[Third Reprint]

SENATE, No. 1683

 

STATE OF NEW JERSEY

 

INTRODUCED NOVEMBER 7, 1996

 

 

By Senators CAFIERO, GORMLEY, DiFrancesco, O'Connor, Lynch and Adler

 

 

An Act concerning the imposition of certain taxes on retail receipts for the funding of the projects of certain tourism improvement and development authorities 2and the membership and powers of those authorities2, amending 2and supplementing2 P.L.1992, c.165 and supplementing P.L.1966, c.30.

 

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

 

    21. Section 3 of P.L. 1992, c. 165 (C.40:54D-3) is amended to read as follows:

    3. As used in this act:

    "Authority" means a tourism improvement and development authority created pursuant to section 18 of this act, P.L.1992, c.165 (C.40:54D-18).

    "Bond" means any bond or note issued by an authority pursuant to the provisions of this act.

    ["Commissioner" means the Commissioner of Commerce, Energy and Economic Development.]

    "Construction" means the planning, designing, construction, reconstruction, rehabilitation, replacement, repair, extension, enlargement, improvement and betterment of a project, and includes the demolition, clearance and removal of buildings or structures on land acquired, held, leased or used for a project.

    "Convention center facility" means any convention hall or center or like structure or building, and shall include all facilities, including commercial, office, community service, parking facilities and all property rights, easements and interests, and other facilities constructed for the accommodation and entertainment of tourists and visitors, constructed in conjunction with a convention center facility and forming reasonable appurtenances thereto.

    "Tourism project" means the convention center facility or [similar tourism improvement or development project] outdoor special events arena, or both, located in the territorial limits of the district, and any costs associated therewith.

    "Cost" means all or any part of the expenses incurred in connection with the acquisition, construction and maintenance of any real property, lands, structures, real or personal property rights, rights-of-way, franchises, easements, and interests acquired or used for a project; any financing charges and reserves for the payment of principal and interest on bonds or notes; the expenses of engineering, appraisal, architectural, accounting, financial and legal services; and other expenses as may be necessary or incident to the acquisition, construction and maintenance of a project, the financing thereof and the placing of the project into operation.

    "County" means a county of the sixth class.

    ["Department" means the Department of Commerce, Energy and Economic Development.]

    "Director" means the Director of the Division of Taxation in the Department of the Treasury.

    "Fund" means a Reserve Fund created pursuant to section 13 of this act, P.L.1992, c.165 (C.40:54D-13).

    "Outdoor special events arena" means a facility or structure for the holding outdoors of public events, entertainments, sporting events, concerts or similar activities, and shall include all facilities, property rights and interests, and all appurtenances reasonably related thereto, constructed for the accommodation and entertainment of tourists and visitors.

    "Participant amusement" means a sporting activity or amusement the charge for which is exempt from taxation under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.) by virtue of the participation of the patron in the activity or amusement, such as bowling alleys, swimming pools, water slides, miniature golf, boardwalk or carnival games and amusements, baseball batting cages, tennis courts, and fishing and sightseeing boats.

    "Predominantly tourism related retail receipts" means:

    a. The rent for every occupancy of a room or rooms in a hotel subject to taxation pursuant to subsection (d) of section 3 of the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-3);

    b. Receipts from the sale of food and drink in or by restaurants, taverns, or other establishments in the district, or by caterers, including in the amount of such receipt any cover, minimum, entertainment or other charge made to patrons or customers, subject to taxation pursuant to subsection (c) of section 3 of the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-3) but excluding receipts from sales of food and beverages sold through coin operated vending machines; and

    c. Admissions charges to or the use of any place of amusement or of any roof garden, cabaret or similar place, subject to taxation pursuant to subsection (e) of section 3 of the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-3).

    "Purchaser" means any person purchasing or hiring property or services from another person, the receipts or charges from which are taxable by an ordinance authorized under this act, P.L.1992, c.165 (C.40:54D-1 et seq.).

    "Tourism" means activities involved in providing and marketing services and products, including accommodations, for nonresidents and residents who travel to and in New Jersey for recreation and pleasure.

    "Tourism development fee" means a fee imposed by ordinance pursuant to section 15 of this act, P.L.1992, c.165 (C.40:54D-15), within a tourism improvement and development district on:

    a. Persons making sales of tangible personal property or services, the receipts from which are subject to the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.), but which are not predominately tourism related retail receipts as defined in this section;

    b. Persons making charges for participant amusements as defined in this section;

    c. Persons operating businesses that charge for parking, garaging or storing of motor vehicles;

    d. Persons maintaining or operating coin-operated vending machines within the district, for the machines within the district, regardless of the types of commodities sold through the machines; and

    e. Persons making sales of tangible personal property or services, the receipts from which are subject to the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.), and which are predominately tourism related retail receipts as defined in this section, but only to the extent that the amount of tax on those receipts collected in a year by the person is less than the amount of the tourism development fee for that year.

    "Tourism improvement and development district" or "district" means an area within two or more contiguous municipalities within a county of the sixth class established pursuant to ordinance enacted by those municipalities, for the purposes of promoting the acquisition, construction, maintenance, operation and support of a tourism project, and to devote the revenue and the proceeds from taxes upon predominantly tourism related retail receipts and from tourism development fees to the purposes as herein defined.

    "Tourist industry" means the industry consisting of private and public organizations which directly or indirectly provide services and products to nonresidents and residents who travel to and in New Jersey for recreation and pleasure.

    "Vendor" means a person selling or hiring property or services to another person, the receipts or charges from which are taxable by an ordinance authorized under this act, P.L.1992, c.165 (C.40:54D-1 et seq.).2

(cf: P.L.1992, c.165, s.3)

 

    2[1.] 2.2 Section 4 of P.L.1992, c.165 (C.40:54D-4) is amended to read as follows:

    4. a. Two or more contiguous municipalities located in a county of the sixth class may, by ordinances of a substantially similar nature, create a tourism improvement and development district for the purpose of increasing public revenue and to levy taxes upon predominantly tourism related retail receipts at a rate not to exceed [2 percent] five percent, until certification by the director pursuant to subsection e. of section 9 of P.L.1992, c.165 (C.40:54D-9), and thereafter at a rate not to exceed 4 percent2, until the first day of the third month following the certification by the State Treasurer that all payments for bonds issued pursuant to section 20 of P.L. , c. (C. ) (now pending before the Legislature as this bill) have been made, and thereafter at a rate not to exceed 2 percent2, and to devote the proceeds therefrom for the purposes herein described. 3[2The ordinances shall provide that to the extent that the revenues derived annually from the taxes so levied in the district exceed $6,250,000 in any year prior to certification by the director pursuant to that subsection e., or $5,500,000 in any year thereafter, the excess revenues shall not be used for the purposes of the district but shall be deposited in the State General Fund to be used for general State purposes.]3 Municipal ordinances so adopted shall not affect which retail receipts are subject to the "Sales and Use Tax Act."

    A rate of tax in excess of 2 percent shall be permitted only in a district in which each municipality that enters into the creation of the district and each municipality entering the district after creation does not impose a fee in excess of $2 per day for general public access to the beaches located within those municipalities. If any of those municipalities creating the district or the municipalities entering the district after creation impose a fee in excess of $2 per day for general public access to the beaches within those municipalities in any calendar year, the tax rate upon predominantly tourism related retail receipts within the district shall automatically be considered reduced to a rate of 2 percent and this rate shall be deemed effective as of the first day of the second month following a determination by the State Treasurer that a beach fee in any of the municipalities exceeded $2 per day for general public access.2

    For the same purposes, the ordinances establishing the district shall also provide for the imposition of tourism development fees authorized pursuant to section 15 of this act, P.L.1992, c.165 (C.40:54D-15). The taxes on predominantly tourism related retail receipts and tourism development fees so imposed shall be uniform throughout the district.

    b. Notwithstanding any other law to the contrary, ordinances so adopted shall not be subject to referenda, and shall not be altered or repealed, except by mutual action of all such municipalities. Each municipality which enters into the creation of the district shall covenant that the ordinance2, or a condition imposed by statute that each municipality is required to meet,2 shall not be altered or repealed in such manner as to affect any bonds or other obligations pertaining to projects within the district which are outstanding.

    c. The district shall comprise all territory within the boundaries of the municipalities which create or enter into the district.

    d. A contiguous municipality located in a county of the sixth class may, by such an ordinance, and with the mutual consent of the governing bodies of the municipalities which created the district, enter into the district so created after the date of the district's creation.

    e. A copy of an ordinance adopted pursuant to this section shall be transmitted upon adoption or amendment to the State Treasurer. An ordinance so adopted or any amendment thereto shall provide that the retail receipts tax provisions of the ordinance or any amendment to the retail receipts tax provisions shall take effect on the first day of the first full month occurring 90 days after the date of transmittal to the State Treasurer.

(cf: P.L.1992, c.165, s.4)

 

    2[2.] 3.2 Section 9 of P.L.1992, c.165 (C.40:54D-9) is amended to read as follows:

    9. a. A vendor required to collect the tax upon predominantly tourism related retail receipts imposed pursuant to this act shall on or before the dates required pursuant to section 17 of P.L.1966, c.30 (C.54:32B-17), forward to the director the tax collected in the preceding month and make and file a return for the preceding month with the director on any form and containing any information as the Director of the Division of Taxation in the Department of the Treasury shall prescribe by rule or regulation as necessary to determine liability for the tax in the preceding month during which the person was required to collect the tax.

    b. The director may permit or require returns to be made covering other periods and upon any dates as the director may specify. In addition, the director may require payments of tax liability at any intervals and based upon any classifications as the director may designate. In prescribing any other periods to be covered by the return or intervals or classifications for payment of tax liability, the director may take into account the dollar volume of tax involved as well as the need for ensuring the prompt and orderly collection of the tax imposed.

    c. The director may require amended returns to be filed within 20 days after notice and to contain the information specified in the notice.

    d. The director shall inform the authority for each month in which this tax is collected and returns made of the amount so collected in each month.

    e. From the date that substantially similar amendments to municipal ordinances to increase the tax rate 2in excess of a rate of 2 percent2 pursuant to P.L. , c. (C. ) (now pending before the Legislature as this bill), take effect in all municipalities in the district, the director shall maintain a running total of the amounts collected under the tax until such month as 20 percent of the amount collected under the increased tax rate equals the total amount collected under the tax during the time the tax was levied at a 2 percent rate pursuant to P.L.1992, c.165 (C.40:54D-1 et seq.). The director shall, within 10 days of the receipt of that amount of tax collected, certify to the governing body of each municipality in the district that such amount has been collected.

(cf: P.L.1992, c.165, s.9)

 

    24. Section 12 of P.L.1992, c.165 (C.40:54D-12) is amended to read as follows:

    12. [All] Of the revenues collected annually by the director under an ordinance adopted and authorized pursuant to this act, P.L.199, c.165 (C.40:54D-1 et seq.), an amount not to exceed $6,250,000 in any year prior to certification by the director pursuant to subsection e. of section 9 of P.L.1992, c.165 (C.40:54D-9), or $5,500,000 in any year thereafter, after deduction of administrative costs as provided herein, shall be retained by the State Treasurer for deposit in the fund established pursuant to section 13 of this act, P.L.1992, c.165 (C.40:54D-13), to be used and distributed according to the terms herein provided. Amounts collected in excess of such amounts shall not be deposited to the fund but shall be deposited in the State General Fund to be used for general State purposes.

    The State Treasurer may deduct from amounts so retained prior to deposit in the fund an amount equal to that necessary to compensate the Department of the Treasury for costs actually incurred by that department in administering the provisions of this act. The State Treasurer shall annually provide the authority to which the fund pertains with a written account of the amounts so deducted and of the costs so incurred in the previous fiscal year. Amounts deducted by the State Treasurer shall be retained by the Department of the Treasury and used exclusively for costs so incurred.2

(cf: P.L.1992, c.165, s.12)


    2[13.] 5.2 Section 14 of P.L.1992, c.165 (C. 40:54D-14) is amended to read as follows:

    14. a. Until such time as the conditions set forth in subsection b. of this section are met, the revenues deposited by the State Treasurer in the fund shall be applied for the purposes of financing the provision, advertising, promotion, improvement and operation of the tourism project within the district, and the acquisition, maintenance, operation and support of the tourism project designated by the authority authorized to undertake those activities pursuant to section 18 of this act, P.L.1992, c.165 (C.40:54D-18); provided however, that all funds derived from taxes upon predominantly tourism related retail receipts 2[, to the extent that the revenues are derived from taxes imposed at rates in excess of 2 percent,]2 shall be used solely for the costs of capital construction or for the issuance of bonds for the acquisition, construction, maintenance and operation of a capital construction project and the payment of interest and principal on such bonds 2, except as provided for operating expenses of the authority in subsection b. of section 20 of P.L. , c. (C. ) (now pending before the Legislature as this bill)2.

    b. Commencing on that date which is the later of (1) July 1, 1993, or (2) six months prior to the first date on which any payment of principal or interest on any bonds or notes issued for, or any payment of rent under any lease entered into 2[by the authority]2 in connection with the acquisition, construction, reconstruction, maintenance, operation or support of a convention center facility or other tourism project to accomplish the purposes 2[of the authority as]2 set forth in section 21 of this act, P.L.1992, c.165 (C.40:54D-21), are required to be made from the revenues collected pursuant to section 4 of this act, P.L.1992, c.165 (C.40:54D-4), the revenues thereafter retained by the State Treasurer pursuant to section 12 of this act, P.L.1992, c.165 (C.40:54D-12), shall be applied exclusively in accordance with the provisions of the resolution or resolutions authorizing the issuance of bonds 2[ by the authority]2 for that tourism project, to the payment of principal of and interest on bonds so issued, the maintenance of necessary reserves and the allocation of monies for future debt service payments. On that date which is the later date determined pursuant to paragraph 1 or 2 of this subsection, all monies then accumulated in the fund shall be removed by the State Treasurer and the proceeds, with the interest thereon, shall be used for any of the purposes set forth in subsection a. of this section.

    c. 2[ At the end of any full calendar year occurring after the date which is the later date determined pursuant to paragraph 1 or 2 of subsection b. of this section and after all payments coming due during that calendar year of principal and interest on authority bonds or notes issued for a tourism project have been made, and all obligations to the holders of those bonds have been met, including the maintenance of necessary reserves and the allocation of monies for future debt service payments, any balance remaining in the fund in that calendar year shall be applied to any deficiency between the operating expense budget and the anticipated operating revenues available for the following fiscal year to the entity operating the tourism project.](Deleted by amendment, P.L. , c. (now pending before the Legislature as this bill).)2

    d. At the end of each full calendar year occurring after the date which is the later date determined pursuant to paragraph 1 or 2 of subsection b. of this section and after all payments for that year have been made from the fund pursuant to 2[subsections b. and c. of]2 this section, any monies remaining in the fund in that calendar year shall be used for the purposes set forth in subsection a. of this section.

    e. Pending application to the purposes for which monies deposited in the fund may be used, the monies in the fund shall be invested by the State Treasurer pursuant to applicable regulations prescribed for the investment of State monies. Any income received from these investments shall be added to the fund from which earned, and used only for the purposes of the fund.1

(cf: P.L.1992, c.165, s.14)

 

    26. Section 18 of P.L.1992, c.165 (C.40:54D-18) is amended to read as follows:

    18. a. Ordinances adopted to create a tourism improvement and development district pursuant to this act, P.L.1992, c.165 (C.40:54D-1 et seq.) shall provide for the creation of a public body corporate and politic for the district, under the name and style of "the Tourism Improvement and Development Authority."

    b. Copies of the ordinances for the creation of the authority or amendments thereof shall be filed in the office of the Secretary of State and in the office of the Division of Local Government Services in the Department of Community Affairs. A copy of the certified ordinance or amendment shall be admissible in evidence in any action or proceeding and shall be conclusive evidence of due and proper adoption and filing thereof. After filing in the office of the Secretary of State, a copy of the ordinance or amendment shall be published at least once in a newspaper published or circulating in the adopting municipalities, together with a notice stating the fact and date of its adoption and the date of first publication of the notice. If no action questioning the validity of the creation of the authority is commenced within 45 days after the first publication of the notice, then the authority shall be conclusively deemed to have been validly created and authorized to transact business and exercise powers pursuant to this act, P.L.1992, c.165 (C.40:54D-1 et seq.).

    c. An authority so established shall be subject to the provisions of the "Local Authorities Fiscal Control Law," P.L.1983, c.313 (C.40A:5A-1 et seq.), except that the creation of the authority shall not be subject to approval of the Local Finance Board in the Department of Community Affairs.2

(cf: P.L.1992, c.165, s.18)

 

    27. Section 19 of P.L.1992, c.165 (C.40:54D-19) is amended to read as follows:

    19. The governing bodies of the municipalities which created an authority pursuant to this act, P.L.1992, c.165 (C.40:54D-1 et seq.) may by ordinance, dissolve the authority pursuant to the "Local Authorities Fiscal Control Law," P.L.1983, c.313 (C.40A:5A-1 et seq.) , except that the authority shall not be dissolved prior the date certified by the State Treasurer that all payments for bonds issued by the State authority pursuant to section 20 of P.L. , c. (C. ) (now pending before the Legislature as this bill) have been made.2

(cf: P.L.1992, c.165, s.19)

 

    28. Section 20 of P.L. 1992, c. 165 (C.40:54D-20) is amended to read as follows:

    20. a. The authority shall consist of 3[nine] eleven3 members. After the expiration of the period of 45 days following the first publication of the creating ordinances or amendments to those ordinances adopted pursuant to P.L. , c. (C. ) (now pending before the Legislature as this bill), the governing body of each municipality joining in the creation of the tourism improvement and development district shall appoint the [first] municipal members to the authority. Each municipality shall be entitled to appoint [three members]one member to the authority. [Two of the three members so appointed shall be owners, or employees of vendors, for whom a regular part of a dominant line of their business generates retail receipts subject to taxation or who are subject to payment of municipal fees pursuant to this act, P.L.1992, c.165 (C.40:54D-1 et seq.). The remaining member appointed by each municipality shall be a resident of the municipality who is not such an owner or employee of a vendor. No member shall hold any elective public office] The member shall be appointed by the mayor of the municipality, and may be the mayor or other officer of the municipality.

    b. The [Commissioner of the Department of Commerce, Energy and Economic Development] State Treasurer 3and the Director of the Division of Travel and Tourism in the Department of Commerce and Economic Development3 shall be 3[an]3 ex officio 3[member] members3 of the authority.

    c. The Governor shall appoint, with the advice and consent of the Senate, 3[five]six3 members to the authority3[, at least two of whom shall be residents] as follows: three public members who shall each be a resident of a different municipality joining in the creation of the district; and three tourism business members who shall each be a resident of a different municipality joining in the creation3 of the tourism improvement and development district 3[who are owners, or employees of vendors] and be an owner, or an employee of a vendor3 , for whom a regular part of a dominant line of 3[their]3 business generates retail receipts subject to taxation or who 3[are] is3 subject to payment of municipal 3[fees] fee3 pursuant to P.L.1992, c.165 (C.40:54D-1 et seq.). No more than three of the members so appointed shall be members of the same political party.

    d. The terms of office of all members of the authority serving on the effective date of P.L. , c. (C. ) (now pending before the Legislature as this bill) shall terminate 45 days following the publication of amendments to the creating ordinances adopted pursuant to P.L. , c. (C. ) as provided for in subsection a. of this section and, thereafter, the Governor and the municipalities within the district shall proceed to appoint members as provided by this section.

    e. Each member of the authority shall serve for a term of 3[four] three3 years, except of the members initially appointed by the Governor, 3[two] one public member and one tourism business member shall be appointed for a term of one year,one public member and one tourism business member3 shall be appointed for a term of two years and [one] 3[three] one public member and one tourism business member3 shall be appointed for a term of 3[four] three3 years3, and of the members initially appointed by the municipalities, one municipality shall appoint for a term of one year, one for a term of two years and one for a term of three years, as shall be determined by agreement of the mayors of the municipalities or by rank in population of the municipalities from least to greatest3. Each member shall hold office for the term of the member's appointment and until the member's successor is appointed and qualified. A member shall be eligible for reappointment. A 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.

    [d.]f. The [commissioner] State Treasurer may designate an employee of the [department] Department of the Treasury3, and the Director of the Division of Travel and Tourism may designate an employee of the division,3 to represent the member at meetings of the authority. The designee of the member may lawfully vote and otherwise act on behalf of the member. The designation shall be made annually in writing and delivered to the authority and shall be effective until revoked or amended by written notice delivered to the authority.

    [e.]g. 3The Governor shall designate one of the Governor's appointees to serve as chairman at the pleasure of the Governor.3 The authority, upon the first appointment of its members and thereafter at the same time in each year, shall annually elect from among its members, 3[a chairman and]3 a vice-chairman who shall hold office until a successor is elected. The authority may also appoint and employ, without regard to the provisions of Title 11A of the New Jersey Statutes, an executive director and other agents and employees as the authority may require, and shall determine their qualifications, terms of office, duties and compensation thereof.

    [f.]h. The powers of the authority shall be vested in the voting members thereof in office from time to time; a majority of the members of the authority shall constitute a quorum and the affirmative vote of a majority of the full membership shall be necessary for any action taken by the authority unless the bylaws of the authority shall require a larger number. No vacancy in the membership of the authority shall impair the right of a quorum to exercise all the rights and perform all the duties of the authority.

    [g.] i. The members of the authority shall serve without compensation, but the authority may reimburse its members for actual and necessary expenses incurred in the discharge of their duties.

    [h.] j. Each appointed member of the authority may be removed by the appointing authority for cause after a public hearing and may be suspended by the authority pending the completion of the hearing. Each member of the authority before entering upon the duties of office shall take and subscribe an oath to perform the duties of the office faithfully, impartially, prudently and justly to the best of the member's ability. A record of these oaths shall be filed in the office of the Secretary of State.

    k. 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 the meeting by the authority shall take effect until 15 days after the copy of the minutes is so delivered unless during that 15 day period the Governor approves the same, in which case the action shall take effect upon that approval. If in that 15 day period, the Governor returns the copy of the minutes with veto of any action taken by the authority, that action shall be null and void.2

(cf: P.L.1992, c.165, s.20)

 

    29. Section 21 of P.L.1992, c.165 (C.40:54D-21) is amended to read as follows:

    21. The public purpose of an authority shall be to undertake a tourism project which is necessary or useful to the economic development and public welfare of the residents and tourist industry of the creating municipalities, and to promote, advertise and enhance the attractiveness of the district to visitors and tourists. An authority shall have the following powers:

    a. To adopt bylaws for the regulation of its affairs and the conduct of its business;

    b. To adopt an official common seal and alter it at its pleasure;

    c. To maintain an office at a place or places within the district as it may designate;

    d. To sue and be sued in its own name;

    e. To acquire from any predecessor owner or operator, and to construct, reconstruct, maintain, and operate a convention center facility or other tourism project;

    f. [To]Except as otherwise provided in P.L. , c. (C. ) (now pending before the Legislature as this bill), to issue bonds or notes of the authority for the purposes of this act and to provide for the rights of the holders thereof all as provided in the "Local Bond Law," N.J.S.40A:2-1 et seq.;

    g. To set and collect rents, fees, charges or other payments for the lease, use, occupancy or disposition of a convention center facility or other tourism project acquired, constructed or reconstructed by the authority pursuant to the provisions of this act, P.L.1992, c.165 (C.40:54D-1 et seq.). Any revenues collected shall be available to the authority for use in furtherance of any of the purposes of this act;

    h. To acquire, lease as lessee or lessor, own, rent, use, hold and dispose of real property and personal property or any interest therein, in the exercise of its powers and the performance of its duties under this act;

    i. To acquire in the name of the authority by purchase, gift or otherwise, on terms and conditions and in a manner as the authority may deem proper, or by the exercise of the power of eminent domain except as against the State of New Jersey, any land and other property which the authority may determine is necessary for the construction, reconstruction, maintenance, operation or support of [a convention center facility] tourism projects pursuant to the provisions of this act, P.L.1992, c.165 (C.40:54D-1 et seq.) or parts thereof or rights therein, and any fee simple absolute or any lesser interest in private property, and any fee simple absolute in, easements upon, or the benefit of restrictions upon abutting property to preserve and protect same;

    j. To grant by franchise, lease or otherwise, the use of any property owned and controlled by the authority to any person for the consideration and for the period or periods of time and upon terms and conditions as are agreed upon;

    k. To apply for, receive and accept from the United States of America or any agency thereof, or the State and any subdivision thereof, subject to the approval of the State Treasurer, grants for or in aid of the planning, acquisition or construction of a convention center facility or other tourism project, and to receive and accept aid or contributions from any other public or private source, of either money, property, labor or other things of value, to be held, used and applied only for the purposes for which those grants and contributions may be made;

    l. Subject to the limitations of this act, to determine the location, type and character of its tourism project and all other matters in connection therewith;

    m. [To] Except as otherwise provided in section 20 of P.L. , c.      (C. ) (now pending before the Legislature as this bill), to enter into contracts or agreements with any entity for the entity to issue bonds or notes on behalf of the authority and to make payments to the entity to secure those bonds or notes;

    n. To procure and enter into contracts for any type of insurance and indemnify against loss or damage to property from any cause, including the loss of use and occupancy and business interruption, death or injury of any person, employee liability, any act of any member, officer, employee or servant of the authority, whether part-time, compensated or uncompensated, in the performance of the duties of office or employment or any other insurable risk or any other losses in connection with property, operations, assets or obligations in any amounts and from any insurers as are deemed desirable. In addition, the authority may carry its own liability insurance;

    o. To promote and advertise the district and to promote the use of the [ convention center facility]tourism projects by tourists and visitors to the district; and

    p. To enter into any and all agreements or contracts, execute any and all instruments, and do and perform any and all acts or things necessary, convenient or desirable for the purposes of the authority or to carry out any power expressly given in this act.2

(cf: P.L.1992, c.165, s.21)

 

    210. Section 22 of P.L. 1992, c. 165 (C.40:54D-22) is amended to read as follows:

    22. All purchases, contracts or agreements made by the authority pursuant to this act, P.L.1992, c.165 (C.40:54D-1 et seq.) shall be made or awarded pursuant to the "Local Public Contracts Law," P.L.1971, c.198 (C.40A:11-1 et seq.).2

(cf: P.L.1992, c.165, s.22.)

 

    211. Section 23 of P.L. 1992, c. 165 (C.40:54D-23) is amended to read as follows:

    23. Any convention center facility or other tourism project [constructed by] of the authority shall be maintained and kept in the condition and repair as the authority determines, or the bond covenants require. A project or any part thereof may be policed and operated by employees and other persons as the authority may employ or authorize.2

(cf: P.L.1992, c.165, s.23)

 

    212. Section 25 of P.L.1992, c.165 (C.40:54D-25) is amended to read as follows:

    25. a. [ The] Except as otherwise provided in section 20 of P.L.           , c. (C. ) (now pending before the Legislature as this bill), the authority may from time to time issue its bonds or notes for any of its purposes under this act, including the payment, funding, or refunding of principal 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 have or have not become due. Bonds and notes so issued shall be subject to the "Local Bond Law," N.J.S.40A:2-1 et seq. and the "Local Authorities Fiscal Control Law," P.L.1983, c.313 (C.40A:5A-1 et seq.).

    b. Except as may be otherwise expressly provided by the authority, every issue of bonds or notes shall be general obligations payable out of any monies or revenues of the authority, subject only to any agreements with the holders of particular bonds or notes pledging any particular revenues or funds. The authority may issue the types of bonds or notes as it may determine, including, without limiting the generality of the foregoing, bonds or notes on which the principal and interest are payable: (1) exclusively from the income and revenues derived from a tax upon retail receipts of any vendor located within the tourism improvement and development district created pursuant to the provisions of section 4 of this act, P.L.1992, c.165 (C.40:54D-4); (2) exclusively from the income and revenues from rates, charges and fees of a convention center facility or other tourism project operated by the authority, whether or not the project is financed in whole or in part with the proceeds of the bonds or notes; or (3) from its revenues generally. Any bonds or notes may be additionally secured by a pledge of any grant or contribution from the federal government or any State or any agency or public subdivision thereof or any person or a pledge of any monies, income or revenues of the authority from any source whatsoever. In addition, the authority may, in anticipation of the issuance of the bonds or the receipt of appropriations, grants, reimbursements or other funds, including without limitation grants from the federal government, issue notes, the principal of or interest on which, or both, shall be payable out of the proceeds of notes, bonds or other obligations of the authority or appropriations, grants reimbursements or other funds or revenues of the authority.2

(cf: P.L.1992, c.165, s.25.)

 

    213. Section 27 of P.L.1992, c.165 (C.40:54D-27) is amended to read as follows:

    27. a. Within 30 days after the issuance of any bonds or notes [for, or the execution of lease in connection with, the acquisition, construction, reconstruction or improvement of a convention center facility or other tourism project] by the authority pursuant to this act, P.L.1992, c.165 (C.40:54D-1 et seq.), the authority shall file a report with the Local Finance Board setting forth, if applicable, the principal amount of bonds or notes issued [for that project,] and the annual payments of principal and interest to be made on the bonds or notes[ with respect to that project, the terms and provisions of the financing undertaken for, or the lease entered into in connection with, the project, and such engineering and feasibility studies as may have been commissioned and used by the authority in connection with financing the project].

    b. At least 90 days prior to the date which is the later date determined pursuant to paragraph 1 or 2 of subsection b. of section 14 of [this act] P.L.1992, c.165 (C.40:54D-14), an authorized officer of the authority issuing bonds or notes for, or entering into a lease in connection with, the acquisition, construction, reconstruction or improvement of the convention center facility or other tourism project shall notify the Director of the Division of Local Government Services in the Department of Community Affairs of the precise date determined pursuant to subsection b. of section 14 of [this act] P.L.1992, c.165, the amounts payable thereafter: (1) on account of the principal and interest on, or reserve funding requirements on, those bonds or notes; or (2) as rent under the lease, and the name and address of the paying agent or agents for the bonds or notes, or of the lessor under the lease. The director shall, upon the receipt of that notice, verify the facts contained therein, and certify the same to the State Treasurer.

    c. Following the certification in subsection b. of this section and upon the date set forth therein, the State Treasurer shall thereafter pay prior to each payment date from the fund the amounts certified to be paid: (1) to the appropriate paying agent or agents for the principal and interest on, or reserve funding requirements on, the bonds or notes; or (2) to the lessor as rent under the lease.

    d. With respect to the acquisition, construction, reconstruction or improvement of a tourism project, the authorized officer of the State authority designated under section 20 of P.L. , c. (C. ) (now pending before the Legislature as this bill) shall notify the State Treasurer on the precise date determined pursuant to subsection b. of section 14 of P.L.1992, c. 165 (C.40:54D-14) of the amounts payable thereafter, and the State Treasurer shall thereafter pay prior to each payment date from the fund the amounts required to be paid as provided in subsection c. of this section.2

(cf: P.L.1992, c.165, s.27)


    214. Section 29 of P.L.1992, c.165 (C.40:54D-29) is amended to read as follows:

    29. The State of New Jersey does hereby pledge to and covenant and agree with the holders of any bonds or notes issued by [the] an authority [or other entity] pursuant to the provisions of this act, P.L.1992, c.165 (C.40:54D-1 et seq.) that the State will not limit or alter the rights or powers vested in [the] an authority to acquire, construct, maintain and operate any project, or to perform and fulfill the terms of any agreement made with the holders of the bonds or notes, or to fix, establish, charge and collect rates, fees or other charges as may be convenient or necessary to produce sufficient revenues to meet all expenses of [the ] that authority and fulfill the terms of any contract with another entity or any agreement made with the holders of the bonds or notes, and that the State will not in any way impair the rights or remedies of the holders or modify in any way the exemptions from taxation provided for in this act, until the bonds and notes, together with interest thereon, with interest on any unpaid installments of interest, and all costs and expenses in connection with any action or proceedings by or on behalf of such holders, are fully met and discharged or provided for.2

(cf: P.L.1992, c.165, s.29)

 

    215. Section 30 of P.L.1992, c.165 (C.40:54D-30) is amended to read as follows:

    30. Neither the members of [the] an authority nor any person executing bonds or notes issued pursuant to this act, P.L.1992, c.165 (C.40:54D-1 et seq.) shall be liable personally on the bonds or notes by reason of the issuance thereof.2

(cf: P.L.1992, c.165, s.30)

 

    216. Section 32 of P.L.1992, c.165 (C.40:54D-32) is amended to read as follows:

    32. In addition to the other powers conferred by this act or by any other law and not in limitation thereof, the relevant authority, in connection with construction or operation of a convention center facility or other tourism project, may make reasonable regulations for the installation, construction, maintenance, renewal and removal of tracks, pipes, mains, conduits, cables, wires, towers, poles or any other equipment and appliances, herein called "works," of any public utility as defined in R.S.48:2-13, in, on or along, over or under the project, public highway or real property, including public lands or waters. Whenever in connection with construction or operation of the project, the relevant authority shall determine that it is necessary that any works, which now are or hereafter may be located in, on, along, over under any project, public highway, or real property, should be relocated in the project, public highway, or real property or should be removed therefrom, the public utility owning or operating the works shall relocate or remove the same in accordance with the order of the relevant authority, provided, however, that the cost and expenses of the relocation or removal, including the cost of installing these works in a new location, and the cost of any lands or any rights or interest in lands or any other rights acquired to accomplish the relocation or removal, less the cost of any lands or any rights or interest in lands or any other rights of the public utility, paid to the public utility in connection with the relocation or removal of the works, shall be paid by the relevant authority and may be included in the cost of the project. In case of any relocation or removal of works, the public utility owning or operating the same, its successors or assigns, may maintain and operate the works, with the necessary appurtenances, in the new location for as long a period, and upon the same terms and conditions, as it had the right to maintain and operate the works in their former location.2

(cf: P.L.1992, c.165, s.32)

 

    217. Section 35 of P.L.1992, c.165 (C.40:54D-35) is amended to read as follows:

    35. All property of the authority, except any property which is subjected to a lien to secure any bonds or notes [issued by 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 such judgment against the authority be a charge or lien upon its property; provided that nothing herein contained shall apply to or limit the rights of the holders of any bonds or notes to pursue any remedy for the enforcement of any pledge or lien [given by the authority on its revenues or other monies].2

(cf: P.L.1992, c.165, s.35)

 

    218. Section 39 of P.L.1992, c.39 (C.40:54D-39) is amended to read as follows:

    39. a. The authority shall cause a financial audit of its books and accounts to be made at least once each year by certified public accountants pursuant to the "Local Authorities Fiscal Control Law," P.L.1983, c.313 (C.40A:5A-1 et seq.), and copies thereof shall be filed with the State Treasurer and with the State Auditor.

      b. The annual budget of the authority for administrative and operating costs, and the annual budget for any tourism project, shall be submitted for approval to the State Treasurer within 90 days after the effective date of P.L. , c. (C. ) (now pending before the Legislature as this bill), and, thereafter, on or before the last day of October in each year. The State Treasurer shall, within 30 days of submission, review and approve each requested budget. The State Treasurer may object in whole or in part to any item or items contained in a budget while approving the other portions of a budget. If so, the State Treasurer shall append to a budget, along with the treasurer's signature of approval, a statement of each item or part thereof to which the treasurer objects, and each item or part so objected to shall not take effect. A copy of each budget and any statement shall be transmitted to the appropriate authority. Expenditures associated with construction or a specific bond issue or investment shall be considered costs of the State authority designated under section 20 of P.L. , c. (C. ) (now pending before the Legislature as this bill).2

(cf: P.L.1992, c.39, s.39)

 

      1[3.]2[ 4.1]19.2 (New section) Receipts from sales of tangible personal property and services subject to a tax on predominantly tourism related retail receipts authorized by 2corresponding2 municipal ordinances which were adopted pursuant to P.L.1992, c.165 (C.40:54D-1 et seq.) are exempt from the tax rate imposed under the “Sales and Use Tax Act” to the extent that the tax rate imposed by the ordinances exceeds 2% 2, except that the combined rate of taxation imposed under the corresponding ordinances and under the "Sales and Use Tax Act" shall not exceed 8%. Municipal ordinances so adopted shall not affect which retail receipts are subject to the "Sales and Use Tax Act." The exemption provided under this section shall terminate on the first day of the third month following the certification by the State Treasurer that all payments for bonds issued pursuant to section 20 of P.L. , c. (C. ) (now pending before the Legislature as this bill) have been made 2.

 

      220. (New section) a. The State Treasurer shall designate the New Jersey Economic Development Authority established pursuant to P.L.1974, c.80 (C.34:1B-1 et seq.), or any other State authority to issue bonds for the costs of construction, and to manage the construction of the tourism projects authorized herein. The authority shall delegate to the State authority so designated by the State Treasurer sole responsibility to provide for the bonding and construction of the tourism projects within the district. Further, the authority may advise the State authority with regard to the tourism projects.

      b. The State authority designated by the State Treasurer pursuant to this section shall utilize monies from the fund to issue bonds for the purpose of generating revenue for the construction of tourism projects; however, 3[up to] the State Treasurer shall specify an amount of not less than3 $500,000 of the fund in any year 3[may] to3 be allocated to the authority for operating expenses 3pursuant to a budget approved by the State Treasurer under section 39 of P.L.1992, c.39 (C.40:54D-39)3. 3[In no event shall the annual revenues deposited in the fund exceed $5,750,000 for bonding purposes in any year prior to certification by the director pursuant to subsection e. of section 9 of P.L.1992, c.165 (C.40:54D-9), and $5,000,000 in any year thereafter, and $500,000 for operating expenses of the authority.]3 To the extent that revenue generated annually from taxes levied pursuant to section 4 of P.L.1992, c.165 (C.40:54D-4) exceeds in any calendar year the amount 3[permitted to be deposited in that fund under this section, the excess revenue shall be deposited in the State General Fund to be used for general State purposes] required to meet payments for principal and interest on bonds for the construction of tourism projects authorized herein and for approved operating expenses of the authority, the excess revenue shall be placed in a sinking fund to be used to redeem bonds issued pursuant to this section by the State authority prior to maturity at the price or prices and upon the terms and conditions as may be provided in the bonds3.

      c. Any monies expended from the fund for the construction of tourism projects in excess of monies previously approved by the State Treasurer in the annual budget of those tourism projects, pursuant to section 39 of P.L.1992, c.165 (C.40:54D-39), shall be subject to annual review and approval of the State Treasurer.

      d. The State authority designated by the State Treasurer pursuant to this section shall utilize competitive bidding measures in the selection of all contractors, sub-contractors, and vendors; and competitive request for proposal measures for selection of all professional firms necessary for the development of the tourism projects herein. The State authority shall also review any existing agreements relating to the tourism projects for compliance with this requirement.2

 

      1[4.] 2[5.1] 21.2 This act shall take effect immediately.

 

 

                             

 

Permits increase in local share of State and local taxes on tourism related retail receipts in certain tourism improvement and development districts under certain conditions.