ASSEMBLY COMMERCE AND MILITARY AND VETERANS' AFFAIRS COMMITTEE

 

STATEMENT TO

 

ASSEMBLY, No. 1583

 

STATE OF NEW JERSEY

 

DATED: APRIL 1, 1996

 

 

      The Assembly Commerce and Military and Veterans' Affairs Committee reports favorably Assembly Bill No.1583.

      As reported, this bill amends the "Permit Extension Act," P.L.1992, c.82 (C.40:55D-130 et seq.) to clarify the provisions of the act so that it is understood to apply only to regulatory actions taken by various governmental entities and to not apply to those situations in which the government acts in a nonregulatory, proprietary capacity.

      The committee concurs with the view that the Permit Extension Act was intended to extend only regulatory approvals issued by various governmental entities and was never intended to apply to situations in which governmental entities enter into non-regulatory agreements.

      Many government departments and agencies enter into agreements or grant approvals that are not regulatory in nature. For example, the New Jersey Economic Development Authority (EDA) has no regulatory functions but does function in a proprietary manner to foster economic development by entering into contracts and agreements with various private entities. A mandatory extension of those contracts and agreements to December 31, 1996 would nullify contract rights held by the EDA and would render it ineffective in its mission to the detriment of the public interest.

      As reported, the bill includes a "retroactivity" provision which is designed to reflect the Legislature's view of the original intent of the bill. It is the sense of the committee that while the bill may provide guidance to the courts, it is not intended to interfere with or be dispositive of any pending litigation inasmuch as the committee recognizes the primacy of the courts in construing statutory language.