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18A:72A-49. Short
title
1. This act shall be known and may be cited as the "Higher
Education Facilities Trust Fund Act."
L.1993,c.375,s.1.
18A:72A-50. Findings, declarations
2. The Legislature finds and declares that:
a. Higher education plays a vital role in the economic
development of the nation and of the State by providing the education
and training of the work force of the future and by advancing science
and technology through research.
b. New Jersey has an intense concentration of high technology
industries and research facilities and is the headquarters of some
of the world's most productive corporations. In the last decade
of the 20th century, it has become obvious that New Jersey's institutions
of higher education will have to change and improve their educational
and research facilities in order not only to prepare students to
fill existing jobs in a highly technical world, but also to create
new jobs as well.
c. In order for New Jersey students and businesses to
be competitive with their international peers, the public and private
sectors must continually take steps to enhance the technology and
research facilities at our colleges and universities. To do
otherwise would result in the failure of New Jersey businesses to
remain competitive, a decrease in the number of jobs available to
New Jersey workers, a decline in State and personal income, and the
loss of potential students to other, more technologically advanced
institutions in other states.
d. If New Jersey is to maintain the expansion of its
economic development and continue to provide an adequately trained
work force to retain and attract industry to the State, New Jersey's
public and private institutions of higher education must be strengthened
to provide services to meet the needs of the 21st century.
e. In order to protect the State's economy and preserve
and enhance our higher education system in today's global and technological
society, there is a crucial need to identify an ongoing funding source
to construct, expand, and update instructional, laboratory, communication,
and research facilities at New Jersey's public and private institutions
of higher education.
L.1993,c.375,s.2.
18A:72A-51. "Higher Education Facilities Trust Fund"
3. There is created within the New Jersey Educational
Facilities Authority , established pursuant to N.J.S.18A:72A-1 et
seq., the "Higher Education Facilities Trust Fund," hereinafter
referred to as the "trust fund." The trust fund shall be
maintained as a separate account and administered by the authority
to carry out the provisions of this act. The trust fund shall
consist of:
a. moneys received from the issuance of bonds or notes
pursuant to section 9 of P.L.1993, c.375 (C.18A:72A-57) and an annual
appropriation from the net proceeds of the State lottery established
by P.L.1970, c.13 (C.5:9-1 et seq.) in an amount sufficient to pay
the principal and interest on the bonds or notes;
b. all moneys appropriated by the State for the purposes
of the trust fund; and
c. all interest and investment earnings received on moneys
in the trust fund.
L.1993,c.375,s.3.
18A:72A-52. Use of trust fund
4. The trust fund shall be used to provide grants to
New Jersey's public and private institutions of higher education
for the cost, or a portion of the cost, of the construction, reconstruction,
development, extension, and improvement of instructional, laboratory,
communication, and research facilities.
L.1993,c.375,s.4.
18A:72A-53. Allocation of initial grants
5. The initial grants from the trust fund shall be allocated
as follows:
a. $48,000,000 for facilities at the State Colleges;
b. $38,880,000 for facilities at Rutgers, The State University;
c. $20,160,000 for facilities at the University of Medicine
and Dentistry of New Jersey;
d. $12,960,000 for facilities at the New Jersey Institute
of Technology;
e. $44,000,000 for facilities at the county colleges;
f. $21,000,000 for facilities at the private institutions
of higher education;
g. $15,000,000 for South Jersey multi-institutional economic
development facilities. As used in this section, "South
Jersey multi-institutional economic development facilities" means
facilities which would promote economic development in the eight
southernmost counties of the State and which involve more than one
public or private institution of higher education; and
h. $20,000,000 for a new facility for Rutgers, The State
University, School of Law, Newark.
The amount authorized in subsection g. may be apportioned among any
other amounts authorized in subsections a. through f. of this section.
The Board of Higher Education may reallocate any balance in an amount
authorized in subsections a. through h. of this section which has
not been approved by the board for a grant within 18 months of the
effective date of this act.
The Board of Higher Education shall determine the allocation of moneys
deposited into the trust fund resulting from the issuance by the
authority of new bonds because of the retirement of bonds previously
issued by the authority.
The facilities funded by grants from the trust fund shall follow
the principles of affirmative action and equal opportunity employment. In
furtherance of these principles, the Board of Higher Education shall
continue its policy of encouraging institutions to solicit bids from,
and award contracts to, minority and women-owned businesses.
L.1993,c.375,s.5.
18A:72A-54. Application for grant
6. a. The governing board of a public or private institution
of higher education may determine, by resolution, to apply for a
grant from the trust fund. Upon adoption of the resolution,
the board shall file an application with the Board of Higher Education,
which application shall include a complete description of the project
to be financed and an identification of any additional sources of
revenue to be used.
b. The Board of Higher Education shall review the application
and, by resolution, approve or disapprove the grant. For each
grant which is approved, the board shall establish the amount and
shall forward a copy of the resolution along with the amount of the
grant to the authority.
c. The Board of Higher Education shall submit to the Legislature
a copy of the resolution approving the grant along with the amount
of the grant. If the Legislature does not disapprove the grant
by the adoption of a concurrent resolution within 60 days, the grant
shall be deemed to be authorized. In addition, the resolution
approving the grant for the new instructional and research facility
for Rutgers, The State University, School of Law, Newark, shall be
submitted by the board to the Joint Budget Oversight Committee for
its approval prior to the board's submission of the resolution to
the Legislature. The board shall provide to the committee such
information concerning the grant as the committee may require for
its consideration.
d. Each grant awarded under this act shall be contingent
upon the recipient governing board entering into a contract or contracts
for the commencement of the construction, reconstruction, development,
extension, or improvement of the facility within one year of the
date on which the funds of the grant are made available.
L.1993,c.375,s.6.
18A:72A-55. List of selection criteria
7. In order to ensure the most effective utilization
of the moneys in the trust fund and to guide governing boards which
elect to apply for a grant, the Board of Higher Education shall establish
a list of selection criteria and shall specify the information to
be included in a grant application.
L.1993,c.375,s.7.
18A:72A-56. "Higher Education Facilities Trust Fund Board"
8. In order to ensure proper oversight and review, there
is created the "Higher Education Facilities Trust Fund Board" which
shall consist of six members as follows: the Chair and Vice Chair
of the Board of Higher Education; the State Treasurer or a designee;
the President of the Senate or a designee; the Speaker of the General
Assembly or a designee; and the Chancellor of Higher Education who
shall serve ex officio without vote. The board shall ensure
that the revenue provided to the trust fund is adequate to support
the grants approved by the Board of Higher Education. At the
end of each three-year period following the approval of this act,
the board shall review, in consultation with the Board of Higher
Education, the physical plant needs of public and private institutions
of higher education in the State and shall recommend to the Governor
and the Legislature a plan to increase, as necessary, the availability
and uses of grants made from the trust fund.
L.1993,c.375,s.8.
18A:72A-57. Issuance of bonds, notes
9. a. The authority shall from time to time issue bonds
or notes in an amount sufficient to finance the grants provided under
this act and to finance the administrative costs associated with
the approval process and the issuance of the bonds or notes, except
that the total outstanding principal amount of the bonds or notes
shall not exceed $220,000,000 and the term of any bond issued shall
not exceed 15 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 authority
shall issue the bonds or notes in such manner as it shall determine
in accordance with the provisions of P.L.1993, c.375 (C.18A:72A-49
et al.) and the "New Jersey educational facilities authority
law," N.J.S.18A:72A-1 et seq., provided that no bonds or notes
shall be issued pursuant to this section without the prior written
consent of the State Treasurer. Notwithstanding any other provision
of law to the contrary, the State Treasurer shall not consent to
the issuance of any bonds or notes unless the amount scheduled for
the annual debt service payments for each series of bonds or notes,
consisting of the payment of interest and principal on the bonds
or notes, are, as far as may be practicable, level for each fiscal
year that any bonds or notes of the series are outstanding, except
for a fiscal year in which the first or last payment on a series
is the only payment made for that series during that fiscal year.
b. 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.
c. The State of New Jersey does hereby pledge to and
covenant and agree with the holders of any bonds or notes issued
pursuant to the authorization of P.L.1993, c.375 (C.18A:72A-49 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.375,s.9; amended 1995,c.146.
8A:72A-58. Rules, regulations
11. The 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.375,s.11. |
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