Bill Text: NJ A5707 | 2020-2021 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Appropriates $50 million from General Fund to EDA to support businesses and nonprofit organizations impacted by COVID-19 pandemic.

Spectrum: Moderate Partisan Bill (Democrat 44-6)

Status: (Passed) 2021-06-22 - Approved P.L.2021, c.114. [A5707 Detail]

Download: New_Jersey-2020-A5707-Introduced.html

ASSEMBLY, No. 5707

STATE OF NEW JERSEY

219th LEGISLATURE

 

INTRODUCED MAY 12, 2021

 


 

Sponsored by:

Assemblyman  P. CHRISTOPHER TULLY

District 38 (Bergen and Passaic)

Assemblyman  ERIC HOUGHTALING

District 11 (Monmouth)

Assemblywoman  ANGELA V. MCKNIGHT

District 31 (Hudson)

 

 

 

 

SYNOPSIS

     Appropriates $50 million from General Fund to EDA to support businesses and nonprofit organizations impacted by COVID-19 pandemic.

 

CURRENT VERSION OF TEXT

     As introduced.

  


A Supplement to the Fiscal Year 2021 appropriations act, P.L.2020, c.97.

 

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

 

     1.    In addition to the amounts appropriated under P.L.2020, c.97, the annual appropriations act for Fiscal Year 2021, there is appropriated the following sum for the purpose specified:

 

82 DEPARTMENT OF THE TREASURY

50 Economic Planning, Development, and Security

51 Economic Planning and Development

 

GRANTS-IN-AID

38-2043

Economic Development ......................................

$50,000,000

 

Total Grants-in-Aid Appropriation, Economic Planning and Development ...............................

$50,000,000

Grants-in-Aid:

 

 

38

Assistance to Businesses and

   Nonprofits, EDA ........................

($50,000,000)

 

 

The amount hereinabove appropriated for Assistance to Businesses and Nonprofits, EDA, shall be allocated to the New Jersey Economic Development Authority to provide financial assistance to eligible businesses and nonprofit organizations, pursuant to section 1 of P.L.2021, c.46.  The authority may transfer the uncommitted balance of any funds hereinabove appropriated for Assistance to Businesses and Nonprofits, EDA, for the purposes of any program established pursuant to P.L.2021, c.42, P.L.2021, c.43, P.L.2021, c.45, or P.L.2021, c.47, as well as the Sustain and Serve NJ Program and the Startup Business and Nonprofit Assistance Program, established pursuant to P.L.    , c.    (pending before the Legislature as Assembly Bill No. 5708 of 2021); provided, however, that the authority shall submit notice to the Joint Budget Oversight Committee no less than five calendar days before the date of the transfer.  At a minimum, the notice shall indicate the amount of and purpose for the transferred funds.

 

The amount hereinabove appropriated for Assistance to Businesses and Nonprofits, EDA, is conditioned upon the submission of a report by the Chief Executive Officer of the New Jersey Economic Development Authority to the Governor and the Legislature, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), detailing the expenditure of program funds.  At a minimum, the report shall indicate the number of businesses and nonprofit organizations that applied for financial assistance; the number of businesses and nonprofit organizations that received financial assistance; the amount of financial assistance provided to each recipient; and a brief description of each recipient.

 

Of the amounts appropriated to the New Jersey Economic Development Authority for Assistance to Food and Beverage Establishments, Assistance to Businesses and Nonprofits, Assistance to Child Care Providers, Assistance to Microbusinesses, the Sustain and Serve NJ Program, and the Startup Business and Nonprofit Assistance Program, the authority may retain not more than $1,000,000 to defray administrative expenses.

 

     2.    This act shall take effect immediately.

 

 

STATEMENT

 

     This bill appropriates $50 million from the General Fund to the New Jersey Economic Development Authority (EDA) to support businesses and nonprofit organizations impacted by the COVID-19 pandemic.

     In April 2021, the State enacted P.L.2021, c.46 to provide $15 million in federal funding to the EDA for disbursement to eligible businesses and nonprofit organizations impacted by the COVID-19 pandemic.  This bill provides $50 million in additional State funding to support this program.  As permitted under P.L.2021, c.46, the bill allows the EDA to transfer uncommitted funds to other programs administered by the authority to address the impact of the COVID-19 pandemic.  The bill also allows a portion of these funds to be used for administrative expenses.

     As a condition of receiving State funds, the bill also requires the EDA to submit a report to the Governor and the Legislature detailing the expenditure of program funds.  At a minimum, the report would be required to indicate the number of businesses and nonprofit organizations that applied for financial assistance; the number of businesses and nonprofit organizations that received financial assistance; the amount of financial assistance provided to each recipient; and a brief description of each recipient.

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