[Corrected Copy]
[Third Reprint]
SENATE, No. 1303
STATE OF NEW JERSEY
INTRODUCED JUNE 13, 1996
By Senators LYNCH and GORMLEY
An Act establishing a State municipal property tax lien fund and supplementing Title 52 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. The State Municipal Property Tax Lien Fund (hereinafter referred to as the "fund") is established as a non-lapsing, revolving fund. The fund shall be administered by the Department of Commerce and Economic Development, and shall be credited with all proceeds from the sale or assignment of municipal tax liens pursuant to this section. Interest received on moneys in the fund 2[and sums received as repayment of principal and interest on outstanding loans made from the fund]2 shall be credited to the fund.
The Department of Commerce and Economic Development, in the administration of the fund, is authorized to assign to the New Jersey Economic Development Authority the responsibility for the purchase or assignment of property tax liens held by a municipality, the issuance of debt secured by such liens, and the sale of purchased or assigned tax liens, either individually or in bulk. The department is further authorized to pay or reimburse the authority in the amounts as the department agrees are appropriate for all services rendered by the authority in connection with any assignment of responsibility under the terms of this section out of moneys held in the fund for the purchase of municipally held property tax liens.
The authority, if assigned responsibility by the department, is authorized to service liens held by the fund, foreclose liens, and manage, sell and own property for the benefit of the fund. The authority is further authorized to contract with private vendors for 3[the servicing of liens held by] management activities in conjunction with 3 the fund or the management of property owned by the authority for the benefit of the fund.
2Foreclosure of the right of redemption of property from a tax sale undertaken following the purchase or assignment of municipal tax liens held by the fund pursuant to this section may be conducted In Personam or In Rem pursuant to the provisions of the “In Rem Foreclosure Act (1948),” P.L.1948, c.96 (C.54:5-104.29 et seq.), notwithstanding any other provisions of that act to the contrary. If the authority proceeds on a foreclosure In Rem pursuant to P.L.1948, c.96 (C.54:5-104.29 et seq.), the authority may proceed only if the foreclosure is required 3[as a preliminary action]3 for a specific economic development project 3[and the foreclosure is] or a redevelopment project 3 approved by a resolution of the municipal governing body in which the property is located.2
b. Moneys in the fund 2[shall] may2 be allocated and used for the following purposes 2[and no others]2:
(1) 2[Purchase of property tax liens held by a municipality, either individually or in bulk] Payments of notes or bonds issued2 1pursuant to 2section 4 of2 P.L.1993, c.325 (C.54:5-113.4)1; 2[and]2
(2) 1[Loans] Subsequent tax payments1 to a municipality secured by property tax liens held by 1[that municipality.] the fund; 2[and]2
(3) To secure debt for redevelopment projects or economic development projects located in a municipality participating in the fund 2; and
(4) Purchase of property tax liens held by municipalities pursuant to section 2 of P.L.1993, c.113 (C. 54:5-113.1)2.1
c. The fund may accept the assignment or transfer, either for value or not for value, of property tax liens held by a municipality.
d. The fund may be temporarily funded initially by other moneys of the authority upon such terms as are approved by the Commissioner of Commerce and Economic Development.
2e. The provisions of the “Industrial Site Recovery Act,” P.L.1983, c.330 (C.13:1K-6 et seq.), shall not apply to the Department of Commerce and Economic Development or the New Jersey Economic Development Authority if foreclosure proceedings for the right of redemption of property from tax sales are pursued following the purchase or assignment of municipal tax liens pursuant to this section.
f. A bulk sale shall not be conducted by the department or the authority until after the municipal tax liens shall have first been offered for sale, by either the municipality or the department or authority, individually in the municipality in which the property is located in a manner prescribed by R.S.54:5-19 et seq.2
2. The Commissioner of Commerce and Economic Development shall adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations necessary to effectuate the purposes of this act.
3. This act shall take effect immediately.
Establishes State Municipal Property Tax Lien Fund.