Bill Text: NJ S1913 | 2010-2011 | Regular Session | Introduced
Bill Title: Establishes "Garden State Growth Zone" program within NJEDA.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2010-05-13 - Introduced in the Senate, Referred to Senate Economic Growth Committee [S1913 Detail]
Download: New_Jersey-2010-S1913-Introduced.html
Sponsored by:
Senator JOSEPH M. KYRILLOS, JR.
District 13 (Middlesex and Monmouth)
SYNOPSIS
Establishes "Garden State Growth Zone" program within NJEDA.
CURRENT VERSION OF TEXT
As introduced.
An Act establishing a "Garden State Growth Zone" program within 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. As used in this act:
"Abatement" means an exemption from real property taxes provided for the purposes of encouraging the construction, conversion, improvement, and redevelopment of real property conducted by eligible businesses or residents within a growth zone pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill).
"Authority" means the New Jersey Economic Development Authority created by P.L.1974, c.80 (C.34:1B-1 et seq.).
"Eligible business" means any entity authorized to do business in the State of New Jersey which, at the time of the designation of a growth zone, is engaged in the active conduct of a trade or business in that growth zone; or an entity which, after that designation but during the designation period, becomes newly engaged in the active conduct of a trade or business in that zone and has at least 25% of its full-time employees employed at a business location in the growth zone, meeting one or more of the following criteria: (1) residents within the growth zone, within another growth zone or within a qualifying municipality; (2) unemployed for at least six months prior to being hired and residing in New Jersey, and recipients of New Jersey public assistance programs for at least six months prior to being hired, or either of the aforesaid; or (3) determined to be low income individuals pursuant to the Workforce Investment Act of 1998, Pub.L.105-220 (29 U.S.C. s.2811). Approval as a qualified business shall be conditional upon meeting all outstanding tax obligations, and may be withdrawn by the authority if a business is continually delinquent in meeting its tax obligations.
"Eligible municipality" means any municipality in which there was, as of the last full calendar year immediately preceding the year in which an application for zone designation is submitted by a municipality, an annual average of at least 2,000 unemployed persons, and in which the municipal average annual unemployment rate for that year exceeded the State average annual unemployment rate; except that any municipality which qualifies for State aid pursuant to P.L.1978, c.14 (C.52:27D-178 et seq.) shall qualify without regard to the annual average number of unemployed persons if its municipal average annual unemployment rate for that year exceeded the State average annual unemployment rate. The annual average number of unemployed persons and the average annual unemployment rates shall be estimated for the relevant calendar year by the Office of Labor Planning and Analysis of the State Department of Labor and Workforce Development.
"Director" means the Director of the Division of Taxation in the Department of the Treasury.
"Garden State Growth Zone" or "growth zone" means a geographic area of at least 10 acres within a smart growth area, designated by the authority pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill) within any eligible municipality that has the potential of attracting business investment and job growth. A growth zone may include any area within an enterprise zone established pursuant to the "New Jersey Urban Enterprise Zones Act," P.L.1983, c.303 (C.52:27H-60 et seq.).
"Growth zone development plan" means a plan adopted by the governing body of an eligible municipality for the development of a growth zone therein, and for the direction and coordination of activities of the municipality, growth zone businesses, and community organizations within the growth zone toward the economic betterment of the eligible businesses and residents of the growth zone and the municipality.
"Regulatory relief" means any accelerated approval deadline or expedited inspection conducted by any State or local governmental agency or authority promulgating rules or regulations under the law of the State or political subdivision thereof.
"Smart growth area" means an area designated pursuant to P.L.1985, c.398 (C.52:18A-196 et seq.) as Planning Area 1 (Metropolitan), Planning Area 2 (Suburban), a designated center, or a designated growth center in an endorsed plan; a smart growth area and planning area designated in a master plan adopted by the New Jersey Meadowlands Commission pursuant to subsection (i) of section 6 of P.L.1968, c.404 (C.13:17-6); a growth area designated in the comprehensive management plan prepared and adopted by the Pinelands Commission pursuant to section 7 of the "Pinelands Protection Act," P.L.1979, c.111 (C.13:18A-8); an urban enterprise zone or UEZ-impacted business district designated pursuant to P.L.1983, c.303 (C.52:27H-60 et seq.) or P.L.2001, c.347 (C.52:27H-66.2 et al.); an area determined to be in need of redevelopment pursuant to sections 5 and 6 of P.L.1992, c.79 (C.40A:12A-5 and 40A:12A-6) and as approved by the Department of Community Affairs; or similar areas designated by the Department of Environmental Protection.
2. The authority shall establish a "Garden State Growth Zone" program within the authority which shall consist of one or more growth zones, subject to the provisions of P.L. , c. (C. )(pending before the Legislature as this bill), for the purpose of allowing an eligible business or a resident within the growth zone to qualify and receive benefits as may be provided for a period of up to 10 years in duration, in order to promote economic development therein. Such benefits shall include eligibility for assistance as described in section 5 of P.L. , c. (C. )(pending before the Legislature as this bill) and include regulatory relief by every agency of the State and political subdivision thereof.
3. a. Prior to the establishment of any growth zone, the governing body of an eligible municipality shall submit an application to the Lieutenant Governor, in a manner chosen by the Lieutenant Governor, for the evaluation and approval of a proposed growth zone development plan. The application shall:
(1) describe the current economic state of the proposed growth zone, including, but not limited to, poverty and unemployment levels, household income, job loss, and property deterioration;
(2) identify the boundaries of the proposed growth zone and provide proof that it contains adequate transportation and environmental infrastructure to support the viability of development therein;
(3) list those economic development efforts, business assistance incentives, and regulatory approval relief measures that should be applied within the proposed growth zone, as applicable;
(4) designate a growth zone regulatory officer who shall oversee the implementation of any regulatory relief measures applicable to eligible businesses within the zone and report to the Lieutenant Governor on the type of regulatory relief measures employed within any approved growth zone; and
(5) include a copy of the resolution adopted by the governing body of the municipality in support of such application, as well as any measures, including any local incentives authorized by law, to be undertaken by the municipality to participate in and support the growth zone development plan.
b. Upon the Lieutenant Governor's review and approval, the Lieutenant Governor shall notify the eligible municipality and the authority that such approval to establish a growth zone has been given which authorizes the authority to administer the program.
4. Every eligible business receiving assistance under the provisions of P.L. , c. (C. )(pending before the Legislature as this bill) shall register annually with the eligible municipality in a manner established by that municipality, which shall certify whether the business continues as an eligible business.
5. The authority and any other State department, agency, board, commission, or authority shall modify its existing programs and where permissible by law, offer enhanced benefits or bonuses under any State business assistance program, to give benefits to businesses that locate and remain within a growth zone as applicable, so long as the business location is within the growth zone. Programs to be utilized in this regard shall include any business assistance program established by the authority or any other State department, agency, board, commission, or other authority.
6. The authority shall work cooperatively with other State and local public entities to explore and implement opportunities to direct resources to eligible businesses and residents, including, but not limited to, technology, financial and workforce development opportunities, infrastructure, and housing within a growth zone.
7. a. The authority shall designate an authority employee to work with businesses seeking designation as an eligible business. Such employee shall be responsible for communicating with other State agencies and local entities to develop a single application for eligibility in the program.
b. The authority is authorized to call upon any department, authority, commission, board, office, division, or agency of the State to provide such information, resources, or other assistance deemed necessary to discharge its responsibilities under this act, including regulatory relief to eligible businesses. Such responsibilities may include, but not be limited to, the New Jersey Commission on Science and Technology for assistance with its technology funding programs; the Department of Labor and Workforce Development for assistance in developing workforce development strategies; the Department of Transportation and the New Jersey Transit Corporation for assistance in enhancing public transportation networks and infrastructure; the Department of Community Affairs for assistance in expanding housing opportunities and advising on smart growth development strategies; and the Commission on Higher Education to facilitate and promote partnerships and programs to address workforce needs and enhance research and development.
Each department, authority, commission, board, office, division, and agency of the State is hereby required to cooperate with the authority and to furnish the authority with such information and assistance as is necessary to accomplish the purposes of P.L. , c. (C. )(pending before the Legislature as this bill).
8. a. Upon designation as an eligible business and upon proper documentation to the director, for a period of ten years, such eligible business shall not be subject to the provisions of the "Corporation Business Tax Act (1945)," P.L.1945, c.162 (C.54:10A-1 et seq.) or the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq.
b. Upon designation as an eligible business and upon proper documentation to the director, for a period of ten years, any tax credit or other financial assistance granted to an eligible business that is not used may be sold by such business to another business as provided in State law.
c. A State resident who claims residency for a full calendar year within a growth zone shall not be subject to the provisions of the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq. for each calendar year as a resident of such growth zone for a period of ten years.
d. Every owner of real property within a growth zone shall be eligible to be granted an abatement of taxes on such property for a period of ten years in a manner consistent with State law and shall make payment in lieu of taxes on such property.
9. This act shall take effect on the 60th day after the date of enactment, but the New Jersey Economic Development Authority may take such anticipatory administrative action in advance thereof as shall be necessary for the implementation of this act.
STATEMENT
This bill requires the New Jersey Economic Development Authority (the "authority") to establish a "Garden State Growth Zone" program within the authority to consist of one or more growth zones. The purpose of the growth zones is to provide eligible businesses that locate within a growth zone incentives and regulatory relief for a period of up to 10 years, so that those businesses, in turn, generate gains in investment and jobs therein.
Factors such as poverty levels, unemployment, family income, population, and job loss and property deterioration may be used as criteria to delineate eligible growth zones. Other criteria include capacity measures such as available transportation and environmental infrastructure to support development, and viability of development if incentives and regulatory relief are applied. Growth zones are subject to a minimum of 10 acres and may encompass any enterprise zone established pursuant to the "New Jersey Urban Enterprise Zones Act," P.L.1983, c.303 (C.52:27H-60 et seq.).
In order to determine whether an area meets the appropriate criteria, a municipality seeking designation shall submit a growth zone development plan to the Lieutenant Governor outlining planned local growth zone tax incentives and local regulatory relief and planned specific infrastructure and quality of life improvements for evaluation and approval. The development plan is also to include the designation by the municipality of a growth zone regulatory officer who shall oversee the implementation of any regulatory relief measures applicable to eligible businesses within the growth zone and report to the Lieutenant Governor on the type of regulatory relief measures utilized, such as accelerated approval deadlines and expedited inspections of State and local government agencies, within any approved growth zone. Recipients of zone assistance would register each year with the applicable municipality certifying assistance eligibility.
All existing State economic development incentives should be available anywhere in a growth zone, regardless of targeted eligibility limitations. In addition, incentives could be enhanced in a zone. Further, incentives unable to be used by a recipient such as a tax credit should be transferable to another taxpayer. The authority shall assign an incentives and financing officer to work with growth zone applicants and interface with all State and local agencies to develop a "one stop" application.
As an impetus to for eligible businesses and residents to locate within a growth zone, the following financial incentives, as applicable, are offered for a ten-year period: 1) an eligible business shall not be subject to the provisions of the "Corporation Business Tax Act (1945)," P.L. 1945, c. 162 (C. 54:10A-1 et seq.) or the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq.; 2) any tax credit or other financial assistance granted to an eligible business that is not used may be sold by such business to another business as provided in State law; 3) a State resident who claims residency for a full calendar year within a growth zone shall not be subject to the provisions of the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq. for each calendar year as a resident of such growth zone; and 4) every owner of real property within a growth zone shall be eligible to be granted an abatement of taxes on such property in a manner consistent with State law and shall make payment in lieu of taxes on such property.
This bill is based on a recommendation contained in the report entitled "Governor-Elect Christie: Report to the Transition Team: Subcommittee on Economic Development & Job Growth."
