Bill Text: NJ A3343 | 2012-2013 | Regular Session | Introduced
Bill Title: Requires businesses receiving State economic development subsidy to report campaign contributions greater than $10,000.
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Engrossed - Dead) 2013-05-09 - Received in the Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee [A3343 Detail]
Download: New_Jersey-2012-A3343-Introduced.html
Sponsored by:
Assemblyman TIMOTHY J. EUSTACE
District 38 (Bergen and Passaic)
Assemblyman DANIEL R. BENSON
District 14 (Mercer and Middlesex)
Co-Sponsored by:
Assemblyman Coughlin
SYNOPSIS
Requires businesses receiving State economic development subsidy to report campaign contributions greater than $10,000.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the reporting of certain campaign contributions and amending P.L.2007, c.200.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 2 of P.L.2007, c.200 (C.52:39-2) is amended to read as follows:
2. The Legislature finds and declares that:
a. Although the State has granted numerous tax incentives, grants and other economic development subsidies during the last 25 years, the inflation-adjusted wage level for a large portion of New Jersey workers has declined, as has the percentage of working families in New Jersey with health care coverage;
b. Some programs providing economic development subsidies lack measurable job creation goals, and in some cases, businesses have closed, relocated, or outsourced facilities or jobs for which subsidies were provided to sites outside of the State;
c. Citizen participation in economic development has been impeded by a lack of readily accessible information regarding expenditures and outcomes; [and]
d. Given the outcome of Citizens United v. Federal Election Commission, 558 U.S. 50 (2010), where the United States Supreme Court held that the First Amendment prohibited the government from restricting independent political expenditures by corporations and unions, there should be transparency to citizens of this State in order raise awareness of those campaign contributions made by businesses receiving economic development subsidies by State agencies; and
e. It is therefore appropriate, in order to improve the effectiveness of expenditures for economic development and to ensure that they achieve the goal of raising living standards for working families, that the State collect, analyze, and make public information regarding those expenditures.
(cf: P.L.2007, c.200, s.2)
2. Section 4 of P.L.2007, c.200 (C.52:39-4) is amended to read as follows:
4. a. Each applicant for a development subsidy shall submit to the granting body an application for the development subsidy on a form prepared by the State Treasurer. The information required on the application, or in supplements accompanying the application, shall include the following:
(1) An application tracking number provided by the granting body;
(2) The names, street and mailing addresses, and phone numbers of the chief officer of the granting body, the chief officer of the applicant's corporate parent, and the applicant and the street address and three-digit North American Industry Classification System number of the project site;
(3) The start date and the end date, if any, of the development subsidy;
(4) A list of all development subsidies that the applicant is requesting or receiving, the name of any other granting body from which development subsidies are sought or obtained, the value of each development subsidy and the aggregate value of all development subsidies requested or received from all sources;
(5) A signed certification by the chief officer of the recipient corporation that the application is accurate and meets the requirements of [this act] P.L.2007, c.200 (C.52:39-1 et seq.);
(6) The total number of individuals employed by the applicant at the project site on the date of the application, the anticipated number of jobs that will be retained as a result of the development subsidy, and the number of new jobs to be created by the applicant at the project site if the development subsidy is granted, broken down by full-time, part-time, and temporary jobs;
(7) The average annual wage and benefit rates of current employees and the anticipated average annual wage and benefit rates of new employees;
(8) The number of current employees provided health benefits, and the number of new employees anticipated to be provided health benefits;
(9) How many of the current employees and how many of the anticipated new employees are represented by a collective bargaining unit;
(10) The average total number of individuals employed in New Jersey during the calendar year preceding the submission of the application by the applicant's corporate parent and all subsidiaries thereof, broken down by full-time, part-time, and temporary jobs;
(11) A statement as to whether the development subsidy may reduce employment at any other site controlled by the applicant or its corporate parent, inside the State, resulting from automation, merger, acquisition, corporate restructuring or other business activity;
(12) A statement as to whether or not the project involves the relocation of work from another address and if so, the number of jobs to be relocated and the address from which they are to be relocated; [and]
(13) A list of every expenditure greater than $10,000 or every contribution of money or other thing of value greater than $10,000 made by the applicant or the applicant's corporate parent, in the two calendar years immediately preceding the application, to support or oppose, directly or indirectly, the candidacy of a person for nomination for election or for election to elective public office in or from this State, or to support or oppose, directly or indirectly, a public question in this State; and
(14) Any other information deemed useful or necessary by the State Treasurer for the implementation of [this act] P.L.2007, c.200.
b. Any granting body, other than the State Treasurer approving the application, shall send a copy to the State Treasurer not more than 15 business days after approval. If the application is not approved, the granting body shall retain the application.
(cf: P.L.2007, c.200, s.4)
3. Section 5 of P.L.2007, c.200 (C.52:39-5) is amended to read as follows:
5. a. Each recipient corporation of a development subsidy shall file with the granting body, on a form prepared by the State Treasurer, a progress report no later than 30 business days after the end of each State fiscal year, beginning with the end of the first full State fiscal year after the date of the development subsidy, for the duration of the development subsidy or for five years, whichever period is longer. The report shall include the following information for the State fiscal year just ended:
(1) The application tracking number, except in the case of a development subsidy which has no application tracking number because the development subsidy was in effect prior to the 180th day after the effective date of this act;
(2) The name, street and mailing addresses, phone number, and chief officers of the granting body and the recipient corporation;
(3) A summary of the number of jobs created, retained, or lost inside New Jersey, broken down by full-time, part-time, and temporary jobs, and the average annual rates of pay and benefits;
(4) The number of current employees provided health benefits, and the number of new employees anticipated to be provided health benefits;
(5) The comparison of the total employment in New Jersey by the corporate parent of the recipient corporation on the date of the application and the date of the report, broken down by full-time, part-time, and temporary jobs;
(6) A statement as to whether the use of the development subsidy during the previous fiscal year has reduced employment at any New Jersey site controlled by the recipient corporation or its corporate parent; [and]
(7) A list of every expenditure greater than $10,000 or every contribution of money or other thing of value greater than $10,000 made by the applicant or the applicant's corporate parent, in the two calendar years immediately preceding the application, to support or oppose, directly or indirectly, the candidacy of a person for nomination for election or for election to elective public office in or from this State, or to support or oppose, directly or indirectly, a public question in this State; and
(8) A signed certification by the chief officer of the recipient corporation that the progress report is accurate.
b. Not later than 30 days after the end of the second full State fiscal year after the date of the development subsidy, the recipient corporation shall file with the granting body a two-year progress report, certified by the chief officer of the recipient corporation, which shall include:
(1) The same information as required to be included in reports filed pursuant to subsection a. of this section;
(2) A statement of whether the recipient corporation has achieved the job creation and retention and wage and benefit rate goals projected in the recipient corporation's application; and
(3) If the goals are not met, a full disclosure of the amount of any shortfall in job creation and retention rates at the project site inside New Jersey and wage and benefit rates compared to the goals and compared to job creation and retention goals and wage and benefit rates projected in the recipient corporation's application.
c. The granting body shall review each report filed by the recipient corporation and conduct [such] further investigations as may be required to verify or correct the information in the report and submit the verified or corrected report to the State Treasurer not later than 30 business days after the report is filed by the recipient corporation.
d. The recipient corporation shall provide the granting body and the State Treasurer access to the project site and records at reasonable times as needed to monitor the project and verify the accuracy of the information provided in reports made by the recipient corporation. If a recipient corporation fails to file a report by the required due date, the granting body may impose an administrative fine of not more than $500 per day to commence upon the tenth working day after the due date, and not more than $1,000 per day to commence on the twentieth working day after the due date. If a recipient corporation fails to provide the required access, the granting body may impose an administrative fine of not more than $500 per day to commence upon the fifth working day that access is denied, and of not more than $1,000 per day to commence upon the tenth working day that access is denied.
e. A granting body may assess from recipient corporations whatever fees it determines to be necessary, but in no case fees greater than 0.25% of the value of a development subsidy if the development subsidy is a loan provided by the granting body, 0.1% of the value of the development subsidy if the development subsidy is a loan guarantee provided by the granting body or tax-exempt financing authorized by the granting body, or greater than 1.0% of the value if the development subsidy is not a loan, tax-exempt financing or loan guarantee, to pay for the costs of the granting body to carry out its responsibilities under [this act] P.L.2007, c.200 (C.52:39-1 et seq.), including the processing of applications for development subsidies, reviewing and verifying reports of recipient corporations, and monitoring the compliance of recipient corporations with the requirements of [this act] P.L.2007, c.200, maintaining and making available records and, in the case of the State Treasurer, producing the annual Unified Economic Development Budget Report as provided in section 6 of [this act] P.L.2007, c.200 (C.52:39-6) and providing, as part of the annual budget request of the Governor, a comprehensive presentation of the costs of all development subsidies to the State.
(cf: P.L.2007, c.200, s.5)
4. Section 6 of P.L.2007, c.200 (C.52:39-6) is amended to read as follows:
6. a. The State Treasurer shall, not more than four months after the end of each State fiscal year, compile and publish, in printed and electronic form, including on the Internet, an annual Unified Economic Development Budget Report with regard to the fiscal year just concluded. The report shall provide the following comprehensive information regarding the costs and benefits of all development subsidies of the State:
(1) Information regarding tax expenditures resulting from any development subsidy, including the name of each recipient corporation receiving one or more tax expenditures with a combined total value equal to or greater than $100,000, the value of all tax expenditures received by each recipient corporation and summaries of the number of full-time and part-time jobs created or retained, employee benefits provided and the degree to which job creation and retention, wage and benefit goals, and requirements of recipient corporations and parent corporations have been met. Any tax expenditure received by a corporation receiving tax expenditures with a total value of less than $100,000 shall not be itemized. The report shall include aggregate dollar amounts for each category of tax expenditure, each geographical area, the number of companies for each category of tax expenditure, the number of full-time and part-time jobs created or retained, the employee benefits provided, and the degree to which job creation and retention, wage and benefit rate goals, and requirements have been met for each category of tax expenditure; [and]
(2) The costs of all expenditures of development subsidies appropriated by any granting body, including, but not limited to, the Department of Labor and Workforce Development, the Department of Education, the New Jersey Economic Development Authority, [the New Jersey Commerce, Economic Growth and Tourism Commission,] the [New Jersey Commission on] Secretary of Higher Education, [the New Jersey Commission on Science and Technology,] and research and business assistance programs of public institutions of higher education, together with the cost to the granting bodies and the value of the development subsidies received by each recipient corporation, and summaries of the number of full-time and part-time jobs created or retained, employee benefits provided, and the degree to which job creation and retention, wage and benefit rate goals, and requirements of recipient corporations and parent corporations have been met; and
(3) A list of every expenditure greater than $10,000 or every contribution of money or other thing of value greater than $10,000 made by the applicant or the applicant's corporate parent, in the two calendar years immediately preceding the application, to support or oppose, directly or indirectly, the candidacy of a person for nomination for election or for election to elective public office in or from this State, or to support or oppose, directly or indirectly, a public question in this State.
b. The State Treasurer shall provide to the Legislature, as part of the annual budget request of the Governor, a comprehensive presentation of the costs of all development subsidies to the State during the prior fiscal year, an estimate of the anticipated costs of development subsidies for the then current fiscal year, and an estimate of the costs of all development subsidies for the fiscal year of the requested budget, including, but not limited to:
(1) The total cost to the State of tax expenditures resulting from the development subsidies, the costs for each category of tax expenditure, and the amounts of tax expenditures by geographical area; and
(2) The cost to the State of all appropriated expenditures for development subsidies, including line-item budgets for every State-funded entity concerned with economic development, including, but not limited to, the Department of Labor and Workforce Development, the Department of Education, the New Jersey Economic Development Authority, [the New Jersey Commerce, Economic Growth and Tourism Commission,] the [New Jersey Commission on] Secretary of Higher Education, [the New Jersey Commission on Science and Technology,] and research and business assistance programs of public institutions of higher education.
(cf: P.L.2007, c.200, s.6)
5. This act shall take effect immediately, but shall remain inoperative for 60 days following the date of enactment.
STATEMENT
This bill requires corporations applying for or receiving an economic development subsidy from a State agency, having a value of $25,000 or more, to provide to that State agency a list of every expenditure greater than $10,000 or contribution of money or other thing of value greater than $10,000 made by the corporation, or the corporation's parent, to support or oppose, directly or indirectly, the candidacy of a person for nomination for election or for election to elective public office in or from this State, or to support or oppose, directly or indirectly, a public question in this State. The list shall include all such contributions made within the two calendar years immediately preceding the corporation's application for the subsidy. This bill requires that another list is to be provided by the corporation to the State agency annually for contributions made during each year the corporation received the subsidy. The State Treasurer is required to provide the annual list as part of the Unified Economic Development Budget Report as that report is required pursuant to current law. Finally, the bill removes the names of two defunct State economic development agencies and replaces the name of the New Jersey Commission on Higher Education with the Secretary of Higher Education.
Given the outcome of Citizens United v. Federal Election Commission, 558 U.S. 50 (2010), where the United States Supreme Court held that the First Amendment prohibited the government from restricting independent political expenditures by corporations and unions, this bill would provide transparency to citizens of this State in order raise awareness of those campaign contributions made by businesses receiving economic development subsidies by State agencies.
