Permits political subdivisions to require grantees of certain economic development subsidies to enter into community benefits agreements.

S4437

SENATE, No. 4437

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED JUNE 8, 2026

Sponsored by:

Senator� TROY SINGLETON

District 7 (Burlington)

SYNOPSIS

���� Permits political subdivisions to require grantees of
certain economic development subsidies to enter into community benefits
agreements.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act

permitting political subdivisions to
require grantees of certain economic development subsidies to enter into
community
benefits agreements and supplementing Title 40A of the New Jersey Statutes.

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

����� 1.�� a.���� As
used in this section:

����� "Community
benefits agreement" means a legally binding contract concerning a specific
project required by ordinance, resolution, or policy of a county, municipality,
or other political subdivision within this State, which agreement shall
include, but not be limited to, provisions:

����� (1)� requiring
contractors and developers of the project to make specific contributions for
the benefit of the community; and

����� (2)� detailing
the project�s contributions to the community related to:

����� (a)� local
hiring provisions;

����� (b)� area
wage and benefits standards consistent with State statutes;

����� (c)� the
engagement of local businesses for the provision of goods and services; or

����� (d) any
other negotiated activity in exchange for the economic development subsidy.

����� "Economic
development subsidy" means the provision of an amount of funds to a
recipient business by or from a political subdivision within the State for the
purpose of stimulating economic development in New Jersey, including, but not
limited to, any bond, grant, loan, loan guarantee, matching fund, tax credit,
or other tax expenditure.� "Economic development subsidy" shall not
mean any contract under which a State public body purchases or otherwise
procures goods, services, or construction on an unsubsidized basis, including
any contract solely for the construction or renovation of a facility owned by a
State public body.

����� "Tax
expenditure" means the amount of foregone tax collections due to any
abatement, reduction, exemption, credit, or transfer certificate against any
State or local tax, including, but not limited to: taxes on raw materials,
inventories, or other assets; taxes on gross receipts, income, or sales; and
any use, excise, or utility tax.� "Tax expenditure" shall not mean:
any credit against any tax liability of an employee; any personal exemption,
homestead rebate, credit, or deduction for the expenses of a household or
individual; or other reduction of the tax liability of an individual or
household.

����� b.�� A
political subdivision within this State may, by ordinance, condition the grant
of any economic development subsidy, which either alone or in the aggregate, is
in excess of $50,000 from that political subdivision upon the grantee�s promise
to enter into a community benefits agreement.

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

STATEMENT

���� This bill authorizes any
political subdivision of the State, when granting an economic development
subsidy, as specified in the bill, to condition the grant proceeds upon the
grantee�s promise to enter into a community benefits agreement.� The bill
defines "community benefits agreement
"

to mean a legally binding contract concerning a specific project which requires
contractors and developers of the project to make specific contributions for
the benefit of the community including, but not limited to, provisions related to
local hiring, area wage and benefits standards, or engaging local businesses
for the provision of goods and services.