Tuesday, July 16, 2024
HomeBeyond ParsippanyWebber bill to stop subsidies to defaulting companies passes committee

Webber bill to stop subsidies to defaulting companies passes committee

PARSIPPANY – A bill sponsored by Assemblyman Jay Webber that would prevent companies in default from receiving additional state subsidies cleared the Assembly Commerce and Economic Development Committee.

The bill (S1576/A299) would bar awarding additional subsidies to a company that has failed to make repayments for 24 months on a previously awarded subsidized loan.

“The recent comptroller’s audit revealed that accountability is nearly nonexistent in New Jersey corporate subsidies programs,” said Webber (R-Morris). “Allowing defaulting companies to take new subsidies is not ‘economic development’; it’s corrupt cronyism at the expense of our citizens. At the very least, accountability must mean that a company that has defaulted on a taxpayer-subsidized loan and failed to keep its end of a bargain should be stopped from getting yet another subsidy.”

While current law prohibits the award of a subsidy when a company is in default on a prior subsidy loan, the statute does not spell out a timeframe of what constitutes default. This bill will revise the law to create a timeframe of 24 months.

The bill was approved by the Senate in December with a vote of 39-0 and now goes to the full Assembly.

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Frank L. Cahill
Frank L. Cahill
Publisher of Parsippany Focus since 1989 and Morris Focus since 2019, both covering a wide range of events. Mr. Cahill serves as the Executive Board Member of the Parsippany Area Chamber of Commerce, President of Kiwanis Club of Tri-Town and Chairman of Parsippany-Troy Hills Economic Development Advisory Board.
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