New Jersey-2010-ACR49-Introduced

A Concurrent Resolution proposing to amend Article VIII, Section II, paragraph 7 of the Constitution of the State of New Jersey.

Be It Resolved by the General Assembly of the State of New Jersey (the Senate concurring):

1. The following proposed amendment to the Constitution of the State of New Jersey is agreed to:

PROPOSED AMENDMENT

Amend Article VIII, Section II, paragraph 7 to read as follows:

7. (a) Commencing July 1, 1999, there shall be credited in each State fiscal year, until June 30, 2009, to a special account in the General Fund $98,000,000 from the State revenue annually collected from the State tax imposed under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.), as amended and supplemented, or from any other State law of similar effect. The dedication and use of those moneys credited pursuant to this subparagraph shall be subject and subordinate to (1) all appropriations of revenues from taxes made by laws enacted prior to the effective date of this paragraph in accordance with Article VIII, Section II, paragraph 3 of the State Constitution in order to provide the ways and means to pay the principal and interest on bonds of the State presently outstanding or authorized to be issued under those laws, or (2) any other use of those revenues enacted into law prior to the effective date of this paragraph. The amount credited each State fiscal year pursuant to this subparagraph shall be dedicated and shall be appropriated from time to time by the Legislature only to: provide funding, including loans or grants, for the acquisition and development of lands for recreation and conservation purposes, for the preservation of farmland for agricultural or horticultural use and production, and for historic preservation; and satisfy any payments relating to bonds, notes, or other obligations, including refunding bonds, issued by an authority or similar entity established by law to provide funding, including loans and grants, for the acquisition and development of lands for recreation and conservation purposes, for the preservation of farmland for agricultural or horticultural use and production, and for historic preservation.

(b) Commencing July 1, 2009 and ending June 30, 2029, there shall be credited in each State fiscal year to a special account in the General Fund from the State revenue annually collected from the State tax imposed under the "Sales and Use Tax Act," P.L.1966,
c.30 (C.54:32B-1 et seq.), as amended and supplemented, or from any other State law of similar effect, the lesser of $98,000,000 or the amount necessary in each State fiscal year to satisfy any payments relating to bonds, notes, or other obligations, including refunding bonds, issued by an authority or similar entity established by law to provide funding, including loans and grants, for the acquisition and development of lands for recreation and conservation purposes, for the preservation of farmland for agricultural or horticultural use and production, and for historic preservation. The dedication and use of those moneys credited pursuant to this subparagraph shall be subject and subordinate to (1) all appropriations of revenues from taxes made by laws enacted prior to the effective date of this paragraph in accordance with Article VIII, Section II, paragraph 3 of the State Constitution in order to provide the ways and means to pay the principal and interest on bonds of the State presently outstanding or authorized to be issued under those laws, or (2) any other use of those revenues enacted into law prior to the effective date of this paragraph. The amount credited each State fiscal year pursuant to this subparagraph shall be dedicated and shall be appropriated from time to time by the Legislature only to satisfy any payments relating to bonds, notes, or other obligations, including refunding bonds, issued by an authority or similar entity established by law to provide funding, including loans and grants, for the acquisition and development of lands for recreation and conservation purposes, for the preservation of farmland for agricultural or horticultural use and production, and for historic preservation.

(c) Moneys credited to the special account pursuant to this paragraph shall not be used for (1) payments related to bonds, notes, or other obligations which in aggregate principal amount exceed $1,150,000,000 plus costs of issuance; [or] (2) payments relating to bonds, notes, or other obligations, except refunding bonds, issued after June 30, 2009 ; or (3) payment of any administrative costs or expenses, including but not limited to salaries, fringe and other benefits, equipment, materials, direct and indirect costs, and non-salaried administrative costs, of any State department, agency, authority, or other entity incurred in connection with the implementation or administration of this paragraph or any law enacted pursuant thereto .

(d) The authority or similar entity established by law as described in this paragraph shall consist of members appointed by the Governor and of members appointed by the Legislature.

(e) All moneys derived from repayments of any loan issued from the amounts dedicated pursuant to subparagraph (a) of this paragraph, and all income derived from the investment of moneys in the special account established pursuant to this paragraph, shall be credited to that special account, and shall be dedicated and shall be appropriated from time to time by the Legislature only for the purpose of providing funding, including loans or grants, for the acquisition and development of lands for recreation and conservation purposes, for the preservation of farmland for agricultural or horticultural use and production, and for historic preservation. Notwithstanding any provision of this paragraph to the contrary, the dedication of moneys derived from loan repayments and investments shall not expire.

(f) It shall not be competent for the Legislature, under any pretense whatever, to borrow, appropriate, or use the amounts credited to the special account established pursuant to this paragraph, or any portion thereof, for any purpose or in any manner other than as enumerated in this paragraph.

(g) No proceeds from bonds, notes, or other obligations, including refunding bonds, issued by an authority or similar entity established by law as described in this paragraph shall be used to pay any administrative costs or expenses, including but not limited to salaries, fringe and other benefits, equipment, materials, direct and indirect costs, and non-salaried administrative costs, of any State department, agency, authority, or other entity incurred in connection with the implementation or administration of this paragraph or any law enacted pursuant thereto.

(cf: Article VIII, Section II, paragraph 7 added effective December 3, 1998; amended effective December 4, 2003)

2. When this proposed amendment to the Constitution is finally agreed to pursuant to Article IX, paragraph 1 of the Constitution, it shall be submitted to the people at the next general election occurring more than three months after the final agreement and shall be published at least once in at least one newspaper of each county designated by the President of the Senate, the Speaker of the General Assembly and the Secretary of State, not less than three months prior to the general election.

3. This proposed amendment to the Constitution shall be submitted to the people at that election in the following manner and form:

There shall be printed on each official ballot to be used at the general election, the following:

a. In every municipality in which voting machines are not used, a legend which shall immediately precede the question, as follows:

If you favor the proposition printed below make a cross (X), plus (+), or check (T) in the square opposite the word "Yes." If you are opposed thereto make a cross (X), plus (+) or check (T) in the square opposite the word "No."

b. In every municipality the following question:

		ADMINISTRATIVE COSTS OF STATE'S OPEN SPACE, FARMLAND, AND HISTORIC PRESERVATION PROGRAMS
	YES	Shall the amendment to Article VIII, Section II, paragraph 7 of the Constitution of the State of New Jersey, agreed to by the Legislature, to prohibit any funds dedicated by the State Constitution for open space, farmland, and historic preservation from being used to pay any administrative costs or expenses, including but not limited to salaries, fringe and other benefits, equipment, materials, direct and indirect costs, and non-salaried administrative costs, of any State department, agency, authority, or other entity incurred in connection with the implementation or administration of the State's open space, farmland, or historic preservation programs, be approved?
		INTERPRETIVE STATEMENT
	NO	Approval of this constitutional amendment would prohibit any funds dedicated by the State Constitution for open space, farmland, and historic preservation efforts from being used to pay for administrative costs of State agencies and authorities implementing those programs. The State Constitution currently neither specifically allows nor prohibits the use of such funds to pay for administrative costs. If this prohibition is approved, administrative costs for the State's open space, farmland, and historic preservation programs would need to be paid from the State's General Fund or some other source.

STATEMENT

This proposed amendment to the State Constitution would prohibit any funds currently dedicated by the State Constitution for open space, farmland, and historic preservation from being used to pay for any administrative costs or expenses, including but not limited to salaries, fringe and other benefits, equipment, materials, direct and indirect costs, and non-salaried administrative costs, of any State department, agency, authority, or other entity incurred in connection with the implementation or administration of the State's open space, farmland, or historic preservation programs.

The State Constitution currently neither specifically authorizes nor prohibits the use of such funds to pay for administrative costs. However, the "Garden State Preservation Trust Act" (C.13:8C-1 et seq.), the 1999 implementing law for the 1998 constitutional amendment dedicating $98 million annually in State sales and use tax revenue as well as revenue realized from bonds to be issued by the Garden State Preservation Trust for the purpose of financing the State's open space, farmland, and historic preservation efforts, includes just such a prohibition, but it was overridden for State Fiscal Year 2003 by the FY2003 annual appropriations act. This proposed amendment to paragraph 7 of Article VIII, Section II, as embodied in this concurrent resolution, if approved by the people, would ensure that these constitutionally dedicated funds could never be used again to pay for administrative costs without voter approval. Consequently, these costs thereafter would have to be paid from the State's General Fund (as was done in FY2000, FY2001, and FY2002) or from some other source.