Bill Text: NJ A3112 | 2014-2015 | Regular Session | Introduced
Bill Title: Permits EDA to provide financial assistance to businesses that relocate to NJ from sites in Asia.
Spectrum: Slight Partisan Bill (Democrat 2-1)
Status: (Introduced - Dead) 2014-05-08 - Introduced, Referred to Assembly Commerce and Economic Development Committee [A3112 Detail]
Download: New_Jersey-2014-A3112-Introduced.html
Sponsored by:
Assemblyman SAMUEL L. FIOCCHI
District 1 (Atlantic, Cape May and Cumberland)
Assemblyman GORDON M. JOHNSON
District 37 (Bergen)
SYNOPSIS
Permits EDA to provide financial assistance to businesses that relocate to NJ from sites in Asia.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning financial assistance provided by the New Jersey Economic Development Authority 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. In consultation with the Secretary of State and the State Treasurer, the New Jersey Economic Development Authority may, in a manner as determined by the authority, establish and administer a program that provides financial assistance to any business that relocates its business operations to this State from one or more sites located in Asia. For the purposes of this section, "financial assistance" means any loan, loan guarantee, tax exempt bond, or other financial assistance approved, funded, authorized, administered, or provided by the authority to any business that qualifies for financial assistance under the terms and conditions of the authority; provided, however, "financial assistance" shall not include any assistance that imposes an obligation on the State General Fund.
2. This act shall take effect immediately.
STATEMENT
This bill permits the New Jersey Economic Development Authority (authority), in consultation with the Secretary of State and the State Treasurer, and in a manner as determined by the authority, to establish and administer a program that provides financial assistance to any business that relocates its business operations to this State from one or more sites located in Asia. The bill defines "financial assistance" as any loan, loan guarantee, tax exempt bond, or other financial assistance approved, funded, authorized, administered, or provided by the authority to any business that qualifies for financial assistance under the terms and conditions of the authority, but that definition shall not include any assistance that imposes an obligation on the State General Fund.
Recently, global businesses with operations in China are either: 1) seeking to relocate their facilities to inland areas of China or other Asian countries, due to rising labor costs; or 2) in the case of research-intensive businesses, such as pharmaceutical, biotechnology and other life science companies, shifting production back to the United States from China for a range of reasons, including shipping costs and incentives offered in the United States. Given that New Jersey is experiencing the lingering effects of a recent recession and needs to increase employment opportunities, the State has an interest in bolstering its economic assistance efforts to businesses that relocate their business operations to this State.
