Assembly Commerce and Economic Development Committee Statement to Assembly, No. 492 (January 27, 2020)

Summary

An Assembly Commerce and Economic Development Committee statement to Assembly, No. 492, State of New Jersey, dated January 27, 2020, reporting the bill favorably. The bill would bar a State public body from awarding an economic development subsidy to a business whose earlier subsidy loan or loan guarantee is more than 24 months overdue on principal and interest. The statement says current law bars such awards when the business is in default on the loan or loan guarantee. An "economic development subsidy" means funds from a State public body with a value of greater than $25,000 to stimulate economic development in New Jersey.

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ASSEMBLY COMMERCE AND ECONOMIC DEVELOPMENT COMMITTEE

STATEMENT TO

ASSEMBLY,
No. 492

STATE
OF NEW JERSEY

DATED: JANUARY
27, 2020

The Assembly Commerce and Economic Development Committee
reports favorably Assembly Bill No. 492.

This bill would prohibit a State public body from
awarding an economic development subsidy to a business that previously received
an economic development subsidy that was a loan or loan guarantee if the payment
of principal and interest on the loan or loan guarantee is more than 24 months
overdue. Current law prohibits a State public body from awarding an economic
development subsidy to a business that previously received an economic
development subsidy that was a loan or loan guarantee if the business is in
default on the loan or loan guarantee.

For the purposes of this bill, and current law:

"State public body" means the State of New
Jersey or any agency, authority, board, commission, or instrumentality of the
State, but does not mean a political subdivision of the State or an agency,
authority, board, commission, or instrumentality of a political subdivision of
the State; and

"Economic development subsidy" means the
provision of an amount of funds to a recipient business by or from a State
public body with a value of greater than $25,000 for the purpose of stimulating
economic development in New Jersey, including, but not limited to, a loan or
loan guarantee.

This bill was pre-filed for introduction in the
2020-2021 session pending technical review. As reported, the bill includes the
changes required by technical review, which has been performed.

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