S1144

An Act authorizing the creation of a debt of the State of New Jersey by the issuance of bonds of the State in the aggregate principal amount of $70,000,000 for the purpose of providing grants and loans to local units of government in the Pinelands area for infrastructure capital projects necessary to protect water resources while accommodating development in the regional growth and town management areas and in certain other designated areas; authorizing the issuance of refunding bonds; providing the ways and means to pay and discharge the principal of and interest on the bonds and refunding bonds; providing for the submission of this act to the people at a general election; and making an appropriation.

1. This act shall be known and may be cited as the "Pinelands Water Resources Protection Trust Bond Act."

2. The Legislature finds and declares that the "Pinelands Protection Act," P.L.1979, c.111 (C.13:18A-1 et seq.) was enacted, and a comprehensive management plan was adopted thereunder, to protect the unique natural, ecological, agricultural, scenic and recreational resources of the Pinelands area; that these resources are dependent upon the quality and quantity of surface and ground waters; that the Kirkwood-Cohansey aquifer system underlying the Pinelands may be vulnerable to degradation because of overuse; that existing and new wastewater treatment systems must be upgraded or constructed to protect the special qualities of those surface and ground waters; that the land use programs included in the comprehensive management plan encourage growth in certain portions of the Pinelands area so that others can be better protected from development impacts; that this growth will be accommodated in part through the Pinelands development credit program, which seeks to encourage landowners in areas wherein development is restricted to record use restrictions in the deeds to their land in return for monetary remuneration; that these Pinelands development credits will be redeemed in regional growth areas permitting greater development densities, and should be available for redemption in town management areas; that this growth will require concomitant improvements to the infrastructure in these areas; that the Kirkwood-Cohansey aquifer system provides water supply to areas outside of the Pinelands; that it is unreasonable and unjust to expect the taxpayers of the Pinelands regional growth and town management areas to assume the full financial burdens that result from the growth; and that it is altogether fitting and proper to provide for the capital investment in infrastructure improvements by the State through the issuance of bonds.

"Commissioner" means the Commissioner of the Department of Environmental Protection;

"Comprehensive management plan" means the plan for the protection of the Pinelands area, adopted pursuant to section 7 of P.L.1979, c.111 (C.13:18A-8);

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

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

"Infrastructure capital project" or "project" means the acquisition, construction, improvement, expansion, repair or rehabilitation of all or part of any structure, facility or equipment: (1) necessary for, or ancillary to, any wastewater treatment system or water supply system; or (2) necessary for, or ancillary to, any system that may be authorized and designated by the Legislature as an infrastructure capital project;

"Local government unit" means any county, municipality, authority or agency that is not a State authority or agency, which has administrative jurisdiction over an area to be served by, or which exercises functions appropriate for, the management of an infrastructure capital project;

"Pinelands area" means the area so designated by subsection a. of section 10 of P.L.1979, c.111 (C.13:18A-11);

"Pinelands Commission" means the commission created pursuant to section 4 of P.L.1979, c.111 (C.13:18A-4);

"Regional growth area" means an area designated in the comprehensive management plan as a receiving area for Pinelands development credits to accommodate regional growth;

"Town management area" means an area designated in the comprehensive management plan in which municipalities may plan for growth and development and in which the potential exists for the use of Pinelands development credits.

4. a. The commissioner shall adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations necessary to implement the provisions of this act. The commissioner shall review and consider the findings and recommendations of the commission in the administration of the provisions of this act.

b. The Pinelands Commission shall adopt , within 12 months of voter approval of this act, an infrastructure plan of projects to be funded under this act.

c. The Pinelands Commission shall adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations that permit municipalities to designate town management areas as receiving areas for Pinelands development credits. These rules and regulations shall be made a part of the comprehensive management plan.

d. The Pinelands Commission shall, in cooperation with the Department of Environmental Protection, Rutgers, the State University, and the United States Geological Survey, assess and prepare a report on the potential impact of groundwater withdrawals, both at current and anticipated or proposed rates, from the Kirkwood-Cohansey aquifer system.

5. a. Bonds of the State of New Jersey are authorized to be issued in the aggregate principal amount of $70,000,000 for the purpose of providing grants and loans to any local government unit in the Pinelands area for infrastructure capital projects necessary to accommodate development in the regional growth area. Grants and loans may be provided to local government units for infrastructure capital projects that serve town management areas, provided that the municipality makes provisions for the accommodation of Pinelands development credits in a manner consistent with the comprehensive management plan.

No project shall be approved by the commissioner except upon a finding that the master plan and zoning ordinance of the municipality, and the master plan of the county wherein the project is to take place, has been certified by the Pinelands Commission to be in conformance with the comprehensive management plan, and upon a finding by the Pinelands Commission that the project conforms with the infrastructure plan adopted by the Pinelands Commission pursuant to subsection b. of section 4 of this act and the provisions of the comprehensive management plan.

b. Not more than $5,000,000 of the aggregate principal amount of the bonds authorized in subsection a. of this section shall be available for the preparation of the infrastructure plan and aquifer assessment and report required pursuant to subsections b. and d. of section 4 of this act.

c. Not more than $10,000,000 of the aggregate principal amount of the bonds authorized in subsection a. of this section shall be made available for providing grants and loans to any local government unit in the Pinelands area for infrastructure capital projects designed to assist in the elimination of the direct discharges of treated wastewater into the Atlantic Ocean and the Delaware River.

d. Not more than $5,000,000 of the aggregate principal amount of the bonds authorized pursuant to subsection a. of this section shall be available for providing grants and loans to any local government unit in the Pinelands area for small scale infrastructure capital projects designed to service existing public educational facilities, or expansions thereof, which are located outside regional growth areas and town management areas.

e. The interest rate on loans made to local government units from the "Pinelands Water Resources Protection Trust Fund" created pursuant to section 14 of this act shall not exceed 50 percent of the average interest rate of the Bond Buyer Municipal Bond Index for bonds available for purchase during the last 26 weeks preceding the date of the approval of the loan by the department.

f. Payments of principal and interest on loans made from the "Pinelands Water Resources Protection Trust Fund" shall be paid to the "Pinelands Water Resources Protection Trust Fund."

g. When financial assistance for an infrastructure capital project is obtained from a federal agency or another State program or agency, the cost of the project shall be computed after deducting the federal or other State contribution.

6. The bonds authorized under this act shall be serial bonds, term bonds, or a combination thereof, and shall be known as "Pinelands Water Resources Protection Trust Bonds." They shall be issued from time to time as the issuing officials herein named shall determine and may be issued in coupon form, fully-registered form or book-entry form. The bonds may be subject to redemption prior to maturity and shall mature and be paid not later than 35 years from the dates of their issuance.

7. The Governor, the State Treasurer, and the Director of the Division of Budget and Accounting in the Department of the Treasury, or any two of these officials, herein referred to as "the issuing officials," are authorized to carry out the provisions of this act relating to the issuance of bonds, and shall determine all matters in connection therewith, subject to the provisions of this act. If an issuing official is absent from the State or incapable of acting for any reason, the powers and duties of that issuing official shall be exercised and performed by the person authorized by law to act in an official capacity in the place of that issuing official.

8. Bonds issued in accordance with the provisions of this act shall be a direct obligation of the State of New Jersey, and the faith and credit of the State are pledged for the payment of the interest and redemption premium thereon, if any, when due, and for the payment of the principal thereof at maturity or earlier redemption date. The principal of and interest on the bonds shall be exempt from taxation by the State or by any county, municipality or other taxing district of the State.

9. The bonds shall be signed in the name of the State by means of the manual or facsimile signature of the Governor under the Great Seal of the State, which seal may be by facsimile or by way of any other form of reproduction on the bonds, and attested by the manual or facsimile signature of the Secretary of State, or an Assistant Secretary of State, and shall be countersigned by the facsimile signature of the Director of the Division of Budget and Accounting in the Department of the Treasury and may be manually authenticated by an authenticating agent or bond registrar, as the issuing officials shall determine. Interest coupons, if any, attached to the bonds shall be signed by the facsimile signature of the Director of the Division of Budget and Accounting. The bonds may be issued notwithstanding that an official signing them or whose manual or facsimile signature appears on the bonds or coupons has ceased to hold office at the time of issuance, or at the time of the delivery of the bonds to the purchaser thereof.

10. a. The bonds shall recite that they are issued for the purposes set forth in section 5 of this act, that they are issued pursuant to this act, that this act was submitted to the people of the State at the general election held in the month of November 1996, and that this act was approved by a majority of the legally qualified voters of the State voting thereon at the election. This recital shall be conclusive evidence of the validity of the bonds and of the authority of the State to issue them. Any bonds containing this recital shall, in any suit, action or proceeding involving their validity, be conclusively deemed to be fully authorized by this act and to have been issued, sold, executed and delivered in conformity herewith and with all other provisions of laws applicable hereto, and shall be incontestable for any cause.

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

11. When the bonds are issued, from time to time, the bonds of each issue shall constitute a separate series to be designated by the issuing officials. Each series of bonds shall bear such rate or rates of interest as may be determined by the issuing officials, which interest shall be payable semiannually; except that the first and last interest periods may be longer or shorter, in order that intervening semiannual payments may be at convenient dates.

12. The bonds shall be issued and sold at the price or prices and under the terms, conditions, and regulations as the issuing officials may prescribe, after notice of the sale, published at least once in at least three newspapers published in this State, and at least once in a publication carrying municipal bond notices and devoted primarily to financial news, published in this State or in the city of New York, the first notice to appear at least five days prior to the day of bidding. The notice of sale may contain a provision to the effect that any bid in pursuance thereof may be rejected. In the event of rejection or of failure to receive any acceptable bid, the issuing officials, at any time within 60 days from the date of the advertised sale, may sell the bonds at a private sale at the price or prices and under the terms and conditions that the issuing officials may prescribe. The issuing officials may sell all or part of the bonds of any series as issued to any State fund or to the federal government or any agency thereof, at a private sale, without advertisement.

13. Until permanent bonds are prepared, the issuing officials may issue temporary bonds in the form and with those privileges as to their registration and exchange for permanent bonds as may be determined by the issuing officials.

14. The proceeds from the sale of the bonds shall be paid to the State Treasurer, to be held by the State Treasurer in a separate fund, which shall be known as the "Pinelands Water Resources Protection Trust Fund." The proceeds of this fund shall be deposited in those depositories as may be selected by the State Treasurer to the credit of the fund.

15. a. The moneys in the "Pinelands Water Resources Protection Trust Fund" are specifically dedicated and shall be applied to the cost of the purposes set forth in section 5 of this act. However, no moneys in the fund shall be expended for those purposes, except as otherwise authorized by this act, without the specific appropriation thereof by the Legislature, but bonds may be issued as herein provided, notwithstanding that the Legislature shall not have then adopted an act making a specific appropriation of any of the moneys. Any act appropriating moneys from the "Pinelands Water Resources Protection Trust Fund" shall identify the specific project or projects to be funded by the moneys.

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

c. Pending their application to the purposes provided in this act, the moneys in the "Pinelands Water Resources Protection Trust Fund" may be invested and reinvested as are other trust funds in the custody of the State Treasurer, in the manner provided by law. Net earnings received from the investment or deposit of moneys in the fund shall be paid into the "Pinelands Water Resources Protection Trust Fund ," which earnings may be used by the department and the commission to cover administrative expenses incurred in the issuing of the grants and loans for infrastructure capital projects as provided for in this act. No moneys shall be expended for these administrative purposes without the specific appropriation therefor by the Legislature.

16. If any coupon bond, coupon, or registered bond is lost, mutilated or destroyed, a new bond or coupon shall be executed and delivered of like tenor, in substitution for the lost, mutilated or destroyed bond or coupon, upon the owner furnishing to the issuing officials evidence satisfactory to them of the loss, mutilation or destruction of the bond or coupon, the ownership thereof, and the security, indemnity and reimbursement for expenses connected therewith, as the issuing officials may require.

17. The accrued interest, if any, received upon the sale of the bonds shall be applied to the discharge of a like amount of interest upon the bonds when due. Any expense incurred by the issuing officials for advertising, engraving, printing, clerical, authenticating, registering, legal or other services necessary to carry out the duties imposed upon them by the provisions of this act shall be paid from the proceeds of the sale of the bonds by the State Treasurer, upon the warrant of the Director of the Division of Budget and Accounting in the Department of the Treasury, in the same manner as other obligations of the State are paid.

18. Bonds of each series issued hereunder shall mature, including any sinking fund redemptions, not later than the 35th year from the date of issue of that series, and in amounts as shall be determined by the issuing officials. The issuing officials may reserve to the State by appropriate provision in the bonds of any series the power to redeem any of the bonds prior to maturity at the price or prices and upon the terms and conditions as may be provided in the bonds.

19. The issuing officials may issue refunding bonds in an amount not to exceed the amount necessary to effectuate the refinancing of any bonds issued pursuant to this act, at any time and from time to time, for the purpose of refinancing any bond or bonds issued pursuant to this act, subject to the following provisions:

a. Refunding bonds may be issued at any time prior to the maturity or redemption of the bonds to be refinanced thereby as the issuing officials shall determine.

b. Each series of refunding bonds may be issued in a sufficient amount to pay or to provide for the payment of the principal of the bonds to be refinanced thereby, together with any redemption premium thereon, any interest accrued or to accrue on the bonds to be refinanced to the date of payment of the outstanding bonds, the expense of issuing the refunding bonds and the expenses, if any, of paying the bonds to be refinanced.

c. No refunding bonds shall be issued unless the issuing officials shall first determine that the present value of the aggregate principal amount of and interest on the refunding bonds is less than the present value of the aggregate principal amount of and interest on the bonds to be refinanced thereby; provided, for the purposes of this limitation, present value shall be computed using a discount rate equal to the yield of those refunding bonds, and yield shall be computed using an actuarial method based on a 360-day year with semiannual compounding and upon the price or prices paid to the State by the initial purchasers of those refunding bonds.

d. Any refinancing authorized hereunder may be effected by the sale of the refunding bonds and the application of the proceeds thereof to the immediate payment of the principal of the bonds to be refinanced thereby, together with any redemption premium thereon, any interest accrued or to accrue on those bonds to be refinanced to the date of payment of those bonds, the expenses of issuing the refunding bonds and the expenses, if any, of paying those bonds to be refinanced, or, to the extent not required for that immediate payment, shall be deposited, together with any other moneys legally available therefor, in trust with one or more trustees or escrow agents, which trustees or escrow agents shall be trust companies or national or state banks having powers of a trust company, located either within or without the State, to be applied solely to the payment when due of the principal of, redemption premium, if any, and interest due and to become due on the bonds to be refinanced on or prior to the redemption date or maturity date thereof, as the case may be. The proceeds or moneys so held by the trustees or escrow agents may be invested in government securities, including government securities issued or held in book-entry form on the books of the Department of Treasury of the United States; provided those government securities shall not be subject to redemption prior to their maturity other than at the option of the holder thereof. Except as otherwise provided in this subsection, neither government securities nor moneys so deposited with the trustees or escrow agents shall be withdrawn or used for any purpose other than, and shall be held in trust for, the payment of the principal of, redemption premium, if any, and interest on the bonds to be refinanced thereby; provided that any cash received from the principal or interest payments on those government securities deposited with the trustees or escrow agents, to the extent the cash will not be required at any time for that purpose, shall be paid over to the trustees or escrow agents, and to the extent the cash will be required for that purpose at a later date, shall, to the extent practicable and legally permissible, be reinvested in government securities maturing at times and in amounts sufficient to pay when due the principal of, redemption premium, if any, and interest to become due on the bonds to be refinanced, on and prior to the redemption date or maturity date thereof, as the case may be, and interest earned from those reinvestments, to the extent not required for the payment of bonds, shall be paid over to the State, as received by the trustees or escrow agents. Notwithstanding anything to the contrary contained herein: (1) the trustees or escrow agents shall, if so directed by the issuing officials, apply moneys on deposit with the trustees or escrow agents pursuant to the provisions of this section, and redeem or sell government securities so deposited with the trustees or escrow agents, and apply the proceeds thereof to (a) the purchase of bonds which were refinanced by the deposit with the trustees or escrow agents of the moneys and government securities and immediately thereafter cancel all outstanding bonds so purchased or (b) the purchase of different government securities; provided however, that the moneys and government securities on deposit with the trustees or escrow agents after the purchase and cancellation of the outstanding bonds or the purchase of different government securities shall be sufficient to pay when due the principal of, redemption premium, if any, and interest on all other bonds in respect of which the moneys and government securities were deposited with the trustees or escrow agents on or prior to the redemption date or maturity date thereof, as the case may be; and (2) in the event that on any date, as a result of any purchases and cancellations of the outstanding bonds or any purchases of different government securities as provided in this subsection, the total amount of moneys and government securities remaining on deposit with the trustees or escrow agents is in excess of the total amount which would have been required to be deposited with the trustees or escrow agents on that date in respect of the remaining bonds for which the deposit was made in order to pay when due the principal of, redemption premium, if any, and interest on those remaining bonds, the trustees or escrow agents shall, if so directed by the issuing officials, pay the amount of that excess to the State. Any amounts held by the State Treasurer in a separate fund or funds for the payment of the principal of, redemption premium, if any, and interest on bonds to be refinanced, as provided herein, shall, if so directed by the issuing officials, be transferred by the State Treasurer for deposit with one or more trustees or escrow agents, as provided herein, to be applied to the payment when due of the principal of, redemption premium, if any, and interest to become due on those bonds to be refinanced, as provided in this section, or be applied by the State Treasurer to the payment when due of the principal of, redemption premium, if any, and interest on refunding bonds issued hereunder to refinance those bonds. The State Treasurer is authorized to enter into contracts with one or more trust companies or national or state banks, as provided herein, to act as trustees or escrow agents, as provided herein, subject to the approval of the issuing officials.

e. Notwithstanding the provisions of section 12 of this act, any series of refunding bonds issued pursuant to this section shall mature at any time or times not later than five years following the latest scheduled final maturity date, determined without regard to any redemptions prior thereto, of any of the bonds to be refunded thereby, and in no event later than 35 years following the date of issuance of that series of refunding bonds, and those refunding bonds may be sold at public or private sale at prices and under terms, conditions and regulations as the issuing officials may prescribe. Refunding bonds shall be entitled to all the benefits of this act and subject to all its limitations, except as to the sale provisions and to the extent therein otherwise expressly provided.

f. Upon the decision by the issuing officials to issue refunding bonds pursuant to this section, and prior to the sale of those bonds, the issuing officials shall transmit to the Joint Budget Oversight Committee, or its successor, a report that a decision has been made, reciting the basis on which the decision was made, including an estimate of the debt service savings to be achieved and the calculations upon which the issuing officials relied when making the decision to issue refunding bonds. The report also shall disclose the intent of the issuing officials to issue and sell the refunding bonds at public or private sale and the reasons therefor.

g. The Joint Budget Oversight Committee, or its successor, shall have authority to approve or disapprove the sale of refunding bonds as included in each report submitted in accordance with subsection f. of this section. The committee shall notify the issuing officials in writing of the approval or disapproval as expeditiously as possible.

h. No refunding bonds shall be issued unless the report has been submitted to and approved by the Joint Budget Oversight Committee, or its successor, as set forth in subsection g. of this section.

i. Within 30 days after the sale of the refunding bonds, the issuing officials shall notify the Joint Budget Oversight Committee, or its successor, of the result of that sale, including the prices and terms, conditions and regulations concerning the refunding bonds, the actual amount of debt service savings to be realized as a result of the sale of refunding bonds, and the intended use of the proceeds from the sale of those bonds.

j. The Joint Budget Oversight Committee, or its successor, shall, however, review all information and reports submitted in accordance with this section and may, on its own initiative, make observations and recommendations to the issuing officials, or to the Legislature, or both, as it deems appropriate.

20. Any bond or bonds issued hereunder shall no longer be deemed to be outstanding, shall no longer constitute a direct obligation of the State of New Jersey, and the faith and credit of the State shall no longer be pledged to the payment of the principal of, redemption premium, if any, and interest on the bonds, and the bonds shall be secured solely by and payable solely from moneys and government securities deposited in trust with one or more trustees or escrow agents, which trustees and escrow agents shall be trust companies or national or state banks having powers of a trust company, located either within or without the State, as provided herein, whenever there shall be deposited in trust with the trustees or escrow agents, as provided herein, either moneys or government securities, including government securities issued or held in book-entry form on the books of the Department of Treasury of the United States, the principal of and interest on which when due will provide money which, together with the moneys, if any, deposited with the trustees or escrow agents at the same time, shall be sufficient to pay when due the principal of, redemption premium, if any, and interest due and to become due on the bonds on or prior to the redemption date or maturity date thereof, as the case may be; provided the government securities shall not be subject to redemption prior to their maturity other than at the option of the holder thereof. The State of New Jersey hereby covenants with the holders of any bonds for which government securities or moneys shall have been deposited in trust with the trustees or escrow agents as provided in this section that, except as otherwise provided in this section, neither the government securities nor moneys so deposited with the trustees or escrow agents shall be withdrawn or used by the State for any purpose other than, and shall be held in trust for, the payment of the principal of, redemption premium, if any, and interest to become due on the bonds; provided that any cash received from the principal or interest payments on the government securities deposited with the trustees or escrow agents, to the extent the cash will not be required at any time for that purpose, shall be paid over to the State, as received by the trustees or escrow agents, free and clear of any trust, lien, pledge or assignment securing the bonds; and to the extent the cash will be required for that purpose at a later date, shall, to the extent practicable and legally permissible, be reinvested in government securities maturing at times and in amounts sufficient to pay when due the principal of, redemption premium, if any, and interest to become due on the bonds on and prior to the redemption date or maturity date thereof, as the case may be, and interest earned from the reinvestments shall be paid over to the State, as received by the trustees or escrow agents, free and clear of any trust, lien or pledge securing the bonds. Notwithstanding anything to the contrary contained herein: a. the trustees or escrow agents shall, if so directed by the issuing officials, apply moneys on deposit with the trustees or escrow agents pursuant to the provisions of this section, and redeem or sell government securities so deposited with the trustees or escrow agents, and apply the proceeds thereof to (1) the purchase of the bonds which were refinanced by the deposit with the trustees or escrow agents of the moneys and government securities and immediately thereafter cancel all bonds so purchased, or (2) the purchase of different government securities; provided however, that the moneys and government securities on deposit with the trustees or escrow agents after the purchase and cancellation of the bonds or the purchase of different government securities shall be sufficient to pay when due the principal of, redemption premium, if any, and interest on all other bonds in respect of which the moneys and government securities were deposited with the trustees or escrow agents on or prior to the redemption date or maturity date thereof, as the case may be; and b. in the event that on any date, as a result of any purchases and cancellations of bonds or any purchases of different government securities, as provided in this sentence, the total amount of moneys and government securities remaining on deposit with the trustees or escrow agents is in excess of the total amount which would have been required to be deposited with the trustees or escrow agents on that date in respect of the remaining bonds for which the deposit was made in order to pay when due the principal of, redemption premium, if any, and interest on the remaining bonds, the trustees or escrow agents shall, if so directed by the issuing officials, pay the amount of the excess to the State, free and clear of any trust, lien, pledge or assignment securing the refunding bonds.

21. Refunding bonds issued pursuant to section 19 of this act may be consolidated with other bonds issued pursuant to section 6 of this act or with bonds issued pursuant to any other act for purposes of sale.

22. To provide funds to meet the interest and principal payment requirements for the bonds and any refunding bonds issued under this act and outstanding, there is appropriated in the order following:

a. Revenue derived from the collection of taxes under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.), or so much thereof as may be required; and

b. If, at any time, funds necessary to meet the interest, redemption premiums, if any, and principal payments on outstanding bonds issued under this act, are insufficient or not available, there shall be assessed, levied and collected annually in each of the municipalities of the counties of this State, a tax on the real and personal property upon which municipal taxes are or shall be assessed, levied and collected, sufficient to meet the interest on all outstanding bonds issued hereunder and on the bonds proposed to be issued under this act in the calendar year in which the tax is to be raised and for the payment of bonds falling due in the year following the year for which the tax is levied. The tax shall be assessed, levied and collected in the same manner and at the same time as other taxes upon real and personal property. The governing body of each municipality shall pay to the treasurer of the county in which the municipality is located, on or before December 15 in each year, the amount of tax herein directed to be assessed and levied, and the county treasurer shall pay the amount of the tax to the State Treasurer on or before December 20 in each year.

If on or before December 31 in any year, the issuing officials, by resolution, determine that there are moneys in the General Fund beyond the needs of the State, sufficient to meet the principal of bonds falling due and all interest and redemption premiums, if any, payable in the ensuing calendar year, the issuing officials shall file the resolution in the office of the State Treasurer, whereupon the State Treasurer shall transfer the moneys to a separate fund to be designated by the State Treasurer, and shall pay the principal, redemption premium, if any, and interest out of that fund as the same shall become due and payable, and the other sources of payment of the principal, redemption premium, if any, and interest provided for in this section shall not then be available, and the receipts for the year from the tax specified in subsection a. of this section shall be considered and treated as part of the General Fund, available for general purposes.

23. Should the State Treasurer, by December 31 of any year, deem it necessary, because of the insufficiency of funds collected from the sources of revenues as provided in this act, to meet the interest and principal payments for the year after the ensuing year, then the State Treasurer shall certify to the Director of the Division of Budget and Accounting in the Department of the Treasury the amount necessary to be raised by taxation for those purposes, which is to be assessed, levied and collected for and in the ensuing calendar year. The director shall, on or before March 1 following, calculate the amount in dollars to be assessed, levied and collected in each county as herein set forth. This calculation shall be based upon the corrected assessed valuation of each county for the year preceding the year in which the tax is to be assessed, but the tax shall be assessed, levied and collected upon the assessed valuation of the year in which the tax is assessed and levied. The director shall certify the amount to the county board of taxation and the treasurer of each county. The county board of taxation shall include the proper amount in the current tax levy of the several taxing districts of the county in proportion to the ratables as ascertained for the current year.

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

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

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

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

		PINELANDS WATER RESOURCES PROTECTION BOND ISSUE
	YES	Shall the "Pinelands Water Resources Protection Trust Bond Act," which authorizes the State to issue bonds in the amount of $70,000,000 for the purposes of providing grants and loans to local government units in the Pinelands area for infrastructure capital projects necessary to protect ground and surface waters while accommodating appropriate development in a manner prescribed by law; and in a principal amount sufficient to refinance any of the bonds if the same will result in a present value savings; and providing the ways and means to pay the interest on the debt and also to pay and discharge the principal thereof, be approved?
		INTERPRETIVE STATEMENT
	NO	Approval of this act will authorize the sale of $70,000,000 in State general obligation bonds to be used for grants and loans to counties, municipalities, and other local government authorities or agencies for wastewater treatment and water supply infrastructure systems for the Pinelands area. It will also help to finance water supply planning to protect ground and surface water resources. These infrastructure projects would be approved only upon a finding that the master plan and zoning ordinance of the municipality, and the master plan of the county wherein the project is to take place, have been certified by the Pinelands Commission to be in conformance with the Pinelands Comprehensive Management Plan and that the project conforms with the infrastructure plan adopted by the Pinelands Commission. The act also authorizes the issuance of bonds in a sufficient amount to refinance all or any of these bonds if the same will result in a present value savings.

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

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

25. There is appropriated the sum of $5,000 to the Department of State for expenses in connection with the publication of notice pursuant to section 24 of this act.

26. The commissioner shall submit to the State Treasurer and the commission with the department's annual budget request a plan for the expenditure of funds from the "Pinelands Water Resources Protection Trust Fund" for the upcoming fiscal year. This plan shall include the following information: a performance evaluation of the expenditures made from the fund to date; a description of programs planned during the upcoming fiscal year; a copy of the regulations in force governing the operation of programs that are financed, in part or in whole, by moneys from the fund; and an estimate of expenditures for the upcoming fiscal year.

27. Immediately following the submission to the Legislature of the Governor's annual budget message, the commissioner shall submit to the Senate Budget and Appropriations Committee, the Assembly Appropriations Committee, the Senate Environment Committee, and the Assembly Committee, or their successors, and to the Joint Budget Oversight Committee, or its successor, a copy of the plan called for under section 26 of this act, together with any changes therein as may have been required by the Governor's budget message.

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

29. All appropriations from the bond fund established by this act shall be by specific allocation for each project, and any transfer of funds appropriated from the "Pinelands Water Resources Protection Trust Fund" shall require the approval of the Joint Budget Oversight Committee, or its successor.

30. This section and sections 24 and 25 of this act shall take effect immediately and the remainder of the act shall take effect as provided in section 24.

This bill would provide for the authorization of $70 million in State general obligation bonds to be used for various studies and infrastructure capital projects in the Pinelands.

Of the $70 million authorization, not more than $5 million may be used to prepare an infrastructure plan and an aquifer assessment. The bill requires that both of these endeavors be undertaken by the Pinelands Commission. The infrastructure plan is necessary to determine which projects are needed. The aquifer assessment will allow the Pinelands Commission to determine the impacts of withdrawals and development on the aquifer and thus on the Pinelands ecosystem. An additional $10 million may be used for infrastructure projects designed to eliminate wastewater discharges from leaving the Pinelands. Currently over 100 million gallons per day of Pinelands water leaves the system by way of discharges into the Delaware River and Atlantic Ocean. These withdrawals may add to the depletion of the aquifer. Also, $5 million may be used for loans or grants for small scale infrastructure capital projects designed to service existing public schools, or expansions thereof, which are located outside regional growth areas and town management areas.

The remaining $50 million is to be used for loans or grants to counties, municipalities, or other local authorities or agencies for infrastructure capital projects necessary to accommodate development in regional growth areas in the Pinelands.

Grants and loans also may be provided for local government units in areas other than regional growth areas, if the project would serve a town management area, provided the municipality provides for accommodation of Pinelands development credits in a manner consistent with the comprehensive management plan for the Pinelands.

No project would be approved unless the municipality's master plan and zoning ordinances, and the county's master plan, conform to the comprehensive management plan and the project is on the infrastructure plan.

The bill also requires that the Pinelands Commission adopt regulations permitting municipalities to designate town management areas as receiving areas for Pinelands development credits.

The bill creates the "Pinelands Water Resources Protection Trust Fund" into which the bond proceeds will be deposited and provides that moneys from the fund are conditioned on a project specific appropriation by the Legislature. The Commissioner of Environmental Protection is to submit with the annual budget request a plan for the expenditure of moneys from the bond fund.

The bill provides that the bond act is to be submitted to the people for approval at the general election to be held in November 1996.