New Jersey § 52:27h-88

§ 52:27h-88.

a. (1) There is created an enterprise zone assistance fund to be held by the State

Treasurer, which shall be the repository for all moneys required to be deposited therein

under section 21 of P.L.1983, c. 303 ( C.52:27H-80 ), as amended by this act, P.L.2023, c. 282, and moneys appropriated annually to the fund . All moneys in the fund shall be held and disbursed in accordance with this section and section 11 of P.L.2021, c. 197 ( C.52:27H-98 ) as necessary to fulfill the purposes of this section and subject to the requirements

hereinafter prescribed. The State Treasurer may invest and reinvest any moneys in the fund, or any portion

thereof, to strengthen capital structures, leverage additional debt capital, and increase

lending and investing in economically disadvantaged communities, and in any other

manner that advances the goals of the Urban Enterprise Zone program, including, but

not limited to , legal obligations of the United States or of the State or of any political subdivision

thereof or government-sponsored enterprises. Any income from, interest on, or increment to moneys so invested or reinvested shall

be included in the fund. The amount in the enterprise zone assistance fund, which shall be available to fulfill the purposes of this section, shall be as follows: (a) In the first five State fiscal years next following the effective date of P.L.2021, c. 197, 100 percent of the amount determined pursuant to section 11 of P.L.2021, c. 197 ( C.52:27H-98 ) shall be available to fulfill the purposes of this section ; (b) In the sixth State fiscal year next following the effective date of P.L.2021, c. 197, 95 percent of the amount determined pursuant to section 11 of P.L.2021, c. 197 ( C.52:27H-98 ) shall be available to fulfill the purposes of this section and five percent of such amount shall be deposited in the General Fund; (c) In the seventh State fiscal year next following the effective date of P.L.2021, c. 197, 90 percent of the amount determined pursuant to section 11 of P.L.2021, c. 197 ( C.52:27H-98 ) shall be available to fulfill the purposes of this section and 10 percent of such amount shall be deposited in the General Fund; (d) In the eighth State fiscal year next following the effective date of P.L.2021, c. 197, 85 percent of the amount determined pursuant to section 11 of P.L.2021, c. 197 ( C.52:27H-98 ) shall be available to fulfill the purposes of this section and 15 percent of such amount shall be deposited in the General Fund; (e) In the ninth State fiscal year next following the effective date of P.L.2021, c. 197, 80 percent of the amount determined pursuant to section 11 of P.L.2021, c. 197 ( C.52:27H-98 ) shall be available to fulfill the purposes of this section and 20 percent of such amount shall be deposited in the General Fund; and (f) In the 10th State fiscal year next following the effective date of P.L.2021, c. 197, 75 percent of the amount determined pursuant to section 11 of P.L.2021, c. 197 ( C.52:27H-98 ) shall be available to fulfill the purposes of this section and 25 percent of such amount shall be deposited in the General Fund. (2) The State Treasurer shall maintain separate accounts for each enterprise zone

designated under P.L.1983, c. 303 ( C.52:27H-60 et seq. ) that is in good standing with the UEZ Authority in accordance with rules adopted

by the UEZ Authority, and one in the authority's name for the administration of the

Urban Enterprise Zone program, and for providing grants, including planning grants,

investments, loans , or other guaranties related to qualified assistance fund expenses. The State Treasurer shall credit to each account an amount of the moneys deposited

in the fund and available to fulfill the purposes of this section, which amount shall be determined by a weighted formula that applies 50 percent weight to a zone municipality's

number of commercial and industrial parcels as recorded by the municipal tax assessor,

its Municipal Revitalization Index Distress Score, as determined by the Department

of Community Affairs, and the average number of unemployed persons in the municipality

according to data provided by the New Jersey Department of Labor and Workforce Development,

and 50 percent weight to the gross taxable sales in the municipality subject to reduced

sales tax pursuant to section 21 of P.L.1983, c. 303 ( C.52:27H-80 ), as determined by the State Treasurer. The data used in the formula, developed under this section, shall be the most recent

data that has been made available by the Department of Community Affairs, the Department

of Labor and Workforce Development, and the State Treasurer. When funds are received by a qualifying municipality pursuant to this subsection,

the funds shall be placed in a new trust or, for a qualifying municipality that has

a trust for an enterprise zone on the effective date of P.L.2021, c. 197, in the existing trust. The Division of Local Government Services in the Department of Community Affairs shall

promulgate regulations, policies, or procedures as necessary to implement the provisions

of this section. (3) Beginning in State Fiscal Year 2022, $2,500,000 shall be appropriated annually from the account in the authority's name for the administration of the Urban Enterprise Zone program, and for providing grants,

investments, loans, or other guaranties related to qualified assistance fund expenses.

This amount shall be adjusted annually by the percentage change in the 12-month Consumer

Price Index from June 30 to July 1. (4) The State Treasurer shall promulgate the rules and regulations necessary to govern

the administration of the fund for the purposes of this section, which shall include,

but not be limited to, regulations requiring the establishment of separate bank accounts

for funds credited to the enterprise zone account of each municipality from the enterprise

zone assistance fund, commonly known as “ first generation funds ,” and funds generated from the repayments of loans to individuals and businesses

from the enterprise zone account of each municipality and the proceeds from the sale

of properties and equipment acquired through the enterprise zone program, commonly

known as “ second generation funds ,” and the review, compilation, and monitoring of second generation fund quarterly

reports submitted by each enterprise zone. Any individual, including an individual who is not directly employed by a municipality,

with the authority to administer, allocate or approve the use of zone assistance funds

is subject to the “Local Government Ethics Law,” P.L.1991, c. 29 ( C.40A:9-22.1 et seq. ), unless the individual is a State employee or a special State officer. b. The enterprise zone assistance fund shall be used for the purpose of assisting

qualifying municipalities in which enterprise zones are designated in undertaking

economic development projects in designated enterprise zones by funding qualified

assistance fund expenses. However, a municipality shall not appropriate or expend : more than 25 percent of the amount annually credited to its enterprise zone assistance

fund for public safety purposes, as described in paragraph (4) of subsection m. of section 3 of P.L.1983, c. 303 ( C.52:27H-62 ) ; or more than 10 percent of the amount annually credited to its enterprise zone assistance

fund for administrative expenses. c. The governing body of a qualifying municipality in which an enterprise zone is

designated and the zone development corporation created or designated by the municipality

for that enterprise zone may, by resolution jointly adopted after public hearing,

propose to undertake an economic development project in the enterprise zone, and to

fund that project from moneys deposited in the enterprise zone assistance fund and

credited to the account maintained by the State Treasurer for the enterprise zone. The proposal so adopted shall set forth a plan for the project and shall include: (1) A description of the proposed project; (2) An estimate of the total project costs, and an estimate of the amounts of funding

necessary annually from the enterprise zone account; (3) A statement of any other revenue sources to be used to finance the project; (4) A statement of the time necessary to complete the project; (5) A statement of the manner in which the proposed project furthers the municipality's

policy and intentions for addressing economic development in the enterprise zone as

set forth in the zone development plan approved by the authority; and (6) A description of the financial and programmatic controls and reporting mechanisms

to be used to guarantee that the funds will be spent in accordance with the plan and

that the project will accomplish its purpose. As used in this section, “ project ” means an activity that satisfies the requirements of a qualified assistance fund

expense, as that term is defined in subsection m. of section 3 of P.L.1983, c. 303

( C.52:27H-62 ), and which will lead to the creation of new jobs and increased economic activity

within the zone. d. (Deleted by amendment, P.L.2021, c. 197 ) e. (Deleted by amendment, P.L.2021, c. 197 ) f. (Deleted by amendment, P.L.2021, c. 197 ) g. (Deleted by amendment, P.L.2021, c. 197 ) h. At the end of a State fiscal year, if a municipality has not encumbered a portion

of its allocation, such amount may be carried forward to the next State fiscal year

and the State fiscal year thereafter. If at the end of the third State fiscal year any of those unencumbered funds remain,

then the funds shall be transferred to the UEZ Authority's account in the enterprise

zone assistance fund. i. At the end of a State fiscal year, 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 three succeeding State fiscal years. If at the end of the third State fiscal year any unexpended funds remain, then the

funds shall be transferred to the UEZ Authority's account in the enterprise zone assistance

fund. j. At the end of a State fiscal year, the Department of Community Affairs shall review

an enterprise zone's expenditures of funds received from the zone assistance fund.

If the department finds that an enterprise zone expended such funds in a manner inconsistent

with the provisions of P.L.1983, c. 303 ( C.52:27H-60 et seq. ) and P.L.2021, c. 197, then the enterprise zone shall repay such funds to the department through the forfeiture

of future zone assistance fund disbursements. The department shall withhold future funding from the enterprise zone until the enterprise

zone enters into and complies with a corrective action plan developed by the department. k. If in a State fiscal year the amount allocated to the enterprise zone assistance

fund is less than the amount required to be allocated to fulfill the purposes of this section pursuant to section 11 of P.L.2021, c. 197 ( C.52:27H-98 ) and paragraph (1) of subsection a. of this section, the Legislature shall appropriate

to the enterprise zone assistance fund the amount that was not allocated in such State

fiscal year in a succeeding State fiscal year along with the funds required to be

allocated in that State fiscal year.