ASSEMBLY, No. 4304

STATE OF NEW JERSEY

219th LEGISLATURE

 

INTRODUCED JUNE 22, 2020

 


 

Sponsored by:

Assemblyman  WILLIAM F. MOEN, JR.

District 5 (Camden and Gloucester)

Assemblyman  GORDON M. JOHNSON

District 37 (Bergen)

Assemblyman  DANIEL R. BENSON

District 14 (Mercer and Middlesex)

 

Co-Sponsored by:

Assemblymen Verrelli, Conaway and Giblin

 

 

 

 

SYNOPSIS

     Creates “Manufacturing Reboot Program” in EDA to provide financial assistance to certain manufacturing businesses; makes $10 million appropriation to EDA.

 

CURRENT VERSION OF TEXT

     As introduced.

 


An Act establishing a “Manufacturing Reboot Program” in the New Jersey Economic Development Authority, supplementing P.L.1974, c.80 (C.34:1B-1 et seq.), and making an appropriation.

 

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

 

     1.    As used in P.L.    , c.    (C.        ) (pending before the Legislature as this bill):

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

     “Center” means the Business Action Center established in the Department of State pursuant to Reorganization Plan No. 003-2011.

     “Manufacturing equipment” means machinery, apparatus, or equipment used in the production of tangible personal property that is eligible for the sales tax exemption pursuant to section 25 of P.L.1980, c.105 (C.54:32B-8.13).

     “Manufacturing facility” includes, but is not limited to, a factory, mill, or plant at which more than 50 percent of the personal property housed in the facility is manufacturing equipment.

     “Program” means the “New Jersey Manufacturing Reboot Program” established pursuant to section 2 of P.L.    , c.    (C.        ) (pending before the Legislature as this bill).

     “Qualified manufacturing business” means a manufacturing business, as determined by the authority using the North American Industry Classification System of 2017 of codes numbering 311111 through 339999 and that, as of the effective date of P.L.    , c.    (C.        ) (pending before the Legislature as this bill):

     a.     operates a manufacturing facility in this State at which the manufacturing business:

     (1)   pays employees an average salary in excess of the existing average salary for the county, as determined by the New Jersey Department of Labor and Workforce Development, in which the manufacturing facility is located; and

     (2)   provides employees with health benefits under a health benefits plan authorized pursuant to State or federal law;

     b.    delivers products or services to customers outside the manufacturing business's local market area or demonstrates the capacity to do so; and

     c.     is organized for profit to perform a lawful, commercial function.

 

     2.    a.   (1)     The New Jersey Economic Development Authority shall establish the “New Jersey Manufacturing Reboot Program.”  The purpose of the program shall be to address the negative effect

the coronavirus disease 2019 pandemic has had on New Jersey manufacturing businesses.  The program shall be used by the authority to assist qualified manufacturing businesses as they develop new products or expand current manufacturing capabilities.

     (2)   The authority shall provide priority assistance to a qualified manufacturing business having reduced sales revenues  due to the economic effects of, and increased costs to, its business operations during the coronavirus disease 2019 pandemic, that is at risk of discontinuing its manufacturing operations in this State as determined by the authority, that is able to retool to produce products for the healthcare industry such as medical devices, personal protection equipment, or pharmaceuticals, especially any vaccine used to reduce the spread of the transmission of coronavirus disease 2019, and that is able to make adjustments for the qualified manufacturing business's capacity to manufacture a vaccine for that purpose.

     (3)   The authority shall provide assistance to a qualified manufacturing business deemed eligible by the authority upon application by a manufacturing business in a manner established by the authority.

     (4)   The authority shall provide assistance to a qualified manufacturing business only if the result of providing the assistance will yield a net positive benefit to the State that equals a percentage amount of a grant award determined by the authority.

     (5)   The authority shall work in conjunction with the center and State, local, and private business assistance entities to develop and promote the program.

     b.    (1)   Under the program, the authority shall provide assistance as grant awards ranging from $25,000 to $150,000 per qualified manufacturing business as determined by the authority, depending on the market potential and long-term economic impact of a qualified manufacturing business’s new production capabilities on the State or regional economy.  Each grant award to a qualified manufacturing business shall be revenue neutral to the State as determined by the authority.  A grant award may be used by a qualified manufacturing business for the purchase of manufacturing equipment, machinery used in a manufacturing process, or computer aided design or computer aided manufacturing equipment or software, for payroll expenses or costs, or for the training of new or existing employees, or both new and existing employees.

     (2)   A program application proposing new jobs creation shall improve an applicant manufacturing business’s chances of program application approval; however, the creation of new jobs shall not be required if the applicant manufacturing business can provide to the authority evidence that the approval of a grant award will expand sales, improve productivity, or increase diversification and capabilities of the applicant manufacturing business.

     3.    a.   A qualified manufacturing business shall provide to the authority quarterly reports verifying its employment levels and those expenditures from grant awards provided by the authority as determined by the authority.

     b.    The authority shall report annually to the Governor and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), to the Legislature on the functioning of the program and whether the program meets the needs of qualified manufacturing businesses.  The report shall include, but not be limited to, the number and locations of qualified manufacturing businesses participating in the program, the number of jobs created or maintained by those qualified manufacturing businesses, the amount of any capital investment made by qualified manufacturing businesses as a result of participation in the program, and the amount of any grants awarded to those qualified manufacturing businesses.

 

     4.    a.   There is appropriated from the General Fund to the New Jersey Economic Development Authority the sum of $10,000,000 solely for the award of grants to qualified manufacturing businesses pursuant to P.L.    , c.    (C.        ) (pending before the Legislature as this bill).  Of that $10,000,000 amount, $5,000,000 shall be used to provide grant awards to qualified manufacturing businesses manufacturing a vaccine used to reduce the spread of the transmission of coronavirus disease 2019, and that is able to make adjustments for the qualified manufacturing business's capacity to manufacture a vaccine for that purpose.  The remaining $5,000,000 shall be used to provide grant awards to qualified manufacturing businesses producing products for the healthcare industry such as medical devices, personal protection equipment, or pharmaceuticals that are not vaccines used to reduce the transmission of coronavirus disease 2019.

     b.    The authority is authorized to seek and accept gifts, grants, or donations from private or public sources for funding the costs of the program, except that the authority may not accept a gift, grant, or donation that is subject to conditions that are inconsistent with any other law of this State.

 

     5.    This act shall take effect immediately.

 

 

STATEMENT

 

     This bill establishes a New Jersey “Manufacturing Reboot Program” (program) within the New Jersey Economic Development Authority (EDA).  The purpose of the program is to address the negative effects the coronavirus disease 2019 pandemic has had on New Jersey manufacturing businesses.  The program is to be used

by the EDA to assist “qualified manufacturing businesses,” as defined in the bill, as they retool to develop new products or expand current manufacturing capabilities.  The EDA is to provide priority assistance to a qualified manufacturing business (manufacturing business) having sales revenues that have been reduced due to the economic effects of, and increased costs to, its business operations during the pandemic, that is at risk of discontinuing its manufacturing operations in this State as determined by the EDA, that is able to retool to produce products for the healthcare industry such as medical devices, personal protection equipment, or pharmaceuticals, especially any vaccine used to reduce the spread of the transmission of coronavirus disease 2019, and that is able to make adjustments for the manufacturing business's capacity to manufacture a vaccine for that purpose.

     The EDA is to provide a grant award to a qualified manufacturing business deemed eligible by the EDA upon application by a manufacturing business in a manner established by the EDA, and only if the result of providing the grant will yield a net positive benefit to the State that equals a percentage amount of a grant award as determined by the EDA.  The EDA is to work in conjunction with the Business Action Center and State, local, and private business assistance entities to develop and promote the program.

     Under the program, the EDA is to provide a grant award ranging from $25,000 to $150,000 per manufacturing business, depending on the market potential and long-term economic impact of a manufacturing business’s new production capabilities on the State or regional economy.  Each grant award is to be revenue neutral to the State, as determined by the EDA, and a grant award may be used by a manufacturing business for the purchase of manufacturing equipment, machinery used in a manufacturing process, or computer aided design or computer aided manufacturing equipment or software, for payroll expenses or costs, or for the training of new or existing employees.  A program application proposing new jobs creation will improve an applicant manufacturing business’s chances of application approval; however, the creation of new jobs is not to be required if the applicant manufacturing business can provide to the EDA evidence that the approval of a grant award will expand sales, improve productivity, or increase diversification and capabilities of the applicant manufacturing business.

     The bill requires a manufacturing business to provide to the EDA quarterly reports verifying its employment levels and expenditures using grant funds provided by the EDA as determined by the EDA and requires to EDA to report annually to the Governor and the Legislature on the functioning of the program and whether the program meets the needs of manufacturing businesses.

     The bill appropriates from the General Fund to the EDA the sum of $10 million solely for the awarding of grants to manufacturing businesses participating in the program.  Of that amount, $5 million is to be used to award grants to manufacturing businesses manufacturing a vaccine used to reduce the transmission of coronavirus disease 2019, or is able to make adjustments for the qualified manufacturing business's capacity to manufacture a vaccine for that purpose.  The remaining $5 million is to be used to provide grants to manufacturing businesses producing products for the healthcare industry such as medical devices, personal protection equipment, or pharmaceuticals that are not vaccines used to reduce the spread of the transmission of coronavirus disease 2019. The EDA may seek and accept gifts, grants, or donations from private or public sources for funding the costs of the program, except that the EDA may not accept a gift, grant, or donation that is subject to conditions that are inconsistent with any other law of this State.