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Bill > S3119
NJ S3119
NJ S3119Eliminates five percent down payment requirement for bond ordinances approved by counties and municipalities.
summary
Introduced
04/15/2024
04/15/2024
In Committee
04/15/2024
04/15/2024
Crossed Over
Passed
Dead
01/12/2026
01/12/2026
Introduced Session
2024-2025 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 amends existing law to make the requirement for counties and municipalities to set aside a five percent down payment before adopting a bond ordinance permissive, meaning they can now choose to appropriate any percentage, or no percentage at all, as a down payment for the obligations they authorize. Previously, a bond ordinance, which is a formal resolution by a local government to borrow money, could not be finalized unless at least five percent of the authorized borrowing amount was appropriated as a down payment. While this down payment was exempt from property tax caps, this change aims to allow local governments to use these funds for other pressing needs.
Committee Categories
Housing and Urban Affairs
Sponsors (1)
Last Action
Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee (on 04/15/2024)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2024/S3119 |
| BillText | https://pub.njleg.gov/Bills/2026/S3500/3119_I1.HTM |
| BillText | https://pub.njleg.gov/Bills/2024/S3500/3119_I1.HTM |
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