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.