ASSEMBLY COMMERCE AND MILITARY AND VETERANS' AFFAIRS COMMITTEE

STATEMENT TO

ASSEMBLY, No. 2686

STATE OF NEW JERSEY

DATED: FEBRUARY 3, 1997

      The Assembly Commerce and Military and Veterans' Affairs Committee reports favorably Assembly Bill No. 2686.

      As reported, this bill establishes the "Local-State Business Incentive Promotion Program" within the New Jersey Economic Development Authority (EDA) in order to assist counties and municipalities with plans to retain existing businesses or attract new businesses. The plans to be submitted by counties and municipalities to the EDA may be eligible for funding with loans or grants from the "Local-State Business Incentive Promotion Fund," administered by the EDA to assist local governments in their efforts to stimulate new business development and retain existing business.

      Such plans could include the development of transportation services, parking facilities or other types of investments needed to assist local business retention and attraction efforts, the promotion of environmental, quality of life and public safety projects to make an area more conducive for existing business to expand and to attract new business to an area, and the acquisition of buildings and real property needed to retain businesses or to attract businesses to locate within the area.

      The program is intended to complement existing business development programs such as the "Business Employment Incentive Program Act," P.L.1996, c.26 (C.34:1B-124 et seq.) and the "Business Relocation Assistance Act," P.L.1996, c.25 (C.34:1B-112 et seq.).

      The bill directs the EDA to establish the Local-State Business Incentive Promotion Fund to provide loans and incentive grants to counties and municipalities to implement plans to retain existing business and to attract new business. The incentive grants shall be provided by the authority on a matching fund basis with $1 coming from outside sources for every $2 coming from the program.

      The bill requires the EDA to report to the Governor and the Legislature on the effectiveness of the program within two years following the effective date of the bill and every third year thereafter and to recommend legislation to improve the operation of the program. In that regard, the authority and the department shall seek the input of county economic development offices.