Bill > A690

Introduced Session

This bill would amend current statutory provisions of the "Local Bond Law," N.J.S.40A:2-1 et seq., and the "Local Budget Law," N.J.S.40A:4-1 et seq., to require that prior to the issuance of general obligation bonds by a county or municipality, the bond ordinance authorizing the obligation must be submitted to the voters of the county or municipality, as appropriate, at the general election next following by at least 70 days the final adoption of the ordinance by the local governing body. The bond ordinance must contain a statement of the ways and means, exclusive of loans, by which the local unit shall pay the principal and interest on the bonds, and would take effect upon its approval by a majority of the legally qualified voters voting on the ordinance. The provisions of the bill would not apply to the issuance of "special emergency notes," refunding bonds, bonds issued by a distressed municipality to pay a judgment resulting from a court order, or borrowing by a county in anticipation of State or federal aid for the establishment of a county college. The bill also contains the language for the bond referendum question to be submitted to the voters. Under current law, local voters do not have the right to vote on the issuance of general obligation bonds, but are required to repay those bonds through their property taxes. The provisions of this bill would allow the voters of a municipality or county to vote to approve, or disapprove, the issuance of bonds, and thereby exercise some control over their local property taxes.

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John DiMaio (R)*,  Gail Phoebus (R)*,  Parker Space (R), 

Introduced, Referred to Assembly State and Local Government Committee (on 01/27/2016)