March 2007

ECONOMIC DEVELOPMENT

Assembly Commerce and Economic Development Committee
Expanding Tax Credit to Small Business – A-1696 (Fisher/D-3; Van Drew/D-1; Burzichelli/D-3; Manzo/D-31): Committee passed, referred to the Assembly Budget 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

Assembly Commerce and Economic Development Committee
UEZ Administrative Reform – A-3938 (Burzichelli/D-3; Cryan/D-20; Van Drew/D-1; Manzo/D-31; Vas/D-19; Fisher/D-3): Committee passed, referred to the Assembly Budget Committee.  Broadens an exception in Urban Enterprise Zones (UEZs) by allowing a point-of-sale sales tax exemption for a UEZ business.  This bill will ease the administrative burden for UEZ-only businesses to utilize the sales tax exemption.  Contact: Mary Ellen Peppard

ENERGY

Relief from Energy Taxes – A-3759 (Pou/D-35; Chivukula/D-17; Voss/D-38; Vas/D-19; Steele/D-35; Doria/D-31; Codey/D-27): Senate passed 30-3, sent to the Governor.  Exempts from payment for seven years specific taxes and energy charges for certain manufacturing facilities. Manufacturers are among the largest users of electricity and natural gas. The Chamber believes that high energy costs are hampering state manufacturers and the exemptions provided under this bill will encourage them to stay here and expand operations.  Contact: Michael Egenton

Senate Economic Growth Committee
Energy Exemptions – S-356/1497/2409 (Bark/R-8; Adler/D-6; Smith/D-17; Sweeney/D-3): Committee passed, referred to the Senate Budget and Appropriations Committee.  Establishes a property tax exemption for “renewable energy systems” - electric energy produced from solar technologies, photovoltaic technologies, wind energy, fuel cells, geothermal technologies, wave or tidal action, methane gas from landfills, resource recovery facility, hydropower facility or a biomass facility.  A renewable energy system would include 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

Senate Economic Growth Committee and Assembly Environment and Solid Waste Committee
Changing the Energy Subcode – S-2154 (Smith/D-17) and A-3595 (McKeon/D-27; Chivukula/D-17; Prieto/D-32; Watson Coleman/D-15): Committees passed.  This bill would allow the energy subcode to be updated at any time based on NJ Board of Public Utlilities energy projections, as opposed to its current three-year update.  The current process works well and allows any changes to the Uniform Construction Code to receive an extensive review by an advisory board of building professionals. Contact: Michael Egenton

GOVERNMENT REFORM

Clean Elections Pilot Project – A-100 (Roberts/D-5; Greenstein/D-14; Greenwald/D-6; Baroni/R-14; Handlin/R-13; Turner/D-15):  Senate passed 23-9, Assembly passed 58-18, sent to the Governor.  Creates the 2007 NJ Fair and Clean Elections Pilot Project Act by appropriating $7.675 million. This bill builds on the pilot project from two years ago and represents a significant step toward improving the way elections are run in the state. Contact: Jim Leonard

Corruption Busting – S-1192 (Adler/D-6; Karcher/D-12): Senate passed 37-0. Establishes the crime of corruption of public resources and is intended to complement existing applicable criminal laws pertaining to official misconduct, theft, fraud and public contracting.  S-1318 (Karcher/D-12; Madden/D-4):  Senate passed 37-0.  Establishes the Public Corruption Profiteering Penalty Act and authorizes the assessment of additional monetary criminal penalties on any person convicted of a crime involving the negotiation, award, performance or payment of a local, county or State contract.  Combating corruption and imposing stiff penalties on violators is a major priority of the Platform for Progress. Contact: Jim Leonard

LABOR

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):  Senate passed 24-12.  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

TAXATION

Assembly Appropriation Committee
Tax Relief – S-2269/2289 (Buono/D-18; Ciesla/R-10; Vitale/D-19; Scutari/D-22) and A-4065 (Van Drew/D-1; Manzo/D-31; Gusciora/D-15; Diegnan/D-18; Blee/R-2; Holzapfel/R-10; Albano/D-1): Committee passed.  Exempts sales and use tax on initiation fees, membership fees and dues for access to or use of health and fitness, athletic, sporting or shopping club or organization, and certain parking services. The 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

Schedule of Senate Budget & Appropriations Committee Meetings Regarding FY 2008 Budget:

All meetings will be held in Committee Room 4 of the State House Annex in Trenton

March 28 – 10 a.m. - Budget Overview & Revenue Forecast – State Treasurer & Office of Legislative Services
April 4 – 10 a.m. -Department of Transportation, NJ Transit and Motor Vehicle Commission
April 4 – 1:30 p.m. – Department of Environmental Protection
April 11 – 11 a.m. - Department of the Public Advocate
April 11 – 1:30 p.m. – NJ Commerce & Economic Growth Commission
April 16 – 10 a.m. - Department of Education
April 18 – 2:30 p.m. – Department of Labor & Workforce Development
April 23 – 10 a.m. – Department of Health & Senior Services
April 23 – 1:30 p.m. – Department of Banking & Insurance
May 2 – 1:30 p.m. – Department of Community Affairs
May 7 – 10 a.m. – Revenue Update - State Treasurer & Office of Legislative Services

Schedule of Assembly Budget Committee Meetings Regarding FY 2008 Budget:

All meetings will be held in Committee Room 11 of the State House Annex in Trenton

March 27 – 10 a.m. - Department of Environmental Protection
March 27 – 2 p.m. - Department of Transportation, NJ Transit and Motor Vehicle Commission
March 29 – 10 a.m. - Department of Education
April 19 – 10 a.m. - Department of Community Affairs
May 3 – 10 a.m. - Revenue Update - State Treasurer & Office of Legislative Service

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.