ASSEMBLY COMMERCE AND MILITARY AND VETERANS' AFFAIRS COMMITTEE

STATEMENT TO

ASSEMBLY, No. 1251

STATE OF NEW JERSEY

DATED: JANUARY 29, 1996

      The Assembly Commerce and Military and Veterans' Affairs Committee reports favorably Assembly Bill No. 1251.

      As reported, the bill authorizes the Department of the Treasury to establish a State-sponsored affinity card program. It requires the Treasurer, within six months of the effective date of the act, to determine which financial institutions in the State could participate as an issuer of affinity cards and to send to them a request for proposal regarding a New Jersey affinity card program. Based on responses to the Treasurer's request for proposal, if the Treasurer determines that it is feasible for the State to sponsor an affinity card, the Treasurer is authorized to enter into a contract with a financial institution to be the issuer of the State-sponsored affinity card and to negotiate the most favorable rate for the State's fees. The bill also requires that fees raised by the State through its participation in a State-sponsored card program are to be deposited with the State Treasurer for use by the New Jersey Economic Development Authority to purchase stock in the export financing company which would be established pursuant to the "Export Financing Opportunities Act," P.L.1995, c.209 (C.34:1B-93 et seq.), until such time that the State Treasurer determines that the authority and other public entities have purchased 49% of the outstanding stock of the export financing company. After that determination is made, the moneys received from fees collected through usage of the affinity card will be made available to the Economic Development Authority for other economic development purposes.

      This bill was pre-filed for introduction in the 1996 session pending technical review. As reported, the bill includes the changes required by technical review which has been performed.