Bill Text: NJ S1379 | 2024-2025 | Regular Session | Introduced
Bill Title: Provides for EDA oversight and control over certain local economic development, community development, and housing programs if corruption is suspected following criminal charge or conviction of local official.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2024-01-09 - Introduced in the Senate, Referred to Senate Economic Growth Committee [S1379 Detail]
Download: New_Jersey-2024-S1379-Introduced.html
STATE OF NEW JERSEY
221st LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION
Sponsored by:
Senator MICHAEL L. TESTA, JR.
District 1 (Atlantic, Cape May and Cumberland)
SYNOPSIS
Provides for EDA oversight and control over certain local economic development, community development, and housing programs if corruption is suspected following criminal charge or conviction of local official.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act providing for oversight and control over certain local economic development, community development, and housing programs in certain circumstances 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. a. Notwithstanding any provision of law to the contrary, a municipal development program shall be subject to New Jersey Economic Development Authority review, supervision, and control under this section if a municipal officer or program official is convicted of, or indicted or charged for, a crime or offense involving public corruption under federal or State law.
b. The authority shall develop and promulgate rules and regulations to effectuate this section, which shall include but not be limited to:
(1) the establishment of a reporting system, whereby the authority shall annually notify the United States Attorney for the District of New Jersey, the Division of Criminal Justice in the Department of Law and Public Safety, and each county prosecutor of the enactment of P.L. , c. (C. ) (pending before the Legislature as this bill), and shall request each office to notify the authority of all applicable charges, indictments, or convictions which occurred within three years prior to the date of enactment, and at any time after the date of enactment;
(2) the selection and appointment of an economic and community development monitor to oversee an applicable municipal development program;
(3) the establishment of criteria governing the length and terms of authority review, supervision, and control over a municipal development program. If the authority is notified of a single applicable conviction, indictment, or charge pertaining to a municipality or one of its authorities or related agencies, the authority may appoint an economic and community development monitor to oversee that municipality's and authorities or related agencies municipal development programs for a period of three years from the date of the last conviction, indictment, or charge. If the authority is notified of three or more applicable convictions, indictments, or charges pertaining to a municipality and its authorities or related agencies within a three-year period, the authority shall immediately appoint an economic and community development monitor to oversee that municipality's, and its authorities' or related agencies', municipal development programs for a period of three years from the date of the last conviction, indictment, or charge.
c. (1) The chief executive officer of the authority shall provide an economic and community development monitor with the powers and authority necessary and appropriate to oversee and control an applicable municipal development program, which powers shall include but not limited to:
(a) the power to approve, prohibit, or condition the sale or conveyance of real property;
(b) the power to approve, prohibit, or condition the execution of a redeveloper agreement, a financial agreement, or any other agreement involving an exemption from property taxation;
(c) such other powers as the chief executive officer deems necessary or appropriate to oversee an applicable municipal development program.
(2) The chief executive officer of the authority may implement the requirements of this section without securing approval of the authority.
d. As used in this section:
"Authority" means the New Jersey Economic Development Authority established pursuant to section 4 of P.L.1974, c.80 (C.34:1B-4).
"Chief executive officer" means the chief executive officer of the New Jersey Economic Development Authority.
"Economic and community development monitor" means an employee or agent of the authority who is empowered to oversee and control a municipal development program after a municipal officer or program official is convicted of, or indicted or charged for, a crime or offense involving public corruption.
"Involves or touches the officer or official's office or employment" means a crime or offense related directly to a person's performance in, or circumstances flowing from, a specific public office, position or employment held by the person.
"Municipal development program" means a municipal economic development, housing, or community development program, including but not limited to a program operated by a municipality, or by an authority or a nonprofit corporation which has entered into a contract, lease, or other type of agreement with a municipality to fulfill or further a municipal public purpose related, in whole or in part, to economic development, housing, or community development. "Municipal development program" shall include but not be limited to a program operated by a housing authority, redeveloper, redevelopment agency, or redevelopment entity under the "Local Redevelopment and Housing Law," P.L.1992, c.79 (C.40A:12A-1 et al.).
"Municipal officer or program official" means an elected officer of a municipality or an appointed officer or employee with responsibilities related to a municipal development program, including but not limited to an officer or employee of a nonprofit corporation if the municipality has appointed, or has the authority to appoint, one or more members to the nonprofit corporation's board of trustees.
"Public corruption" means a crime charged against a municipal officer or program official which involves or touches the municipal officer or program official's office or employment, including but not limited to: a crime involving theft under N.J.S.2C:20-1 et seq., a crime involving false claims relating to government contacts under section 97 of P.L.1999, c.440 (C.2C:21-34); a crime involving bribery and corrupt influence under N.J.S. 2C:27-1 et seq.; and a crime involving official misconduct under N.J.S. 2C:30-2.
"Related agency" means a nonprofit corporation if the municipality has appointed, or has the authority to appoint, one or more members to the nonprofit corporation's board of trustees.
2. This act shall take effect immediately and shall be applicable to criminal convictions, indictments and charges occurring three years prior to, or on or after the date of enactment.
STATEMENT
This bill is being introduced in response to recent charges, indictments, and convictions of local public officials, including a Newark City councilman and deputy mayor, in which local officials were involved with important development, redevelopment, and housing projects. Despite a pattern of corruption in that city and elsewhere, the State has failed to exercise meaningful development oversight of local government officials whose development offices are in desperate need of improvement.
This bill provides for State oversight and control of municipal development programs that experience incidents of corruption by certain public officials. The bill defines the term municipal development program to mean a municipal economic development, housing, or community development program, including but not limited to a program operated by a municipality, or by an authority or a nonprofit corporation, including programs operated by a housing authority, redeveloper, redevelopment agency, or redevelopment entity under the "Local Redevelopment and Housing Law," P.L.1992, c.79 (C.40A:12A-1 et al.).
The bill would empower the New Jersey Economic Development Authority (EDA) to subject a municipal development program to EDA review and supervision if a municipal officer or program official is convicted of, or indicted or charged for, a crime or offense involving public corruption under federal or State law.
The bill requires EDA to develop and promulgate rules and regulations to implement the provisions of the bill. Under the bill, the rules and regulations are required to:
establish a reporting system through which the United States Attorney for the District of New Jersey, the Division of Criminal Justice in the Department of Law and Public Safety, and each county prosecutor would annually be requested to notify EDA of an applicable charge, indictment, or conviction;
provide for the selection and appointment of economic and community development monitors to oversee applicable municipal development programs;
establish criteria governing the length and terms of EDA review, supervision, and control over a municipal development program. The bill specifies that: if EDA is notified of a single applicable conviction, indictment, or charge pertaining to a municipality, EDA may appoint an economic and community development monitor to oversee that municipality's municipal development programs for a period of three years from the date of the last conviction, indictment, or charge; and if EDA is notified of three or more applicable convictions, indictments, or charges pertaining to a municipality within a three-year period, EDA is required to immediately appoint an economic and community development monitor to oversee that municipality's municipal development programs for a period of three years from the date of the last conviction, indictment, or charge.
The bill authorizes the chief executive officer of the EDA to implement the requirements of the bill without securing approval of the authority.
