SENATE NATURAL RESOURCES AND ECONOMIC DEVELOPMENT COMMITTEE

STATEMENT TO

SENATE, No. 106

with committee amendments

STATE OF NEW JERSEY

DATED: JUNE 24, 1996

      The Senate Natural Resources and Economic Development Committee favorably reports Senate Bill No. 106 with committee amendments.

      This bill establishes a pinelands enterprise zones pilot program to facilitate business and job attraction and retention within the pinelands area.

      The New Jersey Urban Enterprise Zone Authority is required to designate sites for the location of pinelands enterprise zones, and is thereafter required to promote the development of the pinelands enterprise zones pilot program, after consultation with the Division of Economic Development in the Department of Commerce and Economic Development and the Pinelands Commission, for the purpose of attracting new businesses and jobs and retaining existing businesses and jobs within the zones through the use of awards, credits and incentives provided pursuant to the existing urban enterprise zone program.

      Within two years following designation of the sites pursuant to the act, after consultation with the Division of Economic Development and the Pinelands Commission, the authority shall report to the Governor and the Legislature on the success of the pilot program and shall include the cost of the program, the number of businesses assisted by the program, the number of new jobs created under the program, and any recommendations regarding the need for legislation to adopt the pinelands enterprise zones program on a permanent basis.

      The bill also appropriates $100,000 to the New Jersey Urban Enterprise Zone Authority to effectuate the provisions of the act.

      The committee amendments would limit eligibility for designation as a pinelands enterprise zone to Hammonton and Egg Harbor City. The amendments also require the New Jersey Urban Enterprise Zone Authority to consult with the Division of Economic Development in the Department of Commerce and Economic Development and the Pinelands Commission prior to designating areas for pilot program participation. The bill already requires such consultation in connection with the promotion of enterprise zones and the issuance of the report to the Governor and Legislature required pursuant to sections 2 and 3 of the bill, respectively.

      This bill was pre-filed for introduction in the 1996-1997 session pending technical review. As reported, the bill includes the changes required by technical review which has been performed.