New Jersey-2022-A2224-Introduced

An Act establishing a small business matching grant program for small life sciences businesses, transferring $2,500,000 of certain expended balance for appropriation to support the program, supplementing P.L.1974, c.80 (C.34:1B-1 et seq.), and amending P.L.2021, c.133, the fiscal year 2021-2022 annual appropriations act.

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):

"Authority" means the New Jersey Economic Development Authority established by section 4 of P.L.1974, c.80 (C.34:1B-4).

"Eligible small business" means a business entity that: a. is independently owned and operated; b. is not dominant in its field of operation; c. is organized for profit with a place of business located in New Jersey; d. operates primarily within New Jersey; and e. does not exceed the applicable federal size standard for its industry as established under 13 C.F.R. Part 121.

"Life sciences" means the discovery, production, or development of medical equipment, ophthalmic goods, medical or dental instruments, diagnostic substances, biopharmaceutical products, or physical and biological research.

2. (New section) a. The authority shall establish and administer a small business matching grant program for the purpose of awarding grants to eligible small businesses that are engaged in life sciences.

b. Grants may be made on a matching dollar for dollar basis in the amount of federal grants received in accordance with subsection d. of this section to eligible small businesses up to a maximum of $250,000. The funds may be applied to any aspect of the business that supports its life sciences operations as determined by the authority.

c. In order to be eligible for a grant, a business, at the time of application, shall provide proof that it:

(1) is an eligible small business engaged primarily engaged in life sciences as determined by the authority; and

(2) has received a Phase II or post Phase II Small Business Innovation Research grant from a federal agency or a Phase II or post Phase II Small Business Technology Transfer Program grant from a federal agency, or equivalent small business innovation or small business technology transfer grant from a federal agency.

d. An application for a small business matching grant shall not be approved if:

(1) the business has raised $10,000,000 or more in total equity financing;

(2) the business is more than 50 percent owned by a parent company that is an operating or holding company and has raised $10,000,000 or more in total equity financing or has received $10,000,000 or more financing from the parent company; or

(3) the business is more than 50 percent owned by a parent that is determined by the authority to be an investment company, investment partnership, or investment fund and has received $10,000,000 or more in financing from the parent company.

e. A business seeking to participate in the small business matching 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.

f. 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 series of scheduled payments as the authority may determine and subject to the submission of proof by an approved applicant of the expenditures contributing to the retail investment. A grantee that 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 the authority, shall pay a penalty not in excess of 10 percent of the grant amount.

3. (New section) a. The authority shall establish and maintain the program established pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill) with monies to be used by the authority for the purposes specified in P.L. , c. (C. ) (pending before the Legislature as this bill). Monies to be utilized by the program shall include, but not be limited to:

(1) monies from the "Securities Enforcement Fund" account continued pursuant to section 15 of P.L.1985, c.405 (C.49:3-66.1), transferred to the authority pursuant to section 5 of P.L. , c. (C. ) (pending before the Legislature as this bill), that the authority determines are necessary in response to the demand for the program up to $750,000 per year;

(2) monies as may be available to the authority from other business development programs administered by the authority or other State agencies or authorities, which monies the authority determines to be necessary in light of the volume of applications from qualified businesses for grants under the program as necessary to implement the purposes of P.L. , c. (C. ) (pending before the Legislature as this bill); and

(3) other monies as may be made available to the authority from public or private sources.

b. Monies in the program which are not allocated for current responsibilities of the program may be invested by the authority in any direct obligations as to which principal and interest are guaranteed by the United States of America or any other obligation deemed appropriate by the authority.

4. (New section) The authority may adopt such rules and regulations pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) as may be necessary to effectuate the purposes of this act.

5. The following language provision in section 1 of P.L.2021, c.133, the annual appropriations act for State fiscal year 2021 - 2022, is amended to read as follows:

66 DEPARTMENT OF LAW AND PUBLIC SAFETY

80 Special Government Services

82 Protection of Citizens' Rights

DIRECT STATE SERVICES

The amount hereinabove appropriated for the Securities Enforcement Fund account is payable from receipts from fees and penalties deposited in the Securities Enforcement Fund pursuant to section 15 of P.L.1985, c.405 (C.49:3-66.1). Notwithstanding the provisions of any law or regulation to the contrary, an amount not less than that anticipated as General Fund revenue from receipts from fees and penalties collected by the Securities Enforcement Fund shall be transferred to the General Fund as State revenue by April 1. The unexpended balance at the end of the preceding fiscal year is appropriated to the Securities Enforcement Fund program account to offset the cost of operating this program and for use by the Department of Law and Public Safety to support departmental efforts related to suicide and violence prevention, fire safety, anti-gang activities, background checks and investigations required by law, critical equipment or facility needs, and unanticipated public safety or citizen protection needs, subject to the approval of the Director of the Division of Budget and Accounting; provided, however, that of such unexpended balances, the sum of $2,500,000 is transferred to the Department of the Treasury and is appropriated to the New Jersey Economic Development Authority for the small business grant program established pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill).

(cf: P.L.2021, c.133, s.1)

6. This act shall take effect immediately.

STATEMENT

This bill directs the New Jersey Economic Development Authority (authority) to establish and maintain small business matching grant program for the purpose of awarding grants to eligible small businesses engaged in life sciences that receive certain federal grants. The matching grants would be awarded on a dollar for dollar basis. "Eligible small business" is defined in the bill as a business entity: (1) that is independently owned and operated; (2) is not dominant in its field of operation; (3) is organized for profit with a place of business located in New Jersey; (4) operates primarily within New Jersey; and (5) that does not exceed the applicable federal size standard for its industry as established under 13 C.F.R. Part 121. The bill defines "life sciences" as the discovery, production, or development of medical equipment, ophthalmic goods, medical or dental instruments, diagnostic substances, or biopharmaceutical products, or physical and biological research.

Under the program, matching grants of up to $250,000 are to be awarded to eligible small businesses that are primarily engaged in life sciences as determined by the authority and have received a federal Phase II or post Phase II Small Business Innovation Research grant from a federal agency or a federal Phase II or post Phase II Small Business Technology Transfer Program grant from a federal agency.

The program is to be funded from: (1) $2,500,000 transferred from the Securities Enforcement Fund account established pursuant to section 15 of P.L.1985, c.405 (C.49:3-66.1), that the authority determines are necessary in response to the demand for the program up to $750,000 per year; (2) monies as may be available to the authority from business development programs administered by the authority, other State agencies, or authorities and which the authority determines are necessary in response to the demand for the program; and (3) other monies as may be made available to the authority from public or private sources.

Monies in the program which are not allocated for current responsibilities of the program may be invested by the authority in any direct obligations as to which principal and interest are guaranteed by the United States of America or any other obligation deemed appropriate by the authority.