ASSEMBLY STATE AND LOCAL GOVERNMENT COMMITTEE

STATEMENT TO

ASSEMBLY, No. 4534

with committee amendments

STATE OF NEW JERSEY

DATED:  JUNE 24, 2024

      The Assembly State and Local Government Committee reports favorably and with committee amendments Assembly Bill No. 4534.

      As amended, this bill revises the definition of a “qualified assistance fund expense” under the “New Jersey Urban Enterprise Zones Act,” C.52:27H-60 et seq. to clarify that qualifying municipalities would be able to use funds received through the Urban Enterprise Zone program for transportation infrastructure projects and related debt service. 

      The Urban Enterprise Zone (UEZ) program aims to bring about the revitalization of the State’s urban areas through the provision of various incentives to encourage job creation and economic development.  As part of this program, the State administers the “Enterprise Zone Assistance Fund,” which provides funding to qualifying municipalities to support certain economic development projects in enterprise zones.  In order for a project to qualify for funding through the UEZ program, the project is required to meet the statutory definition of a “qualified assistance fund expense.”  These expenses currently include, among other items, the reasonable expenses related to the improvement of public infrastructure in a commercial or transportation corridor and the improvement of public infrastructure related to a commercial, industrial, mixed use, or multi-family residential property. 

      The bill revises the definition of a “qualified assistance fund expense” to include the improvement of transportation infrastructure, regardless of whether the improvement is made within a commercial or transportation corridor.  Specifically, these improvements would include the undertaking of a capital project for the construction, repair, upgrade, or maintenance of transportation infrastructure.  The bill also provides that these expenses may include debt service related to the financing of a transportation infrastructure project, as well as the pledge of funds credited to the assistance fund toward the repayment of any loan issued by the State Transportation Infrastructure Bank Fund or any government agency for a transportation infrastructure project, provided that up to 75 percent of any assistance funds, with the approval of the UEZ Authority, may be used to pay debt service related to the financing the cost of a transportation infrastructure project or pledged toward the repayment of any loan for a transportation infrastructure total project cost.

      Under the bill, the term “transportation infrastructure” is defined to include, but not be 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.

      The bill further defines “public transportation service” to mean rail passenger service, motorbus regular route service, paratransit service, motorbus charter service, and ferry passenger service.

COMMITTEE AMENDMENTS:

      The committee amendments:

      adjust the definition of a “qualified assistance fund expense” to include any reasonable expense related to the improvement of public infrastructure in a commercial or transportation corridor in addition to transportation infrastructure;

      allow 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 any government agency in addition to the State Transportation Infrastructure Bank Fund; and,

      specify that up to 75 percent of any assistance funds, with the approval of the UEZ Authority, may be used to pay debt service related to the financing of the cost of a transportation infrastructure project cost or pledged toward the repayment of any loan for the cost of a transportation infrastructure project.