Creates grant program for business accelerator and incubator networks; transfers $1 million in societal benefits charge revenues to EDA to administer program.

S3592

SENATE, No. 3592

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED FEBRUARY 19, 2026

Sponsored by:

Senator� JAMES BEACH

District 6 (Burlington and Camden)

SYNOPSIS

���� Creates grant program for business accelerator and
incubator networks; transfers $1 million in societal benefits charge revenues
to EDA to administer program.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act

establishing a grant program for business accelerator and incubator networks,
supplementing
P.L.1974, c.80 (C.34:1B-1 et seq.), and amending
P.L.1999, c.23.

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

���� 1.��� (New section) As used in
sections 1 through 4 of
P.L. , c. (C. ) (pending
before the Legislature as this bill):

���� �Advanced computing,�
�advanced materials,� �information technology,� and �life sciences� shall have
the same meaning as provided in section 2 of P.L.1997, c.349 (C.54:10A-5.29).

���� �Advanced technology center�
means programs or departments at the State�s public and private institutions of
higher education which are provided financial support from those institutions
of higher education to promote innovative technology research and are
established pursuant to law, including, but not limited to, P.L.1985, c.102
(C.52:9X-1 et seq.), P.L.1985, c.103 (C.18A:64J-1 et seq.), P.L.1985, c.104
(C.18A:64J-8 et seq.), P.L.1985, c.105 (C.18A:64J-15 et seq.), and P.L.1985,
c.106 (C.18A:64J-22 et seq.).

���� �Angel investment� means the
non-refundable transfer of cash to an incubator business by an established
business that is not a related person of the incubator business, the transfer
of which is in connection with either:

���� a.���� a transaction in
exchange for stock, interests in partnerships or joint ventures, exclusive or
non-exclusive licenses, rights to use technology, marketing rights, warrants,
options, or any items similar to those included herein, including but not
limited to options or rights to acquire any of the items included herein; or

���� b.��� a purchase, production,
or research agreement.

���� �Authority� means the New
Jersey Economic Development Authority established by section 4 of P.L.1974,
c.80 (C.34:1B-4).

���� �Big data� shall have the same
meaning as provided in section 1 of P.L.2014, c.33 (C.52:17C-3.4).

���� �Biotechnology,�
�environmental technology,� �electronic device technology,� and �medical device
technology,� shall have the same meaning as provided in section 2 of P.L.1996,
c.26 (C.34:1B-125).

���� �Business accelerator or
incubator� means an individual or network of business development facilities,
consisting of the provision of low-cost space and technical assistance, for
short-term occupancy, to an incubator business employing selected technologies
congruent with the strengths of the State�s public and private institutions of
higher education.� A �business accelerator or

incubator� may include, but not be
limited to, an advanced technology center or a technology extension service.

���� �Grant program� means the
�Business Accelerator and Incubator Network Grant Program� established pursuant
to section 2 of P.L. , c.��� (C.������� ) (pending
before the Legislature as this bill).

���� �Incubator business� means a
corporation, partnership, limited liability company, or sole proprietorship
that is supported by private sources of capital, including, but limited to,
private equity, angel investment, or venture capital that:

���� a.���� is in the formative
stage of development;

���� b.��� is engaged in the
design, development, and introduction of new biotechnology, information
technology, re-manufacturing, advanced materials, processing engineering or
electronic device technology products, or innovative manufacturing processes;
and

���� c.���� meets any other
requirements for an incubator business as the authority shall develop.

���� �Support services� means the
provision of publicly or privately-supported, low-cost, short-term occupancy,
rental space and technology extension services wherein financial and other
types of business or technical assistance is provided to an incubator business
by a business accelerator or incubator.

���� �Technology extension service�
means a program to accelerate the application and transfer of technological
innovation by the State's public and private institutions of higher education
to an incubator business, specifically to work with the State's incubator
businesses to adapt these innovations to the requirements of individual
business operations.

���� 2.��� (New section)��� a.�� The
authority shall establish and administer the �Business Accelerator and
Incubator Network Grant Program� for the purpose of awarding grants to a
business accelerator or incubator that provides support to incubator businesses
that are located within a business accelerator or incubator in this State.

���� �b.�� Grants may be made to a
business accelerator or incubator in an amount as determined by the authority.�
The grant funds may be applied to:

���� (1)�� any aspect of the
business accelerator or incubator that provides support to incubator businesses
in the business accelerator or incubator as determined by the authority; or

���� (2)�� any aspect of an
incubator business operating within the business accelerator or incubator.

���� �c.��� In order to be eligible
for a grant, a business accelerator or incubator at the time of application for
program eligibility, shall provide proof that it is a business accelerator or
incubator providing support to an incubator business that is in one of the
following fields:

���� (1)�� clean energy or
environmental technology;

���� (2)�� life sciences,
biotechnology, or medical device technology;

���� (3)�� advanced materials,
engineering, or manufacturing;

���� (4)�� supply chain,
transportation, and logistics;

���� (5)�� big data, advanced
computing, and digital technology;

���� (6)�� defense and homeland
security; or

���� (7)�� food and agriculture.

���� �d.�� A business accelerator
or incubator and an incubator business seeking to participate in the grant
program shall submit an application in a form and manner as the authority shall
require.� The application shall include information the authority determine is
necessary to administer the grant program.� An incubator business seeking to
participate in the grant program shall submit to the authority documentation
from the business accelerator or incubator hosting the incubator business that
participation in the grant program will be a contributing factor towards the
financial success of the incubator business.

���� �e.��� The authority shall
review and may approve an application for the grant program.� The authority
shall issue payment of the grant amount pursuant to a grant agreement with a
business accelerator or incubator or an incubator business as the authority may
determine and subject the approval of the agreement to the submission of proof
by an approved grant applicant of the expenditures contributing to the success
of an incubator business assisted by the business accelerator or incubator.� A
grantee who fails to comply with a grant agreement made as a condition of a
grant award shall repay any grant amount received and, if so determined by the
authority, shall pay a penalty not in excess of 10 percent of the grant amount.

���� 3.��� (New section)��� a.�� The
authority shall establish and maintain the �Business Accelerator and Incubator
Network Grant Program� established pursuant to section 2 of P.L.��� , c.���
(C.������� ) (pending before the Legislature as this bill) with monies to be
used by the authority for the purposes specified in P.L.��� , c.��� (C.�������
) (pending before the Legislature as this bill).� Monies to be utilized by the
grant program shall include, but not be limited to:

���� (1)�� societal benefits charge
revenues collected by the Board of Public Utilities pursuant to section 12 of
P.L.1999, c.23 (C.48:3-60), transferred to the authority pursuant to section 5
of P.L. , c. (C. ) (pending
before the Legislature as this bill), that the authority determines are
necessary in response to the demand for the program, up to $1,000,000;

���� (2)�� monies as may be
available to the authority from other business development programs
administered by the authority or other State agencies or authorities, and which
the authority determines to be necessary in light of the volume of applications
from business accelerators or incubators and incubator businesses for grants
under the grant program as necessary to implement the purposes of P.L.��� ,
c.��� (C.������� ) (pending before the Legislature as this bill); and

���� (3)�� other monies as may be
made available to the authority from public or private sources.

���� �b.�� Monies in the grant
program which are not allocated for current responsibilities of the grant
program may be invested by the authority in any direct obligations as to which
principal and interest are guaranteed by the United States of America or any
other obligation deemed appropriate by the authority.

���� �4.�� (New section)��� The
authority shall prepare an annual report on the �Business Accelerator and
Incubator Network Grant Program,� deliver the report to the Governor and,
pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), to the Legislature,
and make the report available on the authority�s website.� The report shall
include the number of program applicants, the number and names of business
accelerator or incubators and incubator businesses approved for the grant
program, the types of incubator businesses located within business accelerator
or incubators in the grant program, the total amount of grants distributed, the
amount received per business accelerator or incubator and incubator business,
and any other information as the authority determines is necessary to evaluate
the progress of the grant program.

���� 5.��� (New section)��� The
authority may adopt rules and regulations pursuant to the "Administrative
Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) as may be necessary
to effectuate the purposes of P.L.��� , c.��� (C.������� ) (pending before the
Legislature as this bill).

���� 6.��� Section 12 of P.L.1999,
c.23 (C.48:3-60) is amended to read as follows:

���� 12. a. Simultaneously with the
starting date for the implementation of retail choice as determined by the
board pursuant to subsection a. of section 5 of P.L.1999, c.23 (C.48:3-53)
and
consistent with the provisions of P.L.���� , c.����� (C.�������� ) (pending
before the Legislature as this bill)
, the board shall permit each electric
public utility and gas public utility to recover some or all of the following
costs through a societal benefits charge that shall be collected as a
non-bypassable charge imposed on all electric public utility customers and gas
public utility customers, as appropriate:

���� (1)�� the costs for the social
programs for which rate recovery was approved by the board prior to April 30,
1997.� For the purpose of establishing initial unbundled rates pursuant to
section 4 of P.L.1999, c.23 (C.48:3-52), the societal benefits charge shall be
set to recover the same level of social program costs as is being collected in
the bundled rates of the electric public utility on the effective date of
P.L.1999, c.23 (C.48:3-49 et al.). The board may subsequently order, pursuant
to its rules and regulations, an increase or decrease in the societal benefits
charge to reflect changes in the costs to the utility of administering existing
social programs.� Nothing in P.L.1999, c.23 (C.48:3-49 et al.) shall be
construed to abolish or change any social program required by statute or board
order or rule or regulation to be provided by an electric public utility.� Any
such social program shall continue to be provided by the utility until
otherwise provided by law, unless the board determines that it is no longer appropriate
for the electric public utility to provide the program, or the board chooses to
modify the program;

���� (2)�� nuclear plant
decommissioning costs;

���� (3)�� the costs of demand side
management programs that were approved by the board pursuant to its demand side
management regulations prior to April 30, 1997.� For the purpose of
establishing initial unbundled rates pursuant to section 4 of P.L.1999, c.23
(C.48:3-52), the societal benefits charge shall be set to recover the same
level of demand side management program costs as is being collected in the
bundled rates of the electric public utility on the effective date of P.L.1999,
c.23 (C.48:3-49 et al.).� Within four months of the effective date of P.L.1999,
c.23 (C.48:3-49 et al.), and every four years thereafter, the board shall
initiate a proceeding and cause to be undertaken a comprehensive resource
analysis of energy programs, and within eight months of initiating such
proceeding and after notice, provision of the opportunity for public comment,
and public hearing, the board, in consultation with the Department of
Environmental Protection, shall determine the appropriate level of funding for
energy efficiency , plug-in electric vehicles and plug-in electric vehicle
charging infrastructure, energy storage, and Class I renewable energy programs
that provide environmental benefits above and beyond those provided by standard
offer or similar programs in effect as of the effective date of P.L.1999, c.23
(C.48:3-49 et al.); provided that the funding for such programs be no less than
50 percent of the total Statewide amount being collected in electric and gas
public utility rates for demand side management programs on the effective date
of P.L.1999, c.23 (C.48:3-49 et al.) for an initial period of four years from
the issuance of the first comprehensive resource analysis following the
effective date of P.L.1999, c.23 (C.48:3-49 et al..), and provided that 25
percent of this amount shall be used to provide funding for Class I renewable
energy projects in the State.� In each of the following fifth through eighth
years, the Statewide funding for such programs shall be no less than 50 percent
of the total Statewide amount being collected in electric and gas public
utility rates for demand side management programs on the effective date of
P.L.1999, c.23 (C.48:3-49 et al.), except that as additional funds are made
available as a result of the expiration of past standard offer or similar
commitments, the minimum amount of funding for such programs shall increase by
an additional amount equal to 50 percent of the additional funds made
available, until the minimum amount of funding dedicated to such programs
reaches $140,000,000 total.� After the eighth year the board shall make a
determination as to the appropriate level of funding for these programs.�
[
Such
]

The demand
side management
programs shall include a program to provide financial
incentives for the installation of Class I renewable energy projects in the
State, and the board, in consultation with the Department of Environmental
Protection, shall determine the level and total amount of such incentives as
well as the renewable technologies eligible for such incentives which shall
include, at a minimum, photovoltaic, wind, and fuel cells. The board shall
simultaneously determine, as a result of the comprehensive resource analysis,
the programs to be funded by the societal benefits charge, the level of cost
recovery and performance incentives for old and new programs and whether the
recovery of demand side management programs' costs currently approved by the
board may be reduced or extended over a longer period of time.� The board shall
make these determinations taking into consideration existing market barriers
and environmental benefits, with the objective of transforming markets,
capturing lost opportunities, making energy services more affordable for low
income customers and eliminating subsidies for programs that can be delivered
in the marketplace without electric public utility and gas public utility
customer funding�
In addition to the determinations
above, the board shall allocate sufficient funding from the societal benefits
charge to cover the remaining cost of fully funding incentive awards issued for
transmission-scale energy storage systems that are eligible projects pursuant
to P.L.2025, c.136 (C.48:3-121.2 et al), after accounting for funding allocated
to this purpose from other sources;

���� (4)�� manufactured gas plant
remediation costs, which shall be determined initially in a manner consistent
with mechanisms in the remediation adjustment clauses for the electric public
utility and gas public utility adopted by the board;
[
and
]

���� (5)�� the cost, of consumer
education, as determined by the board, which shall be in an amount that,
together with the consumer education surcharge imposed on electric power
supplier license fees pursuant to subsection h. of section 29 of P.L.1999, c.23
(C.48:3-78) and the consumer education surcharge imposed on gas supplier
license fees pursuant to subsection g. of section 30 of P.L.1999, c.23
(C.48:3-79), shall be sufficient to fund the consumer education program
established pursuant to section 36 of P.L.1999, c.23 (C.48:3-85)
; and

����
(6)�� the costs of the
�Business Accelerator and Incubator Network Grant Program,� of an amount up to
$1,000,000, as determined to be appropriate by the New Jersey Economic
Development Authority, for transfer to the authority for the purposes
established in section 2 of P.L.��� , c.��� (C.������� ) (pending before the
Legislature as this bill)
.

���� b.��� There is established in
the Board of Public Utilities a nonlapsing fund to be known as the
"Universal Service Fund."� The board shall determine: the level of
funding and the appropriate administration of the fund; the purposes and
programs to be funded with monies from the fund; which social programs shall be
provided by an electric public utility as part of the provision of its
regulated services which provide a public benefit; whether the funds
appropriated to fund the "Lifeline Credit Program" established
pursuant to P.L.1979, c.197 (C.48:2-29.15 et seq.), the "Tenants' Lifeline
Assistance Program" established pursuant to P.L.1981, c.210 (C.48:2-29.30
et seq.), the funds received pursuant to the Low Income Home Energy Assistance
Program established pursuant to 42 U.S.C. s.8621 et seq., and funds collected
by electric and natural gas utilities, as authorized by the board, to offset
uncollectible electricity and
[
natural
]
gas
public

bills should be deposited in the fund; and whether new charges should be imposed
to fund new or expanded social programs.

(cf: P.L.2025, c.136, s.7)

���� 7.��� This act shall take
effect immediately and shall expire six years thereafter.

STATEMENT

���� This bill directs the New
Jersey Economic Development Authority (authority) to establish and administer
the �Business Accelerator and Incubator Network Grant Program� (program) for
the purpose of awarding grants to an individual or network of business accelerators
or incubators that provide support to incubator businesses that are located
within a business accelerator or incubator in this State.� Grants may be made
to a business accelerator or incubator in an amount as determined by the
authority.� Grant funds may be applied to: 1) any aspect of the business
accelerator or incubator that provides support to incubator businesses in the
business accelerator or incubator as determined by the authority; or 2) any
aspect of an incubator business operating within the business accelerator or
incubator.

���� The bill requires that, in
order to be eligible for a grant, a business accelerator or incubator, at the
time of application, is to provide proof that it is a business accelerator or
incubator providing support to an incubator business that is in one of the
following fields: 1) clean energy or environmental technology; 2) life
sciences, biotechnology, or medical device technology; 3) advanced materials,
engineering, or manufacturing; 4) supply chain, transportation, and logistics;
5) big data, advanced computing, and digital technology; 6) defense and
homeland security; or 7) food and agriculture.

���� A business accelerator or
incubator seeking to participate in the program is to submit an application in
a form and manner as the authority requires and include information the
authority determines is necessary to administer the program.� The authority is
to review and may approve an application for the grant program.� The authority
is to issue payment of a grant pursuant to a grant agreement as the authority
may determine and subject the approval of the grant agreement to the submission
of proof by an approved applicant of the expenditures contributing to the
success of an incubator business assisted by the business accelerator or
incubator.� A grantee that fails to comply with a grant agreement made as a
condition of a grant award is to repay any grant amount received and, if so
determined by the authority, is to pay a penalty not in excess of 10 percent of
the grant amount.

���� The authority is to establish
and maintain the program with the following sources of funds: 1) societal
benefits charge revenues collected by the Board of Public Utilities that the
authority determines are necessary in response to the demand for the program,
up to $1,000,000; 2) funds as may be available to the authority from other
business development programs administered by the authority or other State
agencies or authorities, and which the authority determines to be necessary in
light of the volume of applications from business accelerator or incubators and
incubator businesses for grants under the grant program as necessary to
implement the bill; and 3) other monies as may be made available to the
authority from public or private sources.

���� The bill requires the
authority to prepare an annual report on the program, deliver the report to the
Governor and the Legislature, and make the report available on the authority�s
website.� The report is to include the number of program applicants, the number
and names of business accelerator or incubators and incubator businesses
approved for the program, the types of incubator businesses located within
business accelerator or incubators in the program, the total amount of grants
distributed, the amount received per business accelerator or incubator and
incubator business, and any other information as the authority determines is
necessary to evaluate the progress of the grant program.

���� The program is to expire six
years after its establishment upon the effective date of the bill.