Bill

Bill > A3517


NJ A3517

NJ A3517
Eliminates five percent down payment requirement for bond ordinances approved by counties and municipalities.


summary

Introduced
02/25/2020
In Committee
02/25/2020
Crossed Over
Passed
Dead
01/11/2022

Introduced Session

2020-2021 Regular Session

Bill Summary

This bill makes permissive the down payment requirement for counties and municipalities to issue bonds. Under current law, most bond ordinances require an appropriation of at least five percent of the amount of the authorized obligation for final adoption of the bond ordinance. Although this appropriation is excluded from the property tax levy cap, relief from the requirement to make the down payment is intended to free-up scarce resources for other purposes of the county or municipality.

AI Summary

This bill makes the down payment requirement for counties and municipalities to issue bonds permissive rather than mandatory. Under current law, most bond ordinances require an appropriation of at least 5% of the authorized obligation for final adoption of the bond ordinance. This bill eliminates that requirement, allowing counties and municipalities to issue bonds without the need for a 5% down payment. The intention is to free up scarce resources for other purposes of the county or municipality.

Committee Categories

Government Affairs

Sponsors (1)

Last Action

Introduced, Referred to Assembly State and Local Government Committee (on 02/25/2020)

bill text


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