by a mortgage, the mortgage may also be assigned and pledged to the repayment of the bonds authorized herein.

    f. Notwithstanding any law to the contrary, the assignment of the agreement for payment in lieu of taxes may be an absolute assignment of all or part of the municipality's right, title and interest in such agreement or in the payment in lieu of taxes, and to the extent assigned, such agreement or payment shall not be included in the general funds of the municipality.

    g. After the bonds or other obligations are paid and no longer deemed to be outstanding, the entire payment in lieu of taxes shall be paid directly to the municipality and shall be included within its general funds.

    h. The assignment of any mortgage that secures a payment in lieu of taxes may also be an absolute assignment of all or part of the municipality's right, title and interest in such mortgage and, to the extent assigned, any moneys realized from the foreclosure of the mortgaged property shall not be included in the general funds of the municipality.

    i. After the bonds or other obligations are paid and no longer deemed to be outstanding, the assignment of the mortgage shall terminate and any monies realized from the foreclosure of the mortgaged property shall be included in the general funds of the municipality.

    ¹[72. (New section) Notwithstanding any provisions of P.L.1991, c.431 (C.40A:20-1 et seq.) to the contrary, when an ordinance establishing or amending a tax abatement or payment in lieu of taxes pursuant to section 70 of P.L. , c. (C. ) (pending before the Legislature as this bill) has passed first reading, it shall be submitted as an application, together with all included and incorporated certificates and documents and such additional documentation as the board may by rule prescribe, to the Local Finance Board and the State Treasurer. The board shall notify the State Treasurer of its receipt of the submission.

    The board shall approve the ordinance if it determines that:

    a. the planned development is likely to be realized and would not likely be accomplished by private enterprise without the granting of the tax abatement and dedication of the payments in lieu of taxes;

    b. the pledged revenues will be sufficient to pay debt service on bonds issued to effectuate the redevelopment plan;

    c. the credit of the municipality and its ability to pay the principal of and interest on its debts and to provide essential public services will not be impaired;

    d. the realization of the proposed redevelopment plan will contribute to the economic viability of the municipality;

    e. the amount of the tax revenues abated by the municipality do not exceed the amount necessary to accomplish the purposes of the plan;

    f. the bond guarantees would not pose inappropriate risk or undue financial hardship to the taxpayers of the community in the event of default.]¹

    ¹[73. (New section) a. The board and the State Treasurer may make written recommendations as to any aspect of the financial agreement and any related fiscal matters of the municipality district which, in the determination of the board and the State Treasurer, must be changed in order to effectuate the financial agreement, and the board may condition its approval of the agreement upon the adoption of its recommendations or those of the State Treasurer.

    b. The board shall approve, approve with conditions, or disapprove the agreement within 60 days of its receipt of an application which the board has deemed to be complete. If the board does not act within 60 days the agreement shall be deemed approved. If the board disapproves the agreement it shall set forth its reasons in writing within 30 days of its disapproval. The governing body may amend the ordinance and resubmit it to the board and the State Treasurer.

    c. Upon receipt of the approved ordinance from the board the municipal governing body may adopt the ordinance at a meeting of the governing body by a majority of the authorized membership thereof. Any changes to the agreement as embodied in the ordinance shall be by amendment of the ordinance adopted and approved by the same method as prescribed in section 72 of P.L. , c. (C. ) (pending before the Legislature as this bill) in connection with the proposed financial agreement included in the ordinance.]¹

ARTICLE 3 - ABBREVIATED FORECLOSURE ¹[AND CONDEMNATION COMPENSATION]¹ PROCEEDINGS FOR ABANDONED PROPERTY

     ¹[74.] 35.¹ (New section) For the purposes of this article:

    "Abandoned property" means

    a. real property ¹[comprising a vacant parcel of land]¹ for which ³[¹substantial¹]³ environmental remediation is required by ³[the Department of Environmental Protection pursuant to]³ State law, rule or regulation³[¹, which remediation has not been substantially completed within 12 months of the order from the Department of Environmental Protection¹] and the condition of which is found or declared by the public officer to be inimical to the welfare, including the economic welfare of the residents of the municipality wherein the real property is located³; or

    b. a building or structure found or declared to be inimical to the welfare, including the economic welfare, of the residents of the municipality wherein the building or structure is located, pursuant to section 1 of P.L.1989, c.91 (C.40:48-2.3a) or unfit for human habitation, occupancy or use pursuant to section 3 of P.L.1942, c.112 (C.40:48-2.5), along with the parcel of land upon which the building or structure is situate.

    "Public officer" means a person designated or appointed by the municipal governing body pursuant to section 3 of P.L.1942, c.112 (C.40:48-2.5) who is responsible for determining that a property is abandoned.

    ¹[75.] 36.¹ (New section) a. A qualified municipality that has designated or appointed a public officer pursuant to section 3 of P.L.1942, c.112 (C.40:48-2.5), may adopt an ordinance directing the public officer to undertake an inventory of abandoned property in those areas designated ¹[by the municipality]¹ for redevelopment ¹[according to law] pursuant to the "Local Redevelopment and Housing Law," P.L.1992, c.79 (C.40A:12A-1 et seq.)¹. ¹The ordinance may direct the public officer to exclude from the inventory of abandoned property that property for which the expense to the municipality of determining the cost of environmental remediation required under State or federal law would be ecxcessive, in the judgment of the municipal governing body.¹ Each item of abandoned property on the inventory shall include the tax block and lot number, the name of the owner of record, if known, and the street address of the lot.

    b. In those municipalities in which an inventory has been conducted in accordance with subsection a. of this section, the public officer shall maintain a list of abandoned property, to be known as the "abandoned property list." An abandoned property shall not be included on the abandoned property list if rehabilitation is being performed in a timely manner. ¹[The abandoned property list also shall include those parcels, whether or not they contain buildings intended for human habitation, occupancy or use, for which the cost of environmental remediation, as would be required under the "Industrial Site Recovery Act," P.L.1983, c.330 (C.13:1K-6 et seq.), or similar State or federal statutes, would exceed the market value of the parcels if no environmental remediation was required.]¹

    c. (1) The Department of Community Affairs shall adopt rules and regulations prescribing guidelines and criteria for determining if a property is ¹[in a state of disrepair] inimical to the welfare, including the economic welfare, of the residents of the municipality wherein the building or structure is located, pursuant to section 1 of P.L.1989, c.91 (C.40:48-2.3a) or unfit for human habitation, occupancy or use pursuant to section 3 of P.L.1942, c.112 (C.40:48-2.5),¹ and whether such property is undergoing rehabilitation in a timely manner within the meaning of subsection b. of this section. The public officer shall apply such standards in conducting any inventory pursuant to this section.

    (2) The Department of Community Affairs ¹in conjunction with the Department of Environmental Protection¹ shall prepare an information bulletin for distribution to every municipality describing the authority of a municipality under existing statutes and regulations to repair, demolish or otherwise deal with abandoned property.

    d. (1) The public officer, within 10 days of the completion of the abandoned property list, shall send a notice, by certified mail, return receipt requested, and by regular mail, to the owner of record of every property included on the list and shall cause the list to be published in the official newspaper of the municipality, which publication shall constitute public notice. The published and mailed notices shall identify property determined to be abandoned ¹[by] setting forth¹ the owner of record, if known, ¹[and by] the¹ tax lot and block number and street address. The public officer, in consultation with the tax collector, shall also send out a notice by regular mail to any mortgagee, servicing organization, or property tax processing organization that receives a duplicate copy of the tax bill pursuant to subsection d. of R.S.54:4-64. When the owner of record is not known for a particular property and cannot be ascertained by the exercise of reasonable diligence by the tax collector, notice shall not be mailed but instead shall be posted on the property in the manner as provided in section 5 of P.L.1942, c.112 (C.40:48-2.7). The mailed notice shall indicate the factual basis for the public officer's finding that the property is abandoned property as that term is defined in section ¹[74] 35¹ of P.L. , c. (C. ) (now pending before the Legislature as this bill) and the rules and regulations promulgated thereunder, specifying the information relied upon in making such finding. In all cases a copy of the mailed or posted notice shall also be filed by the public officer ³[as a notice of lis pendens ¹, indexed by the name of the property owner as defendant and the name of the municipality as plaintiff,¹]³ in the office of the county clerk or register of deeds and mortgages, as the case may be, of the county wherein the property is situate. ³This filing shall have the same force and effect as a notice of lis pendens under N.J.S.2A:15-6. The notice shall be indexed by the name of the property owner as defendant and the name of the municipality as plaintiff, as though an action had been commenced by the municipality against the owner.³

    (2) The authority or its subsidiaries, as appropriate, may reimburse the municipality for the postage costs and search fees associated with providing notice in accordance with paragraph (1) of this subsection in accordance with procedures and rules promulgated by the Department of Community Affairs.

    e. An owner ¹or lienholder¹ may challenge the inclusion of his property on the abandoned property list determined pursuant to subsection b. of this section by appealing that determination to the public officer within 30 days of the owner's receipt of the certified notice or 40 days from the date upon which the notice was sent. An owner whose identity was not known to the public officer shall have 40 days from the date upon which notice was published or posted, whichever is later, to challenge the inclusion of a property on the abandoned property list. For good cause shown, the public officer shall accept a late filing of an appeal. Within 30 days of receipt of a request for an appeal of the findings contained in the notice pursuant to subsection d. of this section, the public officer shall schedule a hearing for redetermination of the matter. Any property included on the list shall be presumed to be abandoned property unless the owner, through the submission of an affidavit or certification by the property owner averring that the property is not abandoned and stating the reasons for such averment, can demonstrate that the property was erroneously included on the list. The affidavit or certification shall be accompanied by supporting documentation, such as but not limited to photographs, repair invoices, bills and construction contracts. The sole ground for appeal shall be that the property in question is not abandoned property as that term is defined in section ¹[74] 35¹ of P.L. , c. (C. ) (now pending before the Legislature as this bill). The public officer shall decide any timely filed appeal within 10 days of the hearing on the appeal and shall promptly, by certified mail, return receipt requested, and by regular mail, notify the property owner of the decision and the reasons therefore.

    f. The property owner may challenge an adverse determination of an appeal with the public officer pursuant to subsection e. of this section, by instituting, in accordance with the New Jersey Court Rules, a summary proceeding in the Superior Court, Law Division, venued in the county in which the property is located, which action shall be tried de novo. Such action shall be instituted within 20 days of the date of the notice of decision mailed by the public officer pursuant to subsection e. of this section. The sole ground for appeal shall be that the property in question is not abandoned property as that term is defined in section ¹[74] 35¹ of P.L. , c. (C. ) (now pending before the Legislature as this bill). The failure to institute an action of appeal on a timely basis shall constitute a jurisdictional bar to challenging the adverse determination, except that, for good cause shown, the court may extend the deadline for instituting the action.

    g. The public officer shall promptly remove any property from the abandoned property list that has been determined not to be abandoned on appeal.

    ¹[76.] 37.¹ (New section) a. Notwithstanding R.S.54:5-19 or the provisions of any other law to the contrary, if a property is included on the abandoned property list and the property taxes or other municipal liens due on the property are ¹[not current] delinquent six or more quarters¹ as of the date of expiration of the right to appeal inclusion on the list, ¹or, if an appeal ³[is pending] has been filed³, as of the date that all opportunities for appeal of inclusion on the list have been exhausted,¹ then the tax lien on the property may be sold in accordance with the procedures in the "tax sale law," R.S.54:5-1 et seq., on or after the 90th day following the expiration of that time of appeal ¹or final determination on an appeal, as appropriate¹. The purchaser of a tax sale certificate sold pursuant to this subsection, unless it is the municipality or the authority or its subsidiaries, shall be required to post bond to guarantee the rehabilitation of the property in accordance with the requirements for an owner to remove the property from the abandoned property list pursuant to section ¹[75] 36¹ of P.L. , c. (C. ) (pending before the Legislature as this bill). The cost of the bond posted by the purchaser of the tax sale certificate shall be added to the amount required to be paid by the owner for redemption of the property. The municipality may, at its option, require that the sale of the tax sale certificate or any subsequent assignment or transfer of a tax sale certificate held by the municipality be subject to the express condition that the purchaser or assignee shall be obliged to perform and conclude any rehabilitation or repairs necessary to remove the property from the abandoned property list pursuant to section ¹[75] 36¹ of P.L. , c. (C. ) (pending before the Legislature as this bill) and to post a bond in favor of the municipality to guarantee the rehabilitation or repair of the property. The cost of rehabilitation and repairs and the cost of the bond shall be added to the amount required to be paid by the owner for redemption of the property. The purchaser, assignee or transferee of the tax sale certificate who is required to rehabilitate and repair the property shall be required to file the appropriate affidavits with the tax collector, pursuant to R.S.54:5-62, representing the amounts of monies expended periodically toward the rehabilitation or repair of the property. A purchaser, assignee or transferee shall be entitled to interest on the amounts expended, as set forth in the affidavits, at the delinquent rate of interest for delinquencies in excess of $1,500 pursuant to R.S.54:4-67 of the municipality in effect for the time period when the amounts were expended. The tax sale certificate purchaser, assignee or transferee, under the auspices and with the authority of the municipality, shall be permitted to enter in and upon the property for the purposes of appraising the costs of rehabilitation and repair and to perform all other acts required to guarantee the completion of the rehabilitation or repair of the property. ¹No rehabilitation or repair work shall be commenced, however, until proof of adequate liability insurance and an indemnification agreement holding the municipality harmless is filed with the public officer.¹ If the tax sale certificate is not purchased at the initial auction of the tax sale certificate and the municipality purchases the certificate pursuant to R.S.54:5-34, then the municipality is authorized and empowered to convey and transfer to the authority or any of its subsidiaries, without receiving compensation therefor, all of its right, title and interest in that certificate ¹ ; however, any portion of the amount paid to the tax collector to redeem the tax sale certificate that represents tax or other municipal lien delinquencies and subsequent municipal liens, including interest, shall be returned by the tax collector to the municipality¹.

    b. (1) If the municipality or the authority or its subsidiaries acquires the tax sale certificate for a property on the abandoned property list, then, upon 10 days' written notice to the property owner and any mortgagee as of the date of the filing of the lis pendens notice under subsection d. of section ¹[75] 36¹ of P.L. , c. (C. ) (pending before the Legislature as this bill), that entity shall be permitted to enter upon the property and remediate any conditions that caused the property to be included on the abandoned property list. No remediation shall be commenced, however, if within that 10 day period the owner or mortgagee shall have notified the municipality or authority or its subsidiary, as appropriate, in writing that the owner or mortgagee has elected to perform the remediation itself. When the owner or mortgagee elects to perform the remediation itself, it shall be required to post bond in favor of the municipality or authority or its subsidiaries, as appropriate, in order to ensure performance. The amount and conditions of the bond shall be determined by the public officer.

    (2) The cost of remediation incurred by the municipality or the authority or its subsidiaries pursuant to this subsection, as so certified by the entity incurring the cost upon completion of the remediation, shall constitute a lien upon the property first in time and right to any other ³lien, whether the other lien was filed prior to, or after the filing of any lien by the municipality or the authority³ , except for municipal taxes, liens and assessments and any lien imposed pursuant to the "Spill Compensation and Control Act," P.L.1976, c.141 (C.58:10-23.11 et seq.) ¹, together with any interest thereon¹. The certification of cost shall be filed ³and recorded³ as a lien by the entity incurring the cost with the county clerk or register of deeds and mortgages, as appropriate, in the county in which the property is located.

    c. (1) Failure of an owner ¹or lienholder¹ to remove a property from the abandoned property list within 60 days after expiration of the period of time for appeal of inclusion of the property on the list pursuant to subsection ¹[c.] e.¹ of section ¹[75] 36¹ of P.L. , c. (C. ) (pending before the Legislature as this bill), shall be prima facia evidence of the intent of the owner to continue to maintain the property as abandoned property.

    (2) ¹[ Notwithstanding sections 5, 8 and 12 of P.L.1971, c.361 (C.20:3-5; 20:3-8; 20:3-12), or any other law to the contrary, the owner of property that is on the abandoned property list and that is being maintained as abandoned property pursuant to paragraph (1) of this subsection shall be deemed to have waived the appointment of commissioners to fix just compensation required to be paid by the municipality, the authority or its subsidiaries through the exercise of their power of eminent domain.] The clearance, development, redevelopment, or repair of property being maintained as an abandoned property pursuant to paragraph (1) of this subsection shall be a public purpose and public use for which the power of eminent domain may be exercised.¹

    ¹[77.] 38.¹ (New section) a. An owner may remove a property from the list of abandoned properties prior to sale of the tax sale certificate by paying all taxes and municipal liens due, including interest and penalties and:

    (1) by posting cash or a bond equal to the cost of remediating all conditions because of which the property has been ¹[deemed] determined¹ to be abandoned pursuant to section ¹[75] 36¹ of P.L.    , c. (C. ) (pending before the Legislature as this bill) and posting cash or a bond to cover the cost of any environmental cleanup required on the property, evidenced by a certification by ³[the Department of Environmental Protection] a licensed engineer retained by the owner and reviewed and approved by the public officer stating³ that the cash or bond adequately covers the cost of the cleanup; or

    (2) by demonstrating to the satisfaction of the public officer that the conditions rendering the property abandoned have been remediated in full; provided, however, that where the public officer finds that the owner is actively engaged in remediating the conditions because of which the property was ¹[deemed] determined to be¹ abandoned pursuant to section ¹[75] 36¹ of P.L. , c. (C. ) (pending before the Legislature as this bill), as evidenced by significant rehabilitation activity on the property, the public officer may grant an extension of time of not more than 120 days for the owner to complete all work, during which time no further proceedings will be taken against the owner or the property.

    b. If the owner has posted cash or a bond in order to have a property removed from the abandoned property list and the conditions because of which the property was ¹[deemed] determined to be¹ abandoned have not been fully remediated within one year of the date of posting the cash or bond, or, in the case of a property which requires ³[environmental cleanup] a remediation of any known, suspected or threatened release of contaminants³, if the ³[cleanup has not been substantially completed within one year of the date of posting the cash or bond,] owner has failed to enter into a memorandum of agreement with the Department of Environmental Protection or an administrative consent order, as the case may be, or if an agreement or order is in effect but the owner has failed to perform the remediation in conformance with the agreement or order, then³ the cash or bond shall be forfeited to the municipality which shall use the cash or bond and any interest which has accrued thereon for the purpose of demolishing or rehabilitating the property or performing the environmental ³[cleanup] remediation³. Any funds remaining after the property has been demolished, rehabilitated or cleaned up shall be returned to the owner.

    ¹[78.] 39.¹ (New section) a. ¹[Notwithstanding section 6 of P.L.1948, c.96 (C.54:5-104.34), when] When¹ a person other than the municipality or the authority or its subsidiaries acquires a tax sale certificate for a property on the abandoned property list at tax sale, the purchaser may institute an action to foreclose the right of redemption at any time after the expiration of six months following the date of ³the³ sale ³of the tax sale certificate³.

    b. Notwithstanding section 6 of P.L.1948, c.96 (C.54:5-104.34), when the municipality is the purchaser at tax sale of any property on the abandoned property list pursuant to R.S.54:5-34, or when the authority or any of its subsidiaries acquires the tax sale certificate pursuant to subsection a. of section ¹[76] 37¹ of P.L. , c. (C.         ) (pending before the Legislature as this bill), an action to foreclose the right of redemption may be instituted ¹[at any time after the expiration of 10 days following the date of sale, assignment or transfer] in accordance with the provisions of ³subsection b. of ³ R.S.54:5-77 ³[, subject to the provisions of subsection c. of this section¹]³ .

    c. After the foreclosure action is instituted, the right to redeem shall exist and continue to exist until barred by the judgment of the Superior Court; provided, however, that no redemption shall be permitted except where the owner:

    (1) posts cash or a bond equal to the cost of remediating the conditions because of which the property was ¹[deemed] determined to be¹ abandoned pursuant to section ¹[75] 36¹ of P.L. , c. (C.         ) (pending before the Legislature as this bill), as determined by the court; or

    (2) demonstrates to the court that the conditions because of which the property was ¹[deemed] determined to be¹ abandoned pursuant to section ¹[75] 36¹ of P.L. , c. (C. ) (pending before the Legislature as this bill) have been remedied in full.

    ¹[79.] 40.¹ (New section) Once a final judgment barring the right of redemption with respect to a property on the list of abandoned properties has been recorded, no court shall ¹[entertain any application to]¹ reopen such judgment at any time except on the grounds of lack of jurisdiction or fraud in the conduct of the action; in any such proceeding, the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill) shall be construed liberally in favor of the purchaser¹, assignee or transferee of the tax sale certificate¹.

    ¹[80.] 41.¹ R.S.54:5-86 is amended to read as follows:

    54:5-86. [The purchaser, his heirs or assigns, in] ¹[In addition to the remedy provided by article eight of this chapter (s. 54:5-77 et seq.), when] When¹ the municipality is the purchaser of a tax sale certificate, the municipality, or its assignee or transferee, may, at any time after the expiration of the term of 6 months from the date of sale [when the municipality is the purchaser, and 2 years from the date of sale for all other purchasers] ¹[, whether notice to redeem has been given or not]¹, institute an action to foreclose the right of redemption. ¹[For] Except as provided in subsection a. of section 39 of P.L. , c. (C. ), for¹ all other persons that do not acquire a tax sale certificate ¹[held by] from¹ a municipality, an action to foreclose the right of redemption may be instituted at any time after the expiration of the term of two years from the date of sale of the tax sale certificate. On instituting the action the right to redeem shall exist and continue until barred by the judgment of the Superior Court.

(cf: P.L.1974, c.91, s.4)

    ¹[81.] 42.¹ Section 30 of P.L.1971, c.361 (C.20:3-30) is amended to read as follows:

    30. Just compensation shall be determined as of the date of the earliest of the following events: (a) the date possession of the property being condemned is taken by the condemnor in whole or in part; (b) the date of the commencement of the action; (c) the date on which action is taken by the condemnor which substantially affects the use and enjoyment of the property by the condemnee ¹[. In the case of a property on the abandoned property list and being maintained as an abandoned property pursuant to subsection c. of section 76 of P.L   , c. (pending before the Legislature as this bill), just compensation shall be determined as of] ; or (d)¹ the date of the declaration of blight by the governing body upon a report by a planning board pursuant to section 38 of P.L.1971, c.361 (C.20:3-38), or, ¹in the case of a property being maintained as an abandoned property for failure to remove the property from the abandoned property list, as provided pursuant to subsection c. of section 37 of P.L. , c. (C. ) (pending before the Legislature as this bill),¹ if there was no declaration of blight, as of the date of expiration of the condemnee's right to appeal inclusion of the property on the abandoned property list.

(cf: P.L.1971, c.361, s.30)

     ¹43. R.S.54:5-112 is amended to read as follows:

    54:5-112. When a municipality has or shall have acquired title to real estate by reason of its having been struck off and sold to the municipality at a sale for delinquent taxes or assessments, the governing body thereof may, by resolution adopted by a majority thereof by roll call, sell such real estate at private sale to such person and for such sums, not less than the amount of municipal liens charged against the same, except as provided in subsection a. of section 38 of P.L. , c. (C. ) (pending before the Legislature as this bill), as shall seem to be to the best interest of the municipality. Upon the adoption of the resolution and the payment of the consideration as stated therein, the officers of the governing body authorized by resolution shall make, execute, acknowledge and deliver a deed without covenants to the purchaser, which deed shall vest in the purchaser all of the right, title and interest of the municipality in the real estate therein described. The deed need not contain any recitals, except a statement of the actual consideration. Such sales shall not include real estate, title to which has been perfected by the municipality.¹

(cf: R.S.54:5-112)

    ¹[82.] 44.¹ R.S.54:5-113 is amended to read as follows:

    54:5-113. When a municipality has or shall have acquired title to real estate by reason of its having been struck off and sold to the municipality at a sale for delinquent taxes and assessments, the governing body thereof may by resolution authorize a private sale of the certificate of tax sale therefor, together with subsequent liens thereon, for not less than the amount of liens charged against such real estate, except as provided in section 2 of P.L.1993, c.113 (C.54:5-113.1) and subsection a. of section ¹[77] 38¹ of P.L. , c. (C.               ) (pending before the Legislature as this bill). The sale shall be made by assignment executed by such officers as may be designated in the resolution. When the total amount of the municipal liens shall, at the time of the proposed sale or assignment, exceed the assessed value of the real estate as of the date of the last sale thereof for unpaid taxes and assessments, the certificates, together with subsequent liens thereon, may be sold and assigned for a sum not less than such assessed value.

(cf: P.L.1993, c.113, s.1)

ARTICLE 4 - NEIGHBORHOOD EMPOWERMENT PROGRAM

    ¹45. (New section) a. There is established in, but not of, the Department of Community Affairs an Urban Coordinating Council.

    b. The Urban Coordinating Council shall be comprised of the Governor, the chief officer of each department of the executive branch, and the executive directors of the New Jersey Redevelopment Authority, the New Jersey Economic Development Authority, the Casino Reinvestment Development Authority, the State Planning Commission, the New Jersey Housing and Mortgage Finance Agency, the Juvenile Justice Commission and the Commission on Higher Education. The council shall be chaired by the Governor. Members of the council may be represented on the council by their designees.¹

     ¹46. (New section) The Urban Coordinating Council shall:

    a. Ensure that State agencies coordinate responses and provide assistance to projects and programs outlined in neighborhood empowerment plans developed pursuant to section 49 of P.L. , c. (C. ) (pending before the Legislature as this bill), and projects and programs established by the New Jersey Redevelopment Authority, the New Jersey Economic Development Authority, and development initiatives proposed by municipal and county governments, including making available the resources of the departments of the State in implementing those programs;

    b. Supervise and control the Office of Neighborhood Empowerment created pursuant to section 48 of P.L. , c. (C. ) (pending before the Legislature as this bill; 

    c. Make available the resources of its member agencies to assist local sponsors in implementing neighborhood empowerment plans;

    d. Form interagency teams of State representatives. The membership of each interagency team shall be determined by the needs outlined in the neighborhood empowerment plan. Each interagency team shall serve as the primary link between the neighborhood and State government in responding to programming needs, shall be co-chaired by a case manager from the Office of Neighborhood Empowerment established pursuant to section 48 of P.L. , c. (C.    ) (pending before the Legislature as this bill); and by the community director, and shall include at least one representative of the council; and

    e. Have authority to adopt, amend and repeal rules relating to the exercise by the council and the Office of Neighborhood Empowerment established pursuant to section 48 of P.L. , c. (C. ) (pending before the Legislature as this bill), of their respective functions and duties pursuant to this act;

    f. Publish an annual report on the status of redevelopment activity which shall describe the progress toward achieving the goals of this act; and

    g. Assist in coordinating the activities of the New Jersey Redevelopment Authority, municipalities, counties, public or private county and municipal development agencies, district management corporations created pursuant to section 4 of P.L.1972, c.134 (C.40:56-68), and community action boards established pursuant to section 4 of P.L.1991, c.51 (C.52:27D-398) that have developed neighborhood empowerment plans pursuant to section 49 of P.L. , c. (C. ) (pending before the Legislature as this bill) or comprehensive community development plans.¹

    ¹47. (New section) a. There is established in, but not of, the Department of Community Affairs an Office of Neighborhood Empowerment.

    b. The Governor shall appoint an executive director of the Office of Neighborhood Empowerment who shall serve at the pleasure of the Governor. The executive director shall report solely to the Urban Coordinating Council, which shall supervise and control the office.

    c. The executive director of the Office of Neighborhood Empowerment may hire employees as may be required to carry out the purposes of this section, and to fix and pay their compensation from funds available, all without regard to the provisions of Title 11A, Civil Service, of the New Jersey Statutes.¹

    ¹48. (New section) The Office of Neighborhood Empowerment shall:

    a. Provide support for a community director who shall assist local sponsors in developing or implementing neighborhood empowerment plans;

    b. Provide case management services to qualified local sponsors of neighborhood empowerment plans;

    c. Assist neighborhoods in developing and implementing neighborhood empowerment plans;

    d. Ensure that communities receive technical assistance in neighborhood planning;

    e. Train and provide administrative support for interagency teams;

    f. Assist local sponsors in evaluating progress through mutually agreed upon measures;

    g. Provide assistance in obtaining private sector support for developing and implementing neighborhood empowerment plans;

    h. Maintain and make available a complete inventory of State programs, services and funding that are available to municipalities; and

    i. Enter into partnerships with qualified local sponsors.¹

     ¹49. (New section) ³a.³ In order to qualify to receive the services of the Office of Neighborhood Empowerment and of an interagency team, a community must first have developed a neighborhood empowerment plan which shall be submitted to the Urban Coordinating Council established pursuant to section 45 of P.L. , c. (C. ) (pending before the Legislature as this bill). A neighborhood empowerment plan shall incorporate and address the needs of the neighborhood as identified by the community. It shall be comprehensive and shall take into consideration and show the relationship to the municipal master plan, other locally adopted plans (including, but not limited to urban enterprise zone plans, redevelopment plans and neighborhood social service plans), and the State Development and Redevelopment Plan, and shall outline how residents, municipal government, the private sector and neighborhood organizations will cooperate with the State and with each other during implementation. Neighborhood empowerment plans shall focus on neighborhood restoration. They may include, but need not be limited to, projects for infrastructure improvement and expansion, rehabilitation and construction of affordable housing, increased public safety, facility rehabilitation and construction, economic development, recreation and open space, environmental cleanup, employment and training, improvement of educational opportunities for youth, and efficient and humane provision of social services dedicated to strengthening the community's human capital.¹

    ³b. Neighborhood empowerment plans shall be developed by local sponsors with the guidance of a community director and under the direction of, and with the participation of, residents, community-based organizations, the private sector, and the municipal government. A local sponsor may be a municipality, county, public or private county and municipal development agency, district management corporation created pursuant to section 4 of P.L.1972, c.134 (C.40:56-68), community action board established pursuant to section 4 of P.L.1991, c.51 (C.52:27D-398), sponsors of neighborhood empowerment organizations, or an institution, such as a hospital, college or university, or a community-based organization.

    The entity that will implement the neighborhood empowerment plan shall be either a new or existing community development organization or a consortium of existing community based organizations.³

    ¹[83.] 50¹ (New section) ¹[a.]¹ Within one year of the effective date of P.L.   , c. (C. ) (pending before the Legislature as this bill), the ¹[New Jersey Redevelopment Authority] Urban Coordinating Council established pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill),¹ shall distribute to the clerk of each qualified municipality eligibility guidelines for participation in the neighborhood empowerment program. The eligibility guidelines ²for participation in the neighborhood empowerment program ² shall be established by the ¹[authority but shall require the approval of the]¹ Urban ¹[Policy]¹ Coordinating Council established pursuant to section ¹[7] 46¹ of P.L. c. (C. ) (pending before the Legislature as this bill) ¹[prior to being issued] in consultation ² and in conjunction² with the New Jersey Redevelopment Authority¹.

    ¹[b. In order to be eligible for priority consideration by the authority in designating empowerment neighborhoods, a qualified municipality shall demonstrate, to the satisfaction of the authority, that the municipality is willing to forgive back taxes on properties which are currently tax delinquent in order to allow for a sale to a new owner who demonstrates, to the satisfaction of the municipality, that the property is to be part of a redevelopment plan. In adopting such a tax forgiveness policy, a municipality may establish whatever safeguards are necessary to ensure that the new owner is in no way associated with the previous owner who incurred the tax liability and may also adopt an ordinance providing for reimbursement by a redeveloper for taxes foregone and penalties if the new owner does not redevelop the property within such period of time as is specified in the ordinance. Such a policy may only be adopted by a municipality if in the determination of the municipality or the authority, the property on which taxes are forgiven would not be redeveloped without public intervention.]¹

    ¹[84. (New section) Before applying for participation in the neighborhood empowerment program, the municipal governing body shall cause a preliminary comprehensive plan to be formulated, either by the planning board or the governing body, with the assistance of those officers and agencies of the municipality as the governing body shall designate. The preliminary comprehensive plan shall set forth the boundaries of the proposed empowerment neighborhood, findings of fact concerning the economic and social conditions existing in the area proposed for an empowerment neighborhood, and the municipality's policy and intentions for addressing those conditions and shall include a statement of:

    a. how existing powers granted to the municipality by law will be utilized to further economic development;

    b. how State moneys and other assistance made available by the authority will be utilized to further economic revitalization goals;

    c. how public participation was elicited in preparing the comprehensive plan, including local associations and voluntary community organizations supported by residents and businesses in the empowerment neighborhood;

    d. how planning and zoning laws will be utilized to enhance the attractiveness of the empowerment neighborhood to potential developers;

     e. what infrastructure needs exist within the empowerment neighborhood and State participation which needs to be secured in order to promote economic activity;

    f. an inventory of sites in the empowerment neighborhood which require any environmental cleanup;

    g. proposed projects which may be initiated or advanced with authority assistance; and

    h. the availability and efficiency of support services, public and private, generally used by and necessary to the efficient functioning of commercial and industrial facilities in the area and the extent to which the increase or improvement is to be provided and financed by the municipal government or by other entities.]¹

    ¹[85.] 51.¹ (New section) In designating qualified municipalities for participation in the neighborhood empowerment program, the ¹Urban Coordinating Council in consultation ³and in conjunction³ with the¹ authority shall accord preference to ¹[comprehensive] neighborhood empowerment¹ plans which:

    a. have the greatest potential for success in stimulating primarily new economic activity in the area;

    b. are designed to address the greatest degree of urban distress, as measured by existing levels of unemployment¹[,] and¹ poverty¹[, and property tax arrearages]¹;

    c. demonstrate the most substantial and reliable commitments of resources by empowerment neighborhood businesses, associations, voluntary community organizations and other private entities to the ¹[economic success] successful redevelopment¹ of the empowerment neighborhood;

    d. demonstrate the most substantial effort and commitment by the municipality to encourage economic activity in the area and to remove disincentives for job creation compatible with the fiscal condition of the municipality; and

    e. demonstrate most convincingly ¹[to the authority]¹ how the proposed plan will increase jobs ¹for neighborhood residents¹ and ratables in the neighborhood, thereby lessening the need for municipal tax increases.

    ¹[86.] 52.¹ (New section) In addition to the considerations set forth in section ¹[85] 51¹ of P.L. , c. (C. ) (pending before the Legislature as this bill), the ¹Urban Coordinating Council in consultation ³and in conjunction³ with the¹ authority in evaluating a ¹[comprehensive] neighborhood empowerment¹ plan for designation purposes shall consider:

    a. the likelihood of attracting other State or federal assistance or both to projects in the designated area;

    b. the adverse or beneficial effects of an empowerment neighborhood located at the proposed area upon economic development activities or projects of State or other public agencies which are in operation or are approved for operation in the qualified municipality;

    c. the degree of commitment made by public and private entities to utilize minority contractors and assure equal opportunities for employment in connection with any construction or reconstruction to be undertaken in the eligible area;

    d. the impact of the ¹[comprehensive]¹ plan upon the social, educational, natural and historic environment of the proposed empowerment neighborhood; and

     e. the degree to which the implementation of the plan involves the relocation of residents from the proposed empowerment neighborhood and the adequacy of commitments and provisions with respect thereto.

    ¹[87.] 53.¹ (New section) ¹[Any qualified municipality may designate any area set forth in the comprehensive plan as an empowerment neighborhood.]¹ Upon receipt of an application from a qualified municipality, the ¹Urban Coordinating Council in consultation ³and in conjunction³ with the¹ authority shall review the application to determine whether or not it meets the ¹[minimum criteria] eligibility guidelines¹ established pursuant to ¹[subsection b. of]¹ section ¹[83] 50¹ of P.L. , c. (C. ) (pending before the Legislature as this bill). The ¹[authority] Urban Coordinating Council¹ shall complete its review within 90 days of receiving an application, but may extend this time period by an additional 60 days if necessary.

    ¹[88.] 54.¹ (New section) a. Once the ¹Urban Coordinating Council in consultation ²and in conjunction² with the¹ authority has identified those qualified municipalities whose ¹[comprehensive] neighborhood empowerment¹ plans fulfill the criteria for designation set forth in sections ¹[83 and 84] 51 and 52¹ of P.L. , c. (C.           ) (pending before the Legislature as this bill), the ¹[authority shall] Urban Coordinating Council may, at its discretion,¹ hold public hearings for the purpose of receiving public comments on the applications. ¹[At] In the event that a hearing is to be conducted, at¹ least one public hearing shall be held in a municipality which has applied for empowerment neighborhood designation. The ¹[authority] Urban Coordinating Council¹ shall give at least 30 days' public notice of each hearing in advertisements in at least two newspapers which circulate in the area served by the hearing and at least 30 days' notice to the governing body and planning board of each county and municipality in the area served by the hearing.

    b. Taking full account of the testimony presented at the public hearings, the   ¹Urban Coordinating Council in consultation ²and in conjunction² with the¹ authority shall make a determination regarding the designation of empowerment neighborhoods within 30 days of the final hearing.

    c. The ¹Urban Coordinating Council in consultation ² and in conjunction² with the¹ authority shall designate as many empowerment neighborhoods as possible given available financial resources and the ability of the ¹[authority] Urban Coordinating Council¹ to oversee project implementation. The application process for each application cycle, including the public hearings, shall occur as set forth in this section.

    ¹[89.] 55.¹ (New section) ¹a.¹ Any municipality in which an empowerment neighborhood has been designated shall be eligible for investments by the authority from the New Jersey Redevelopment Investment Fund in infrastructure improvements and any other projects which the authority may choose to invest in ²[; however, the authority shall give priority to financing projects in empowerment neighborhoods]². ¹[The authority shall accord priority to empowerment neighborhoods in allocating any moneys for code enforcement or demolition activites. In addition, the following powers may be exercised in empowerment neighborhoods:

    a. Notwithstanding the provisions of the "Local Lands and Buildings Law," P.L.1971, c.199 (C.40A:12-1 et seq.) or any other law to the contrary, the authority may convey property acquired by the authority to a private developer for nominal consideration in connection with a project approved by the authority;

    b. Any person who owns or has acquired property in a designated empowerment neighborhood which is the site of a hazardous substance discharge, and did not discharge the hazardous substance and who was in no way responsible for or associated with the actions which caused the initial discharge, and would, except for the provisions of this section, be liable for cleanup and removal costs pursuant to section 8 of P.L.1976, c.141 (C.58:10-23.11g), shall not be required to pay cleanup and removal costs greater than 133% of the appraised value of the property subject to the cleanup and removal if that property has been transferred to the property owner subsequent to having been acquired by the municipality or the authority through the accelerated foreclosure process and is to be redeveloped as part of a project undertaken by or in association with the authority. The difference between the cost of the cleanup and removal and the cost allocated to the property owner shall be paid from any funds made available for the cleanup and removal pursuant to sections 27 or 28 of P.L.1993, c.139 (C.58:10B-5 or C.58:10B-6), the New Jersey Redevelopment Investment Fund established pursuant to section 34of P.L. , c. (C.    ) (pending before the Legislature as this bill) or from other persons liable pursuant to section 8 of P.L.1976, c.141 (C.58:10-23.11g). Nothing in this subsection shall afford a property owner or the authority a higher priority to receive funding from the Hazardous Discharge Site Remediation Fund than would otherwise be the case. Any person who owns or has acquired property in a designated empowerment neighborhood and whose liability for cleanup costs has been limited to 133% of appraised value pursuant to this subsection may not make a claim from the New Jersey Spill Compensation Fund for any cleanup or removal costs or for any direct or indirect damages pursuant to the provisions of P.L.1976, c.141 (C.58:10-23.11 et seq.). This limitation on the right to make a claim against the New Jersey Spill Compensation Fund shall not affect the right of any other person, except the property owner, to make such a claim against the fund. The limit on liability provided in this section shall apply on a per property basis even if more than one person has acquired the property.

    The authority shall, to the extent possible, make funds available on the same basis to persons situated in a qualified municipality in which a designated empowerment neighborhood is located, but outside neighborhood boundaries.

    c. Notwithstanding any other law to the contrary, any person who owns or has acquired property in a designated empowerment neighborhood which is the site of a hazardous discharge, and did not discharge the hazardous substance and who was in no way responsible for or associated with the actions which caused the initial discharge, shall only be required to perform those cleanup and removal actions that are necessary to make the property safe for its intended use. The property owner shall not be required to perform any additional cleanup or removal actions on that property and that property owner shall not be liable in any civil, criminal, or administrative action for any damages caused to any other person due to the existence of any hazardous substance on or off-site that the property owner was not required to clean up or remove pursuant to this section. In making the property safe for its intended use the property owner shall comply with the remediation standards, remedial actions, limitations on the use of the property, and any other conditions as may be required pursuant to sections 35 and 36 of P.L.1993, c.139 (C.58:10B-12 and C.58:10B-13). In addition, if the owner of the property proposes to change the use of the property, notice shall be given to the enforcing agency pursuant to P.L.1975, c.217 (C.52:27D-119 et seq.). The enforcing agency may only issue a certificate of occupancy to use the property in the manner in which the change of use is intended if that use is consistent with the restrictions on the use of that property as required pursuant to section 36 of P.L.1993, c.139 (C.58:10B-13).

    d. Whenever grant money is provided for a cleanup and removal from the Hazardous Discharge Remediation Fund or the New Jersey Redevelopment Investment Fund pursuant subsection b. of this section, a lien for 50% of the amount of any grant monies expended from either fund shall attach against the property once it is conveyed to another person from the authority or municipality. The lien shall expire after five years if the person maintains ownership of that property. If the property is sold prior to the five year period the amount of the lien shall become due and shall be repaid to the fund from which the grant was made.]

    b. State programs shall give consideration to projects included in neighborhood empowerment plans developed pursuant to section of P.L. , c. (C. ) (pending before the Legislature as this bill), or community development plans, as far as practicable.¹

ARTICLE 5 - URBAN SITE REMEDIATION STANDARDS

    ¹[90. (New section) a. If the Department of Environmental Protection issues a no further action letter or approves a remedial action workplan, for a discharge which occurred prior to or after the effective date of this act, then any person who is not otherwise liable for the discharge shall not be liable for the discharge based solely on becoming an owner or operator of the site of the discharge within an empowerment neighborhood designated pursuant to section 88 of P.L.    , c. (C. )(pending before the Legislature as this bill), after the discharge has occurred. The provisions of this section shall only apply when the person is in compliance with all of the conditions of the no further action letter or is in compliance with the remedial action workplan; and the person has maintained all applicable engineering and institutional controls.

    b. The fund established pursuant to the "Spill Compensation and Control Act," P.L.1976, c.141 (C.58:10-23.11 et seq.), shall not be liable for any damages incurred by any person who is relieved from liability pursuant to this section.]¹

    ¹56. Section 8 of P.L.1976, c.141 (C.58:10-23.11g) is amended to read as follows:

    8. a. The fund shall be strictly liable, without regard to fault, for all cleanup and removal costs and for all direct and indirect damages no matter by whom sustained, including but not limited to:

    (1) The cost of restoring, repairing, or replacing any real or personal property damaged or destroyed by a discharge, any income lost from the time such property is damaged to the time such property is restored, repaired or replaced, and any reduction in value of such property caused by such discharge by comparison with its value prior thereto;

    (2) The cost of restoration and replacement, where possible, of any natural resource damaged or destroyed by a discharge;

    (3) Loss of income or impairment of earning capacity due to damage to real or personal property, including natural resources destroyed or damaged by a discharge; provided that such loss or impairment exceeds 10% of the amount which claimant derives, based upon income or business records, exclusive of other sources of income, from activities related to the particular real or personal property or natural resources damaged or destroyed by such discharge during the week, month or year for which the claim is filed;

    (4) Loss of tax revenue by the State or local governments for a period of one year due to damage to real or personal property proximately resulting from a discharge;

    (5) Interest on loans obtained or other obligations incurred by a claimant for the purpose of ameliorating the adverse effects of a discharge pending the payment of a claim in full as provided by this act.

    b. The damages which may be recovered by the fund, without regard to fault, subject to the defenses enumerated in subsection d. of this section against the owner or operator of a major facility or vessel, shall not exceed $50,000,000.00 for each major facility or $150.00 per gross ton for each vessel, except that such maximum limitation shall not apply and the owner or operator shall be liable, jointly and severally, for the full amount of such damages if it can be shown that such discharge was the result of (1) gross negligence or willful misconduct, within the knowledge and privity of the owner, operator or person in charge, or (2) a gross or willful violation of applicable safety, construction or operating standards or regulations. Damages which may be recovered from, or by, any other person shall be limited to those authorized by common or statutory law.

    c. (1) Any person who has discharged a hazardous substance, or is in any way responsible for any hazardous substance, shall be strictly liable, jointly and severally, without regard to fault, for all cleanup and removal costs no matter by whom incurred. Such person shall also be strictly liable, jointly and severally, without regard to fault, for all cleanup and removal costs incurred by the department or a local unit pursuant to subsection b. of section 7 of P.L.1976, c.141 (C.58:10-23.11f).

    (2) In addition to the persons liable pursuant to paragraph (1) of this subsection, in the case of a discharge of a hazardous substance from a vessel into the waters of the State, the owner or operator of a refinery, storage, transfer, or pipeline facility to which the vessel was en route to deliver the hazardous substance who, by contract, agreement, or otherwise, was scheduled to assume ownership of the discharged hazardous substance, and any other person who was so scheduled to assume ownership of the discharged hazardous substance, shall be strictly liable, jointly and severally, without regard to fault, for all cleanup and removal costs if the owner or operator of the vessel did not have the evidence of financial responsibility required pursuant to section 2 of P.L.1991, c.58 (C.58:10-23.11g2).

    Where a person is liable for cleanup and removal costs as provided in this paragraph, any expenditures made by the administrator for that cleanup and removal shall constitute a debt of that person to the fund. The debt shall constitute a lien on all property owned by that person when a notice of lien identifying the nature of the discharge and the amount of the cleanup, removal and related costs expended from the fund is duly filed with the clerk of the Superior Court. The clerk shall promptly enter upon the civil judgment or order docket the name and address of the liable person and the amount of the lien as set forth in the notice of lien. Upon entry by the clerk, the lien, to the amount committed by the administrator for cleanup and removal, shall attach to the revenues and all real and personal property of the liable person, whether or not that person is insolvent.

    For the purpose of determining priority of this lien over all other claims or liens which are or have been filed against the property of an owner or operator of a refinery, storage, transfer, or pipeline facility, the lien on the facility to which the discharged hazardous substance was en route shall have priority over all other claims or liens which are or have been filed against the property. The notice of lien filed pursuant to this paragraph which affects any property of a person liable pursuant to this paragraph other than the property of an owner or operator of a refinery, storage, transfer, or pipeline facility to which the discharged hazardous substance was en route, shall have priority from the day of the filing of the notice of the lien over all claims and liens filed against the property, but shall not affect any valid lien, right, or interest in the property filed in accordance with established procedure prior to the filing of a notice of lien pursuant to this paragraph.

    To the extent that a person liable pursuant to this paragraph is not otherwise liable pursuant to paragraph (1) of this subsection, or under any other provision of law or under common law, that person may bring an action for indemnification for costs paid pursuant to this paragraph against any other person who is strictly liable pursuant to paragraph (1) of this subsection.

    Nothing in this paragraph shall be construed to extend or negate the right of any person to bring an action for contribution that may exist under P.L.1976, c.141, or any other act or under common law.        d. (1) In addition to those defenses provided in this subsection, an act or omission caused solely by war, sabotage, or God, or a combination thereof, shall be the only defenses which may be raised by any owner or operator of a major facility or vessel responsible for a discharge in any action arising under the provisions of this act.

    (2) A person, including an owner or operator of a major facility, who owns real property acquired after the effective date of P.L.1993, c.139 (C.13:1K-9.6 et al.), on which there has been a discharge, shall be considered a person in any way responsible for the discharged hazardous substance pursuant to subsection c. of this section, unless that person can establish by a preponderance of the evidence that all of the following apply:

    (a) the person acquired the real property after the discharge of that hazardous substance at the real property;

    (b) (i) at the time the person acquired the real property, the person did not know and had no reason to know that any hazardous substance had been discharged at the real property, or (ii) the person acquired the real property by devise or succession, except that any other funds or property received by that person from the deceased real property owner who discharged a hazardous substance or was in any way responsible for a hazardous substance, shall be made available to satisfy the requirements of P.L.1976, c.141;

    (c) the person did not discharge the hazardous substance and is not in any way responsible for the hazardous substance; and

    (d) the person gave notice of the discharge to the department upon actual discovery of that discharge.

    To establish that a person had no reason to know that any hazardous substance had been discharged for the purposes of this paragraph (2), the person must have undertaken, at the time of acquisition, all appropriate inquiry into the previous ownership and uses of the property. For the purposes of this paragraph (2), all appropriate inquiry shall mean the performance of a preliminary assessment, and site investigation (if the preliminary assessment indicates that a site investigation is necessary), as defined in section 23 of P.L.1993, c.139 (C.58:10B-1), and performed in accordance with rules and regulations promulgated by the departmentdefining these terms.

    Nothing in this paragraph (2) shall be construed to alter liability of any person who acquired real property prior to the effective date of P.L.1993, c.139 (C.13:1K-9.6 et al.).

    (3) Notwithstanding the provisions of paragraph (2) of this subsection to the contrary, if a person who owns real property obtains actual knowledge of a discharge of a hazardous substance at the real property during the period of that person's ownership and subsequently transfers ownership of the property to another person without disclosing that knowledge, the transferor shall be strictly liable for the cleanup and removal costs of the discharge and no defense under this subsection shall be available to that person.

    (4) Any federal, State, or local governmental entity which acquires ownership of real property through bankruptcy, tax delinquency, abandonment, escheat, eminent domain, condemnation or any circumstance in which the government involuntarily acquires title by virtue of its function as sovereign, shall not be liable for the cleanup and removal costs of any discharge which occurred or began prior to that ownership. This paragraph shall not apply to any federal, State or local governmental entity which has caused or contributed to the discharge of a hazardous substance.

    e. (1) If the Department of Environmental Protection issues a no further action letter or approves a remedial action workplan after the effective date of ³[this act] P.L. , c. (C. ) (pending before the Legislature as this bill)³ for a site at which a discharge occurred prior to or after the effective date of ³[this act] P.L. c. (C. ) (pending before the Legislature as this bill)³ , then any person who is not otherwise liable ²[to the State]² for any discharge at the site which occurred prior to the department's approval of the no further action letter or remedial action workplan shall not be liable for the discharge based solely on that person becoming an owner or operator of the site of the discharge after the discharge has occurred. For the purposes of this ³[section] paragraph³, a site shall constitute the real property defined in the remedial action workplan or, if no remedial action workplan is required, the no further action letter. The provisions of this ³[section] paragraph³ shall only apply when the site is located in a qualified municipality as defined pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill) and there is continued compliance with all of the conditions of the no further action letter, the remedial action workplan and all applicable engineering and institutional controls.

    (2) The fund established pursuant to the "Spill Compensation and Control Act," P.L.1976, c.141 (C.58:10-23.11 et seq.), shall not be liable for any damages incurred by any person who is relieved from liability pursuant to this ³[section] subsection³.¹

(cf: P.L.1993, c.139, s.44)

    ¹57. (New section) a. ³[When] Where³ a person who is performing a remediation on real property located in a qualified municipality, as defined by section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill) and who has entered into a memorandum of agreement with the department, subsequently submits to the department documents relating to the remediation of that property, the department shall:

    (1) review those documents in a timely fashion and provide approval, disapproval or conditional approval, as required by section 58 of P.L. , c. (C. ) (pending before the Legislature as this bill), and

    (2) provide in writing to that person a document detailing the basis for any disapproval or conditional approval.

    b. Where a person who is performing a remediation on real property located in a qualified municipality, as defined by section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill) and who has entered into a memorandum of agreement with the department, subsequently submits to the department a remedial action workplan which proposes innovative technologies, the department shall:

    (1) review the remedial action workplan in a timely fashion and provide approval, disapproval or conditional approval, as required by section 58 of P.L. , c. (C. ) (pending before the Legislature as this bill), and

    (2) provide in writing to that person a document detailing the basis for any disapproval or conditional approval.¹

    ¹[91. Section 35 of P.L.1993, c.139 (C.58:10B-12) is amended to read as follows:

    35. a. The Department of Environmental Protection [and Energy] shall adopt minimum remediation standards for soil, groundwater, and surface water quality necessary for the remediation of contamination of real property. The remediation standards shall be developed to ensure that the potential for harm to public health and safety and to the environment is minimized to acceptable levels, taking into consideration the location, the surroundings, the intended use of the property, the potential exposure to the discharge, and the surrounding ambient conditions, whether naturally occurring or man-made.

    Until the minimum remediation standards for the protection of public health and safety as described herein are adopted, the department shall apply public health and safety remediation standards for contamination at a site on a case-by-case basis based upon the considerations and criteria enumerated in this section.

    The department shall not propose or adopt remediation standards protective of the environment pursuant to this section, except standards for groundwater or surface water, until recommendations are made by the Environment Advisory Task Force created pursuant to section 37 of P.L.1993, c.139. Until the Environment Advisory Task Force issues its recommendations and the department adopts remediation standards protective of the environment as required by this section, the department shall continue to determine the need for and the application of remediation standards protective of the environment on a case-by-case basis in accordance with the guidance and regulations of the United States Environmental Protection Agency pursuant to the "Comprehensive Environmental Response, Compensation and Liability Act of 1980," 42 U.S.C. §9601 et seq. and other statutory authorities as applicable.

    b. In developing minimum remediation standards the department shall:  

    (1) base the standards on generally accepted and peer reviewed scientific evidence or methodologies;

    (2) base the standards upon reasonable assumptions of exposure scenarios as to amounts of contaminants to which humans or other receptors will be exposed, when and where those exposures will occur, and the amount of that exposure;

    (3) avoid the use of redundant conservative assumptions. The department shall avoid the use of redundant conservative assumptions by the use of parameters that provide an adequate margin of safety and which avoid the use of unrealistic conservative exposure parameters and which guidelines make use of the guidance and regulations for exposure assessment developed by the United States Environmental Protection Agency pursuant to the "Comprehensive Environmental Response, Compensation, and Liability Act of 1980," 42 U.S.C. §9601 et seq. and other statutory authorities as applicable; and

    (4) where feasible, establish the remediation standards as numeric or narrative standards setting forth acceptable levels or concentrations for particular contaminants.

    c. (1) The department shall develop residential and nonresidential soil remediation standards that are protective of public health and safety. For contaminants that are mobile and transportable to groundwater, the residential and nonresidential soil remediation standards shall be protective of groundwater and surface water. Residential soil remediation standards shall be set at levels or concentrations of contamination for real property based upon the use of that property for residential or similar uses and which will allow the unrestricted use of that property without exceeding a health risk level greater than that provided in subsection d. of this section. Nonresidential soil remediation standards shall be set at levels or concentrations of contaminants that recognize the lower likelihood of exposure to contamination on property that will not be used for residential or similar uses. Whenever real property is remediated to a nonresidential soil remediation standard, except as otherwise provided in paragraph (3) of subsection g. of this section, the department shall require, pursuant to section 36 of P.L.1993, c.139 (C.58:10B-13), that the use of the property be restricted to nonresidential or other uses compatible with the extent of the contamination of the soil and that access to that site be restricted in a manner compatible with the allowable use of that property.

    (2) The department may develop differential remediation standards for surface water or groundwater that take into account the current, planned, or potential use of that water in accordance with the "Clean Water Act" (33 U.S.C. §1251 et seq.) and the "Water Pollution Control Act," P.L.1977, c.74 (C.58:10A-1 et seq.).

     d. In developing minimum remediation standards intended to be protective of public health and safety, the department shall identify the hazards posed by a contaminant to determine whether exposure to that contaminant can cause an increase in the incidence of an adverse health effect and whether the adverse health effect may occur in humans. The department shall set minimum soil remediation standards for both residential and nonresidential uses that:

    (1) for human carcinogens, as categorized by the United States Environmental Protection Agency, will result in an additional cancer risk of one in one million;

    (2) for noncarcinogens, will limit the Hazard Index for any given effect to a value not exceeding one.

    The health risk levels established in this subsection are for any particular contaminant and not for the cumulative effects of more than one contaminant at a site.

    e. Remediation standards and other requirements established pursuant to this section shall apply to remediation activities required pursuant to the "Spill Compensation and Control Act," P.L.1976, c.141 (C.58:10-23.11 et seq.), the "Water Pollution Control Act," P.L.1977, c.74 (C.58:10A-1 et seq.), P.L.1986, c.102 (C.58:10A-21 et seq.), the "Industrial Site Recovery Act," P.L.1983, c.330 (C.13:1K-6 et al.), the "Solid Waste Management Act (1970)," P.L.1970, c.39 (C.13:1E-1 et seq.), the "Comprehensive Regulated Medical Waste Management Act," P.L.1989, c.34 (C.13:1E-48.1 et seq.), the "Major Hazardous Waste Facilities Siting Act," P.L.1981, c.279 (C.13:1E-49 et seq.), the "Sanitary Landfill Facility Closure and Contingency Fund Act," P.L.1981, c.306 (C.13:1E-100 et seq.), the "Regional Low-Level Radioactive Waste Disposal Facility Siting Act," P.L.1987, c.333 (C.13:1E-177 et seq.), or any other law or regulation by which the State may compel a person to perform remediation activities on contaminated property. However, nothing in this subsection shall be construed to limit the authority of the department to establish discharge limits for pollutants or to prescribe penalties for violations of those limits pursuant to the "Water Pollution Control Act," P.L.1977, c.74 (C.58:10A-1 et seq.), or to require the complete removal of nonhazardous solid waste pursuant to law.

    f. (1) A person performing a remediation of contaminated real property, in lieu of using the established minimum soil remediation standard for either residential use or nonresidential use adopted by the department pursuant to subsection c. of this section, may submit to the department a request to use an alternative residential use or nonresidential use soil remediation standard. The use of an alternative soil remediation standard shall be based upon site specific factors which may include (1) physical site characteristics which may vary from those used by the department in the development of the soil remediation standards adopted pursuant to this section; or (2) a site specific risk assessment. If a person performing a remediation requests to use an alternative soil remediation standard based upon a site specific risk assessment, that person shall demonstrate to the department that the requested deviation from the risk assessment protocol used by the department in the development of soil remediation standards pursuant to this section is consistent with the guidance and regulations for exposure assessment developed by the United States Environmental Protection Agency pursuant to the "Comprehensive Environmental Response, Compensation, and Liability Act of 1980," 42 U.S.C. §9601 et seq. and other statutory authorities as applicable. A site specific risk assessment may consider exposure scenarios and assumptions that take into account the form of the contaminant present, natural biodegradation, fate and transport of the contaminant, and available toxicological data that are based upon generally accepted and peer reviewed scientific evidence or methodologies.

    Upon a determination by the department that the requested alternative remediation standard is protective of public health and safety, as established in subsection d. of this section, and protective of the environment pursuant to subsection a. of this section, the alternative residential use or nonresidential use soil remediation standard shall be approved by the department.

    (2) The department may, upon its own initiative, require an alternative remediation standard for a particular contaminant for a specific real property site, in lieu of using the established minimum residential use or nonresidential use soil remediation standard adopted by the department for a particular contaminant pursuant to this section. The department may require an alternative remediation standard pursuant to this paragraph upon a determination by the department, based on the weight of the scientific evidence, that due to specific physical site characteristics of the subject real property, the use of the adopted residential use or nonresidential use soil remediation standards would not be protective of public health or safety or of the environment, as appropriate.

    g. The development, selection, and implementation of any remediation standard or remedial action shall ensure that it is protective of public health, safety, and the environment, as applicable, as provided in this section. In determining the appropriate remedial action that shall occur at a site in order to meet the established remediation standards, the department, or any person performing the remediation, shall base its decision on the following factors:

    (1) Permanent and nonpermanent remedies shall be allowed except that permanent remedies shall be preferred over nonpermanent remedies for remedial actions;

    (2) Contamination may, upon the department's approval, be left onsite at levels or concentrations that exceed the minimum soil remediation standards for residential use or nonresidential use if the implementation of institutional or engineering controls at that site will result in the protection of public health, safety and the environment at the risk level established in subsection d. of this section and if the requirements established in subsections a., b., c. and d. of section 36 of P.L.1993, c.139 (C.58:10B-13) are met;

    (3) Real property on which there is soil that has not been remediated to the residential soil remediation standards, or real property on which the soil, groundwater, or surface water has been remediated to meet the required health risk level by the use of engineering or institutional controls, may be developed or used for residential purposes, or for any other similar purpose, if (a) all areas of that real property at which a person may come into contact with soil are remediated to meet the residential soil remediation standards and (b) it is clearly demonstrated that for all areas of the real property, other than those described in subparagraph (a) above, engineering and institutional controls can be implemented and maintained on the real property sufficient to meet the health risk level as established in subsection d. of [this] section 35 of P.L.1993, c.139 (C.58:10B-12);

    (4) Remediation shall not be required beyond the regional natural background levels for any particular contaminant. The department shall develop regulations that set forth a process to identify background levels of contaminants for a particular region. For the purpose of this paragraph "regional natural background levels" means the concentration of a contaminant consistently present in the environment of the region of the site and which has not been influenced by localized human activities;

    (5) Remediation shall not be required of the owner or operator of real property for contamination coming onto the site from another property owned and operated by another person, unless the owner or operator is in any way responsible for the discharge;

    (6) Groundwater that is contaminated shall not be required to be remediated to a level or concentration for any particular contaminant lower than the level or concentration that is migrating onto the property from another property owned and operated by another person;

    (7) The technical performance, effectiveness and reliability of the proposed remedial action in attaining and maintaining compliance with applicable remediation standards and required health risk levels. In reviewing a proposed remedial action, the department shall also consider the ability of the owner or operator to implement the proposed remedial action within a reasonable time frame without jeopardizing public health, safety or the environment;

    (8) In the case of a proposed remedial action that will not meet the established minimum residential use soil remediation standards, the cost of all available permanent remedies is unreasonable, as determined by department rules designed to provide a cost-based preference for the use of permanent remedies. The department shall adopt regulations, no later than 18 months after the effective date of this act, establishing criteria and procedures for allowing a person to demonstrate that the cost of all available permanent remedies is unreasonable. Until the department adopts those regulations, it shall not require a person performing a remedial action to implement a permanent remedy, unless the cost of implementing a nonpermanent remedy is 50 percent or more than the cost of implementing a permanent remedy; provided, however, that the preceding provision shall not apply to any owner or operator of an industrial establishment who is implementing a remedial action pursuant to subsection i. of section 4 of P.L.1983, c.330 (C.13:1K-9);

    (9) The use of the established nonresidential soil remediation standard shall not be unreasonably disapproved by the department.

    The department may require the person performing the remediation to supply the information required pursuant to this subsection as is necessary for the department to make a determination.

    h. (1) The department shall adopt regulations which establish a procedure for a person to demonstrate that a particular parcel of land contains large quantities of historical fill material. Upon a determination by the department that large quantities of historic fill material exist on that parcel of land, there is a rebuttable presumption that the department shall not require any person to remove or treat the fill material in order to comply with a remediation standard. In these areas the department shall establish by regulation the requirement for engineering or institutional controls that are designed to prevent exposure of these contaminants to humans, that allow for the continued use of the property, that are less costly than removal or treatment, which maintain the health risk levels as established in subsection d. of this section, and, as applicable, are protective of the environment. The department may rebut the presumption only upon a finding by the preponderance of the evidence that the use of engineering or institutional controls would not be effective in protecting public health, safety, and the environment. For the purposes of this paragraph "historic fill material" means generally large volumes of non-indigenous material, used to raise the topographic elevation of a site, which were contaminated prior to emplacement and are in no way connected with the operations at the location of emplacement and which include, but are not limited to, construction debris, dredge spoils, incinerator residue, demolition debris, fly ash, and non-hazardous solid waste. Historic fill material shall not include any material which is substantially chromate chemical production waste or any other chemical production waste or waste from processing of metal or mineral ores, residues, slags or tailings.

    (2) The department shall develop recommendations for remedial actions in large areas of historic industrial contamination. These recommendations shall be designed to meet the health risk levels established in subsection d. of this section, and to be protective of the environment and shall take into account the industrial history of these sites, the extent of the contamination that may exist, the costs of remedial actions, the economic impacts of these policies, and the anticipated uses of these properties. The department, within one year of the enactment of this act, shall issue a report to the Senate Environment Committee and to the Assembly Energy and Hazardous Waste Committee, or their successors, explaining these recommendations and making any recommendations for legislative or regulatory action.

    (3) The department may not, as a condition of allowing the use of a nonresidential use soil remediation standard, or the use of institutional or engineering controls, require the owner of that real property, except as provided in section 36 of P.L.1993, c.139 (C.58:10B-13), to restrict the use of that property through the filing of a deed easement, covenant, or condition.

    (4) The department shall adopt regulations whereby a person who is performing a remediation on real property located in a qualified municipality, may apply for that property to receive an urban redevelopment remediation exemption. Upon a determination that a parcel of real property qualifies for the exemption because of its location in a qualified municipality, there is a rebuttable presumption that the remedial action workplan is in compliance with the department's regulations and is approved. For properties that qualify for the exemption, the department shall establish by regulation the requirements and standards for the contents of the remedial action workplan. Notwithstanding the exemption granted pursuant to this paragraph, the department may require the removal of the source of continuing contamination. The department may rebut the presumption only upon a finding by the preponderance of the evidence that the remedial action workplan does not conform to the requirements and standards established by regulation or that it would not be effective in protecting public health, safety, and the environment.

    i. The department may not require a remedial action workplan to be prepared or implemented or engineering or institutional controls to be imposed upon any real property unless sampling performed at that real property demonstrates the existence of contamination above the applicable remediation standards.

    j. Upon the approval by the department of a remedial action workplan, or similar plan that describes the extent of contamination at a site and the remedial action to be implemented to address that contamination, the department may not subsequently require a change to that workplan or similar plan in order to compel a different remediation standard due to the fact that the established remediation standards have changed; however, the department may compel a different remediation standard if the difference between the new remediation standard and the remediation standard approved in the workplan or other plan differs by an order of magnitude. The limitation to the department's authority to change a workplan or similar plan pursuant to this subsection shall only apply if the workplan or similar plan is being implemented in a reasonable time frame, as may be indicated in the approved remedial action workplan or similar plan.

    k. Notwithstanding any other provisions of this section, all remediation standards and remedial actions that involve real property located in the Pinelands area shall be consistent with the provisions of the "Pinelands Protection Act," P.L.1979, c.111 (C.13:18A-1 et seq.), any rules and regulations promulgated pursuant thereto, and with section 502 of the "National Parks and Recreation Act of 1978," [16 U.S.C. §4711] 16 U.S.C. §471.

    l. Upon the adoption of a remediation standard for a particular contaminant in soil, groundwater, or surface water pursuant to this section, the department may amend that remediation standard only upon a finding that a new standard is necessary to maintain the health risk levels established in subsection d. of section 35 of P.L.1993, c.139 (C.58:10B-12) or to protect the environment, as applicable. The department may not amend a public health based soil remediation standard to a level that would result in a health risk level more protective than that provided for in subsection d. of section 35 of P.L.1993, c.139 (C.58:10B-12).

    m. Nothing in P.L.1993, c.139 shall be construed to restrict or in any way diminish the public participation which is otherwise provided under the provisions of the "Spill Compensation and Control Act," P.L.1976, c.141 (C.58:10-23.11 et seq.).

(cf: P.L.1993, c.139, s.35)]¹

    ¹[92.] 58.¹ (New section) a. The Commissioner of Environmental Protection shall appoint an Urban Site Remediation Coordinator. The coordinator shall be responsible for the oversight and approval of site remediations conducted in areas designated as empowerment neighborhoods pursuant to article 4 of P.L. , c. (C. ) (pending before the Legislature as this bill). The Commissioner of Environmental Protection shall vest in the coordinator sufficient authority to properly manage the timely approval of site remediation activities in empowerment neighborhoods. The ¹[director] coordinator¹ shall report directly to the commissioner. The coordinator shall meet regularly with the commissioner to ensure the proper and efficient coordination of these projects.

    b. Upon the submittal of the administratively and technically complete and accurate results of a phase of a remediation required to be submitted that requires the department's review and approval in order to comply with the applicable laws and regulations concerning a site remediation conducted in an area designated as an empowerment neighborhood, the department shall review and approve, approve with conditions, or disapprove the submission or other documents within the following time frames:

    (1) preliminary assessment - 15 days;

    (2) site investigation - 15 days;

    (3) remedial investigation workplan - 30 days;

    (4) remedial investigation report - 60 days;

    (5) remedial action workplan - 90 days;

    (6) remedial action progress reports - 30 days;

    (7) remedial action final report - 45 days.

    ¹59. (New section) Beginning in the calendar year following the effective date of this act, the New Jersey Economic Development Authority shall allocate no less than 12-1/2 percent of the aggregate amount of loans and loan guarantees made by the New Jersey Economic Development Authority in any fiscal year to projects consistent with the provisions of "The New Jersey Economic Development Authority Act," P.L.1974, c.80 (C.34:1B-1 et seq.) and that are located in municipalities designated as qualified municipalities pursuant to section 3 of P.L.     , c. (C. ) (pending before the Legislature as this bill).¹

    ¹60. (New section) The New Jersey Redevelopment Authority shall fund such projects as may be practicable in any municipality eligible for designation as an empowerment zone or enterprise zone under federal law through the issuance of tax exempt bonds as provided in section 1394 of P.L.103-66; 107 Stat 548, which bonds shall also be exempt from any tax levied pursuant to Title 54 of the Revised Statutes or Title 54A of the New Jersey Statutes.¹

    ³[¹61. (New section) In determining the projects to be funded from the issuance and sale of bonds pursuant to the "Water Supply Bond Act of 1981," P.L.1981, c.261, consideration shall be given to funding such projects as may be practicable in an empowerment zone or enterprise community as designated under federal law or which are part of an approved neighborhood empowerment plan ²or other authority projects² under this act or community redevelopment plan, or which will benefit urban residents, so long as they are consistent with the purposes of P.L.1981, c.261.¹]³

    ³[¹62. (New section) In determining the projects to be funded from the issuance and sale of bonds pursuant to the "Green Acres, Clean Water, Farmland and Historic Preservation Bond Act of 1992," P.L.1992, c.88, consideration shall be given to funding such projects as may be practicable in an empowerment zone or enterprise community as designated under federal law or which are part of an approved neighborhood empowerment plan ²or other authority projects² under this act or community redevelopment plan, or which will benefit urban residents, so long as they are consistent with the purposes of P.L.1992, c.88.¹]³

    ³[¹63. (New section) In determining the projects to be funded pursuant to the "1992 New Jersey Employment and Workforce Development Act," P.L.1992, c.43, consideration shall be given to funding such projects as may be practicable in an empowerment zone or enterprise community as designated under federal law or which are part of an approved neighborhood empowerment plan ²or other authority projects² under this act or community redevelopment plan, or which will benefit urban residents, so long as they are consistent with the purposes of P.L.1992, c.43.¹]³

    ³61. (New section) The authority may apply for funding from the "Water Supply Bond Act of 1981," P.L.1981, c.261. Consideration shall be given to funding such projects as may be practicable in a qualified municipality as defined pursuant to section 3 of P.L. , c.     (C. ) (pending before the Legislature as this bill) or in an empowerment zone or enterprise community as designated under

federal law, so long as those projects are consistent with the purposes of P.L.1981, c.261.³

     ³62. (New section) The authority may apply for funding from the "Green Acres, Clean Water, Farmland and Historic Preservation Bond Act of 1992," P.L.1992, c.88 and the "Green Acres, Farmland and Historic Preservation, and Blue Acres Bond Act of 1995," P.L.1995, c.204. Consideration shall be given to funding such projects as may be practicable in a qualified municipality as defined pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill) or in an empowerment zone or enterprise community as designated under federal law, so long as those projects are consistent with the purposes of P.L.1992, c.88 or P.L.1995, c.204, as the case may be.³

    ³63. (New section) The authority may apply for funding from the "1992 New Jersey Employment and Workforce Development Act," P.L.1992, c.43. Consideration shall be given to funding such projects as may be practicable in a qualified municipality as defined pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill) or in an empowerment zone or enterprise community as designated under federal law, so long as those projects are consistent with the purposes of P.L.1992, c.43.³

    ¹[93.] 64.¹ Section 27 of P.L.1993, c.139 (C.58:10B-5) is amended to read as follows:

    27. a. (1) Financial assistance from the remediation fund, made to persons other than municipal governmental entities, the New Jersey Redevelopment Authority, or to persons who voluntarily undertake a remediation, may only be rendered to persons who cannot establish a remediation funding source for the full amount of a remediation. Financial assistance pursuant to this act may be rendered only for that amount of the cost of a remediation for which the person cannot establish a remediation funding source.

     (2) Financial assistance rendered to persons who voluntarily undertake a remediation may only be made for that amount of the cost of the remediation that the person cannot otherwise fund by any of the authorized methods to establish a remediation funding source.

    b. Financial assistance may be rendered from the remediation fund to (1) owners or operators of industrial establishments who are required to perform remediation activities pursuant to P.L.1983, c.330 (C.13:1K-6 et al.), upon closing operations or prior to the transfer of ownership or operations of an industrial establishment, (2) persons who have discharged a hazardous substance or who are in any way responsible for a hazardous substance pursuant to P.L.1976, c.141 (C.58:10-23.11 et seq.), and (3) persons who voluntarily undertake the remediation of a discharge of a hazardous substance or hazardous waste and who have not been ordered or directed to perform the remediation by the department or by a court.

    c. Financial assistance and grants may be made from the remediation fund to municipal governmental entities that own or hold a tax sale certificate on real property on which there has been a discharge or on which there is a suspected discharge of a hazardous substance or hazardous waste or the New Jersey Redevelopment Authority established pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill) for any such real property upon which the New Jersey Redevelopment Authority owns or holds the tax sale certificate.

    d. Grants may be made from the remediation fund to persons, including the New Jersey Redevelopment Authority, other than other governmental entities who own real property on which there has been a discharge of a hazardous substance or a hazardous waste and that person qualifies for an innocent party grant pursuant to section 28 of P.L.1993, c.139 (C.58:10B-6).

    For the purposes of this section, "person" shall include the New Jersey Redevelopment Authority established pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill).

(cf: P.L.1993, c.139, s.27)

    ¹[94.] 65.¹ Section 28 of P.L.1993, c.139 (C.58:10B-6) is amended to read as follows:

    28. a. Except for moneys deposited in the remediation fund for specific purposes, financial assistance and grants from the remediation fund shall be rendered for the following purposes and, on an annual basis, obligated in the percentages as provided in this subsection. Upon a written joint determination by the authority and the department that it is in the public interest, financial assistance and grants dedicated for the purposes and in the percentages set forth in paragraph (1), (2), or (3) of this subsection, may, for any particular year, be obligated to other purposes set forth in this subsection. The written determination shall be sent to the Senate Environment Committee, and the Assembly ³[Environment and Energy] Agriculture and Waste Management³ [and Hazardous Waste] Committee, or their successors. For the purposes of this section, "person" shall include the New Jersey Redevelopment Authority established pursuant to P.L.    , c. (C.               ) (pending before the Legislature as this bill).

     (1) At least 15% of the moneys shall be allocated for financial assistance to persons, including the New Jersey Redevelopment Authority, other than other governmental entities, for remediation of real property located in a qualifying municipality as defined in section 1 of P.L.1978, c.14 (C.52:27D-178);

    (2) At least 10% of the moneys shall be allocated for financial assistance and grants to municipal governmental entities that [own or] hold a tax sale certificate on real property or have acquired through foreclosure or other similar means real property on which there has been or on which there is suspected of being a discharge of hazardous substances or hazardous wastes or the New Jersey Redevelopment Authority established pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill), for any such real property upon which the New Jersey Redevelopment Authority owns or holds the tax sale certificate. Grants shall be used for performing preliminary assessments [and], site investigations, and remedial investigations on property [owned] acquired by a municipal governmental entity or the New Jersey Redevelopment Authority, as the case may be, or on which the municipality or the New Jersey Redevelopment Authority owns or holds a tax sale certificate, in order to determine the existence or extent of any hazardous substance or hazardous waste contamination on those properties. A municipal governmental entity that has performed a preliminary assessment [and], site investigation and remedial investigation on property or the New Jersey Redevelopment Authority, in any case where the New Jersey Redevelopment Authority has performed the preliminary assessment, site investigation, and remedial investigation may obtain a loan for the purpose of continuing the remediation on those properties it owns as necessary to comply with the applicable remediation standards adopted by the department;

    (3) At least 15% of the moneys shall be allocated for financial assistance to persons [or], including the New Jersey Redevelopment Authority, or municipal governmental entities for remediation activities at sites that have been contaminated by a discharge of a hazardous substance or hazardous waste, or at which there is an imminent and significant threat of a discharge of a hazardous substance or hazardous waste, and the discharge or threatened discharge poses or would pose an imminent and significant threat to a drinking water source, to human health, or to a sensitive or significant ecological area;

    (4) At least 10% of the moneys shall be allocated for financial assistance to persons, other than municipal governmental entities, who voluntarily undertake the remediation of a hazardous substance or hazardous waste discharge, and who have not been ordered to undertake the remediation by the department or by a court;

    (5) At least 20% of the moneys shall be allocated for financial assistance to persons, other than municipal governmental entities, who are required to perform remediation activities at an industrial establishment pursuant to P.L.1983, c.330 (C.13:1K-6 et al.), as a condition of the closure, transfer, or termination of operations at that industrial establishment;

    (6) At least 20% of the moneys shall be allocated for grants to persons, other than municipal governmental entities, who own real property on which there has been a discharge of a hazardous substance or a hazardous waste and that person qualifies for an innocent party grant. A person qualifies for an innocent party grant if that person acquired the property prior to December 31, 1983, except as provided hereunder, the hazardous substance or hazardous waste that was discharged at the property was not used by the person at that site, and that person certifies that he did not discharge any hazardous substance or hazardous waste at an area where a discharge is discovered; provided, however, that if the person is the New Jersey Redevelopment Authority established pursuant to P.L. , c. (C.            ) (pending before the Legislature as this bill), the authority shall qualify for an innocent party grant pursuant to this paragraph ¹[regardless of when the authority acquired the property] where the immediate predecessor in title to the authority qualified for but failed to receive such grant¹. A grant authorized pursuant to this paragraph may be for up to 50% of the remediation costs at the area of concern for which the person qualifies for an innocent party grant, except that no grant awarded pursuant to this paragraph to any person including the New Jersey Redevelopment Authority may exceed $1,000,000; and

    (7) Ten percent of the moneys in the remediation fund shall be allocated for financial assistance or grants for any of the purposes enumerated in paragraphs (1) through (6) of this subsection, except that where moneys in the fund are insufficient to fund all the applications in any calendar year that would otherwise qualify for financial assistance or a grant pursuant to this paragraph, the authority shall give priority to financial assistance applications that meet the criteria enumerated in paragraph (3) of this subsection.

    b. Loans issued from the remediation fund shall be for a term not to exceed ten years, except that upon the transfer of ownership of any real property for which the loan was made, the unpaid balance of the loan shall become immediately payable in full. Loans to municipal governmental entities and the New Jersey Redevelopment Authority established pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill), shall bear an interest rate equal to 2 points below the Federal Discount Rate at the time of approval or at the time of loan closing, whichever is lower, except that the rate shall be no lower than 3 percent. All other loans shall bear an interest rate equal to the Federal Discount Rate at the time of approval or at the time of the loan closing, whichever is lower, except that the rate on such loans shall be no lower than five percent. Financial assistance and grants may be issued for up to 100% of the estimated applicable remediation cost, except that the cumulative maximum amount of financial assistance which may be issued to a person other than a governmental entity, including the New Jersey Redevelopment Authority, in any calendar year, for one or more properties, shall be $1,000,000. Financial assistance and grants to any one municipal governmental entity, including the New Jersey Redevelopment Authority, may not exceed $2,000,000 in any calendar year. Repayments of principal and interest on the loans issued from the remediation fund shall be paid to the authority and shall be deposited into the remediation fund.

    c. No person, other than a municipal governmental entity, the New Jersey Redevelopment Authority or a person engaging in a voluntary remediation, shall be eligible for financial assistance from the remediation fund to the extent that person is capable of establishing a remediation funding source for the remediation as required pursuant to section 25 of P.L.1993, c.139 (C.58:10B-3).

     d. The authority may use a sum that represents up to 2% of the moneys issued as financial assistance or grants from the remediation fund each year for administrative expenses incurred in connection with the operation of the fund and the issuance of financial assistance and grants.

    e. Prior to March 1 of each year, the authority shall submit to the Senate Environment Committee and the Assembly ³[Environment and Energy] Agriculture and Waste Management³ [and Hazardous Waste] Committee, or their successors, a report detailing the amount of money that was available for financial assistance and grants from the remediation fund for the previous calendar year, the amount of money estimated to be available for financial assistance and grants for the current calendar year, the amount of financial assistance and grants issued for the previous calendar year and the category for which each financial assistance and grant was rendered, and any suggestions for legislative action the authority deems advisable to further the legislative intent to facilitate remediation and promote the redevelopment and use of existing industrial sites.

(cf: P.L.1993, c.139, s.28)

    ¹[95.] 66.¹ Section 29 of P.L.1993, c.139 (C.58:10B-7) is amended to read as follows:

    29. a. A qualified applicant for financial assistance or a grant from the remediation fund shall be awarded financial assistance or a grant by the authority upon the availability of sufficient moneys in the remediation fund for the purpose of the financial assistance or grant. Priority for awarding financial assistance and grants from the remediation fund shall be based upon the date of receipt by the authority of a complete application from the applicant. If an application is determined to be incomplete by the authority, an applicant shall have 30 days from receipt of written notice of incompleteness to file any additional information as may be required by the authority for a completed application. If an applicant fails to file the additional information within those 30 days, the filing date for that application shall be the date that the additional information is received by the authority. An application shall be deemed complete when all the information required by the authority has been received in the required form. Notwithstanding that the New Jersey Redevelopment Authority is eligible for grants and financial assistance from the fund, the authority shall be awarded a grant or financial assistance based upon the priority system for such awards as provided in this subsection.

    b. Within 90 days, for a private entity, or 180 days for a municipal governmental entity or the New Jersey Redevelopment Authority, of notice of approval of a financial assistance or grant application, an applicant shall submit to the authority an executed contract for the remediation activities for which the financial assistance or grant application was made. The contract shall be consistent with the terms and conditions for which the financial assistance or grant was rendered. Failure to submit an executed contract within the time provided, without good cause, shall constitute grounds for the alteration of an applicant's priority ranking for the awarding of financial assistance or a grant.

(cf: P.L.1993, c.139, s.29)

    ¹[96.] 67.¹ The following ¹[are] is¹ hereby repealed: P.L.1984, c.172 (C.52:27D-250 et seq.) ¹[and P.L.1985, c.227 (C.55:19-1 et seq.); provided, however, that this repeal shall not affect any obligation, lien or duty to pay taxes, interest or penalties which has been reduced or which may be reduced by virtue of any credits allowed pursuant to the provisions of the law repealed by P.L. , c. (C. ) (pending before the Legislature as this bill), or which may be allowed with respect to any redetermination, correction, recomputation or deficiency assessment; and provided that this repeal shall not affect the legal rights of any taxpayer to protest or appeal any taxes due or which may be due, together with such interest and penalties as may accrue thereon, with regard to any credits granted under the provisions of the law repealed]¹.

    ¹[97.] 68.¹ There is appropriated to the New Jersey Redevelopment Authority from the General Fund ²[a sum of ¹[$250,000] $10,000,000¹] $9,000,000² to effectuate the purposes of this act ^{1 2}[; of this appropriation, $1,000,000 shall be dedicated] . There is appropriated² to the Office of Neighborhood Empowerment established pursuant to section 47 of P.L. c, (C. ) (pending before the Legislature as this bill) ²from the General Fund $1,000,000² to effectuate the purposes of this act¹.