Bill Text: NJ S3536 | 2018-2019 | Regular Session | Introduced


Bill Title: Requires EDA adopt rules and regulations establishing minimum standards for administration of certain economic incentive programs.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2019-03-05 - Introduced in the Senate, Referred to Senate Economic Growth Committee [S3536 Detail]

Download: New_Jersey-2018-S3536-Introduced.html

SENATE, No. 3536

STATE OF NEW JERSEY

218th LEGISLATURE

 

INTRODUCED MARCH 5, 2019

 


 

Sponsored by:

Senator  JOSEPH P. CRYAN

District 20 (Union)

 

 

 

 

SYNOPSIS

     Requires EDA adopt rules and regulations establishing minimum standards for administration of certain economic incentive programs.

 

CURRENT VERSION OF TEXT

     As introduced.

  


An Act related to minimum standards for the administration of certain economic incentive programs and supplementing P.L.1974, c.80 (C.34:1B-1 et seq.).

 

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

 

     1.    As used in P.L.    , c.      (C.    ) (pending before the Legislature as this bill):

     "Applicant" means a person applying to the authority to receive a benefit or incentive pursuant to an economic incentive program.      "Authority" means the New Jersey Economic Development Authority established by section 4 of P.L.1974, c.80 (C.34:1B-4).

     "Benefit or incentive" means financial incentive, awarded by the authority to a person or agreed between the authority and a person, under an economic incentive program administered by the authority for the purpose of stimulating economic development or redevelopment in New Jersey, including but not limited to a bond, grant, loan, loan guarantee, matching fund, tax credit, or other tax expenditure.

     "Economic incentive program" means any program administered by the authority that offers a benefit or incentive to a person in order to stimulate economic development or redevelopment in New Jersey.

     "Incentive agreement" means an agreement entered into by the authority and a person to establish rights and duties of both parties through which the person is entitled to receive a benefit or incentive under an economic incentive program.

     "Project" means any acquisition, construction, reconstruction, repair, alteration, improvement or extension of any building, structure, facility, or other improvement completed pursuant to a capital investment requirement of an incentive agreement.

 

     2.    Notwithstanding any provision of law to the contrary, the New Jersey Economic Development Authority, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), shall, in consultation with the Department of Labor and Workforce Development, the Office of the State Comptroller, and the Division of Taxation in the Department of the Treasury, adopt rules and regulations to establish minimum standards for the objective and verifiable administration of economic incentive programs, as applicable to the individual economic incentive program, as follows:

     a.     For a new award of a benefit or incentive that is connected to the creation or retention of jobs in this State, the minimum standards shall include standardized formulas to establish an applicant's baseline employment numbers at the time of application
to an economic incentive program, and to ensure that a benefit or incentive is awarded appropriately for newly created or retained jobs.

     b.    For a new award of a benefit or incentive that is connected to the creation or retention of jobs in this State, the minimum standards shall include standards for reporting job figures, by category, and minimum standards for the collection, retention, and analysis of supporting documentation provided to the authority by a benefit or incentive recipient to ensure that jobs were actually created or retained in accordance with an incentive agreement.

     c.     For a new award of a benefit or incentive that is connected to the creation or retention of jobs in this State, the minimum standards shall provide for uniform performance monitoring of a benefit or incentive recipient under an incentive agreement.  The minimum standards shall, at minimum, require the authority to verify and compare job data received from a benefit or incentive recipient with independent information from the Department of Labor and Workforce Development and the Division of Taxation in the Department of the Treasury.

     d.    For a new award of a benefit or incentive that is connected to the creation or retention of jobs in this State, the minimum standards shall provide for the submission of sufficient supporting documentation by a benefit or incentive recipient to demonstrate that a project specified in an incentive agreement has satisfied the employment criteria detailed within the incentive agreement.

     e.     The minimum standards shall establish processes to evaluate application materials and performance data for a recipient that receives a benefit or incentive award under one or more economic incentive programs that allow the authority to ensure that a benefit or incentive recipient does not receive more than one benefit or incentive for each individual job that is created or retained in this State and to ensure a benefit or incentive recipient only receive appropriately earned benefits or incentives.

     f.     The minimum standards shall establish eligibility processes across different economic incentive programs and establish uniform methodologies for determining a project's net economic benefit to the State to ensure that benefits and incentives are properly earned pursuant to the individual economic incentive program and incentive agreement.

     g.    The minimum standards shall require the authority to regularly analyze performance data provided to the authority by a benefit or incentive recipient against independent information from the Department of Labor and Workforce Development and the Division of Taxation in the Department of the Treasury.

     h.    The minimum standards shall require the authority to regularly determine and analyze a recipient's continued eligibility for benefits or incentives under an economic incentive program, a project's economic benefit to the State, and whether the authority is empowered to terminate or suspend an incentive agreement or pursue the recapture of any benefit or incentive under an applicable incentive agreement.

 

     3.    a.  The rules and regulations adopted by the authority pursuant to section 2 of P.L.    , c.      (C.    ) (pending before the Legislature as this bill), shall not diminish the existing contractual rights of a benefit or incentive recipient under an incentive agreement that is in effect as of the effective date of P.L.    , c.      (C.    ) (pending before the Legislature as this bill).

     b.    The authority shall not apply the rules and regulations adopted by the authority pursuant to section 2 P.L.    , c.      (C.    ) (pending before the Legislature as this bill), in a manner that diminishes the existing contractual rights of a benefit or incentive recipient under an incentive agreement that is in effect as of the effective date of P.L.    , c.      (C.    ) (pending before the Legislature as this bill).

 

     4.    The New Jersey Economic Development Authority, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), shall, in consultation with the Office of State Comptroller and the Division of Taxation in the Department of the Treasury, adopt rules and regulations to establish minimum standards for language to be included in new incentive agreements that the authority enters into with a person seeking to receive a benefit or incentive under an economic incentive program for the provision of a benefit or incentive to the recipient.  The minimum standards established pursuant to this section shall be in accordance with the rules and regulations adopted pursuant to section 2 of P.L.    , c.      (C.    ) (pending before the Legislature as this bill).

 

     5.    This act shall take effect 90 days after enactment but the authority may take administrative actions in advance to effectuate the purposes of this act.

 

 

STATEMENT

 

     This bill requires the New Jersey Economic Development Authority (authority) to adopt rules and regulations establishing minimum standards for the administration of authority administered economic incentive programs, as defined in the bill.

     The bill requires the authority to establish rules and regulations, in consultation with the Department of Labor and Workforce Development, the Office of the State Comptroller, and the Division of Taxation in the Department of the Treasury, to establish minimum standards for the objective and verifiable administration of economic incentive programs administered by the authority.  The bill requires that the minimum standards address issues related to:

     (1)   establishing baseline employment numbers for a benefit or incentive recipient;

     (2)   the collection, retention, and analysis of supporting documentation provided to the authority by a benefit or incentive recipient;

     (3)   uniform performance monitoring of a benefit or incentive recipient against independent information from the Department of Labor and Workforce Development and the Division of Taxation;

     (4)   the submission of documentation;

     (5)   the processes used to evaluate application materials and performance data of a benefit or incentive recipient;

     (6)   determining recipient eligibility across different economic incentive programs and uniform methodologies for determining an economic development project's net economic benefit to the State;

     (7)   the regular analysis of performance data provided to the authority by a benefit or incentive recipient; and

     (8)   regularly determining and analyzing a recipient's continued eligibility for benefits or incentives under an economic incentive program, a project's economic benefit to the State, and whether the authority is empowered to terminate or suspend an incentive agreement or pursue the recapture of any benefit or incentive under an applicable incentive agreement.

     The bill prohibits the authority from applying the above rules and regulations in a manner that diminishes the existing contractual rights of a benefit or incentive recipient under an incentive agreement that is in effect as of the effective date of the bill.

     The bill further requires the authority, in consultation with the Office of the State Comptroller and the Division of Taxation in the Department of the Treasury, to adopt rules and regulations establishing minimum standards, as specified in the bill, for language to be included in new incentive agreements that the authority enters into with a person seeking to receive a benefit or incentive under an economic incentive program for the provision of a benefit or incentive to the recipient.

     The bill specifies that it will take effect 90 days after enactment, but that the authority is permitted to take administrative actions in advance of the effective date to effectuate the purposes of the bill.

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