Signed by Governor Phil Murphy

Vote Smart's Synopsis:

Vote to amend and pass a bill that authorizes the issuance of state bonds totaling $9.9 billion, and borrowing from the federal government.

Highlights:

• Appropriates $9.9 billion for New Jersey state bonds to deal with financial problems arising as a consequence of the COVID-19 Pandemic, and requires these funds to be deposited in areas most suffering from the pandemic and in ways that meet immediate budgetary needs and financial stability (Sec. 4, Pg. 11).

• Authorizes the state treasurer with the consent of the Governor to borrow the funds from the federal government and specifies that any such borrowing will be considered a bond (Sec. 4, Pg. 11).

• Specifies that bonds authorized under this act will be in the form of serial bonds, term bonds, notes, or a combination thereof and will be known as “New Jersey COVID-19 General Obligation Emergency Bonds” (Sec. 5, Pg. 13).

• Establishes that the Governor, State Treasurer, and Director of the Division of Budget and Accounting in the Department of Treasury will be the only ones authorized to carry out the provisions related to the issuance of bonds (Sec. 6, Pg. 13).

• Exempts the principal of and interest on the bonds from taxation by the state or any county, municipality, or other taxing districts of the state (Sec. 7, Pg. 13).

• Defines “director” as the Director of the Division of Local Government Services in the Department of Community Affairs (Sec. 3, Pg. 10).

• Defines “federal stimulus laws” as any federal laws enacted to address the fiscal and economic crisis resulting from the COVID-19 Pandemic, including the Coronavirus Aid, Relief and Economic Security Act (CARES Act), or any other federal stimulus law related to the COVID-19 Pandemic (Sec. 3, Pg. 10).

• Defines “federal assistance” as the provision of any loans to or the purchase of any local government securities from local government units for the purpose of providing monetary relief to local government units to address adverse fiscal impacts resulting from the COVID-19 Pandemic (Sec. 3, Pg. 10).

• Defines “refund or refunding” as providing for the payment of a bond on or prior to its maturity upon redemption or prepayment prior to maturity as authorized in this act (Sec. 3, Pg. 11).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that authorizes the issuance of state bonds totaling $5 billion, and borrowing from the federal government.

Highlights:

• Defines “director” as the Director of the Division of Local Government Services in the Department of Community Affairs (Sec. 3, Pg. 10).

• Defines “federal stimulus laws” as any federal laws enacted to address the fiscal and economic crisis resulting from the COVID-19 Pandemic, including the Coronavirus Aid, Relief and Economic Security Act (CARES Act), or any other federal stimulus law related to the COVID-19 Pandemic (Sec. 3, Pg. 10).

• Defines “federal assistance” as the provision of any loans to or the purchase of any local government securities from local government units for the purpose of providing monetary relief to local government units to address adverse fiscal impacts resulting from the COVID-19 Pandemic (Sec. 3, Pg. 10).

• Defines “refund or refunding” as providing for the payment of a bond on or prior to its maturity upon redemption or prepayment prior to maturity as authorized in this act (Sec. 3, Pg. 11).

• Appropriates $5 billion for New Jersey state bonds to deal with financial problems arising as a consequence of the COVID-19 Pandemic, and requires these funds to be deposited in areas most suffering from the pandemic and in ways that meet immediate budgetary needs and financial stability (Sec. 4, Pg. 11).

• Authorizes the state treasurer with the consent of the Governor to borrow the funds from the federal government and specifies that any such borrowing will be considered a bond (Sec. 4, Pg. 11).

• Specifies that bonds authorized under this act will be in the form of serial bonds, term bonds, notes, or a combination thereof and will be known as “New Jersey COVID-19 General Obligation Emergency Bonds” (Sec. 5, Pg. 13).

• Establishes that the Governor, State Treasurer, and Director of the Division of Budget and Accounting in the Department of Treasury will be the only ones authorized to carry out the provisions related to the issuance of bonds (Sec. 6, Pg. 13).

• Exempts the principal of and interest on the bonds from taxation by the state or any county, municipality, or other taxing districts of the state (Sec. 7, Pg. 13).

Full Bill Text