Bill Text: NJ A1397 | 2012-2013 | Regular Session | Introduced
Bill Title: Establishes New Jersey Food Access Initiative; funds initiative with certain sales tax revenue from urban enterprise zones for five years.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2012-01-10 - Introduced, Referred to Assembly Budget Committee [A1397 Detail]
Download: New_Jersey-2012-A1397-Introduced.html
STATE OF NEW JERSEY
215th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2012 SESSION
Sponsored by:
Assemblyman GILBERT "WHIP" L. WILSON
District 5 (Camden and Gloucester)
Assemblyman ANGEL FUENTES
District 5 (Camden and Gloucester)
SYNOPSIS
Establishes New Jersey Food Access Initiative; funds initiative with certain sales tax revenue from urban enterprise zones for five years.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel
An Act concerning funding of the New Jersey Food Access Initiative with certain sales tax revenue, supplementing Title 34 of the Revised Statutes and amending P.L.2001, c.347 and P.L.1983, c.303.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. (New section) Sections 1 through 6 of this act shall be known and may be cited as the "Fresh Food Access Act."
2. (New section) As used in this act:
"Authority" means the New Jersey Economic Development Authority.
"Initiative" means the New Jersey Access Initiative created pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill).
"Loan fund" means the food access loan fund, created within the initiative.
"Grant fund" means the food access grant fund, created within the initiative.
3. (New section) a. The authority shall establish the New Jersey Food Access Initiative. The initiative shall provide loan and grant moneys to assist businesses in providing fresh and healthy foods in areas of the State where there is a demonstrated lack of availability of such foods. The initiative will specifically target areas where infrastructure costs and credit needs are often unmet by conventional financing institutions.
b. The authority shall be responsible for administering the initiative. The authority may administer the initiative on its own or through partnership with a private institution.
c. The initiative shall seek additional sources of non-State capital including federal, local and private funding sources.
4. (New section) a. The authority shall establish, within the initiative, a food access loan fund to provide financing to businesses that sell fresh and healthy foods in areas of the State where there is a demonstrated lack of availability of such food.
b. The authority shall be responsible for administering the loan fund. It may administer the loan program on its own or through partnership with a private institution.
c. To be eligible for loan funding, a business shall be located in the State and lack access to traditional sources of financing at the rates offered by the initiative.
d. Factors that the authority shall use in determining which applicants receive loans and the amount of the loan shall include, but not be limited to:
(1) The need of the area where the business will be located for access to fresh food;
(2) The number of jobs to be created by the project;
(3) Potential for repayment of the loan; and
(4) The likelihood that the applicant's receipt of a loan will enable the development of a sustainable business that will not require program assistance in the future.
5. (New section) a. The authority shall establish a food access grant fund within the initiative from which the authority shall award grants to approved recipients of food access loans.
b. The authority shall be responsible for administering the grant fund. It may administer the grant program on its own or through partnership with a private institution.
c. Food access grant money may be provided as direct funding to a business or may be granted as a subsidy to loan loss reserves or interest rate subsidies to improve the terms of a loan issued through the loan fund.
d. Grants shall only be provided to approved recipients of food access loans.
e. The authority shall award grants based on factors including, but not limited to:
(1) The need of the area to be served for access to fresh food;
(2) The number of jobs to be created by the project;
(3) Potential repayment of the initiative loan; and
(4) The likelihood that the applicant's receipt of a loan will enable the development of a sustainable business that will not require program assistance in the future.
6. (New section) The revenue dedicated to the authority pursuant to section 11 of P.L.2001, c.347 (C.52:27H-66.6) and section 21 of P.L.1983, c.303 (C.52:27H-80) shall be directed to the initiative as follows:
a. Eighty percent of the revenue directed to the authority pursuant to subsection c. of section 11 of P.L.2001, c.347 (C.52:27H-66.6) and section 21 of P.L.1983, c.303 (C.52:27H-80) shall be deposited into the loan fund.
b. Twenty percent of the revenue directed to the authority pursuant to subsection c. of section 11 of P.L.2001, c.347 (C.52:27H-66.6) and section 21 of P.L.1983, c.303 (C.52:27H-80) shall be deposited into the grant fund.
c. Any money deposited into the loan fund pursuant to this section shall be redeposited into the initiative upon repayment by the borrower. The redeposit of moneys shall be in the same ratio as the original deposits with 80% of the repayment deposited into the loan fund and 20% of the repayment deposited into the grant fund.
7. 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] sellers 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); and depositing the next five percent for a period of 60 consecutive months beginning with the first month next following the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) into the account of the New Jersey Economic Development Authority for the purpose of funding the New Jersey Food Access Initiative, the remaining 90 percent shall be deposited immediately upon collection by the Department of the Treasury, provided however, that for the 60 consecutive months beginning with the first month next following the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), the remaining 85 percent shall 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.
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)
8. 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 seller from a place of business owned or leased and regularly operated by the seller 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.), 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 seller, 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 seller if the director shall find that the seller 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 the director shall determine that the seller 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 if 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 sellers 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); and depositing the next five percent for a period of 60 consecutive months beginning with the first month next following the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) into the account of the New Jersey Economic Development Authority for the purpose of funding the New Jersey Food Access Initiative, the remaining 90 percent shall be deposited immediately upon collection by the Department of the Treasury, provided however, that for the 60 consecutive months beginning with the first month next following the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), the remaining 85 percent shall 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.
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.2011, c.49, s.15)
9. (New section) The executive director of the authority shall promulgate any rules and regulations pursuant to the "Administrative Procedure Act" P.L.1968, c.410 (C.52:14B-1 et seq.) that the executive director determines are necessary to effectuate the provisions of this act.
10. (New section) The authority shall file a report to the Legislature pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1) on or before the last day of the 54th month next following the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill). The report shall evaluate the effectiveness of the initiative. It shall include the number of loan and grant applicants, the number and size of all grant and loan awards, the performance of the loan portfolio over time, the number of jobs created, the square footage of retail created, and any other factors that the authority finds useful in evaluating the performance of the initiative.
11. This act shall take effect immediately.
STATEMENT
This bill dedicates 5% of the sales tax generated in Urban Enterprise Zones to the New Jersey Economic Development Authority (NJEDA) for a period of five years. NJEDA is required to use that revenue to implement the Fresh Food Access Act, which includes the establishment of the New Jersey Food Access Initiative (the "initiative"), which currently exists and is administered as part of a public-private partnership between the NJEDA and The Reinvestment Fund (TRF), a private community development financial institution. The bill also provides funding for grant and loan components of the initiative.
The initiative is a loan and grant fund primarily administered by TRF and is designed to meet the financing needs of supermarket operators that are seeking to locate within an area where infrastructure costs and credit needs are often high and unmet by conventional financing institutions. The initiative currently provides below market rate loans and is modeled on the Pennsylvania Fresh Food Financing Initiative.
The NJEDA is directed to establish a loan and grant fund within the initiative. The grant fund will provide loan recipients under the program with direct pass through funds or interest rate subsidies in order to increase the effectiveness of the program. The grants shall be administered by the NJEDA or through a contract with a private entity. Loans and grants are to be administered based upon three primary considerations: supplying the areas with the greatest need for fresh food, generating the most jobs, and supporting businesses that will become self-sustaining and successful without the need for any further assistance.
Under the bill, 5% of the sales tax revenue generated in an Urban Enterprise Zone is directed to the NJEDA. This 5% represents revenue that would have been divided between the enterprise zone assistance fund and the general fund. The 5% would now be directed to the initiative with 1% of the sales tax revenue funding grants to qualified applicants and 4% of the sales tax revenue funding the revolving loan pool which provides low interest loans to qualified applicants.
Finally, the NJEDA is required to submit a report no less than six months prior to the end of the five year funding period which covers the first four years of the program and evaluates the effectiveness of the program.
