New Jersey-2010-S2602-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 Title 34 of the Revised Statutes, and amending P.L.2010, c.35, the fiscal year 2011 annual appropriations act.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. (New section) a. As used in this act:

"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: (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 this State, (4) operates primarily within this State; (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.

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

b. 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.

c. 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.

d. 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.

e. No application for a small business matching grant shall 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.

f. A business seeking to participate in the small business matching grant program shall submit an application in such form as the authority shall require. Such application shall include such information as the authority shall determine is necessary to administer the grant program.

g. 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 that shall be 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.

2. (New section) a. The authority shall establish and maintain the program with moneys to be used by the authority for the purposes specified in this act. Moneys to be utilized by the program shall include, but not be limited to:

(1) such 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 4 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) such 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 this act; and

(3) such other moneys as may be made available.

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.

3. (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.

4. The following language provision in section 1 of P.L.2010, c.35, the annual appropriations act for State fiscal year 2011, 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

Notwithstanding the provisions of any other law or regulation to the contrary, receipts in excess of the amount anticipated and the unexpended balances at the end of the preceding fiscal year are appropriated to the Controlled Dangerous Substance Registration program for the purposes of offsetting the costs of the administration and operation of the program, 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.2010, c.35, s.1)

5. This act shall take effect immediately.

STATEMENT

This bill directs the New Jersey Economic Development 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" means 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. "Life sciences" is defined to mean 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 would be awarded to eligible small businesses that are primarily engaged in life sciences as determined by the authority. The program will 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) such other moneys as may be made available.

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.