Sponsored by:
Assemblyman RAJ MUKHERJI
District 33 (Hudson)
SYNOPSIS
Establishes "Build Back Better Fund" in EDA for certain manufacturing business assistance; creates and funds two business assistance programs in New Jersey Redevelopment Authority; appropriates $165 million.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning certain business assistance, supplementing P.L.1974, c.80 (C.34:1B-1 et seq.) and P.L.1996, c.62 (C.55:19-20 et al.), and making an appropriation.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. As used in sections 1 and 2 of this act:
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 Build Back Better Fund established pursuant to section 3 of this act.
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 Build Back Better Program established pursuant to section 2 of this act.
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 manufacture or develop high capacity storage batteries, semiconductors, artificial intelligence-powered machines and robotics equipment, and medical technology equipment.
2. a. The New Jersey Economic Development Authority shall establish and maintain the Build Back Better Program for the purpose of providing financial assistance from the Build Back Better 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 Build Back Better Fund. The authority shall deposit in the fund the proceeds of the appropriation made to the authority, pursuant to section 6 of this act. 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 accept applications for assistance from the fund or make any payments from the fund after December 31, 2024.
c. Under the program, the authority shall provide financial assistance in the form of grants, loans, or loan guarantees ranging from $25,000 to $150,000 per qualified business as determined by the authority, depending on the market potential and long-term economic impact of a qualified business s new production capabilities on the State or regional economy. Each provision of financial assistance to a qualified manufacturing 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 meeting the eligibility criteria in the definition of a qualified business and any additional criteria as may be determined by the authority and shall 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, of the qualified business that includes 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.
(2) One year after the effective date of this act and on December 31, 2024, the authority shall prepare a report on the implementation of the program, and submit the report to the Governor and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), to the Legislature. 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 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 requires to ascertain the impact of the program on the economy of the State.
3. As used in sections 3 through 5 of this act:
Authority means the New Jersey Redevelopment Authority established pursuant to section 4 of P.L.1996, c.62 (C.55:19-23).
Lease program means the Small Business Lease Emergency Assistance Program established pursuant to section 4 of this act.
Nonprofit organization means a private nonprofit corporation that has been determined by the Internal Revenue Service of the United States Department of the Treasury to be exempt from income taxation under 26 U.S.C. s.501(c)(3).
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