Establishes "Innovation Partnership"; provides funding for certain nonprofit partnerships to promote certain emerging technology businesses.

A2085

ASSEMBLY, No. 2085

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblywoman LINDA S. CARTER

District 22 (Somerset and Union)

Co-Sponsored by:

Assemblymen DePhillips and Tully

SYNOPSIS

���� Establishes "Innovation Partnership";
provides funding for certain nonprofit partnerships to promote certain emerging
technology businesses.

CURRENT VERSION OF TEXT

���� Introduced Pending Technical Review by Legislative
Counsel.

��

An Act

establishing the �Innovation
Partnership� to promote certain emerging technology businesses and
supplementing Title 52 of the Revised Statutes.

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

���� 1.��� a.� The Legislature
finds and declares that:

���� (1)�� New Jersey has been a
hub for pharmaceutical, technology, medical research, and other science-related
businesses for over a century;

���� (2)�� with the reestablishment
of the New Jersey Commission on Science, Innovation

and
Technology (commission), the State is refocusing its efforts on attracting and
fostering emerging technology business innovators so that New Jersey can
continue to lead the nation in the fields of science and technology; and

���� (3)�� the �Innovation
Partnership� shall work in tandem with the commission to fund these innovators
and to ensure they have the support to continue with their work in this State.

���� b.��� The Legislature further
finds and declares that:

���� (1)�� Beatrice Hicks, born in
Orange, New Jersey in 1919, was one this State�s most successful and important
scientists and engineers;

���� (2)�� by the age of 13, after
being inspired by the newly built Empire State Building and George Washington
Bridge, Ms. Hicks believed her calling was to become an engineer;

���� (3)�� a graduate of Orange
High School and the Newark College of Engineering, now known as the New Jersey
Institute of Technology, Ms. Hicks went on to be the first woman engineer
employed by Western Electric, where she pioneered the theoretical study,
analysis, development, and manufacture of sensing devices, developed
long-distance telephone technology, and invented a crystal oscillator that
generated radio frequencies used in aircraft communications;

���� (4)�� after working as an
independent consultant, she assumed several leadership roles at her father�s
company, the Newark Controls Company;

���� (5)�� Ms. Hicks served as
vice-president and chief engineer, and eventually president, of the Newark
Controls Company, where she developed environmental sensors for heating and
cooling systems that went on to be used in the United States� space program;
and

���� (6)�� Ms. Hicks co-founded the
Society of Women Engineers in 1950 after recognizing the lack of support and
encouragement women received to pursue an education in engineering.

���� c.���� The Legislature
therefore determines that, in honor of her trailblazing and independent spirit,
her innovations and leadership in science and engineering, and her
consciousness of the support needed to foster a community of innovators, this
partnership shall be established.

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

���� �Commission� means the New
Jersey Commission on Science, Innovation and Technology established pursuant to
section 3 of P.L.1985, c.102 (C.52:9X-3).

���� "Emerging technology
business" means a company that is doing business, employing or owning
capital or property, or maintaining an office in this State, and has qualified
research expenses paid or incurred for research conducted in this State, conducts
pilot scale manufacturing in this State, or conducts technology
commercialization in this State, in the fields of: advanced computing;
cybersecurity; financial information technology; advanced materials;
biotechnology; carbon footprint reduction technology; electronic device
technology; information technology; life sciences; agriculture; aviation;
medical device technology; mobile communications technology; renewable energy
technology; or any field determined by the commission.

���� �Fund� means the account
established pursuant to section 8 of P.L.��� , c.��� (C.����� ) (pending before
the Legislature as this bill).

���� �Innovation Partner� or
�partner� means a nonprofit organization certified or established and
incorporated by the commission pursuant to sections 4 or 5 of P.L.��� , c.���
(C.����� ) (pending before the Legislature as this bill).

���� "Minority" means a
person who is:

���� a.���� Black, which is a
person having origins in any of the black racial groups in Africa or the
Caribbean islands;

���� b.��� Hispanic, which is a
person of Spanish or Portuguese culture, with origins in Mexico, South or
Central America, or the Caribbean Islands, regardless of race;

���� c.���� Asian-American, which
is a person having origins in any of the original peoples of the Far East,
Southeast Asia, Indian subcontinent, Hawaii, or the Pacific Islands; or

���� d.��� American Indian or
Alaskan native, which is a person having origins in any of the original peoples
of North America.

���� "Minority emerging
technology business" means an emerging technology business owned and
controlled by a minority in which at least 51 percent of the ownership interest
is held by minorities and the management and daily business operations of which
are controlled by one or more of the minorities who own it.

���� "Nonprofit
organization" means a nonprofit organization that is incorporated as a New
Jersey nonprofit corporation pursuant to the �New Jersey Nonprofit Corporation
Act,� N.J.S.15A:1-1 et seq., is exempt from federal taxation pursuant to section
501(c)(3) of the federal Internal Revenue Code of 1986, 26 U.S.C. s.501(c)(3),
or other federal tax exempt status as the commission determines to be
appropriate, and may be established and incorporated by the commission for the
purpose of identifying and generating business opportunities and financial
assistance for emerging technology businesses.

���� �Private institution of higher
education� and �public institution of higher education� shall have the same meanings
as provided in section 2 of P.L.1985, c.103 (C.18A:64J-2).

���� �Research institution� means
any institution that conducts research and is approved by the commission for
the purposes of P.L.��� , c.��� (C.����� ) (pending before the Legislature as
this bill), which shall include, but not be limited to, private or public
institutions of higher education, research hospitals, or public or private
organizations within this State.

���� �Spin-out company� means a
company that was developed within a larger company or a private or public
institution of higher education that has become an independent company with
separate employees and assets.

���� "Woman" or
"women" means a female, females, or an individual or individuals
whose gender identity is female, regardless of race.

���� "Women's emerging
technology business" means an emerging technology business owned and
controlled by a woman in which at least 51 percent of the ownership is held by
women and the management and daily business operations of which are controlled
by one or more women who own it.

���� 3.��� a.� The �Innovation
Partnership,� to be administered by the New Jersey Commission on Science,
Innovation and Technology, shall be one or more independent nonprofit
organizations, working individually, in partnership with each other, and in
partnership with the commission, to advance the development of emerging
technology businesses in this State and to create supportive and collaborative
innovation ecosystems across New Jersey.

���� b.��� The goals and policies
of the partners shall include, but not be limited to:

���� (1)�� identifying, developing,
adapting, and implementing advanced technologies to enable the growth and
competitiveness of emerging technology businesses through technology
development, commercialization, and implementation;

���� (2)�� acting as regional
facilitators and managers for interactions, programs, and initiatives by and
among the commission, emerging technology businesses, economic development
organizations, the corporate community, private and public institutions of
higher education, research institutions, government, organized labor and other
interests working collaboratively to advance the development of specialized
innovation-based science and technology ecosystems in this State;

���� (3)�� directly providing, and
serving as the conduit to, early-stage and later-stage public and private
capital for emerging technology businesses;

���� (4)�� providing training or
technical assistance to help emerging technology businesses apply to federal
programs, such as the Small Business Innovation Research Program, under 15
U.S.C. s.631 and 15 U.S.C. s.638, for the purpose of attracting federal
investment funds to this State;

���� (5)�� developing, providing,
or supporting business incubation resources and space and facilitating the
development of emerging technology business campuses, including discounted
laboratory space to academic or executive emerging technology business spin-out
companies;

���� (6)�� coordinating marketing
efforts concerning existing State and local financial and material resources
for emerging technology businesses;

���� (7)�� establishing and
administering a research grant fund for the economic impact assessments of
technology development projects conducted by private or public institutions of
higher education that seek grant funding through the commission;

���� (8)�� establishing
partnerships to support and enhance the scale, scope, and impact of initiatives
that support the purpose and mission of the commission and the partners; and

���� (9)�� encouraging the
advancement, development, and support of minority and women�s emerging
technology businesses to expand diversity and opportunity within that sector,
with priority given to emerging technology businesses that demonstrate
diversity in ownership or leadership, as applicable.

���� 4.��� a.� The commission shall
select and certify, on a rolling basis in a timeframe determined by the
commission, one or more nonprofit organizations to serve as partners in the
�Innovation Partnership.� Each partner shall be responsible for one or more of
the following:

���� (1)�� the northern region of
the State having a primary, but not exclusive, focus on financial information
technology, cybersecurity, or a combination thereof;

���� (2)�� the central region of
the State having a primary, but not exclusive, focus on healthcare, life
sciences, biotechnology, or a combination thereof;

���� (3)�� the southern region of
the State having a primary, but not exclusive, focus on agriculture, aviation,
or a combination thereof; and

���� (4)�� the shore region of the
State, having a primary, but not exclusive, focus on renewable energy and
autonomous vehicles.

���� The commission shall establish
the exact geographical boundaries of the four regions of each focus.
Geographical boundaries may overlap and shall be drawn to allow for broad
inclusions of existing partner sites, research institutions, and innovation
ecosystems.

���� b.��� A nonprofit organization
established as of the date of enactment of P.L.��� , c.��� (C.����� ) (pending
before the Legislature as this bill), meeting at least one of the regional
focus requirements of subsection a. of this section, may submit to the commission
an application, in a form and manner determined by the commission, for
certification as a partner.

���� c.���� In selecting and
certifying a nonprofit organization as a partner, pursuant to subsection a. of
1
this
1

section, the commission shall give priority to:

���� (1)�� a nonprofit organization
with a board of directors or leadership, as applicable, demonstrating diversity
in ethnicity, race, or gender; and

���� (2)�� a nonprofit organization
with at least one location in a municipality that meets the criteria for State
aid pursuant to P.L.1978, c.14 (C.52:27D-178 et seq.).

���� 5.��� a.� If the commission is
unable to certify a nonprofit organization as a partner

pursuant
to subsection a. of section 4 of P.L.��� , c.��� (C.����� ) (pending before the
Legislature as this bill), the commission shall establish and incorporate an
independent nonprofit organization to serve as a partner for one or more
particular regional focuses.

���� b.��� The commission shall
appoint the board of directors of each partner established pursuant to this
section, in a number and manner to be determined by the commission, who shall
be experts in the field of focus of each partner, who shall represent the public
and private sectors, and who shall be appointed with due consideration to
reflect the ethnic, racial, and gender diversity of the community in which the
partner is located, including, but not limited to:

���� (1)�� one person representing
academia;

���� (2)�� one person representing
industry;

���� (3)�� one person having an
expertise in leadership and entrepreneurship in an emerging technology
business;

���� (4)�� one person representing
a research institution; and

���� (5)�� one person having an
expertise in investment, venture capital, or economic development concerning
emerging technology businesses.

���� A vacancy in the membership of
a board of directors shall be filled in the same manner as the original
appointment.

���� c.���� Upon the establishment
and appointment of the first board of directors of each partner, each board of
directors shall adopt bylaws setting forth the structure, offices, powers, and
duties of each partner.

���� d.��� The commission may
modify or revoke a partner�s certification as a partner if the commission
determines, after receiving information submitted pursuant to section 7 of
P.L. , c. (C. ) (pending
before the Legislature as this bill), the partner does not achieve the goals or
does not implement the policies of section 3 of P.L.��� , c.��� (C.����� )
(pending before the Legislature as this bill).

���� 6.��� a.� A partner may apply
to the commission, in a form and manner determined by the commission, to
receive grant funds from the �Innovation Fund,� established pursuant to section
8 of P.L. , c. (C. )
(pending before the Legislature as this bill), to implement the policies of
section 3 of
P.L. , c. (C. )
(pending before the Legislature as this bill). The commission, upon approving a
grant application submitted by a partner pursuant to this subsection, shall
sign a grant agreement with the partner, which shall permit the partner to
execute the goals and policies of section 3 of P.L.��� , c.��� (C.����� )
(pending before the Legislature as this bill) only if matched by private sector
funds on a minimum basis to be established by the commission.

���� b.��� Upon receipt of a grant
pursuant to subsection a. of this section, a partner shall implement the terms
of the grant agreement. Failure to comply with the grant agreement shall result
in the forfeiture of the grant.

���� 7.��� A partner shall annually
submit the following information to the commission:

���� a.���� the partner�s current
mailing address, telephone number, and electronic mail address;

���� b.��� a copy of the partner�s
current bylaws;

���� c.���� a list of the partner�s
current officers, directors, and staff;

���� d.��� an independent audit
covering all funds received from the State and funds received from State
support, such as paybacks, reimbursements, investment returns, fees for
services, cash reserves, interest, return of depreciation, and any other
similar forms of income that result at least partially from initial expenditure
of State funds. The audit shall include all of the communications between the
auditors and the managers of the partner. The audit shall be conducted in
accordance with appropriate government auditing standards and shall be a public
record;

���� e.���� upon the commission�s
request, an independent audit covering all funds received and partner
activities supported by non-State funding sources; and

���� f.���� any other information
the commission may require.

���� 8.��� The �Innovation Fund� is
hereby established in the Department of the Treasury as a separate special,
non-lapsing, account that shall be administered by the commission for the
purpose of funding the partners, into which shall be deposited: any State
appropriations to the commission or to the partners, to technology and research
activities assigned to the commission, or any other State appropriations for
the purposes of
P.L. , c. (C. )
(pending before the Legislature as this bill); federal funds; royalties; gifts;
grants; bequests; devises; private funds; venture capital funds; and funds from
any other source that are designated to the commission. All earnings received
from the investment of monies in the fund shall be credited to the fund.

���� 9.��� a.� The commission is
authorized to call upon any department, authority, commission, board, office,
division, or agency of the State to provide any information, resources, or
other assistance deemed necessary to effectuate the purposes of P.L. , c. (C. )
(pending before the Legislature as this bill).

���� b.��� Each department,
authority, commission, board, office, division and agency of the State shall be
required to cooperate with the commission to furnish the commission with any
information, personnel, and assistance as is necessary to effectuate the
purposes of P.L.��� , c.��� (C.����� ) (pending before the Legislature as this
bill).

���� 10.� a.� The commission shall
annually issue a report to the Governor and, pursuant to section 2 of P.L.1991,
c.164 (C.52:14-19.1), to the Legislature, describing the activities of the
commission and each partner, which shall include, but not be limited to, the
following:

���� (1)�� the budget of the
commission and each partner;

���� (2)�� individual projects of
the commission and each partner; and

���� (3)�� the progress of the
commission and of each partner in achieving the goals and implementing the
policies described in section 3 of P.L.��� , c.��� (C.����� ) (pending before
the Legislature as this bill).

���� b.��� Each partner shall
submit information to the commission, at a time, form, and manner to be
determined by the commission, which enables the commission to comply with the
requirements of this section.

���� 11.� This act shall take
effect immediately.

STATEMENT

����� This bill establishes the �Innovation Partnership,�
(partnership) to be administered by the New Jersey Commission on Science,
Innovation and Technology (commission) and which is to include one or more
independent nonprofit organizations (partners) either certified by or
established and incorporated by the commission, working individually, in
partnership with each other, and in partnership with the commission, to advance
the development of emerging technology businesses in this State and to create a
supportive and collaborative innovation ecosystem across New Jersey.

����� This bill lists the goals and policies of the
partners.

����� The commission is to establish the exact geographical
boundaries for the partners to focus their efforts, and the partners are to be
responsible for implementing the following goals for the following regions:

����� 1)�� the northern region of the State having a
primary, but not exclusive, focus on financial information technology,
cybersecurity, or a combination thereof;

����� 2)�� the central region of the State having a
primary, but not exclusive, focus on healthcare, life sciences, biotechnology,
or a combination thereof;

����� 3)�� the southern region of the State having a
primary, but not exclusive, focus on agriculture, aviation, or a combination
thereof; and

����� 4)�� the shore region of the State, having a primary,
but not exclusive, focus on renewable energy and autonomous vehicles.

����� A nonprofit organization established as of the date
of the bill�s enactment and meeting one of the regional requirements may submit
to the commission an application, in a form and manner determined by the
commission, for certification as a partner. Once certified, a partner may apply
to the commission, in a form and manner determined by the commission, to
receive grant funds from the fund established pursuant to this bill. The
commission, upon approving a grant application submitted by a partner, is to sign
a grant agreement with the partner, which is to permit the partner to execute
the goals and policies pursuant to this bill only if matched by private sector
funds on a minimum basis to be established by the commission.

����� In selecting and certifying a nonprofit organization
as a partner, the commission is to give priority to a nonprofit organization
with diverse leadership, organized with at least one location in a municipality
that meets the criteria for State aid pursuant to State law.

����� If the commission is unable to certify a nonprofit
organization as a partner for a certain regional focus, pursuant to the bill,
the commission is to establish and incorporate an independent nonprofit
organization to serve as a partner for that particular regional focus. In
appointing the board for the partner, the commission is to consider the ethnic,
racial, and gender diversity of the community in which the partner is located.

����� The commission may modify or revoke a partner�s
participation in the partnership if the commission determines the partner does
not achieve the goals or does not implement the policies of this bill.

����� Additionally, upon receipt of a grant, a partner is
to implement the terms of the grant agreement. Failure to comply with the grant
agreement is to result in the forfeiture of the grant.

����� Lastly, this bill directs partners to annually submit
certain information to the commission and the commission to annually issue a
report to the Governor and the Legislature describing the activities of the
commission and each partner.