S1892

An Act concerning school district borrowing and supplementing chapter 22 of Title 18A of the New Jersey Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. a. Notwithstanding the provisions of N.J.S.18A:24-10 or any other law, rule, or regulation to the contrary, the board of education of a Type II school district without a board of school estimate may issue bonds without the approval of the voters of the district in order to finance costs related to repairs to school facilities and other furnishings and equipment that were damaged due to a natural disaster for which a state of emergency is declared pursuant to P.L.1942, c.251 (C.App.A:9-33 et seq.), provided that the repairs are deemed to be necessary in order to provide a thorough and efficient system of education in the school district and that the costs, or any portion of the costs thereof, stemming from such repairs are eligible for reimbursement by the Federal Emergency Management Agency. In the case of a Type I school district or a Type II school district with a board of school estimate, notwithstanding the provisions of N.J.S.18A:24-11, N.J.S.18A:24-12, or any other law, rule, or regulation to the contrary, such bonds may be issued by the board of education or the governing body of the municipality comprised within the district without the approval of the board of school estimate or the adoption of a municipal ordinance as applicable. In the case of a school district under full State intervention or partial State intervention in which the governance component of school district effectiveness has not been returned to the district, notwithstanding the provisions of P.L.1991, c.139 (C.18A:7A-46.1 et seq.) or any other law, rule, or regulation to the contrary, such bonds may be issued without the approval of the capital project control board.

As used in this section, “school facility” means and includes any structure, building, or facility used wholly or in part for educational purposes by a school district and facilities that physically support such structures, buildings, and facilities, such as district wastewater treatment facilities, power generating facilities, and steam generating facilities, but shall exclude other facilities.

b. (1) The issuance of bonds pursuant to this section shall be approved by the board of education of the school district, or the State district superintendent in the case of a school district under full State intervention or partial State intervention in which the governance component of school district effectiveness has not been returned to the district. The approval shall be evidenced by the adoption of a resolution by the board of education in a public meeting upon an affirmative vote of two-thirds of its full membership. If the school district is under full or partial State intervention and the governance component of school district effectiveness has not been returned to the district, the approval shall be evidenced by a certification, affidavit, or other sworn statement signed by the State district superintendent supporting the issuance. The resolution or certification, affidavit, or other sworn statement as applicable shall, at a minimum:

(a) certify support for the issuance of the bonds and authorize the submission of an application to the Commissioner of Education pursuant to subsection c. of this section;

(b) petition the commissioner to authorize the issuance of bonds pursuant to this section;

(c) include the total estimated cost of the damage to school facilities and other furnishings and equipment, caused by a natural disaster for which a state of emergency is declared;

(d) state the project or projects to be submitted to the commissioner and the amounts to be raised for the project or projects;

(e) the amount necessary to be raised by school bonds for repairs to the damage to school facilities and other furnishings and equipment; and

(f) the amount of funds that the school district will be reimbursed by the Federal Emergency Management Agency.

(2) (a) In the event that the repairs for which bonds are to be issued pursuant to this section are deemed to be a school facilities project that is eligible for State debt service aid pursuant to P.L.2000, c.72 (C.18A:7G-1 et al.), the board of education or State superintendent as applicable shall apply to the commissioner seeking approval for the school facilities project prior to the adoption of a resolution or the signing of a certification, affidavit, or other sworn statement pursuant to paragraph (1) of this subsection. The application shall be reviewed by the commissioner on an expedited basis pursuant to a process to be established by the commissioner. The application shall include items to be required by the commissioner including, but not limited to: a description of the school facilities project; a schematic drawing of the project or, at the option of the district, preliminary plans and specifications; a delineation and description of each of the functional components of the project; educational specifications detailing the programmatic needs of each proposed space; the number of unhoused students to be housed in the project; the area allowances per FTE student as calculated pursuant to section 8 of P.L.2000, c.72 (C.18A:7G-8); and the estimated cost to complete the project as determined by the district. Notwithstanding the provisions of section 4 of P.L.2000, c.72 (C.18A:7G-4) or section 5 of P.L.2000, c.72 (C.18A:7G-5) or the provisions of any other law, rule, or regulation to the contrary, the approval or disapproval of an application for a school facilities project pursuant to this section shall not be contingent upon the school facilities project being consistent or inconsistent with the school district’s long-range facilities plan required pursuant to section 4 of P.L.2000, c.72 (C.18A:7G-4) or upon the fact that the long-range facilities plan has not been amended to incorporate the school facilities project.

(b) Upon approval of an application submitted pursuant to subparagraph (a) of this paragraph, the applicant board of education shall adopt a resolution approving the issuance of bonds in a public meeting upon an affirmative vote of two-thirds of its full membership. If the school district is under full or partial State intervention and the governance component of school district effectiveness has not been returned to the district, the approval shall be evidenced by a certification, affidavit, or other sworn statement signed by the State district superintendent supporting the issuance. The resolution or certification, affidavit, or other sworn statement as applicable shall include, in addition to the information required pursuant to paragraph (1) of this subsection:

(i) the amount needed to be raised by school bonds;

(ii) the final eligible costs of the school facilities project as approved by the commissioner;

(iii) the total costs;

(iv) the State share or State debt-service-aid percentage;

(v) the local share, if applicable; and

(vi) the excess costs, if applicable.

c. (1) Upon the adoption of a resolution or the signing of a certification, affidavit, or other sworn statement pursuant to subsection b. of this section, a board of education or State district superintendent as applicable shall apply to the Commissioner of Education for approval of the issuance of bonds for the purposes laid out in subsection a. of this section. An application shall be submitted in a manner and in accordance with procedures prescribed by the commissioner. At a minimum, the application shall:

(a) demonstrate the need to borrow and that borrowing is necessary to provide a thorough and efficient system of education and to meet an emergency caused by a natural disaster for which a state of emergency is declared pursuant to P.L.1942, c.251 (C.App.A:9-33 et seq.);

(b) include the resolution adopted, or certification, affidavit, or other sworn statement signed, pursuant to subsection b. of this section;

(c) demonstrate that the repairs for which bonds will be issued are eligible for reimbursement by the Federal Emergency Management Agency; and

(d) demonstrate that reasonable efforts have been made to employ other methods provided by law to finance repairs to school facilities and other furnishings and equipment that were damaged due to a natural disaster for which a state of emergency is declared pursuant to P.L.1942, c.251 (C.App.A:9-33 et seq.).

(2) A decision by the commissioner concerning the approval or disapproval of an application shall be rendered to the applicant board of education or State district superintendent within 15 business days of receipt of the application.

d. (1) Notwithstanding the provisions of any law, rule, or regulation to the contrary, in the event that the commissioner approves an application submitted pursuant to subsection c. of this section, the principal of and interest on the bonds issued pursuant to this section shall be repaid with funds of the school district. In addition to the amount of taxes determined by the legal voters of the district at the annual school election, the secretary of the board of education shall certify the amount required for the repayment of the interest and principal of the bonds required to fund the local share amount approved by the commissioner in the same manner required for interest and debt redemption charges pursuant to N.J.S.18A:22-33, and the amount so certified shall be included in the taxes assessed, levied, and collected in the municipality or municipalities comprising the school district for those purposes.

2. This act shall take effect immediately.

STATEMENT

This bill authorizes school districts and certain municipalities to issue bonds to finance costs relating to repairs to school facilities and other furnishings and equipment that were damaged due to a natural disaster for which a state of emergency is declared. Under the bill, the bonds may be issued without the approval of the voters of the district in the case of a Type II school district without a board of school estimate and without the approval of the board of school estimate or the adoption of a municipal ordinance as applicable in the case of a Type I or Type II school district with a board of school estimate. The bill requires that a district may only issue bonds if the repairs are deemed to be necessary in order to provide a thorough and efficient system of education and that the costs, or any portion of the costs, stemming from such repairs are eligible for reimbursement by the Federal Emergency Management Agency.

The issuance of bonds under the bill would be required to be approved by the board of education of the school district. The approval would be evidenced by the adoption of a resolution by the board of education in a public meeting upon an affirmative vote of two-thirds of its full membership certifying the support of the board for the issuance of the bonds, the total estimated cost of the damage caused by a natural disaster for which a state of emergency is declared, and the amount of money to be raised through the issuance of bonds.

In the event that the repairs for which bonds are to be issued are deemed to be a school facilities project that is eligible for State debt service aid pursuant to the “Educational Facilities and Construction Financing Act,” the board of education is required to apply to the Commissioner of Education prior to the adoption of a resolution certifying the support for the issuance of bonds. The application will be reviewed by the commissioner on an expedited basis pursuant to a process to be established by the commissioner. The bill provides that the approval or disapproval of an application for a school facilities project would not be contingent upon the school facilities project being consistent or inconsistent with the school district’s long-range facilities plan or upon the fact that the long-range facilities plan has not been amended to incorporate the school facilities project. Upon approval of an application submitted for a district seeking State debt service aid, the board of education would adopt a resolution approving the issuance of bonds.

Upon the adoption of a resolution, a board of education would apply to the Commissioner of Education for approval of the issuance of bonds. An application would be submitted in a manner and in accordance with procedures prescribed by the commissioner. The application would, at a minimum: demonstrate the need to borrow and that borrowing is necessary to meet an emergency caused by a natural disaster; include the resolution adopted by the board of education under the bill; demonstrate that the repairs for which bonds would be issued are eligible for reimbursement by the Federal Emergency Management Agency; and demonstrate that reasonable efforts have been made to employ other methods provided by law to finance repairs to damaged school facilities and other furnishings and equipment. A decision by the commissioner concerning the approval or disapproval of an application is required to be rendered within 15 business days of receipt of the application.

Lastly, the bill provides that, in the event that the commissioner approves an application for the issuance of bonds under the bill, the principal of and interest on the bonds would be repaid with funds of the school district. In addition to the amount of taxes determined by the legal voters of the district at the annual school election, the secretary of the board of education would certify the amount required for the repayment of the interest and principal of the bonds required to fund the local share amount. This certified amount would be included in the taxes assessed, levied, and collected in the municipality or municipalities comprising the school district for those purposes.

The bill also includes provisions specifying the steps that a school district would take if it is under full State intervention or under partial State intervention and the governance component of school district effectiveness has not been returned to the district.