December 21, 2007

The New Jersey State Legislature has until Jan. 7, 2008 to address current legislative initiatives before the current session ends. Any bill that is not passed by both the Senate and General Assembly must be reintroduced at the beginning of the next session.

ECONOMIC DEVELOPMENT

Senate Economic Growth Committee
UEZ Administrative Reform – A-3938 (Sweeney/D-3): Committee passed, referred to the Senate Budget and Appropriations Committee. Eases the administrative burden for UEZ-only businesses to utilize the sales tax exemption at the point-of-sale. Contact: Mary Ellen Peppard

Senate Community and Urban Affairs Committee
Eminent Domain  – S-1975 (Rice/D-28): Committee held. Supplements various parts of statutory law to provide greater accountability and transparency in the use of eminent domain by local governments in New Jersey. Amendments address concerns of home and business owners, such as an enhanced notification process, the right of first refusal to purchase space in a new development, and fair and equitable compensation. Eminent domain must remain a tool in the economic development process but should be reformed. Contact: Jim Leonard

Assembly Housing and Local Government Committee
Changing Property Sale Provisions – A-3306 (Littell-McHose/R-24): Committee held. Requires municipalities to directly pay an auction company if they use such a company to sell public property.  Previously, the commission could have been paid by the buyer, saving taxpayers the cost of the commission. The State Chamber opposes this bill because taking this option away from municipalities will increase the cost of property sale to taxpayers.  Contact: Jim Leonard

EDUCATION

Senate Education Committee/Senate Budget and Appropriations Committee
School Funding – The State Chamber’s Business Coalition for Educational Excellence (BCEE) supports the concept of school aid that follows the students based on their individual needs and a weighted per-pupil school funding formula. In addition, the BCEE believes that under any funding formula, the state needs to demand a greater level of accountability from schools - particularly those schools that receive significant levels of funding under the Abbott decision. Contact: Dana Egreczky

ENERGY

Assembly Environment and Solid Waste Committee/Assembly Telecommunications and Utilities Committee/Senate Economic Growth Committee
Regional Greenhouse Gas Initiative Act – S-2976 (Sweeney/D-3; Smith/D-17) and A-4559 (Chivukula/D-17; McKeon/D-27; Buono/D-18; Kean/R-21; Smith/D-17): Committees passed.  Authorizes the NJ Department of Environmental Protection to sell, exchange, retire, assign, allocate, or auction allowances from greenhouse gas emissions. The State Chamber is seeking several amendments such as an exemption for industrial onsite generation and the inclusion of a sunset provision that coincides with any federal legislation. While the Chamber recognizes the importance of energy efficiency, we also need to make sure New Jersey is not placed at an economic disadvantage when it comes to the generation and distribution of energy. Contact: Michael Egenton
ENVIRONMENT

Assembly Environment and Solid Waste Committee/Senate Budget and Appropriations Committee
Taxing Solid Waste – A-1886 (McKeon/D-27; Gusciora/D-15): Committee passed, referred to Assembly Appropriations Committee. S-557 (Smith/D-17; Martin/R-26): Committee passed. The Assembly version imposes a recycling tax of $3 per ton on solid waste generation. The Senate version was amended to $2 per ton. The money collected for the Recycling Enhancement Act would be deposited in the State Recycling Fund for: direct recycling grants to municipalities or counties; state recycling program planning and program funding; preparing, revising, and implementing solid waste management plans; and for public information and education programs concerning recycling activities. While the State Chamber recognizes the need to reinvigorate recycling in the state, the business community should not be tapped as a never-ending source to fund state government programs and initiatives. Contact: Michael Egenton

GOVERNMENT REFORM

Ethics Reform Measure – S-2504 (Codey/D-27; Lance/R-23; Whelan/D-2; Albano/D-1; McKeon/D-27; Biondi/R-16; O’Toole/R-40; Malone/R-30; Van Drew/D-1): Senate passed 37-0. Restricts members of the Legislature and legislative staff from accepting the receipt of things of value from lobbyists. The bill does allow members of the Legislature and legislative staff to attend events open to the general public and ceremonial or commemorative events. It permits the acceptance of ceremonial gifts or awards or other items of nominal value. Contact: Jim Leonard

HEALTH CARE

Senate Health, Human Services and Senior Citizens Committee
Promoting Health Technology – S-2728 (Vitale/D-19; Buono/D-18) and A-4044 (Conaway/D-7; Chivukula/D-17; Prieto/D-32; Greenstein/D-14; Gordon/D-38; Munoz/R-21; Vas/D-19): Committee passed with amendments. The NJ Health Information Technology Promotion Act provides for the development, implementation, and oversight of a statewide health information technology plan and establishes the 19-member NJ Health Information Technology Commission. The plan is to be designed to establish a secure, integrated and inter-operative statewide electronic health information infrastructure for the sharing of electronic health information among health care facilities, health care professionals, public and private payers, and patients. While the Chamber supports the concept, we do have concerns about the funding. As amended, the bill caps the assessment on health insurance companies to pay for this program at $1 million annually, a cost we believe should be shared by all who will benefit from the activities of the commission. Contact: Jim Leonard

Assembly Appropriations Committee
Hearing Aid Mandate – A-289 (Cohen/D-20; Roberts/D-5; Bateman/R-16): Committee passed.  Requires health insurers to cover the cost of hearing aids for individuals 15 years of age and younger. Continuing to mandate benefits severely restricts the ability of insurance companies to control costs, which in turn increases health insurance premiums for employers. Contact: Jim Leonard

Assembly Appropriations Committee
Bans Duel Health Coverage For Elected Officials – A-1691 (Fisher/D-3; Burzichelli/D-3; Van Drew/D-1): Committee passed and Assembly passed 80-0. Prohibits dual health care coverage of a state or local elected official by two public entities. The State Chamber supports this measure as a way to help reduce the cost of municipal government.  Contact: Jim Leonard

Preventing Charity Care Fraud – A-4295 (Roberts/D-5; Quigley/D-32; Buono/D-18; Karcher/D-12; Vitale/D-19): Assembly passed 80-0 and Senate passed 36-0 to concur with the Governor’s Conditional Veto.  Governor Corzine signed into law on Dec. 20.  The Charity Care Fraud Prevention and Detection Act is intended to enact into law certain recommendations of the NJ State Commission of Investigation (SCI), and implement additional measures to prevent waste, fraud, and abuse in the hospital charity care subsidy program. Contact: Jim Leonard

LABOR

Oppose Paid Leave – (Click here for our action alert) Mandating paid time off will severely disrupt the operations of companies, as managers scramble to find and pay for replacements for workers taking time off. New Jersey already has a hard time attracting businesses to the state - this will make it even more difficult and will place us at a major disadvantage. As of the release of this publication the General Assembly had not moved paid leave legislation. Members are encouraged to continue to voice their opposition of this initiative to their elected officials. Contact: Jim Leonard

Assembly Labor Committee
Unemployment Benefits for Corporate Owners – A-189 (Gregg/R-24; Cohen/D-20): Committee passed. Provides that an individual who is otherwise eligible for unemployment benefits based on wages with a corporation shall not be denied the benefits because the individual is an officer of a corporation. Contact: Jim Leonard

Outsourcing and Off-Shoring Commission – The seven-member Outsourcing and Off-shoring Commission (which includes Chamber Lobbyist Jim Leonard) has met in the last several months to study ways to identify outsourcing and off-shoring issues that can be controlled or addressed by state law or regulation and to provide recommendations concerning steps that need to be taken to ensure that outsourcing and off-shoring practices do not have a detrimental impact on the state. This Commission has finalized its recommendations and will provide the Governor’s Office and State Legislators with the final report to help them make informed decisions when looking at the outsourcing issue. Contact: Jim Leonard

Mandatory Prenotification of Plant Closings – A-1044 (Van Drew/D-1; Johnson/D-37; Egan/D-17; Greenstein/D-14; Sweeney/D-3; Doria/D-31):  Assembly passed 52-24 and Senate passed 26-11 to concur with the Governor’s Conditional Veto.  Governor Corzine signed into law on Dec. 20.  Requires employers with 100 or more workers to provide 60 days notice if the employer terminates 50 or more employees in a 30-day period.  Businesses would be required to give notice to the state Labor and Workforce Development Commissioner, the local municipality, the employees and their representatives. Requiring employers to report in this way duplicates federal requirements under the WARN act and is another example of New Jersey imposing legislative initiatives that are more stringent than federal standards.  Contact: Jim Leonard

Assembly Labor Committee
Mandated Prevailing Wage on BEIP – A-4001/S-2247 (Fisher/D-3; Egan/D-17; Van Drew/D-1; Sweeney/D-3; Coniglio/D-38): Committee passed, Assembly passed 53-24 and Senate passed 24-14. Requires that Business Employment Incentive Program and other program grant recipients pay the prevailing wage on certain public work projects. Since its inception, the BEIP has been shown to be a successful incentive program that creates new jobs and fosters economic growth. Additionally, the BEIP has a high rate of accountability since financial assistance is directly tied to job creation. This bill’s costly mandate will discourage employers from locating or expanding their operations in New Jersey and will increase the costs of such projects unnecessarily. Contact: Jim Leonard


Assembly Labor Committee
Mandated Prevailing Wage on Service Contracts – A-4003 (Roberts/D-5; Van Drew/D-1): Committee passed, referred to Assembly Appropriations Committee. Requires prevailing wage to building services on all state owned or leased premises. This mandate will increase the cost associated with providing these services unnecessarily. Contact: Jim Leonard

LEGAL

Senate Judiciary Committee
Anti-Tort Reform – S-176 (Doria/D-31; Scutari/D-22): Committee passed. Amends the wrongful death act by expanding the number of parties entitled to collect in a lawsuit. The current legal compensation system in New Jersey is fair and works well to protect individuals. If enacted, New Jersey would be one of only eight states in the nation (the others are Arkansas, Vermont, Arizona, Delaware, Illinois, Ohio, and Oklahoma) to allow unlimited emotional damages in wrongful death cases. Allowing a jury to award limitless damages will make New Jersey less competitive. Contact: Jim Leonard

TAXATION

Senate Economic Growth Committee
Expanding Tax Credit to Small Business – S-80 (Kean/R-21; Bucco/R-25): Committee passed, referred to the Senate Budget and Appropriations Committee.  Amends the Business Retention and Relocation Assistance Act. Current law requires that a firm relocate a minimum of 250 jobs to be eligible for a tax credit. This bill would provide small businesses the same tax credits currently available to large businesses by lowering the minimum full-time jobs requirement to 50 or more employees within New Jersey.  Contact: Mary Ellen Peppard

CBT Credit for Digital Media Industry – S-2526 (Sarlo/D-36; Kyrillos/R-13; Chivukula/D-17; Greenwald/D-6; Gordon/D-38): Senate passed 24-13 to concur with the Governor’s Conditional Veto. Provides a corporation business tax credit for certain digital media content production expenses incurred in New Jersey. This bill broadens the existing film credit program to include digital media. This measure will stimulate economic growth by providing incentives for the digital media industry to operate in New Jersey, attracting new high-wage technology jobs. Contact: Mary Ellen Peppard

TRANSPORTATION

Assembly Transportation and Public Works Committee
Expeditious Removal of Disabled Vehicles – A-4548 (Wisniewski/D-19): Committee passed.  This bill, based on a recommendation contained in the Congestion Busters Task Force Report, requires the operators of certain disabled vehicles to remove them from the roadway in a safe, but expeditious manner in order to avoid unnecessary traffic congestion and delay. The bill further clarifies that moving a vehicle under these circumstances does not constitute leaving the scene of an accident.  Contact: Michael Egenton

Trenton Watch is a publication of the New Jersey Chamber of Commerce. Thumbs up and down indicates the chamber’s support or opposition to issues. Questions? Call the State Chamber Government Relations Department at (609) 989-7888. Comments are always welcome.