STATE OF NEW JERSEY
221st LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION
Sponsored by:
Assemblyman CHRIS TULLY
District 38 (Bergen)
SYNOPSIS
Creates grant program for business accelerator and incubator networks; transfers $1 million in societal benefits charge revenues to EDA to administer program.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act establishing a grant program for business accelerator and incubator networks, supplementing P.L.1974, c.80 (C.34:1B-1 et seq.), and amending P.L.1999, c.23.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. (New section) As used in sections 1 through 4 of P.L. , c. (C. ) (pending before the Legislature as this bill):
Advanced computing, advanced materials, information technology, and life sciences shall have the same meaning as provided in section 2 of P.L.1997, c.349 (C.54:10A-5.29).
Advanced technology center means programs or departments at the States public and private institutions of higher education which are provided financial support from those institutions of higher education to promote innovative technology research and are established pursuant to law, including, but not limited to, P.L.1985, c.102 (C.52:9X-1 et seq.), P.L.1985, c.103 (C.18A:64J-1 et seq.), P.L.1985, c.104 (C.18A:64J-8 et seq.), P.L.1985, c.105 (C.18A:64J-15 et seq.), and P.L.1985, c.106 (C.18A:64J-22 et seq.).
Angel investment means the non-refundable transfer of cash to an incubator business by an established business that is not a related person of the incubator business, the transfer of which is in connection with either:
a. a transaction in exchange for stock, interests in partnerships or joint ventures, exclusive or non-exclusive licenses, rights to use technology, marketing rights, warrants, options, or any items similar to those included herein, including but not limited to options or rights to acquire any of the items included herein; or
b. a purchase, production, or research agreement.
Authority means the New Jersey Economic Development Authority established by section 4 of P.L.1974, c.80 (C.34:1B-4).
Big data shall have the same meaning as provided in section 1 of P.L.2014, c.33 (C.52:17C-3.4).
Biotechnology, environmental technology, electronic device technology, and medical device technology, shall have the same meaning as provided in section 2 of P.L.1996, c.26 (C.34:1B-125).
Business accelerator or incubator means an individual or network of business development facilities, consisting of the provision of low-cost space and technical assistance, for short-term occupancy, to an incubator business employing selected technologies congruent with the strengths of the States public and private institutions of higher education. A business accelerator or incubator may include, but not be limited to, an advanced technology center or a technology extension service.
Grant program means the Business Accelerator and Incubator Network Grant Program established pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill).
Incubator business means a corporation, partnership, limited liability company, or sole proprietorship that is supported by private sources of capital, including, but limited to, private equity, angel investment, or venture capital that:
a. is in the formative stage of development;
b. is engaged in the design, development, and introduction of new biotechnology, information technology, re-manufacturing, advanced materials, processing engineering or electronic device technology products, or innovative manufacturing processes; and
c. meets any other requirements for an incubator business as the authority shall develop.
Support services means the provision of publicly or privately-supported, low-cost, short-term occupancy, rental space and technology extension services wherein financial and other types of business or technical assistance is provided to an incubator business by an a business accelerator or incubator.
Technology extension service means a program to accelerate the application and transfer of technological innovation by the State's public and private institutions of higher education to an incubator business, specifically to work with the State's incubator businesses to adapt these innovations to the requirements of individual business operations.
2. (New section) a. The authority shall establish and administer the Business Accelerator and Incubator Network Grant Program for the purpose of awarding grants to a business accelerator or incubator that provides support to incubator businesses that are located within a business accelerator or incubator in this State.
b. Grants may be made to a business accelerator or incubator in an amount as determined by the authority. The grant funds may be applied to:
(1) any aspect of the business accelerator or incubator that provides support to incubator businesses in the business accelerator or incubator as determined by the authority; or
(2) any aspect of an incubator business operating within the business accelerator or incubator.
c. In order to be eligible for a grant, a business accelerator or incubator at the time of application for program eligibility, shall provide proof that it is a business accelerator or incubator providing support to an incubator business that is in one of the following fields:
(1) clean energy or environmental technology;
(2) life sciences, biotechnology, or medical device technology;
(3) advanced materials, engineering, or manufacturing;
(4) supply chain, transportation, and logistics;
(5) big data, advanced computing, and digital technology;
(6) defense and homeland security; or
(7) food and agriculture.
d. A business accelerator or incubator and an incubator business seeking to participate in the grant program shall submit an application in a form and manner as the authority shall require. The application shall include information the authority determines is necessary to administer the grant program. An incubator business seeking to participate in the grant program shall submit to the authority documentation from the business accelerator or incubator hosting the incubator business that participation in the grant program will be a contributing factor towards the financial success of the incubator business.
e. The authority shall review and may approve an application for the grant program. The authority shall issue payment of the grant amount pursuant to a grant agreement with a business accelerator or incubator or an incubator business as the authority may determine and subject the approval of the agreement to the submission of proof by an approved grant applicant of the expenditures contributing to the success of an incubator business assisted by the business accelerator or incubator. A grantee who fails to comply with a grant agreement made as a condition of a grant award shall repay any grant amount received and, if so determined by