Senator RONALD L. RICE
District 28 (Essex)
Senator JIM WHELAN
District 2 (Atlantic)
Imposes tax on certain State lottery winnings to finance grant program for not-for-profit entities operating after school programs in certain districts.
CURRENT VERSION OF TEXT
An Act concerning the provision of after school programs and supplementing Title 54 of the Revised Statutes and chapter 6 of Title 18A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. In addition to any other tax authorized by law, there is imposed and shall be paid a tax of 0.5% on lottery winnings from the New Jersey Lottery from a prize in an amount equal to or greater than $600. The Director of the Division of Taxation in the Department of the Treasury shall promulgate such rules and regulations as the director determines to be necessary to effectuate the provisions of this section.
b. All revenue collected from the tax imposed pursuant to subsection a. of this section shall be deposited in the “After School Program Fund” established pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill), and shall not be used to supplant State funds that are allocated to support after school programs as of the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill).
2. There is hereby established in the Department of Education a fund entitled the “After School Program Fund.” The fund shall be credited with all revenue collected from the tax imposed on lottery winnings from the New Jersey Lottery pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill). All interest or other income or earnings derived from the investment or reinvestment of moneys in the fund shall be credited to the fund. The moneys in the fund shall be dedicated to fund the grant program established by the Commissioner of Education pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill).
3. The Commissioner of Education shall establish a program to annually award competitive grants to not-for-profit entities that operate after school programs in school districts in which at least 40% of the students are at-risk pupils, as defined in section 3 of P.L.2007, c.260 (C.18A:7F-45). The commissioner shall issue a notice of grant opportunity that shall require an applicant to submit information including, but not limited to, the following:
a. the manner in which the planned after school program would serve the needs and interests of the students in the school district;
b. a detailed description of the recreational, academic, and civic enrichment activities that would be offered;
c. the background and qualifications of the personnel who will supervise the program;
d. a schedule of the days and hours that the program will operate;
e. the criteria that will be used to determine student eligibility to participate in the program;
f. an estimate of the total annual cost of the program;
g. an estimate of the number of children who will be served; and
h. any other information that the commissioner deems necessary for evaluation of the grant application.
4. This act shall take effect immediately and shall first apply to the first State fiscal year beginning after the effective date of this act.
This bill imposes a tax of 0.5 percent on New Jersey Lottery winnings that are greater than or equal to $600. The revenue generated by this tax would be used to fund a program to provide competitive grants to not-for-profit entities that operate after school programs in school districts in which at least 40 percent of the students are considered to be at-risk pupils (under the school funding law, this includes students who live in households in which the income is no greater than 185 percent of the federal poverty threshold).