Bill Text: NJ S2748 | 2024-2025 | Regular Session | Introduced
Bill Title: Authorizes political subdivisions to require recipients of economic development incentives to enter into community benefits agreements.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-02-15 - Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee [S2748 Detail]
Download: New_Jersey-2024-S2748-Introduced.html
Sponsored by:
Senator NILSA I. CRUZ-PEREZ
District 5 (Camden and Gloucester)
SYNOPSIS
Authorizes political subdivisions to require recipients of economic development incentives to enter into community benefits agreements.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning community benefits agreements and supplementing Title 40A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. A political subdivision within this State may condition the grant of any economic development subsidy which either alone or in the aggregate is in excess of $100,000 from that political subdivision upon the grantee's promise to enter into a community benefits agreement.
b. As used in this section:
"Community benefits agreement" means a legally binding contract concerning a specific project required by ordinance, resolution, or policy of a county, municipality, or other political subdivision within this State, which agreement shall include, but not be limited to, provisions:
(1) requiring contractors and developers of the project to make specific contributions for the benefit of the community; and
(2) detailing the project's contributions to the community related to:
(a) local hiring provisions,
(b) area wage and benefits standards consistent with State statutes,
(c) the engagement of local businesses for the provision of goods and services, or
(d) any other negotiated activity in exchange for the economic development subsidy.
"Economic development subsidy" means the provision of an amount of funds to a recipient business by or from a political subdivision within the State for the purpose of stimulating economic development in New Jersey, including, but not limited to, any bond, grant, loan, loan guarantee, matching fund, tax credit, or other tax expenditure. "Economic development subsidy" shall not mean any contract under which a State public body purchases or otherwise procures goods, services, or construction on an unsubsidized basis, including any contract solely for the construction or renovation of a facility owned by a State public body.
"Tax expenditure" means the amount of foregone tax collections due to any abatement, reduction, exemption, credit, or transfer certificate against any State or local tax, including, but not limited to: taxes on raw materials, inventories, or other assets; taxes on gross receipts, income, or sales; and any use, excise, or utility tax. "Tax expenditure" shall not mean: any credit against any tax liability of an employee; any personal exemption, homestead rebate, credit, or deduction for the expenses of a household or individual; or other reduction of the tax liability of an individual or household.
2. This act shall take effect immediately.
STATEMENT
This bill authorizes any political subdivision within this State, when granting an economic development subsidy in an amount, either alone or in the aggregate, in excess of $100,000 to a developer, to condition the grant proceeds upon the grantee's promise to enter into a community benefits agreement. The bill defines "community benefits agreement" to mean a legally binding contract concerning a specific project which requires contractors and developers of the project to make specific contributions for the benefit of the community including, but not limited to, provisions related to local hiring, area wage and benefits standards, or engaging local businesses for the provision of goods and services.
