A196

ASSEMBLY, No. 196

STATE OF NEW JERSEY

Introduced Pending Technical Review by Legislative Counsel

PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION

By Assemblywoman WEINBERG

An Act strengthening State industrial retention efforts, establishing a New Jersey Economic Stabilization Authority, supplementing Title 34 of the Revised Statutes and making an appropriation.

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 "Economic Stabilization Act."

2. The Legislature finds and declares that:

a. During the 1980s and 1990s, New Jersey manufacturing employment declined every year except for one and was subject to much greater declines than manufacturing employment at the national level, with employment in the State's leading manufacturing industries faring worse than employment in their national counterparts;

b. Tens of thousands of former industrial workers have not benefited from the State's overall growth, but have instead experienced prolonged unemployment, involuntary part-time work, or new jobs with inadequate benefits and much lower pay levels;

c. New Jersey's net decline in manufacturing employment over the last quarter of a century has been concentrated almost entirely in urban centers, removing important ladders of opportunity for many citizens in the State's largest communities;

d. Notwithstanding its recent decline, the State's manufacturing sector continues to provide full-time non-seasonal employment with better than average pay and benefits for hundreds of thousands of workers;

e. Manufacturing, which accounts for most of the New Jersey's high technology jobs, has been and will continue to be central to the State's role as a high technology leader;

f. In evaluating the significance of the potential loss of any industrial establishment or enterprise, the State should consider not only the direct financial return on investments in the establishment, but also the social costs of any related large employment loss, and the fiscal and other benefits derived by the State and its citizens from the continued operation of the establishment or enterprise, including the indirect employment it provides and its contribution to maintaining New Jersey's economic diversity;

g. It is an appropriate public purpose to establish a New Jersey Economic Stabilization Authority to provide financing and other assistance or participation necessary to implement transfers of ownership, corporate restructuring or turnaround plans for economically viable, but troubled, facilities or enterprises likely to experience large employment losses, closures or failures without such assistance or participation;

h. In order to have the time necessary to be successful in preventing avoidable closings of viable facilities or enterprises, State and local public agencies need advanced warning of anticipated closings which is significantly longer than the amount of prenotification presently required under the provisions of the federal "Worker Adjustment and Retraining Notification Act," Pub.L.100-379 (29 U.S.C. §2101 et seq.); and

i. Even in situations where the closing of a facility is unavoidable, adequate notification of the closure and a timely response by appropriate public agencies is necessary to help workers to effectively utilize job retraining, educational and other services in order to make a timely transition to new employment or occupations.

3. As used in this act:

"Advisory board" means the Economic Stabilization Advisory Board established pursuant to section 9 of this act.

"Authority" means the New Jersey Economic Stabilization Authority established pursuant to section 4 this act.

"Department" means the Department of Labor.

"Development property" means any real or personal property or interest therein, improvements thereon, appurtenances thereto and air or other rights in connection therewith, including land, buildings, plants, structures, systems, works, machinery and equipment.

"Employer" means an individual or private business entity which employs the workforce at an establishment.

"ESOP" means employee stock ownership plan.

"Establishment" means a single place of employment which has been operated by an employer for a period longer than three years, but shall not include a temporary construction site.

"Executive director" means the executive director of the authority.

"Fund" means the Economic Stabilization Fund established pursuant to section 8 of this act.

"Person" means any person, including an individual, firm, partnership, association, society, organization, trust, public or private corporation or other legal entity, or public or governmental body.

"Project" means:

a. The acquisition, construction, reconstruction, repair, alteration, improvement and extension of any development property, whether in existence or under construction;

b. The purchase and installation of equipment and machinery;

c. The extension or provision of utilities, access roads and other appurtenant facilities for the development property;

d. The acquisition, financing or refinancing of inventory, raw materials, supplies, work in progress, or stock in trade;

e. The financing, refinancing or consolidation of secured or unsecured debt, borrowings, or obligations;

f. The financing of any other expense incurred in the ordinary course of business; or

g. The acquisition of an equity interest in, including capital stock of, any corporation or other enterprise.

"Qualified project" means a project qualified to receive authority assistance or participation pursuant to section 7 of this act.

"Response team" means the plant closing response team established pursuant to section 26 of this act.

"Revenues" mean receipts, fees, rentals or other payments to be received on account of any lease, mortgage, conditional sale, or sale and payments and any other income derived from the lease, sale or other disposition of a project, moneys in any reserve and insurance funds or accounts or other funds and accounts and income from the investment thereof, established in connection with the issuance of bonds or notes for a project, and fees, charges or other moneys to be received by the authority with respect to any project or contract.

"Termination of employment" means the layoff of an employee without a commitment to reinstate the employee to his previous employment within six months of the layoff, except that "termination of employment" shall not mean any layoff of a seasonal employee or refer to any situation in which an employer offers to an employee, at a location inside the State and not more than 20 miles from the previous place of employment, the same employment or a position with equivalent status, benefits, pay, and other terms and conditions of employment.

"Termination of operations" means the termination of all or a portion of the operations conducted in an establishment, except for a termination of operations made necessary because of a court order, fire, flood, natural disaster, national emergency, act of war, civil disorder, or industrial sabotage.

"Transfer of operations" means the transfer of all or a portion of the operations conducted in an establishment to another location, inside or outside of this State.

4. a. There is created in the Executive Branch of the State Government a public body corporate and politic, with corporate succession, to be known as the "New Jersey Economic Stabilization Authority." For the purposes of complying with the provisions of Article V, Section IV, paragraph 1 of the New Jersey Constitution, the authority is allocated within the Department of Labor, but notwithstanding this allocation, the commission shall be independent of any supervision or control by the department or by any board or officer thereof. The authority is constituted a public instrumentality and the exercising by the authority of the powers conferred by this act shall be deemed to be the performance of an essential governmental function.

b. The authority shall consist of nine members as follows:

(1) Three representatives of businesses in industries which have been subject to significant plant closings and mass layoffs, one of whom shall be appointed by the Governor with the advice and consent of the Senate, and the two remaining to be appointed by the Governor, one upon the recommendation of the President of the Senate and one upon the recommendation of the Speaker of General Assembly;

(2) Three representatives of local government or community organizations from municipalities which have been subject to significant plant closings and mass layoffs, one of whom shall be appointed by the Governor with the advice and consent of the Senate, and the two remaining to be appointed by the Governor, one upon the recommendation of the President of the Senate and one upon the recommendation of the Speaker of General Assembly; and

(3) Three representatives of labor organizations which represent workers in industries which have been subject to significant plant closings and mass layoffs, one of whom shall be appointed by the Governor with the advice and consent of the Senate, and the two remaining to be appointed by the Governor, one upon the recommendation of the President of the Senate and one upon the recommendation of the Speaker of General Assembly.

c. Not more than five of the nine members appointed by the Governor shall be of the same political party. Not more than two of the three members appointed by the Governor upon the recommendation of the President of the Senate shall be of the same political party. Not more than two of the three members appointed by the Governor upon the recommendation of the Speaker of General Assembly shall be of the same political party. Members of the authority shall be appointed for terms of five years, except that:

(1) Of the three members first appointed by the Governor with the advise and consent of the Senate, one shall be appointed for five years, one shall be appointed for four years and one shall be appointed for three years;

(2) Of the three members first appointed by the Governor upon the recommendation of President of the Senate, one shall be appointed for five years, one shall be appointed for four years and one shall be appointed for three years; and

(3) Of the three members first appointed by the Governor upon the recommendation of the Speaker of General Assembly, one shall be appointed for five years, one shall be appointed for four years and one shall be appointed for three years.

d. Each member shall hold office for the term of appointment and until his successor is appointed and qualified. A member appointed to fill a vacancy occurring in the membership of the board for any reason other than the expiration of the term shall serve for the unexpired term only. All vacancies shall be filled in the same manner as the original appointment. Any member may be removed from office by the Governor, for cause, after a hearing and may be suspended by the Governor pending the completion of the hearing. Members of the authority shall serve without compensation, but shall be reimbursed for necessary expenses incurred in the performance of their duties as members. Action may be taken and motions and resolutions may be adopted by the authority at an authority meeting by an affirmative vote of not less than five members.

e. As soon as practicable, the members of the authority shall select from among themselves a chairperson, vice chairperson and treasurer and shall appoint an executive director of the authority. The executive director shall serve as the secretary and chief executive officer of the authority.

5. The authority shall have the power to:

a. Adopt rules and regulations pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) to effectuate the provisions of this act;

b. Adopt, amend and repeal bylaws for the regulation of its business;

c. Adopt and have a seal;

d. Sue and be sued;

e. Conduct any investigations and public hearings it deems necessary regarding applications for authority assistance or participation;

f. Construct, reconstruct, rehabilitate, improve, alter, equip, maintain, repair or provide for the construction, reconstruction, improvement, alteration, equipping, maintenance or repair of any development property, award and enter into construction contracts, purchase orders and other contracts with respect thereto upon terms and conditions which the authority finds to be reasonable, including, but not limited, to reimbursement for the planning, equipping, furnishing, operation and maintenance of any development property and the settlement of any claims arising therefrom and the establishment and maintenance of reserve funds with respect to the financing of the development property;

g. Enter into contracts, public and private, upon such terms and conditions as it deems reasonable to effectuate the provisions of this act;

h. Acquire, purchase, manage and operate, hold and dispose of real and personal property or interests therein, take assignments of rentals and leases and make and enter into all contracts, leases, agreements and arrangements necessary or incidental to the furtherance of the purposes of this act;

i. Acquire, own, hold, dispose of and encumber personal property of any nature or any interest therein;

j. Acquire real property, or an interest therein, by purchase or foreclosure, if the acquisition is necessary or appropriate to protect or secure any investment or loan in which it has an interest; to sell, transfer and convey the property to a buyer; and to lease the property to a tenant;

k. Acquire, in the name of the authority, lands or other property which it determines is necessary for a project by purchase or otherwise on the terms and conditions and in a manner which it deems appropriate, including, upon consent given by resolution of the governing body of the municipality in which the property is located, by the exercise of eminent domain;

l. Establish and maintain reserve and insurance funds with respect to financing projects and procure insurance against a loss in connection with its property or other assets;

m. Mortgage, pledge or assign or otherwise encumber all or any portion of a project or revenues whenever it finds that action to be in furtherance of the purposes of this act;

n. Grant options to purchase or renew a lease for any of its projects on terms which the authority deems reasonable;

o. Purchase, acquire and take assignments of notes, mortgages and other forms of indebtedness;

p. Purchase, acquire, seize, accept or take title to any project by conveyance or by foreclosure, and sell, lease, manage or operate any project for a use specified in this act;

q. Borrow money and issue bonds of the authority and provide for the rights of the holders thereof as provided in this act;

r. Make loans to or otherwise finance or invest in any qualified project approved to receive authority assistance pursuant to section 7 of this act;

s. Invest any funds not required for immediate disbursement pursuant to subsection c. of section 8 of this act;

t. Employ officers, employees, consultants and agents as may be required in its judgment to effectuate the purposes of this act, and to fix and pay their compensation from available funds;

u. Receive funds and other assistance from non-State sources, including, but not limited to, federal funds;

v. Establish and collect such fees and charges as it deems reasonable; and

w. Do any and all things necessary or convenient to carry out its purposes and exercise the powers granted in this act.

6. The purpose of the authority is, to the extent that available resources permit, to provide the financing and other assistance or participation for any qualified project necessary to implement a transfer of ownership, corporate restructuring or turnaround plan for an economically viable, but troubled, industrial facility or enterprise facing a substantial likelihood of experiencing a large employment loss, closure or failure without the assistance or participation. The purpose of the assistance provided by the authority shall be to supplement the participation of private investors or lenders or other public agencies in cases where those investors, lenders or agencies are not able or willing to provide all of the assistance or to assume all of the risk necessary to implement the transfer, restructuring or plan. In financing or otherwise assisting or participating in a project to carry out this purpose, the authority shall be deemed to be investing, not solely on the basis of the direct financial return on its investment, but also in order to reduce the social costs of a large employment loss, plant closure or business failure and to obtain for the State the benefits derived from the continued operation of the facility or enterprise. The authority shall work in cooperation with the advisory board to solicit and coordinate assistance from public agencies for qualified projects.

To better enable the authority to make assistance available at an early enough time to be effective, the authority shall also work in cooperation with interested businesses, labor organizations, public agencies and other entities to collect relevant information regarding developments in the State's economy and to establish and foster early warning networks to identify industries and businesses likely at future times to experience large losses in employment or plant closures.

7. a. Any person seeking authority financing or other assistance or participation for a project to implement a change in ownership, corporate restructuring or turnaround plan for a facility or enterprise shall submit an application to the authority in a form and manner prescribed in regulations adopted by the authority along with an application fee to be determined by the authority. A valid application shall contain:

(1) An evaluation of the present situation of the facility or enterprise and the potential for improvement with regard to its financial assets and liabilities, the quality of its management and workforce, the competitiveness of its plant and equipment, and the markets for its products;

(2) A business plan to make the needed improvements;

(3) An estimate of the number of permanent jobs that will be created or retained because of the project; and

(4) Any other information which the authority deems appropriate.

The authority may, in its discretion, provide whatever assistance it deems appropriate for the preparation of the evaluation or business plan.

b. The authority shall not deem a project to be qualified to receive authority assistance or participation unless the authority determines, based on its review of the application and on any additional investigation it conducts and upon consultation with the advisory board following the review of the application by the advisory board, that:

(1) The facility or enterprise has been subject to, or is faced with substantial likelihood of, a large employment loss, closure or failure without the assistance or participation;

(2) The facility or enterprise is economically viable and the proposed business plan and estimate of employment to be created or retained are sound;

(3) The applicant, without authority assistance, is unable to find private investors or lenders, or public agencies to provide the assistance or assume the risk necessary to prevent the loss, closure or failure;

(4) The applicant has made what the authority deems to be an adequate financial and time commitment to the project or is obligated to do so; and

(5) The applicant is willing to make, prior to the commencement of any authority assistance or other participation, binding commitments with the authority:

(a) For adequate reporting of financial data to the authority, which shall include a requirement for an audit of the applicant's books at least once each year;

(b) That the number of jobs created or retained because of the project shall be consistent with the estimate provided, unless that is not possible because of circumstances which the authority determines to have been unforeseeable and beyond the control of the applicant;

(d) That any collective bargaining unit representing the employees at the facility or enterprise will continue to be recognized;

(e) That any collective bargaining agreement in effect when the application is submitted shall be continued for the duration of the agreement;

(f) That the assistance will not be used to relocate a facility unless the assistance is to be used for the expansion of the facility and it is not feasible to expand the facility at its present location, in which case the facility shall not be moved to a location more than 20 miles from its previous location and the applicant shall offer to continue the employment of the workers employed at the previous location; and

(g) That the authority shall have sufficient contractual rights as the authority shall deem prudent to protect the investment of the authority and such contractual rights as are necessary to guarantee compliance with the requirements of this subsection b., including such penalties as the authority deems appropriate.

c. In determining which qualified projects to assist, the authority shall give priority to those projects which have the greatest likelihood of maintaining or creating the largest number of jobs relative to the amount of assistance provided by the authority.

d. If the project involves a transfer of ownership of the facility or enterprise, the authority shall:

(1) Inform the employees of the facility or enterprise of their opportunity to purchase the facility or enterprise and of any assistance for the purchase to which they are entitled;

(2) Give priority to effectuating the sale of the facility or enterprise to the employees or to a person located within the State, except when doing so will conflict with the provisions of subsection c. of this section; and

(3) Provide employees of the facility or enterprise who are considering participation in an ESOP with:

(a) All information available to the authority concerning the economic viability of the facility or enterprise and the soundness of the proposed business plan; and

(b) Technical assistance in evaluating the ESOP, including the fairness of any proposed valuation formula for shares in the ESOP and the effectiveness of proposed mechanisms to provide employee representation in the ESOP decision-making process and the operation of the facility or enterprise.

8. a. There is established the Economic Stabilization Fund, a special depository fund into which shall be deposited moneys to be used for carrying out the purposes of this act. The authority shall hold and account for the fund, which shall be continuing and nonlapsing. Moneys deposited into the fund shall include, but not be limited to:

(1) Proceeds from the sale of bonds authorized by the authority to effectuate the purposes of this act;

(2) Appropriations made by the Legislature to effectuate the purposes of this act;

(3) Loan repayments, dividends, returns on capital gains or other payments received in connection with loans, investments or other assistance provided pursuant to this act by the authority;

(4) Interest or other income derived from investments of moneys in the fund made pursuant to subsection c. of this section;

(5) Fees collected from applicants; and

(6) Other moneys made available to effectuate the purposes of this act.

b. The authority is authorized to use moneys deposited in the fund expressly for the purposes specified in and according to the procedures established by this act.

c. Moneys in the fund which are determined by the executive director not to be needed for immediate disbursement by the fund may be invested in any direct obligations as to which the principal and interest thereof is guaranteed by the United States of America or any other obligation deemed appropriate by the authority.

9. a. There is established in the Department of Labor, an Economic Stabilization Advisory Board. The board shall have fifteen members as follows: the Commissioner of Commerce and Economic Development, the Commissioner of Labor, the Commissioner of Community Affairs, the Executive Director of the New Jersey Economic Development Authority, the Executive Director of the New Jersey Commission on Science and Technology, the Executive Director of the State Employment and Training Commission, each of whom shall serve ex officio; and nine members appointed by the Governor with the advice and consent of the Senate for terms of five years, except that of the nine members first appointed by the Governor, three shall be appointed for five years, three shall be appointed for three years, and three shall be appointed for two years. Not more than five of the members appointed by the Governor shall be of the same political party. The members appointed by the Governor shall include two individuals with experience in analyzing the potential markets for and the technological feasibility of industrial projects, two individuals with investment or financial experience related to the development of industrial projects, two individuals with experience in the management of industrial facilities, and three individuals with expertise in the social, psychological and economic impacts and costs of plant closings and mass layoffs. Each member shall hold office for the term of appointment and until his successor is appointed and qualified. A member appointed to fill a vacancy occurring in the membership of the board for any reason other than the expiration of the term shall have a term of appointment for the unexpired term only. All vacancies shall be filled in the same manner as the original appointment. Any member may be removed from office by the Governor, for cause, after a hearing and may be suspended by the Governor pending the completion of the hearing. Members of the board shall serve without compensation, but shall be reimbursed for necessary expenses incurred in the performance of their duties as members. Action may be taken and motions and resolutions may be adopted by the board at a board meeting by an affirmative vote of not less than eight members. As soon as practicable, the members of the board shall select from among themselves a chairperson, vice chairperson and treasurer.

b. The advisory board shall:

(1) Review any application made to the authority under the provisions of this act and advise the authority concerning the application;

(2) Ensure that any project receiving authority assistance or participation and any municipality in which the project is located are provided with whatever assistance is available from public agencies represented by, or under the control or direction of, any board member and cooperate with the authority in coordinating any assistance so provided; and

(3) Study and make recommendations concerning the activities which the authority undertakes to implement the purposes of this act.

10. The authority shall adopt rules and regulations requiring that not less than the prevailing wage rate be paid to workers employed in the performance of construction contracts undertaken in connection with authority assistance. The prevailing wage rate shall be the rate determined by the Commissioner of Labor pursuant to the provisions of P.L.1963, c.150 (C.34:11-56.25 et seq.).

The rules and regulations adopted pursuant to this section shall provide for the proper and appropriate administration and enforcement of the regulations, and for the coverage and exemptions, if any, of the rules and regulations, which the authority may determine are appropriate and consistent with its public purpose and the purpose of this act.

A violation of the rules and regulations adopted pursuant to this section shall be deemed to be a violation of P.L.1963, c.150 (C.34:11-56.25 et seq.). The Commissioner of Labor and any worker shall have the same powers of enforcement against violations of these rules and regulations as are provided by sections 11 through 16 of P.L.1963, c.150 (C.34:11-56.35 through 34:11-56.40).

11. The authority shall adopt rules and regulations to establish an affirmative action program for the hiring of minority workers employed in the performance of construction contracts undertaken in connection with authority assistance, consistent with the provisions of the "Law Against Discrimination," P.L.1945, c.169 (C.10:5-1 et seq.) and the authority shall provide for the proper enforcement and administration of these rules and regulations.

12. The authority shall have the power to make reasonable regulations for the installation, construction, maintenance, repair, renewal, relocation, and removal of tracts, pipes, mains, conduits, cables wires, towers, poles and other equipment and appliances herein called "public utility facilities" of any public utility, as defined in R.S.48:2-13, in, on, along, over or under any project.

Whenever the authority determines that it is necessary that any public utility facilities which now are, or hereafter may be, located in, on, along, over or under any project, should be relocated, or should be removed from the project, the public utility owning or operating the facilities shall relocate or remove them in accordance with an order of the authority. The cost and expense of the relocation or removal, including the cost of installing facilities in a new location or new locations, and the cost of any lands, or any rights or interests in lands, and any other rights acquired to accomplish the relocation or removal, less the cost of any lands or any rights of the public utility paid to the public utility in connection with the relocation or removal of the property, shall be ascertained and paid by the authority as a part of the cost of the project. In any case of a relocation or removal of facilities, the public utility owning or operating the facilities, its successors or assignees, may maintain and operate the facilities, with the necessary appurtenances, in the new location or locations, for as long a period, and upon the same terms and conditions, as it had the right to maintain and operate the facilities in their former location or locations.

13. By resolution, the authority shall have power to incur indebtedness, borrow money and issue its bonds for the purposes of providing funds:

a. To pay all or any part of the cost of any project or projects;

b. To make loans in accordance with the provisions of this act; and

c. For the funding or refunding of any bonds.

Except as may otherwise be expressly provided by the authority, every issue of its bonds shall be general obligations of the authority payable from any revenues or moneys of the authority, subject only to any agreements with the holders of particular bonds or notes pledging any particular revenues or moneys. The bonds shall be authorized by resolution and may be issued in one or more series and shall bear the date or dates, mature at the time or times not exceeding 40 years from the date thereof, bear interest at a rate or rates, be in the denomination or denominations, be in the form, either coupon or registered, carry conversions or registration privileges, have rank or priority, be executed in the manner, be payable from the sources in the medium of payment at the place or places within or without the State, and be subject to the terms of redemption, with or without premium, which the resolution may provide. Bonds of the authority may be sold by the authority at public or private sale at the price or prices which the authority shall determine.

14. Neither the members of the authority nor any person executing bonds issued pursuant to this act shall be liable personally on the bonds by reason of the issuance thereof. Bonds and notes of the authority issued under the provisions of this act shall not be in any way a debt or liability of the State or of any political subdivision thereof or be or constitute a pledge of the faith and credit of the State or of any political subdivision thereof but all bonds and notes, unless funded or refunded by the bonds or notes of the authority, shall be payable solely from revenues or funds pledged or available for their payment as authorized in this act. Each bond and note shall contain on its face a statement to the effect that the authority is obligated to pay the principal thereof or the interest thereon only from revenues or funds of the agency and that neither the State nor any political subdivision thereof is obligated to pay the principal or interest and that neither the faith and credit nor the taxing power of the State or any political subdivision thereof is pledged to the payment of the principal of or the interest on the bonds or notes.

15. Any bond or other obligation issued by the authority pursuant to this act shall be fully negotiable within the meaning and for all purposes of Title 12A of the New Jersey Statutes, and each holder or owner of the bond or other obligation, or of any coupon appurtenant thereto, by accepting the bond or coupon shall be conclusively deemed to have agreed that the bond, obligation or coupon is and shall be fully negotiable.

16. In order to secure the payment of the bonds and in addition to its other powers, the authority shall have power by resolution to covenant and agree with the holders of the bonds, as to:

a. The custody, security, use, expenditure or application of the proceeds of the bonds;

b. The payment of the principal of or interest on the bonds, or any other obligations, and the sources and methods thereof, the rank of priority of any bonds or obligations as to any lien or security, or the acceleration of the maturity of any bonds or obligations;

c. The use and disposition of any moneys of the authority, including all revenues or other moneys derived from any project or projects;

d. The pledging, setting aside, depositing or placing in trust all or any part of the revenues or other moneys of the authority to secure the payment of the principal of or interest on the bonds or any other obligations and the powers and duties of any trustee with regard thereto;

e. The setting aside out of the revenues or other moneys of the authority of reserves and sinking funds, and the source, custody, security, regulation, application and disposition thereof;

f. The rents, fees or other charges for the use of any project or projects, including any parts, replacements or improvements thereof whenever constructed or acquired, and the fixing, establishment, collection and enforcement of them;

g. The limitation on the issuance of additional bonds or any other obligations or on the incurrence of indebtedness of the authority;

h. Vesting in a trustee or trustees, fiscal or escrow agent or agents within or without the State property, rights, powers and duties in trust which the authority determines and limiting the rights, duties and powers of the trustee or agent;

i. The payment of costs or expenses incident to the enforcement of the bonds or of the provisions of the resolution or of any covenant or contract with the holders of the bonds;

j. The procedure, if any, by which the terms of any covenant or contract with, or duty to, the holders of bonds may be amended or abrogated, the amount of bonds the holders of which must consent thereto, and the manner in which consent may be given or evidenced; or

k. Any other matter or course of conduct which, by recital in the resolution, is declared to further secure payment of the principal of or interest on the bonds.

All provisions of the resolution and all covenants and agreements shall constitute valid and legally binding contracts between the authority and the holders of the bonds, regardless of the time of issuance of the bonds, and shall be enforceable by any holder or holders by appropriate action, suit or proceeding in any court of competent jurisdiction, or by proceeding in lieu of prerogative writ.

17. Any pledge of revenues or other moneys made by the authority shall be valid and binding from the time when the pledge is made. The revenues or other moneys so pledged and thereafter received by the authority shall immediately be subject to the lien of the pledge without any physical delivery thereof or further act, and the lien of any pledge shall be valid and binding as against the authority, irrespective of whether the parties have notice thereof. The resolution or any other instrument by which a pledge is created need not be filed or recorded except in the records of the authority.

18. Notwithstanding the provisions of any other law to the contrary, the State, its political subdivisions, agencies and instrumentalities and their officers, boards, commissioners, departments, any trust company, State or federally chartered bank, savings bank, savings and loan association, investment company, or insurance company, all executors, administrators, guardians and fiduciaries, and all other persons whoever now are or may hereafter be authorized to invest in bonds or other obligations of the State, may legally invest funds belonging to them or within their control in bonds or notes issued by the authority pursuant to the provisions of this act. These bonds and notes are securities which may properly and legally be deposited with and received by any State or municipal officer or agency of the State for any purpose for which the deposit of bonds or other obligations of the State is now or may hereafter be authorized by law.

19. The exercise by the authority of the powers granted by this act shall constitute the performance of an essential governmental function and the authority shall not be required to pay any taxes or assessments upon or in respect of a project, or any property or moneys of the authority, and the authority, its projects, property and moneys and any bonds and notes issued under the provisions of this act, their transfer and the income therefrom, including any profit made on the sale thereof, shall at all times be free from taxation of every kind by the State, except for transfer, inheritance and estate taxes, and by any political subdivision of the State; but any person occupying a project whether as a lessee, vendee or otherwise shall, as long as title thereto shall remain in the authority, pay to the political subdivision in which the project is located a payment in lieu of taxes which shall equal the taxes on real and personal property, including water and sewer service charges or assessments, which the person would have been required to pay had it been the owner of the property during the period for which payment is made and neither the authority or its projects, properties, money or bonds and notes shall be obligated, liable or subject to a lien of any kind for the enforcement, collection or payment thereof. If, and to the extent the proceedings under which the bonds authorized to be issued under the provisions of this act so provide, the authority may agree to cooperate with the person occupying a project, in connection with any administrative or judicial proceedings for determining the validity or amount of the payments and may agree to appoint or designate and reserve the right in and for the person to take all action which the authority may lawfully take in respect to the payments and all matters relating thereto, if the person shall bear and pay all costs and expenses of the authority thereby incurred at the request of the person or by reason of any action taken by the person in behalf of the authority. Notwithstanding any other law to the contrary, if the person occupying a project has paid the amounts in lieu of taxes required by this section to be paid, the person shall not be required to pay any taxes as to which a payment in lieu thereof has been made to the State or to any political subdivision.

20. The governing bodies of any municipalities, within which is located or is to be located an authority project situated in part within each municipality, may, by reciprocal ordinances, enter into an agreement with each other to share all tax revenues, payments in lieu of taxes or other revenues which shall be derived from the entire project, and to which they are by law entitled, in any proportion which they deem proper. The agreement shall set forth the manner which the costs of municipal services to the project are to be apportioned and specify the services to be supplied by each municipality in sufficient detail so as to permit the owners, occupants and users of property within the project to determine the responsibilities of each member municipality.

21. All property of the authority shall be exempt from levy and sale by virtue of an execution and no execution or other judicial process shall issue against the property nor shall any judgment against the authority be a charge or lien upon its property, but nothing herein contained shall apply to or limit the rights of the holder of any bonds to pursue any remedy for the enforcement of any pledge or lien given by the authority on or with respect to any project or any revenues or other moneys.

22. The authority shall annually submit copies of a complete and detailed report of the authority's activities, within ninety days after the end of each fiscal year, to the Governor and the Legislature. The report shall include all of the projects involving authority assistance or participation, the number of jobs created or retained, and the fiscal benefits to the State and its instrumentalities in the form of tax revenues generated and social welfare expenditures avoided as a result of the authority's activities.

23. If an establishment is subject to a transfer of operations or a termination of operations which results, during any continuous period of not more than 180 days, in the termination of employment of 50 or more employees, the employer who operates the establishment shall:

a. Provide, not less than 270 days before the first termination of employment occurs in connection with the termination or transfer of operations, notification of the termination or transfer of operations to the Commissioner of Labor, the executive director of the authority, the municipal officers of the municipality where the establishment is located, each employee whose employment is to be terminated and any collective bargaining unit or units of employees at the establishment;

b. Provide to each employee whose employment is terminated and to whom the employer provides less than the 270 days of notification required pursuant to subsection a. of this section, severance pay for the amount of time less than 270 days for which advanced notification is provided. The rate of severance pay provided by the employer pursuant to this subsection b. shall be one-half of the average regular rate of compensation received during the employee's last three years of employment with the employer or one-half of the final regular rate of compensation paid to the employee, whichever rate is higher. The severance pay provided by the employer pursuant this subsection b. shall be in addition to any severance pay provided by the employer pursuant to a collective bargaining agreement or for any other reason, except that any back pay provided by the employer to the employee pursuant to section 5 of the "Worker Adjustment and Retraining Notification Act," Pub.L.100-379 (29 U.S.C. §2104), because of a violation of section 3 of that act shall be credited towards meeting the severance pay requirements of this subsection b.;

c. Provide to each employee whose employment is terminated the continuation, for a period of six months commencing upon the date of the termination of employment, of any health insurance or group life insurance benefits which were in effect at the time that notification was required pursuant to subsection a. of this section, including, but not limited to, medical benefits, hospital benefits, dental benefits and prescription benefits. The continued benefits shall cease upon the full-time reemployment of the employee, who shall notify the provider of the benefits of the reemployment. Any employer required to provide a continuation of benefits pursuant to this subsection shall, within five days following the date upon which the employer is required to notify the employee pursuant to subsection a. of this section, deposit with the State Treasurer an amount equivalent to the premiums attributable to the continued benefits. The State Treasurer shall use the amount deposited to pay premiums for the continued benefits or to reimburse the employer if the benefits are discontinued pursuant to law; and

d. Provide the response team, during the seven calendar days immediately following the notification required pursuant to subsection a. of this section, with the amount of on-site work-time access to the employees of the establishment that the response team determines is necessary for the response team to carry out its responsibilities pursuant to section 26 of this act.

24. The notification provided pursuant to subsection a. of section 23 of this act shall include:

a. A statement of the number of employees whose employment will be terminated in connection with the transfer or termination of operations of the establishment, the date or dates on which the transfer or termination of operations and each termination of employment will occur;

b. A statement of the reasons for the transfer or termination of operations;

c. A statement of any employment available to employees at any other establishment operated by the employer, and information regarding the benefits, pay, and other terms and conditions of that employment and the location of the other establishment;

d. A statement of any employee rights with respect to wages, severance pay, benefits, pension or other terms of employment as they relate to the termination, including, but not limited to, any rights based on a collective bargaining agreement or other existing employer policy;

e. A disclosure of the amount of the severance pay which is payable pursuant to the provisions of subsection b. of section 23 of this act;

f. A statement of the continued health insurance or group life insurance benefits to which employees are entitled pursuant to the provisions of subsection c. of section 23 of this act; and

g. A statement of the employees' right to receive from the response team, pursuant to subsection d. of section 23 of this act, information, referral and counseling regarding: public programs which may make it possible to delay or prevent the transfer or termination of operations; public programs and benefits to assist the employees; and employee rights based on law.

The notification shall be in writing and, after the Commissioner of Labor has made a form for the notification available to employers, provided on that form. The commissioner shall make the form available to employers not more than 90 days following the effective date of this act.

25. This act shall not be construed as limiting or modifying any provision of a collective bargaining agreement which requires notification, severance payment or other benefits on terms which are more favorable to employees than those required by this act.

26. a. There is established, in the Department of Labor, a plant closing response team. The purpose of the response team is to provide appropriate information, referral and counseling, as rapidly as possible, to workers who are subject to plant closings or mass layoffs. In the case of each transfer or termination of the operations in an establishment which results in the termination of 50 or more employees, the response team shall:

(1) Offer to meet with the representatives of the management of the establishment to discuss available public programs which may make it possible to delay or prevent the transfer or termination of operations, including the New Jersey Economic Stabilization Authority;

(2) Meet on-site with workers during the seven calendar days immediately following the notification required pursuant to subsection a. of section 23 of this act and provide information, referral and counseling regarding:

(a) Available public programs which may make it possible to delay or prevent the transfer or termination of operations, including the New Jersey Economic Stabilization Authority;

(b) Public programs or benefits which may be available to assist the employees, including, but not limited to, unemployment compensation benefits, job training or retraining programs, and job search assistance; and

(c) Employee rights based on this act or any other law which applies to the employees with respect to wages, severance pay, benefits, pensions or other terms of employment as they relate to the termination of employment; and

(3) Seek to facilitate cooperation between representatives of the management and employees at the establishment to most effectively utilize available public programs which may make it possible to delay or prevent the transfer or termination of operations or to assist employees if it is not possible prevent the termination.

b. The response team shall investigate any transfer or termination of operations in an establishment upon the request of any employee who may be affected by the transfer or termination or representative of the employee to determine whether the transfer or termination is subject to the provisions of this act.

27. An aggrieved employee or former employee or his authorized representative may file a complaint with the department or initiate suit in Superior Court under this act either individually or on behalf of employees or former employees affected by a violation of the provisions of this act. If an action is undertaken on behalf of affected employees or former employees, the party initiating the action shall inform the department, which shall notify each affected employee or former employee. If the department or the court finds the employer has violated the provisions of this act, it shall award to the aggrieved present or former employee or employees: costs of the action, including reasonable attorneys' fees; compensatory damages, including lost wages, benefits and other remuneration. Any award of compensatory damages for lost wages shall be limited to the amount of severance pay required pursuant to subsection b. of section 23 of this act and any award of compensatory damages for lost health or life insurance benefits shall be limited to the amount of benefits required pursuant to subsection c. of section 23 of this act.

28. There is appropriated $5,000,000 from the General Fund to the New Jersey Economic Stabilization Authority to implement the purposes of this act.

29. This act shall take effect immediately.

STATEMENT

This bill establishes a New Jersey Economic Stabilization Authority. The purpose of the authority is to provide financing and other assistance or participation necessary to implement transfers of ownership, corporate restructuring or turnaround plans for economically viable, but troubled, industrial facilities or enterprises likely to experience large employment losses, closures or failures without authority involvement.

To better enable it to make assistance available at an early enough time to be effective, the authority is also directed to work with interested businesses, public agencies and labor organizations to monitor relevant developments in the State's economy.

The authority is required, in selecting projects to assist, to give first priority to those which will retain or create the most permanent jobs compared to the amount of assistance. If a project involves a transfer of ownership, the authority would be required to give second priority to the sale of the facility or enterprise to an in-State buyer.

The applicant would be required to make binding commitments with the authority to make any retained jobs available to the existing workforce, continue any collective bargaining agreement for its duration, protect the authority's investment and guarantee compliance with other requirements of the bill.

The authority is comprised of members representing businesses, labor organizations and local communities related to industries impacted by significant plant closings and mass layoffs. Technical support would be provided by an advisory board comprised of relevant experts and State officials. The advisory board would also help the authority to solicit and coordinate assistance from State agencies.

The bill gives the authority the same powers as the New Jersey Economic Development Authority and appropriates $5 million to the authority.

The bill also requires prenotification for certain anticipated plant closings and mass layoffs in order to provide the time needed to prevent avoidable closings of viable plants, and, if a closing is unavoidable, to help workers to effectively utilize the services needed to make a timely transition to new employment or occupations.

The bill requires that in a plant closing or mass layoff involving the permanent layoff of 50 or more employees, the employer is required to provide:

1. A notice, nine months in advance, of the closing or mass layoff to the Commissioner of Labor, the executive director of the authority, the local municipality, the employees and their representatives;

2. If the required prenotification is not given, one week's worth of severance pay to the terminated employees for each two weeks that the prenotification is short of the total required amount of time. This severance pay would be in addition to any severance pay provided by the employer for any other reason, except that payments imposed on the employer because of a violation of federal prenotification standards would be credited towards meeting this bill's severance pay requirements; and

3. The continuation of health and life insurance for six months following termination.

The bill establishes a plant closing response team in the Department of Labor to provide counseling, referral and other appropriate services, as rapidly as possible, to workers who are subject to plant closings or mass layoffs.

"Economic Stabilization Act;" establishes New Jersey Economic Stabilization Authority, requires prenotification of plant closings and appropriates $5 million.