S1476 —

S1476 1RSEG [FirstStatement Reprint]3/11/21 SENATE ECONOMIC GROWTH COMMITTEE   STATEMENT TO   SENATE, No.

1476  STATEwith OFcommittee NEWamendments JERSEY 219th LEGISLATURE   INTRODUCEDSTATE FEBRUARYOF 13,NEW 2020JERSEY    DATED: Sponsored by:

Senator  MARCH NILSA11, CRUZ-PEREZ2021 District  5      (CamdenThe andSenate Gloucester)Economic Senator Growth JAMESCommittee BEACHreports Districtfavorably 6 (Burlington and Camden)with  committee  amendments  Senate  Bill SYNOPSISNo.1476.      Creates “Economic Gardening Program” in Department of State to provide customized services to certain businesses.

       CURRENTAs VERSIONamended OFand TEXTreported,     this Asbill reportedestablishes within the Business Action Center (BAC) in the Department of State an “Economic Gardening Program” (program) to provide customized services to a qualified second-stage growth business upon application by the Senatebusiness Economicin Growtha Committeemanner onestablished Marchby 11,the 2021,center.  withThe amendments.bill defines a “qualified second-stage growth business” as a business that:

 1) Anhas Actmaintained establishingits anprincipal “Economicplace Gardeningof Program”business in the Department of State andfor supplementingat Titleleast 52 of the Revisedlast Statutes.two years;

 2)     has Beannual Itrevenues Enactedtotaling bynot themore Senatethan and$50,000,000; General Assembly of the State of New Jersey:

 3)     employs 1.   at Asleast usedfive inbut P.L.not more than 100 full-time employees;

,4) c.demonstrates growth in annual revenue or jobs, or both, in two of the last five years;

(C.5) delivers products or services to customers outside the business's local market area or demonstrates the capacity to do so;

)6) (pendingis beforein thea Legislaturetarget industry as thisidentified bill):by the center;

    and “Authority”7) meansis organized for profit to perform a lawful, commercial function.  The BAC is to work in conjunction with the New Jersey Economic Development Authority establishedand pursuantState, tolocal, sectionand 4private ofbusiness P.L.1974,assistance c.80entities (C.34:1B-4).to develop and promote the program.

          “Center”The meansprogram is to consist of providing to a qualified second-stage growth business customized services tailored to the Businessneeds Actionof Center,the createdqualified second-stage growth business and may be in the Departmentform of Statepersonalized pursuantcounseling toor Reorganizationmanagement Planconsulting.  No.The customized services are to, include, but not be limited to:

003-2011.1) a review of the qualified second-stage growth business’s core strategies, including threats and opportunities, business strategy, and niche markets;

    2) “Department”qualified meanssecond-stage thegrowth Departmentbusiness ofdevelopment State.opportunities through market research and qualified sales leads;

    and “Program”3) meansguidance to the “Economicqualified Gardeningsecond-stage Program”growth establishedbusiness pursuanton increasing its visibility and credibility within the market with an improved Internet presence, and advice on how to sectionbest 2use oftechnology P.L.to connect with customers.  The BAC is authorized to partner with business assistance organizations to provide customized services to businesses.

,      c.The bill requires that the BAC and any partner organizations are prohibited from disclosing any non-public proprietary information when providing a qualified second-stage growth business customized services.  The bill provides for a General Fund appropriation to the Department of State of an amount necessary to effectuate the purposes of the bill and allows the BAC to seek and accept gifts, grants, or donations from private or public sources for funding the costs of the customized services.  Further, the bill requires the BAC to report annually to the Governor and the Legislature on the functioning of the program and meeting the needs of qualified second-stage growth businesses.  The report is to include, but not be limited to, the number and locations of participating qualified second-stage growth businesses, the number of jobs created or maintained by participating qualified second-stage growth businesses, the amount of any capital investment made by participating qualified second-stage growth businesses as a result of participation in the program, and the type and amount of any financial assistance given to participating qualified second-stage growth businesses.

(C.      The committee amended the bill to define “qualified second-stage growth business” as, among other things, a business with annual revenues totaling not more than $50,000,000.

) (pending before the Legislature as this bill).

     “Qualified second-stage growth business” means a business that:

     a.

has maintained its principal place of business in the State for at least the last two years;

     b.

has annual revenues totaling 1[between $600,000 and] not more than1 $50,000,000;

     c.

employs at least five but not more than 100 full-time employees in this State;

     d.

demonstrates growth in annual revenue or jobs, or both, in two of the last five years;

     e.

delivers products or services to customers outside the business's local market area or demonstrates the capacity to do so;

     f.

is in a target industry as identified by the center;

and      g.

is organized for profit to perform a lawful, commercial function.

       2.    a.  The Business Action Center shall establish an “Economic Gardening Program.”  The program shall consist of customized services provided by the center, pursuant to subsection b.

of this section, to a qualified second-stage growth business deemed eligible by the center upon application by a business in a manner established by the center.  The center shall work in conjunction with the authority and State, local, and private business assistance entities to develop and promote the program.

     b.    (1)  Through the program, the center shall, upon request and free of charge, provide to a qualified second-stage growth business customized services tailored to the needs of the qualified second-stage growth business, including, but not limited to:

     (a)  a review of the qualified second-stage growth business’s core strategies, including threats and opportunities, business strategy, and niche markets;

     (b)   qualified second-stage growth business development opportunities through market research and qualified sales leads, including, but not limited to, information about competitors and their strategies, industry trends and forecasts, market size and sales, financial analysis, business planning, strategic planning, market demographics, market research reports, potential market niches, prospective partners and resources, and marketing lists;

and      (c)   guidance to the qualified second-stage growth business on increasing its visibility and credibility within the market with an improved Internet presence, and advice on how to best use technology to connect with customers.

     (2)   Customized services addressing the needs of a requesting qualified second-stage growth business, pursuant to paragraph (1) of this subsection, may be provided in the form of personalized counseling or management consulting.  The center may partner with business assistance organizations in the State to provide customized services pursuant to paragraph (1) of this subsection.