New Jersey Administrative Code
Title 9A - HIGHER EDUCATION
Chapter 14 - RULES AND PROCEDURES FOR IMPLEMENTATION OF THE HIGHER EDUCATION EQUIPMENT LEASING FUND ACT
Subchapter 1 - GENERAL PROVISIONS
Section 9A:14-1.5 - Authorization process

(a) The Secretary shall establish a review committee comprised of representation from the Office of the Secretary of Higher Education, the New Jersey Educational Facilities Authority, the New Jersey Schools Development Authority, the New Jersey Economic Development Authority, and an external advisor with technical expertise to evaluate higher education equipment purchase applications and make recommendations on funding.

(b) The Secretary shall examine the recommendations of the review committee and shall, via a written certification, provide preliminary approval or disapproval of the purchase, pursuant to 9A:14-1.4(b), and the amount of the approval.

(c) The Secretary shall forward to the Authority a copy of the institution's application and a copy of the written certification of such approval, including the amount of the grant. The Authority shall thereafter submit a copy of the proposed lease agreement or lease information in connection with the purchase of equipment preliminarily approved by the Secretary to the Legislature Joint Budget Oversight Committee for review. The Legislature Joint Budget Oversight Committee shall approve or disapprove each lease agreement within 10 working days of receipt of the lease information or the lease agreement shall be deemed approved by the Legislature Joint Budget Oversight Committee and by the Secretary.

(d) The Authority shall not enter into a lease agreement with an institution of higher education without the review and approval of the Legislature Joint Budget Oversight Committee.

(e) Lease agreements with institutions for the lease-purchase of equipment approved by the Secretary shall require the respective institutions to pay to the Authority 25 percent of the principal and interest on the bonds to be issued to finance the equipment purchase for the respective institutions.

(f) The Authority shall not issue bonds to finance the equipment purchase with terms exceeding the useful life of the equipment to be purchased and in no case exceeding 10 years.

(g) No bonds shall be issued by the Authority without the prior written consent of the State Treasurer.

(h) Proceeds from the sale of bonds shall cover the cost of bond issuance and administrative costs of the program.

(i) Any purchase of equipment by an institution shall be in the name of the Authority. The Authority shall hold title to the equipment until the bonds issued to finance the purchases have been repaid whereupon title shall be transferred to the respective institutions at their cost.

(j) Each institution that receives approval for the purchase of higher education equipment shall provide such information as the Secretary may request regarding the status of the equipment purchase.