Bill Text: NJ S3089 | 2010-2011 | Regular Session | Amended
Bill Title: Establishes New Jersey Food Access Initiative; funds initiative with certain sales tax revenue from urban enterprise zones for fives years.*
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Engrossed - Dead) 2011-12-15 - Received in the Assembly, Referred to Assembly Budget Committee [S3089 Detail]
Download: New_Jersey-2010-S3089-Amended.html
SENATE, No. 3089
STATE OF NEW JERSEY
214th LEGISLATURE
INTRODUCED SEPTEMBER 26, 2011
Sponsored by:
Senator DONALD NORCROSS
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
As reported by the Senate Budget and Appropriations Committee on November 10, 2011, with amendments.
An Act concerning funding of the 1New Jersey1 Food Access Initiative with 1certain1 sales tax revenue 1, supplementing Title 34 of the Revised Statutes1 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) 1[as] As1 used in this act:
"Authority" means the New Jersey Economic Development Authority.
"Initiative" means the New Jersey 1[food access initiative] Food Access Initiative1 created pursuant to 1[Section] section1 3 of P.L. , c. (C. ) (pending before the Legislature as this bill).
"Loan fund" means the food access loan fund, created within the 1[New Jersey food access]1 initiative.
"Grant fund" means the food access grant fund, created within the 1[New Jersey food access]1 initiative.
3. (New section) a. The authority shall establish the New Jersey 1[food access initiative] Food Access Initiative1 . The initiative shall provide loan and grant 1[funds] moneys1 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 1[program] initiative1 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 1loan1 program on its own or through partnership with a private institution.
c. 1[In order to] To1 be eligible for loan funding, a business 1[must] shall1 be located in the State and lack access to traditional sources of financing at the rates offered by the initiative.
d. Factors 1that the authority shall use1 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 1likelihood that the applicant's receipt of a loan will enable the1 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 1[New Jersey food access]1 initiative 1[. The food access grant fund] from which the authority1 shall 1[administer] award1 grants to approved recipients of food access loans.
b. The authority shall be responsible for administering the grant fund. It may administer the 1grant1 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 1likelihood that the applicant's receipt of a loan will enable the1 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, 1[C.303] c.3031 (C.52:27H-80) shall be directed to the initiative as follows:
a. Eighty percent of the revenue directed to the authority 1pursuant 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)1 shall be deposited into the 1[food access] loan1 fund 1[, an amount equal to 4% 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]1 .
b. Twenty percent of the revenue directed to the authority 1pursuant 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)1 shall be deposited into the 1[food access]1 grant fund 1[, an amount equal to 1% 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]1 .
c. Any money deposited into the loan fund pursuant to this section shall be 1[reinvested] redeposited1 into the initiative upon repayment by the borrower. The 1[reinvestment] redeposit1 of 1[funds] moneys1 shall be in the same ratio as the original 1[distribution] deposits,1 with 80% of the repayment 1[going] deposited1 into the loan fund and 20% of the repayment 1[being]1 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 1[vendors] sellers1 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 1[five consecutive calendar years] 60 consecutive months1 beginning with the 1first month next following the1 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] 1[85] 901 percent shall be deposited immediately upon collection by the Department of the Treasury, 1provided 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,1 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 1[five consecutive calendar years] 60 consecutive months1 beginning with the 1first month next following the1 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] 1[85] 901 percent shall be deposited immediately upon collection by the Department of the Treasury, 1provided 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,1 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.) 1that the executive director determines are1 necessary to effectuate the provisions of this act.
10. (New section) The authority shall file a report to the 1[legislature at least six months prior to the end of the five year funding period for the initiative] 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)1 . 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 1[on the 30th day following enactment] immediately1 .
