Bill Text: NJ S367 | 2024-2025 | Regular Session | Introduced
Bill Title: "Fusion Technology Industry Promotion Act"; establishes program to promote fusion technology industry and attract fusion technology businesses.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2024-01-09 - Introduced in the Senate, Referred to Senate Economic Growth Committee [S367 Detail]
Download: New_Jersey-2024-S367-Introduced.html
STATE OF NEW JERSEY
221st LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION
Sponsored by:
Senator JOSEPH PENNACCHIO
District 26 (Essex, Morris and Passaic)
SYNOPSIS
"Fusion Technology Industry Promotion Act"; establishes program to promote fusion technology industry and attract fusion technology businesses.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act providing for the promotion of the fusion technology industry in the State, and supplementing P.L.1974, c.80 (C.34:1B-1 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. P.L. , c. (C. ) (pending before the Legislature as this bill) shall be known and may be cited as the "Fusion Technology Industry Promotion Act."
2. The Legislature finds and declares that:
a. at the heart of fusion energy is the world's most famous equation, energy equals mass multiplied by the speed of light, squared, which captures the relationship between mass and energy; and
b. fusion is taking place in laboratories all over the world, including in New Jersey's Princeton Plasma Physics Laboratory, and is the process that powers the Sun and all the stars; and
c. fusion, unlike traditional nuclear reactors, combines small atoms together to release energy with the byproduct being helium gas; and
d. the key step, through engineering, is to turn this science into a commercial product to generate electrical power; and
e. it is important to the economy of this State that a public-private partnership be established to promote fusion technology-related industries in New Jersey and to attract fusion technology companies to the State.
3. As used in 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).
"Fusion industry development company" or "company" means a private corporation or limited liability company incorporated or organized for the purpose of attracting and retaining fusion technology businesses.
"Fusion technology business" means a business enterprise that conducts research or develops fusion technologies for commercial purposes.
"Limited liability company" means a company organized pursuant to the "Revised Uniform Limited Liability Company Act," P.L.2012, c.50 (C.42:2C-1 et seq.).
"New Jersey Commission on Science, Innovation and Technology" means the New Jersey Commission on Science, Innovation and Technology established pursuant to P.L.1985, c.102 (C.52:9X-1 et seq.).
"Private institution of higher education" means independent colleges or universities incorporated and located in New Jersey, which by virtue of law or character or license, are nonprofit educational institutions authorized to grant academic degrees and which provide a level of education which is equivalent to the education provided by the State's public institutions of higher education as attested by the receipt of and continuation of regional accreditation by the Middle States Association of Colleges and Schools, and which are eligible to receive State aid.
"Public institution of higher education" means Rutgers, The State University, the State colleges, the New Jersey Institute of Technology, Rowan University, Montclair State University, the county colleges and any other public university or college now or hereafter established or authorized by law.
4. a. The New Jersey Economic Development Authority, in consultation with the New Jersey Commission on Science, Innovation and Technology, shall establish a Fusion Technology Industry Development Program to promote the fusion technology industry in the State and to attract fusion technology businesses to the State.
b. The program shall: include research and information on commercial opportunities in fusion technology; provide technical and financial assistance to fusion technology businesses considering locating in New Jersey; regularly represent or assist in representing the interests of New Jersey-based firms in the national and international markets for fusion technology through conferences and seminars; provide New Jersey-based fusion technology businesses with customized technical, financial, and other assistance; and recruit capital investment in New Jersey to be applied to the fusion technology industry.
5. a. (1) The authority shall, notwithstanding any law to the contrary, invest moneys from business assistance programs administered by the authority, as may be available and which the authority deems appropriate for the purposes of P.L. , c. (C. ) (pending before the Legislature as this bill), in a fusion industry development company, provided that the authority investment in the fusion industry development company shall equal the amount of investments in the company that are received from all other sources. The fusion industry development company is to be incorporated or organized in a manner consistent with the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill). The authority's investment, together with investments, which may be made in the stock or interest of the company, by other public and private entities involved in fusion technology development shall, however, be at a minimum amount to be determined by the authority. Other public and private entities contributing to the minimum amount required and determined by the authority may include, but not necessarily be limited to, the Princeton Plasma Physics Laboratory, Princeton University and other private institutions of higher education, public institutions of higher education, and energy businesses. The moneys invested by the authority and other public entities shall be used for the purchase of stock or an interest in the company, provided that the class of stock or interest purchased by the authority and other public entities shall be of a type and character as to require the company to repay the investment of funds from the authority and other public entities prior to the repayment of funds from private sources, but in no event shall the amount of stock or interest purchased by the authority and other public entities exceed 59 percent of the total outstanding stock or total shared interest of the company. The authority is authorized in its discretion to sell or otherwise dispose of the stock or interest purchased by the authority, as shall be in the interest of the authority, but the authority shall sell or otherwise dispose of its stock or interest no later than 10 years after the date of purchase.
(2) Nothing in this act shall be construed to preclude the company from being organized as a limited liability company or to preclude the authority and other public entities involved in fusion technology development from purchasing an interest in a limited liability company provided that the interest purchased by the authority and other public entities shall not exceed 59 percent of the total shared interest of the company, and provided that the operating agreement of the company grants the authority and any other public entity the right to resign and receive a distribution, representing the fair value of the authority's or public entity's interest in the company, prior to the resignation of and distribution to any private members.
(3) In order to qualify as a fusion technology development company eligible to be the subject of an investment by the authority and by the other public entities involved in fusion technology development, a company shall:
(a) Have a board of directors or board of trustees appropriate to the form of incorporation or organization of the company consisting of: (i) the Chief Executor Officer of the authority, who shall serve ex officio; and (ii) representatives of fusion technology companies, fusion research institutions, and representatives of the private sector, who shall be selected by private stockholders or members, and who shall constitute the majority of the membership of the board.
(b) Retain the services of an independent commercial auditor to: (i) determine the extent to which funds made available to the company for its purposes have been expended in a manner that is consistent with the purposes of this act and the charter or operating agreement of the company; and (ii) prepare and submit to the Legislature, the State Treasurer, the authority and other public entities participating in the purchase of stock or an interest in the company, an independent certified statement annually containing the findings and determinations of the auditor.
(4) In connection with the investment of authority moneys in a company pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill), the company shall solicit other forms of support, such as grants from the federal government or from other public and private sources, and make available its stock or a shared interest for purchase by private entities.
b. (1) The company shall, as its purpose, attract fusion technology businesses to this State and work to retain, and provide services to, fusion technology businesses with operations in the State.
(2) The company shall also provide other development services to fusion technology businesses, as the company's board may from time to time approve.
(3) The company shall also be authorized to enter into agreements with academic, research, and financial institutions, to the extent feasible, in order to assist in the work of the company.
(4) The company shall actively solicit, to the extent feasible, the involvement of academic institutions, research institutions, private banks, other lending institutions, and the private insurance market to assist the company in providing the fusion technology industry development-related services required by eligible fusion technology businesses.
6. In order to effectuate the purposes of P.L. , c. (C. ) (pending before the Legislature as this bill), the authority, in consultation with the New Jersey Commission on Science, Innovation and Technology, shall analyze on an ongoing basis the state of the fusion technology industry in New Jersey, including, but not limited to, its strengths and weaknesses, opportunities and risks, emerging technologies, processes, and market niches, the commercialization of technologies, capital availability, education and training needs, and infrastructure needs.
7. a. The authority shall annually 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 shall set forth a complete operating and financial statement covering the operations of the authority under the program and audit information received from the fusion industry development company.
b. With the initial annual report, and every third year thereafter, the New Jersey Commission on Science, Innovation and Technology shall report to the Governor and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), to the Legislature, on its recommendations on how this State can better attract and retain fusion technology businesses.
8. This act shall take effect immediately.
STATEMENT
This bill requires the New Jersey Economic Development Authority (EDA), in consultation with the New Jersey Commission on Science, Innovation and Technology (commission), to establish a Fusion Technology Industry Development Program to promote the fusion technology industry in the State and to attract fusion technology businesses to the State.
The bill requires that the program: include research and information on commercial opportunities in fusion technology; provide technical and financial assistance to fusion technology businesses considering locating in New Jersey; regularly represent or assist in representing the interests of New Jersey-based firms in the national and international markets for fusion technology through conferences and seminars; provide New Jersey-based fusion technology businesses with customized technical, financial, and other assistance; and recruit capital investment in New Jersey to be applied to the fusion technology industry.
Under the bill, the EDA is required to invest moneys from business assistance programs administered by the EDA, as may be available and which the EDA deems appropriate for the purposes of the bill, in a fusion industry development company. The bill requires the EDA to invest in the company an amount that is equal to the investments in the company received from all other sources. The EDA's investment, together with investments by other public and private entities involved in the fusion technology development company, are to be at a minimum amount to be determined by the EDA. Other public and private entities contributing to the minimum amount may include, but not necessarily be limited to, the Princeton Plasma Physics Laboratory, Princeton University and other private institutions of higher education, public institutions of higher education, and energy businesses.
The moneys invested by the EDA and other public entities are to be used for the purchase of stock or an interest in the company, provided that the class of stock or interest purchased by the EDA and other public entities are to require the company to repay the investment of funds from the EDA and other public entities prior to the repayment of funds from private sources. The bill specifies that the amount of stock or interest purchased by the EDA and other public entities is not to exceed 59 percent of the total outstanding stock or total shared interest of the company. The bill also provides that the EDA may sell or otherwise dispose of the stock or interest purchased by the EDA, and further requires the EDA to sell or dispose of the stock or interest in the company no later than 10 years after the date of purchase.
The fusion technology development company is required to have a board of directors or board of trustees and retain the services of an independent commercial auditor. In connection with the investment of EDA moneys in the company, the company is required to solicit other forms of support, such as grants from the federal government or from other public and private sources, and make available its stock or a shared interest for purchase by private entities.
The EDA, in consultation with the commission, is to analyze on an ongoing basis the state of the fusion technology industry in New Jersey, including, but not limited to, its strengths and weaknesses, opportunities and risks, emerging technologies, processes, and market niches, the commercialization of technologies, capital availability, education and training needs, and infrastructure needs.
The EDA is to annually report to the Governor and, the Legislature. Each report is to set forth a complete operating and financial statement covering the operations of the authority under the program and audit information received from the fusion industry development company. With the initial annual report, and every third year thereafter, the commission is report on its recommendations on how the State can better attract and retain fusion technology businesses.
