Bill > S2656

Introduced Session

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.

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Linda Greenstein (D)*,  Mike Testa (R)*, 

Introduced in the Senate, Referred to Senate Economic Growth Committee (on 02/12/2024)

Official Document