New Jersey § 18a:7g-15

§ 18a:7g-15.

a. Notwithstanding any provision of law to the contrary, when the board of education

of a district determines that it is not financing a school facilities project under

section 15 of P.L.2000, c. 72 ( C.18A:7G-15 ) and that it is necessary to sell bonds to raise money for the total costs of a school

facilities project, the board of education may issue such bonds as are necessary to

fund the project without the approval of the voters of the district, provided that

before issuing the bonds: (1) the board of education has entered into a written contract with one or more municipalities,

wherein the municipality shall annually remit to the board of education a portion

of the payments in lieu of taxes received by the municipality from one or more designated

properties, which portion shall be sufficient for the full repayment of the bonds,

and the board of education shall pledge all remittances to the full repayment of the

bonds; and (2) the bond issuance and contract has been approved by the Local Finance Board pursuant

to subsection b. of this section and the commissioner pursuant to subsection c. of

this section. b. A municipality intending to enter into a contract to pledge a portion of the payments

in lieu of taxes received by the municipality from one or more designated properties

pursuant to this section shall obtain the approval of the Local Finance Board prior

to the adoption of an ordinance or resolution, as applicable, authorizing the municipality

to enter into the contract. The board shall be entitled to receive from the applicant an amount sufficient to

provide for all reasonable professional and other fees and expenses incurred by it

for the review, analysis, and determination with respect thereto. As part of the board's review and approval, the board shall consider whether the

proposed contract will adversely impact the financial stability of the municipality. c. (1) If a board of education elects to issue bonds pursuant to this section, the

board of education shall apply to the commissioner for approval of the bond issuance. The commissioner shall be entitled to receive from the applicant an amount sufficient

to provide for all reasonable professional and other fees and expenses incurred for

the review, analysis, and determination with respect thereto. In addition to any other information that the commissioner may deem appropriate,

the application shall include: a description of the school facilities project; a

certification of the amount to be raised by the bonds; a description of the anticipated

annual debt service costs, including the amounts to be supported by municipal remittances;

and a copy of the contract. (2) Within 30 days of receiving the application, the commissioner shall approve, conditionally

approve, or reject the application. If the application is conditionally approved, the commissioner shall state, in writing,

the revisions that shall be made to the contract in order for the application to be

approved. If the commissioner does not approve, conditionally approve, or reject the application

within 30 days of the date of receipt, the commissioner shall be deemed to have approved

the application. d. Any debt service on a bond issued by a school district pursuant to this section

that is not supported by municipal remittances authorized under this section and is

paid by the board of education shall be eligible for State debt service aid in accordance

with the formula established under section 9 of P.L.2000, c. 72 ( C.18A:7G-9 ). e. The commissioner, in consultation with the Local Finance Board, and the Local Finance

Board, in consultation with the commissioner, shall promulgate, pursuant to “Administrative

Procedure Act,” P.L.1968, c. 410 ( C.52:14B-1 et seq. ), such rules and regulations as may be necessary to implement the provisions of this

section. At a minimum, the rules and regulations shall establish requirements and procedures

concerning the process by which municipalities and districts may enter into contracts

pursuant to this section.