New Jersey Republicans criticized Assembly Democrats after lawmakers advanced A4077, arguing the measure unfairly targets businesses serving Delaney Hall while supporters say it increases oversight and funds community programs.
TRENTON, N.J. — The New Jersey General Assembly voted 57-22 Tuesday to advance Assembly Bill A4077, prompting criticism from New Jersey Republicans who argued the legislation imposes new taxes and fees on businesses connected to Delaney Hall while creating a fund they contend will benefit immigration detainees.
Lawmakers also rejected a floor amendment sponsored by Assemblywoman Dawn Fantasia that would have redirected the bill’s revenue to victims of crimes committed by people who are unlawfully present in the United States. The amendment failed on a 47-22 vote.
Republicans criticize Democrats’ priorities
Following the vote, the New Jersey Republican Party issued a statement accusing Democrats of targeting Delaney Hall through the legislation.
“Democrats just advanced A4077, 57-22, singling out Delaney Hall with new taxes while creating a fund to benefit detainees,” the party said in a social media post. “A tax on us, to benefit people who came in illegally or overstayed.”
The party also criticized lawmakers for defeating Fantasia’s amendment.
“Democrats also voted down Dawn Fantasia’s floor amendment 47-22 to send that money to victims of crimes committed by illegal immigrants instead,” the statement said. “That tells you everything you need to know about their priorities.”
The committee statement accompanying the bill does not state that the Societal Rehabilitation Support Fund is dedicated specifically to detainees or undocumented immigrants. Instead, it provides that the fund may support qualifying nonprofit organizations operating community-based programs related to food security, housing, recreation, job training, and youth mentorship.
What the legislation would do
As amended by the Assembly Appropriations Committee, A4077 establishes the Knowledge, Accountability, and Rights in Incarceration Markets Act and expands its scope beyond private correctional facilities to apply to certain for-profit correctional service businesses operating in New Jersey.
Those businesses, which provide services such as dining, laundry, maintenance, or transportation for criminal or civil detention facilities, would be subject to an annual operations fee equal to 8% of qualifying gross receipts or contract value with a public entity. The legislation also requires the Director of the Division of Taxation to assess a regulatory cost-recovery fee based on state oversight expenses.
In addition, qualifying businesses would pay a 3% correctional service business surtax on allocated taxable net income. Most of the revenue generated under the bill would be deposited into the Societal Rehabilitation Support Fund.
According to the committee statement, money from the fund may be appropriated by the Legislature to nonprofit organizations operating community-based programs focused on food security, housing, recreation, job training, and youth mentorship, including eligible faith-based organizations. Three percent of the surtax revenue would also be appropriated to state programs, the county where the detention facility is located, and the municipality providing police and fire services.
Committee amendments revised original proposal
The Assembly Appropriations Committee made several significant changes before advancing the legislation.
Among them, lawmakers broadened the definition of “correctional service business,” replaced an earlier proposed detention-related fund with the Societal Rehabilitation Support Fund, removed a proposed per-inmate fee in favor of a regulatory cost-recovery assessment, added provisions intended to avoid direct taxation of the federal government, and included a severability clause.
The bill now continues through the legislative process before it can become law.
Key Points
- The New Jersey Assembly approved A4077 by a 57-22 vote.
- Republicans said the bill unfairly targets businesses serving Delaney Hall and criticized Democrats for rejecting Assemblywoman Dawn Fantasia’s amendment.
- The legislation would impose new fees and taxes on qualifying correctional service businesses while directing most revenue to the Societal Rehabilitation Support Fund for community-based nonprofit programs.
Related: New Jersey, Assembly Bill A4077, Delaney Hall, Dawn Fantasia, New Jersey General Assembly