I. State Issues
a. Governor Asks Legislature to Consider New Tax Incentive Programs
Governor Phil Murphy has issued a conditional veto (CV) of S-3901, returning the bill to the Legislature with recommended changes to reform the state's tax incentive programs. S-3901 would have extended the Economic Opportunity Act in its entirety to January 31, 2020, seven months beyond its sunset date of June 30, 2019. Due to that sunset, New Jersey is currently without a tax incentive program to encourage investments in economic development. The Governor views the State’s current incentive regime as flawed and subject to abuse.
The recommendations outlined in the Governor’s conditional veto would replace the current tax incentive. In their stead, the Governor has asked the Legislature to concur with his conditions, which include the following five, new initiatives:
* NJ Forward – This jobs-based program would provide credits to companies engaged in high-growth industries, U.S. businesses creating a Northeast headquarters, foreign businesses creating a U.S. headquarters, and major job retention projects.
* NJ Aspire – This program would encourage investments in commercial, residential, and mixed-use projects through a place-based gap financing program.
* Brownfields Redevelopment Program – This program would augment EDA's Brownfields Loan Program, promote more remediation projects, and increase job creation.
* Historic Preservation Tax Credit Program – This program, modeled after the National Historic Tax Credit program, would partially reimburse developers who revitalize income-producing historic buildings.
* Innovation Evergreen Fund – This fund would be designed to boost venture capital investment into Garden State startups.
The Governor’s alternative proposal would cap combined total annual value of the incentives at $400 million. The legislation provides flexibility for the state to award additional tax credits for certain transformative projects, including for projects that deliver food sources to food deserts as designated in consultation with the Departments of Agriculture and Community Affairs.
Hoping for a compromise with the Governor, Senate President Steve Sweeney intends to consult with former State Senators Joe Kyrillos and Ray Lesniak. The Senate President has called them ‘the architects of all of the incentive bills over the last two decades.’ Former Senators Lesniak and Kyrillos have already met with the Governor’s staff to discuss incentive reform.
As discussions continue, at this time, the Senate President does not intend to move toward an override of the Governor’s CV. We will keep you posted.
Contact: Jon Moran, Senior Legislative Analyst, jmoran@njlm.org, 609-695-3481 x121.
b. Governor Vetoes Use of Digital Parking Meters for Monitoring Parking
Compliance
On Monday Governor Murphy vetoed A-4135, which would have authorized the State or a local government to use a digital parking meter or other electronic parking compliance device to monitor parking compliance within its jurisdiction. The bill, would have also established the “Designated Drivers to Prevent Drunk Driving Fatalities Fund.” In his veto message, Governor Murphy expressed his concern that the meters would dramatically increase the number of parking tickets issued, citing the number of violations issued by Palisades Park pilot program, and that this would increase the fines paid by New Jersey residents. The Governor further stated that “if we are going to seek additional revenue to support important public priorities, I firmly believe that we should first ask those at the very top, such as those with incomes in excess of $1 million, to pay their fair share. I do not believe it is appropriate to protect the tax breaks enjoyed by the wealthiest New Jerseyans while extracting additional money from low-and middle-income New Jerseyans, many of whom are struggling to make ends meet. I will not allow technological advances to multiply the likelihood of an unexpected parking ticket, which can devastate a resident or family living paycheck to paycheck.” The Governor also stated that he is “committed to making New Jersey a state in which all residents can both afford to live and maximize their talents and abilities. I believe that the use of digital parking meters and the likely flood of parking tickets that would result will make New Jersey less affordable.”
Contact: Lori Buckelew, Senior Legislative Analyst, lbuckelew@njlm.org, 609-695-3481 x112.
c. Governor Murphy Conditionally Vetoes Bill Establishing NJ Violence
Intervention Program
On August 23 Governor Murphy conditionally vetoed S-3309, which would have established the New Jersey Violence Intervention Program (NJVIP). Furthermore, the bill would have required the Attorney General to award funds on a competitive basis to municipalities, not for profit health agencies, law enforcement agencies, and non-profit organizations that serve communities with disproportionately high rates of homicides and other incidents involving the use of firearms. This legislation would require the Attorney General to establish, advertise, and administer grants through the NJVIP, conduct program evaluations to determine the effectiveness of the violence intervention programs, provide written reports to provide transparency regarding the effectiveness of the programs, and hold public forums to gather community input regarding the programs.
In his conditional veto message, Governor Murphy noted the administration would also use federal Victims of Crime Act (VOCA) Assistance grants to support NJVIP; therefore, it is “important to ensure that the rules governing NJVIP do not violate the criteria for qualifying for VOCA Assistance grants.” The language changes in the conditional veto more “closely align with VOCA Assistance grant eligibility criteria.” The conditional veto adds language that incorporates and emphasizes targeted services, clarifies that hospitals receiving NJVIP grants must be not-for-profit or use not-for-profit entities to run their violence intervention programs and will allow the Attorney General to establish any additional conditions or limitations to ensure that VOCA Assistance grant funding is awarded in compliance with federal law.
Contact: Lori Buckelew, Senior Legislative Analyst, lbuckelew@njlm.org, 609-695-3481 x112.
d. Governor Signs Bill Amending Laws Governing Remediation of
Contaminated Sites
Governor Murphy on Friday signed into law A-5293 (now, P.L.2019, c.263) which makes various changes to laws governing the remediation of contaminated sites. The new law, which the League supported, expands the functions of the Site Remediation Reform Act of 2009 and the Licensed Site Remediation Professional (LSRP) program adding prerequisites for licensure to strengthen protections of public health and safety, and the environment.
Some of the new requirements implemented by the amendments include better communication with both the public and local governing body on the status of site remediation. Status reports and other information that was previously required to be sent only to the Department of Environmental Protection must now also be provided to the local governing body and, upon request, to the public.
The amendments also make it clear that municipal courts have jurisdiction to impose a civil penalty for minor violations of the Site Remediation Reform Act. While municipal courts have always heard these “ticket” violations the authority to do so had never been specifically allocated, until now.
Contact: Frank Marshall, Esq., League Staff Attorney, fmarshall@njlm.org, 609-695-3481 x137.
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