Bill Text: NJ A3593 | 2010-2011 | Regular Session | Introduced
Bill Title: Establishes the Technology Business Incubator Program Supplemental Assistance Fund.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2010-12-06 - Introduced, Referred to Assembly Budget Committee [A3593 Detail]
Download: New_Jersey-2010-A3593-Introduced.html
Sponsored by:
Assemblywoman VALERIE VAINIERI HUTTLE
District 37 (Bergen)
Assemblyman WAYNE P. DEANGELO
District 14 (Mercer and Middlesex)
SYNOPSIS
Establishes the Technology Business Incubator Program Supplemental Assistance Fund.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning technology business incubator program funding and supplementing chapter 9X of Title 52 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. This act shall be known and may be cited as the "Technology Business Incubator Program Supplemental Assistance Fund Act."
2. The Legislature finds and declares that:
a. Business incubation is an economic development tool designed to accelerate the growth and success of entrepreneurial companies through an array of business support resources and services, thus reducing the risk of small business failures.
b. A business incubator's primary purpose is to produce successful companies that are enabled to leave the program financially viable and freestanding with the ability to create new jobs, revitalize neighborhoods, and strengthen local economies.
c. Technology business incubators, such as those established by the New Jersey Commission on Science and Technology, provide a technology-based business with the appropriate rental space and leases, shared office services and equipment, technology support services and financial assistance to ensure continued economic growth.
d. The financing for these incubators varies depending upon the particularities of the specific incubator, with support for incubators traditionally coming, in part or in whole, from public or private sources, or both.
The Legislature therefore determines that it is in the public interest to establish an appropriate supplemental funding source for the promotion, support and expansion of the Commission's Technology Business Incubator Program.
3. As used in this act:
"Act" means the "Technology Business Incubator Program Supplemental Assistance Fund Act."
"Commission" means the New Jersey Commission on Science and Technology created pursuant to P.L.1985, c.102 (C.52:9X-1 et seq.).
"Director" means the Director of the Division of Taxation in the Department of the Treasury.
"Technology incubator business" means a corporation; sole proprietorship; partnership; corporation that has made an election under Subchapter S of Chapter One of Subtitle A of the federal Internal Revenue Code of 1986; or any other business entity through which income flows as a distributive share to its owners; limited liability company; or any other form of business organization or cooperative association that receives assistance from the commission, as pursuant to section 9 of P.L.1985, c.102 (C.52:9X-9), and either conducts or had conducted operations within a business incubation facility, as that term is defined in section 2 of P.L.1985, c.102 (C.52:9X-2).
"Technology incubator business taxes" means as appropriate:
a. 100 percent of the liability determined pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5); or
b. 50 percent of the amount required to be withheld from employees wages pursuant to N.J.S.54A:7-1.
"Technology business incubator program supplemental assistance fund" or "fund" means the Technology Business Incubator Program Supplemental Assistance Fund created pursuant to section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill) which shall be the repository for technology incubator business taxes as pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill).
"Treasurer" means the Treasurer of the State of New Jersey.
4. a. There is created a dedicated, nonlapsing fund in the Department of the Treasury to be known as the "Technology Business Incubator Program Supplemental Assistance Fund" to be held and administered by the Treasurer. The director shall deposit in the fund an amount equal to the technology incubator business taxes of a technology incubator business until such time as the director certifies that the cumulative amount of technology incubator business taxes received from the technology incubator business equals the amount of financial assistance provided by the commission to such business.
b. The Legislature shall annually appropriate monies in the fund to the commission in order to provide funding for the purposes of carrying out the duties and functions of the commission in the promotion, support and expansion of business incubation facilities as pursuant to the provisions of section 9 of P.L.1985, c.102 (C.52:9X-9).
c. Moneys deposited in the fund and made available to the commission pursuant to this act shall be in addition to any other moneys that may otherwise be appropriated or made available to the commission.
5. Notwithstanding any law, rule or regulation to the contrary, the commission shall enter an agreement with a technology incubator business for the provision of financial assistance from the commission, including the provision of any grant, loan or other investment made in such business. Such agreement shall include a stipulation that the technology incubator business shall conduct operations within this State until such time as the director certifies that the cumulative amount of technology incubator business taxes received from the business equals or is greater than the amount of financial assistance provided by the commission to such business.
6. The director shall, in consultation with the Treasurer and the commission, promulgate such rules and regulations pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) as are necessary to govern the administration of the fund for the purposes of this act.
7. This act shall take effect immediately and apply to tax payment periods beginning on or after January 1, 2003.
STATEMENT
This bill establishes a dedicated, non-lapsing "Technology Business Incubator Program Supplemental Assistance Fund" to be administered by the State Treasurer to provide a source of supplemental funding to the New Jersey Commission on Science and Technology (the "commission") in order to provide funding to the commission for the purposes of carrying out the duties and functions of the commission in the promotion, support and expansion of technology business incubation facilities that are part of the commission's Technology Business Incubator Program.
The amount of supplemental funds to be credited to the commission shall be calculated by the State Treasurer based upon an amount of the taxes collected by the State that are derived from those businesses that received assistance from the commission and that conducts or had conducted operations in a technology business incubation facility until such time as the Director of the Division of Taxation ("director") certifies that the cumulative amount of taxes received from the technology incubator business equals the amount of financial assistance provided by the commission to such business. The amount of taxes collected for deposit into the fund is based on, as appropriate, 100 percent of the liability determined as pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5), or 50 percent of the amount required to be withheld from employees wages as pursuant to N.J.S.54A:7-1.
The bill provides that the commission shall enter an agreement with a technology incubator business for the provision of financial assistance from the commission, including the provision of any grant, loan or other investment made in such business. Such agreement shall include a stipulation that the technology incubator business shall conduct operations within this State until such time as the director certifies that the cumulative amount of taxes received from the business equals or is greater than the amount of financial assistance provided by the commission to such business.
According to the commission, the commission created and financially supports existing and new incubators for technology-based companies throughout New Jersey. These incubators provide start-up and small firms with business assistance support, and low-cost office, light manufacturing or laboratory space. There are several incubators throughout New Jersey, in partnership with colleges and universities. Client companies take advantage of low rent rates and expenses, and a wide array of free consulting.
