NEW JERSEY STATUTES ANNOTATED
TITLE 18A: EDUCATION
CHAPTER 74. STATE LIBRARY AID LAW
NEW JERSEY LIBRARY CONSTRUCTION INCENTIVE ACT
N.J.S.A.
18A:74-14: Short title
This act shall be known as the “New Jersey Library Construction Incentive Act.”
L.1973, c. 381, s.1, eff. July 1, 1973.
N.J.S.A.
18A:74-15: Public policy
It is hereby declared to be the public policy of the State of New Jersey to encourage, promote and support the extension of public library services by aiding in the construction and expansion of public library buildings.
L.1973, c. 381, s.2, eff. July 1, 1973.
N.J.S.A.
18A:74-16: Definitions relative to library construction.
3. For the purposes of this act unless the context clearly indicates otherwise:
(a) “Act” means the “New Jersey Library Construction Incentive Act.”
(b) “Area” means all or part of one or more political subdivisions of the State of New Jersey.
(c) “Project,” “construction project,” “rehabilitation project,” “expansion” or “acquisition,” means a project which is eligible for a grant under regulations and standards promulgated under this act. When used alone, “project” means any construction, expansion, or rehabilitation project or acquisition.
(d) “Public library” means a library that serves free of charges all residents of an area without discrimination and receives its financial support, in whole or in part, from public funds. “Public library” does not include any special-purpose library, such as a law, medical, school or academic library, which are organized to serve a special clientele or purpose.
(e) “Authorized applicant” means a public library as defined in paragraph d. hereof.
(f) “Eligible project costs” means costs incurred in a project approved by the President of Thomas Edison State College, a portion of which may be reimbursed.
(g) “President” means the President of Thomas Edison State College.
(h) “Fiscal year” means the period between July 1 of any calendar year and June 30 of the next succeeding calendar year.
L.1973, c. 381, s.3. Amended 2001, c. 137, s.37.
N.J.S.A.
18A:74-17: Administration of act.
4. The administration of this act shall be governed by rules and regulations recommended and promulgated by the State Librarian with the approval of the President of Thomas Edison State College.
L.1973, c.381, s.4; amended 2001, c.137, s.38; 2010, c.87, s.46.
N.J.S.A.
18A:74-18: Participation in grants.
5. In order to participate in any grant made according to the provisions of this act, the applicant shall comply with the rules and regulations adopted as provided in section 4 of this act. Application for grants under this act shall be made to the President on forms specified in said rules and regulations. Applications shall be approved by the President in accordance with said rules and regulations. The President is hereby empowered to withhold any grants from any public library which does not comply with said rules and regulations.
L.1973, c. 381, s.5. Amended 2001, c.137, s.39.
N.J.S.A.
18A:74-19: Reimbursement for project costs.
6. The President shall reimburse each authorized applicant whose application has been approved for a portion of its eligible project costs, determined in accordance with the rules and regulations promulgated pursuant to this act.
L.1973, c. 381, s.6. Amended 2001, c.137, s.40.
N.J.S.A.
18A:74-20: Project costs eligible for grants.
7. The following project costs shall be eligible for grants, at the discretion of the President, when incurred after the date of project approval, or after such date as is indicated in paragraphs 3 and 5 of this section:
a. Construction of new buildings to be used for public library purposes.
b. Expansion, rehabilitation or acquisition of existing buildings to be used for public library purposes.
c. Expenses (other than interest and the carrying charge on bonds) related to the acquisition of land on which there is to be construction of new buildings or expansion of existing buildings to be used for public library purposes which are incurred within the three fiscal years preceding the fiscal year in which the project is approved by the President, provided such expenses constitute an actual cost or a transfer of public funds in accordance with the usual procedures generally applicable to all State and local agencies and institutions.
d. Site grading and improvement of land on which buildings used for public library purposes are located or are to be located.
e. Architectural, engineering, consulting and inspection services related to the specific project for which application for financial assistance is made, provided the costs of such services are incurred within three fiscal years preceding the year in which the project is approved by the President.
f. Expenses (other than interest and the carrying charges on bonds) related to the acquisition of existing buildings to be used for public library purposes, provided such expenses constitute an actual cost or a transfer of public funds in accordance with the usual procedures generally applicable to all State and local agencies and institutions.
g. Expenses relating to the acquisition and installation of initial equipment to be located in public library facilities, provided by a construction project, including all necessary building fixtures and utilities, office furniture and public library equipment, such as library shelving and filing equipment, card catalogs, cabinets, circulation desks, reading tables, study carrels, booklifts, elevators and information retrieval devices (but not books or other library materials).
L.1973, c. 381, s.7; Amended 2001, c.137, s.41.
N.J.S.A.
18A:74-21: Projects to be accessible, usable by persons with disabilities.
8. The President shall require that projects constructed with the use of State funds under this act shall, to the extent appropriate, be accessible to and usable by persons with disabilities.
L.1973, c. 381, s.8; amended 2001, c.137, s.42; 2017, c. 131, s.62.
N.J.S.A.
18A:74-22: Credit to State for unused facilities, equipment, land.
9. Whenever public library facilities, items of equipment or land to which the State has contributed funds under this act are not used for the purposes authorized by the act, the President may require that the State be credited with its proportionate share of the fair market value of such facilities, equipment, or land. All moneys so credited shall be remitted to the Treasurer of the State of New Jersey. In no event, however, may the President require that the State be so credited when such facilities, equipment or land have been used in excess of 20 years for the purposes authorized by this act.
L.1973, c. 381, s.9; amended 2001, c.137, s.43.
N.J.S.A.
18A:74-23: Costs of administration and supervision of act; limitation
All costs attributable to the administration and supervision of this act and the rules and regulations promulgated thereunder shall not exceed 8% of the total amount appropriated annually for the purposes of this act.
L.1973, c. 381, s.10, eff. July 1, 1973.
N.J.S.A.
18A:74-24: Definitions relative to public library project grant program
1. For the purposes of this act:
“Area” means all or part of one or more political subdivisions of the State of New Jersey;
“Authority” means the “New Jersey Educational Facilities Authority” established pursuant to N.J.S.18A:72A-1 et seq.;
“Board” means the Public Library Construction Advisory Board established pursuant to section 3 of P.L.1999, c.184 (C.18A:74-26);
“Eligible project costs” means costs incurred in a project approved by the board;
“Fund” means the “Public Library Project Fund” established pursuant to section 2 of P.L.1999, c.184 (C.18A:74-25);
“Project” means any construction, expansion, rehabilitation or acquisition project eligible for a grant under regulations promulgated under section 3 of P.L.1999, c.184 (C.18A:74-26);
“Public library” means a library that serves free of charge all residents of an area as established pursuant to chapter 33 or chapter 54 of Title 40 of the New Jersey Statutes; or a library established pursuant to N.J.S.15A:1-1 et seq. and receiving public funds pursuant to R.S.40:54-35;
“Secretary” means the Secretary of State of the State of New Jersey or the Secretary’s designated representative.
L.1999,c.184,s.1; amended 2001, c.148.
N.J.S.A.
18A:74-25: “Public Library Project Fund.”
2. The “Public Library Project Fund” is established as a separate account in the New Jersey Educational Facilities Authority to carry out the purposes of P.L.1999, c.184 (C.18A:74-24 et al.). The fund shall be administered by the authority and shall be credited with:
a. moneys received from the issuance of bonds, notes or other obligations issued pursuant to section 5 of P.L.1999, c.184 (C.18A:74-28);
b. moneys appropriated by the State for the purposes of the fund; and
c. all interest and investment earnings received on moneys in the fund.
L.1999, c.184, s.2.
N.J.S.A.
18A:74-26: Public Library Construction Advisory Board.
3. There is created a Public Library Construction Advisory Board to be comprised of seven members as follows: the Secretary of State or the secretary’s designee who shall serve as the chair; the State Librarian or the librarian’s designee; the President of Thomas Edison State College, or the president’s designee; and four persons with library, construction, or finance experience who shall be appointed by the Governor with the advice and consent of the Senate and who shall serve at the pleasure of the Governor and until their successors are appointed and shall have qualified.
Moneys in the fund shall be distributed as grants to public libraries for part of eligible project costs as enumerated in section 4 of P.L.1999, c.184 (C.18A:74-27), based on criteria and a competitive selection process established by the board. The board shall promulgate regulations prescribing procedures for applying for a grant and the terms and conditions for receiving a grant. A grant application shall include a complete description of the project to be financed and an identification of additional sources of revenue to be used. An application shall be reviewed, and approved or denied by the board in accordance with uniform procedures by resolution of the board. When a grant is approved by the board, the board shall establish the recommended grant amount and shall submit to the Joint Budget Oversight Committee, or its successor, the board’s approved amount of the grant and a brief description of the project for approval by the committee. Any grant not disapproved by the Joint Budget Oversight Committee within 30 days of such submission shall be deemed approved by the committee. After a grant application is approved by the committee, the board shall forward a copy of the application and certify the approved amount of the grant to the authority.
L.1999, c.184, s.3; amended 2010, c.87, s.45.
N.J.S.A.
18A:74-27: Project costs eligible for grants.
The following project costs shall be eligible for grants, at the discretion of the board:
a. Construction of new buildings to be used for public library purposes;
b. Expansion, rehabilitation or acquisition of existing buildings to be used for public library purposes;
c. Expenses, other than interest and the carrying charge on bonds, incurred after the effective date of P.L.1999, c.184 (C.18A:74-24 et al.), related to the acquisition of land on which there is to be construction of new buildings or expansion of existing buildings to be used for public library purposes, provided the expenses constitute an actual cost or a transfer of public funds in accordance with the usual procedures generally applicable to all State and local agencies and institutions;
d. Site grading and improvement of land on which buildings used for public library purposes are located or are to be located;
e. Architectural, engineering, consulting and inspection services related to the specific project for which application for financial assistance is made;
f. Expenses, other than interest and the carrying charges on bonds, related to the acquisition of existing buildings to be used for public library purposes, provided the expenses constitute an actual cost or a transfer of public funds in accordance with the usual procedures generally applicable to all State and local agencies and institutions; and
g. Expenses relating to the acquisition and installation of equipment to be located in public library facilities, including all necessary building fixtures and utilities, office furniture and public library equipment, such as library shelving and filing equipment, catalogs, cabinets, circulation desks, reading tables, study carrels, and information retrieval devices including video, voice, and data telecommunications equipment and linkages with a useful life of 10 years or more necessary for Internet access, but not including books or other library materials.
L.1999, c.184, s.4.
N.J.S.A.
18A:74-28: Issuance of bonds, notes, other obligations; cap.
5. a. The authority shall from time to time issue bonds, notes or other obligations in an amount sufficient to finance the grants provided under P.L.1999, c.184 (C.18A:74-24 et al.) and to finance the administrative costs associated with the approval process and the issuance of the bonds, notes, or other obligations, provided that the aggregate principal amount of the bonds, notes or other obligations shall not exceed $45,000,000, except that all administrative costs associated with the approval process and the issuance of bonds shall not be included within the total aggregate principal amount of bonds issued, and the term of any bond, note, or other obligation issued shall not exceed 30 years. In computing the foregoing limitation as to amount, there shall be excluded all bonds, notes or other obligations which have been retired or which shall be issued for refunding purposes, provided that the refunding is determined by the authority to result in a debt service savings. The authority shall issue the bonds, notes or other obligations in such manner as it shall determine in accordance with the provisions of P.L.1999, c.184 (C.18A:74-24 et al.) and the “New Jersey educational facilities authority law,” N.J.S.18A:72A-1 et seq., provided that no bonds, notes or other obligations shall be issued pursuant to this section without the prior written consent of the State Treasurer.
b. The State Treasurer is hereby authorized to enter into a contract with the authority pursuant to which the State Treasurer, subject to available appropriations, shall pay the amount necessary to pay the principal and interest on bonds, notes and other obligations of the authority issued pursuant to P.L.1999, c.184 (C.18A:74-24 et al.) plus any amounts payable in connection with an agreement authorized under subsection f. of this section.
c. The authority shall enter into a contractual agreement with the appropriate local governing entity in the area served by the public library, and the agreement shall be approved by a resolution of the authority. Each agreement with an appropriate entity shall include provisions as may be necessary to ensure that the entity shall provide an amount equal to 300% of the grant amount.
The authority may enter into a loan agreement with the appropriate local governing entity in the area served by the public library to finance the entity’s matching amounts for the project including, but not limited to, the payment of principal and interest on the bonds, notes and other obligations of the authority issued pursuant to this section or its share of any amount payable in connection with an agreement authorized pursuant to this section or the entity’s share of any amount payable in connection with an agreement authorized under subsection f. of this section. The loan may be secured by the entity’s guarantee or the issuance of county or municipal bonds to the authority in a private sale.
d. Bonds, notes or other obligations issued pursuant to P.L.1999, c.184 (C.18A:74-24 et al.) 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, notes or other obligations, unless funded or refunded by the bonds, notes or other obligations of the authority, shall be payable solely from revenues of funds pledged or available for their payment as authorized by P.L.1999, c.184 (C.18A:74-24 et al.). Each bond, note or other obligation 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, notes or other obligations.
e. The State of New Jersey does hereby pledge to and covenant and agree with the holders of any bonds, notes or other obligations issued pursuant to the authorization of P.L.1999, c.184 (C.18A:74-24 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, notes or other obligations, 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, notes and other obligations 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, notes and other obligations, together with interest thereon, are fully met and discharged or provided for.
f. In connection with any bonds or refunding of bonds issued pursuant to this section, the authority may also enter into any revolving credit agreement; agreement establishing a line of credit or letter of credit; reimbursement agreement; interest rate exchange agreement; currency exchange agreement; interest rate floor cap, option, put or call to hedge payment, currency, rate, spread or similar exposure, or similar agreement; float agreement; forward agreement; insurance contract; surety bond; commitment to purchase or sell bonds; purchase or sale agreement; or commitment or other contract or agreement or other security agreement approved by the authority.
L.1999, c.184, s.5; amended 2009, c.308, s.46.
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Last Updated: March 2026.