Concerns UEZ assistance fund expenses by specifically including certain property acquisition under definition of "qualified assistance fund expense."

A1210

ASSEMBLY, No. 1210

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblyman ALEXANDER "AVI" SCHNALL

District 30 (Monmouth and Ocean)

SYNOPSIS

���� Concerns UEZ assistance fund expenses by specifically
including certain property acquisition under definition of "qualified
assistance fund expense."

CURRENT VERSION OF TEXT

���� Introduced Pending Technical Review by Legislative
Counsel.

��

An Act

concerning certain Urban Enterprise Zone
assistance fund expenses and amending P.L.1983, c.303.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� Section 3 of P.L.1983,
c.303 (C.52:27H-62) is amended to read as follows:

���� 3.��� As used in P.L.1983,
c.303 (C.52:27H-60 et seq.):

���� a.��� "Enterprise
zone" or "zone" means an urban enterprise zone designated by the
authority pursuant to P.L.1983, c.303 (C.52:27H-60 et seq.);

���� b.��� "Authority" or
"UEZ Authority" means the New Jersey Urban Enterprise Zone Authority
created by P.L.1983, c.303 (C.52:27H-60 et seq.);

���� c.��� "Qualified
business" means any entity authorized to do business in the State of New
Jersey which, at the time of designation as an enterprise zone or a
UEZ-impacted business district, is engaged in the active conduct of a trade or
business in that zone or district; or an entity which, after that designation
but during the designation period, becomes newly engaged in the active conduct
of a trade or business in that zone or district and has at least 25 percent of
its full-time employees employed at a business location in an eligible block
group as defined under section 12 of P.L.2021, c.197 (C.52:27H-99), and which
employees meet one or more of the following criteria:

���� (1)� Residents within the
zone, the district, within another zone or within a qualifying municipality; or

���� (2)� Unemployed for at least
six months prior to being hired and residing in New Jersey, and recipients of
New Jersey public assistance programs for at least six months prior to being
hired, or either of the aforesaid; or

���� (3)� Determined to be low
income individuals pursuant to the Workforce Investment Act of 1998,
Pub.L.105-220 (29 U.S.C. s.2811);

���� Approval as a qualified
business shall be conditional upon meeting all outstanding tax obligations, and
may be withdrawn by the authority if a business is continually delinquent in
meeting its tax obligations;

���� d.��� "Qualifying
municipality" means any municipality that was previously designated as a
qualifying municipality prior to the effective date of P P.L.2021, c.197;

���� e.��� "Public
assistance" means income maintenance funds administered by the Department
of Human Services or by a county welfare agency;

���� f.���� "Zone development
corporation" means a nonprofit corporation or association created or
designated by the governing body of a qualifying municipality to formulate and
propose a preliminary zone development plan pursuant to section 9 of P.L.1983,
c.303 (C.52:27H-68) and to prepare, monitor, administer and implement the zone
development plan;

���� g.��� "Zone development
plan" means a plan adopted by the governing body of a qualifying
municipality for the development of an enterprise zone therein, and for the
direction and coordination of activities of the municipality, zone businesses
and community organizations within the enterprise zone toward the economic
betterment of the residents of the zone and the municipality;

���� h.��� "Zone neighborhood
association" means a corporation or association of persons who either are
residents of, or have their principal place of employment in, a municipality in
which an enterprise zone has been designated pursuant to P.L.1983, c.303
(C.52:27H-60 et seq.); which is organized under the provisions of Title 15 of
the Revised Statutes or Title 15A of the New Jersey Statutes; and which has for
its principal purpose the encouragement and support of community activities
within, or on behalf of, the zone so as to (1) stimulate economic activity, (2)
increase or preserve residential amenities, or (3) otherwise encourage
community cooperation in achieving the goals of the zone development plan;

���� i.���� "Enterprise zone
assistance fund" or "assistance fund" means the fund created by
section 29 of P.L.1983, c.303 (C.52:27H-88);

���� j.���� "UEZ-impacted
business district" or "district" means an
economically-distressed business district classified by the authority as having
been negatively impacted by two or more adjacent urban enterprise zones in
which 50 percent less sales tax is collected pursuant to section 21 of
P.L.1983, c.303 (C.52:27H-80);

���� k.��� "Block group"
means statistical divisions of census tracts, that are generally defined by the
United States Census Bureau to contain between 600 and 3,000 people and are
used to present data and control block numbering;

���� l.���� "Municipal
Revitalization Index" means the index developed, maintained, and updated
from time to time, by the Department of Community Affairs ranking New Jersey's
municipalities according to separate indicators that measure diverse aspects of
social, economic, physical, and fiscal conditions in each locality;

���� m.�� "Qualified
assistance fund expense" means any reasonable expense related to:

���� (1)� a construction project
improving, altering, or repairing the real property of a qualified business
located in an enterprise zone
, including the purchasing, leasing, or
otherwise acquiring land or other property
;

���� (2)� full or part time
economic and community development positions in the municipality, other
governmental, or not-for-profit organization, or marketing;

���� (3)� loans, grants, and
guarantees to businesses
, which may be applied to the purchasing, leasing,
or otherwise acquiring land or other property
;

���� (4)� payroll expenses,
personnel, services, and equipment purchases primarily for the provision of law
enforcement, fire protection, or emergency medical services within commercial
and transportation corridors located exclusively in an enterprise zone;

���� (5)� planning and other
professional services related to economic and community development;

���� (6)� cleaning and maintenance
of commercial and transportation corridors;

���� (7)� the improvement of public
infrastructure in a commercial or transportation corridor and transportation
infrastructure located within an enterprise zone, including, but not limited
to,
the purchasing, leasing, or otherwise acquiring land or other property,

the payment of debt service related to the financing of a transportation
infrastructure project, and the pledge of funds credited to the assistance fund
toward the repayment of any loan issued by the State Transportation
Infrastructure Bank pursuant to section 34 of P.L.2016, c.56 (C.58:11B-10.4) or
any government agency, for a transportation infrastructure project, provided
that up to 75 percent of any zone assistance funds may be used to pay debt
service related to the financing of the cost of a transportation infrastructure
project or pledged toward the repayment of any loan for the cost of a
transportation infrastructure project if such use is detailed in that
municipality's zone development plan certified by the UEZ Authority;

���� (8)� the improvement of public
infrastructure
, including the purchasing, leasing, or otherwise acquiring
land or other property,
related to a commercial, industrial, mixed use, or
multi-family residential property;

���� (9)� employment and training
programs; or

���� (10)� events meant to support
and draw activity into the enterprise zone, including fairs, festivals, and
concerts.

���� n.��� "UEZ
coordinator" means an individual designated by a qualified municipality or
zone development corporation as the individual in charge of the activities
related to the Urban Enterprise Zone program in that municipality;

���� o.��� "UZ-2
certification" means the UEZ Authority's certification of a qualified
business, pursuant to section 21 of P.L.1983, c.303 (C.52:27H-80), allowing the
qualified business an exemption to the extent of 50 percent of the tax imposed
under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et
seq.), when the sales transaction physically occurs within an enterprise zone.�
The qualified business may deliver merchandise to the purchaser at a location
outside an enterprise zone provided the sales transaction was physically made
within the enterprise zone.� The regular tax rate shall be charged for mail
order, telephone, internet, and similar sales transactions delivered within the
State;

���� p.��� "UZ-4
certification" means the UEZ Authority's certification of a qualified
business, pursuant to section 8 of P.L.2021, c.197 (C.52:27H-79.1), allowing a
contractor of the qualified business to make tax-free purchases of materials,
supplies, and services for the exclusive use of erecting a structure or
building on, or substantially improving, altering, or repairing, the real
property of a qualified business located in an enterprise zone at the address
indicated on the qualified business's application for certification to the UEZ
Authority;

���� q.��� "UZ-5
certification" means the UEZ Authority's certification of a qualified
business, as defined under section 20 of P.L.1983, c.303 (C.52:27H-79),
allowing the qualified business to make tax-free purchases of office and
business equipment and supplies, furnishings, trade fixtures, repair, or
construction materials and all other tangible personal property (other than
motor vehicles and motor vehicle parts and supplies) for the exclusive use or
consumption on the premises of the qualified business within an enterprise zone
at an address indicated on the qualified business's application for
certification to the UEZ Authority.� The exemption may be used only for
personal property controlled by the qualified business.� This exemption shall
also apply to delivery charges and charges for services performed for a
qualified business at its zone location, including repair, janitorial, and
maintenance services;

���� r.���� "Economic Distress
Index" means a standardized score developed and maintained by the
Department of Community Affairs that equally incorporates the block group
unemployment rate and median household income according to the most recent
five-year estimate by the United States Census Bureau;

���� s.���� "Commercial
corridor" means the land area with frontage on a State, county, local, or
rail thoroughfare in an enterprise zone which is predominantly commercial or
industrial;

���� t.���� "Transportation
corridor" means a broad geographical band that follows a general
directional flow or connects major sources of trips. It may contain a number of
streets and highways and transit lines or routes;

���� u.��� "Improvement of
transportation infrastructure" means the undertaking of a capital project
for the construction, repair, upgrade, or maintenance of transportation
infrastructure;

���� v.��� "Transportation
infrastructure" includes, but is not limited to:

���� (1)� all public highways,
roads, bridges, and streets in the State, whether maintained by the State or by
any county, municipality, or other political subdivision; and

���� (2)� public transportation
facilities used in connection with public transportation service, such as
passenger stations, shelters, and terminals, automobile and bus parking
facilities, ramps, track connections, signal systems, power systems,
information and communication systems, roadbeds, transit lanes or
rights-of-way, equipment storage and servicing facilities, bridges, grade
crossings, rail cars, locomotives, motorbuses and other motor vehicles,
maintenance and garage facilities, revenue handling equipment, and any other
equipment, facility, or property useful or related to the provision of public
transportation service;

���� w.�� "Public
transportation service" means rail passenger service, motorbus regular
route service, paratransit service, motorbus charter service, and ferry
passenger service;

���� x.��� "Rail passenger
service" means and includes the operations of a railroad, subway, street,
traction, or electric railway for the purpose of carrying passengers in this
State or between points in this State and points in other states;

���� y.��� "Motorbus regular
route service" means and includes the operation of any motorbus or
motorbuses on streets, public highways, or other facilities over a fixed route
and between fixed termini on a regular schedule for the purpose of carrying
passengers for hire or otherwise in this State or between points in this State
and points in other states;

���� z.��� "Paratransit
services" means and includes any service, other than motorbus regular
route service and charter services, including, but not limited to, dial-a-ride,
non-regular route, jitney or community minibus, and shared-ride services such
as vanpools, limousines, or taxicabs which are regularly available to the
public.� Paratransit services shall not include limousine or taxicab service
reserved for the private and exclusive use of individual passengers;

���� aa.�� "Motorbus charter
service" means and includes subscription, tour, other special motorbus
services, school bus services, or charter services as set forth in section 7 of
P.L.1979, c.150 (C.27:25-7); and

���� bb.� "Ferry passenger
service" means any service which involves the carriage of persons for
compensation or hire by waterborne craft in this State or between points in
this State and points in other states.

(cf:� P.L.2024, c.80, s.1)

���� 2.��� This act shall take
effect immediately.

STATEMENT

���� This bill amends the "New
Jersey Urban Enterprise Zones Act," P.L.1983, c.303 (C.52:27H-60) to
specify that the definition of "qualified assistance fund expense"
includes purchasing, leasing, or otherwise acquiring land or other property.