Bill Text: NJ A1028 | 2022-2023 | Regular Session | Introduced
Bill Title: Prohibits awarding of economic development subsidy to business if payment of principal and interest on previously awarded loan or loan guarantee is greater than 24 months overdue.
Spectrum: Slight Partisan Bill (Republican 6-2)
Status: (Introduced - Dead) 2022-01-11 - Introduced, Referred to Assembly Commerce and Economic Development Committee [A1028 Detail]
Download: New_Jersey-2022-A1028-Introduced.html
STATE OF NEW JERSEY
220th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2022 SESSION
Sponsored by:
Assemblyman JAY WEBBER
District 26 (Essex, Morris and Passaic)
Assemblyman CLINTON CALABRESE
District 36 (Bergen and Passaic)
Co-Sponsored by:
Assemblymen Coughlin, DiMaio, Assemblywoman Dunn, Assemblymen Space, Wirths and Scharfenberger
SYNOPSIS
Prohibits awarding of economic development subsidy to business if payment of principal and interest on previously awarded loan or loan guarantee is greater than 24 months overdue.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act concerning certain economic development subsidies and amending P.L.2015, c.167.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 2 of P.L.2015, c.167 (C.52:18-52) is amended to read as follows:
2. A State public body shall not award an economic development subsidy to a recipient business that previously received an economic development subsidy that was a loan or loan guarantee if the recipient business is in default, or the payment of principal and interest is greater than 24 months overdue, on that previously awarded loan or loan guarantee.
(cf: P.L.2015, c.167, s.2)
2. This act shall take effect immediately but shall remain inoperative for 60 days following the date of enactment.
STATEMENT
This bill would prohibit a State public body from awarding an economic development subsidy to a business that previously received an economic development subsidy that was a loan or loan guarantee if the payment of principal and interest on the loan or loan guarantee is more than 24 months overdue. Current law prohibits a State public body from awarding an economic development subsidy to a business that previously received an economic development subsidy that was a loan or loan guarantee if the business is in default on the loan or loan guarantee.
For the purposes of this bill, and current law:
"State public body" means the State of New Jersey or any agency, authority, board, commission, or instrumentality of the State, but does not mean a political subdivision of the State or an agency, authority, board, commission, or instrumentality of a political subdivision of the State; and
"Economic development subsidy" means the provision of an amount of funds to a recipient business by or from a State public body with a value of greater than $25,000 for the purpose of stimulating economic development in New Jersey, including, but not limited to, a loan or loan guarantee.
