ECONOMIC DEVELOPMENT
UEZ Administrative Reform – A-3938 (Burzichelli/D-3; Cryan/D-20; Van Drew/D-1; Manzo/D-31; Vas/D-19; Fischer/D-3; Sweeney/D-3): Assembly passed 76-1, Senate passed 36-1, Governor Corzine signed into law on Jan. 13. Broadens the exemption for small businesses under the Urban Enterprise Zone (UEZ) program. Current law requires a business that qualifies for a sales tax exemption to pay the sales tax and then apply for a rebate, except that a business with gross receipts of less than $1 million can receive the sales tax exemption directly at the point of sale. This legislation expands the exception to include a business with gross receipts of less than $3 million. While this legislation is a good first step, the State Chamber supports repealing the rebate requirement for businesses of all sizes. Contact: Mary Ellen Peppard
EDUCATION
School Funding – A-500 (Roberts/D-5; Vas/D19; Conaway/D-7; Greenwald/D-6; Cryan/D-20; Burzichelli/D-3; Diegnan/D-18; Mayer/D-4; Cohen/D-20): Assembly passed 41-37, Senate passed 23-13, Governor Corzine signed into law on Jan. 13. 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 that receive significant levels of funding under the Abbott decision. Contact: Dana Egreczky
ENERGY
Global Warming Solutions Fund – A-4559 (Chivukula/D-17; McKeon/D-27; Stender/D-22; Manzo/D-31; Watson Coleman/D-15): Assembly passed 43-31, Senate passed 23-16, Governor Corzine signed into law on Jan. 13. Authorizes the NJ Department of Environmental Protection to sell, exchange, retire, assign, allocate, or auction allowances from greenhouse gas emissions. While the State 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. The State Chamber will continue to seek an exemption for industrial onsite generation through the regulatory process. Contact: Michael Egenton
ENVIRONMENT
Taxing Solid Waste – A-1886 (McKeon/D-27; Gusciora/D-15): Assembly passed 49-29, Senate passed 26-11, Governor Corzine signed into law on Jan. 13. The Recycling Enhancement Act imposes a tax of $3 per ton on all solid waste generation. The money collected 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
Pay to Play Measure – S-3025 (Lesniak/D-20; Kyrillos/R-13; Quigley/D-32; Cryan/D-20): Senate passed 28-9, Assembly passed 71-7, Governor Corzine signed into law on Jan. 13. Clarifies certain political contribution disclosures that must be made annually to the Election Law Enforcement Commission (ELEC). Specifically under the bill, only for-profit business entities, not nonprofit entities, that receive $50,000 or more in public contracts are required to file annual disclosure statements of political contributions with the ELEC. In addition, only for-profit business entities, not nonprofit entities, are required to disclose certain political contributions prior to entering into certain public contracts. Contact: Jim Leonard
HEALTH CARE
Promoting Health Technology – A-4044 (Conaway/D-7; Chivukula/D-17; Prieto/D-32; Greenstein/D-14; Gordon/D-38; Munoz/R-21; Vas/D-19): Senate passed 35-0, Assembly passed 77-3, Governor Corzine signed into law on Jan. 13. 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 New Jersey Health Information Technology Commission. The plan is to be designed to establish a secure, integrated and interoperative, 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 State 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
LABOR
Mandated Prevailing Wage on BEIP – S-2247 (Sweeney/D-3; Coniglio/D-38; Fisher/D-3; Egan/D-17; Van Drew/D-1): Governor Corzine signed into law on Jan. 4. 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 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 lessen the attractiveness of the BEIP program – an incentive program copied by other states because of its success. Contact: Jim Leonard
TDI Reform – A-3022 (Panter/D-12; Chivukula/D-17): Assembly passed 80-0, Senate passed 35-0, Governor Corzine signed into law on Jan. 13. Prohibits payment of temporary disability benefits (TDI) when the disability is incurred as a result of a fourth degree crime. Currently, the Temporary Disability Benefits Law only prohibits payments for disabilities incurred during the commission of a crime of the first, second or third degree. Contact: Jim Leonard
LEGAL
Anti-Tort Reform – S-176 (Doria/D-31; Scutari/D-22; Oliver/D-34; Greenstein/D-14; Cruz-Perez/D-5; Bramnick/R-21): Senate passed 21-11, Assembly passed 41-32, Governor Corzine did not sign the legislation so it will not become law. 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 our state less competitive. Contact: Jim Leonard
TAXATION
Expanding Tax Credit to Small Business – A-1696 (Fisher/D-3; VanDrew/D-1; Burzichelli/D-3; Manzo/D-31): Assembly passed 77-0, Senate passed 33-0, Governor Corzine signed into law on Jan. 13. 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): Governor Corzine signed into law on Jan. 11. 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
Urban Transit Hub Tax Credit - S-3043 (Codey/D-27; Rice/D-28; Pou/D-35): Senate passed 28-8, Assembly passed 53-22, Governor signed into law on Jan. 15. Establishes a tax credit program for businesses that engage in significant capital investments in urban transit hub areas, specifically properties located within a half-mile of a rail station in municipalities that qualify for urban aid. A business that makes a capital investment of $75 million and employs at least 250 full time employees at an urban transit hub is eligible for tax credits equal to 100 percent of its capital investment costs. Currently nine municipalities are eligible to participate in the program. The State Chamber supports expanding the program to additional municipalities on the rail line. Contact: Mary Ellen Peppar
