ASSEMBLY COMMERCE AND ECONOMIC DEVELOPMENT COMMITTEE

STATEMENT TO

ASSEMBLY, No. 3294

STATE OF NEW JERSEY

DATED: OCTOBER 6, 2008

      The Assembly Commerce and Economic Development Committee reports favorably Assembly Bill No. 3294.

      This bill modifies the provisions of the "Business Retention and Relocation Assistance Act," P.L.1996, c.25 (C.34:1B-112 et seq.) (“BRRA act”) to enhance the benefits of the BRRA act to certain businesses.

      Specifically, the bill amends the BRRA act to: 1) extend eligibility to businesses that pose a demonstrable flight risk due to lease expirations, competing proposals, a competitive cost advantage in favor of out-of-State locations, or other factors, without requiring relocation to another facility in New Jersey as a prerequisite; and 2) increase the one-time base tax credit amount from $1,500 to $2,500 per retained full-time job and from $1,500 to $4,000 per job if those jobs a) number 2,000 or more, and b) are being located from outside any designated urban center to areas within such a center.

      Under the provisions of the BRRA act, a “designated urban center” is an urban area that meets the criteria for designated urban centers under the State Development and Redevelopment Plan adopted by the State Planning Commission (the "commission") in accordance with the "State Planning Act," P.L.1985, c.398 (C.52:18A-196 et seq.). According to the current plan, nine urban areas meet the criteria adopted by the commission and would be affected by changes to the incentive program under the bill.  These urban areas include: Atlantic City, Camden, Newark, Jersey City, Trenton, New Brunswick, Paterson, Elizabeth, and Asbury Park.

      Further, the bill replaces the New Jersey Commerce Commission with the New Jersey Economic Development Authority (the "authority") as the agency to oversee the BRRA act program, given that the New Jersey Commerce Commission has been abolished and its responsibilities in connection with the program have been transferred to the authority.