Read the full stored bill text
A2467
ASSEMBLY, No. 2467
STATE OF NEW JERSEY
222nd LEGISLATURE
�
PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION
Sponsored by:
Assemblywoman TENNILLE R. MCCOY
District 14 (Mercer and Middlesex)
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
���� Introduced Pending Technical Review by Legislative
Counsel.
��
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.