Bill Text: NJ A576 | 2024-2025 | Regular Session | Introduced
Bill Title: Requires EDA to establish program providing grants to certain entertainment businesses; appropriates not less than $5 million.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced) 2024-01-09 - Introduced, Referred to Assembly Commerce, Economic Development and Agriculture Committee [A576 Detail]
Download: New_Jersey-2024-A576-Introduced.html
STATE OF NEW JERSEY
221st LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION
Sponsored by:
Assemblyman STERLEY S. STANLEY
District 18 (Middlesex)
Assemblywoman YVONNE LOPEZ
District 19 (Middlesex)
SYNOPSIS
Requires EDA to establish program providing grants to certain entertainment businesses; appropriates not less than $5 million.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act concerning the provision of grant funding to certain entertainment businesses, supplementing P.L.1974, c.80 (C.34:1B-1 et seq.), and making an appropriation.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. As used in P.L. , c. (C. ) (pending before the Legislature as this bill):
"Amusement ride" means any device within the meaning of "carnival-amusement ride," as defined under section 2 of P.L.1975, c.105 (C.5:3-32), and any other water-based recreational amusement, including all water slides, wave pools, and water parks.
"Authority" means the New Jersey Economic Development Authority established pursuant to section 4 of P.L.1974, c.80 (C.34:1B-4).
"Entertainment business operator" means any person that owns, leases, manages, or operates a qualified entertainment business.
"Fund" means "New Jersey Pandemic Entertainment Grant Program Fund," established pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature of this bill).
"Person" means a natural person, corporation, partnership, trust, or other entity and, in the case of an entity, "person" shall include any other entity which has a majority interest in that entity or effectively controls that other entity as well as the individual officers, directors, and other persons in active control of the activities of each entity.
"Program" means the New Jersey Pandemic Entertainment Grant Program, established pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature of this bill).
"Qualified entertainment business" means a business that is engaged in activities described in Code 713110 or 713120 of the North American Industry Classification System, as codified on or before April 1, 2020, and is a family entertainment center. A qualifying entertainment business shall demonstrate that a minimum of 50 percent of its revenue was from its indoor operations during the 12-month period beginning April 1, 2019. A qualifying entertainment business shall not include a business that received a grant through the Small Business Emergency Assistance Grant Program, the federal Restaurant Revitalization Fund program, or federal Shuttered Venue Operators Grant Program.
2. a. The New Jersey Economic Development Authority shall, subject to appropriation, establish a "New Jersey Pandemic Entertainment Grant Program," for the purpose of awarding grants to qualified entertainment businesses that experienced a reduction in gross revenue during the applicable business period, established pursuant to subsection b. of this section, due to significant forced closures and limited indoor capacity restrictions as a result of the COVID-19 public health emergency in effect pursuant to Executive Order No. 103 of 2020, or any extension thereof.
b. The applicable business period for a qualified entertainment business awarded grant funding, pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill), shall be the 12-month period beginning April 1, 2020.
c. The amount of any grant awarded to a qualified entertainment business shall be equal to 15 percent of the demonstrated reduction in gross revenue for each quarter of the applicable business period, established pursuant to subsection b. of this section, relative to the same quarter of the 12-month period beginning April 1, 2019, except that for:
(1) a qualified entertainment business that is 100 percent indoors, has over 125,000 square feet of indoor space, and has 10 or more amusement rides, the grant shall not exceed $750,000;
(2) a qualified entertainment business that is indoors and outdoors or indoors only, has not less than 75,000 and not more than 125,000square feet of indoor space, and has five or more amusement rides, the grant shall not exceed $350,000;
(3) a qualified entertainment business that is indoors and outdoors or indoors only, has not less than 25,000 and not more than 75,000square feet of indoor space, and has five or more amusement rides, the grant shall not exceed $150,000;
(4) a qualified entertainment business that is indoors and outdoors or indoors only, has not less than 10,000 and not more than 25,000 square feet of indoor space, and has three or more amusement rides, the grant shall not exceed $50,000; and
(5) a qualified entertainment business that is indoors and outdoors or indoors, has not less than 5,000 and not more than 10,000square feet of indoor space, and has one or more amusement rides, the grant shall not exceed $25,000.
d. Upon application to the authority, the chief executive officer of the authority shall award a grant to a qualified entertainment business that demonstrates an average minimum reduction of 50 percent of gross revenue over the entire applicable business period, established pursuant to subsection b. of this section. For any qualified entertainment business that is comprised of both indoor and outdoor operations, the entertainment business operator shall demonstrate a reduction of 50 percent of the gross revenue for the combined operations of the qualified entertainment business over the entire applicable business period.
e. In administering the program and the fund established pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill), the authority shall establish:
(1) procedures and timelines for applications for the program, approvals thereof, and the disbursement of grant funding from the fund to qualified entertainment businesses;
(2) reporting requirements for an entertainment business operator that has received grant funding through the program for the qualified entertainment business; and
(3) any other policies deemed necessary by the authority for the administration of the program and the fund.
3. The authority shall establish and maintain a fund, known as the "New Jersey Pandemic Entertainment Grant Program Fund," to provide grant funding to qualified entertainment businesses that participate in the program and to administer the program. The fund shall be credited with such monies as may be appropriated or made available to the authority for the purpose of the fund.
4. a. There is appropriated the sum of $5,000,000 from the General Fund to the New Jersey Economic Development Authority for deposit into the "New Jersey Pandemic Entertainment Grant Program Fund," established pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill).
b. In addition to the amounts appropriated pursuant to subsection a. of this section, the Legislature may appropriate such additional funds as may be necessary for the implementation of P.L. , c. (C. ) (pending before the Legislature as this bill). The New Jersey Economic Development Authority may also utilize other such funds as are available for implementation of P.L. , c. (C. ) (pending before the Legislature as this bill).
5. Notwithstanding any provision of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) or any other law to the contrary, the authority may adopt, immediately upon filing with the Office of Administrative Law and no later than the 90th day after the effective date of this act, such rules and regulations as the authority deems necessary to implement the provisions of this act, which regulations shall be effective for a period not to exceed 12 months. The regulations shall, at a minimum, set forth the requirements for application submissions, the criteria for application selections, and the permitted uses of loan proceeds. The regulations shall thereafter be amended, adopted, or readopted by the commissioner in accordance with the provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.).
6. This act shall take effect on the 90th day following enactment.
STATEMENT
This bill requires the New
Jersey Economic Development
Authority (EDA) to establish the "New Jersey Pandemic Entertainment Grant
Program" (grant program) to provide grants to qualified entertainment businesses,
as that term is defined in the bill. The bill also appropriates not less than
$5 million from the General Fund to support the program.
Grant Qualifications and Award Limits
Under the bill, the grants would be awarded for qualified entertainment businesses that experienced a reduction in gross revenue during the applicable business period due to significant forced closures and limited indoor capacity restrictions as a result of the COVID-19 public health emergency in effect pursuant to Executive Order No. 103 of 2020, or any extension thereof. The applicable business period would be the 12-month period beginning April 1, 2020.
The amount of any grant awarded to a qualified entertainment business would be equal to 15 percent of the demonstrated reduction in gross revenue for each quarter of the applicable business period, relative to the same quarter of the 12-month period beginning April 1, 2019, except that for:
1) a qualified entertainment business that is 100 percent indoors, has over 125,000 square feet of indoor space, and has 10 or more amusement rides, the grant would not exceed $750,000;
2) a qualified entertainment business that is indoors and outdoors or indoors only, has between 75,000 and 125,000 square feet of indoor space, and has five or more amusement rides, the grant would not exceed $350,000;
3) a qualified entertainment business that is indoors and outdoors or indoors only, has between 25,000 and 75,000 square feet of indoor space, and has five or more amusement rides, the grant would not exceed $150,000;
4) a qualified entertainment business that is indoors and outdoors or indoors only, has between 10,000 and 25,000 square feet of indoor space, and has three or more amusement rides, the grant would not exceed $50,000; and
5) a qualified entertainment business that is indoors and outdoors or indoors, has between 5,000 and 10,000 square feet of indoor space, and has one or more amusement rides, the grant would not exceed $25,000.
Upon application to the EDA, the EDA would be required to award a grant to a qualified entertainment business that demonstrates an average minimum reduction of 50 percent of gross revenue over the entire applicable business period. For any qualified entertainment business that is comprised of both indoor and outdoor operations, the entertainment business operator is required to demonstrate a reduction of 50 percent of the gross revenue for the combined operations of the qualified entertainment
business over the entire
applicable business period.
Application and Reporting Criteria
In administering the grant program, the EDA is required to establish procedures and timelines for applications for the grant program, approvals, and the disbursement of grant funding to a qualified entertainment business; reporting requirements for the qualified entertainment business; and any other policies deemed necessary by the EDA for the administration of the program.
Loan Fund and Appropriation
Finally, the bill appropriates $5 million from the General Fund to the EDA to support the operations of the grant program. These monies would be deposited into a fund, known as the "New Jersey Pandemic Entertainment Grant Program Fund," which the EDA would be required to administer for the purposes of the grant program.
