Bill Text: NJ S2307 | 2022-2023 | Regular Session | Introduced
Bill Title: Establishes "Global Economic Competitiveness and Supply Chain Resiliency Fund" in EDA for certain manufacturing business assistance; appropriates $82.5 million.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2022-03-21 - Introduced in the Senate, Referred to Senate Economic Growth Committee [S2307 Detail]
Download: New_Jersey-2022-S2307-Introduced.html
Sponsored by:
Senator LINDA R. GREENSTEIN
District 14 (Mercer and Middlesex)
SYNOPSIS
Establishes "Global Economic Competitiveness and Supply Chain Resiliency Fund" in EDA for certain manufacturing business assistance; appropriates $82.5 million.
CURRENT VERSION OF TEXT
As introduced.
An Act establishing the "Global Economic Competitiveness and Supply Chain Resiliency Fund" for certain manufacturing business assistance, 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):
"Authority" means the New Jersey Economic Development Authority established pursuant to section 4 of P.L.1974, c.80 (C.34:1B-4).
"Fund" means the "Global Economic Competitiveness and Supply Chain Resiliency Fund" established pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill).
"Principal business operations" means a location where at least 50 percent of the business's employees who are not primarily engaged in retail sales reside in the State, or a location where at least 50 percent of the business's payroll for employees not primarily engaged in retail sales is paid to individuals living in this State.
"Program" means the Global Economic Competitiveness and Supply Chain Resiliency Program established pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill).
"Qualified business" means a business that:
a. is registered to do business in this State with the Director of the Division of Revenue and Enterprise Services in the Department of the Treasury;
b. has its principal business operations located in the State;
c. intends to maintain its principal business operations in the State after receiving assistance from the authority under the program;
d. is engaged in a targeted industry; and
e. employs fewer than 250 persons at the time of the qualified investment.
"Targeted industry" means those businesses that are in the biotechnology industry and businesses that manufacture or develop high capacity storage batteries, electric vehicle batteries, semiconductors, artificial intelligence-powered machines, robotics equipment, advanced small modular reactors, micro-reactors, and medical technology equipment.
2. a. The New Jersey Economic Development Authority shall establish and maintain the Global Economic Competitiveness and Supply Chain Resiliency Program for the purpose of providing financial assistance from the "Global Economic Competitiveness and Supply Chain Resiliency Fund," established pursuant to subsection b. of this section, to those qualified businesses in a targeted industry as a catalyst for economic growth and to advance the competitiveness of the State's targeted industry businesses in the global economy.
b. The authority shall establish and maintain a dedicated, non-lapsing fund to be known as the "Global Economic Competitiveness and Supply Chain Resiliency Fund." The authority shall deposit in the fund the proceeds of the appropriation made to the authority, pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill). The authority may credit the fund with monies received from State, federal, or private sources of funds and may use those funds to provide financial assistance to qualified businesses in a manner consistent with federal law or the private source of funds. The authority shall not make any payments from the fund after December 31, 2025.
c. Under the program, the authority shall provide financial assistance in the form of grants, loans, or loan guarantees ranging from $25,000 to $1,500,000 per qualified business, depending on the market potential and long-term economic impact of a qualified business's new production capabilities on the State or regional economy, as determined by the authority. Each provision of financial assistance to a qualified business shall be revenue neutral to the State as determined by the authority.
Financial assistance may be used by a qualified business for the purchase of manufacturing equipment, machinery used in a manufacturing process, or computer-aided design or computer-aided manufacturing equipment or software, for employee payroll expenses or costs, or for the training of new or existing employees, or both.
d. (1) The authority shall establish an application process and determine the form and manner through which a business may make and file an application for certification as a qualified business. The authority may accept applications on a rolling basis or on one or more dates set by the authority.
(2) In order to receive financial assistance under the program, a business, at the time of application, shall provide proof that it is a qualified business, as defined in section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill), meet any additional criteria as may be determined by the authority, and enter into a financial assistance agreement with the authority.
e. (1) A qualified business that receives financial assistance from the authority shall annually report to the authority its financial information, audited by a certified public accountant, which shall include a consolidated summary of the performance of the qualified business. Any information about the performance of a qualified business shall be considered confidential and not subject to P.L.1963, c.73 (C.47:1A-1 et seq.), known commonly as the open public records act, or P.L.2001, c.404 (C.47:1A-5 et al.).
(2) One year after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) and on December 31, 2025, the authority shall prepare and submit a report to the Governor and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), to the Legislature concerning the implementation of the program. Each report required under this section shall include:
(a) the names and locations of qualified businesses receiving financial assistance;
(b) the type and amount of financial assistance given to each qualified business;
(c) the classification of each qualified business, according to the industrial sector and the size of the qualified business;
(d) the total number of jobs created or retained in the State by the qualified business after receiving the financial assistance and the average wages paid for those jobs;
(e) the balance of the fund as well as the amount of authorized assistance that has not yet been distributed and whether there is projected to be a fund balance at the end of the program; and
(f) any other information the authority determines is relevant to convey the impact of the program on the economy of the State.
3. There is appropriated from the General Fund to the New Jersey Economic Development Authority the sum of $82,500,000 to effectuate the purposes of section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill). If, as of January 1, 2026, there are monies remaining in the "Global Economic Competitiveness and Supply Chain Resiliency Fund," the authority shall transfer the remaining monies to the State Treasurer for deposit in the General Fund.
4. This act shall take effect immediately.
STATEMENT
This bill requires the New Jersey Economic Development Authority (NJEDA) to establish and maintain the Global Economic Competitiveness and Supply Chain Resiliency Program (program) and "Global Economic Competitiveness and Supply Chain Resiliency Fund" (fund). The NJEDA is to provide financial assistance from the fund to qualified businesses in a targeted industry businesses. Targeted industry businesses are those businesses that are in the biotechnology industry and businesses that manufacture or develop high capacity storage batteries, electric vehicle batteries, semiconductors, artificial intelligence-powered machines, robotics equipment, advanced small modular reactors, micro-reactors, and medical technology equipment.
Under the bill, the NJEDA is to deposit in the fund the proceeds of the appropriation made to the NJEDA. The NJEDA may also credit the fund with monies received from State, federal, or private sources of funds. The NJEDA may use those monies to provide financial assistance to qualified businesses in a manner consistent with federal law or the private source of funds.
Under the program, the NJEDA is to provide financial assistance in the form of grants, loans, or loan guarantees ranging from $25,000 to $1,500,000 per qualified business, depending on the market potential and long-term economic impact of a qualified business's new production capabilities on the State or regional economy, as determined by the NJEDA. Each provision of financial assistance to a qualified business is required to be revenue neutral to the State as determined by the NJEDA.
The bill requires the NJEDA to establish an application process. The NJEDA is to determine the form and manner through which a business may make and file an application for certification as a qualified business. The NJEDA may accept applications on a rolling basis or on a date set by the NJEDA. The NJEDA is not, however, to make any payments from the fund after December 31, 2025.
A qualified business that receives financial assistance is to annually report to the NJEDA its financial information, audited by a certified public accountant, which is to include a consolidated summary of the performance of the qualified business. Any information about the performance of a qualified business is considered confidential and not subject to the law known commonly as the open public records act.
The bill requires the NJEDA to prepare and submit two reports to the Governor and the Legislature on the implementation of the program. Each report is to include certain information as provided in the bill.
The bill appropriates $82,500,000 from the General Fund to the NJEDA to establish the fund and effectuate the purposes of the program.
On February 24, 2021, the Biden administration issued an executive order directing a 100-day review and strategy development process to identify and address vulnerabilities in the supply chains of four key product sectors, which are: semiconductor manufacturing and advanced packaging, large capacity batteries, critical minerals and materials, and pharmaceuticals and active pharmaceutical ingredients. This bill seeks to meet that mandate by providing financial assistance to qualified businesses in those targeted industries as a catalyst for economic growth and to advance the competitiveness of the State's businesses in the global economy.
