Statutue |
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18A:72A-40. Short
title
1. This act shall be known and may be cited
as the "Higher Education Equipment Leasing Fund
Act."
L.1993,c.136,s.1.
18A:72A-41. Findings, declarations
2. The Legislature finds and declares that:
a. Higher education plays a vital role in the economic development
of the nation and the State by providing the education and training of
the work force of the future and by advancing science and technology through
research;
b. The rapid technological changes occurring
throughout the world have a considerable impact on the
quality of teaching, learning, and research at colleges
and universities;
c. The current inventory of instructional and
research equipment at the colleges and universities within
the State is aging, both chronologically and technologically,
and much of it has been rendered obsolete; and
d. The State Board of Higher Education, which
is statutorily responsible for the coordination and planning
of higher education in New Jersey, has identified a crucial
need to establish a regular financing mechanism for scientific,
engineering, technical, computer, communications, and instructional
equipment at New Jersey's public and private institutions
of higher education.
L.1993,c.136,s.2.
18A:72A-42. Higher education equipment leasing fund; issuance of
bonds.
5. a. There is created within the New Jersey
Educational Facilities Authority , established pursuant
to chapter 72A of Title 18A of the New Jersey Statutes,
hereinafter referred to as the " authority ," a
higher education equipment leasing fund to finance the
purchase of higher education equipment at public and private
institutions of higher education. The authority shall issue
bonds to finance the purchase of higher education equipment
for lease to public and private institutions of higher
education provided that the total outstanding principal
amount of the bonds shall not exceed $100,000,000 and the
term of any bond issued shall not exceed 10 years. In computing
the foregoing limitation as to amount, there shall be excluded
all bonds which shall be issued for refunding purposes,
provided that the refunding shall be determined by the
authority to result in a debt service savings. The State
Treasurer is hereby authorized to enter into a contract
with the authority pursuant to which the State Treasurer,
subject to available appropriation, shall pay the amount
necessary to pay the principal and interest on bonds and
notes of the authority issued pursuant to this section.
In entering into a lease agreement with a public or private
institution of higher education, the authority shall include
such lease provisions as may be necessary to insure that
the institution shall pay an amount equal to 25% of the
amount necessary to pay the principal and interest on the
bonds and notes of the authority issued pursuant to this
section to finance the purchase of higher education equipment
at that institution. Upon receipt of such moneys from the
public or private institution of higher education, the
authority shall remit the moneys immediately to the State
Treasurer.
b. The authority shall from time to time issue
bonds or notes in an amount sufficient to finance the purchase
of higher education equipment pursuant to lease agreements
with public and private institutions of higher education
and which shall also finance the administrative costs associated
with the issuance of bonds or notes. The authority shall
issue the bonds or notes in such manner as it shall determine
in accordance with the provisions of P.L.1993, c.136 (C.18A:72A-40
et al.) and the "New Jersey educational facilities
authority law," N.J.S.18A:72A-1 et seq. The authority
shall not issue any bonds or notes pursuant to this section
without the prior written consent of the State Treasurer.
c. Bonds or notes issued pursuant to this act
shall not be in any way a debt or liability of the State
or of any political subdivision thereof other than the
authority and shall not create or constitute any indebtedness,
liability or obligation of the State or of any political
subdivision thereof, or be or constitute a pledge of the
faith and credit of the State or of any political subdivision
thereof, but all bonds or notes, unless funded or refunded
by the bonds or notes of the authority , shall be payable
solely from revenues of funds pledged or available for
their payment as authorized by this act. Each bond shall
contain on its face a statement to the effect that the
authority is obligated to pay the principal thereof, redemption
premium, if any, or the interest thereon only from revenue
or funds of the authority and that neither the State nor
any political subdivision thereof is obligated to pay the
principal thereof, redemption premium, if any, or interest
thereon and that neither the faith and credit nor the taxing
power of the State or of any political subdivision thereof
is pledged to the payment of the principal of, redemption
premium, if any, or the interest on the bonds.
d. The State of New Jersey does hereby pledge
to and covenant and agree with the holders of any bonds
or notes issued pursuant to authorization of P.L.1993,
c.136 (C.18A:72A-40 et al.) that the State shall not limit
or alter the rights or powers hereby vested in the authority
to perform and fulfill the terms of any agreement made
with the holders of the bonds or notes, or to fix, establish,
charge and collect such rents, fees, rates, payments, or
other charges as may be convenient or necessary to produce
sufficient revenues to meet all expenses of the authority
and to fulfill the terms of any agreement made with the
holders of the bonds and notes, together with interest
thereon, with interest on any unpaid installments of interest,
and all costs and expenses in connection with any action
or proceedings by or on behalf of the holders, until the
bonds and notes, together with interest thereon, are fully
met and discharged or provided for.
L.1993,c.136,s.5.
8A:72A-43. Allocation of
moneys
6. The moneys deposited into the fund created
pursuant to section 5 of P.L.1993, c.136 (C.18A:72A-42)
shall be allocated in the following manner:
a. A minimum of $24,000,000 for the leasing
of higher education equipment at the State colleges;
b. A minimum of $19,440,000 for the leasing
of higher education equipment at Rutgers, The State University;
c. A minimum of $10,080,000 for the leasing
of higher education equipment at the University of Medicine
and Dentistry of New Jersey;
d. A minimum of $6,480,000 for the leasing
of higher education equipment at the New Jersey Institute
of Technology;
e. A minimum of $22,000,000 for the leasing
of higher education equipment at the county colleges;
f. A minimum of $10,500,000 for the leasing
of higher education equipment at private institutions of
higher education; and
g. A minimum of $7,500,000 for the leasing
of higher education equipment for emerging needs programs
at public and private institutions of higher education.
The State Board of Higher Education may apportion the amounts
authorized in subsection g. among any other amounts authorized
in subsections a. through f.
The State Board of Higher Education may reallocate any
balance in the amounts authorized in subsections a. through
g. of this section which have not been fully committed
within 18 months of the effective date of this act.
The State Board of Higher Education shall determine the
allocation of moneys deposited into the fund resulting
from the issuance by the authority of new bonds because
of the retirement of bonds previously issued by the authority.
L.1993,c.136,s.6.
18A:72A-44. Lease agreements
to finance acquisition of higher education equipment
7. The authority may enter into a lease agreement
with a public or private institution of higher education
to finance the acquisition of higher education equipment
by the institution and which provides for the lease of
the equipment by the authority to the institution. The
higher education equipment shall have a useful life equal
to or greater than the term of the bonds issued to finance
the purchase of the equipment. During the period of the
lease, the authority shall hold title to the equipment.
At such time as the liabilities of the authority incurred
for the purchase of the higher education equipment have
been met and the bonds of the authority issued therefor
have been paid, or such liabilities and bonds have otherwise
been discharged, the authority shall transfer title to
the higher education equipment to the institution to which
the equipment is leased. However, if at any time prior
thereto the institution ceases to operate, then title shall
vest in the authority.
L.1993,c.136,s.7.
18A:72A-45. Approval for lease agreements
8. The authority shall not enter into a lease agreement with
an institution of higher education unless the State Board of Higher Education
has adopted a resolution which approves the purchase of the higher education
equipment by the institution. The State board shall forward a copy of the
resolution along with the amount of the approved purchase to the authority.
L.1993,c.136,s.8.
8A:72A-46. Amount retained
by State to satisfy deficiency
9. a. To assure the continued operation and solvency
of the leasing fund program, the authority shall require
that if an institution of higher education fails or is
unable to pay to the authority in full, when due, any obligation
of the institution to the authority, an amount sufficient
to satisfy the deficiency shall be retained by the State
Treasurer from State aid or an appropriation payable to
the institution. As used in this section, obligation of
the institution means any amount payable by the institution
for equipment leasing pursuant to a lease agreement with
the authority.
b. The amount retained by the State Treasurer
shall be deducted from the corresponding appropriation
or apportionment of State aid payable to the institution
of higher education and shall not obligate the State
to make, nor entitle the institution to receive, any
additional appropriation or apportionment.
L.1993,c.136,s.9.
18A:72A-47. Annual report
10. The State Board of Higher Education shall annually
submit a report to the Governor and the Legislature on
the higher education equipment purchases at public and
private institutions of higher education which have been
approved by the State board and financed by the New Jersey
Educational Facilities Authority pursuant to lease agreements
with the institutions.
L.1993,c.136,s.10.
18A:72A-48. Rules, regulations
11. The State Board of Higher Education, in consultation
with the New Jersey Educational Facilities Authority
, shall adopt, pursuant to the "Administrative Procedure
Act," P.L.1968, c.410 (C.52:14B-1 et seq.), the
rules and regulations necessary to carry out the provisions
of this act.
L.1993,c.136,s.11. |
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