S954

SENATE, No. 954

STATE OF NEW JERSEY

INTRODUCED MARCH 7, 1996

By Senators DiFRANCESCO and LESNIAK

An Act concerning landfill reclamation improvement districts, amending the title of P.L.1995, c.173, amending and supplementing the body of that act, amending N.J.S.40A:4-39, and repealing section 6 of P.L.1995, c.173 (C.40A:12-55).

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

1. The title of P.L. 1995, c. 173 (C.40A:12A-50 et seq.) is amended to read as follows:

An Act concerning the reallocation of certain real property taxes for bond payments in municipalities establishing landfill reclamation improvement districts, and gross receipts franchise assessments on certain businesses by distressed municipalities wherein landfill reclamation and improvement involves special circumstances and costs, supplementing Title 40A of the New Jersey Statutes and amending N.J.S. 40A:4-39.

(cf: P.L.1995, c.173, title)

2. (New section) P.L.1995, c.173 (C.40A:12A-50 et seq.) as amended and supplemented shall be known and may be cited as the "Municipal Landfill Reclamation and Improvement Law."

3. Section 1 of P.L.1995, c.173 (C.40:12A-50) is amended to read as follows:

1. a. The Legislature finds and declares that it is a public purpose and compelling State interest to facilitate the redevelopment of landfill [reclamation] sites in areas in need of redevelopment within municipalities that are attempting to create economic growth and thereby to promote job creation and economic development. Environmentally sound landfill reclamation is essentially a "capping" process, and the development potential of a capped landfill is limited. [The extensive closed landfill areas in some of the State's urban areas, the prior commercial retail development experience and the excellent transportation potential of those areas makes it vital that the commercial reuse of those sites be encouraged by providing municipal governments with the appropriate financing tools.]

b. The Legislature, therefore, determines that it is appropriate to enable [certain] municipalities to establish landfill reclamation improvement districts in areas in need of redevelopment comprising [reclaimed] landfills of sufficient size [in existing urban enterprise zones] to foster meaningful economic development and to provide [those] municipalities with the appropriate [economic] tools for the reclamation and redevelopment of those districts. [To provide those tools, it is appropriate to allow a municipality to fund beneficial improvements through the use of revenue bonds, and to allow a municipality to act as a conduit through which the commercial tenants of a development district may finance their own futures by franchise assessments on businesses within the district, with the proceeds of the assessment to be used for land reclamation and infrastructure improvements made directly by a municipality within the district or indirectly through redevelopers.]

c. The Legislature further determines that the closure of landfills and the redevelopment of landfill sites are necessary to halt the decline in economic activity and the underemployment of economic resources in these areas, to reverse the deterioration of the value of previous investments in areas in need of redevelopment and of public revenue collections on those investments, and to eliminate the disincentive to new investment; and that the improvement of these sites is vital to the safety, health and welfare of the residents of the municipalities in which they are located and to the State, and constitutes an important opportunity for enhancing the economic condition of the municipalities in which landfills are located and that of the State, by augmenting the fiscal resources of government and by stimulating private and public efforts to enhance the attractiveness and desirability of the State as a place to live and work.

d. Therefore, to foster this redevelopment, the Legislature further determines that a municipality that has created a landfill reclamation improvement district may adopt an ordinance which provides for reallocation of real property taxes within that district, in accordance with P.L.1995, c.173 (C.40A:12A-50 et seq.) and this amendatory and supplementary act, P.L. , c. (C. ) (now pending before the Legislature as this bill), and may secure revenue bonds, notes or other obligations with that reallocation tax, and utilize these means to secure funds to effect landfill closures, remediation, redevelopment, and construction of infrastructure improvements which will benefit the public at large and which constitute an important public purpose.

e. The Legislature, further, determines that special financing problems exist with respect to the size or nature and extent of remediation and infrastructure provision where the reclamation improvement district consists of a tract of land of at least 150 acres of which not less than 100 acres were formerly used as a landfill, and is located in a municipality having a population of more than 12,000 according to the latest federal decennial census, and in an area designated as an urban enterprise zone in which the receipts of certain sales are exempt to the extent of 50% of the tax imposed under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.) pursuant to section 21 of P.L.1983, c.303 (C.52:27H-80), and determines that the municipality, in addition to the reallocation of taxes to secure bonds, may, by ordinance, levy a franchise assessment within the district, which franchise assessment shall be used to compensate the municipality for loss of tax revenues arising from assignment of landfill tax proceeds as security for bonds and to reimburse a redeveloper for the extraordinary risk of undertaking remediation and development in a landfill reclamation improvement district, all as shall be provided in accordance with the terms and conditions of a redevelopment agreement executed between the municipality and the redeveloper.

f. The Legislature, further, determines that it is appropriate to authorize the New Jersey Economic Development Authority established pursuant to P.L.1974, c.80 (C.34:1B-1 et seq.), as a conduit for municipalities, to issue and secure revenue bonds, notes or other obligations issued in accordance with P.L.1995, c.173 (C.40A:12A-50 et seq.) and this amendatory and supplementary act, P.L. c. (C. ) (now pending before the Legislature as this bill) with respect to financing or refinancing the construction, reconstruction, repair, alteration, improvement, and development of any infrastructure or parking or transportation facilities or work that abates, prevents or reduces environmental pollution or other improvements that provide a public benefit within or appurtenant to a landfill reclamation improvement district.

(cf: P.L.1995, c.173,s.1)

4. Section 2 of P.L.1995, c.173 (C.40A:12A-51) is amended to read as follows:

2. As used in [sections 1 through 6 of this] P.L.1995, c.173 (C.40A:12A-50 et seq.) and this amendatory and supplementary act, P.L. , c. (C. ) (now pending before the Legislature as this bill):

"Authority" means the New Jersey Economic Development Authority established pursuant to P.L.1974, c.80 (C.34:1B-1 et seq.).

"Bonds" mean bonds, notes or other obligations issued by the New Jersey Economic Development Authority pursuant to P.L.1995, c.173 (C.40A:12A-50 et seq.) and this amendatory and supplementary act, P.L. , c. (C. ) (now pending before the Legislature as this bill).

"Redeveloper" means any person that enters or proposes to enter into a redevelopment agreement with a municipality that has established a landfill reclamation improvement district providing for landfill closure, remediation, redevelopment, including, but not limited to, on-site and off-site infrastructure improvements, or rehabilitation of an area in need of redevelopment, or part thereof, under the provisions of PL.1995, c.173 (C.40A:12A-50 et seq.) and this amendatory and supplementary act, PL. , c. (C. ) (now pending before the Legislature as this bill) and the "Local Redevelopment and Housing Law," PL.1992, c.79 (C.40A:12A-1 et seq.).

"Redevelopment agreement" means a contract between a municipality and a redeveloper for any work or undertaking for the clearance, development and redevelopment, construction or rehabilitation of any structure or improvement of commercial, industrial or public structures or improvements, including, but not limited to, on-site and off-site infrastructure improvements, that provide a public benefit within a district undertaken pursuant to an ordinance creating a landfill reclamation improvement district pursuant to section 3 of P.L.1995, c.173 (C.40A:12A-52).

"Franchise assessment" means: (1) an assessment on the amount of the sale price of all tangible property sold by a business in a district, valued in money, whether received in money or otherwise, excluding the cost of transportation if such cost is separately stated in the written contract and excluding any tax imposed pursuant to the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.); (2) an assessment on all rental receipts from the rental of commercial property in a district; or (3) both (1) and (2).

"Landfill reclamation improvement district" or "district" means a [contiguous] tract of land of at least [150] 20 acres in size, which may consist of one or more tax lots, of which not less than [100] 10 acres were formerly or are presently used as a landfill, [located in a municipality having a population of more than 12,000 according to the latest federal decennial census and in an area designated as an urban enterprise zone in which the receipts of certain sales are exempt to the extent of 50% of the tax imposed under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.), pursuant to section 21 of P.L.1983, c.303 (C.52:27H-80),] which has been delineated a "redevelopment area" or "area in need of redevelopment" pursuant to the "Local Redevelopment and Housing Law" P.L.1992, c.79 (C.40A:12A-1 et seq.), and in an area which has been designated a landfill reclamation improvement district by a municipality pursuant to section 3 of P.L.1995, c.173 (C.40A:12A-52).

"Reallocation tax" means a conventional ad valorem tax adopted by a municipality pursuant to section 9 of this amendatory and supplementary act, P.L. , c. (C. ) (now pending before the Legislature as this bill) on real property situate within a landfill reclamation improvement district for the purpose of securing bonds issued pursuant to section 10 of this amendatory and supplementary act, P.L. , c. (C. ) (now pending before the Legislature as this bill).

(cf: P. L.1995,c.173,s.2)

5. Section 3 of P.L 1995, c.173 (C.40A:12A-52) is amended to read as follows:

3. A municipality [having a population of more than 12,000 according to the most recent federal decennial census in which there is an area designated as an urban enterprise zone in which the receipts of certain sales are exempt to the extent of 50% of the tax imposed under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.), pursuant to section 21 of P.L.1983, c.303 (C.52:27H-80),] may adopt an ordinance creating a landfill reclamation improvement district whenever the municipality determines that the closure and remediation of the landfill within the district and the proposed development of the property within the district will promote the health and general welfare of the residents of the municipality and the district, and promote job creation and economic development. A municipality may create, by separate ordinances, more than one district. Any municipal redevelopment plan adopted by the municipality shall provide for the development of the property within the district in compliance with P.L.1995, c.173 (C.40A:12A-50 et seq.) and this amendatory and supplementary act, P.L. , c. (C. ) (now pending before the Legislature as this bill).

(cf: P.L.1995, c.173, s.3)

6. Section 4 of P.L.1995, c.173 (C.40A:12A-53) is amended to read as follows:

4. A municipality having a population of more than 12,000 according to the last federal decennial census that has created a district pursuant to section 3 of P.L.1995, c.173 (C.40A:12A-52), which consists of a tract of land of at least 150 acres in size of which not less than 100 acres were formerly used as a landfill, and which is located in an area designated as an urban enterprise zone in which the receipts of certain sales are exempt to the extent of 50% of the tax imposed under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.) pursuant to section 21 of P.L.1983, c.303 (C.52:27H-80), may adopt an ordinance to levy, within the district, a franchise assessment not to exceed three percent, provided the municipality has by ordinance provided for a reallocation tax and assigned the revenues to provide security for bonds. The franchise assessment shall terminate when bonds issued pursuant to P.L.1995, c.173 (C.40A:12A-50 et seq.) and this amendatory and supplementary act, P.L. , c. (C. ) (now pending before the Legislature as this bill) have been paid in full.

The rate of the franchise assessment shall be uniform throughout the district. Notwithstanding any other law to the contrary, [agreements for the payment of a franchise assessment authorized by ordinance pursuant to this section] franchise assessments shall remain in full force and effect until such time as the bonds have been paid in full, notwithstanding that the municipality or district no longer possesses the characteristics which qualified the authorization to initially adopt the franchise assessment ordinance or the district designation or the designation as an urban enterprise zone may have expired prior to the full satisfaction of the payments due the bondholders and regardless of whether [such]the ordinance levying the franchise assessment is altered or repealed.

A certified copy of an ordinance adopted pursuant to this section shall be transmitted upon adoption to the State Treasurer. Every ordinance levying a franchise assessment pursuant to this section shall provide for reporting assessments due and for the collection thereof, and all franchise assessments pursuant to such an ordinance shall be remitted to the chief financial officer of the municipality. An ordinance levying a franchise assessment shall take effect only on the first day of any month in any year. [For the purposes of the effective administration of the franchise assessment, the municipality shall have all of the rights and responsibilities established pursuant to sections 35 through 39 of P.L.1970, c.326 (C.40:48C-35 through 40:48C-39) and the franchise assessment shall be administered pursuant to those sections.] The redevelopment agreement shall provide for the allocation and distribution of the proceeds of the franchise assessments collected; provided, however, that only such sums as are retained by the municipality pursuant to the redevelopment agreement shall be included in the general funds of the municipality and all other franchise assessment proceeds shall be held in trust for the benefit of the redeveloper, as provided in the redevelopment agreement.

The ordinance shall set forth the person or persons subject to the franchise assessment payment and collection procedures, and any other matters deemed relevant by the municipality with the municipality having discretion as to the mechanism to be utilized. The ordinance shall also contain findings that the imposition of the franchise assessment is necessary in order to finance the cost of remediation and infrastructure provision because of the substantial costs thereof and because of the substantial risks undertaken by the redeveloper, and to offset loss of revenues by the municipality because of its assignment of reallocation tax revenues.

(cf: P.L.1995, c.173,s.4)

7. (New section) For the purposes of the effective administration of the franchise assessment, the municipality shall have the power to:

a. Collect the franchise assessment, interest and penalties imposed by an ordinance adopted pursuant to section 4 of P.L.1995, c.173 (C.40A:12A-53) which shall from the time due be a debt of the person by whom payable to the municipality, recoverable in a court of competent jurisdiction in a civil action in the name of the municipality to be instituted within three years of the date due.

b. Authorize, as an additional remedy, the chief financial officer of the municipality to issue a certificate to the clerk of the Superior Court that any person is indebted under the ordinance in an amount stated in the certificate. Thereupon, the clerk to whom the certificate is issued shall immediately enter upon the record of documented judgments the name of the person, the address of the place of business where the franchise assessment liability was incurred, the amount of the debt so certified and the date of making of the entry. The making of the entry shall have the same force and effect as the entry of a documented judgment in the office of the clerk, and the chief financial officer of the municipality shall have all the remedies and may take all the proceedings for the collection of the debt which may be had or taken upon the recovery of a judgment in an action, but without prejudice to the person's right of appeal.

c. Provide that, if for any reason the franchise assessment is not paid when due, interest at the rate of 12% per annum on the amount of the franchise assessment due, and an additional penalty of one-half of 1% of the amount of the unpaid assessment for each month or fraction thereof during which the franchise assessment remains unpaid, shall be added and collected. When action is brought for the recovery of any franchise assessment, the person liable therefor shall, in addition, be liable for the costs of collection and the interest and penalties imposed.

Any aggrieved person may appeal a decision, order, finding, assessment or action of the chief financial officer of the municipality under this section to the Superior Court, upon payment of the amount stated by the chief financial officer to be due. The appeal provided by this section shall be the exclusive remedy available to any person for review of a determination of the chief financial officer with respect to a liability for the franchise assessment imposed.

8. Section 5 of P.L.1995, c.173 (C.40A:12A-54) is amended to read as follows:

5. [Notwithstanding any law to the contrary, all franchise assessments that are payable to a municipality from businesses located within a landfill reclamation improvement district and that are subject to a redevelopment agreement shall be appropriated by the municipality for payment as provided for in the redevelopment agreement.] Any portion of the aggregate franchise assessment collected annually by the municipality and retained pursuant to a redevelopment agreement which is not appropriated or expended by the municipality for purposes of the district shall be apportioned between the municipality and the county in which the landfill reclamation improvement district is located, such that 90 percent of the [aggregate] retained franchise assessment collected in that year shall be [paid to] retained by the municipality and 10 percent shall be [paid] transferred by the municipality to the county for use in economic development, unless the county waives, by resolution of the county board of freeholders, its interest or any part thereof. [Franchise assessments shall be made by the municipality until such time as the redeveloper has been paid in full, as defined in the redevelopment agreement, notwithstanding the fact that a municipality may no longer qualify to designate a district or that the district designation may have expired prior to the full satisfaction of the payments due the redeveloper under a redevelopment agreement.]

(cf: P. L.1995, c.173, s.5)

9. (New section) A municipality that has created a landfill reclamation improvement district pursuant to section 3 of P.L.1995, c.173 (C.40A:12A-52) and proposes to finance the costs of remediation and infrastructure provision from the proceeds of bonds, may adopt an ordinance which provides for a reallocation tax within that district and for payment of that reallocation tax by the owners of the real property within the district. The reallocation tax is an ad valorem real property tax with all proceeds dedicated to meet debt service on bonds, and shall be imposed, for such time, not to exceed 35 years in duration, as bonds issued by the authority and secured by revenues from the reallocation tax pursuant to P.L.1995, c.173 and section 10 of this amendatory and supplementary act, P.L. , c. (C. ) (now pending before the Legislature as this bill) are issued and outstanding. The reallocation tax shall be assessed according to the same standard of value, and real property situate within the landfill reclamation improvement district shall be taxed at the same general tax rate, as is real property situate elsewhere in the municipal taxing district. All rights and remedies afforded by law for municipal real property taxes shall apply to the reallocation tax, and the reallocation tax so imposed shall, in all respects, be the same as real property taxes imposed elsewhere in the municipal taxing district, except that all revenues collected from the levying of the reallocation tax shall be deposited in the reallocation tax fund to be used for the exclusive purpose of acting as security for bonds so issued. During the time that the reallocation tax ordinance is in effect and bonds are outstanding, the school district and county shall have no interest or right of participation in the reallocation tax revenues collected and assigned as security for bonds issued. An ordinance providing for a reallocation tax shall not be effective if no bonds, notes or other obligations are issued and outstanding. Upon the repayment in full of bonds secured by the reallocation tax, the reallocation tax shall terminate and the allocation of real property taxes collected in the landfill reclamation and improvement district among the municipality, school district and county shall be the same as that within the municipal taxing district.

10. (New section) a. A municipality that has created a landfill reclamation improvement district pursuant to section 3 of P.L.1995, c.173 (C.40A:12A-52) may, by resolution of the governing body, authorize the municipality to apply to the authority for the authority to issue negotiable bonds or other obligations secured by reallocation taxes. Bonds so issued shall be for the purpose of financing or refinancing the construction, reconstruction, repair, alteration, improvement, and development of any on-site or off-site infrastructure improvements 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 landfill reclamation improvement district.

b. A municipality that has created landfill reclamation improvement district pursuant to section 3 of P.L.1995, c.173 (C.40A:12A-52) may , by resolution of its governing body, enter into contracts with the authority, which may include a non-recourse note in an amount equal to the bond, relating to any project or projects for the purpose of financing or refinancing the construction, reconstruction, repair, alteration, improvement, and development of any on-site or off-site infrastructure improvements; parking or transportation facilities; project that reduces, abates or prevents environmental pollution; or other improvements that provide a public benefit within or to a landfill reclamation improvement district. A resolution so adopted shall contain findings and determinations of the governing body: (1) that the project will result in the closure and remediation of a landfill and create employment opportunities in the municipality; and, (2) that the contract with the authority is a necessary inducement to the undertaking of the project in that the contract makes the financing thereof feasible. No bonds shall be issued by the authority pursuant to a contract under this section unless the resolution and any contract adopted by the municipal governing body contains provisions that authorize execution by the municipality of a non-recourse note to the authority to be secured solely by the monies on deposit from time to time in the reallocation tax fund, and that make the issuance of the bonds contingent upon the establishment and maintenance by the municipality of a reallocation tax fund pursuant to section 11 of this amendatory and supplementary act, P.L. , c. (C. ) (now pending before the Legislature as this bill), and upon the assignment, for the benefit of bondholders, of revenues deposited in the reallocation tax fund to the authority or the trustee for the bonds as security for bonds so issued. A 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 requested by the municipality and as may be agreed to by the authority in conformity with its contracts with the holders of bonds, and it shall be valid and binding on the municipality. The contract or contracts may provide for the assignment for the benefit of bondholders of all or any portion of revenues deposited in the reallocation tax fund. The municipality is hereby authorized and directed to do and perform any contract so entered into by it and to provide for the discharge of any obligation thereunder in accordance with the contract.

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

c. The revenues deposited in the reallocation tax fund may be assigned directly to the authority or the trustee for the bonds as payment or security for the bonds. Notwithstanding any law to the contrary, the assignment of the reallocation tax revenues shall be an absolute assignment of all the municipality's right, title, and interest in the reallocation tax revenues and reallocation tax fund, neither of which shall be included in the general funds of the municipality, nor shall they be subject to any laws regarding the receipt, deposit, investment or appropriation of public funds and they shall retain such status notwithstanding enforcement of the payment by the municipality. The municipality shall be a "person" within the meaning of that term as defined in section 3 of P.L.1974, c.80 (C.34:1B-3); and the purpose described in this section shall be a "project" within the meaning of that term as defined in section 3 of P.L.1974, c.80 (C.34:1B-3).

d. Notwithstanding the provisions of subsection g. of section 37 of P.L.1992, c.79 (C.40A:12A-37), the bonds and notes issued pursuant to this section shall be non-recourse obligations, and shall not be direct and general obligations of the municipality, and the municipality shall not be obligated to levy and collect a tax sufficient in an amount to pay the principal and interest on the bonds and notes when the same become due and payable. The provisions of the "Local Government Supervision Act (1947)," P.L.1947, c.151 (C.52:27BB-1 et seq.) shall not apply to any bonds or other obligations issued or authorized pursuant to this section, and those bonds or other obligations shall not be considered gross debt of the municipality on any debt statement filed in accordance with the "Local Bond Law," N.J.S.40A:2-1, and the provisions of chapter 27 of Title 52 of the Revised Statutes (C.52:27-1 et seq.) shall not apply to such bonds.

e. The proceeds from the sale of the bonds shall not be deemed to be public funds and therefore the use of the proceeds from the sale of the bonds or other funds secured pursuant to the redevelopment agreement between the municipality and the redeveloper shall not require compliance with public bidding laws, including the "Local Public Contracts Law," P.L.1971, c.198 (C.40A:11-1 et seq.), or any similar statute.

f. After all bonds are issued pursuant to this section and no longer deemed to be outstanding, the reallocation tax and franchise assessments, if applicable, shall terminate, and the municipality shall levy real property taxes not subject to reallocation tax provisions within the landfill reclamation improvement district.

11. (New section) a. A municipality that has created a landfill reclamation improvement district and has adopted a reallocation tax within that district may create and establish one or more special funds to be known as reallocation tax funds and shall deposit into those reallocation tax funds any monies received as reallocation taxes by the municipality, any proceeds from the sale of bonds, and any other moneys which may be made available to the municipality from any other source or sources, for this purpose. The monies held in or credited to each reallocation tax fund established under this section shall be used solely for the payment of the principal of and interest on bonds secured by that reallocation tax fund, as the same mature, for required payments to any sinking fund established for the amortization of bonds, for the purchase or redemption of those bonds or for the payment of any redemption premium to be paid when those bonds are redeemed prior to maturity.

b. The chief financial officer of the municipality shall maintain each reallocation tax fund separate and apart from all other funds of the municipality, and the reallocation tax funds shall not be included in the general funds of the municipality.

c. The chief financial officer of the municipality shall remit the reallocation taxes maintained in each reallocation tax fund as provided in the contract entered into between the municipality and the authority in connection with the issuance of bonds by the authority pursuant to the provisions of section 10 of this amendatory and supplementary act, P.L. , c. (C. ) (now pending before the Legislature as this bill).

d. Any surplus monies in the reallocation tax fund not required for the purposes set forth in subsection a. of this section shall be paid over to the chief financial officer of the municipality, and the monies so paid over shall be distributed proportionally among the municipality, the school district and the county according to their respective taxes levied in the municipal taxing district.

12. (New section) All bonds issued pursuant to this act are hereby declared to be issued by a political subdivision of this State and for an essential public and governmental purpose and the bonds, and the interest thereon and the income therefrom, and all facility charges, funds revenues and other moneys pledged or available to pay or secure the payment of the bonds, or interest thereon, shall at all times be exempt from taxation except for transfer inheritance and estate taxes.

13. (New section) The State of New Jersey does hereby pledge to and covenant and agree with the holders of any bonds issued pursuant to this act that the State will not limit or alter the terms of any agreement, ordinance or resolution made in connection with the security for and the issuance and sale of any bonds, so as to in any way impair the rights or remedies of such holders, and will not modify in any way the exemption from taxation provided for in this act, until the bonds, together with interest thereon, with interest on any unpaid installments of interest, and all costs and expenses in connection with any action or proceeding by or on behalf of such holders, are fully met and discharged or provided for.

14. (New section) If any section, subsection, clause or provision of this act shall be adjudged to be unconstitutional or ineffective in whole or in part, to the extent that it is not adjudged unconstitutional or is not ineffective, it shall be valid and effective and no other section, subsection, clause or provision of this act shall on account thereof be deemed invalid or ineffective, and the inapplicability or invalidity of any section, subsection, clause or provision of this act in any one or more instances or under any one or more circumstances shall not be taken to affect or prejudice in any way its applicability or validity in any other instance or under any other circumstance.

15. (New section) After issuance, pursuant to this act, all bonds, notes or other obligations shall be conclusively presumed to be fully authorized and issued by all courts and officers of this State, and any person shall be estopped from questioning their sale, execution or delivery.

16. N.J.S.40A:4-39 is amended to read as follows:

40A:4-39. a. In the budget of any local unit, dedicated revenues anticipated during the fiscal year from any dog tax, dog license, revenues collected pursuant to N.J.S.18A:39-1.2, solid fuel license, sinking fund for term bonds, bequest, escheat, federal grant, motor vehicle fine dedicated to road repairs, relocation costs deposited into a revolving relocation assistance fund established pursuant to section 2 of P.L.1987, c.98 (C.20:4-4.1a), receipts from franchise assessments levied pursuant to section 4 of P.L.1995, c.173 to be retained by the municipality and, subject to the prior written consent of the director, other items of like character when the revenue is not subject to reasonably accurate estimate in advance, may be included in said budget by annexing to said budget a statement in substantially the following form:

"The dedicated revenues anticipated during the year ....... from ........ (here insert one or more of the sources above, as the case may be) are hereby anticipated as revenue and are hereby appropriated for the purposes to which said revenue is dedicated by statute or other legal requirement."

b. Dedicated revenues included in accordance with this section shall be available for expenditure by the local unit as and when received in cash during the fiscal year. The inclusion of such dedicated revenues shall be subject to the approval of the director, who may require such explanatory statements or data in connection therewith as the director deems advisable for the information and protection of the public.

(cf: P.L.1995, c.271, s.2)

17. Section 6 of P.L.1995, c.173 (C.40A:12A-55) is repealed.

18. This act shall take effect immediately .

STATEMENT

This bill revises P.L.1995, c.173 (C.40A:12A-50 et seq.) which authorized the creation of landfill reclamation and improvement districts, to strengthen the financing mechanism for landfill remediation and infrastructure provision. Under the bill, bonds would be issued by the New Jersey Economic Development Authority and secured by the reallocation of real property taxes within the landfill district. The reallocation tax would be in effect only during the time that the bonds are issued and outstanding and would be assessed and levied in the same manner and rate as taxes elsewhere in the municipality, except that the county and school district would not receive reallocation tax revenues during the time that bonds are issued, unless a surplus of revenues exists which is not necessary for bond purposes.

The bill changes the landfill reclamation and improvement district definition to permit a more general application throughout the State. At the same time, the franchise assessments authorized by P.L.1995, c.173 are restricted to municipalities and landfill districts meeting the distress and size criteria set forth in the original enactment. The legislative findings and determinations set forth the special circumstances of size, extent and substantial cost of remediation and infrastructure provision involved in these efforts.

In addition, the bill makes various provisions for the administration of reallocation taxes and franchise assessments, where applicable, and for contracts between the municipality and the New Jersey Economic Development Authority for the assignment of reallocation taxes for bond purposes and the issuance of bonds by the authority.

"Municipal Landfill Reclamation and Improvement Law."