Measure Would Require Full Repayment of Grant when Businesses Fail Meet Grant Requirements
(TRENTON) – Legislation sponsored by Assemblyman Whip Wilson, Speaker Sheila Y. Oliver and Assemblyman Craig Coughlin to require corporations qualifying for state development subsidy grants to repay the entire grant amount if a corporation fails to uphold grant terms continues advancing.
The bill was released Thursday by the Assembly Appropriations Committee.
“The intent of this legislation is to ensure that corporations hold up their end of the deal,” said Wilson (D-Camden/Gloucester). “Grant incentives encourage companies to move, build and grow here. We must make sure that they do exactly what they say they will do and fulfill the terms of the grant.”
“By offering incentives, we welcome corporations to bring their business to New Jersey,” said Oliver (D-Essex/Passaic). “More corporations who make New Jersey their home means more job opportunities and more support for families. This legislation would ensure our grant dollars are used wisely and corporations, honest.”
“This is a very simple concept – protect the investment by taxpayers,” said Coughlin (D-Middlesex). “We want to create jobs and spark economic development, but we also want to do it responsibly. This bill accomplishes both those goals.”
Under the bill’s (A-1393) provisions, if a private corporation that has received a development subsidy grant issued by a public entity of the state, and the corporation fails to uphold the terms of any grant agreement with that public entity, the corporation shall refund the full amount of the grant to the public entity.
The public entity issuing the grant would include provisions for the refund as part of an agreement to provide a grant and may pursue an action to collect the amount of the refund plus any attorney fees and other costs of the action.