Signed by Governor Phil Murphy

Vote Smart's Synopsis:

Vote to concur with Senate amendments and pass a bill that restructures the Urban Enterprise Zone Program.

Highlights:

• Defines "enterprise zone" or "zone" as an urban enterprise zone designated by the authority (Sec. 1.a).

• Classifies the following as criteria to be designated as an urban enterprise zone (Sec. 1.d):

• That was previously designated as a qualifying municipality before the effective date; or

• That is among the top 20% of the most distressed New Jersey municipalities according to the most recent Municipal Revitalization Index, and:

• In which the share of parcels accounted for by commercial and industrial property exceeds the Statewide average of commercial and industrial parcels according to the most recently released Property Value Classification prepared by the Department of the Community Affairs, and

• Which has an unemployment rate that exceeds the most recent annual Statewide unemployment rate;

• Establishes the New Jersey Urban Enterprise Zone Authority, which consists of (Sec. 2.a):

• The CEO of the New Jersey Economic Development Authority;

• The Commissioner of the Department of Community Affairs, who will be the chair of the UEZ Authority;

• The Commissioner of the Department of Labor and Workforce Development;

• The State Treasurer;

• The chief executive officer of the New Jersey Redevelopment Authority; and

• 4 public members not holding any other office, position, or employment in the State Government.

• Requires the governing body of the municipality to submit an updated preliminary zone development plan for a municipality with a zone development plan that was approved more than 5 years prior to the effective date (Sec. 4.a).

• Requires the UEZ Authority to review the proposed solicitation and may provide recommended modifications to the proposed solicitation. The governing body of a municipality or a zone development corporation may incur expenses related to the preparation of the preliminary zone development plan for potential reimbursement at a later time by the UEZ Authority, provided the authority determines the expenses are reasonable (Sec. 4-2).

• Specifies if no zone development plan is in place, upon petition of the zone development corporation or governing body of the municipality, the UEZ Authority may grant distribution from that municipality’s zone assistance fund account for an eligible project that responds to an impact of a public health emergency or state of emergency declared by the Governor (Sec. 4.c).

• Requires an area to be eligible for designation as an enterprise zone if the municipality in which the area is located is among the top 20% of the most distressed New Jersey municipalities, according to the most recent Municipal Revitalization Index, and (Sec. 5.b):

• The share of parcels accounted for by commercial and industrial property within the municipality exceeds the Statewide average of commercial and industrial parcels according to the most recently released Property Value Classification prepared by the Department of the Community Affairs; and

• The municipality has an unemployment rate that exceeds the most recent annual Statewide unemployment rate.

• Authorizes the UEZ Authority to designate enterprise zones from among qualifying municipalities determined to be eligible notwithstanding the limitation on the number of eligible zones (Sec. 6.f).

• Specifies if a municipality has not expended or otherwise committed a portion of its encumbered funds, then such amount may be carried forward to the next 3 succeeding State fiscal years (Sec. 10.i).

Full Bill Text

Vote Smart's Synopsis:

Vote to amend and pass a bill that restructures the Urban Enterprise Zone Program.

Highlights:

• Defines "enterprise zone" or "zone" as an urban enterprise zone designated by the authority (Sec. 1.a).

• Classifies the following as criteria to be designated as an urban enterprise zone (Sec. 1.d):

• That was previously designated as a qualifying municipality before the effective date; or

• That is among the top 20% of the most distressed New Jersey municipalities according to the most recent Municipal Revitalization Index, and:

• In which the share of parcels accounted for by commercial and industrial property exceeds the Statewide average of commercial and industrial parcels according to the most recently released Property Value Classification prepared by the Department of the Community Affairs, and

• Which has an unemployment rate that exceeds the most recent annual Statewide unemployment rate;

• Establishes the New Jersey Urban Enterprise Zone Authority, which consists of (Sec. 2.a):

• The CEO of the New Jersey Economic Development Authority;

• The Commissioner of the Department of Community Affairs, who will be the chair of the UEZ Authority;

• The Commissioner of the Department of Labor and Workforce Development;

• The State Treasurer;

• The chief executive officer of the New Jersey Redevelopment Authority; and

• 4 public members not holding any other office, position, or employment in the State Government.

• Requires the governing body of the municipality to submit an updated preliminary zone development plan for a municipality with a zone development plan that was approved more than 5 years prior to the effective date (Sec. 4.a).

• Requires the UEZ Authority to review the proposed solicitation and may provide recommended modifications to the proposed solicitation. The governing body of a municipality or a zone development corporation may incur expenses related to the preparation of the preliminary zone development plan for potential reimbursement at a later time by the UEZ Authority, provided the authority determines the expenses are reasonable (Sec. 4-2).

• Specifies if no zone development plan is in place, upon petition of the zone development corporation or governing body of the municipality, the UEZ Authority may grant distribution from that municipality’s zone assistance fund account for an eligible project that responds to an impact of a public health emergency or state of emergency declared by the Governor (Sec. 4.c).

• Requires an area to be eligible for designation as an enterprise zone if the municipality in which the area is located is among the top 20% of the most distressed New Jersey municipalities, according to the most recent Municipal Revitalization Index, and (Sec. 5.b):

• The share of parcels accounted for by commercial and industrial property within the municipality exceeds the Statewide average of commercial and industrial parcels according to the most recently released Property Value Classification prepared by the Department of the Community Affairs; and

• The municipality has an unemployment rate that exceeds the most recent annual Statewide unemployment rate.

• Authorizes the UEZ Authority to designate enterprise zones from among qualifying municipalities determined to be eligible notwithstanding the limitation on the number of eligible zones (Sec. 6.f).

• Specifies if a municipality has not expended or otherwise committed a portion of its encumbered funds, then such amount may be carried forward to the next 3 succeeding State fiscal years (Sec. 10.i).

Full Bill Text