Bill Text: NJ S173 | 2014-2015 | Regular Session | Introduced
Bill Title: Revises calculation of assessments concerning certain casino licensee fees; clarifies certain conditions of employment concerning Atlantic City Tourism District; makes non-gaming tourism district and certain CRDA project site properties eligible for tax credits.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2014-01-14 - Introduced in the Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee [S173 Detail]
Download: New_Jersey-2014-S173-Introduced.html
STATE OF NEW JERSEY
216th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2014 SESSION
Sponsored by:
Senator JIM WHELAN
District 2 (Atlantic)
SYNOPSIS
Revises calculation of assessments concerning certain casino licensee fees; clarifies certain conditions of employment concerning Atlantic City Tourism District; makes non-gaming tourism district and certain CRDA project site properties eligible for tax credits.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel
An Act concerning the assessment of certain casino licensee fees and employment conditions regarding the Atlantic City Tourism District, and allows tax credits for certain Atlantic City properties and amending and supplementing P.L.2011, c.18.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 1 of P.L.2011, c.18 (C.5:12-218) is amended to read as follows:
1. As used in P.L.2011, c.18 (C.5:12-218 et al.):
"Atlantic City" or "city" means the City of Atlantic City, Atlantic County.
"Atlantic City convention center project" or "convention center project" means the project authorized by paragraph (9) of subsection a. of section 6 of P.L.1971, c.137 (C.5:10-6).
"Atlantic City Tourism District" or "tourism district" means the district within Atlantic City established pursuant to section 5 of P.L.2011, c.18 (C.5:12-219).
"Authority" means the Casino Reinvestment Development Authority established pursuant to section 5 of P.L.1984, c.218 (C.5:12-153).
"Casino licensee" means the holder of a casino license issued pursuant to section 87 of P.L.1977, c.110 (C.5:12-87), or interim authorization granted pursuant to section 3 of P.L.1987, c.409 (C.5:12-95.12), that permits such holder to operate a casino within Atlantic City.
"Convention center authority" means the Atlantic City Convention and Visitors Authority established pursuant to section 3 of P.L.1981, c.459 (C.52:27H-31).
"Convention Center Division" or "division" means the division created pursuant to paragraph (1) of subsection b. of section 12 of P.L.2011, c.18 (C.5:12-226) to exist within the authority as a division of the authority.
"Corporation" means the not-for-profit corporation with which the authority is to undertake an agreement pursuant to subsection a. of section 7 of P.L.2011, c.18 (C.5:12-221).
"Development and design guidelines" means the development and design guidelines for site plan applications, which guidelines are to be adopted by the authority pursuant to section 6 of P.L.2011, c.18 (C.5:12-220).
"District land use regulations" means the regulations, applicable within the tourism district, that are to be adopted by the authority pursuant to P.L.2011, c.18 (C.5:12-218 et al.).
"Gaming" means, in addition to any meaning otherwise provided by law, any legalized form of gambling in New Jersey including, but not limited to, casino gambling and horse racing.
"Gross revenue" means that term as defined in section 24 of P.L.1977, c.110 (C.5:12-24).
"Nonconforming use" means a legal or pre-existing use or activity which fails to conform to the development and design guidelines or land use regulations adopted by the authority pursuant to P.L.2011, c.18 (C.5:12-218 et al.).
"Public safety improvements" means the development of infrastructure in the tourism district made for the purpose of increasing safety. Such improvements would include the development of appropriate security technology and the installation of increased lighting in outdoor areas, the installation of surveillance cameras, and the installation of emergency phones and lights throughout the tourism district for use by appropriate security and law enforcement personnel.
"Road and highway authority" means any State or local entity, including, but not limited to, Atlantic City or any agency thereof, Atlantic County or any agency thereof, the New Jersey Department of Transportation, and the South Jersey Transportation Authority established under section 4 of P.L.1991, c.252 (C.27:25A-4), or any other State or local entity having jurisdiction over (a) the roads and highways in the tourism district, (b) the roads and highways adjacent to the tourism district, (c) the land area in which the authority is an interested party pursuant to subsection c. of section 6 of P.L.2011, c.18 (C.5:12-220), or (d) the portion of the roads and highways in Atlantic City which provide direct access to the tourism district.
"Tourism district master plan" or "Master plan," or "plan," means the authority's comprehensive master plan for the redevelopment of the tourism district.
"Transfer Date" means, with respect to the assumption by the authority of the powers, duties, assets, and responsibilities of the convention center authority, the date on which (a) the chairs of the authority and the convention center authority certify to the Governor that all of the bonds issued by the convention center authority cease to be outstanding within the meaning of the resolutions pursuant to which the bonds were issued, and (b) the authority assumes all debts and statutory responsibilities of the convention center authority.
(cf: P.L.2011, c.18, s.1)
2. Section 7 of P.L.2011, c.18 (C.5:12-221) is amended to read as follows:
7. a. After the creation of the tourism district pursuant to section 5 of P.L.2011, c.18 (C.5:12-219):
(1) The authority shall enter into an agreement establishing a public-private partnership with a not-for-profit corporation comprising a majority of the casino licensees of this State [whose investors have invested a minimum of $1 billion in Atlantic City]. The purpose of the partnership shall be to undertake a full scale, broad-based, five-year, marketing program; provided, however, that the corporation shall be primarily responsible for the development and implementation of the program. If such not-for-profit corporation is created after the Transfer Date, the authority shall delegate its duty to enter into such an agreement to the Convention Center Division created pursuant to paragraph (1) of subsection b. of section 12 of P.L.2011, c.18 (C.5:12-226). In its implementation of the marketing program, the corporation shall develop a brand identity for Atlantic City and the tourism district that can be effectively and widely communicated. The brand identity shall be designed in a manner that will emphasize, to potential investors and tourists, Atlantic City's unique character, boardwalk attractions, and appeal as a destination resort. The corporation shall submit its plans for the marketing program, and any revisions thereto, to the authority, or division, as appropriate, for recommendations. The agreement between the authority, or the division, and the corporation shall have a term of five years, and may be extended for an additional term as determined by the authority, or the division, and the corporation. In addition to providing for the establishment of the marketing program, the agreement may provide that the corporation provide assistance to the authority concerning the establishment of the tourism district and implementation of the master plan. The agreement shall provide that the corporation, or the casino licensees which shall comprise its membership, will collectively make a contribution of $5,000,000 to the corporation or spend such funds prior to 2012 [toward] for the formation of the corporation and the marketing plan, or for the support and furtherance of the tourism district, and the percentage of such contribution by each casino licensee shall be made in proportion to [such casino licensee's] the gross revenue [in the preceding fiscal year] generated by each such casino licensee's Atlantic City casino property during fiscal year 2011, or any portion thereof. The authority, or the Convention Center Division, as the case may be, shall not enter into an agreement with the corporation, unless the corporation provides evidence that it has taken appropriate steps to ensure that it has the necessary administrative resources to assess and collect the contributions. Such contributions shall be allocated for the support of the marketing program, but any contributions not utilized or allocated for such purposes during the term of the agreement or any extension thereof shall be remitted to the authority for its use to support the marketing program or the tourism district.
Any public-private partnership or similar arrangement under this paragraph shall, subject to the oversight of the authority or the Convention Center Division, permit the corporation to control and employ other public and private funds made available to further implement the marketing program and advance the purposes of the tourism district.
(2) The authority or the Convention Center Division, as appropriate, shall assess a fee upon each casino licensee that does not make a contribution to the corporation as prescribed under paragraph (1) of this subsection, calculated in the same manner as the contribution. The fee so assessed shall be collected by the authority, and shall be remitted to and held by the corporation in trust for expenditure exclusively in accordance with the terms of the agreement with the authority or the division. The Division of Gaming Enforcement in the Department of Law and Public Safety shall have the authority to enforce the collection of any such fee from the casino licensee against whom such fee is assessed.
(3) The corporation shall file with the authority, or the division, a quarterly report of its expenditures made pursuant to the agreement.
(4) Assessment and collection of the contributions under paragraph (1) and fees under paragraph (2) of this subsection shall commence on the later of (a) January 1, 2012[. If] or (b) upon the establishment of the agreement created pursuant to paragraph (1) of this subsection [shall commence after], provided that such assessment and collection shall not commence prior to the date the 2011 gross revenue figures for casino licensees are available. In the calendar year beginning on January 1, 2012 [, such assessment and collection shall commence upon the date the agreement is established. The total amount to] and in each calendar year thereafter ending December 31, 2016, but for no less than five calendar years, whichever ends later, $30,000,000 annually shall be assessed, as contributions or fees, as appropriate, collectively upon all casino licensees [for each year], which amount shall be [$30,000,000,] payable to the corporation and assessed in arrears in quarterly installments in proportion to the [casino licensee's gross revenues generated in the preceding fiscal year, but the] gross revenue generated at each casino licensee's Atlantic City casino property during the quarter to which the assessment applies. The authority and not-for-profit corporation described in paragraph (1) of this subsection shall provide in the agreement entered into pursuant to paragraph (1) of this subsection that the assessed contributions and fees may be increased for the marketing program, or for the support of the tourism district, and allocation of the revenue from any such additional contributions and fees shall be made in accordance with the terms of the agreement entered into pursuant to paragraph (1) of this subsection. Any moneys collected pursuant to this subsection not used for the marketing program shall be allocated to the support of the tourism district according to terms set forth in the agreement established pursuant to paragraph (1) of this subsection.
(5) The authority or the Convention Center Division, as appropriate, shall assess a fee upon each casino licensee that does not make a payment to the corporation as provided pursuant to paragraph (4) of this subsection, calculated in the same manner as that contribution. The fee so assessed shall be collected by the authority, and shall be remitted to and held by the corporation in trust for expenditure exclusively in accordance with the terms of the agreement with the authority or the division, as appropriate. The Division of Gaming Enforcement in the Department of Law and Public Safety shall have the authority to enforce the collection of any such fee from the casino licensee against whom such fee is assessed.
(6) Any moneys collected pursuant to this subsection not used for or obligated to any purpose prior to the expiration of the agreement entered into pursuant to paragraph (1) of this subsection, or any extension thereof, shall be allocated by the authority for the support of the tourism district.
b. If within one year after the effective date of P.L.2011, c.18 (C.5:12-218 et al.), the not-for-profit corporation described under paragraph (1) of subsection a. of this section does not exist or is unable to perform its obligations under an agreement with the authority, or if the agreement is not renewed upon expiration of the term of the agreement, the authority, or the Convention Center Division, shall create a commission to be known as the Atlantic City Tourism Marketing Advisory Commission, consisting of members to be appointed by the authority. The authority shall appoint to the commission representatives of the casino and tourism industries, public citizens, and any other individual or organization the authority deems appropriate. The division shall develop and implement a full scale, broad-based, five-year marketing program. The commission shall be authorized to review the authority's annual budget and the authority's plans concerning the marketing program, and the authority shall give due consideration to those recommendations. The commission shall, from time to time, make recommendations to the authority concerning the authority's development and implementation of the marketing program. In its implementation of the marketing program, the authority, or the Convention Center Division, as the case may be, shall develop a brand identity for Atlantic City and the tourism district that can be effectively and widely communicated. The brand identity shall be designed in a manner that will emphasize, to potential investors and tourists, Atlantic City's unique character, boardwalk attractions, and appeal as a destination resort.
c. After the Transfer Date, all duties assumed by the authority pursuant to subsection a. of this section shall be delegated by the authority to the Convention Center Division.
(cf: P.L.2011, c.18, s.7)
3. Section 12 of P.L.2011, c.18 (C.5:12-226) is amended to read as follow:
12. a. Until the Transfer Date, the authority shall not exercise any powers, rights, or duties conferred by P.L.2011, c.18 (C.5:12-218 et al.) or by any other law in any way which will interfere with the powers, rights, and duties of the convention center authority. The authority shall not before the Transfer Date exercise any powers of the convention center authority. The authority and the convention center authority are directed to cooperate with each other so that the Transfer Date shall occur as soon as practicable after the date of enactment of P.L.2011, c.18 (C.5:12-218 et al.), and the convention center authority shall make available information concerning its property and assets, outstanding bonds and other debts, obligations, liabilities and contracts, operations, and finances as the authority may require to provide for the retirement of any outstanding bonds, notes, or other obligations of the convention center authority, and the efficient exercise by the authority of all powers, rights, and duties conferred upon them by P.L.2011, c.18 (C.5:12-218 et al.).
b. On the Transfer Date: (1) The authority shall assume all of the powers, rights, assets, and duties of the convention center authority to the extent provided by P.L.2011, c.18 (C.5:12-218 et al.), and such powers shall then and thereafter be vested in and shall be exercised by the authority and the chair thereof provided, however, that the functions, organizational structure, and operations of the convention center authority shall be continued as a division existing within the authority, to be known as the Convention Center Division.
(2) The terms of office of the members of the convention center authority shall terminate, the officers having custody of the funds of the convention center authority shall deliver those funds into the custody of the chair of the authority, the property and assets of the convention center authority shall, without further act or deed, become the property and assets of the authority, and the convention center authority shall cease to exist.
(3) The officers and employees of the convention center authority shall be transferred to the authority and shall become employees of the authority and the authority shall retain those employees transferred to the authority pursuant to this section as employees of the division; provided, however, that any employee transferred to the authority pursuant to this section may be dismissed for cause, and any such employee may be dismissed if the authority determines that the transfer of the convention center authority to the authority has resulted in the duplication of responsibility of the position held by such employee, but such an employee shall be given a right of first refusal offer of similar employment if such employment shall become available as determined by the authority.
Nothing in P.L.2011, c.18 (C.5:12-218 et al.) shall be construed to deprive any officers or employees of the convention center authority of any of their existing employee salaries, benefits, titles and all rights, privileges, obligations, or status with respect to any pension or retirement system. The employees shall retain all of their rights and benefits under existing collective negotiation agreements or contracts until such time as new or revised agreements or contracts are agreed to. All existing employee representatives shall be retained to act on behalf of those employees until such time as the employees shall, pursuant to law, elect to change those representatives. Nothing in P.L.2011, c.18 (C.5:12-218 et al.) shall affect the civil service status, if any, of those officers or employees.
Officers and employees transferred to the authority and those officers or employees appointed or hired as division officers or employees following the transfer date shall be subject to the provisions of the "New Jersey Conflicts of Interest Law," No such officer or employee shall be subject to any post employment restriction prohibiting or restricting involvement with casino licensees or applicants, including the post employment restrictions contained in P.L.1981, c.142 (C.52:13D-17.2) or any other law.
Division officers and employees who have been employed with the convention center authority shall, upon transfer to employment with the division, retain, as officers or employees of the division, the seniority and all rights related to such seniority as those officers and employees had with the convention center authority as of the last day preceding the transfer date. Seniority shall be determined according to criteria by which such seniority was determined under the officer's or employee's employment with the convention center authority prior to the transfer date.
(4) All debts, liabilities, obligations and contracts of the convention center authority, except to the extent specifically provided or established to the contrary in P.L.2011, c.18 (C.5:12-218 et al.), are imposed upon the authority, and all creditors of the convention center authority and persons having claims against or contracts with the convention center authority of any kind or character may enforce those debts, claims, and contracts against the authority as successor to the convention center authority in the same manner as they might have against the convention center authority, and the rights and remedies of those holders, creditors, and persons having claims against or contracts with the convention center authority shall not be limited or restricted in any manner by P.L.2011, c.18 (C.5:12-218 et al.).
(5) In continuing the functions, contracts, obligations and duties of the convention center authority, the authority is authorized to act in its own name, in the name of the Convention Center Division, or in the name of the convention center authority or any other name as may be convenient or advisable under the circumstances from time to time.
(6) Any references to the convention center authority in any other law or regulation shall be deemed to refer and apply to the authority.
(7) All rules and regulations of the convention center authority shall continue in effect as the rules and regulations of the authority until amended, supplemented or rescinded by the authority in accordance with law. Notwithstanding any requirements of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) to the contrary, the authority may adopt regulations, after notice and an opportunity for public comment, amending, supplementing, modifying, or repealing the regulations of the convention center authority. Such regulations shall be effective immediately upon filing with the Office of Administrative Law and shall be effective for a period not to exceed 18 months from the Transfer Date and they may, thereafter, be amended, adopted or readopted in accordance with the "Administrative Procedure Act." Regulations of the convention center authority inconsistent with the provisions of this act or of regulations of the authority shall be deemed void if so judged by the authority acting pursuant to the provisions of this paragraph.
(8) All operations of the convention center authority shall continue as operations of the authority until altered by the authority as may be permitted pursuant to P.L.2011, c.18 (C.5:12-218 et al.).
(9) The powers vested in the authority by P.L.2011, c.18 (C.5:12-218 et al.) shall be construed as being in addition to and not in diminution of the powers heretofore vested by law in the authority to the extent not otherwise altered or provided for in P.L.2011, c.18 (C.5:12-218 et al.).
c. As soon as practicable after the Transfer Date, the chairman shall notify the Governor and the presiding officers of each house of the Legislature that the transfer has occurred, the date of the transfer, and any other information concerning the transfer the chairman deems appropriate.
(cf: P.L.2011, c.18, s.12)
4. (New section) As used in this section:
"Affiliate" means an entity that directly or indirectly controls, is under common control with, or is controlled by the business. Control exists in all cases in which the entity is a member of a controlled group of corporations as defined pursuant to section 1563 of the Internal Revenue Code of 1986 (26 U.S.C.s.1563) or the entity is an organization in a group of organizations under common control as defined pursuant to subsection (b) or (c) of section 414 of the Internal Revenue Code of 1986 (26 U.S.C.s.414). A taxpayer may establish by clear and convincing evidence, as determined by the Director of the Division of Taxation in the Department of the Treasury, that control exists in situations involving lesser percentages of ownership than required by those statutes. An affiliate of a business may contribute to meeting either the qualified investment or full-time employee requirements of a business that applies for a credit under section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill).
"Atlantic City Economic Zone," or "ACEZ," or "zone," means the area comprised of
(1) the tourism district established pursuant to P.L.2011, c.18 (C.5:12-218 et al.), or (2) the site of any project, located in Atlantic City but outside of the tourism district, that is financed or controlled by the Casino Reinvestment Development Authority, established pursuant to section 5 of P.L.1984, c.218 (C.5:12-153), other than property in which authorized casino gaming occurs, as determined by regulations promulgated pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill);
which property shall have been specifically delineated by the Economic Development Authority pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill).
A property tract which is partially included within the ACEZ shall only be considered to be within the ACEZ if over 50 percent of that tract falls within the limits of the zone, as determined by the Economic Development Authority.
"Business" means a corporation that is subject to the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5), a corporation that is subject to the tax imposed pursuant to sections 2 and 3 of P.L.1945, c.132 (C.54:18A-2 and 54:18A-3), section 1 of P.L.1950, c.231 (C.17:32-15) or N.J.S.17B:23-5, or is a partnership, an S corporation, or a limited liability corporation. A business shall include an affiliate of the business if that business applies for a credit based upon any capital investment made by or full-time employees of an affiliate.
"Capital investment" in a qualified business facility means expenses incurred after, but before the end of the eighth year after, the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) for: (1) the site preparation and construction, repair, renovation, improvement, equipping, or furnishing of a building, structure, facility or improvement to real property; and (2) obtaining and installing furnishings and machinery, apparatus or equipment for the operation of a business in a building, structure, facility or improvement to real property.
"Economic Development Authority" means the New Jersey Economic Development Authority established by section 4 of P.L.1974, c.80 (C.34:1B-4).
"Full-time employee" means a person employed by the business for consideration for at least 35 hours a week, or who renders any other standard of service generally accepted by custom or practice as full-time employment, or a person who is employed by a professional employer organization pursuant to an employee leasing agreement between the business and the professional employer organization, in accordance with P.L.2001, c.260 (C.34:8-67 et seq.) for at least 35 hours a week, or who renders any other standard of service generally accepted by custom or practice as full-time employment, and whose wages are subject to withholding as provided in the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq. or an employee who is a resident of another State but whose income is not subject to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq. or who is a partner of a business who works for the partnership for at least 35 hours a week, or who renders any other standard of service generally accepted by custom or practice as full-time employment, and whose distributive share of income, gain, loss, or deduction, or whose guaranteed payments, or any combination thereof, is subject to the payment of estimated taxes, as provided in the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq. "Full-time employee" shall not include any person who works as an independent contractor or on a consulting basis for the business.
"Mixed use project" means a project comprising both a qualified business facility and a qualified residential project.
"Partnership" means an entity classified as a partnership for federal income tax purposes.
"Professional employer organization" means an employee leasing company registered with the Department of Labor and Workforce Development pursuant to P.L.2001, c.260 (C.34:8-67 et seq.).
"Qualified business facility" means any building, complex of buildings or structural components of buildings, and all machinery and equipment located within the Atlantic City Economic Zone, used in connection with the operation of a business, provided, however, that no portion of any such building, complex of buildings, or structural components of buildings, machinery or equipment located within a venue for authorized casino gaming, as determined by regulations promulgated pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill), shall be a "qualified business facility" hereunder.
"Qualified residential project" means any building, complex of buildings or structural components of buildings consisting predominantly of residential units, located within the Atlantic City Economic Zone.
"Residential unit" means a residential dwelling unit such as a rental apartment, a condominium or cooperative unit, a hotel room, or a dormitory room.
5. (New section) a. (1) A business, upon application to and approval from the Economic Development Authority, shall be allowed a credit of 100 percent of its capital investment, made after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) but prior to its submission of documentation pursuant to subsection c. of this section, in a qualified business facility, pursuant to the restrictions and requirements of this section. To be eligible for any tax credits authorized under this section, a business shall demonstrate to the Economic Development Authority, at the time of application, that the State's financial support of the proposed capital investment in a qualified business facility will yield a net positive benefit to both the State and the Atlantic City Economic Zone. The value of all credits approved by the Economic Development Authority pursuant to this section shall not exceed $200,000,000.
(2) A business shall make or acquire capital investments totaling not less than $20,000,000 in a qualified business facility, at which the business shall employ not fewer than 100 full-time employees in new full-time positions, to be eligible for a credit under this section. A business that acquires a qualified business facility shall also be deemed to have acquired the capital investment made or acquired by the seller.
(3) A business shall not be allowed tax credits under this section if the business participates in a business employment incentive grant under P.L.1996, c.26 (C.34:1B-124 et al.)relating to the same capital and employees that qualify the business for this credit, or if the business receives assistance pursuant to P.L.1996, c.25 (C.34:1B-112 et seq.). A business that is allowed a tax credit under this section shall not be eligible for incentives authorized pursuant to P.L.2002, c.43 (C.52:27BBB-1 et al.). A business shall not qualify for a tax credit under this section, based upon capital investment and employment of full-time employees, if that capital investment or employment was the basis for which a grant was provided to the business pursuant to the "InvestNJ Business Grant Program Act," P.L.2008, c.112 (C.34:1B-237 et seq.).
(4) Full-time employment for an accounting or privilege period shall be determined as the average of the monthly full-time employment for the period.
(5) A business shall be allowed a tax credit of 100 percent of its capital investment, made after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) but prior to its submission of documentation pursuant to subsection c. of this section, in a qualified business facility that is part of a mixed use project, provided that (a) the qualified business facility represents at least $5,000,000 of the total capital investment in the mixed use project, (b) the business employs not fewer than 100 full-time employees in the qualified business facility, and (c) the total capital investment in the mixed use project of which the qualified business facility is a part is not less than $20,000,000. The allowance of credits under this paragraph shall be subject to the restrictions and requirements, to the extent that those are not inconsistent with the provisions of this paragraph, set forth in paragraphs (1) through (4) of this subsection, including but not limited to the requirement that the business shall demonstrate to the Economic Development Authority, at the time of application, that the State's financial support of the proposed capital investment in a qualified business facility will yield a net positive benefit to both the State and the Atlantic City Economic Zone.
(6) In determining whether a proposed capital investment will yield a net positive benefit, the Economic Development Authority shall not consider the transfer of an existing job from one location in the State to the Atlantic City Economic Zone as the creation of a new job, unless (a) the business proposes to transfer existing jobs to the zone as part of a consolidation of business operations from two or more other locations that are not in the zone whether in-State or out-of-State, or (b) the business's chief executive officer, or equivalent officer, submits a certification to the Economic Development Authority indicating that the existing jobs are at risk of leaving the State and that the business's chief executive officer, or equivalent officer, has reviewed the information submitted to the Economic Development Authority and that the representations contained therein are accurate, and the business intends to employ not fewer than 100 full-time employees in the qualified business facility. In the event that this certification by the business's chief executive officer, or equivalent officer, is found to be willfully false, the Economic Development Authority may revoke any award of tax credits in their entirety, which revocation shall be in addition to any other criminal or civil penalties that the business and the officer may be subject to. When considering an application involving intra-State job transfers, the Economic Development Authority shall require the company to submit the following information as part of its application: a full economic analysis of all locations under consideration by the company; all lease agreements, ownership documents, or substantially similar documentation for the business's current in-State locations; and all lease agreements, ownership documents, or substantially similar documentation for the potential out-of-State location alternatives, to the extent they exist. Based on this information, and any other information deemed relevant by the Economic Development Authority, the Economic Development Authority shall independently verify and confirm, by way of making a factual finding by separate vote of the Economic Development Authority's board, the business's assertion that the jobs are actually at risk of leaving the State, before a business may be awarded any tax credits under this section.
b. A business shall apply for the credit within five years after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), and shall submit its documentation for approval of its credit amount within eight years after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill).
c. (1) The amount of credit allowed shall, except as otherwise provided, be equal to the capital investment made by the business, or the capital investment represented by the business' leased area, or area owned by the business as a condominium, and shall be taken over a 10-year period, at the rate of one-tenth of the total amount of the business' credit for each tax accounting or privilege period of the business, beginning with the tax period in which the business is first certified by the Economic Development Authority as having met the investment capital and employment qualifications, subject to any reduction or disqualification as provided by subsection d. of this section as determined by annual review by the Economic Development Authority. In conducting its annual review, the Economic Development Authority may require a business to submit any information determined by the Economic Development Authority to be necessary and relevant to its review.
The credit amount for any tax period ending after the date eight years after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) during which the documentation of a business' credit amount remains uncertified shall be forfeited, although credit amounts for the remainder of the years of the 10-year credit period shall remain available to it provided certification is rendered.
The credit amount that may be taken for a tax period of the business that exceeds the final liabilities of the business for the tax period may be carried forward for use by the business in the next 20 successive tax periods, and shall expire thereafter, provided that the value of all credits approved by the Economic Development Authority against tax liabilities pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill) in any fiscal year shall not exceed $75,000,000.
(2) A business that is a partnership shall not be allowed a credit under this section directly, but the amount of credit of an owner of a business shall be determined by allocating to each owner of the partnership that proportion of the credit of the business that is equal to the owner of the partnership's share, whether or not distributed, of the total distributive income or gain of the partnership for its tax period ending within or with the owner's tax period, or that proportion that is allocated by an agreement, if any, among the owners of the partnership that has been provided to the Director of the Division of Taxation in the Department of the Treasury by such time and accompanied by such additional information as the director may require.
(3) The amount of credit allowed may be applied against the tax liability otherwise due pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5), pursuant to sections 2 and 3 of P.L.1945, c.132 (C.54:18A-2 and 54:18A-3), pursuant to section 1 of P.L.1950, c.231 (C.17:32-15), or pursuant to N.J.S.17B:23-5.
d. (1) If, in any tax period, fewer than 100 full-time employees of the business at the qualified business facility are employed in new full-time positions, the amount of the credit otherwise determined pursuant to final calculation of the award of tax credits pursuant to subsection c. of this section shall be reduced by 20 percent for that tax period and each subsequent tax period until the first period for which documentation demonstrating the restoration of the 100 full-time employees employed in new full-time positions at the qualified business facility has been reviewed and approved by the Economic Development Authority, for which tax period and each subsequent tax period the full amount of the credit shall be allowed; provided, however, that for businesses applying before January 1, 2012, there shall be no reduction if a business relocates to the Atlantic City Economic Zone from another location or other locations in the zone. For the purposes of this paragraph, a "new full-time position" means a position created by the business at the qualified business facility that did not previously exist in this State.
(2) If, in any tax period, the business reduces the total number of full-time employees in its Statewide workforce by more than 20 percent from the number of full-time employees in its Statewide workforce in the last tax accounting or privilege period prior to the credit amount approval under subsection a. of this section, then the business shall forfeit its credit amount for that tax period and each subsequent tax period, until the first tax period for which documentation demonstrating the restoration of the business' Statewide workforce to the threshold levels required by this paragraph has been reviewed and approved by the Economic Development Authority, for which tax period and each subsequent tax period the full amount of the credit shall be allowed.
(3) If, in any tax period, (a) the number of full-time employees employed by the business at the qualified business facility located in the Atlantic City Economic Zone drops below 100, or (b) the number of full-time employees, who are not the subject of intra-State job transfers, pursuant to paragraph (6) of subsection a. of this section, employed by the business at any other business facility in the State, whether or not located within an eligible property, drops by more than 20 percent from the number of full-time employees in its workforce in the last tax accounting or privilege period prior to the credit amount approval under this section, then the business shall forfeit its credit amount for that tax period and each subsequent tax period, until the first tax period for which documentation demonstrating the restoration of the number of full-time employees employed by the business at the qualified business facility to 100 or an increase above the 20 percent reduction has been reviewed and approved by the Economic Development Authority, for which tax period and each subsequent tax period the full amount of the credit shall be allowed.
If the qualified business facility is sold in whole or in part during the 10-year eligibility period the new owner shall not acquire the capital investment of the seller and the seller shall forfeit all credits for the tax period in which the sale occurs and all subsequent tax periods.
e. A business may apply to the Director of the Division of Taxation in the Department of the Treasury and the chief executive officer of the Economic Development Authority for a tax credit transfer certificate, covering one or more years, in lieu of the business being allowed any amount of the credit against the tax liability of the business. The tax credit transfer certificate, upon receipt thereof by the business from the director and the executive director of the Economic Development Authority, may be sold or assigned, in full or in part, to any other person that may have a tax liability pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5), pursuant to sections 2 and 3 of P.L.1945, c.132 (C.54:18A-2 and 54:18A-3), pursuant to section 1 of P.L.1950, c.231 (C.17:32-15), or pursuant to N.J.S.17B:23-5. The certificate provided to the business shall include a statement waiving the business's right to claim that amount of the credit against the taxes that the business has elected to sell or assign. The sale or assignment of any amount of a tax credit transfer certificate allowed under this section shall not be exchanged for consideration received by the business of less than 75 percent of the transferred credit amount. Any amount of a tax credit transfer certificate used by a purchaser or assignee against a tax liability shall be subject to the same limitations and conditions that apply to the use of the credit by the business that originally applied for and was allowed the credit.
f. The Executive Director of the Economic Development Authority, in consultation with the Director of the Division of Taxation in the Department of the Treasury and the chair of the Casino Reinvestment Development Authority established pursuant to section 5 of P.L.1984, c.218 (C.5:12-153), shall adopt rules in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) as are necessary to implement this act, including but not limited to: examples of and the determination of capital investment; outside the Atlantic City Tourism District the determination of the limits, if any, on the expense or type of furnishings that may constitute capital improvements; the promulgation of procedures and forms necessary to apply for a credit, including the enumeration of the certification procedures and allocation of tax credits for different phases of a qualified business facility or mixed use project; and provisions for credit applicants to be charged an initial application fee, and ongoing service fees, to cover the administrative costs related to the credit.
6. This act shall take effect immediately, but the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill) shall not be construed as affecting terms of any contract or agreement in effect as of the effective date of P.L. , c. .
STATEMENT
This bill would revise certain components of the agreement between the Casino Reinvestment and Development Authority ("CRDA") (or Convention Center Division ("division") if the division is in existence upon creation of the agreement), and the not-for-profit corporation ("corporation") designated to develop a marketing plan for Atlantic City and the Atlantic City Tourism District established under P.L.2011, c.18 (C.5:12-218 et al.) ("the tourism district act").
The bill eliminates the requirement that the casino licensees comprising the corporation be limited to those whose investors have invested a minimum of $1 billion in Atlantic City, and provides that the agreement under which casino licensees would make a contribution of $5,000,000 for the formation of the corporation and the marketing plan, or for the tourism district could allow instead for the licensees' direct expenditure of funds for those purposes. The percentage of the contribution made by each casino licensee would no longer be based on overall revenues, but would instead be limited to the proportion of the gross revenue generated by the casino licensee's Atlantic City casino property during fiscal year 2011, or any portion thereof. The initial assessment and collection of fees, under current law get to commence on the later of January 1, 2012 or the agreement date, would be changed by the bill to January 1, 2012, or, alternatively, to the time the 2011 gross revenue figures for casino licensees are available.
The bill specifies the five calendar years the $30,000,000 annual assessment is imposed on casino licensees, to provide that the assessment shall be made, beginning on January 1, 2012, and continuing through the year ending December 31, 2016, or for at least five calendar years, whichever ends later. The assessment would be made in arrears in quarterly installments and would be payable to the corporation. The bill would change the percentage of contribution by each licensee from the proportion of the licensee's gross revenues generated in the preceding fiscal year to the proportion of gross revenue generated at each licensee's Atlantic City casino property during the quarter to which the assessment applies. The CRDA, or the division, as appropriate, would assess a fee upon each casino licensee that does not make a payment to the corporation as provided under the tourism district act. The fee would be calculated in the same manner as the revised proportional contribution. The bill provides that the Division of Gaming Enforcement would have the authority to enforce the collection of fees payable by casino licensees.
The bill provides that Convention Center Division employees would retain seniority earned as convention center authority employees prior to the date they are transferred to employment with the division. The bill clarifies that division employees would be subject to the "New Jersey Conflicts of Interest Law" P.L.1971, c. 182 (C. 52:13D-12 et seq.), except, however, that, notwithstanding any post-employment restriction imposed upon authority members pursuant to P.L.1981, c.142 (C.52:13D-17.2), nothing in P.L.2011, c.18 (C.5:12-218 et al.) shall be construed as prohibiting a former division employee, at any time after termination of such employment, from acquiring an interest in, or soliciting or obtaining employment involving, casino activity.
The bill would add the definition of "casino licensee" to the tourism district act to clarify that, under the act, a casino licensee is the holder of a casino license issued, or interim authorization granted, as provided by law.
The bill would create a tax credit program in the New Jersey Economic Development Authority ("EDA") for capital investment and increased employment in the tourism district and upon certain properties financed or controlled by the CRDA, within Atlantic City. Under the program, non-gaming properties located in the tourism district and Casino Reinvestment and Development Authority financed or controlled projects in Atlantic City but outside the district would be properties eligible for the tax credits. A business that makes $20,000,000 of qualified capital investment, determined by the EDA to yield a net positive benefit to the State or the areas covered by the program, in a business facility within those areas and that employs at least 100 persons at the facility may qualify for tax credits equal to 100 percent of the qualified capital investment. The credits may be applied against corporation business tax, insurance premiums tax or gross income tax liability. Annually for ten years the taxpayer may utilize a credit equal to 10 percent of the qualified capital investment. The credit amount that may be taken for a tax period of the business that exceeds the final liabilities of the business for the tax period may be carried forward for use by the business in the next 20 successive tax periods.
