An Act authorizing the creation of a debt of the State of New Jersey by the issuance of bonds of the State in the aggregate principal amount of up to $2,000,000,000 for the purpose of providing moneys for the construction of flood control, mitigation, and prevention projects in the State; providing the ways and means to pay and discharge the principal of and interest on the bonds; providing for the submission of this act to the people at a general election; and making an appropriation therefor.

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

1. This act shall be known and may be cited as the "Flood Control, Mitigation, and Prevention Bond Act of 2012."

2. The Legislature finds and declares that the years 2009, 2010, and 2011 have been historic and catastrophic for the State because, in these difficult economic times, frequent weather events have had devastating impacts on homes and businesses that were already burdened with fiscal hardship; that the flooding caused by weather events in these years has been especially destructive and debilitating; that no part of the State has been spared; that in August 2011, Governor Christie requested a disaster declaration to cover farming losses in Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Hunterdon, Mercer, Middlesex, Monmouth, Morris, Ocean, Salem, Somerset, Sussex, Union and Warren counties sustained from severe weather that began in May 2011; that rainfall during the August 2011 storms exceeded 11 inches in some parts of southern and northern New Jersey, and reached almost 20 inches in some parts of the center of the State; that the basins of the Passaic River and the Raritan River and their tributaries are chronically plagued with severe flooding; that the severe flooding in the Passaic River Basin in 2010, with a 12-foot rise in the river, nearly matched the level of the 1903 flood, its worst flood on record, only to be followed by more severe and destructive flooding in 2011; that preliminary estimates from the very recent 2011 flooding caused property damage to roads, public buildings, businesses and private property in just two counties - Bergen and Passaic Counties - at more than $261 million; and that the property damage estimates Statewide do not include the expense and loss of income to individuals and businesses from the shutting down of major roadways, the loss of power in homes and businesses, and the multitude of personal and financial emergencies arising from this flooding and its effects.

The Legislature further finds and declares that there are known solutions to the flooding but they require a strong will and fiscal commitment to bring them into reality; that many towns have sought disaster relief and a number have received some assistance, but this assistance is only a small part of the funds required; that the Passaic River Basin Flood Advisory Commission, established by Executive Order 23 on April 23, 2010, issued its report in January 2011, and in its report, the commission recommended consideration of several flood control, mitigation, and prevention construction projects in the Passaic River Basin, including structural elevation of homes in the floodplains, improvement of flood gate systems, removal of dams, and repair of river walls and shoals; that the commission also recommended, through reevaluation of requests to the United States Army Corps of Engineers, larger potential engineering projects for long term flood drainage, including levees, floodwalls, and construction of a flood tunnel in the Passaic River Basin; that a number of such solutions may be options for other parts of the State as well; and that pursuing much needed construction and infrastructure projects Statewide would have the further benefit of bolstering employment, job growth, and a healthy economy in the State, at a time when all three are especially needed.

The Legislature therefore determines that it is in the public interest to provide funding for projects for the structural control, mitigation, or prevention of flooding throughout the State.

3. As used in this act:

"Bonds" mean the bonds authorized to be issued, or issued, under this act.

"Commission" means the New Jersey Commission on Capital Budgeting and Planning.

"Commissioner" means the Commissioner of Environmental Protection.

"Construction" means, in addition to the usual meaning thereof, acts of construction, reconstruction, improvement, rehabilitation, relocation, demolition, renewal, repair, replacement, extension, restoration, betterment, improvement, protection, or consolidation, or any combination thereof, of a project.

"Cost" means the expenses incurred in connection with: flood control, mitigation, or prevention projects; the execution of any agreements and franchises deemed by the department to be necessary or useful and convenient in connection with any such projects authorized by this act; the procurement or provision of engineering, inspection, planning, legal, financial, or other professional services, estimates, studies, reports, or advice, including the services of a bond registrar or an authenticating agent; feasibility studies; the issuance of bonds, or any interest or discount thereon; the administrative, organizational, operating, or other expenses incident to the financing and completing of any project authorized by this act; the establishment of a reserve fund or funds for working capital, operating, maintenance, or replacement expenses and for the payment or security of principal or interest on bonds, as the Director of the Division of Budget and Accounting in the Department of the Treasury may determine; and reimbursement to any fund of the State of moneys which may have been transferred or advanced therefrom to any fund created by this act, or of any moneys which may have been expended therefrom for, or in connection with, any project authorized by this act.

"Department" means the Department of Environmental Protection or any agency or department successor to its power and responsibilities.

"Flood control, mitigation, or prevention project" means structural flood control, mitigation, or prevention through the construction of any structure, or the alteration of existing natural components of the area, for the purposes of flood control, mitigation, or prevention, and any other necessary appurtenances, including the development and completion of cost and benefit analyses of alternative projects, flood management plans, and impact studies. "Flood control, mitigation, or prevention project" shall include construction or alteration of natural detention areas or detention areas returned to their natural state, demolition and disposal work, warning systems, storage reservoirs, natural or restored detention areas, dikes, diversions, dams, spillways, levees, revetments, drains, ditches or channel improvements such as widening, deepening, straightening, clearing, sloping, building, filling in, and all other construction of infrastructure, structures, alterations thereof, and alterations of existing natural components, such as creeks, streams, rivers, the banks or beds thereof, or adjacent lands thereto. "Flood control, mitigation, or prevention project" shall not include buy-outs of residential or other properties, or farmland, historic, or open space preservation.

"Government securities" means any bonds or other obligations which as to principal and interest constitute direct obligations of, or are unconditionally guaranteed by, the United States of America, including obligations of any federal agency, to the extent those obligations are unconditionally guaranteed by the United States of America, and any certificates or any other evidences of an ownership interest in those obligations of, or unconditionally guaranteed by, the United States of America or in specified portions which may consist of the principal of, or the interest on, those obligations.

"Local flood control, mitigation, or prevention project" means any flood control, mitigation, or prevention project of a local government unit.

"Local government unit" means a county or a municipality, or any agency, authority, board, commission, or other instrumentality thereof, any two or more counties or municipalities operating jointly through a joint meeting or interlocal services agreement permitted by law, or any agency, authority, board, commission, or other instrumentality thereof, and any other local or regional entity created by the Legislature as a political subdivision of the State, or any agency, authority, board, commission, or other instrumentality thereof.

"State flood control, mitigation, or prevention project" means any flood control, mitigation, or prevention project of a State agency, authority, board, commission, or other instrumentality of the State.

4. The commissioner shall adopt, pursuant to the "Administrative Procedure Act," P.L.1968 c.410 (C.52:14B‑1 et seq.), rules and regulations necessary to implement the provisions of this act, including rules and regulations governing the awarding of grants and low-interest loans, including, but not limited to, eligibility requirements, procedures for submitting applications, standards for the evaluation of applications and prioritizing projects, requirements for reporting by the recipients of the expenditure of funds, and any limitations, restrictions or requirements concerning the use of a grant or low-interest loan as the commissioner may prescribe. The rules and regulations shall allow for use of federal matching funds, grants, and other federal funding. The commissioner shall review and consider the findings and recommendations of the commission in the administration of the provisions of this act.

5. a. Bonds of the State of New Jersey are authorized to be issued in the aggregate principal amount of up to $2,000,000,000, as provided for pursuant to section 7 of this act, for the purpose of financing, in whole or in part, the cost of local flood control, mitigation, or prevention projects and State flood control, mitigation, or prevention projects.

The amount authorized pursuant to this section is allocated for: (1) State projects; (2) grants to local government units; and (3) low-interest loans to local government units.

b. Any loan authorized under this section shall include up to 100% of the project cost, and shall be provided under the terms and conditions set forth in a written agreement between the Department of Environmental Protection and the entity receiving the loan.

c. Any loan made to a local government unit from the "Flood Control, Mitigation, and Prevention Revolving Loan Fund" established pursuant to section 16 of this act shall bear interest of not more than 2% per year, and shall be for a term of not more than 20 years.

d. No more than 5% of the aggregate principal amount or any individual grant or low-interest loan may be expended on organizational or administrative expenses, including salaries.

e. The department shall notify every local government unit in the State of the availability of, and the criteria for qualifying and obtaining, grants, low-interest loans, and federal matching funds. The commissioner shall prepare a priority list of eligible projects based upon criteria established by the commissioner, or as otherwise provided for by law. Funds shall be appropriated by the Legislature only in accordance with those priority lists.

f. Procedures for departmental review and approval of, and eligibility criteria for, flood control, mitigation, or prevention projects shall be established by the commissioner, or as otherwise provided for by law. The commissioner shall make every effort to pursue availability of federal matching funds, grants, and other federal funding for any eligible flood control, mitigation, or prevention project, and shall inform local government units of any such funds or grants that may be available. The commissioner shall not establish any application, grant, or low-interest loan requirements or restrictions that would interfere with any flood control, mitigation, or prevention project receiving available federal matching funds or grants. No provision of this act may be construed to restrict access to, or applicability of, federal matching funds or grants for any eligible flood control, mitigation, or prevention project pursuant to this act.

6. The bonds authorized under this act shall be serial bonds, term bonds, or a combination thereof, and shall be known as "Flood Control, Mitigation, and Prevention Bonds." They shall be issued from time to time as the issuing officials herein named shall determine in accordance with the direction of the Governor pursuant to section 7 of this act, but no later than December 31, 2017, and may be issued in coupon form, fully‑registered form or book‑entry form. The bonds may be subject to redemption prior to maturity and shall mature and be paid not later than 35 years from the respective dates of their issuance.

7. a. The Governor, the State Treasurer and the Director of the Division of Budget and Accounting in the Department of the Treasury, or any two of these officials, herein referred to as "the issuing officials," are authorized to carry out the provisions of this act relating to the issuance of bonds, and shall determine all matters in connection therewith, subject to the provisions of this act. If an issuing official is absent from the State or incapable of acting for any reason, the powers and duties of that issuing official shall be exercised and performed by the person authorized by law to act in an official capacity in the place of that issuing official.

b. The Governor is authorized to determine the amount of bonds to be issued provided that the total amount of bonds to be issued does not exceed $2,000,000,000, and no bonds are issued after December 31, 2017.

8. Bonds issued in accordance with the provisions of this act shall be a direct obligation of the State of New Jersey, and the faith and credit of the State are pledged for the payment of the interest and redemption premium thereon, if any, when due, and for the payment of the principal thereof at maturity or earlier redemption date. The principal of and interest on the bonds shall be exempt from taxation by the State or by any county, municipality or other taxing district of the State.

9. The bonds shall be signed in the name of the State by means of the manual or facsimile signature of the Governor under the Great Seal of the State, which seal may be by facsimile or by way of any other form of reproduction on the bonds, and attested by the manual or facsimile signature of the Secretary of State, or an Assistant Secretary of State, and shall be countersigned by the facsimile signature of the Director of the Division of Budget and Accounting in the Department of the Treasury and may be manually authenticated by an authenticating agent or bond registrar, as the issuing official shall determine. Interest coupons, if any, attached to the bonds shall be signed by the facsimile signature of the Director of the Division of Budget and Accounting in the Department of the Treasury. The bonds may be issued notwithstanding that an official signing them or whose manual or facsimile signature appears on the bonds or coupons has ceased to hold office at the time of issuance, or at the time of the delivery of the bonds to the purchaser thereof.

10. a. The bonds shall recite that they are issued for the purposes set forth in section 5 of this act, that they are issued pursuant to this act, that this act was submitted to the people of the State at the general election next occurring at least 70 days after enactment as specified in section 25 of this act, and that this act was approved by a majority of the legally qualified voters of the State voting thereon at the election. This recital shall be conclusive evidence of the authority of the State to issue the bonds and their validity. Any bonds containing this recital shall, in any suit, action or proceeding involving their validity, be conclusively deemed to be fully authorized by this act and to have been issued, sold, executed and delivered in conformity herewith and with all other provisions of laws applicable hereto, and shall be incontestable for any cause.

b. The bonds shall be issued in those denominations and in the form or forms, whether coupon, fully-registered or book-entry, and with or without provisions for interchangeability thereof, as may be determined by the issuing officials.

11. When the bonds are issued from time to time, the bonds of each issue shall constitute a separate series to be designated by the issuing officials. Each series of bonds shall bear such rate or rates of interest as may be determined by the issuing officials, which interest shall be payable semiannually; except that the first and last interest periods may be longer or shorter, in order that intervening semiannual payments may be at convenient dates.

12. The bonds shall be issued and sold at the price or prices and under the terms, conditions and regulations as the issuing officials may prescribe, after notice of the sale, published at least once in at least three newspapers published in the State, and at least once in a publication carrying municipal bond notices and devoted primarily to financial news, published in this State or in the city of New York, the first notice to appear at least five days prior to the day of bidding. The notice of sale may contain a provision to the effect that any bid in pursuance thereof may be rejected. In the event of rejection or failure to receive any acceptable bid, the issuing officials, at any time within 60 days from the date of the advertised sale, may sell the bonds at a private sale at such price or prices under the terms and conditions as the issuing officials may prescribe. The issuing officials may sell all or part of the bonds of any series as issued to any State fund or to the federal government or any agency thereof, at a private sale, without advertisement.

13. Until permanent bonds are prepared, the issuing officials may issue temporary bonds in the form and with those privileges as to their registration and exchange for permanent bonds as may be determined by the issuing officials.

14. The proceeds from the sale of bonds used to provide grants to local government units, and for use by the State, to finance flood control, mitigation, or prevention projects as set forth in section 5 of this act, shall be paid to the State Treasurer, shall be held by the State Treasurer in a separate fund, and shall be deposited in such depositories as may be selected by the State Treasurer to the credit of the fund, which fund shall be known as the "Passaic River Basin Flood Control, Mitigation, and Prevention Fund."

15. a. The moneys in the "Flood Control, Mitigation, and Prevention Fund" are specifically dedicated and shall be applied to the cost of grants for local flood control, mitigation, or prevention projects or State flood control, mitigation, or prevention projects as set forth in section 5 of this act. However, no moneys in the fund shall be expended for those purposes, except as otherwise authorized by this act, without the specific appropriation thereof by the Legislature, but bonds may be issued as herein provided, notwithstanding that the Legislature shall not have then adopted an act making a specific appropriation of any of the moneys. Any act appropriating moneys from the "Flood Control, Mitigation, and Prevention Fund" shall identify the project to be funded by the moneys.

b. At any time prior to the issuance and sale of bonds under this act, the State Treasurer is authorized to transfer from any available moneys in any fund of the treasury of the State to the credit of the "Flood Control, Mitigation, and Prevention Fund" those sums as the State Treasurer may deem necessary. The sums so transferred shall be returned to the same fund of the treasury of the State by the State Treasurer from the proceeds of the sale of the first issue of bonds.

c. Pending their application to the purposes provided in this act, the moneys in the "Flood Control, Mitigation, and Prevention Fund" may be invested and reinvested as are other trust funds in the custody of the State Treasurer, in the manner provided by law. Net earnings received from the investment, reinvestment, or deposit of moneys in the "Flood Control, Mitigation, and Prevention Fund" shall be deposited into the "Flood Control, Mitigation, and Prevention Fund" and become part of that fund.

16. The proceeds from the sale of bonds used to provide low-interest loans to local government units to finance in whole or in part, the cost of flood control, mitigation, or prevention projects as set forth in section 5 of this act, shall be paid to the State Treasurer, shall be held by the State Treasurer in a separate fund, and shall be deposited in such depositories as may be selected by the State Treasurer to the credit of the fund, which fund shall be known as the "Flood Control, Mitigation, and Prevention Revolving Loan Fund."

17. a. The moneys in the "Flood Control, Mitigation, and Prevention Revolving Loan Fund" are specifically dedicated and shall be applied to the cost of making low-interest loans to local government units to finance in whole or in part, the cost of flood control, mitigation, or prevention projects as set forth in section 5 of this act. However, no moneys in the fund shall be expended for those purposes, except as otherwise authorized by this act, without the specific appropriation thereof by the Legislature, but bonds may be issued as herein provided, notwithstanding that the Legislature shall not have then adopted an act making a specific appropriation of any of the moneys. Any act appropriating moneys from the "Flood Control, Mitigation, and Prevention Revolving Loan Fund" shall identify the project to be funded by the moneys.

b. Loans issued from the "Flood Control, Mitigation, and Prevention Revolving Loan Fund" shall be for a term as determined by the commissioner not to exceed 20 years and at an interest rate determined by the commissioner not to exceed 2 per cent per year. The terms of any loan agreement shall be approved by the State Treasurer. Any loan made from the "Flood Control, Mitigation, and Prevention Revolving Loan Fund" shall be awarded based upon the criteria and procedures established pursuant to section 5 of this act, except that no specific proportion of matching funds shall be required of loan applicants.

c. At any time prior to the issuance and sale of bonds under this act, the State Treasurer is authorized to transfer from any available moneys in any fund of the treasury of the State to the credit of the "Flood Control, Mitigation, and Prevention Revolving Loan Fund" those sums as the State Treasurer may deem necessary. The sums so transferred shall be returned to the same fund of the treasury of the State by the State Treasurer from the proceeds of the sale of the first issue of bonds.

d. Pending their application to the purposes provided in this act, the moneys in the "Flood Control, Mitigation, and Prevention Revolving Loan Fund" may be invested and reinvested as are other trust funds in the custody of the State Treasurer, in the manner provided by law. All repayments of loans made pursuant to this act, and interest thereon, shall be deposited in the "Flood Control, Mitigation, and Prevention Revolving Loan Fund." Net earnings received from the investment, reinvestment, or deposit of moneys in the "Flood Control, Mitigation, and Prevention Revolving Loan Fund" shall be deposited into the "Flood Control, Mitigation, and Prevention Revolving Loan Fund" and become part of that fund.

18. If any coupon bond, coupon or registered bond is lost, mutilated or destroyed, a new bond or coupon shall be executed and delivered of like tenor, in substitution for the lost, mutilated or destroyed bond or coupon, upon the owner furnishing to the issuing officials evidence satisfactory to them of the loss, mutilation or destruction of the bond or coupon, the ownership thereof, and security, indemnity and reimbursement for expenses connected therewith, as the issuing officials may require.

19. The accrued interest, if any, received upon the sale of the bonds shall be applied to the discharge of a like amount of interest upon the bonds when due. Any expense incurred by the issuing officials for advertising, engraving, printing, clerical, authenticating, registering, legal or other services necessary to carry out the duties imposed upon them by the provisions of this act shall be paid from the proceeds of the sale of the bonds by the State Treasurer, upon the warrant of the Director of the Division of Budget and Accounting in the Department of the Treasury, in the same manner as other obligations of the State are paid.

20. Bonds of each series issued hereunder shall mature, including any sinking fund redemptions, not later than the 35th year from the date of issue of that series, and in amounts as shall be determined by the issuing officials. The issuing officials may reserve to the State by appropriate provision in the bonds of any series the power to redeem any of the bonds prior to maturity at the price or prices and upon the terms and conditions as may be provided in the bonds.

21. Any bond or bonds issued hereunder which are subject to refinancing pursuant to the "Refunding Bond Act of 1985," P.L.1985, c.74 as amended by P.L.1992, c.182 (C.49:2B-1 et seq.), shall no longer be deemed to be outstanding, shall no longer constitute a direct obligation of the State of New Jersey, and the faith and credit of the State shall no longer be pledged to the payment of the principal of, redemption premium, if any, and interest on the bonds, and the bonds shall be secured solely by and payable solely from moneys and government securities deposited in trust with one or more trustees or escrow agents, which trustees and escrow agents shall be trust companies or national or state banks having powers of a trust company, located either within or without the State, as provided herein, whenever there shall be deposited in trust with the trustees or escrow agents, as provided herein, either moneys or government securities, including government securities issued or held in book-entry form on the books of the Department of Treasury of the United States, the principal of and interest on which when due will provide money which, together with the moneys, if any, deposited with the trustees or escrow agents at the same time, shall be sufficient to pay when due the principal of, redemption premium, if any, and interest due and to become due on the bonds on or prior to the redemption date or maturity date thereof, as the case may be; provided the government securities shall not be subject to redemption prior to their maturity other than at the option of the holder thereof. The State of New Jersey hereby covenants with the holders of any bonds for which government securities or moneys shall have been deposited in trust with the trustees or escrow agents as provided in this section that, except as otherwise provided in this section, neither the government securities nor moneys so deposited with the trustees or escrow agents shall be withdrawn or used by the State for any purpose other than, and shall be held in trust for, the payment of the principal of, redemption premium, if any, and interest to become due on the bonds; provided that any cash received from the principal or interest payments on the government securities deposited with the trustees or escrow agents, to the extent the cash will not be required at any time for that purpose, shall be paid over to the State, as received by the trustees or escrow agents, free and clear of any trust, lien, pledge or assignment securing the bonds; and to the extent the cash will be required for that purpose at a later date, shall, to the extent practicable and legally permissible, be reinvested in government securities maturing at times and in amounts sufficient to pay when due the principal of, redemption premium, if any, and interest to become due on the bonds on and prior to the redemption date or maturity date thereof, as the case may be, and interest earned from the reinvestments shall be paid over to the State, as received by the trustees or escrow agents, free and clear of any trust, lien or pledge securing the bonds. Notwithstanding anything to the contrary contained herein: a. the trustees or escrow agents shall, if so directed by the issuing officials, apply moneys on deposit with the trustees or escrow agents pursuant to the provisions of this section, and redeem or sell government securities so deposited with the trustees or escrow agents, and apply the proceeds thereof to (1) the purchase of the bonds which were refinanced by the deposit with the trustees or escrow agents of the moneys and government securities and immediately thereafter cancel all bonds so purchased, or (2) the purchase of different government securities; provided however, that the moneys and government securities on deposit with the trustees or escrow agents after the purchase and cancellation of the bonds or the purchase of different government securities shall be sufficient to pay when due the principal of, redemption premium, if any, and interest on all other bonds in respect of which the moneys and government securities were deposited with the trustees or escrow agents on or prior to the redemption date or maturity date thereof, as the case may be; and b. in the event that on any date, as a result of any purchases and cancellations of bonds or any purchases of different government securities, as provided in this sentence, the total amount of moneys and government securities remaining on deposit with the trustees or escrow agents is in excess of the total amount which would have been required to be deposited with the trustees or escrow agents on that date in respect of the remaining bonds for which the deposit was made in order to pay when due the principal of, redemption premium, if any, and interest on the remaining bonds, the trustees or escrow agents shall, if so directed by the issuing officials, pay the amount of the excess to the State, free and clear of any trust, lien, pledge or assignment securing the refunding bonds.

22. Refunding bonds issued pursuant to P.L.1985, c.74 as amended by P.L.1992, c.182 (C.49:2B-1 et seq.) may be consolidated with bonds issued pursuant to section 5 of this act or with bonds issued pursuant to any other act for purposes of sale.

23. To provide funds to meet the interest and principal payment requirements for the bonds and refunding bonds issued under this act and outstanding, there is appropriated in the order following:

a. Revenue derived from the collection of taxes under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.), or so much thereof as may be required; and

b. If, at any time, funds necessary to meet the interest, redemption premium, if any, and principal payments on outstanding bonds issued under this act are insufficient or not available, there shall be assessed, levied and collected annually in each of the municipalities of the counties of this State, a tax on the real and personal property upon which municipal taxes are or shall be assessed, levied and collected, sufficient to meet the interest on all outstanding bonds issued hereunder and on the bonds proposed to be issued under this act in the calendar year in which the tax is to be raised and for the payment of bonds falling due in the year following the year for which the tax is levied. The tax shall be assessed, levied and collected in the same manner and at the same time as are other taxes upon real and personal property. The governing body of each municipality shall cause to be paid to the county treasurer of the county in which the municipality is located, on or before December 15 in each year, the amount of tax herein directed to be assessed and levied, and the county treasurer shall pay the amount of the tax to the State Treasurer on or before December 20 in each year.

If on or before December 31 in any year, the issuing officials, by resolution, determine that there are moneys in the General Fund beyond the needs of the State, sufficient to pay the principal of bonds falling due and all interest and redemption premium, if any, payable in the ensuing calendar year, the issuing officials shall file the resolution in the office of the State Treasurer, whereupon the State Treasurer shall transfer the moneys to a separate fund to be designated by the State Treasurer, and shall pay the principal, redemption premium, if any, and interest out of that fund as the same shall become due and payable, and the other sources of payment of the principal, redemption premium, if any, and interest provided for in this section shall not then be available, and the receipts for the year from the tax specified in subsection a. of this section shall be considered and treated as part of the General Fund, available for general purposes.

24. Should the State Treasurer, by December 31 of any year, deem it necessary, because of the insufficiency of funds collected from the sources of revenues as provided in this act, to meet the interest and principal payments for the year after the ensuing year, then the State Treasurer shall certify to the Director of the Division of Budget and Accounting in the Department of the Treasury the amount necessary to be raised by taxation for those purposes, the same to be assessed, levied and collected for and in the ensuing calendar year. The director shall, on or before March 1 following, calculate the amount in dollars to be assessed, levied and collected in each county as herein set forth. This calculation shall be based upon the corrected assessed valuation of each county for the year preceding the year in which the tax is to be assessed, but the tax shall be assessed, levied and collected upon the assessed valuation of the year in which the tax is assessed and levied. The director shall certify the amount to the county board of taxation and the treasurer of each county. The county board of taxation shall include the proper amount in the current tax levy of the several taxing districts of the county in proportion to the ratables as ascertained for the current year.

25. For the purpose of complying with the provisions of the State Constitution, this act shall be submitted to the people at the general election next occurring at least 70 days after enactment. To inform the people of the contents of this act, it shall be the duty of the Secretary of State, after this section takes effect, and at least 60 days prior to the election, to cause this act to be published at least once in one or more newspapers of each county, if any newspapers be published therein and to notify the clerk of each county of this State of the passage of this act; and the clerks respectively, in accordance with the instructions of the Secretary of State, shall have printed on each of the ballots the following:

If you approve of the act entitled below, make a cross (x), plus (+), or check ( a ) mark in the square opposite the word "Yes."

If you disapprove of the act entitled below, make a cross (x), plus (+), or check ( a ) mark in the square opposite the word "No."

If voting machines are used, a vote of "Yes" or "No" shall be equivalent to these markings respectively.

FLOOD CONTROL, MITIGATION, AND PREVENTION BOND ACT OF 2012

YES

Do you approve the "Flood Control, Mitigation, and Prevention Bond Act of 2012"?

This bond act authorizes the State to issue bonds up to a total amount of $2 billion to pay for flood control, mitigation, and prevention projects Statewide. It also guarantees payment of the principal of the bonds and the interest on the debt with State revenues.

INTERPRETIVE STATEMENT

Approval of this act would authorize the sale of up to $2 billion in State general obligation bonds to pay for flood control, mitigation, and prevention projects throughout the State.

These projects could be State, county, or municipal projects. The county or municipal projects would receive funding as grants or low-interest loans. The grants and loans could be made to counties, municipalities, and local government agencies. Any loan would have an interest rate of no more than 2% and a term of no more than 20 years.

Projects could include: 1) structural elevation of homes in the floodplains; 2) improvement of flood gate systems; 3) removal of dams; 4) repair of river walls and shoals; 5) other alterations of the river basin; and 6) larger engineering projects for long term flood drainage, such as construction of levees, floodwalls, and flood tunnels. The Governor would be able to decide the amount of the bonds to be issued up to a maximum of $2 billion, but would not be able to issue any bonds after December 31, 2017.

The fact and date of the approval or passage of this act, as the case may be, may be inserted in the appropriate place after the title in the ballot. No other requirements of law of any kind or character as to notice or procedure, except as herein provided, need be adhered to.

The votes so cast for and against the approval of this act, by ballot or voting machine, shall be counted and the result thereof returned by the election officer, and a canvass of the election had in the same manner as is provided for by law in the case of the election of a Governor, and the approval or disapproval of this act so determined shall be declared in the same manner as the result of an election for a Governor, and if there is a majority of all the votes cast for and against it at the election in favor of the approval of this act, then all the provisions of this act not made effective theretofore shall take effect forthwith.

26. There is appropriated the sum of $5,000 to the Department of State for expenses in connection with the publication of notice pursuant to section 25 of this act.

27. The commissioner shall submit to the State Treasurer and the commission with the department's annual budget request a plan for the expenditure of funds from the "Flood Control, Mitigation, and Prevention Fund" and the "Flood Control, Mitigation, and Prevention Revolving Loan Fund" for the upcoming fiscal year. This plan shall include the following information: a performance evaluation of the expenditures made from the funds to date; a description of programs planned during the upcoming fiscal year; a copy of the regulations in force governing the operation of programs that are financed, in part or in whole, by funds from the "Flood Control, Mitigation, and Prevention Fund" and the "Flood Control, Mitigation, and Prevention Revolving Loan Fund"; and an estimate of expenditures for the upcoming fiscal year.

28. Immediately following the submission to the Legislature of the Governor's annual budget message, the commissioner shall submit to the Legislature pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), and to the Joint Budget Oversight Committee, or its successor, copies of the plan called for under section 27 of this act, together with such changes therein as may have been required by the Governor's budget message.

29. All appropriations from the "Flood Control, Mitigation, and Prevention Fund" and the "Flood Control, Mitigation, and Prevention Revolving Loan Fund" shall be by specific allocation for each project, and any transfer of any funds so appropriated shall require the approval of the Joint Budget Oversight Committee, or its successor. Except as otherwise provided by this act, any expenditure for a project for which the location is not identified by municipality and county in the appropriation shall require the approval of the Joint Budget Oversight Committee, or its successor.

30. Not less than 30 days prior to entering into any contract, lease, obligation, or agreement to effectuate the purposes of this act, the commissioner shall report to and consult with the Joint Budget Oversight Committee, or its successor.

31. This section and sections 25 and 26 of this act shall take effect immediately and the remainder of this act shall take effect as and when provided in section 25 of this act.

STATEMENT

This bill, entitled the "Flood Control, Mitigation, and Prevention Bond Act of 2012," authorizes the issuance of up to $2 billion in State general obligation bonds to be used for State projects, grants, or low-interest loans to pay for flood control, mitigation, and prevention projects Statewide. The Governor would be able to decide the amount of the bonds to be issued up to a maximum of $2 billion, but would not be able to issue any bonds after December 31, 2017.

The $2 billion could be used for: 1) State projects; 2) grants to local government units; and 3) low-interest loans to local government units. Any loan would have an interest rate of no more than 2% per year and a term of no more than 20 years. No more than 5% of the aggregate principal amount or of any individual grant or loan may be expended on organizational or administrative expenses, including salaries.

The Commissioner of Environmental Protection would be required to establish procedures for the review and approval of, and eligibility criteria for, local and State flood control, mitigation, and prevention projects throughout the State. The commissioner also would prepare a priority list of eligible projects, and funds would be appropriated by the Legislature only in accordance with the established list.

The bill provides that the bond act is to be submitted to the people for approval at the general election to be held at least 70 days after enactment and appropriates $5,000 to the Department of State for expenses in connection with the publication of the public question.