Bill Text: NJ A2494 | 2016-2017 | Regular Session | Introduced
Bill Title: Creates grant program for newly established small businesses engaged in life sciences.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2016-02-04 - Introduced, Referred to Assembly Commerce and Economic Development Committee [A2494 Detail]
Download: New_Jersey-2016-A2494-Introduced.html
Sponsored by:
Assemblywoman PAMELA R. LAMPITT
District 6 (Burlington and Camden)
SYNOPSIS
Creates grant program for newly established small businesses engaged in life sciences.
CURRENT VERSION OF TEXT
As introduced.
An Act establishing a small business grant program for certain small life sciences businesses, transferring $2,500,000 for appropriation to support the program, supplementing P.L.1974, c.80 (C.34:1B-1 et seq.), and amending P.L.2015, c.63, the fiscal year 2016 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 this State, d. operates primarily within this State; e. employs no more than 225 full-time employees, or equivalent number of part-time employees, or equivalent number of a combination of full-time and part-time employees; and f. has been incorporated for less than three years.
"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 grant program for the purpose of awarding grants to eligible small businesses that are engaged in life sciences.
b. Grants may be made 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 is an eligible small business engaged primarily engaged in life sciences as determined by the authority.
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 determine 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 moneys to be used by the authority for the purposes specified in P.L. , c. (C. ) (pending before the Legislature as this bill). Moneys to be utilized by the program shall include, but not be limited to:
(1) moneys 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) moneys as may be available to the authority from other business development programs administered by the authority or other State agencies or authorities, and which 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 moneys as may be made available to the authority from public or private sources.
b. Moneys 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.2015, c.63, the annual appropriations act for State fiscal year 2016, is amended to read as follows:
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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.2015, c.63, s.1)
6. This act shall take effect immediately.
STATEMENT
This bill directs the New Jersey Economic Development Authority (authority) to establish and maintain a small business grant program for the purpose of awarding grants to eligible small businesses engaged in life sciences. "Eligible small business" is defined in the bill as a business entity that: (1) 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; (5) employs no more than 225 full-time employees, or equivalent number of part-time employees, or equivalent number of a combination of full-time and part-time employees; and (6) has been incorporated for less than three years. 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, 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. 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) of which up to $750,000 per year may be awarded as the authority determines is necessary in response to the demand for the program; (2) moneys as may be available to the authority from business development programs administered by the authority, or other State agencies, or authorities as the authority determines is necessary in response to the demand for the program; and (3) other moneys as may be made available to the authority from public or private sources.
Moneys 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.
