New Jersey Administrative Code › Title 19 - OTHER AGENCIES › NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY › Chapter 31X - EVERGREEN › Subchapter 1 - EVERGREEN › Section 19:31X-1.3 - New Jersey Innovation Evergreen Fund (Fund)

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The Authority shall establish and
				  maintain a dedicated fund to be known as the New Jersey Innovation Evergreen
				  Fund (Fund). The Authority shall use the money in the Fund to carry out the
				  purposes enumerated in the Act and this subchapter.
(b) The Authority shall credit the Fund with
				  money paid by tax credit purchasers from the sale of tax credits pursuant to
				  N.J.A.C. 19:31X-1.4; distributions from payments or repayments made to the
				  Authority, in accordance with subsection c. of section 31 at
				  P.L.
				  2020, c. 156
				  (N.J.S.A.
				  34:1B-299) and N.J.A.C. 19:31X-1.8(
l
); earnings received, if any, from the investment or
				  reinvestment of money credited to the Fund; money received pursuant to
				  payments, repayments, or redemptions required pursuant to N.J.A.C. 19:31X-1.10,
				  except for the recapture of tax credits pursuant to N.J.A.C. 19:31X-1.10(b);
				  and any money that, from time to time, may otherwise become available for the
				  purposes of the Fund.
(c) Subject
				  to availability of funds, the Authority shall allocate the money in the Fund to
				  qualified venture firms to make qualified investments in qualified businesses
				  through an Evergreen special purpose vehicle, in accordance with section 30 at
				  P.L.
				  2020, c. 156
				  (N.J.S.A.
				  34:1B-298) and N.J.A.C. 19:31X-1.8 and to pay
				  the administrative, legal, and auditing expenses of the Authority incurred in
				  the administration of the program. In addition, the Authority shall use 75
				  basis points of the total amounts deposited in the Fund, calculated on an
				  annual basis, for programs administered by the Authority that create an
				  innovation ecosystem that supports and promotes high-growth businesses in the
				  State.
(d) The Authority shall
				  deposit into the Fund dividends and returns on investments paid to the
				  Authority by, or on behalf of, a qualified business. Upon the Fund receiving
				  total deposits from such Fund dividends and returns from qualified investments
				  of $ 500,000,000, the Authority shall pay 50 percent of any return on
				  investment in excess of twice the original and follow-on investment to the
				  General Fund of the State.
(e) The
				  Authority shall account for, and calculate reserves for, follow-on investments
				  and qualified venture firm management fees and direct expenses as set forth at
				  N.J.A.C. 19:31X-1.8(k); programs that support the State's innovation ecosystem
				  pursuant to (c) above; and administrative, legal, and auditing expenses of the
				  Authority in administering the program, plus such other amounts as shall be
				  determined by the Authority. The Authority may also reserve such amounts as it
				  considers necessary to achieve the goal set forth at N.J.A.C. 19:31X-1.8(b) and
				  any goals that may be developed pursuant to the disparity study completed and
				  performed, in accordance with N.J.A.C. 19:31X-1.8(c). The Authority shall not
				  include these reserves when calculating the amount in the Fund available for
				  new qualified investments.