Bill Text: NJ S543 | 2010-2011 | Regular Session | Introduced
Bill Title: Designated "New Jersey Economic Development Promotion Act"; streamlines and reorganizes State economic development statutes in order to promote administrative efficiency.
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Introduced - Dead) 2010-12-13 - Motion To Table (23-16) (Buono) [S543 Detail]
Download: New_Jersey-2010-S543-Introduced.html
STATE OF NEW JERSEY
214th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2010 SESSION
Sponsored by:
Senator THOMAS H. KEAN, JR.
District 21 (Essex, Morris, Somerset and Union)
SYNOPSIS
Designated "New Jersey Economic Development Promotion Act"; streamlines and reorganizes State economic development statutes in order to promote administrative efficiency.
CURRENT VERSION OF TEXT
As introduced.
An Act providing for the reorganization of the State's economic development programs, supplementing and repealing various sections of statutory law.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. This act shall be known and may be cited as the "New Jersey Economic Development Promotion Act."
2. The Legislature finds and declares that:
a. It is essential that New Jersey remain in a competitive position relative to other states in order to retain and foster the expansion of business in the State, as well as attract new business investment;
b. Recently, the New Jersey Economic Development Authority and the New Jersey Commerce Commission merged, ending years of duplicative and inefficient economic policy, conducted separately by the two agencies, with less than satisfactory coordination;
c. To make New Jersey's economic development programs more effective, it is necessary for the Legislature to set forth a mission for the agency, establish clear economic development goals, based on sound data and a thoughtful analysis of the State's ongoing needs, and to provide a mechanism to foster economic planning on a Statewide and regional basis in partnership with local economic development entities, both public and private;
d. To accomplish this, the State must establish a first-class program of assistance to support new businesses, the State's older manufacturing sector, small businesses, and women's and minority businesses, to establish an outreach program to key businesses in the State to determine their ongoing needs, and to provide a resource to encourage New Jersey businesses to utilize New Jersey-based suppliers of goods and services;
e. Because one of New Jersey's principal economic strengths is tourism, the State must maintain its competitiveness as a tourist destination by developing a heightened visibility for the State over a much broader target market area, and to survey, in cooperation and in partnership with local tourism organizations and the hospitality industry, the State's tourism assets both by geographical area and by tourism sector, in order to identify potential markets for the tourist attractions, and to establish a coordinated effort to market the State and its attractions through the establishment of a State tourism marketing plan;
f. In order to ensure continuing viable markets for New Jersey businesses and to encourage further investment in the State, the State must undertake a more aggressive international trade policy, seeking out and assisting businesses whose products or services can be marketed abroad, and it must also aggressively seek to attract foreign investment to the State, using the State's foreign trade offices as well as retaining foreign trade representatives to accomplish the dual tasks of representing the interests of New Jersey's businesses abroad and assisting in attracting foreign investment to the State;
g. Agriculture has traditionally been one of New Jersey's important economic sectors, and while the economic viability of farming has been undermined over the past several decades by rapid land development in the State, the State must approach agriculture as a significant part of the State's economy, affording it the same assistance as other businesses by providing technical help, encouraging the cultivation of specialty crops and applications of animal husbandry that meet market needs in this area and have the potential to extend the growing season, as well as providing the necessary financing;
h. In order to enhance the State's economic development program, it is therefore essential that the New Jersey Economic Development Authority and its Division of Business Assistance, Marketing, and International Trade, now the principal entity engaged in economic development, have a statutory mission set forth by the Legislature directed toward their taking a bolder and more innovative approach toward all aspects of the State's economic development, and that the funding for these activities within the authority comes from moneys generated by the authority's financing operations and by fees paid by users of the services that the authority and its component parts provide.
3. For the purposes of P.L. , c. (C. ) (pending before the Legislature as this bill):
"Authority" means the New Jersey Economic Development Authority created pursuant to section 4 of P.L.1974, c.80 (C.34:1B 4).
"Council" means the Council of Economic Advisors created pursuant to section 2 of P.L.1993, c.149 (C.52:9H-35).
"Division" means the Division of Business Assistance, Marketing, and International Trade within the New Jersey Economic Development Authority created pursuant to section 6 of P.L.2008, c.27 (C.34:1B-215).
"Institution of higher education" means an accredited university, college, or community college.
"JerseySource" means the JerseySource Supply Network, an Internet based listing of New Jersey suppliers of goods and services created by the division pursuant to section 15 of P.L. , c. (C. ) (pending before the Legislature as this bill).
"Manufacturing and production business resource center" means an institution of higher education or other qualified entity designated by the authority to provide assistance to manufacturing businesses pursuant to section 14 of P.L. , c. (C. ) (pending before the Legislature as this bill).
"New Jersey Development Authority for Small Businesses, Minorities' and Women's Enterprises" means the authority created pursuant to section 3 of P.L.1985, c.386 (C.34:1B-49).
"Office of International Trade and Protocol" means the office created pursuant to section 23 of P.L. , c. (C. )(pending before the Legislature as this bill), within the Division of Business Assistance, Marketing, and International Trade.
"Office of Development for Small Businesses and Women's and Minority Businesses" means the office established pursuant to section 17 of P.L. , c. (C. )(pending before the Legislature as this bill).
"Regional economic development partnership" means a partnership established pursuant to section 12 of P.L. , c. (pending before the Legislature as this bill).
"Technology transfer assistance program" means the program created pursuant to section 22 of P.L. , c. (C. ) (pending before the Legislature as this bill).
4. In addition to any other powers or duties prescribed by law, the Division of Business Assistance, Marketing, and International Trade shall, directly or through its several subdivisions, do the following:
a. Promote and encourage the location and development of new business, industry, and commerce in the State as well as the retention and expansion of existing businesses;
b. Prepare a comprehensive economic development policy in coordination with public economic development entities, local governments, private economic development corporations, and institutions of higher education to identify the needs of existing businesses, new businesses, and businesses that may newly locate facilities or operations in the State;
c. Conduct and maintain a business census to identify mature and growth industries, core industries, and industry clusters in the State, provide for the collection and analysis of all relevant information regarding business operations in the State, including workforce information, and, in cooperation with the Division of Labor Market and Demographic Research in the Department of Labor and Workforce Development, provide for the dissemination of economic information, including information about State and national economic trends to businesses in this State, in other states, and in foreign countries;
d. Maintain a marketing program to promote New Jersey as an optimum location for business and establish business recruiting programs to identify businesses, including foreign businesses, that may desire to move or benefit from moving to New Jersey, expand their operations in the State, or relocate within the State. The program shall be based on objectives included within a marketing effort undertaken by the division;
e. Provide services to businesses, including manufacturing businesses, growth industries, small and medium sized businesses, start up companies, and expanding businesses, including technical assistance, information on available technologies, information about supply sources located within the State, financing information, workforce training and retraining services, assistance in finding markets abroad, and access to other services that are essential to support business retention and business growth;
f. Encourage the development of centralized facilities, including, but not limited to, facilities for the processing or distribution of products of indigenous industries, including the fishing industry, aquaculture, and agriculture;
g. Maintain a network of outside resources, including, but not limited to, independent consultants or consulting organizations, institutions of higher education, and Small Business Development Centers to provide technical, educational, and other assistance to businesses within the State;
h. Establish a technology transfer assistance program to facilitate the dissemination of technology developed through State funded academic programs and state-subsidized technology businesses, and provide assistance to private businesses in transferring technology to commercial applications;
i. Cooperate with the Department of Labor and Workforce Development, institutions of higher education, and local and regional school districts to identify the educational and job training needs necessary to create a workforce to serve businesses in the State effectively;
j. Provide technical assistance and information to businesses directly or by means of referrals to private consultants or other federal, State or local agencies, institutions of higher education, public or private economic development organizations, regional economic partnerships, and others; and
k. Cooperate with municipal, county, regional, and other local agencies engaged in economic development.
5. The division shall establish an Office of Economic Research. The office shall establish a system for the ongoing collection and maintenance of data and shall provide an analysis of the economic, industrial, and demographic trends in the State, data on business sectors within the State, production, exports, and capital expenditures by business sector. In addition, the office shall utilize the resources of the Department of Labor and Workforce Development to collect economic data, track demographic and workforce information to ensure the availability of workers trained to meet the needs of existing businesses and the needs of businesses proposing to move operations into the State, and prepare and maintain such other data as may be recommended by the Council of Economic Advisors. The division may employ a qualified private consultant to establish the format of the database and perform all or a portion of the data collection and analysis. Data shall be collected and compiled both by region and Statewide. The office shall identify key business and industry sectors and identify small businesses, minority-owned businesses, women-owned businesses, and micro-businesses. Businesses shall be identified by type, in accordance with the North American Industry Classification System, by size, in terms of workforce or production, and by location, or any other factors deemed necessary. The office shall also conduct a survey of the State's economic infrastructure, including transportation and distribution facilities, utilities, and the telecommunications infrastructure.
6. The division, in consultation with the Council of Economic Advisors, the authority, local and regional public and private economic development organizations, local officials, businesses, and institutions of higher education, shall develop a strategic economic development plan designed to encourage economic growth on a Statewide basis as well as plans suitable for various economic regions of the State utilizing the data provided by the Office of Economic Research established by the division pursuant to section 5 of P.L. , c. (C. )(pending before the Legislature as this bill) and such other information from public or private sources as may be useful for the purpose. The strategic plan or plans shall be reviewed periodically and updated as necessary. The purpose of the strategic planning shall be the optimization of the State's economic development efforts by allocating available resources effectively in accordance with specific goals.
7. a. The division shall establish a single contact point for businesses seeking the services provided by the division and the authority, which shall coordinate and monitor the assistance to businesses provided by the authority, the division, the division's network of outside resources, or other agencies of the State, its instrumentalities, public or private economic development organizations, or other sources.
b. The division shall provide and distribute an information kit, in electronic form or otherwise, as may be practical and appropriate, to be distributed to client businesses. The information kit shall provide information on the services provided by the division and the authority, an application for an Employer Identification Number, information on the various forms of financial assistance that may be available, and information on legal requirements imposed by the State, including the provision of workers' compensation insurance, unemployment insurance, temporary disability insurance, information on procuring public contracts, information on sources of labor, job training, and workforce development programs, and information on the JerseySource Supply Network.
c. The division shall serve as a central source of information on the availability of, and options for, meeting clients' financing needs. The division shall include the compilation and establishment within a database of all federal, State, local, and private sources of lending, including depository institutions, venture capital funds, other State, federal, and local financing programs, including loans and loan guarantees, grant information, the availability of local, State or federal tax credits, as well as the availability of subsidized facilities, including business incubator facilities. The division may refer clients needing financial assistance to appropriate sources of funding, including, but not limited to, preferred private lending institutions, the authority, the United States Small Business Administration, other federal, State, and local funding sources, or consultants specializing in obtaining capital.
8. a. The division shall provide assistance, on both a general and an individualized basis, to businesses within the State, including general information for businesses, information on economic trends, referrals to sources of financing, and workforce information. It shall conduct, on its own, or in cooperation with other organizations, including, but not limited to, institutions of higher education, small business development centers, and other departments or agencies of State or local government, regular seminars and programs throughout the State on topics of general interest to business, including management techniques, human resources administration, marketing, legal and regulatory issues, means of identifying and applying appropriate technologies, including information technology, financing options, and workforce development.
b. The division shall also provide businesses with customized technical assistance regarding issues specific to individual businesses. For this purpose, the division shall develop a network of consulting partners with expertise in providing various kinds of technical assistance most in demand by client businesses. The division may contract with private consulting organizations to secure discounted fees or otherwise favorable arrangements for the division's client businesses or may provide referrals to appropriate consulting organizations. The network shall include, but not be limited to, private consulting organizations, including nonprofit organizations, institutions of higher education, government agencies, regional or local economic development agencies, qualified Small Business Development Centers, and Manufacturing and Production Business Resource Centers.
9. The division's marketing program authorized pursuant to subsection d. of section 4 of P.L. , c. (C. )(pending before the Legislature as this bill) shall:
a. endeavor to position New Jersey as a State with immediate opportunities for relocation or expansion, targeting out-of-State business executives, skilled professionals, and the media, focusing on the positive aspects of the State's business climate;
b. pursue leads with respect to businesses that might be interested in locating in the State;
c. reach out to existing New Jersey businesses to encourage them to take full advantage of State support and funding programs and creating awareness of these programs among out of State businesses that may consider moving to the State;
d. emphasize the State's access to both domestic and international markets and the benefits of the State's infrastructure, including highways, railways, the telecommunications infrastructure, and port facilities;
e. provide information with respect to the State's available pool of workers and highly skilled employees, as well as its world class colleges and universities; and
f. incorporate in its marketing a consideration of quality of life issues, including the State's natural resources and proximity to major cities along the eastern seaboard.
10. In addition to any other powers or duties prescribed by law, the division shall:
a. assist in identifying required permits and application forms and provide instructions and contacts;
b. assist businesses in dealing with the governmental regulatory process on all levels of government, including permits and licensing and other regulatory matters;
c. assist businesses in coordinating regulatory requirements among multiple state departments and agencies and facilitate the resolution of regulatory problems;
d. refer clients as needed to firms specializing in regulatory issues to assist businesses on a temporary or ongoing basis; and
e. perform such other services as may be assigned to it by the authority, through the director of the division.
11. The division shall, with the assistance of local officials, if appropriate, or with public utilities that have a program to provide such information, establish a database of potential business sites covering a wide range of types of business and industry, including existing industry clusters, manufacturing industries, and existing facilities that may be rehabilitated, to assist businesses in site selection for new or expanded facilities, which may include information on acreage, environmental requirements, transportation facilities, available infrastructure, including telecommunications infrastructure, and zoning requirements.
12. County governments, municipal governments or any agency or instrumentality thereof, including county improvement authorities, municipal economic development entities, and public or private economic development organizations, or any combination thereof, may join together and enter into an agreement to establish a regional economic development partnership for the purpose of engaging in joint regional economic planning and formulating an economic development or redevelopment strategy, which may include, but not be limited to, assisting existing businesses, attracting new businesses, providing incentives to retain existing businesses in the region, redeveloping existing areas or facilities, and sharing costs of a project or projects.
Such a partnership may also include businesses, business organizations, educational institutions, nonprofit organizations, and other entities located within the region. Partnerships formed pursuant to this section may be registered with the authority and may cooperate with and utilize the economic development resources of the authority. If a constituent member of a partnership is a public entity within the jurisdiction of the Department of Community Affairs, the partnership agreement shall be submitted to that department for approval before it is certified by the authority. Every partnership agreement shall contain provisions for the creation of a board representing the members of the partnership to oversee the partnership's affairs.
Partnerships may be eligible for loans or any available matching grants in order to carry out marketing, advertising and promotional programs to further their activities, promote business growth and to assist existing businesses within the region.
Notwithstanding the foregoing, counties and municipalities, jointly or severally, may enter into an agreement other than a formal regional economic development partnership arrangement for the purpose of engaging in joint economic planning, implementing an economic development strategy, or any other economic development or redevelopment project or projects, including the sharing of the cost of the project or projects pursuant to a resolution or ordinance, as appropriate, adopted by the participating governing bodies. The joint agreement shall be submitted to the Local Finance Board in the Division of Local Government Services in the Department of Community Affairs for approval.
13. The division shall provide businesses with customized technical assistance regarding issues specific to individual businesses. For this purpose, it shall develop a network of consulting partners with expertise in providing various kinds of technical assistance most in demand by client businesses. The division may contract with private consulting organizations to secure discounted fees or otherwise favorable arrangements for the division's client businesses. The network shall include, but not be limited to, private consulting organizations, including nonprofit organizations, institutions of higher education, government agencies, regional or local economic development agencies, qualified small business development centers, and manufacturing and production business resource centers. Customized technical assistance provided by or through the division or its network partners, may include, but not be limited to:
a. preparation or assessment of a business plan;
b. analysis and management of accounting systems and inventory control systems;
c. assistance with respect to information technology, including:
(1) the development of state-of-the-art computer systems, including the installation of networks, and assistance in software engineering, and selecting software formulated for the specific needs of the business;
(2) optimizing the use of the Internet to further the business' informational and other needs, including the development of electronic business capability;
(3) security issues; and
(4) technical evaluation of the business' data collection capability and tools for data analysis, including financial analysis and quality control;
d. information on State or local statutory or regulatory requirements specific to the business, including environmental issues, and referral, when appropriate, to the division;
e. assistance with marketing and distribution issues; and
f. in conjunction with the Department of Labor and Workforce Development, compliance assessments and assistance with compliance matters, including federal Occupational Safety and Health Administration issues, and industrial or workplace hygiene assessments.
14. a. The authority may designate an institution of higher education or other qualified entity as a manufacturing and production business resource center to provide services and assistance to manufacturing businesses to assist them to modernize, maximize their efficiency, and expand their production through the development and commercialization of innovative products.
b. The authority shall grant this designation to any institution of higher education or other entity that meets qualifications established by the authority. The authority shall base the qualifications upon the ability of the institution or entity to provide specialized services and information to manufacturing and production facilities, which may include specialization in discrete aspects of the manufacturing and production process, or to provide more comprehensive services.
c. The division may refer a client to a manufacturing and production resource center or other organization qualified to provide services to small and mid-sized manufacturing businesses, which may include:
(1) product development assistance, including (a) preliminary technical evaluation and design and materials issues, (b) assistance in providing a connection with available research and development resources, prototype development resources, and product evaluation and testing resources, and (c) selection, implementation and optimization of available technologies;
(2) assistance in production planning and inventory control;
(3) assistance in identifying appropriate factory and office automation and modernizing production capacity;
(4) assistance in identifying sources of supply, including sources in this State through the JerseySource Supply Network;
(5) assistance in establishing a quality assurance program;
(6) assistance with market analysis and development, including, in conjunction with the Office of International Trade and Protocol, assistance in identifying export opportunities;
(7) assistance with distribution issues;
(8) assistance in developing the skills of the existing workforce or procuring skilled workers;
(9) referral to financing resources; and
(10) assistance in preliminary patent and trademark searches.
15. For the purpose of assisting existing businesses in the State to expand their markets for products or services within the State and develop new markets, the division shall create the JerseySource Supply Network, an Internet based information database, to permit New Jersey businesses to become members of the network in order to share information about their products or services in order to inform businesses, particularly within the State, of the availability of New Jersey-based sources of supply and to encourage the use of these sources. The JerseySource Supply Network shall be established on a subscription basis for suppliers interested in making the availability of their products or services known. The businesses subscribing to this service shall be listed by category and shall provide information with respect to the nature of the products or services available, the location of the business, transportation and shipping information, and contact information. The division shall publicize the JerseySource Supply Network in its promotional and informational materials and encourage its use by New Jersey based businesses. The cost of the subscription shall defray the cost of establishing and maintaining the network.
16. a. The division shall establish a business visitation program which shall conduct regular visitations of targeted New Jersey-based businesses to ascertain their ongoing needs, including, but not limited to, infrastructure issues, financing, and workforce development and training issues, and to identify areas in which State, regional, or local governments or local economic development programs may be of assistance. The division may establish the visitation program in connection with regional and local economic development agencies, volunteer associations of retired executives or other qualified persons to conduct visitations on behalf of the division.
b. The division shall identify key businesses to be targeted for periodic visitation in conjunction with the Council of Economic Advisors, local officials and local economic development agencies. Identification of the targeted businesses shall be made on the basis of pertinent factors, including, but not limited to, core industries, former clients of the division or the authority, businesses that have received either State or local assistance previously, the economic importance of the business or industry to the State, a region, or a locality, or the economic importance of the business or industry as a component of an identified industry cluster.
c. The visitation program shall be established in a manner that provides for the prompt referral of any issues identified as the result of the visitation contact with the business to an appropriate source for the provision of assistance, if needed, for ongoing monitoring until the issue or issues are resolved, and for a periodic follow up.
d. The division shall prepare an annual report on the visitation program, which shall be submitted to the members and the executive director of the authority, and the Council of Economic Advisors.
17. The Division of Development for Small Businesses and Women's and Minority Businesses, transferred to the Department of the Treasury pursuant to section 18 of P.L.2008, c.27 (C.34:1B-227), is hereby transferred to the authority and shall be established as the Office of Development for Small Businesses and Women's and Minority Businesses within the Division of Business Assistance, Marketing, and International Trade. The office shall provide assistance to eligible businesses that meet standards established by the State or federal government for the purpose of encouraging the establishment and growth of small businesses and those owned by women or minorities. The office may charge any fees to participating eligible businesses as are reasonable and necessary for the provision of technical or other assistance under P.L. , c. (C. )(pending before the Legislature as this bill) and may provide assistance directly, make referrals utilizing the network of partners providing technical assistance that is developed by the division, or contract with any person to provide technical or other assistance to eligible businesses on a discounted fee basis or otherwise, or refer clients to a certified Small Business Development Center, associations of retired business executives, or other entities.
18. The Office of Development for Small Businesses and Women's and Minority Businesses shall provide, or assist in providing, assistance with the following, in conjunction with, and using the resources of, the division and its partners through referrals to private consultants, institutions, small business development centers, and other providers of services, geared toward the particular needs of those businesses:
a. establishing a business plan;
b. researching markets or in market analysis and advice in advertising and marketing, including advice in selecting sales or other distribution channels;
c. financial planning;
d. bidding on government contracts and in meeting bonding requirements;
e. dealing with State departments, including the Department of the Treasury and other departments and agencies of State, federal, and local government;
f. procuring legal counsel;
g. referral to entities with expertise in financial analysis and accounting;
h. entering into franchise arrangements and license agreements;
i. accessing employee training and development programs;
j. establishing a human resources program within the business, including providing information on employee benefit programs;
k. referrals to private consultants, institutions, and other providers of services in accordance with the specific needs of the business;
l. employee training and development programs; and
m. in conjunction with the division, finding financing, including loans made under programs of the authority, commercial loans made by a banking institution, financing by state, local, and federal sources, including the United States Small Business Administration, and obtaining grants.
19. a. The division and the Office of Development for Small Businesses and Women's and Minority Businesses, in cooperation with small business development centers, shall conduct advertising and promotional campaigns to increase public awareness of the services provided by the office and shall prepare and disseminate research and other information useful to eligible businesses. An institution of higher education, including community colleges, a small business development center and private organizations or agencies may be certified by the office and the division, in consultation with a small business resource center, a women's business resource center, a minority business resource center, a micro-business resource center, or a combination thereof. A participating center shall engage in collaborative initiatives, including the provision of courses or seminars, as well as in individual projects with eligible businesses for the purpose of enhancing management skills, knowledge of available technology, including information technology, technology enhancement to assist in making the business more competitive and to promote business growth, marketing skills, financial management, and other skills needed to operate a business successfully. The office may cause to be established, in conjunction with institutions of higher education, an internship program for candidates for undergraduate and graduate degrees in business administration and related fields for the purpose of providing assistance to the division, the authority, and to businesses seeking assistance from the office.
b. The office shall maintain a telephone information line and an Internet site for the purpose of providing general information to the public about the office's services and other business assistance programs available to eligible businesses.
c. The office shall have the exclusive authority within State government to certify to public agencies the eligibility of a business to be characterized as a women's business or a minority business, except that when the certification procedure established pursuant to this section conflicts with a federal certification procedure that affects a State project in which the federal government participates, the federal certification shall take precedence. The office shall establish a unified procedure for the certification of a business as a minority business or women's business for the purpose of establishing eligibility to be characterized as a women's business or a minority business. To this end, the office shall:
(1) establish criteria to be used to determine the status of a business as a women's business or a minority business;
(2) provide a single form for application for certification, including instructions with respect to the certification procedure and any additional documents or information required to be presented for certification;
(3) conduct an independent examination into the information presented in the application and any accompanying material to determine the veracity of the information presented;
(4) monitor the status of certified businesses to ensure continued compliance with the criteria for certification;
(5) compile and make available to the State and any agency and instrumentality thereof a list of certified women's and minority businesses; and
(6) provide for the dissemination of information to interested parties and the public at large concerning the certification of a business as a minority or women's business.
20. The Office of Development for Small Businesses and Women's and Minority Businesses may require such information as is necessary for the certification of women's business and minority business, which shall include, but not be limited to:
a. The names and addresses of the owner, partners or shareholders, as applicable, and their respective percentage of equity ownership of the business;
b. The names and addresses of members of the board of directors, if the business is a corporation, the number of shares of stock authorized to be issued, and the number issued and the number held as treasury shares by the business;
c. The names and addresses of the officers of the business;
d. The names and addresses of investors with an equity interest in the business;
e. A copy of the articles of incorporation, bylaws, partnership agreement, other organizational agreement, or joint venture agreements, as applicable;
f. The ability of the business to be bonded, if known;
g. The affiliation of the business or any of its owners, officers or directors with any other business entity;
h. Certified financial statements and balance sheets;
i. Banking institutions or other financial institutions or intermediaries with which the business does business; and
j. Any other information necessary to provide certification by the office.
21. a. The Office of Development for Small Businesses and Women's and Minority Businesses shall be assisted by a Small Business Advisory Council, a Women's Business Advisory Council, and a Minority Business Advisory Council.
(1) The Small Business Advisory Council shall consist of nine members, who shall be appointed by the Governor with the advice and consent of the Senate, five of whom shall be persons who own or are affiliated with small businesses. Of the four remaining members, one shall represent local government.
(2) The Minority Business Advisory Council shall consist of nine members, who shall be appointed by the Governor with the advice and consent of the Senate, six of whom shall be members of a minority, one of whom shall have expertise in marketing, and one of whom shall have expertise in capital formation and small business finance.
(3) The Women's Business Advisory Council shall consist of nine members, who shall be appointed by the Governor with the advice and consent of the Senate, six of whom shall be women, one of whom shall have expertise in marketing or advertising, one of whom shall have expertise in capital formation or finance, and one of whom shall represent the Division on Women in the Department of Community Affairs.
b. Members of the Small Business Advisory Council, the Minority Business Advisory Council, and the Women's Business Advisory Council shall serve without compensation but shall be reimbursed for necessary expenses incurred in the performance of their duties. The Governor shall designate from among each council's members a person to serve as chair. Members of each council shall serve for a term of three years; provided, however, that of the members first appointed, three shall be appointed for a one-year term, three shall be appointed for a two-year term, and three shall be appointed for a three-year term. Each advisory council established pursuant to this section shall meet at least six times a year.
c. The Small Business Advisory Council shall assist the office in the establishment of a financial and technical assistance policy for the office's small business program. The policy shall describe the proposed allocation of the resources of the office, and establish standards for eligibility for assistance and participation in the program established and operated by the office.
d. The Minority Business Advisory Council shall assist the office in the establishment of a financial and technical assistance policy for the office's program for minority business. The policy shall describe the proposed allocation of the resources of the office, and establish standards for eligibility for assistance and participation in the program established and operated by the office.
e. The Women's Business Advisory Council shall assist the office in the establishment of a financial and technical assistance policy for the office's program for women's businesses. The policy shall describe the proposed allocation of the resources of the office, and establish standards for eligibility for assistance and participation in the program established by the office.
22. a. The division shall create a technology transfer assistance program. Any person or business may apply to the division for assistance with the transfer of technology from the development stage to licensing for practical application, including licensing for patentable inventions, software and other forms of intellectual property.
b. The division may elect to contract with an existing technology transfer program at an institution or institutions of higher education or with another qualified entity to perform a portion or all of the duties provided for in subsections c. through f. of this section. If the division so elects, designation of such an agent to act on behalf of the division shall be made on the basis of competitive proposals and shall be based on the institution's comparative experience, effectiveness, and efficiency with respect to its existing technology transfer operations.
c. The division or its designee, as provided for in subsection g. of this section, shall conduct a patentability assessment and evaluation of existing products to determine the marketability of the technology or intellectual property. If the division determines that the technology can be protected by patent, the division shall conduct, or contract with another entity to conduct, a market assessment, including an estimate of market size and an assessment of potential licensees, as well as collecting other pertinent market and industry data. The division shall gather detailed information on potential licensees and an assessment of the potential licensees' product lines, production, marketing capabilities, if applicable, and financial status.
d. Upon the completion of the assessment, a patent strategy shall be developed, which may include designating other countries in which the division will assist in seeking patent protection. An agreement may be made for outside legal counsel to obtain patent protection, including the filing of the necessary forms, applications and documents.
e. Upon the successful obtaining of a patent, the division may provide assistance in conducting a marketing campaign, including the development of a licensing strategy and the production of marketing materials. Businesses interested in obtaining a license agreement shall sign a confidentiality agreement before confidential information regarding the patent is submitted for evaluation by the business. The division may provide assistance in negotiating a license agreement that guarantees that the technology or other subject of the patent will ultimately reach the marketplace. A license agreement shall include terms relating to initial licensing and other fees, patent costs, royalties, license maintenance, and a definition of the property rights conferred in the agreement.
f. The division may provide a referral to the applicant for an agent to continue to manage the relationship between the applicant and a licensee after a license agreement is executed; this may include monitoring the license, collecting fees, royalties and reimbursable expenses, and the maintenance of records of patent expenses and revenues.
g. The division or its subcontractor may assess the applicant for the actual cost of the patenting, licensing, or license management process, or upon agreement by both the applicant and the New Jersey Commission on Science and Technology established pursuant to P.L.1985, c.102 (C.52:9X-1 et seq.), may assume partial ownership of the license in lieu of the fee assessment. In the case of technology or intellectual property funded by grants or by persons who are employees of the State or any public entities and who developed the technology in the course of their employment, the division may elect to take a percentage ownership in the technology or other subject of the patent, the income from which shall accrue to the division.
23. The division shall establish an Office of International Trade and Protocol, whose purpose shall be:
a. To encourage and promote the identification, expansion and development of foreign export markets for New Jersey products and services;
b. To provide assistance to New Jersey businesses in developing international markets for their products or services; and
c. To encourage and promote foreign investment in New Jersey by maintaining contact with representatives of foreign governments and businesses on an ongoing basis.
24. a. Upon referral of a business to the division, the Office of International Trade and Protocol shall initially assist in determining, directly or through referral to consultants or other outside resources (1) the viability of the products or services proposed to be marketed in terms of potential demand in international markets upon preliminary identification of those markets; and (2) the existence of a reasonable probability that the business will be able to sustain and expand its export capability in the future.
b. The Office of International Trade and Protocol shall contract with appropriate consultants and advisors with expertise in all aspects of international trade, and may contract with an export trading corporation certified pursuant to the provisions section 3 of P.L.1995, c.275 (C.52:27H-22.9). The office, with the approval of the division, may contract with private consultants or consulting organizations or others to secure discounted fees or otherwise favorable arrangements for the office's client businesses. Client businesses of the office may be referred to the consultants, advisors, or other organization for any assistance as set forth in subsection c. of this section, and if directly provided assistance by the office, the client business shall be obligated to pay a reasonable cost for that assistance. Requests for assistance in financing trade transactions shall be referred to the authority or other appropriate lender. The office shall maintain a database of depository institutions and other lenders with experience in export financing. The office shall coordinate the export assistance being received on an ongoing basis and may, if appropriate, continue to review the client's export activities on an ongoing basis.
c. The Office of International Trade and Protocol may, either directly or through consultants or advisors, or with the assistance of State foreign trade offices, and the Bureau of Industry and Security and the International Trade Administration in the United States Department of Commerce, provide assistance to businesses, as necessary, including, but not limited to:
(1) Assistance in researching foreign markets, providing general market information, and developing an export strategy relative to the product or service proposed to be exported;
(2) Assistance with advertising, developing a marketing plan and marketing the product or service, and participation in trade fairs or trade missions;
(3) Assistance in placing bids with foreign buyers of goods or services;
(4) Assistance or information with respect to the pricing of goods to be exported, arranging the terms of sale and method of payment, and facilitating foreign exchange transactions;
(5) Assistance in arranging loans or loan guarantees to client businesses, including loans or guarantees from the authority, commercial banking institutions, foreign banking institutions, or the Export Import Bank of the United States, or assistance in obtaining bankers' acceptances pursuant to section 207 of Title II of the federal Export Trading Company Act of 1982, Pub.L. 97-290 (12 U.S.C. s.372);
(6) Assistance in arranging contracts for translating, interpreting, or other services to facilitate communication between exporters and foreign purchasers of goods or services, and legal assistance in arranging export trade transactions;
(7) Assistance in providing information with respect to the shipment of goods, including the preparation of appropriate shipping and collection documents, and referring businesses to sources for procuring appropriate insurance for international trade transactions, including marine and export credit insurance;
(8) Assistance in providing information in the preparation of appropriate shipping and collection documents;
(9) Assistance in arranging joint ventures with other exporting businesses or with a foreign entity or business;
(10) Assistance in applying for export trade related customized job training, through the Department of Labor and Workforce Development;
(11) Assistance in negotiating license or franchise agreements with foreign businesses; and
(12) Assistance in establishing a strategy and program for after sales service of exported products.
d. Assistance provided in accordance with subsection c. of this section directly by the office, other than the preliminary assessment of the viability of the business as an exporter, referral to sources of financing, and ongoing coordinating and monitoring of the services or assistance provided, shall be compensated by the client business on a no profit, no loss basis, which compensation shall include the cost of personnel and office overhead chargeable directly to the service or services provided.
25. The Office of International Trade and Protocol may establish an internship or job training program, cooperative work program or other program for students enrolled in a curriculum in a public or private institution of higher education in a subject related to the services or assistance provided by the office and for which knowledge of export trade will contribute to the work of the office or enhance the student's ability to find employment.
26. The Office of International Trade and Protocol shall establish a worldwide export assistance network of international offices and representatives. The network may include State trade offices established in a foreign country or independent foreign representatives located abroad, which may assist the office by:
a. Providing general support for in country trade initiatives, including identifying projects or businesses that have the potential to serve as a market for New Jersey businesses,
b. Identifying appropriate contacts with potential overseas trading partners for New Jersey businesses' products or services;
c. Assisting in obtaining translation and interpreter services within the country;
d. Assisting in providing information on foreign trade shows or organizing trade events within the country;
e. Assisting in organizing or facilitating trade missions; and
f. Identifying foreign sources that are potential investors in New Jersey.
27. a. The Office of International Trade and Protocol shall, in conjunction with the division, make arrangements for, and facilitate the use of, the Internet-based JerseySource Supply Network for the provision of an international trade lead service that provides businesses with trade leads and timely global sales opportunities generated by State foreign trade offices, foreign trade representatives, or otherwise. In establishing information on international trade on JerseySource, the office shall also provide links to information from the United States Department of Commerce, the Global Trade and Technology Network or its successor organization, and other appropriate sources.
b. The division shall conduct ongoing marketing programs to publicize its international trade services to businesses, through print, other media, and business organizations for the purpose of encouraging businesses in the State to explore the feasibility of marketing their goods and services in foreign countries. The division shall also engage in an outreach effort through the use of seminars and other programs, including meetings at which foreign trade representatives from foreign markets discuss the opportunities in those markets, in order to make businesses aware of the opportunities that exporting gives them to expand their markets.
28. a. There is created within the division a specialty agriculture development program to facilitate the diversification of agriculture in this State by encouraging the production and marketing of specialty agricultural projects to restaurants, local supermarkets, chain supermarkets, farmers markets, ethnic markets, and natural food stores. For the purposes of this section, "specialty agricultural products" includes, but is not limited to, foods such as salad greens mixes, micro greens, heirloom fruits and vegetables, herbs, exotic mushrooms, berries, cream, butter, artisanal cheeses, and specialized poultry and game, which may include produce and animal products produced in accordance with organic methods, but shall not be limited to organically produced products.
b. There is created a Specialty Agricultural Development Advisory Board to oversee the operation of the program. The board shall have nine members. Seven members shall be public members, appointed by the Governor. One of the public members shall be a member of the faculty of Cook College of Rutgers, the State University, one member shall represent the New Jersey Farm Bureau, one member shall be affiliated with the commercial lending division of a State or federally-chartered bank, one member shall represent the New Jersey Restaurant Association, one member shall represent the New Jersey Food Council, and two members shall be actively engaged in farming, one of whom shall be engaged in the production of specialty agriculture products. The Secretary of Agriculture and the director of the division shall be members ex officio. The Secretary of Agriculture shall be the chair of the board.
c. The advisory board shall recommend to the board of the authority a candidate for the position of director of the program. The candidate shall have experience in agriculture or in marketing in the food industry. The Department of Agriculture shall provide such staff assistance as may be necessary, in addition to any other staff appointed by the director of the program.
d. The advisory board shall monitor the operation of the program and make such recommendations to the director of the program, the director of the division or the authority, as may be necessary.
e. The purpose of the specialty agriculture development program is to assist farmers presently engaged in agricultural production and to support start up enterprises in devoting all or a portion of their operations to specialty agriculture in order to (1) utilize season extension techniques to maximize their productive capacity and income, and (2) encourage varietal diversification to meet the needs of restaurants, supermarkets and other retail food operations in the region.
f. The program, with the assistance of the division, the Department of Agriculture, and the authority, shall:
(1) Assist in the preparation of a business plan;
(2) Assist producers in adapting agriculture management techniques to specialty agriculture;
(3) In cooperation with the New Jersey Restaurant Association, establish a methodology for identifying farm products that are in demand, encouraging partnerships or relationships between chefs and restaurant managers and specialty farming operations and artisanal producers;
(4) Assist in identifying other buyers of specialty and artisanal products, including local markets, food brokers and distribution facilities in order to establish direct to retail marketing channels for producers;
(5) Assist in providing access to appropriate packaging facilities, if needed;
(6) Assist in facilitating marketing through Internet technology;
(7) If organic products are to be produced, assist in obtaining certification under the State or national organic certification program;
(8) Assist in identifying major producers of specialty agricultural products, whether or not located in this State, to facilitate, if appropriate, the implementation of a subcontracting arrangement between smaller New Jersey producers and major producers; and
(9) Assist producers in utilizing season extension techniques through the construction or use of greenhouses, cold frames or other structures.
29. The division shall assist farmers engaged in the production of specialty agricultural products, as defined in section 28 of P.L. , c. (C. )(pending before the Legislature as this bill), in obtaining financing for necessary infrastructure and other purposes, including, but not limited to, the construction or conversion of greenhouses and other structures necessary to develop or expand the production of specialty agricultural products. The office shall utilize the resources of the authority, commercial lenders and federal programs providing financial assistance to farming operations.
30. The operations of the division shall be funded by moneys generated from:
a. fees charged to the users of such services of the division as are directly provided by the division, as established by the board of the authority, which fees shall reasonably reflect the value of the services provided, and
b. the lending operations of the authority, which shall be structured to provide a margin of operating income sufficient to pay any expenses of the division in excess of the income from fees charged pursuant to subsection a. of this section.
31. The New Jersey Economic Development Authority shall adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), those rules and regulations that are necessary to implement the provisions of sections 1 through 30 of P.L. , c. (C. )(pending before the Legislature as this bill).
32. The New Jersey Commission on Science and Technology shall, in addition to performing the functions and duties and exercising the powers prescribed by P.L.1985, c.102 (C.52:9X-1 et seq.), provide such assistance as may be warranted to a business referred to it by the Division of Business Assistance, Marketing, and International Trade in the New Jersey Economic Development Authority. The commission shall also, if appropriate, refer its clients to the division for any support services supplied by the division or its subsidiary offices, including technology transfer assistance, pursuant to section 22 of P.L. , c. (C. )(pending before the Legislature as this bill).
33. In addition to performing the functions and duties and exercising the powers prescribed by law, the Division of Travel and Tourism in the New Jersey Department of State shall do the following:
a. Maintain New Jersey's competitiveness as a tourism destination by developing a heightened visibility of the State as a tourist destination over a broad market area and effectively coordinate the State's marketing efforts to promote tourism and coordinate the work of the tourism sectors designated and established by section 34 of P.L. , c. (C. )(pending before the Legislature as this bill), and foster a positive perception about the State by using advertising and public relations efforts;
b. Encourage the perception of New Jersey both as a sole destination and as a destination in proximity to other popular tourist destinations in the region through marketing;
c. Establish a Statewide, coordinated initiative to brand and market the State, both in general and by tourism sector and as a destination for conferences, trade shows or other business activities;
d. Conduct a survey of the State's tourism assets, by geographical area and by tourism sector;
e. Establish a comprehensive State tourism marketing plan, which shall include collaborative relationships with regional tourism and the hospitality industry, as well as marketing specialized tourism sectors such as recreational tourism, heritage tourism, eco-tourism, agricultural tourism, and the cultural, entertainment and amusement sectors;
f. Work to attract tourism attractions to the State, and assist tourism related business and industries in securing financing as necessary, including financing for expansion or refurbishment of existing tourism related businesses; and
g. Develop relationships with tour operators, travel organizations, special interest groups, and national and international travel guides and publications to increase awareness of New Jersey as a tourism venue.
34. a. The Division of Travel and Tourism shall identify tourist attractions in the State by tourism sector. Such sectors may include, but are not limited to:
(1) Heritage tourism, including colonial or Revolutionary War venues, historic towns and villages, sites related to the early Industrial Revolution in America, historic urban sites, and maritime and military history;
(2) Amusements and entertainment, which shall include cultural events, festivals, exhibits, theme parks, museums, and gaming;
(3) Attractions based on scenic beauty, including State parks;
(4) Sports tourism, including professional and semi-professional sports and family sporting opportunities such as water sports, fishing, skiing, and hiking;
(5) Retail tourism, including business districts of unusual or specialized interest and venues featuring specialized retailing, including but not limited to, antiques and outlet shopping;
(6) Agricultural tourism, including agricultural museums, farm tours, hayrides, and sites of agricultural interest, which may also include, in connection with the Department of Agriculture, promotion of New Jersey agricultural products, including New Jersey grown or processed comestibles, the New Jersey nursery industry, including specialty nurseries, and New Jersey wineries; and
(7) The meetings and convention market.
b. The division shall sponsor Statewide meetings of tourism officials and representatives of the tourist industry by tourism sector to encourage cooperation among regions, including joint marketing efforts.
35. The Division of Travel and Tourism shall contract with outside marketing experts after a competitive process for the purpose of establishing the marketing plan provided in subsection e. of section 33 of P.L. , c. (C. ) (pending before the Legislature as this bill) designed to market the State as a tourism destination. The marketing plan shall be completed no later than six months following the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill). The plan shall include, but not necessarily be limited to:
a. The identification of target geographic markets within the United States and abroad for the purpose of marketing New Jersey as a destination;
b. The establishment of a plan for the branding of the State as a destination, or extending existing branding to target markets;
c. The development of an overall advertising strategy in accordance with the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill), including national, regional and foreign advertising, a publications and communications strategy and an Internet tourism information system;
d. The development of a program, in concert with both public and private partners, including regional and local Chambers of Commerce, for Statewide and regional cooperative marketing;
e. The development of a uniform tourism signage program for a broad range of tourism activities, which may be by tourism sector or otherwise, in order to create readily identifiable tourist sites, including by tourism sector type, which shall be designed, fabricated and maintained in a consistent fashion. The division may create a fund to receive contributions from persons, businesses or organizations to develop uniform signage for each tourism sector, including directional signage and signs identifying specific sites, and provide the signs to the Department of Transportation, county and municipal governments, and specific tourism sites or districts;
f. The establishment of a database of potential travelers, including group travel organizations and tour operators, which shall be established and maintained by the Office of Tourism Research established by section 36 of P.L. , c. (C. ) (pending before the Legislature as this bill) with the cooperation of the hospitality and travel industry in the State;
g. The provision of information and assistance to tourism-related industries in obtaining financing for the enhancement of tourist attractions;
h. The development of a program designed to provide for (1) the distribution of information about New Jersey as a destination through a promotional and educational program, including familiarization trips for domestic tour operators, tour wholesalers, travel agents, and consumer and travel trade media, and (2) cooperation with airlines, hotel chains and individual hotels in arranging and promoting travel packages targeted to general travelers and travelers with interests in specific tourism sectors as identified in section 34 of P.L. , c. (C. )(pending before the Legislature as this bill); and
i. The identification of primary international markets to be utilized for the promotion of the State as a tourist destination, including the distribution of information and educational programs directed toward increasing the awareness of New Jersey within the international travel trade, including travel agents, tour operators and tour wholesalers. The plan shall include a program to encourage the promotion of New Jersey in travel packages offered by international airlines serving the New York, Philadelphia, and New Jersey markets, through promotional and sales materials tailored to target international markets, and through trade missions and trade shows.
The division may use the services of New Jersey trade offices overseas, other agents in the business of promoting the export of New Jersey products and services, or Visit USA Committee or similar committees or centers established under the aegis of the federal government.
36. a. There is created an Office of Tourism Research within the Division of Travel and Tourism, to coordinate ongoing research into the travel and tourism market, which research shall be utilized to develop the database provided for in subsection f. of section 35 of P.L. , c. (C. )(pending before the Legislature as this bill) to assist the State's tourism marketing activities. The database shall be established in cooperation with the hospitality and travel industries and individual tourist attractions, and may utilize any other appropriate data source, including census data, that is deemed useful. In order to maximize the effectiveness of the marketing plan and the execution of the plan, the research format shall seek to identify potential travelers by type, including age, interests, multicultural factors, travel interests, and travel goals, and identify core geographic markets for New Jersey's marketing activities. The research database shall be designed to incorporate those factors for a domestic population base within a minimum of a 500 mile radius of the borders of the State. The marketing plan shall have a mechanism for using the database to identify primary target audiences for:
(1) general statewide travel;
(2) regional travel, including travel to lesser known portions of the State;
(3) seasonal travel; and
(4) specialized travel interests in the tourism sectors identified in section 34 of P.L. , c. (C. ) (pending before the Legislature as this bill), as well as specialized short term weekend stays and family travel opportunities.
b. In addition to gathering data for the database, the Office of Tourism Research shall develop an effective methodology to conduct an ongoing survey of the effectiveness of New Jersey's travel and tourism marketing and media activities, including the branding of the State as a tourism destination, and consumer satisfaction and awareness of New Jersey as a tourist destination. The research format shall provide for the regular documentation of standard tourism indicators, including hotel occupancy rates, room rates, rental activity, seasonal fluctuation per travel sector or region, State park visitation rates, utilization of the top 15 tourism attractions in the State, and utilization of the State's visitor centers. The division may contract with a consulting organization or organizations to establish the underlying research format and conduct, update, and interpret the research.
37. The Division of Travel and Tourism shall issue a broad-based request for proposals for an advertising campaign to be conducted in accordance with guidelines established in the marketing plan. Advertising shall be directed toward:
a. A program focused on a well-integrated overall impact, consistent in message, utilizing television, newspaper, magazine and other print media, the Internet and radio;
b. In conjunction with the marketing plan, establishing the State's image as a premiere travel destination and showcasing the State's diverse attractions, including its history, scenic beauty, cultural and recreational opportunities, and broad array of vacation, business and cultural experiences that are available, so that there is established a positive and unique brand identification for the State as a whole over a broad base of potential tourists, both within and outside the United States; and
c. Focusing on markets throughout the United States and abroad, with an emphasis on domestic markets other than states contiguous to New Jersey that present opportunities for attracting travelers.
38. a. The Division of Travel and Tourism shall develop a program of joint effort marketing, leveraging the monies available for advertising through the use of cooperative advertising programs in conjunction with tourist industries, including the hospitality industry, non profit organizations for the promotion of tourism, local Chambers of Commerce, regional tourism agencies, and other private groups.
b. The advertising program shall work cooperatively with the groups set forth in subsection a. of this section in the preparation and distribution of official travel guides supported by the advertising of businesses in the tourism industry, which shall include Statewide and regional attractions, accommodations, sample itineraries, calendars of events, and special interest tourism. In addition, the advertising publication program shall include promotional materials, including publications supported by the advertising of relevant businesses and by funds that may be contributed by the division, directed toward target audiences with special interests, including destination marketing to the travel industry, convention and business tourism, historical tourism, sporting events, sports and recreation-oriented tourism, eco-tourism, and agricultural tourism. The division shall also cooperate with regional and local tourism agencies to promote special events through marketing to target audiences, using the division's database, media and the Internet.
39. a. The Division of Travel and Tourism shall, to facilitate the growth and expansion of tourist facilities and attractions, either directly or through the utilization of consultants with expertise in the field, provide assistance to persons or business entities, through seminars or individually, which assistance shall include, but not be limited to (1) resource management and development; (2) product development; (3) tourism business development; (4) identifying and positioning new tourism product lines through targeted marketing; and (5) assistance in obtaining the financing of improvements from commercial lenders, the authority or other sources, and of tourist attractions through such federal funding or other assistance as may be available, including, but not limited to, grants and direct improvements to natural resources and historic sites through programs of the United States Army Corps of Engineers.
b. The Division of Travel and Tourism shall establish educational and informational programs directed toward individuals or business enterprises that are (1) interested in starting and operating a tourism business; (2) considering investing in the State's tourism industry; or (3) wishing to expand an existing tourism operation.
40. a. Within the limits of available funds, the Division of Travel and Tourism may establish a program for financial assistance to public or nonprofit agencies that promote or provide services for tourism in the State, either in the form of grants or low interest loans. Any such funds so available shall be used to strengthen efforts to promote tourism in the State. The amount of any grant or loan shall be based on criteria that shall include, but not necessarily be limited to, the following:
(1) the geographical size and population served by the prospective grantee;
(2) the amount of matching funds from nongovernmental sources;
(3) an assurance that the proposal to be funded will be in addition to the work currently being done by the grantee;
(4) the demonstrated effectiveness of the grantee; and
(5) the integration of the grantee's tourism promotion plans with other private and public agency plans.
b. Funds provided as a grant pursuant to subsection a. of this section shall not be spent for travel, entertainment or the purchase of equipment to be used directly by the agency receiving the grant or loan. The amount of any grant made shall not exceed the amount received for the same purpose from private, nongovernmental sources.
41. a. The Department of Agriculture, in cooperation with the Specialty Agriculture Development Program established pursuant to section 28 of P.L. , c. (C. ) (pending before the Legislature as this bill), shall encourage farmers engaged in specialty agriculture to form cooperative groups organized to facilitate the raising, marketing and delivery of their produce.
b. The Department of Agriculture shall, through its "Jersey Fresh" program or otherwise, publicize in this State and elsewhere the availability of specialty agricultural products to target audiences, including restaurants, food markets, and farmers' markets.
42. The Specialty Agriculture Development Program shall identify consultants or private consulting organizations, state or national farmers' associations, as well as colleges of agriculture in this State or elsewhere, with expertise identifying specialty agricultural products that are in demand, and shall either contract with these parties to assist in developing appropriate production and management techniques, marketing methods, and other operational issues or provide a list of those parties to farmers so that they may contract directly with those parties for such assistance. The program may contract with private consulting organizations to secure discounted fees or otherwise favorable arrangements for the program's clients.
43. The following are repealed:
P.L.1993, c.197 (C.34:1B-62 et seq.);
Sections 1 through 4 of P.L.1995, c.206 (C.34:1B-70 through 34:1B-73);
Sections 6 through 10 of P.L.1995, c.206 (C.34:1B-75 through 34:1B-79);
P.L.1995, c.207 (C.34:1B-80 et seq.);
P.L.1995, c.208 (C.34:1B-88 et seq.);
P.L.1995, c.209 (C.34:1B-93 et seq.);
P.L.1995, c.293 (C.34:1B-107 et seq.);
Sections 1 through 10, 12, 14 through 24, and 26 through 28 of P.L.1981, c.122 (C.52:27H-1 through 52:27H-10 and 52:27H-12 through 52:27H-28);
Section 13 of P.L.1987, c.365 (C.52:27H-6.1); and
Sections 1 through 3 and 5 through 10 of P.L.1987, c.55 (C.52:27H-21.7 through C.52:27H-21.9 and C.52:27H-21.11 through 52:27H-21.16).
44. This act shall take effect on the 180th day after the date of enactment, but the New Jersey Economic Development Authority, the Department of Agriculture, and the Department of State may take such anticipatory administrative action in advance thereof as shall be necessary for the implementation of this act.
STATEMENT
During the past twenty years, New Jersey's economic development programs have become fragmented and, as a result, diminished in effectiveness. This is partly due to the fact that the State agency administering its programs has been substantially altered twice, first when it was separated from the then-Department of Labor and Industry, and secondly, when it was changed from a department to a commission. In addition, other agencies of government have undertaken significant economic development initiatives of their own, most notably the New Jersey Economic Development Authority ("authority"), created in 1974 to provide financing for businesses when traditional lending sources were either unable or unwilling to finance projects. The result of these developments has been a lack of continuity in the State's economic development activities and in many cases an inefficient duplication of efforts. In 2008, the New Jersey Commerce Commission was formally abolished and merged with the authority, thus uniting two of the principal sources of economic development planning and business assistance in the State.
The bill sets forth the mission of the Division of Business Assistance, Marketing and International Trade ("division") within the authority. The bill contemplates that the funding of the State's economic development activities would come primarily from income generated by the lending activities of the authority and by fees paid by the users of its services rather than from the State's General Fund. In order to ensure that the State's economic development programs operate at peak efficiency without the need to maintain a large bureaucracy to carry out the division's functions and to ensure that the programs provide for the highest quality in technical assistance and business support functions, the bill provides that the division maintain a network of outside resources, including independent consultants or consulting organizations with specialized knowledge of the various aspects of the division's scope of activities, as well as institutions of higher education and the State's existing small business development centers. The division would negotiate favorable fees from its network of consultants, which fees would be paid primarily by the division's client businesses.
The bill places an emphasis on overall strategic economic planning for the purpose of retaining businesses already located in the State, reconstituting a role that was formerly an integral part of the then-Department of Commerce and Economic Development in the 1980s. It also emphasizes encouraging the expansion of existing business and attracting new businesses; in the area of strategic planning for economic growth the State's efforts have heretofore been ineffectual, with the result that its economic development resources have not been optimally utilized. The bill creates the Office of Economic Research in the division, which would be required to establish a system for the collection of data and provide ongoing analyses of economic, industrial, and demographic trends in the State, as well as data on production, exports, capital expenditures by various business sectors, and jobs and employment projections. The data collection system would also identify key business and industry sectors and industry clusters and survey the state's economic infrastructure, including transportation and distribution facilities, utilities, and telecommunications networks. The Council of Economic Advisors would assist the division and the board of the authority in interpreting the data and in identifying important economic trends, problems, and economic development opportunities in the State. This essentially recreates a function of the Department of Commerce and Economic Development when it was initially established in the 1980's.
To further facilitate strategic planning and encourage more effective coordination of regional economic development activities, the bill provides that the division would consult with the Council of Economic Advisors and local officials, county and municipal economic development agencies, public or private economic development organizations and others. The bill provides that governmental entities and/or other groups may join together in regional economic development partnerships for the purpose of engaging in joint economic planning, defining an economic development strategy, assisting existing businesses, retaining businesses, or attracting new businesses.
An important part of every State's economic development activities is the provision of support services and technical assistance to businesses. New Jersey's efforts in this regard have fallen short of expectations, partly because of the lack of effective coordination among the various programs and lack of follow-up in the delivery of services; in addition, there has not necessarily been a pool of qualified people to provide the necessary assistance or support. This bill attempts to establish a more orderly process for providing assistance once a client company approaches the State. The bill requires the division to promote and encourage the development of new business in the State as well as to provide support for businesses that are already here. The division would prepare a comprehensive economic development policy in coordination with regional economic development partnerships and others.
The division would be the principal purveyor of economic development services to client businesses, carrying out the essential functions of the division's mission. The division would provide assistance on both a general basis through such things as sponsorship of seminars or the publication of educational material, or on an individual, customized basis. Customized technical assistance could range from assistance in the preparation or assessment of a business plan to assistance with management of accounting and inventory control systems, information technology systems, or identification of commercially available technologies, and with marketing and distribution issues. It is contemplated that much of this assistance would be provided through the division's network partners, including small business development centers, universities, and, particularly, private consultants, with the division monitoring its progress. The existing Office of the Business Advocate would continue to provide clients with assistance with respect to State regulatory issues, permitting, applications, or necessary licenses, and would refer clients to firms specializing in regulatory or other issues, if needed, to assist them on a temporary or ongoing basis.
While New Jersey, like many northeastern states, has experienced an exodus of manufacturing businesses, many manufacturers still do business in the State and there is potential to attract start-up manufacturing companies. For this reason, the bill provides for the designation by the authority of institutions of higher education or other qualified entities as manufacturing and production resource centers, whose principal function would be to assist client manufacturing businesses to modernize, maximize their efficiency, and expand their production. Presently, universities in the State do provide assistance in this regard, but there is no overall coordination among them or with State economic development programs. The division would be charged with referring appropriate clients to these centers. The centers would engage in collaborative initiatives with manufacturers for the purpose of establishing, applying, and deploying advanced manufacturing and production management techniques, including production planning, quality control, production facility and office automation, technology enhancement, and production strategies.
For the purpose of assisting existing businesses in the State to expand their markets for products or services within the State and develop new markets, the division would be charged with creating the JerseySource Supply Network in order to encourage the use of New Jersey-based suppliers. This network, based on a successful model in Pennsylvania, would be an Internet-based information database that would permit subscribing New Jersey businesses to provide information about their products or services to make other New Jersey businesses aware of the availability of sources of supply within the State.
Also based on a successful Pennsylvania program, the bill creates a business visitation program, in which the division would send teams to visit targeted businesses for the purpose of ascertaining their ongoing needs, including infrastructure issues, financing, and workforce development requirements and to identify areas in which State, regional, or local governments or local economic development programs may be of assistance. It is contemplated that these visitations would be undertaken in connection with regional and local economic development agencies, associations of retired executives, or other qualified persons not necessarily directly employed by the division.
Under the bill, the New Jersey Commission on Science and Technology would work closely with the division in order to provide more efficient and effective coordination between its activities and the economic development needs of its client businesses. Its existing functions will remain separate, although it is expected that it will refer its clients, if appropriate, to utilize whatever services provided by the division that would be useful.
The bill creates within the division a technology transfer assistance program to assist businesses and individuals in patenting and licensing of technology they develop. The bill permits that assistance to be given either directly or through subcontractors and, under certain circumstances, permits the division to participate financially in the proceeds generated by the technology transfer. This kind of financial participation in the products or services resulting from commission-assisted ventures is characteristic of similar offices in several other states.
The bill creates the Office of International Trade and Protocol in the division, a similar agency that existed in the former Department of Commerce and Economic Development. The authority will continue its role in financing or providing loan guarantees for export trade transactions. The role of the Office of International Trade and Protocol will be to encourage businesses in the State to explore the feasibility of marketing their products or services abroad and to provide technical assistance and support services to client companies. It is anticipated that because of the complex nature of international trade transactions, much of the assistance provided to businesses will be provided through consultants and advisors with specialized knowledge of foreign markets and possessing specialized skills such as translation services. It is also anticipated that the existing state foreign trade offices overseas will be better integrated into the State's overall export strategy and will also assist in attracting foreign investment and encouraging foreign companies to consider locating operations in the State. The bill provides that services provided by the office directly to client companies be paid for by companies on a no-profit, no-loss basis.
The bill also establishes program standards for the Division of Travel and Tourism ("DT&T") in the Department of State, some of which are taken from the programs of other states and the European Union, to make its operations more effective and broadly-based. While tourism has been a major part of the State's economy, it has not grown as much as would be expected, and some of the State's most popular tourist attractions, such as the shore area, show signs of obsolescence and decay in their present configuration. Moreover, marketing programs have neglected to emphasize tourism attractions that would attract a diverse demographic population and there has been little effort to reach much beyond the State's immediate geographical area to attract tourists from states that lack New Jersey's unique characteristics.
The bill attempts to address these issues in several ways. The DD&T would be required to conduct a comprehensive survey of the State's tourism assets, by geographical area and by tourism sector. The sectors would include heritage tourism, amusements and entertainment, attractions based on scenic beauty, sports tourism, retail tourism, agricultural tourism, and meetings and convention tourism.
The DT&T would be required to contract with outside marketing experts after a competitive process for the purpose of establishing a marketing plan to market the State as a tourist destination. This plan would have to include the identification of target geographic markets within the United States or abroad, the development of an overall advertising strategy that would include national, regional, and foreign advertising, a publication and communications strategy, and the development of a program of uniform tourism signage for a broad range of tourism activities, by tourism sector or otherwise. To assure ongoing effectiveness of the State's tourism program, the bill creates an Office of Tourism Research within the DT&T, which is to coordinate ongoing research into the travel and tourism market. The Office of Tourism Research is to create and maintain a database, in cooperation with the hospitality and travel industry, individual tourist attractions, and other sources; the research format would seek to identify potential travelers by type, including age, interests, multicultural factors, and travel interests to assist the State's marketing efforts. The Office of Tourism Research would also develop an effective methodology to conduct an ongoing survey of the effectiveness of the State's travel and tourism marketing and media activities. The bill provides for a broad-based request for proposals for an advertising campaign to be conducted in accordance with guidelines established in the marketing plan.
In addition, the DT&T would be required, either directly or through the use of consultants with expertise in the field, to provide assistance to persons or business entities through seminars or individually, on resource management and development, product development, tourism business development, identifying and positioning new tourism product lines through targeted marketing, and information on sources of financing for expansion or refurbishment of existing tourism-related businesses.
In order to take advantage of New Jersey's geographical location between the major markets of New York and Philadelphia and at the same time to support the significant economic contribution of the State's agricultural sector, the bill creates within the division a specialty agriculture development program. This program is designed to encourage the production and marketing of specialty agricultural products to restaurants, local specialty food markets and supermarkets, farmers markets, ethnic markets, and natural or organic food stores. The purpose of the program is to assist farmers presently engaged in agricultural production or start-up enterprises to use season-extension techniques to maximize their productive capacity and income, and to encourage varietal diversification to meet the needs of restaurants and retail food operations in the metropolitan area. The program would be developed in conjunction with the New Jersey Department of Agriculture and would be overseen by an advisory board; it would provide technical assistance, marketing advice, and assistance in financing.
Finally, the bill promotes administrative efficiency by repealing the "New Jersey Global Export Network Act," P.L.1993, c.197 (C.34:1B-62 et seq.); most of the "Micro-Business Development and Assistance Act," P.L.1995, c.206 (C.34:1B-70 et seq.); the "New Jersey Industry Sector Network Development Act," P.L.1995, c.207 (C.34:1B-80 et seq.); the "New Jersey Business Relocation Mission Private Partnership Act," P.L.1995, c.208 (C.34:1B-88 et seq.); the "Export Financing Opportunities Act," P.L.1995, c.209 (34:1B-93 et seq.); the "New Capital Sources Partnership Act," P.L.1995, c.293 (C.34:1B-107 et seq.); outdated sections of the "Department of Commerce and Economic Development Act, " P.L.1981, c.122 (C.52:27H-1 et seq.); and the statute establishing the Division of Development for Small Businesses and Women's and Minority Businesses, P.L.1987, c.55 (C.52:27H-21.7 et seq.).
