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A 5827

Relates to data privacy protection; establishes the privacy and security victims relief fund

2025 Regular Session Introduced by Michaelle Solages

Creates the New Jersey Innovation Authority to centralize state tech innovation, with a 13-member board and a Chief Innovation Officer to run operations and advise state agencies.

REFERRED TO SCIENCE AND TECHNOLOGY
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Bill Summary · A 5827

Summary — A5827 (Reprint ABU 6/27/25 1R)

Note on scope: The bill title you provided (data privacy / privacy and security victims relief fund) does not match the documents attached. The legislative documents supplied with A5827 concern (1) creation of a New Jersey Innovation Authority and (2) substantial amendments to New Jersey’s film and digital media content production tax credit program. This summary describes the provisions contained in those documents.

Purpose / intent

  • Establish a new New Jersey Innovation Authority to centralize technology innovation, advice, and implementation across State government.
  • Substantially revise and extend the State’s film and digital media content production tax credit program to expand incentives, clarify eligibility (including post‑production and visual effects), and restructure award caps and carryforward/transfer rules.

Key provisions

New Jersey Innovation Authority (from Assembly Appropriations Committee statement)

  • Creates the New Jersey Innovation Authority in, but not of, the Department of the Treasury as a State instrumentality.
  • Governing board of 13 members (9 public members with expertise in data science, digital technologies, product delivery, public engagement, etc.). Governor appoints the chair from public members.
  • Chief Innovation Officer (CIO) runs day‑to‑day operations; initial CIO appointed by Governor, thereafter by the authority. Authority may delegate hiring powers and hire staff/experts without regard to civil service.
  • Authority responsibilities: serve as primary State technology innovation authority, advise Executive Branch, provide centralized implementation/delivery services, and submit annual reports by March 31.
  • Procurement: purchases/contracts generally require public advertisement for bids with specified exceptions; authority may contract with and grant funds to nonprofit entities, including the National Center for Civic Innovation, Inc., to advance its purposes.

Film & Digital Media Tax Credit Changes (text and fiscal materials)

  • Extends program availability: current statutory expiration dates are moved from July 1, 2039 to July 1, 2049 (some documents list 2050 — see fiscal note inconsistency).
  • Increases base credit rates:
    • New Jersey studio partners: base credit raised from 35% to 40% of qualified film expenses.
    • Other taxpayers: various percentages apply (see bill text for tiering by category/location).
  • Additional credits: creates extra credit possibilities (up to roughly 4.5–5% in specific circumstances) for television-series relocation, hiring residents of designated areas, promotional/investment activities; total credits may be capped at up to 45% for some taxpayers.
  • Reality shows: relaxes a prior dual requirement so a reality show need meet either the vendor sourcing or $1,000,000 per‑production threshold, consistent with other film types.
  • Post‑production / VFX: defines “New Jersey film‑lease post‑production company” and “qualified post‑production company”; allows higher credit (40%) for qualified post‑production / VFX services performed at New Jersey film‑lease partner facilities, subject to minimums (e.g., $500,000).
  • Application / transfer / carryforward: clarifies when credit may be first claimed by certificate holders and transferees; provides flexibility to use credits in the tax period issued or subsequent periods without amending prior returns.
  • Remaining credits & availability: specifies procedures for certifying remaining credits and making up to $100 million of unused credits from prior years available to studio partners under certain conditions.
  • Recapture rules: recapture of credits may apply only to the initial recipient (not to subsequent purchasers/assignees); authority discretion in recapture for failure to meet occupancy or other commitments.

Fiscal impact

  • Office of Legislative Services (OLS) estimates an indeterminate annual State revenue reduction; actual impact depends on application volume, eligibility, and awarding discretion.
  • The bill establishes maximum annual tax credit award caps (as stated by OLS): up to $550M for New Jersey studio partners; up to $400M for New Jersey film‑lease production companies; up to $100M for other taxpayers; up to $130M for digital media content production (composed of base + discretionary components).
  • The bill restructures how caps are allocated (e.g., raising base allocations for studio partners beginning FY2026).

Affected parties

  • Film and digital media producers, New Jersey studio partners, film‑lease production and post‑production companies, visual effects firms, vendors/personnel hired in New Jersey (including targeted disadvantaged areas).
  • New Jersey Economic Development Authority (program administrator) and Department of the Treasury (oversight/coordination).
  • The newly created New Jersey Innovation Authority and entities contracting with it.

Procedural / timeline highlights

  • Introduced in Assembly: June 16, 2025 (sponsor: Asm. Michaelle C. Solages).
  • Referred to Science & Technology; reported and amended by committees (Appropriations; Budget).
  • Passed Assembly June 30, 2025 (62–16–1), with a subsequent substitution by S4618 (1R).
  • Companion bill: S4618; related prior-session bill: A6319.

For precise statutory language, eligibility criteria, percentage calculations, and cap mechanics, consult the bill text (Reprint ABU 6/27/25 1R) and the companion S4618.

Compiled from official sources — confirm details with the bill’s official record.

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