Bill Text: NJ ACR74 | 2018-2019 | Regular Session | Introduced
Bill Title: Proposes constitutional amendment to prohibit State and certain other entities from incurring debt to fund new transportation projects.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2018-01-09 - Introduced, Referred to Assembly Transportation and Independent Authorities Committee [ACR74 Detail]
Download: New_Jersey-2018-ACR74-Introduced.html
ASSEMBLY CONCURRENT RESOLUTION No. 74
STATE OF NEW JERSEY
218th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2018 SESSION
Sponsored by:
Assemblyman MICHAEL PATRICK CARROLL
District 25 (Morris and Somerset)
SYNOPSIS
Proposes constitutional amendment to prohibit State and certain other entities from incurring debt to fund new transportation projects.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
A Concurrent Resolution proposing to amend Article VIII, Section II of the New Jersey Constitution by adding a new paragraph.
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 by adding a new paragraph 9 to read as follows:
9. a. Beginning the July 1 next following the date of the approval of this amendment by the people pursuant to Article IX of the Constitution, the State and any department, division, office, agency, bureau, or section of the State, or any political subdivision thereof, or any authority or instrumentality created or chartered thereby, except municipal corporations, shall not incur any debt or liability in any form for the planning, acquisition, engineering, construction, reconstruction, repair, or rehabilitation of the State's transportation system, provided, however, that refinancing of all or a portion of any outstanding debts or liabilities incurred for the planning, acquisition, engineering, construction, reconstruction, repair, or rehabilitation of the State's transportation system shall not be prohibited so long as the refinancing provides a debt service savings and does not increase the amount of time needed to repay the debt or liability.
b. The Legislature shall not expend any funds on account of any debt obligation incurred for the planning, acquisition, engineering, construction, reconstruction, repair, or rehabilitation of the State's transportation system approved beginning July 1 next following the date of the approval of this amendment by the people pursuant to Article IX of the Constitution.
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 (a) in the square opposite the word "Yes." If you are opposed thereto make a cross (X), plus (+) or check (a) in the square opposite the word "No."
b. In every municipality the following question:
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YES |
CONSTITUTIONAL AMENDMENT TO PROHIBIT CREATION OF DEBT FOR NEW TRANSPORTATION PROJECTS Do you approve amending the Constitution to prohibit the State and any entity created by the State from incurring any debt or liability to pay for new transportation projects? The State may refinance current transportation project debt. Any refinancing has to result in a debt service savings and not increase the length of repayment. The amendment also prevents the Legislature from using any funds to repay debt incurred to pay for new transportation projects. |
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INTERPRETIVE STATEMENT |
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NO |
Currently, the State pays for transportation projects using tax dollars and by borrowing money which is paid back over many years. This amendment prohibits borrowing to pay for new transportation projects. The prohibition applies to the State and any entity created by the State, including New Jersey Transit and the entities that operate the State's toll roads. The amendment allows existing debt to be refinanced. Refinancing has to provide a debt service savings and may not increase the amount of time needed to repay the debt. The amendment also prohibits the Legislature from using any funds to repay debt incurred to pay for new transportation projects. |
STATEMENT
This amendment prohibits the State and any department, division, office, agency, bureau, or section of the State, or any political subdivision thereof, or any authority or instrumentality created or chartered thereby, except municipal corporations from borrowing money for the planning, acquisition, engineering, construction, reconstruction, repair, or rehabilitation of the State's transportation system. Refinancing of existing debt is permitted provided that the refinancing provides a debt service savings and does not increase the amount of time needed to repay the debt or liability. The prohibition applies to the New Jersey Transit Corporation, the New Jersey Turnpike Authority, and the South Jersey Transportation Authority. Currently, the State pays for transportation projects by dedicating tax dollars available during the year and by issuing bonds which are paid back over many years. The amendment prohibits the Legislature from expending any funds to pay back debt incurred for future transportation projects.
