A3394

An Act concerning the powers of municipal governing bodies regarding redevelopment and rehabilitation and amending P.L.1992, c.79.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. Section 4 of P.L.1992, c.79 (C.40A:12A-4) is amended to read as follows:

4. In exercising the redevelopment and rehabilitation functions provided for in this act:

a. A municipal governing body shall have the power to:

(1) Cause a preliminary investigation to be made pursuant to subsection a. of section 6 of P.L.1992, c.79 (C.40A:12A-6) as to whether an area is in need of redevelopment;

(2) Determine pursuant to subsection b. of section 6 of P.L.1992, c.79 (C.40A:12A-6) that an area is in need of redevelopment;

(3) Adopt a redevelopment plan pursuant to section 7 of P.L.1992, c.79 (C.40A:12A-7);

(4) Determine pursuant to section 14 of P.L.1992, c.79 (C.40A:12A-14) that an area is in need of rehabilitation.

b. A municipal planning board shall have the power to:

(1) Conduct, when authorized by the municipal governing body, a preliminary investigation and hearing and make a recommendation pursuant to subsection b. of section 6 of P.L.1992, c.79 (C.40A:12A-6) as to whether an area is in need of redevelopment;

(2) Make recommendations concerning a redevelopment plan pursuant to subsection e. of section 7 of P.L.1992, c.79 (C.40A:12A-7), or prepare a redevelopment plan pursuant to subsection f. of that section.

(3) Make recommendations concerning the determination of an area in need of rehabilitation pursuant to section 14 of P.L.1992, c.79 (C.40A:12A-14).

c. (1) The municipality shall be responsible for implementing redevelopment plans and carrying out redevelopment projects pursuant to section 8 of P.L.1992, c.79 (C.40A:12A-8). The municipality may execute these responsibilities directly, or in addition thereto or in lieu thereof, [through] may designate by ordinance either a municipal redevelopment agency, or a municipal housing authority authorized to exercise redevelopment powers pursuant to section 21 of P.L.1992, c.79 (C.40A:12A-21), but there shall be only one redevelopment entity responsible for each redevelopment project. A county improvement authority authorized to undertake redevelopment projects pursuant to the "county improvement authorities law," P.L.1960, c.183 (C.40:37A-44 et seq.) may also act as a redevelopment entity pursuant to this act. A redevelopment entity designated by the municipality shall not employ:

(a) any relative of a local government officer or employee, which means the spouse or domestic partner of a local government officer or employee, or the parent, child, brother, sister, aunt, uncle, niece, nephew, grandparent, grandchild, son-in-law, daughter-in-law, first cousin, stepparent, stepchild, stepbrother, stepsister, half-brother or half-sister of the local government officer or employee or of the spouse or domestic partner of the local government officer or employee, whether the relative is related to the local government officer or employee, or the local government officer or employee's spouse or domestic partner, by blood, marriage or adoption; or

(b) any other person, if the employment of that person is in exchange for, or in consideration of aid in the designation of the redevelopment entity by the municipality.

The redevelopment entity, so authorized, may contract with any other public body, in accordance with the provisions of section 8 of P.L.1992, c.79 (C.40A:12A-8), for the carrying out of a redevelopment project or any part thereof under its jurisdiction. Notwithstanding the above, the governing body of the municipality may, by ordinance, change or rescind the designation of the [entity responsible for implementing] agency or housing authority designated to implement a redevelopment plan and [carrying] carry out a redevelopment project and may have the municipality assume this responsibility [itself, but] ; provided, however, that only the redevelopment entity authorized to undertake a particular redevelopment project shall remain authorized to complete it, unless the redevelopment entity and redeveloper agree otherwise, or unless no obligations have been entered into by the redevelopment entity with parties other than the municipality. This shall not diminish the power of the municipality to dissolve a redevelopment entity pursuant to section 24 of P.L.1992, c.79 (C.40A:12A-24), and section 20 of the "Local Authorities Fiscal Control Law," P.L.1983, c.313 (C.40A:5A-20).

(2) In addition to complying with the applicable provisions of the State “pay-to-play” law, P.L.2005, c.51 (C.19:44A-20.13 et seq.), the municipal governing body shall not enter into a contract with a redevelopment entity if, between 36 months prior to the dissemination of the request for proposals and 36 months following the completion of any economic development activities undertaken pursuant to this section, the redevelopment entity has made a contribution that is reportable by the recipient under P.L.1973, c.83 (C.19:44A-1 et seq.), to the candidate committee of any person serving as a member of the municipal governing body when the contract is awarded or to the State, county or municipal committee of the political party to which any person serving as a member of the municipal governing body belongs when the contract is awarded.

(3) A redevelopment entity that has entered into a contract with the municipal governing body shall not make, during the duration of the contract, a contribution that is reportable by the recipient under P.L.1973, c.83 (C.19:44A-1 et seq.) to the candidate committee of any person serving as a member of the municipal governing body, to the State, county or municipal committee of the political party to which any person serving as a member of the municipal governing body belongs, or to the candidate committee of any person who resides in the county in which any economic development activities established pursuant to this section have been undertaken.

d. Upon a determination by the Commissioner of Community Affairs, after notice and a hearing, that a redevelopment entity is in violation of paragraphs (1), (2) or (3) of subsection c. of this section, the redevelopment agreement shall be void and the redeveloper shall be subject to a penalty of an amount equal to five percent of the total value of the redevelopment project, which penalty may be collected in a summary proceeding pursuant to the "Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.). The penalty amount shall be transmitted to the chief financial officer of the municipality for use for parks and recreation. The commissioner shall promulgate rules and regulations to effectuate the purposes of this subsection.

(cf: P.L.1992, c.79, s.4)

2. This act shall take effect immediately.

STATEMENT

This bill would require that, in addition to complying with the applicable provisions of the State “pay-to-play” law, P.L.2005, c.51 (C.19:44A-20.13 et seq.), a redevelopment entity designated by a municipality shall not employ any relative of a local government officer or employee, which means the spouse or domestic partner of a local government officer or employee, or the parent, child, brother, sister, aunt, uncle, niece, nephew, grandparent, grandchild, son-in-law, daughter-in-law, first cousin, stepparent, stepchild, stepbrother, stepsister, half brother or half sister of the local government officer or employee or of the spouse or domestic partner of the local government officer or employee, whether the relative is related to the local government officer or employee, or the local government officer or employee's spouse or domestic partner, by blood, marriage or adoption; or any other person, if the employment of that person is in exchange for, or in consideration of aid in the designation of the redevelopment entity by the municipality.

The bill would also provide that a municipal governing body shall not enter into a contract with a redevelopment entity if, between 36 months prior to the dissemination of the request for proposals and 36 months following the completion of any economic development activities undertaken pursuant to this section, the redevelopment entity has made a contribution that is reportable by the recipient under P.L.1973, c.83 (C.19:44A-1 et seq.), to the candidate committee of any person serving as a member of the municipal governing body when the contract is awarded or to the State, county or municipal committee of the political party to which any person serving as a member of the municipal governing body belongs when the contract is awarded.

Finally, the bill would require that a redevelopment entity that has entered into a contract with the municipal governing body shall not make, during the duration of the contract, a contribution that is reportable by the recipient under P.L.1973, c.83 (C.19:44A-1 et seq.) to the candidate committee of any person serving as a member of the municipal governing body, to the State, county or municipal committee of the political party to which any person serving as a member of the municipal governing body belongs, or to the candidate committee of any person who resides in the county in which any economic development activities established pursuant to this section have been undertaken.

Upon a determination by the Commissioner of Community Affairs, after notice and a hearing, that a redevelopment entity is in violation of the provisions of this bill, the redevelopment agreement shall be void and the redeveloper shall be subject to a penalty of an amount equal to five percent of the total value of the redevelopment project, which penalty may be collected in a summary proceeding pursuant to the "Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.). The penalty amount shall be transmitted to the chief financial officer of the municipality for use for parks and recreation.