Bill Text: NJ S614 | 2010-2011 | Regular Session | Introduced
Bill Title: Creates Meadowlands Economic Development Trust; provides for sharing of tax revenues generated by developments of regional economic significance to improve local quality of life.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2010-01-12 - Introduced in the Senate, Referred to Senate Economic Growth Committee [S614 Detail]
Download: New_Jersey-2010-S614-Introduced.html
STATE OF NEW JERSEY
214th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2010 SESSION
Sponsored by:
Senator ROBERT M. GORDON
District 38 (Bergen)
Co-Sponsored by:
Senator Weinberg
SYNOPSIS
Creates Meadowlands Economic Development Trust; provides for sharing of tax revenues generated by developments of regional economic significance to improve local quality of life.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel
An Act promoting sound growth and quality of life enhancement in certain highly dense areas of the State using existing regional planning mechanisms and supplementing Title 13 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. This act shall be known and may be cited as the "Meadowlands Economic Development Trust Act."
2. The Legislature finds and declares that:
When the Legislature created the Hackensack Meadowlands District in 1968, there were approximately 21,000 acres of salt water swamps, meadows and marshes which had resisted comprehensive development to that point because of their unique environmental circumstances;
In creating the meadowlands district, it was the intent of the Legislature to help avoid piecemeal reclamation and unplanned development by establishing a framework within which private owners could assert their interests and to promote a more rational pattern of growth and development through regional planning;
Over the thirty-seven years since the establishment of the district, the regional framework for planning and ratable sharing operative in the district has served as a national model for the achievement of sound growth through intermunicipal development and cooperation;
Given the continued economic growth and development that has occurred in the district and surroundings, the maintenance of sound infrastructure has become increasingly critical; in recognition of this, the "Hackensack Meadowlands Transportation Planning District Act", P.L.2005, c.102 (C.13:17-95 et seq.), was recently enacted in order to promote the development of district-wide transportation planning through a consultative planning process;
Owing to the increased redevelopment pressure in northern New Jersey and population densities which are among the highest in the nation, it is vital that creative financing tools be developed and made available to municipalities which host development projects of regional economic significance;
As the State's premier regional planning agency, the New Jersey Meadowlands Commission provides an ideal forum through which to mediate the reallocation of some portion of the revenues to be generated by developments of regional economic significance in order to help alleviate the dislocation associated with that development.
3. As used in this act:
"Board" means the board of trustees of the Meadowlands Economic Development Trust established pursuant to subsection a. of section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill);
"Chief fiscal officer" means the chief fiscal officer employed by the commission, as provided pursuant to section 5 of P.L.1968, c.404 (C.13:17-5);
"Commission" or "Meadowlands commission" means the Hackensack Meadowlands Development Commission created by P.L.1968, c.404;
"Development impacted region" or "region" means and shall include any municipality situated in a qualified county and any municipality which borders a host municipality but which does not house an urban enterprise zone;
"Development of regional economic significance" means a development within the district which includes over four million square feet of mixed uses situated on a parcel of land of greater than 700 contiguous acres;
"Director" means the director of the Division of Taxation in the Department of the Treasury;
"District" means the Hackensack Meadowlands District as delineated in section 4 of P.L.1968, c.404, (C.13:17-4);
"Executive director" means the executive director of the commission;
"Host municipality" means any municipality which hosts a development of regional economic significance;
"Municipal equalized net valuation taxable" means the taxable value of municipal real property determined by the county tax board for county tax apportionment reported for the most recent year in the county abstract of ratables promulgated by the county tax board.
"Municipal aid economic need allocation factor" means the quotient resulting from dividing the weighted population per million dollars of tax base by the total of all weighted population per million dollars of tax base for municipalities within the region.
"Municipal population ratio" means the municipal population divided by the most recently available official population count for the county, in which the municipality is located either according to the most recent federal decennial census or the most recent population estimate made available by the State Department of Labor and Workforce Development.
"Persons per million dollars of tax base" means the municipal population divided by the quotient equal to the municipal equalized net valuation taxable, as determined by the county tax board, divided by $1,000,000.
"Weighted population per million dollars of tax base" means the product of the municipal population ratio multiplied by the persons per million dollars of tax base.
"Municipal population" means the most recently available official population count for the municipality, either according to the most recent federal decennial census or the most recent population estimate made available by the State Department of Labor and Workforce Development;
"Qualified county" means any county part of which is located in the district and within which is situated or to be situated a development of regional economic significance; and
"Trust" means the Meadowlands Economic Development Trust established pursuant to section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill).
4. a. There is created in but not of the Hackensack Meadowlands Development Commission, established pursuant to section 5 of P.L.1968, c.404 (C.13:17-5), the Meadowlands Economic Development Trust. The purpose of the trust is to oversee the distribution of funds made available pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill), as provided pursuant to section 5 of P.L. , c. (C. ) (pending before the Legislature as this bill).
b. The powers and duties of the trust shall vest in and be exercised by a board of trustees, comprised of the chief executive officer of each qualified county, exofficio, or the designee of that chief executive officer or officers, the executive director of the commission, exofficio, or the designee, of the executive director, and three public members from each qualified county appointed by the Governor, with the advice and consent of the Senate, residents of the qualified county or counties and one of whom is a local elected official. If there is more than one qualified county, the trust shall include a local elected official from each county. The public members shall serve for a term of three years or until the expiration of their term of elected office.
c. The Governor shall designate one of the members of the board of trustees as chairperson and one of the members as vice-chairperson. Any board member so designated shall serve as chairperson or vice-chairperson at the pleasure of the Governor designating that member and until a successor has been designated. The chairperson of the board of trustees is its presiding officer and the vice-chairperson shall act as chairperson in the chairperson's absence.
d. Any vacancies in the membership of the board occurring other than by expiration of term shall be filled by the Governor, with the advice and consent of the Senate, for the unexpired term only. Any member of the board may be removed from office by the Governor for cause, upon notice and opportunity to be heard.
e. The members of the board shall serve without compensation but the public members shall be reimbursed for necessary expenses incurred in the performance of their duties.
f. A majority of the full membership of the board shall constitute a quorum for the transaction of business.
g. Action may be taken and motions and resolutions adopted by the board at any meeting thereof by the affirmative vote of a majority of the full membership of the board.
h. The board shall meet regularly as it may determine, and shall also meet at the call of the chairperson of the board or the Governor. Meetings of the board shall be subject to the "Open Public Meetings Act," P.L.1975, c.231 (C.10:4-6 et seq.).
i. In order to fulfill those responsibilities assigned to it pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill), the board may call to its assistance and avail itself of the services of those employees of any State, county or municipal department, board, bureau, commission or agency as it may require and as may be available to it for its purposes. The board shall be entitled to call upon any department, agency or office of the State of New Jersey for such documents, materials and information as it may deem necessary.
5. The board shall:
a. develop a priority system, ranking criteria, and funding policies to govern the distribution of funds pursuant to sections 9 and 10 of P.L. , c. (C. ) (pending before the Legislature as this bill);
b. establish an application process through which funds shall be made available to municipalities, setting forth the specific purposes for which funds may granted;
c. assure that the funds distributed pursuant to sections 9 and 10, are spent in accordance with the terms of the grant agreements;
d. direct the chief fiscal officer of the commission to make financial distributions in accordance with decisions made by the board, by resolution; and
e. maintain an accounting of the moneys on hand in each account and oversee the preparation of the annual report required pursuant to section 13 of P.L. , c. (C. ) (pending before the Legislature as this bill).
6. a. The Director of the Division of Taxation shall pay sixty percent of the receipts of the tax imposed under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.) which are levied and collected from vendors on the premises of a development of regional economic significance which is situated on land owned by the State of New Jersey to the chief fiscal officer, to be deposited into the trust fund for the appropriate county established pursuant to subsection b. of this section. The remaining forty percent shall be deposited into the General Fund as otherwise provided pursuant to the "Sales and Use Tax Act," (C. 54:32B-1 et seq.).
b. The chief fiscal officer shall establish and manage a regional trust fund, into which shall be deposited the proceeds from the receipts of the tax imposed under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.), as provided in subsection a. of this section.
7. a. Every vendor who commences business or opens a new place of business in a development of regional economic significance subject to the provisions of section 6 of P.L. , c. (C. ) (pending before the Legislature as this bill) and is required to collect any tax imposed by the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.) shall, upon filing with the Director of the Division of Taxation a certificate of registration as required pursuant to section 15 of P.L.1966, c.30 (C.54:32B-15), notify the director of the applicability of the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill) to the vendor.
b. Any vendor who is in business on the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) and is located in a development of regional significance subject to the provisions of section 6 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall forthwith notify the director; the redirection of the receipts of the tax to be paid into the trust fund created pursuant to subsection b. of section 6 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall take effect on the first day of the first full month occurring 90 days after the date of transmittal to the State Treasurer.
8. The tax receipts deposited into a trust fund established pursuant to subsection b. of section 6 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall be maintained in a series of separate accounts, as follows:
a. 25 percent shall be maintained in a Regional Quality of Life Enhancement Program account for distribution to support initiatives which improve the quality of life in municipalities within the region through an application process in accordance with section 9 of
P.L. , c. (C. ) (pending before the Legislature as this bill);
b. 25 percent shall be maintained in a Regional Mobility Improvement Program account for distribution to support initiatives which improve mobility and accessibility in municipalities within the region through an application process in accordance with section 10 of P.L. , c. (C. ) (pending before the Legislature as this bill);
c. 25 percent shall be maintained in a Regional Municipal Aid (population) account, to be distributed to municipalities within the region based on population size, in accordance with the formula set forth in section 11 of P.L. , c. (C. ) (pending before the Legislature as this bill); and
d. 25 percent shall be maintained in a Regional Municipal Aid (economic need) account, to be distributed to municipalities within the region based on economic need, in accordance with section 12 of P.L. , c. (C. ) (pending before the Legislature as this bill).
9. Prior to awarding any funds out of the Quality of Life Enhancement Program account established pursuant to subsection a. of section 8 of P.L. , c. (C. ) (pending before the Legislature as this bill), the trust shall develop a priority system, ranking criteria, and funding policies to govern the distribution of funds from that account.
Authorized purposes for which funds may be granted from this account by the trust shall include support for Main Street revitalization, open space preservation, affordable housing, and smart growth development.
In order to receive funds out of that account, municipalities within the region shall submit an application or applications to the trust which sets forth the purposes for which the funds are to be used, demonstrates that the purposes for which the moneys are to be spent will aid in improving the quality of life in the county by alleviating specific negative impacts of the development of regional economic significance, and are consistent with applicable State, regional and municipal plans.
10. Prior to awarding any funds out of the Mobility Improvement Program account established pursuant to subsection b. of section 8 of P.L. , c. (C. ) (pending before the Legislature as this bill), the trust shall develop a priority system, ranking criteria, and funding policies to govern the distribution of funds from that account.
Authorized purposes for which funds may be granted from this account by the trust shall include support for highway, bridge, street, mass transit, pedestrian, and bicycling enhancement improvements designed to improve accessibility within the municipality and, in particular, promotes the reduction of automobile dependence.
In order to receive funds out of that account, municipality within the region shall submit an application or applications to the trust which sets forth the purposes for which the funds are to be used, demonstrates that the purposes for which the moneys are to be spent will mitigate congestion in the region and encourage transportation alternatives to the automobile, alleviate specific negative impacts of the development of regional economic significance, and are consistent with applicable State, regional and county plans.
11. Amounts awarded to
municipalities pursuant to subsection c. of section 8 of P.L. , c. (C. )
(pending before the Legislature as this bill) out of the Regional Municipal Aid
(population) Account shall be distributed annually based upon the
size of the municipality's population relative to the total population of the
county.
Each municipality in the region shall receive an amount to be derived by multiplying the total amount to be distributed by a fraction, the numerator of which is the municipality's population and the denominator of which is the total county population, to be paid in accordance with the provisions of section 14 of P.L. , c. (C. ) (pending before the Legislature as this bill).
12. Amounts awarded to municipalities pursuant to subsection d. of section 8 of P.L. , c. (C. ) (pending before the Legislature as this bill) out of the Regional Municipal Aid (economic need) Account shall be distributed annually among the municipalities within the region by multiplying the total amount available as certified by the chief fiscal officer by the municipal aid economic need allocation factor.
The amounts to be awarded to municipalities pursuant to this section shall be paid in accordance with the provisions of section 14 of P.L. , c. (C. ) (pending before the Legislature as this bill).
13. On or before October 1 in each year, the board of trustees shall make a report of its activities for the preceding fiscal year to the members of the commission, the Governor and each member of the Legislature. Each such report shall set forth a complete operating and financial statement covering the expenditure of funds made out of the trust fund established pursuant to subsection b. of section 6 of P.L. , c. (C. ) (pending before the Legislature as this bill) during that fiscal year, the projects for which moneys were disbursed pursuant to subsections a. and b. of section 8 of P.L. , c. (C. ) (pending before the Legislature as this bill), and an accounting of moneys distributed as required pursuant to subsections c. and d. of section 8 of P.L. , c. (C. ) (pending before the Legislature as this bill).
The Director of the Division of Budget and Accounting in the Department of the Treasury and the director's legally authorized representatives are authorized and empowered from time to time to examine the accounts, books and records of the board of trustees.
14. The chief fiscal officer shall pay to each municipality its entitlement as municipal aid made available pursuant to subsections c. and d. of section 8 of P.L. , c. (C. ) (pending before the Legislature as this bill) from the those tax receipts deposited into the trust fund for those purposes on an annual basis on June 30th of each year.
Notwithstanding any provisions of the "Local Budget Law," (N.J.S.40A:4-1 et seq.), to the contrary, a municipality which is due a payment pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill) may anticipate the amount of the payment in its annual budget for the ensuing fiscal year, in the case of a municipality which operates on the State fiscal year or the ensuing calendar year, for a municipality which operates on the calendar year.
15. This act shall take effect immediately.
STATEMENT
This bill would create a mechanism whereby revenues generated by developments of regional economic significance could be used to help improve the quality of life and alleviate certain negative consequences of the proposed development in the region in which the development is to be situated.
The bill's focus is limited to the meadowlands region for two important reasons. First, the intense development pressure in northern New Jersey argues for a system through which some portion of locally generated revenues can be directed locally in order to help alleviate the strains of continued major development in a region already characterized by the highest population densities in the nation.
Secondly, the New Jersey Meadowlands Commission is perfectly suited to help administer the reallocation of resources necessary to support existing infrastructure and quality of life initiatives given its stewardship over the region and well-recognized success in accomplishing regional planning objectives through an existing administrative structure.
Specifically, the bill establishes the Meadowlands Economic Development Trust which shall consist of the chief executive officer of the qualified county or counties, the executive director of the commission or his designee, and three public members from each qualified county, to be appointed by the Governor, with the advice and consent of the Senate. The public members shall be county residents and at least one shall be a local elected official. Public members shall serve for a term of three years. By definition, a "qualified county" is one situated within the district and which is to host a development of regional economic significance.
The bill defines a "development of regional economic significance" as one which is situated in the district and which includes over four million square feet of mixed uses situated on a parcel of land of greater than 700 contiguous acres.
For any development of regional economic significance situated on State-owned land, the bill directs that 60 percent of the sales tax receipts generated by businesses situated in the development shall be paid into a separate fund for that region
The bill defines the region to include the county which hosts a development of regional economic significance and any municipality situated adjacent to a municipality which hosts such a development, so long as that municipality does not host an urban enterprise zone.
The fund shall be segregated into four equal accounts as follows: (1) a Regional Quality of Life Enhancement Program; (2) a Regional Mobility Improvement Program; (3) a Regional Municipal Aid (population) account; and (4) a Regional Municipal Aid (economic need) account.
The bill requires that the board of trustees annually distribute the moneys available in the four accounts. The Quality of Life Enhancement Program is to support initiatives undertaken by to enhance the quality of life, such as Main Street revitalization, open space preservation, affordable housing, and smart growth development initiatives. Moneys are to be distributed through an application process overseen by the board of trustees.
The Mobility Improvement Program would also make moneys available to municipalities within the region, on an application basis, to support highway, bridge, street, mass transit, pedestrian, and bicycling enhancement improvements. Both of these programs specifically emphasize the mitigation of congestion and alleviation of particular negative impacts associated with the development of regional economic significance.
The Regional Municipal Aid (population) accounts would fund the distribution of money based on population, so that the most populous municipalities in the region would receive the most aid under this program. The Regional Municipal Aid (economic need) account would finance the distribution of money in inverse proportion to property wealth within the constituent municipalities in the region.
The bill directs the board of trustees to develop a priority system, ranking criteria, and funding policies to govern the distribution of funds to the county for quality of life and mobility improvements. Additionally, the bill sets forth appropriate accountability, oversight, local budgeting and reporting mechanisms.
