Bill Text: NJ A465 | 2014-2015 | Regular Session | Introduced
Bill Title: Concerns urban enterprise zones.
Spectrum: Partisan Bill (Democrat 8-0)
Status: (Introduced - Dead) 2014-01-16 - Introduced, Referred to Assembly Commerce and Economic Development Committee [A465 Detail]
Download: New_Jersey-2014-A465-Introduced.html
STATE OF NEW JERSEY
216th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2014 SESSION
Sponsored by:
Assemblyman JERRY GREEN
District 22 (Middlesex, Somerset and Union)
Assemblywoman CLEOPATRA G. TUCKER
District 28 (Essex)
Co-Sponsored by:
Assemblymen Cryan, Gusciora, Assemblywoman Watson Coleman, Assemblymen Conaway and Caputo
SYNOPSIS
Concerns urban enterprise zones.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel
An Act concerning urban enterprise zones and amending P.L.1983, c.303, P.L.1993, c.367 and P.L.2001, c.347.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 3 of P.L.1983, c.303 (C.52:27H-62) is amended to read as follows:
3. As used in this act:
a. "Enterprise zone" or "zone" means an urban enterprise zone designated by the authority pursuant to [this act] P.L.1983, c.303 (C.52:27H-60 et seq.);
b. "Authority" means the New Jersey Urban Enterprise Zone Authority created by [this act] P.L.1983, c.303 (C.52:27H-60 et seq.);
c. "Qualified business" means any entity authorized to do business in the State of New Jersey which, at the time of designation as an enterprise zone or a UEZ-impacted business district, is engaged in the active conduct of a trade or business in that zone or district; or an entity which, after that designation but during the designation period, becomes newly engaged in the active conduct of a trade or business in that zone or district and has at least 25% of its full-time employees employed at a business location in the zone or district, meeting one or more of the following criteria:
(1) Residents within the zone, the district, within another zone or within a qualifying municipality; or
(2) Unemployed for at least six months prior to being hired and residing in New Jersey, and recipients of New Jersey public assistance programs for at least six months prior to being hired, or either of the aforesaid; or
(3) Determined to be low income individuals pursuant to the Workforce Investment Act of 1998, Pub.L.105-220 (29 U.S.C. s.2811);
Approval as a qualified business shall be conditional upon meeting all outstanding tax obligations, and may be withdrawn by the authority if a business is continually delinquent in meeting its tax obligations. A business having fewer than five full-time employees and engaged in the active conduct of a trade or business in an enterprise zone shall be considered a qualified business, notwithstanding that none of its full-time employees employed at a business location in the zone meets any of the criteria listed in paragraphs (1) through (3) of this subsection, provided that the business meets the other criteria set forth within this subsection;
d. "Qualifying
municipality" means any municipality in which
there was, in the last full calendar year immediately preceding the year in
which application for enterprise zone designation is submitted pursuant to
section 14 of P.L.1983, c.303 (C.52:27H-73), an annual average of at least
2,000 unemployed persons, and in which the municipal average annual
unemployment rate for that year exceeded the State average annual unemployment
rate; except that any municipality which qualifies for State aid pursuant to P.L.1978,
c.14 (C.52:27D-178 et seq.) shall qualify if its municipal average annual
unemployment rate for that year exceeded the State average annual unemployment
rate. The annual average of unemployed persons and the average annual
unemployment rates shall be estimated for the relevant calendar year by the
Office of Labor Planning and Analysis of the State Department of Labor and
Workforce Development. In addition to those municipalities that qualify
pursuant to the criteria set forth above, that municipality accorded priority
designation pursuant to subsection e. of section 7 of P.L.1983, c.303
(C.52:27H-66), those municipalities set forth in paragraph (7), paragraph (8)
of section 3 of P.L.1995, c.382 (C.52:27H-66.1), and paragraph (9) of section 3
of P.L.1995, c.382 as amended by section 3 of P.L.2004, c.75 (C.52:27H-66.1),
and the municipalities in which the three additional enterprise zones,
including the joint enterprise zone, are to be designated pursuant to criteria
according priority consideration for designation of the zones pursuant to
section 12 of P.L.2001, c.347 (C.52:27H-66.7) shall be deemed qualifying
municipalities;
e. "Public assistance" means income maintenance funds administered by the Department of Human Services or by a county welfare agency;
f. "Zone development corporation" means a nonprofit corporation or association created or designated by the governing body of a qualifying municipality to formulate and propose a preliminary zone development plan pursuant to section 9 of P.L.1983, c.303 (C.52:27H-68) and to prepare, monitor, administer and implement the zone development plan;
g. "Zone development plan" means a plan adopted by the governing body of a qualifying municipality for the development of an enterprise zone therein, and for the direction and coordination of activities of the municipality, zone businesses and community organizations within the enterprise zone toward the economic betterment of the residents of the zone and the municipality;
h. "Zone neighborhood association" means a corporation or association of persons who either are residents of, or have their principal place of employment in, a municipality in which an enterprise zone has been designated pursuant to this act; which is organized under the provisions of Title 15 of the Revised Statutes or Title 15A of the New Jersey Statutes; and which has for its principal purpose the encouragement and support of community activities within, or on behalf of, the zone so as to (1) stimulate economic activity, (2) increase or preserve residential amenities, or (3) otherwise encourage community cooperation in achieving the goals of the zone development plan;
i. "Enterprise zone assistance fund" or "assistance fund" means the fund created by section 29 of P.L.1983, c.303 (C.52:27H-88); and
j. "UEZ-impacted business district" or "district" means an economically-distressed business district classified by the authority as having been negatively impacted by two or more adjacent urban enterprise zones in which 50% less sales tax is collected pursuant to section 21 of P.L.1983, c.303 (C.52:27H-80).
(cf: P.L.2006, c.34, s.3)
2. Section 11 of P.L.1993, c.367 (C.52:27H-65.1) is amended to read as follows:
11. a. In addition to the duties of the authority required under section 6 of P.L.1983, c.303 (C.52:27H-65), the authority shall also prepare a fiscal impact study of each additional enterprise zone designated pursuant to this 1993 amendatory and supplementary act and for each enterprise zone designated prior to this act. The study shall include, but not be limited to, an analysis of the effects of each enterprise zone on the local economy of the area in which the zone is located and an assessment of the effectiveness of these zones in addressing the goals of the "New Jersey Urban Enterprise Zones Act," P.L.1983, c.303 (C.52:27H-60 et seq.). The study shall be completed within a reasonable time after the end of one year following the designation of the additional zones by the authority pursuant to the priority consideration criteria set forth in this 1993 amendatory and supplementary act. The authority shall submit its study to the Governor and the Legislature, including any recommendations for legislation to improve the effectiveness of operation of these zones, within two years from the effective date of this 1993 amendatory and supplementary act. The authority shall use funds available from the account created in the name of the authority in the enterprise zone assistance fund for the administration of the program to pay for the cost of the study.
b. In addition to the fiscal impact study required under subsection a. of this section, the authority shall also prepare an urban enterprise zone program performance study that: (1) compares the program's performance for the State fiscal year immediately preceding the implementation of the provisions of P.L.2006, c.34 with the program's performance in the first State fiscal year of that implementation, and (2) assesses the impact on the program of the implementation of the provisions of P.L. , c. (C. )(pending before the Legislature as this bill) in the first State fiscal year of that implementation. The study required under this subsection shall be completed within 30 days after the end of the first State fiscal year following the effective date of P.L. , c. (pending before the Legislature as this bill). The impact study required under paragraph (2) of this subsection shall be updated within 30 days after the end of the third State fiscal year following the effective date of P.L. , c. (pending before the Legislature as this bill). The authority shall submit each study to the Governor and the Legislature pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1) within five days of its completion. The authority shall use funds available from the account created in the name of the authority in the enterprise zone assistance fund for the administration of the program to pay for the cost of each study.
(cf: P.L.1993, c.367, s.11)
3. Section 11 of P.L.2001, c.347 (C.52:27H-66.6) is amended to read as follows:
11. a. Notwithstanding the provisions of any law, rule, regulation or order to the contrary, the designation of an enterprise zone by the authority pursuant to P.L.1983, c.303 (C.52:27H-60 et seq.), which is located in a municipality in which the annual average of unemployed persons is equal to or greater than 2,000, or the municipal average annual unemployment rate exceeds the State average annual unemployment rate, or an enterprise zone which is located in a municipality contiguous to a municipality in which an enterprise zone is designated pursuant to P.L.1983, c.303 (C.52:27H-60 et seq.) and in which the annual average of unemployed persons is equal to or greater than 2,000 or the municipal average annual unemployment rate exceeds the State average annual unemployment rate, shall, following the expiration of the third five-year period during which the State shall have collected reduced rate revenues within the zone as provided in subsection c. of section 21 of P.L.1983, c.303 (C.52:27H-80), be extended by the authority, on a one-time basis, for a period of 16 years, within 90 days after the effective date of P.L.2001, c.347 (C.52:27H-66.2 et al.), or within 90 days after the expiration of that third five-year period, whichever is later.
b. During the 90-day period provided for in subsection a. of this section, the authority shall notify all qualified businesses in the enterprise zone that the benefits authorized by sections 16 through 20 of P.L.1983, c.303 (C.52:27H-75 through C.52:27H-79) shall be extended to qualified businesses in the enterprise zone commencing with the designation of the extended enterprise zone and continuing as long as a zone retains its designation as an extended enterprise zone.
c. Notwithstanding any other provisions of any law, rule or regulation to the contrary, 90 days after the expiration of the period provided for in subsection c. of section 21 of P.L.1983, c.303 (C.52:27H-80), except as provided in subsection b. of section 6 of P.L.1996, c.124 (C.13:1E-116.6), and after first depositing 10 percent of the gross amount of all revenues received from the taxation of retail sales made by certified vendors from business locations in an extended enterprise zone designated pursuant to subsection a. of this section, to which this exemption shall apply into the account created in the name of the authority in the enterprise zone assistance fund pursuant to section 29 of P.L.1983, c.303 (C.52:27H-88), the remaining 90 percent shall, except as otherwise provided in this section, be deposited immediately upon collection by the Department of the Treasury, as follows:
(1) In the first five-year period during which the State shall have collected reduced rate revenues within the extended enterprise zone, all such revenues shall be deposited in the enterprise zone assistance fund created pursuant to section 29 of P.L.1983, c.303 (C.52:27H-88);
(2) In the second five-year period during which the State shall have collected reduced rate revenues within the extended enterprise zone, 66 2/3% of all those revenues shall be deposited in the enterprise zone assistance fund, and 33 1/3% shall be deposited in the General Fund;
(3) In the third five-year period during which the State shall have collected reduced rate revenues within the extended enterprise zone, 33 1/3% of all those revenues shall be deposited in the enterprise zone assistance fund, and 66 2/3% shall be deposited in the General Fund;
(4) In the final year during which the State shall have collected reduced rate revenues within the extended enterprise zone, but not to exceed the life of the enterprise zone, all those revenues shall be deposited in the General Fund.
Notwithstanding the deposit schedule established under this subsection, commencing on the effective date of P.L. , c. (pending before the Legislature as this bill), in any fiscal year immediately following a fiscal year in which the amount of reduced rate revenues collected within an enterprise zone shall have been less than $5 million, the State Treasurer shall deposit the entire amount of those revenues so collected into the enterprise zone assistance fund account for that zone. The State Treasurer shall make such deposit immediately upon collection of the funds by the Department of the Treasury.
The revenues required to be deposited in the enterprise zone assistance fund under this section shall be used for the purposes of that fund and for the uses prescribed in section 29 of P.L.1983, c.303 (C.52:27H-88), subject to annual appropriations being made for those purposes and uses.
d. The designation as an extended enterprise zone pursuant to this section shall terminate if the authority determines that the municipality in which the zone is located fails to meet the criteria of subsection a. of this section for three consecutive years. Any enterprise zone which loses its designation as an extended enterprise zone pursuant to this subsection shall be eligible to re-apply to the authority for designation as an extended enterprise zone pursuant to the provisions of P.L.1983, c.303 (C.52:27H-60 et seq.). If the authority approves its application, an urban enterprise zone designation may be extended to the applicant in accordance with the schedules set forth in P.L.1983, c.303 (C.52:27H-60 et seq.), beginning at the point where the enterprise zone was located on such schedules on the effective date of P.L.2001, c.347 (C.52:27H-66.2 et al.).
(cf: P.L.2001, c.347, s.11)
4. Section 21 of P.L.1983, c.303 (C.52:27H-80) is amended to read as follows:
21. Receipts of retail sales, except retail sales of motor vehicles, of alcoholic beverages as defined in the "Alcoholic Beverage Tax Law," R.S.54:41-1 et seq., of cigarettes as defined in the "Cigarette Tax Act," P.L.1948, c.65 (C.54:40A-1 et seq.), of manufacturing machinery, equipment or apparatus, and of energy, made by a certified vendor from a place of business owned or leased and regularly operated by the vendor for the purpose of making retail sales, and located in a designated enterprise zone established pursuant to the "New Jersey Urban Enterprise Zones Act," P.L.1983, c.303 [(C.52:27H-60 et al.)] (C.52:27H-60 et seq.), or a UEZ-impacted business district established pursuant to section 3 of P.L.2001, c.347 (C.52:27H-66.2), are exempt to the extent of 50% of the tax imposed under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.).
Any vendor, which is a qualified business having a place of business located in a designated enterprise zone or in a designated UEZ-impacted business district, may apply to the Director of the Division of Taxation in the Department of the Treasury for certification pursuant to this section. The director shall certify a vendor if he shall find that the vendor owns or leases and regularly operates a place of business located in the designated enterprise zone or in the designated UEZ-impacted business district for the purpose of making retail sales, that items are regularly exhibited and offered for retail sale at that location, and that the place of business is not utilized primarily for the purpose of catalogue or mail order sales. The certification under this section shall remain in effect during the time the business retains its status as a qualified business meeting the eligibility criteria of section 27 of P.L.1983, c.303 (C.52:27H-86). However, the director may at any time revoke a certification granted pursuant to this section if he shall determine that the vendor no longer complies with the provisions of this section.
Notwithstanding the provisions of this act to the contrary, except as may otherwise be provided by section 7 of P.L.1983, c.303 (C.52:27H-66), the authority may, in its discretion, determine whether or not the provisions of this section shall apply to any enterprise zone designated after the effective date of P.L.1985, c.142 (C.52:27H-66 et al.); provided, however, that the authority may make such a determination only where the authority finds that the award of an exemption of 50 percent of the tax imposed under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.) will not have any adverse economic impact upon any other urban enterprise zone.
Notwithstanding any other provisions of law to the contrary, except as provided in subsection b. of section 6 of P.L.1996, c.124 (C.13:1E-116.6), after first depositing 10 percent of the gross amount of all revenues received from the taxation of retail sales made by certified vendors from business locations in designated enterprise zones to which this exemption shall apply into the account created in the name of the authority in the enterprise zone assistance fund pursuant to section 29 of P.L.1983, c.303 (C.52:27H-88), the remaining 90 percent shall, except as otherwise provided in this section, be deposited immediately upon collection by the Department of the Treasury, as follows:
a. In the first five-year period during which the State shall have collected reduced rate revenues within an enterprise zone, all such revenues shall be deposited in the enterprise zone assistance fund created pursuant to section 29 of P.L.1983, c.303 (C.52:27H-88);
b. In the second five-year period during which the State shall have collected reduced rate revenues within an enterprise zone, 66 2/3% of all those revenues shall be deposited in the enterprise zone assistance fund, and 33 1/3% shall be deposited in the General Fund;
c. In the third five-year period during which the State shall have collected reduced rate revenues within an enterprise zone, 33 1/3% of all those revenues shall be deposited in the enterprise zone assistance fund, and 66 2/3% shall be deposited in the General Fund;
d. In the final five-year period during which the State shall have collected reduced rate revenues within an enterprise zone, but not to exceed the life of the enterprise zone, all those revenues shall be deposited in the General Fund.
Notwithstanding the deposit schedule established under this subsection, commencing on the effective date of P.L. , c. (pending before the Legislature as this bill), in any fiscal year immediately following a fiscal year in which the amount of reduced rate revenues collected within an enterprise zone shall have been less than $5 million, the State Treasurer shall deposit the entire amount of those revenues so collected into the enterprise zone assistance fund account for that zone. The State Treasurer shall make such deposit immediately upon collection of the funds by the Department of the Treasury.
Commencing on the effective date of P.L.1993, c.144, all revenues in any enterprise zone to which the provisions of this section have been extended prior to the enactment of P.L.1993, c.144 shall be deposited into the enterprise zone assistance fund until there shall have been deposited all revenues into that fund for a total of five full years, as set forth in subsection a. of this section. The State Treasurer then shall proceed to deposit funds into the enterprise zone assistance fund according to the schedule set forth in subsections b. through d. of this section, beginning at the point where the enterprise zone was located on that schedule on the effective date of P.L.1993, c.144. No enterprise zone shall receive the deposit benefit granted by any one subsection of this section for more than five cumulative years.
The revenues required to be deposited in the enterprise zone assistance fund under this section shall be used for the purposes of that fund and for the uses prescribed in section 29 of P.L.1983, c.303 (C.52:27H-88), subject to annual appropriations being made for those purposes and uses.
(cf: P.L.2001, c.347, s.9)
5. Section 28 of P.L.1983, c.303 (C.52:27H-87) is amended to read as follows:
28. [Any firm that receives] a. In order to receive any benefits set forth in sections 16 through 24 of [this act] P.L.1983, c.303 (C.52:27H-75 through C.52:27H-83), a firm shall [annually] certify initially and every three years thereafter to the authority that it is a qualified business under subsection c. of section 3 of [this act] P.L.1983, c.303 (C.52:27H-62). Failure to supply the certification or willful falsification of data in the certification will result in a fine of not more than ten times the benefits received, nor more than two years in prison.
b. If the authority finds that such firm is not in compliance with such certification as a qualified business, such firm, for a period of up to six months, shall be able to take corrective action to remain as a qualified business before any benefits set forth in sections 16 through 24 of P.L.1983, c.303 (C.52:27H-75 through C.52:27H-83) are discontinued.
(cf: P.L.1983, c.303, s.28)
6. Section 29 of P.L.1983, c.303 (C.52:27H-88) is amended to read as follows:
29. a. There is created an enterprise zone assistance fund to be held by the State Treasurer, which shall be the repository for all moneys required to be deposited therein under section 21 of P.L.1983, c.303 (C.52:27H-80) or moneys appropriated annually to the fund. All moneys deposited in the fund shall be held and disbursed in the amounts necessary to fulfill the purposes of this section and subject to the requirements hereinafter prescribed. The State Treasurer may invest and reinvest any moneys in the fund, or any portion thereof, in legal obligations of the United States or of the State or of any political subdivision thereof. Any income from, interest on, or increment to moneys so invested or reinvested shall be included in the fund.
The State Treasurer shall maintain separate accounts for each enterprise zone designated under [this act] P.L.1983, c.303 (C.52:27H-60 et seq.), and one in the authority's name for the administration of the Urban Enterprise Zone program. The State Treasurer shall credit to each account an amount of the moneys deposited in the fund equal to the amount of revenues collected from the taxation of retail sales made in the zone and appropriated to the enterprise zone assistance fund, or that amount of moneys appropriated to the fund and required to be credited to the enterprise zone account of the qualifying municipality pursuant to section 21 of P.L.1983, c.303 (C.52:27H-80). The State Treasurer shall deposit on a quarterly basis any income from interest on monies invested or reinvested, pursuant to this subsection, to the account of an enterprise zone located in a municipality receiving financial assistance under the "Special Municipal Aid Act," P.L.1987, c.75 (C.52:27D-118.24 et seq.) for use towards any administrative or project fund balance for such enterprise zone.
The State Treasurer shall promulgate the rules and regulations necessary to govern the administration of the fund for the purposes of this section, which shall include, but not be limited to, regulations requiring the establishment of separate bank accounts for funds credited to the enterprise zone account of each municipality from the enterprise zone assistance fund, commonly known as "first generation funds," and funds generated from the repayments of loans to individuals and businesses from the enterprise zone account of each municipality and the proceeds from the sale of properties and equipment acquired through the enterprise zone program, commonly known as "second generation funds," and the review, compilation, and monitoring of second generation fund quarterly reports submitted by each enterprise zone.
Any individual, including an individual who is not directly employed by a municipality, with the authority to administer, allocate or approve the use of zone assistance funds is subject to the "Local Government Ethics Law," P.L.1991, c.29 (C.40A:9-22.1 et seq.), unless the individual is a State employee or a special State officer.
b. The enterprise zone assistance fund shall be used for the purpose of assisting qualifying municipalities in which enterprise zones are designated in undertaking public improvements, economic development projects and in upgrading eligible municipal services in designated enterprise zones.
c. The governing body of a qualifying municipality in which an enterprise zone is designated and the zone development corporation created or designated by the municipality for that enterprise zone may, by resolution jointly adopted after public hearing, propose to undertake a project for the public improvement of the enterprise zone or to increase eligible municipal services in the enterprise zone, and to fund that project or increase in eligible municipal services from moneys deposited in the enterprise zone assistance fund and credited to the account maintained by the State Treasurer for the enterprise zone.
The proposal so adopted shall set forth a plan for the project or for the increase in eligible municipal services and shall include:
(1) A description of the proposed project or of the municipal services to be increased;
(2) An estimate of the total project costs, or of the total costs of increasing the municipal services, and an estimate of the amounts of funding necessary annually from the enterprise zone account;
(3) A statement of any other revenue sources to be used to finance the project or to fund the increase in eligible municipal services;
(4) A statement of the time necessary to complete the project, or of the time during which the increased municipal services are to be maintained;
(5) A statement of the manner in which the proposed project or increase in municipal services furthers the municipality's policy and intentions for addressing the economic and social conditions existing in the area of the enterprise zone as set forth in the zone development plan approved by the authority; and
(6) A description of the financial and programmatic controls and reporting mechanisms to be used to guarantee that the funds will be spent in accordance with the plan and that the project or increased municipal service will accomplish its purpose.
As used in this section, "project" means an activity funded by the zone assistance fund through the qualified municipality and implemented by the zone development corporation, including the purchasing, leasing, condemning, or otherwise acquiring of land or other property, or an interest therein, in the enterprise zone or as necessary for a right-of-way or other easement to or from the enterprise zone; the relocating and moving of persons or businesses displaced by the acquisition of land or property; the rehabilitation and redevelopment of land or property, including demolition, clearance, removal, relocation, renovation, alteration, construction, reconstruction, installation or repair of a land or a building, street, highway, alley, utility, service or other structure or improvement which will lead to increased economic activity within the zone; the acquisition, construction, reconstruction, rehabilitation, or installation of public facilities and improvements, except buildings and facilities for the general conduct of government and schools; the establishment of revolving loan or grant programs for qualified businesses in the zone to encourage private investment and job creation, matching grant programs for the establishment or operation of pedestrian malls, special improvement districts and tax increment districts, or other appropriate entity; marketing, advertising and special event activities that will lead to increased economic activity or encourage private investment and job creation in the zone, but not including the expenditures therefor which are required to be reported pursuant to "The New Jersey Campaign Contributions and Expenditures Reporting Act," P.L.1973, c.83 (C.19:44A-1 et seq.) and the costs associated therewith including the costs of an administrative appraisal, economic and environmental analyses, environmental remediation, engineering, planning, design, architectural, surveying or other professional or managerial services.
As used in this section, "eligible municipal services" means the hiring of additional policemen or firemen assigned duties in the enterprise zone, or the purchasing or leasing of additional police or fire vehicles, equipment or apparatus to be used for the provision of augmented or upgraded public safety services in the enterprise zone and its immediate vicinities.
d. Upon adoption by the governing body of the qualifying municipality and by the zone development corporation, the proposal shall be sent to the authority for its evaluation and approval. The authority shall approve the proposal if it shall find:
(1) In the case of a project, that the proposed project furthers the policy and intentions of the zone development plan approved by the authority, and that the estimated annual payments for the project from the enterprise zone account to which the proposal pertains are not likely to result in a deficit in that account;
(2) In the case of an increase in eligible municipal services, that the proposal furthers the policy and intentions of the zone development plan approved by the authority; that the qualifying municipality has furnished satisfactory assurances that the additional policemen or firemen to be hired, or the additional vehicles, equipment or apparatus to be purchased or leased, shall be used to augment or upgrade public safety in the enterprise zone, and shall not be used in other areas of the municipality; that the qualifying municipality shall annually appropriate for the increased eligible municipal services an amount equal to 20% of the amount of annual payments for the eligible municipal services from the enterprise zone account [and shall not request for the increased eligible municipal services an amount equal to more than 35% of the amount of annual payments into the enterprise zone account, unless the municipality and the authority have entered into an agreement or agreements to the contrary prior to July 1, 1992]; and that the estimated annual payments for the eligible municipal services from the enterprise zone account to which the proposal pertains are not likely to result in a deficit in that account.
e. If the authority shall approve the proposal, it shall annually, upon its receipt of a written statement from the governing body of the qualifying municipality and the zone development corporation, certify to the State Treasurer the amount to be paid in that year from the enterprise zone account in the enterprise zone assistance fund with respect to each project or increase in eligible municipal services approved. The authority may at any time revoke its approval of a project or an increase in eligible municipal services if it finds that the annual payments made from the enterprise zone assistance fund are not being used as required by this section.
f. Upon certification by the authority of the annual amount to be paid to a qualifying zone with respect to any project or increase in eligible municipal services, the State Treasurer shall pay in each year to the qualifying municipality from the amounts deposited in the enterprise zone assistance fund the amount so certified, within the limits of the amounts credited to the enterprise zone account of the qualifying municipality.
g. An amount not to exceed one-third of the amount deposited in the account created in the name of the authority in the enterprise zone assistance fund shall be used by the authority for the coordination and administration of the program throughout the State, including but not limited to costs for personnel, operating expenses and marketing. The balance of the remaining amount shall be distributed to qualifying municipalities in proportion to each municipality's contribution to the enterprise zone assistance fund for the coordination and administration of the program within the municipality, including but not limited to costs for personnel, operating expenses and marketing.
(cf: P.L.2006, c.34, s.4)
7. The New Jersey Urban Enterprise Zone Authority shall adopt rules and regulations requiring that not less than the prevailing wage rate be paid to workers employed in the performance of any construction undertaken in connection with authority financial assistance or any of its projects, or undertaken to fulfill any condition of receiving authority financial assistance, including the performance of any contract to construct, renovate or otherwise prepare a facility, the operations of which are necessary for the receipt of authority financial assistance. The prevailing wage rate shall be the rate determined by the Commissioner of Labor and Workforce Development pursuant to the provisions of P.L.1963, c.150 (C.34:11-56.25 et seq.). For the purposes of this section, "authority financial assistance" means any loan, loan guarantee, grant, incentive, tax exemption or other financial assistance which is, in connection with construction, approved, funded, authorized, administered, or provided by the authority, a qualifying municipality, or another entity pursuant to the provisions of P.L.1983, c.303 (C.52:27H-60 et seq.), whether the assistance is received before, during, or after completion of the construction, except that this section shall not be construed as requiring the payment of the prevailing wage for construction commencing more than two years after the first payment or other provision of the assistance is received.
8. This act shall take effect on the 60th day after the date of enactment.
STATEMENT
This bill makes several changes to the law governing the urban enterprise zone ("UEZ") program to do the following: 1) eliminate, for new firms in an existing UEZ or UEZ-impacted district employing under five full-time employees that seek eligibility as a "qualified business," requirements that the firm's employees meet certain residency or low-income criteria, or recently have been unemployed or received public assistance benefits; 2) require, on a quarterly basis, the distribution of interest income from the UEZ Assistance Fund to be applied to UEZs in municipalities receiving financial assistance under the "Special Municipal Aid Act," P.L.1987, c.75 (C.52:27D-118.24 et seq.) for use by those UEZs for project financing or administrative purposes; 3) during any fiscal year immediately following a fiscal year of reduced rate UEZ revenues, require the State Treasurer to dedicate all revenues from reduced rate sales and use tax collections in the fund account of any UEZ that generates less than $5 million in annual sales and use tax revenue; 4) reduce the frequency with which firms must certify eligibility, as a "qualified business," for UEZ benefits from annually to every three years after initial certification, and provide that if a qualified business is determined to be out of compliance, the business shall have six months to take necessary action to be in compliance before any reduced rate sales and use tax or other UEZ benefits are discontinued; 5) require the UEZ authority to undertake a program performance study which compares the UEZ program's performance prior to and after the implementation of P.L.2006, c.34 and the impact of the changes to the program upon the implementation of the provisions of this bill, and to update the latter portion of the study within 30 days after the end of the third State fiscal year following the effective date of the bill; and 6) remove a requirement that a municipality exclude the cost of "eligible municipal services," as defined under the act, from the 35 percent municipal service cap in order for such costs to be deemed an eligible municipal service.
The bill also provides that the New Jersey Urban Enterprise Zone Authority shall adopt rules and regulations requiring that not less than the prevailing wage rate be paid to workers employed in the performance of any construction undertaken in connection with authority financial assistance or any of its projects, or undertaken to fulfill any condition of receiving authority financial assistance, including the performance of any contract to construct, renovate, or otherwise prepare a facility, the operations of which are necessary for the receipt of authority financial assistance. The prevailing wage rate shall be the rate determined by the Commissioner of Labor and Workforce Development pursuant to the provisions of P.L.1963, c.150 (C.34:11-56.25 et seq.). As used in this section, "authority financial assistance" means any loan, loan guarantee, grant, incentive, tax exemption, or other financial assistance which is, in connection with construction, approved, funded, authorized, administered, or provided by the authority, a qualifying municipality, or another entity pursuant to the provisions of P.L.1983, c.303 (C.52:27H-60 et seq.), whether the assistance is received before, during, or after completion of the construction, except that this new section shall not be construed as requiring the payment of the prevailing wage for construction commencing more than two years after the first payment or other provision of the assistance is received.
