SENATE, No. 867
STATE OF NEW JERSEY
INTRODUCED FEBRUARY 26, 1996
By Senator SCHLUTER
An Act requiring disclosure of certain information in connection with development applications and amending P.L.1977, c.336.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 1 of P.L.1977, c.336 (C.40:55D-48.1) is amended to read as follows:
1. [A corporation or partnership applying] a. An applicant, other than an applicant described in subsection b. of this section, submitting an application for development to a planning board or a board of adjustment or to the governing body of a municipality [for permission to subdivide a parcel of land into six or more lots, or applying for a variance to construct a multiple dwelling of 25 or more family units or for approval of a site to be used for commercial purposes] shall list the [names and addresses of all stockholders or individual partners owning at least 10% of its stock of any class or at least 10% of the interest in the partnership, as the case may be] name and address of the legal or beneficial owner or owners of the property which is the subject of the application for development, including the holder of an option or contract to purchase, or other person having an enforceable proprietary interest in the land, including a leasehold interest.
b. If the applicant is a corporation or other business entity which is a publicly traded company, the applicant shall list the names and addresses of all stockholders or owners of at least 10 percent of its stock or at least 10 percent of the interest in the entity, as the case may be.
(cf: P.L.1977, c.336, s.1)
2. Section 2 of P.L.1977, c.336 (C.40:55D-48.2) is amended to read as follows:
2. [If a corporation or partnership owns 10% or more of the stock of a corporation, or 10% or greater interest in a partnership, subject to disclosure pursuant to section 1 of this act, that corporation or partnership shall list the names and addresses of its stockholders holding 10% or more of its stock or of 10% or greater interest in the partnership, as the case may be, and this requirement] a. The disclosure requirements set forth in subsection a. of section 1 of P.L.1977, c.336 (C.40:55D-48.1) shall be followed by every [corporate stockholder or partner in a partnership] applicant and every corporation, or other business entity or individual with a legal or beneficial ownership interest in the development, until the names and addresses of [the noncorporate stockholders and individual partners, exceeding the 10% ownership criterion established in this act,]those applicants, corporations, business entities and individuals having a legal or beneficial ownership interest in the development have been listed.
b. The disclosure requirements set forth in subsection b. of section 1 of P.L.1977, c.336 (C.40:55D-48.1) shall be followed by every corporation or other business entity owner of the applicant until the names and addresses of the individuals holding 10 percent or more ownership of the corporation or other business entity, as established pursuant to subsection b., have been listed.
(cf: P.L.1977, c.336, s.2)
3. Section 3 of P.L.1977, c.336 (C.40:55D-48.3) is amended to read as follows:
3. No planning board, board of adjustment or municipal governing body shall approve the application of any [corporation or partnership] applicant which does not comply with [this act] the provisions of section 1 of P.L.1977, c.336 (C.40:55D-48.1).
(cf: P.L.1977, c.336, s.3)
4. Section 4 of P.L.1977, c.336 (C.40:55D-48.4) is amended to read as follows:
4. Any [corporation or partnership which conceals the names of the stockholders owning 10% or more of its stock, or of the individual partners owning a 10% or greater interest in the partnership, as the case may be,]applicant subject to the disclosure requirements set forth in section 1 of P.L.1977 c.336 (C.40:55D-48.1) who does not comply with the provisions of that section shall be subject to a fine of $1,000.00 to $10,000.00 which shall be recovered in the name of the municipality in any court of record in the State in a summary manner pursuant to "The Penalty Enforcement Law" (N.J.S. 2A:58-1 et seq.).
(cf: P.L.1977, c.336, s.4)
5. This act shall take effect immediately and shall apply to any applicant who has submitted an application for development which has not received final approval as of the effective date of this act.
STATEMENT
This bill would broaden the disclosure requirement under the "Municipal Land Use Law," P.L.1975, c.291 (C.40:55D-1 et seq.). Under current law, a corporation or partnership applying to a planning or zoning board for permission to subdivide a parcel of land into six or more lots or applying for a variance to construct a multiple dwelling of 25 or more family units or for approval of a site to be used for commercial purposes is required to list the names and addresses of all stockholders or individual partners owning at least 10 percent of its stock.
This bill would require any applicant for approval under P.L.1975, c.291 to disclose the name of any legal or beneficial owner of any property which is the subject of an application for development, including the holder of an option or contract to purchase, or other person having an enforceable proprietary interest in the land, including a leasehold interest, under certain circumstances. In the case of a publicly traded company, the ownership requirement would be limited to all stockholders or individual partners owning at least 10 percent of the company's stock of any class or at least 10 percent of the interest in the partnership, assuming that with publicly traded companies, it is not always possible to identify every stockholder. For every other company, however, the disclosure requirement would apply to every owner, including the holder of an option or contract to purchase, or other person having an enforceable proprietary interest, including a leasehold interest.
Broadens disclosure requirements under "Municipal Land Use Law."