TRENTON – Legislation that would require corporations qualifying for state development subsidy grants to repay the entire grant amount if a corporation fails to uphold grant terms was released Thursday by the Assembly Appropriations Committee.
“By offering incentives, we welcome corporations to bring their business to New Jersey,” said Assembly Speaker Sheila 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 Assemblyman Craig 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.
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