S1732

SENATE, No. 1732

STATE OF NEW JERSEY

INTRODUCED DECEMBER 19, 1996

By Senators CAFIERO and LITTELL

An Act concerning litter abatement, amending and supplementing P.L.1985, c.533, and making an appropriation.

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

1. Section 7 of P.L.1985, c.533 (C.13:1E-99.2) is amended to read as follows:

7. The Clean Communities Account is established as a nonlapsing, revolving fund in the Department of the Treasury to carry out the purposes of this act. The Clean Communities Account shall be administered by an organization designated by the Department of Environmental Protection pursuant to section 2 of P.L. , c. (C. ) (pending in the Legislature as this bill) and credited, in addition to any appropriations made thereto, with all taxes and penalties levied or imposed pursuant to sections 6 and 10 of P.L.1985, c.533 (C.13:1E-99.1 and 13:1E-99.5), and any sums received as voluntary contributions from private sources. Interest received on moneys in the account shall be credited to the account. Unless otherwise expressly provided by the specific appropriation thereof by the Legislature, which shall take the form of a discrete legislative appropriations act and shall not be included within the annual appropriations act, all available moneys in the Clean Communities Account shall be appropriated annually solely for the following purposes and no others:

a. [5%] 7 1/2% of the estimated annual balance of the account shall be used for a State program of litter pickup and removal[, of public education and information relating to litter abatement] and of enforcement of litter-related laws and ordinances in State owned places and areas that are accessible to the public;

b. 50% of the estimated annual balance of the account shall be distributed as State aid to eligible municipalities with total housing units of 200 or more for programs of litter pickup and removal, including establishing an "Adopt-A-Highway" program, of public education and information relating to litter abatement and of enforcement of litter-related laws and ordinances. The amount of State aid due each municipality shall be solely calculated based on the proportion which the housing units of a qualifying municipality bear to the total housing units in the State. Total housing units shall be determined using the most recent federal decennial population estimates for New Jersey and its municipalities, filed in the office of the Secretary of State. Monies may also be used by an eligible municipality to abate graffiti;

c. 30% of the estimated annual balance of the account shall be distributed as State aid to eligible municipalities with total housing units of 200 or more for programs of litter pickup and removal, including establishing an "Adopt-A-Highway" program, of public education and information relating to litter abatement and of enforcement of litter-related laws and ordinances. The amount of State aid due each municipality shall be solely calculated based on the proportion which the municipal road mileage of a qualifying municipality bears to the total municipal road mileage within the State. For the purposes of this subsection, "municipal road mileage" means that road mileage under the jurisdiction of municipalities, as determined by the Department of Transportation. Monies may also be by used an eligible municipality to abate graffiti;

d. 10% of the estimated annual balance of the account shall be distributed as State aid to eligible counties for programs of litter pickup and removal, including establishing an "Adopt-A-Highway" program, of public education and information relating to litter abatement and of enforcement of litter-related laws and ordinances. The amount of State aid due each county shall be solely calculated based on the proportion which the county road mileage of an eligible county bears to the total county road mileage within the State. For the purposes of this subsection, "county road mileage" means that road mileage under the jurisdiction of counties, as determined by the Department of Transportation. Monies may also be used by an eligible county to abate graffiti;

e. The Department of Environmental Protection shall develop model municipal and county litter control programs. A model county or municipal litter control program shall provide that funds distributed from the Clean Communities Account to a county or municipality shall be used solely to supplement existing litter pickup and removal activities, and that that portion of the litter picked up with State aid made available pursuant to this subsection which is recyclable shall be recycled.

(1) To be eligible for State aid under this section, a municipality or county must certify to the Department of Environmental Protection the adoption of one of the programs. Upon certification by the municipality or county of the enactment of an ordinance or resolution or regional plan establishing one of the model programs, the department shall distribute the State aid based upon the percentage distribution specified in this section subject to the appropriation made therefor.

(2) Every county and municipality shall submit an annual report to the Department of Environmental Protection on the implementation of the model program and the expenditure of funds. Failure to submit a report or submission of an unsatisfactory report shall result in a denial of future funds and an obligation to return the funds received.

(3) No eligible municipality shall receive less than $4,000.00 in State aid as apportioned pursuant to subsections b. and c. of this section. A municipality or county may use up to 5% of its State aid for administrative expenses;

f. [5%] 2 1/2% of the estimated annual balance of the account shall be annually appropriated to [and used by] the department and made available to an organization designated by the department pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill) for State administrative expenses and a State public information and education program concerning antilittering activities and other aspects of responsible solid waste handling behavior;

g. The department shall annually submit a report to the Governor and the Legislature detailing the administration of and disbursements made from the Clean Communities Account during the previous calendar year, including the uses and expenditure of moneys appropriated to the department pursuant to subsections a. and f. of this section.

h. As used in this section, "graffiti" means any inscription drawn, painted or otherwise made on a bridge, building, public transportation vehicle, rock, wall, sidewalk, street or other exposed surface on public property.

The department may carry forward any unexpended balances in the Clean Communities Account as of June 30 of each year.

(cf: P.L.1995, c.301, s.2)

2. (New section) a. The department shall designate an organization to administer the Clean Communities Account established pursuant to section 7 of P.L.1985, c.533 (C.13:1E-99.2). An organization may be designated by the department if it meets the following criteria:

(1) the organization is exempt from federal income tax under section 501(c)(3) of the United States Internal Revenue Code (26 U.S.C. 501(c)(3));

(2) the organization qualifies for tax deductible contributions under section 170(b)(1)(A)(vi) or (viii) of the United States Internal Revenue Code (26 U.S.C. 501(c)(3));

(3) the organization is incorporated under or subject to the provisions of Title 15 of the Revised Statutes or Title 15A of the New Jersey Statutes and the "Charitable Registration and Investigation Act," P.L.1994, c.16 (C.45:17A-18 et seq.);

(4) the sole purpose of the organization is the administration of the Clean Communities Account; and

(5) the organization demonstrates that it has raised funds or has the capability to raise funds from the private sector for the same purposes monies in the Clean Communities Account are appropriated.

b. The organization designated pursuant to subsection a. of this section shall enter into a grant agreement with the department to administer the Clean Communities Account. The grant agreement shall provide:

(1) the terms and conditions of the agreement;

(2) conditions under which the grant agreement may be terminated and grant funds recaptured by the department; and

(3) that the Commissioner of the Department of Environmental Protection and the State Treasurer, or their designee, are included as members on the Board of Trustees of the organization.

3. (New section) There is appropriated from the General Fund to the Department of Environmental Protection the sum of $100,000 to be provided as a grant to an organization designated pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill).

4. This act shall take effect immediately.

STATEMENT

P.L.1985, c.533 imposed a tax on the sale of litter-generating products to provide funds to finance a Statewide anti-litter program. The manufacturers, wholesalers, and distributors of litter-generating products are taxed at the rate of $300 per $1,000,000 in sales per year; retailers, including restaurants, are taxed at the rate of $225 per $1,000,000 in annual sales. The fifteen categories of litter-generating products include alcoholic beverages, soft drinks, cigarettes, paper products, food and groceries, among others. Monies collected from the tax are deposited in the Clean Communities Account. The law provides that 90 percent of the estimated annual balance of the account must be used for grants to counties and municipalities for local litter control programs and activities.

The FY1997 budget reallocated the portion of the fund previously used for program oversight functions. As a result, the benefits of the program, a cleaner environment and the potential of changing and reinforcing behaviors, are at risk. This bill would reinstate a mechanism for oversight of the expenditure of monies in the Clean Communities Account, and encourage greater participation by the private sector in the program.

This bill would require the Department of Environmental Protection to designate an organization to administer the Clean Communities Account. The department shall be appropriated 2 1/2% of the estimated annual balance of the account to be made available to the designated organization for administration, oversight and education. An organization may be designated by the department if it meets the following criteria:

(1) the organization is exempt from federal income tax under section 501(c)(3) of the Internal Revenue Code;

(2) the organization qualifies for tax deductible contributions under section 170(b)(1)(A)(vi) or (viii) of the Internal Revenue Code;

(4) the sole purpose of the organization is the administration of the Clean Communities Account; and

(5) the organization demonstrates that it has raised funds or has the capability to raise funds from the private sector for the same purposes monies in the Clean Communities Account are appropriated.

The designated organization shall enter into a grant agreement with the department to administer the Clean Communities Account. The grant agreement shall provide:

(1) the terms and conditions of the agreement;

(2) conditions under which the grant agreement may be terminated and grant funds recaptured by the department; and

(3) that the Commissioner of the Department of Environmental Protection and the State Treasurer, or their designee, are included as members on the Board of Trustees of the organization.

In addition, the bill would appropriate $100,000 to the Department of Environmental Protection to be provided to the designated organization.

Finally, the bill would expand the permitted uses of funds from the account by eligible municipalities and counties to include the abatement of graffiti.

Revises administration of Clean Communities Account; appropriates $100,000.