ASSEMBLY APPROPRIATIONS COMMITTEE

STATEMENT TO

ASSEMBLY, No. 1432

STATE OF NEW JERSEY

DATED: MAY 13, 1996

      The Assembly Appropriations Committee reports favorably Assembly Bill No. 1432.

      Assembly Bill No. 1432 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 shall specify under what terms and conditions State guarantees and direct loans may be made available through the New Jersey Economic Development Authority. 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.

FISCAL IMPACT:

      In the legislative fiscal estimate, the Office of Legislative Services stated that this bill will have no fiscal impact on the State budget due to the establishment of the export centers by utilizing existing department personnel and services. The legislation also anticipates the operation of the centers may be delegated to a non-profit or private entity or entities which may get support from membership fees. The bill also limits the type of State assistance that may be available to State guarantees and direct loans through the N.J. Economic Development Authority.