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Bill > S1052


NJ S1052

Establishes Economic Development Incentive Review Commission.


summary

Introduced
01/22/2018
In Committee
01/22/2018
Crossed Over
Passed
Dead
01/08/2020

Introduced Session

2018-2019 Regular Session

Bill Summary

This bill establishes the Economic Development Incentive Review Commission (commission). The commission is established within the Department of Treasury (department) and is to consist of nine members. The nine members include the State Treasurer, Executive Director of the New Jersey Economic Development Authority (authority) ex-officio. The Governor is to choose five public members, including an accountant or an auditor, a professional economist, a representative of the business community, a representative of the real estate community, and a member of the general public with no specific expertise. The Governor is to then appoint one member each upon the recommendation of the Senate President and the Speaker of the General Assembly who shall have experience in county or municipal government. Members aside from the first appointments not made upon the recommendation of the Senate President or Speaker of the General Assembly are to serve for four year terms. The commission is required to annually contract for a report that comprehensively reviews State tax credit and tax increment financing programs, including, but not limited to, the Grow New Jersey Assistance program, the Economic Redevelopment and Growth Grant program, and the Garden State Growth Zone program. The program is to be both a review of the individual awards issued under those programs, as well as an overall evaluation of the programs themselves. The commission is to alternate between professional academic researchers, independent private sector economics firms, and non-profit research entities, to ensure a broad range of economic perspectives, when identifying firms to generate the report. Upon receipt of the report, the commission is also to utilize its own expertise to generate an annual statement that accompanies the report. This statement is to provide additional analysis of the tax incentive programs, recommendations for legislative changes to the programs, documentation of best practices in other states, guidance to the department and authority concerning revenue impacts from tax incentive programs, and how to more efficiently manage the programs. Once the report and statement have been completed, the commission is to appear before the Senate Economic Growth Committee and the Assembly Commerce and Economic Development Committee, to present the report and statement and answer questions from Legislators.

AI Summary

This bill establishes the Economic Development Incentive Review Commission (the Commission) within the Department of Treasury. The Commission consists of nine members, including the State Treasurer and the Executive Director of the New Jersey Economic Development Authority (EDA) as ex-officio members, and seven public members appointed by the Governor. The Commission is responsible for annually contracting an independent report that comprehensively reviews and analyzes incentives awarded under the Grow New Jersey Assistance Program, the Economic Redevelopment and Growth Grant program, the Garden State Growth Zones, and any other subsequent legislative incentive program providing tax credits or tax increment financing. The report must focus on the effectiveness of these incentives on job creation, capital investment, and tax revenue impact, as well as provide a cost-benefit analysis of each program. The Commission is also required to generate a separate policy recommendation statement to the Governor and the Legislature, which can include recommendations for legislative improvements, guidance to the Department and EDA on administering the programs, and documentation of best practices in other states.

Committee Categories

Business and Industry

Sponsors (2)

Last Action

Introduced in the Senate, Referred to Senate Economic Growth Committee (on 01/22/2018)

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