Bill > A2400

Introduced Session

This bill provides that a business that has been awarded an economic development subsidy by a State public body and is found to be in violation of the State's environmental laws may be required to make a payment to the State in an amount equal to the total costs to address the environmental incident. If the business fails to make the payment, then it will be required to forfeit a portion of the value of economic development subsidies to be provided to the business in future years. Penalty Provisions. The bill authorizes the Commissioner of Environmental Protection (commissioner) to take other actions against any business that has been awarded an economic development subsidy by a State public body and is found to be in violation of the State's environmental laws. Under the bill, the commissioner may to issue administrative orders, levy administrative penalties, bring civil actions for injunctive relief, and bring an action for civil penalties to enforce the bill's provisions. The bill also authorizes the commissioner to assess a civil administrative penalty not to exceed $100,000 for violations of administrative or court orders issued pursuant to the bill. Payments to the State & Forfeiture of Economic Development Subsidies. The bill provides that if the commissioner determines that a recipient business is responsible for an environmental incident, the business may be required to make a payment to the State equal to the greater of: (1) 20 percent of the economic development subsidies awarded to the business for the tax year in which a determination is made under the bill; or (2) the total costs to address the environmental incident. Under the bill, these costs include, but are not limited to, the costs of environmental remediation necessary to contain and remediate the impact of the incident, housing relocation costs for impact residents, the installation of air filtration and fire suppression systems within impacted buildings or structures, and the costs of psychological or mental health counseling for impacted residents. The bill directs the commissioner, in consultation with the State Treasurer, the chief executive officer of the New Jersey Economic Development Authority (EDA), and any other State officials the commissioner deems appropriate, to determine the costs necessary to address the environmental incident. The bill requires the commissioner to provide written notice to the recipient business that the recipient business is required to make a payment to the State and would forfeit future economic development subsidies if the payment is not made. The notice is also required to include an explanation of the commissioner's determination, including an explanation of: the provisions of law under which the violation occurred, the facts alleged to constitute a violation, the amount of the payment to be provided to the State and the amount of future economic development subsidies that may be forfeited, and the party's right to a hearing. The bill provides that a recipient business may request a hearing to dispute the commissioner's finding within 20 days of receipt of the written notice. After the hearing and upon a finding that a violation has occurred, the commissioner may issue a final order assessing the amount of the penalty specified in the notice. If a recipient business does not request a hearing, the written notice becomes a final order after the expiration of the 20-day period. The bill provides that if a business, which has entered into an agreement with the authority for the issuance of an economic development subsidy on or after the effective date of the bill, fails to make a payment to the State or forfeit the required amount of economic development subsidies, the recipient business would be required to forfeit all economic development subsidies awarded to the recipient business and its affiliates until the requirements of the bill are satisfied. The bill also requires future economic development subsidy agreements entered into by the authority to include a provision specifying that a recipient business is subject to the provisions of the bill. The bill requires any payments received by the State to be deposited into the Environmental Incident Recovery Fund established by the bill and appropriated to provide reimbursement payments to residents of communities impacted by an environmental incident for costs incurred to address the environmental incident. The bill takes effect on the first day of the sixth month following enactment and applies to economic development subsidy agreements entered into by the authority and recipient businesses after the effective date.

AI Summary

Committee Categories

Bill Moen (D)*,  Shama Haider (D), 

Introduced, Referred to Assembly Commerce and Economic Development Committee (on 01/13/2026)

Official Document