SENATE BUDGET AND APPROPRIATIONS COMMITTEE

STATEMENT TO

SENATE COMMITTEE SUBSTITUTE FOR

SENATE, No. 1553

STATE OF NEW JERSEY

DATED: JANUARY 27, 1997

      The Senate Budget and Appropriations Committee reports favorably Senate Bill No. 1553 SCS of 1996.

      Senate Bill No. 1553 SCS establishes a procedure for the dissolution of the Capital City Redevelopment Corporation (CCRC).

      The executive director of the corporation, within 120 days of the enactment of this bill, is to prepare a plan for the orderly dissolution of the corporation and for the transfer of its assets and liabilities to a nonprofit economic development corporation designated by the City of Trenton to promote the revitalization of the city through the encouragement of public and private redevelopment, the restoration and improvement of historic areas, and other such endeavors.

      Upon completion of the plan, the executive director is to notify the State Auditor, who will perform an audit of the CCRC's assets and liabilities. The plan and the audit will be submitted to both houses of the Legislature, whose members may object in writing with respect to the plan or any portion thereof within 30 days of receipt. Before the plan takes effect, the Senate and General Assembly must approve it by concurrent resolution.

      The State Treasurer will transfer all funds remaining in the account of the CCRC to the successor economic development corporation no later than 180 days following the approval of the plan. After the transfer by the State Treasurer, the CCRC will be dissolved.

      If an economic development corporation is not designated by the City of Trenton within the requisite time period, the property, funds, assets and liabilities of the CCRC will remain vested in the corporation and the plan of dissolution will be void.

      The CCRC was created in 1987 to promote and encourage the revitalization of Trenton. Governed by a nine-member board of directors, the board is accorded powers to undertake projects or finance development by private interests, through grants and loans.

FISCAL IMPACT

      This bill has not been certified as requiring a fiscal note since it will not have an impact on State expenditures or revenues.