N.J. Admin. Code § 5:120-1.3

Current through Register Vol. 56, No. 23, December 2, 2024

Section 5:120-1.3 - Administrator of the Urban Enterprise Zone Program

(a) The UEZA shall administer the Urban Enterprise Zone Program through an Administrator and sufficient staff and operating procedures to ensure the proper operation of the program.

1. To enable the efficient operation of the Urban Enterprise Zone program, the Administrator shall develop a standard operational manual for use by the zones. It will detail the procedures, file maintenance, personal training and such other matters as the Administrator determines will facilitate that attainment of this objective. The manual shall be submitted to the UEZA Board for consideration and approval, and shall be implemented by the UEZA's field representatives. The standard operational manual shall serve as a guidance document to ensure uniformity, fairness and completeness in the procedures followed throughout the program and will list the documentation necessary for:

i. The zone boundary file, which shall include the approved zone map and zone boundary demarcation and all changes acted on by the UEZA;

ii. Each business's file, which shall contain:

(1) A copy of the certification and recertification applications;

(2) Documentation to substantiate that it is a "qualified business" and the zone's efforts to verify that information;

(3) All correspondence relating to the business;

(4) Copies of deed or lease;

(5) A copy of NJ Business Registration form (so-called "NJ-REG") and UZ-1; and

(6) An activity log for the file;

iii. A copy of each certification and recertification application package processed, with active business files separated from inactive business files in separate file cabinets;

iv. Ethics compliance files to demonstrate full compliance annually with 40A:9-22.1 et seq. (cited as the "Local Government Ethics Law"), and the regulations of the Local Finance Board in the Division of Local Government Services in the New Jersey Department of Community Affairs, which information has been summarized in tabular form and submitted by letter to the Administrator;

v. Files for the established financial status reports and complete documentation for all projects funded through zone assistance funds, which shall include the project proposals, all amendments, bid process documents and bids received, contracts, reimbursement requests and reimbursements received, and all correspondence;

vi. Personnel records and documentation of training for the zone coordinator and zone staff;

vii. Such other matters as may be dictated by statute or other rule; and

viii. Unless a longer period is required by the Open Public Records Act, 47:1A-1 et seq., (OPRA) or other statute, records retention shall be for seven years for accepted certification/recertification applications and all projects, and three years for rejected certification/recertification applications; and a log and file of all OPRA requests shall be maintained as provided by statute.

2. The Administrator shall develop a program for the required annual training of Zone Coordinators and zone staff, to include seminars and workshops throughout the year, to enable them to be in compliance in the operation of a zone. This program shall include a process for structured training and State certification of Zone Coordinators without which certification of the Coordinator the municipality shall not be in compliance and no project proposals, Certification/recertification applications or reimbursements may proceed. This program shall be submitted to the UEZA Board for consideration and approval, and shall be implemented by the Administrator, which shall include the following elements:

i. Eight hours of in-house training annually for all Coordinators by UEZA staff in the conduct of a UEZ office, including the standard operational procedures, documents, files, and related other areas;

ii. All Coordinators and key staff must attend the Coordinators' Workshops conducted periodically during the year by UEZA; and

iii. Coordinators must annually either attend instructional seminars offered by the UEZA consisting of one eight-hour or two four-hour sessions concerning current issues related to the operation of a UEZ; or, with prior approval of the Administrator, participate in one eight-hour or two four-hour training sessions conducted by a New Jersey professional institution of higher education in topics of equivalent relevance to UEZ program. The Administrator shall use the following criteria to determine equivalency:

(1) The course must have been organized and presented under the auspices of a recognized educational or professional institution;

(2) The course shall have included eight hours of class instruction for a full-day course, and four hours of instruction for a half-day course, not counting examinations. (Independent study, video or home study courses shall not be considered);

(3) Registrants in the course must have satisfactorily completed at least one written evaluation;

(4) Satisfactory completion of the course must have been based upon providing correct responses to no less than 70 percent of the questions on the evaluation;

(5) The course was completed within six months of the request for a waiver; and

(6) The content, topics and material of the alternate course shall be essentially the same as that of the required UEZA seminar or a topic relevant to the effective operation of an economic development office.

(7) Individuals requesting a course waiver from the Administrator shall be responsible for the following:

(A) Assuming all costs associated with the waiver;

(B) Obtaining a Waiver Procedures Form from the Administrator; and

(C) Submitting a course description, official transcript or certificate of completion and other required documentation, together with a completed Waiver Procedures Form, to the Administrator for review.

3. To maintain performance standards, the Administrator shall implement the system of sanctions set forth below in this paragraph against a zone which may be implemented by the Administrator. The Administrator shall submit this system of sanctions to the UEZA Board for consideration and approval. The system of sanctions shall include the following:

i. If a municipality changes or deviates from the scope or costs of an approved project without prior approval of the UEZA in accordance with the terms of the project contract, the municipality shall be denied reimbursement and will be solely responsible for the costs.

ii. If a Coordinator violates the standard procedures of the program, the Zone shall be sanctioned as follows:

(1) If the Coordinator deviates from program procedures, the Administrator shall have the authority to send a letter of reprimand to the Coordinator, with copies to the mayor and the city council. The Coordinator will have seven business days to submit a written letter of appeal to the Administrator.

(2) If a Coordinator approves and forwards a business' application for certification and it later proves that the business did not meet the stated requirements for certification (subject to appropriation), the local municipality's zone assistance fund will be responsible to make the business whole for taxes and penalties the business is assessed by the Department of the Treasury, Division of Taxation, for any UEZ tax benefits it improperly utilized.

(3) If an otherwise qualified business has become inactive or loses its certification, it is the responsibility of the Coordinator to notify that business by certified mail, return receipt requested, that they are no longer eligible to receive zone business benefits. If the Coordinator fails to so notify the business, and it is determined by the Department of the Treasury, Division of Taxation, that the ineligible business received a benefit they were not entitled to at the time (subject to appropriation), the local municipality's zone assistance fund will be responsible to repay any assessed taxes and penalties in addition to any remedies that the Division of Taxation may pursue.

N.J. Admin. Code § 5:120-1.3

New Rule, R.2009 d.331, effective 11/2/2009.
See: 41 N.J.R. 2372(a), 41 N.J.R. 4071(b).
Former N.J.A.C. 5:120-1.3, Application for zone business benefits, recodified to N.J.A.C. 5:120-1.4.