LEGISLATIVE FISCAL ESTIMATE TO

ASSEMBLY, No. 1432

STATE OF NEW JERSEY

DATED: April 1, 1996

      Assembly Bill No. 1432 of 1996 authorizes the Commissioner of Commerce and Economic Development to establish a pilot program to help small and medium-sized businesses engage in exporting through the designation and establishment of three small business export network centers, which will operate throughout the State to respond to the needs of small and medium-sized businesses.

      The bill authorizes the commissioner to act through the department or appropriate nonprofit entity to initiate contacts with various entities in the State to arrange for an appropriate entity or entities to operate the centers and to provide the office space, personnel, facilities and resources necessary for the operation of the centers. The arrangements to be entered into shall specify under what terms and conditions State guarantees and direct loans may be made available through the New Jersey Economic Development Authority to assist with the initial development of these centers.

      The bill further provides that the commissioner shall encourage the export network centers to support their activities with private industry membership fees and that the commissioner shall work with the centers to develop sufficient fee-based funding to enable the centers to operate without State loans or guarantees.

      The Office of Legislative Services (OLS) estimates that this bill will have no fiscal impact on the State budget, since the establishment of the small business export centers will utilize existing department personnel and services. Further, the bill anticipates that operation of the network centers may be delegated to a nonprofit or private entity or entities, such as the New Jersey Small Business Development Centers. The OLS also notes that the bill limits the type of State assistance that may be available to the centers to State guarantees and direct loans available through the New Jersey Economic Development Authority, which is supported by non-State monies, such as bond funds.

This fiscal estimate has been prepared pursuant to P.L.1980, c.67.