Bill Text: NJ S2356 | 2014-2015 | Regular Session | Introduced
Bill Title: Requires corporations qualifying for certain State development subsidy grants to repay entire grant amount if corporation fails to uphold grant terms.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2015-11-16 - Referred to Senate Budget and Appropriations Committee [S2356 Detail]
Download: New_Jersey-2014-S2356-Introduced.html
Sponsored by:
Senator PETER J. BARNES, III
District 18 (Middlesex)
Co-Sponsored by:
Senator Turner
SYNOPSIS
Requires corporations qualifying for certain State development subsidy grants to repay entire grant amount if corporation fails to uphold grant terms.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning State development subsidy grants to certain corporations and amending P.L.2007, c.200.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 10 of P.L.2007, c.200 (C.52:39-10) is amended to read as follows:
10. a. Any recipient corporation that knowingly makes a false material misrepresentation in any application, report or other disclosure that the recipient corporation is required to make pursuant to [this act] P.L.2007, c.200 (C.52:39-1 et seq.) shall refund any development subsidy to the granting body. The granting body may include provisions for the refund as part of an agreement to provide a development subsidy and may pursue an action to collect the amount of the refund plus any attorney fees and other costs of the action.
b. Except as otherwise provided by law, if a recipient corporation fails to uphold the terms of any agreement involving a development subsidy in the form of a grant that is issued by a public body to the recipient corporation, the recipient corporation shall refund the full amount of the grant to the public body. The granting body shall include provisions for the refund as part of an agreement to provide a development subsidy and may pursue an action to collect the amount of the refund plus any attorney fees and other costs of the action.
c. The amount of any refund, attorney fees, and other costs collected by a granting body pursuant to this section shall be paid by the granting body to the State Treasurer, and shall, upon receipt by the State Treasurer, be deposited in a separate account in the General Fund for use to provide property tax relief.
(cf: P.L.2007, c.200, s.10)
2. This act shall take effect immediately.
STATEMENT
This bill requires a private corporation that fails to uphold the terms of any subsidy grant agreement issued by a public entity of the State to refund the full amount of the grant, unless otherwise prohibited by law. To effectuate this refund requirement, the bill requires the public entity issuing the grant to include provisions for the refund as part of the grant agreement. The bill authorizes a public entity in an action to collect the subsidy grant refund to seek attorney fees and other costs of collection. The bill requires the amount of any refund, attorney fees, and other costs collected by a granting body to be paid over to the State Treasurer and be used to provide property tax relief.
