June 29, 2007

The New Jersey State Legislature has recessed and is not likely to return until after the November 6 election. We expect a fairly busy session after the election, with any bills that have not been passed by both houses facing the possibility of debate and passage. Generally known as the Lame Duck session, the time between November 6 and early January will be devoted to finalizing legislative initiatives and priorities before the new session begins. Below you will find an accounting of the legislative activities that happened over the last two weeks. 


ECONOMIC DEVELOPMENT

Senate Economic Growth Committee
Establishes Technology Innovation Zones – A-2098 (Chivukula/D-17; Greenstein/D-14; Lampitt/D-6; Cohen/D-20; Whelan/D-2): Committee passed. Establishes an innovation zone program to stimulate technology industry clusters around New Jersey's research universities, colleges or research hospitals. Specifically, the bill requires the Commission on Science and Technology to modify its programs to promote and support networks and collaboration between the local technology industry and university or hospital researchers in the innovation zones by increasing federal funding to universities in areas of strategic importance to NJ's technology industry.  In addition, the bill promotes the transfer of technology and commercialization of new ideas in order to further develop continuing support for technology companies in the innovation zones.
Contact: Mary Ellen Peppard

Information Clearinghouse Website – A-2889 (Bateman/R-16; Handlin/R-13; Burzichelli/D-3): Assembly passed 79-1, referred to the Senate Economic Growth Committee. Requires the NJ Commerce, Economic Growth and Tourism Commission to provide an information clearinghouse on its website for businesses interested in relocating to New Jersey.  The information shall be updated monthly in consultation with the state Department of Labor and Workforce Development.  The information will include comprehensive state demographic data, major employer data, business sites and building information. This bill recognizes the importance of attracting business to our state through education and promotion. Contact: Mary Ellen Peppard

UEZ Administrative Reform – A-3938 (Burzichelli/D-3; Cryan/D-20; Van Drew/D-1; Manzo/D-31; Vas/D-19; Fisher/D-3): Assembly passed 76-2, referred to the Senate Economic Growth Committee. This bill will ease the administrative burden for UEZ-only businesses to utilize the sales tax exemption at the point-of-sale. Contact: Mary Ellen Peppard

Reporting High School Graduation Rates – A-3134 (Cryan/D-20; Epps/D-31; Lampitt/D-6; Fisher/D-3): Assembly passed 79-0, referred to the Senate Education Committee. Requires each school district with high school enrollment to provide information from its school register on students enrolled in the district. This will enable the NJ Department of Education to calculate high school, school district and statewide drop-out and graduation rates. The bill was amended to require this information be included in the annual NJ School Report Card.  Contact: Dana Egreczky

Revises the School Construction Program – A-4336 (Stanley/D-28; Caraballo/D-29; Pou/D-35; Van Drew/D-1; Vas/D-19; Schaer/D-36): Senate passed 33-2, Assembly passed 50-30, sent to Governor. Revises the school construction program and implements a number of the recommendations made by the Interagency Working Group on School Construction. The charge of the working group was to review the school construction program and develop recommendations to reform the program and improve its operation and management. While the State Chamber recognizes that this legislation is a first step in reforming the school construction program, fundamental change in the way contracts are awarded and managed must follow. The overall school construction program is in dire need of a major overhaul and must be carefully reviewed to ensure that adequate safeguards are in place to prevent the waste, fraud and abuse that have plagued the school construction program in the past. Contact: Jim Leonard

Energy Exemptions – S-356/1497/2409 (Bark/R-8; Adler/D-6; Smith/D-17; Sweeney/D-3): Senate passed 37-0, referred to the Assembly Environment and Solid Waste Committee. Establishes a property tax exemption for "renewable energy systems. " These include electric energy produced from solar technologies, photovoltaic technologies, wind energy, fuel cells, geothermal technologies, wave or tidal action, methane gas from landfills and resource recovery, hydropower or biomass facilities. A renewable energy system includes any equipment that is part of a residential, commercial, or industrial building that produces renewable energy onsite to provide all or a portion of the electrical, heating, cooling, or general energy needs of that building. Contact: Michael Egenton

Changing the Energy Subcode – A-3595 (McKeon/D-27; Chivukula/D-17; Prieto/D-32; Watson Coleman/D-15; Stender/D-22): Assembly passed 66-12, referred to the Senate Budget and Appropriations Committee. Allows the energy subcode to be updated at any time based on BPU energy projections, as opposed to its current three-year update. Because the current process works well, allowing for changes to the Uniform Construction Code to receive an extensive review by an advisory board of building professionals, the legislation is unnecessary. Contact: Michael Egenton

Advocating Use of Fluorescent Light Bulbs – A-3983 (Chatzidakis/R-8; Stender/D-22; Chivukula/D-17; Rooney/R-39; Van Drew/D-1): Senate passed 37-0, sent to Governor. Requires the state to replace incandescent light bulbs with compact fluorescent light bulbs (CFLs) and requires that the NJ Board of Public Utilities commit to educating the public on the benefits of CFLs. CFLs are four times more efficient, last up to 10 times longer than incandescent bulbs, use 50 to 80 percent less energy, and serve to lower the carbon footprint. Contact: Michael Egenton

Global Warming Response Act – A-3301 (Stender/D-22; Vainieri Huttle/D-37; Gusciora/D-15; Greenstein/D-14; McKeon/D-27; Buono/D-18; Kean/R-21; Smith/D-17): Assembly passed 72-8, Senate passed 36-1, sent to Governor. Directs the state Department of Environmental Protection to establish a greenhouse gas emissions monitoring and reduction program and requires that greenhouse gas emissions in the state be reduced to 1990 levels by 2020. The state should focus on policies that will foster the development and implementation of new technologies that will assist in reducing emissions and not place New Jersey at a competitive disadvantage with other states. Additionally, the Chamber believes wind and solar alone will not meet the growing energy demands of our state in outlying years and serious consideration must be given to adding nuclear and natural gas to supplement the energy equation. Contact: Michael Egenton

Banning Political Contributions by Government Entities – S-222 (Karcher/D-12; Buono/D-18; Johnson/D-37; Vainieri Huttle/D-37): Assembly passed 80-0, sent to Governor. Prohibits all state and local public agencies from contributing to a candidate for elective public office or to any candidate committee. A violator who holds an elective public office may be required to forfeit that office under certain circumstances. Contact: Jim Leonard

Corruption Busting – S-1192 (Adler/D-6; Karcher/D-12; Cohen/D-20; O’Toole/R-40;): Assembly Passed 80-0, sent to Governor. Establishes the crime of corruption of public resources intended to complement existing applicable criminal laws pertaining to official misconduct, theft, fraud and public contracting. Contact: Jim Leonard

Ethics Reform Measures – 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): Assembly passed 80-0, 2nd Reading in Senate for concurrence. S-2505 (Codey/D-27; Kean/R-21; Panter/D-12; Schaer/D-36; O’Toole/R-40; Malone/R-30; Biondi/R-16): Assembly passed 77-0, sent to Governor. S-2506 (Codey/D-27; Allen/R-7; Conners/D-7; Conaway/D-7; McKeon/D-27; Malone/R-30; Biondi/R-16; O’Toole/R-40): Assembly passed 80-0, sent to Governor. The three bills restrict members of the Legislature and legislative staff from accepting the receipt of things of value from lobbyists, requires more extensive reporting and prohibits the distribution of campaign contributions by a candidate to any charitable organization of which the candidate or a member of the candidate’s immediate family is a paid officer, director or employee. Contact: Jim Leonard

Committee on Ethical Standards – A-200 (Roberts /D-5; Panter/D-12; Whelan/D-2): Assembly passed 76-3, referred to the Senate State Government Committee. Reconstitutes the membership of the Joint Legislative Committee on Ethical Standards so that it will be comprised of eight public members. Contact: Jim Leonard

ELEC Standards For Lobbyists – A-3338 (Fisher/D-3; Burzichelli/D-3): Assembly passed 80-0, referred to the Senate State Government Committee. Requires governmental affairs agents retained by state government entities to file with ELEC notice of representation and separate quarterly and annual reports on activities and expenditures. Contact: Jim Leonard

Establishing an Ethics Counsel – A-4011 (Greenstein/D-14; Panter/D-12; O’Toole/R-40; Malone/R-30; Codey/D-27; Kyrillos/R-13): Assembly passed 80-0, Senate passed 36-1, sent to Governor. Creates the position of Ethics Counsel to provide informal ethics advice to individual members of the Legislature, officers and employees in the Legislative Branch. Contact: Jim Leonard

Hospital Infection Prevention Programs – S-2580 (Buono/D-18; Vitale/D-19; Greenstein/D-14; Stender/D-22; Conaway/D-7; Gordon/D-38): Senate passed 36-0, Assembly passed 72-0, sent to Governor. Requires hospitals to implement infection prevention programs and to report the number of certain infections to NJ Department of Health and Senior Services. Contact: Jim Leonard

LABOR

Senate Budget and Appropriations Committee
Paid Family Leave Advances - Supported by Governor  – S-2249 (Sweeney/D-3; Buono/D-18): Committee passed.  Expands the Temporary Disability Insurance (TDI) program to provide TDI benefits for workers caring for sick family members and newborn and newly adopted children. Governor Jon Corzine told members of the AFL-CIO on June 13 that he supports paid family leave. New Jersey is currently one of only six states that provide TDI benefits for the birth of a child.  Committee amendments include a reduction in the maximum duration of family leave benefits from 12 to 10 weeks, changing the tax base from the social security tax base of the first $97,000 of a worker's wages to the TDI tax base of the first $26,600 of a worker's wages, changing the date when employee payments would begin (January 2009), and changing the date when employees can begin receiving benefits (July 2009).  Mandating paid time off for businesses of all sizes disrupts the employer/employee relationship by mandating a one size fits all benefit package.  

Click here to tell legislators you oppose paid family leave.

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 57-20, sent to Governor. Requires employers with 100 or more workers to provide 90 days notice if the employer terminates 50 or more employees in a 30-day period. Businesses would be required to give notice to the 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 Financial Institutions and Insurance Committee
Anti-Tort Reform – A-1511 (Oliver/D-34; Greenstein/D-14): 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. Allowing a jury to award limitless damages will add to the uncompetitiveness of our state. Contact: Jim Leonard

Mandated Disclosures on Development Subsidies – S-1213 (Turner/D-15; Gusciora/D-15; Cohen/D-20): Assembly passed 69-10, Senate passed 35-1, sent to Governor. Requires certain disclosures of information from businesses that receive subsidies, including tax incentives, from any state agency. These businesses are currently required to submit annual reports on their progress in attaining the job creation or retention goals stated in their applications. This bill puts additional unnecessary and duplicative paperwork requirements on incentive recipients. Contact: Mary Ellen Peppard

Tax Relief – S-2269/2289 (Buono/D-18; Ciesla/R-10; Vitale/D-19; Scutari/D-22; Van Drew/D-1; Manzo/D-31; Gusciora/D-15; Diegnan/D-18; Blee/R-2; Holzapfel/R-10; Albano/D-1): Assembly passed 78-0, Senate passed 37-0, sent to Governor. Exempts sales and use tax on initiation and membership fees and dues for access to or use of health and fitness, athletic, sporting, shopping clubs or organizations, as well as certain parking services. These bills remove some of the burdensome new taxes that were levied during the previous budget cycle. The Chamber encourages the legislature to consider spending reductions before levying new taxes and continue to review the tax burden to identify additional areas where taxes can be reduced or removed. 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 37-0, Assembly passed 71-8, sent to Governor. 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

Keeping the Casino Industry Open – A-3338 (Fisher/D-3; Burzichelli/D-3): Assembly passed 80-0, referred to the Senate Wagering, Tourism and Historic Preservation Committee. Provides for funding of casino regulation during period when annual appropriations act is not in effect. Contact: Mary Ellen Peppard


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.