June 26, 2008 - Tracking Legislation Important to the New Jersey Business Community
ECONOMIC DEVELOPMENT
 Providing Affordable Housing – A-500 (Roberts/D-5; Watson Coleman/D-15; Green/D-22; Giblin/D-34; Coutinho/D-29; Jasey/D-27; Lesniak/D-20; Redd/D-5): Assembly passed 44-34, Senate passed 21-16, sent to Governor. The bill makes changes to the way New Jersey tackles the issue of affordable housing by requiring a 2.5% fee on the assessed value of any new commercial development or re-construction project. This fee structure would supercede recent regulations by the Council on Affordable Housing (COAH) that guide municipalities on how to generate funds to solve their affordable housing obligation. Under this bill, the fees collected would be used to build affordable housing throughout the state. Contact: Jim Leonard
Assembly Housing and Local Government Committee; Assembly Environment Committee
 Permit Extension Act of 2008 – A-2867 (Greenwald/D-6; Malone/R-30; Cryan/D-20; Biondi/R-16; McHose/R-24; Sarlo/D-36; Van Drew/D-1): Committees passed, Assembly passed 70-9, Senate passed 30-3, sent to Governor. Extends state, county and municipal permits issued after January 1, 2007 until July 1, 2010, with up to an additional six months phase-in period. Businesses cannot easily obtain financing under existing economic conditions and in some cases are forced to delay scheduled projects that have already been approved. This results in some of these permit approvals expiring before the projects are completed. Given that the permit application process is extremely time consuming and expensive, it makes sense to allow additional time for stalled projects to be completed. Businesses may not have the time and money to start the application process over and may abandon these projects or take them to other states. Contact: Mary Ellen Peppard
Senate Community and Urban Affairs Committee
Reforming The Use of Eminent Domain – S-757/S-559 (Rice/D-28; Sweeney/D-3; Buono/D-18): Committee passed with amendments. Supplements various parts of statutory law to provide greater accountability and transparency in the use of eminent domain by government entities in New Jersey. Current amendments address the concerns of home and business owners through an enhanced notification process and fair and equitable compensation. The State Chamber believes eminent domain must remain an option in the economic development process, but there must be reform. Contact: Jim Leonard
Senate Community and Urban Affairs Committee
Providing Flexibility To Hospital Construction – S-1817 (Gordon/D-38): Committee passed. Excludes hospitals and nursing homes from Council on Affordable Housing (COAH) requirements regarding affordable housing regulations when they undergo construction or improvements. This exclusion was added to the COAH bill listed above. Contact: Jim Leonard
ENERGY
Energy Exemptions – S-241/394/710/1098 (Adler/D-6; Bateman/R-16; Smith/D-17; Sweeney/D-3; Haines/R-8): Senate passed 37-0, Assembly passed 79-1, sent to Governor. Establishes a property tax exemption for renewable energy systems that are part of a residential, commercial, industrial or mixed use building. The systems must also produce renewable energy onsite to provide all or a portion of the electrical, heating, cooling, or general energy needs of that building. Renewable energy is defined as electric energy produced from solar technologies, wind energy, fuel cells, geothermal technologies, wave or tidal action, methane gas from landfills, a resource recovery facility, a hydropower facility or a biomass facility, or energy produced from solar thermal or geothermal technologies. The bill also provides tax exemptions attributable to energy cost saving measures that reduce consumption of water and energy. The State Chamber supports tax exemptions that create incentives for businesses and residents to save energy and consider alternative energy sources. Contact: Michael Egenton
ENVIRONMENT
Senate Environment Committee and Assembly Environment Committee
Public Access and Marina Safety Act – S-1553 (Ciesla/R-10; Van Drew/D-1; Wolfe/R-10; Holzapfel/R-10; Amodeo/R-2; Polistina/R-2; Albano/D-1; Milam/D-1): Committees passed, Senate passed 38-0, Assembly passed 79-0, sent to Governor. Imposes a moratorium on the implementation of the rules and regulations adopted by the NJ Department of Environmental Protection (NJDEP) governing public access at marinas. While the moratorium is being implemented, a Public Access and Marina Safety Task Force established under the amended legislation will conduct a study addressing the issues raised by the rules and regulations. The Task Force is directed to submit a report to the Governor and the Legislature by Dec. 31, 2010. The State Chamber believes the current NJDEP regulations raise concerns regarding property rights, safety and homeland security issues. Contact: Michael Egenton
Senate Environment Committee
 Fixing the Site Remediation Program – S-1897 (Smith/D-17): Committee received testimony only. Establishes a Licensed Site Professional (LSP) program for site remediation. This legislation proposes to borrow aspects of a Massachusetts program which allows certified professionals to proceed through the investigation and remediation of selected sites with a minimum of NJDEP oversight. Sites involving critical "at risk" receptors or those involving recalcitrant responsible parties would still require significant NJDEP oversight. NJDEP would determine when all cases were satisfactorily cleaned up and only they could issue a No Further Action determination. The State Chamber is working closely with NJDEP and members of the Senate Environment Committee on amendments. Contact: Michael Egenton
Click here to view the Chamber’s Site Remediation Study.
GOVERNMENT REFORM
Local Government Financial Disclosure Requirement – S-103 (Weinberg/D-37; Scutari/D-22; Johnson/D-37; Vainieri Huttle D/37): Senate passed 38-0, Assembly passed 79-0, sent to Governor. Amends the Local Government Ethics Law to require local government officers to file a financial disclosure statement within 30 days of taking office. Currently, a local government officer has until April 30 to file the required financial disclosure statement. This means that under existing law some local government officers, such as those elected through a non-partisan election in May, are not required to file a financial disclosure statement until April 30 of the following year. Under this legislation, all local government officers are to file a financial disclosure statement within 30 days of taking office. Contact: Jim Leonard
Senate State Government Committee and Senate Budget and Appropriations Committee
Public Employee Pension and Benefits Reform Act of 2008 – S-1962/1964/1965/1969/2077 (Buono/D-18; Sweeney/D-3; Scutari/D-22; Kean, T./R-21; Roberts/D-5): Committees passed, Senate passed 31-8, Assembly passed 52-13, sent to Governor. Makes various changes to the Public Employee Retirement System (PERS) concerning retirement age, eligibility, and purchase of service credit. Additionally, the bill merges the Lincoln Birthday holiday into President’s Day for state employees. Salary and benefits packages enjoyed by today's public sector employees is significantly higher than that of the private sector. The State Chamber believes this measure takes an important first step in leveling the playing field. This is a major reform initiative for the Platform for Progress Government Reform Coalition. Contact: Jim Leonard
Click here to view chamber testimony on pension reform.
HEALTH CARE
Senate Budget and Appropriations Committee
 Hearing Aid Mandate – S-467 (Buono/D-18; Lance/R-23): Committee passed. Requires health insurers to cover the cost of hearing aids for individuals 15 years 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
Senate Budget and Appropriations Committee
Expanding Family Care – S-1557 (Vitale/D-19; Singer/R-30; Cohen/D-20; Greenwald/D-6; Ramos/D-33; Burzichelli/D-3; Moriarty/D-4): Senate passed 39-0, Assembly passed 59-18, sent to Governor. The purpose of this bill is to ensure that more residents in the state have access to affordable health care coverage by expanding the NJ FamilyCare Program to more low income parents, mandating that all children in the state have health care coverage either through public programs or private coverage, and adopting various reform measures to the individual and small employer insurance markets to increase the affordability of health benefits plans for individuals and small businesses. The provisions of this bill represent the first phase of a comprehensive reform of the health care system which, when fully implemented, will provide universal health care coverage for all state residents. Health care is one of the single largest costs for today's businesses. The overall goal of the Platform for Progess Healthcare Coalition is to work to create a health care system that is accessible, accountable and affordable. Contact: Jim Leonard
Click here to view chamber testimony on S-1557.
Assembly Health and Senior Services Committee
Supporting Nurses – A-383/S-621 (Diegnan/D-18; Vitale/D-19; Weinberg/D-37): Committee passed. Concerns the organization and operation of the New Jersey Collaborating Center for Nursing and provides a permanent funding source for the center to ensure the sustainability of the center. This is an important measure for the Platform for Progress Healthcare Coalition. Contact: Jim Leonard
LABOR
Keeping the UI Fund Solvent – S-1698 (Buono/D-18; Kean, S./R-11; Greenwald/D-6; Milam/D-1; Schaer/D-36): Senate passed 39-0, Assembly passed 80-0, Governor Corzine signed into law on June 19. Provides a supplemental appropriation of $260 million from the state’s fiscal 2008 budget surplus for the purpose of preventing an automatic tax increase on New Jersey employers caused by depleted balances in the unemployment compensation fund. The fund, which pays weekly benefits to unemployed workers, is funded by payroll taxes on employers and workers. Contact: Jim Leonard
Click here for more information.
Senate Labor Committee
Worker Compensation Reform Package – S-1915 (Sarlo/D-36; Cunningham/D-31; Cohen/D-20; Egan/D-17; Giblin/D-34); S-1916 (Sarlo/D-36; Pennacchio/R-26; Egan/D-17; Cohen/D-20; Giblin/D-34; Barnes/D-18) and S-1918 (Sarlo/D-36; Madden/D-4; Egan/D-17; Cohen/D-20; Giblin/D-34; Barnes/D-18): Committee passed, Senate passed, Assembly passed, sent to Governor. This package of bills is supported by the chamber because it reforms the state’s worker compensation system. Specifically the bills require employers to provide proof of current workers’ compensation coverage under certain circumstances, clarifies the procedure of worker claims when the worker is in need of emergent medical care, and gives authorization to the Insurance Fraud Prosecutor to investigate cases of failure to provide workers’ compensation insurance coverage. Contact: Jim Leonard
Assembly Labor Committee
Suspending Mortgage Loan Payments – A-2934 (Conners/D-7; Conaway/D-7): Committee passed. Allows an employee or former employee involved in a large-scale layoff to request a suspension of the payment of interest on a mortgage loan that was secured by the person before the layoff. The suspension would remain in effect for 180 days from the date of the order. Contact: Jim Leonard
Job Training For Employees – A-2936 (Conners/D-7; Conaway/D-7): Committee passed. Provides employees, whose employers are required to provide them with advanced notice of a plant closing, with increased opportunities to obtain tuition waivers for job training at all state public and county colleges. The bill also specifies that workers notified of a layoff due to plant closings, transfers or mass layoffs are included in the definition of "qualified displaced worker" under the Workforce Development Partnership Program and are considered eligible for training benefits under that program. Contact: Jim Leonard
STATE BUDGET
Senate Budget and Appropriations Committee and Assembly Budget Committee
Fiscal 2009 State Budget – A-2800 (Greenwald/D-6; Pou/D-35; Schaer/D-36; Roberts/D-5; Buono/D-18): Committees passed, Assembly passed 45-34, Senate passed 23-16, sent to Governor. Appropriates $32.86 billion in state funds and $10.34 billion in federal funds for the state budget for fiscal year 2009. This year's budget is unprecedented because it appropriates $600 million less than the fiscal 2008 budget, which breaks the pattern of significant yearly budget increases. The State Chamber commends legislators and the Corzine Administration for crafting a budget that reduces spending below last year's level and that contains no new or increased taxes for the second year in a row. This budget demonstrates to the employer community that our government is finally beginning to address the serious fiscal problems plaguing the state. This important first step in controlling spending will help economic growth efforts by sending a positive message to potential investors in New Jersey, as well as those outside the state, that our government is interested in creating a favorable fiscal environment. Contact: Mary Ellen Peppard
Click here to view chamber testimony on the state budget.
Click here for a budget summary.
Required Voter Approval for State Financial Borrowing – SCR-39 (Lance/R-23; Lesniak/D-20; Watson Coleman/D-15; Albano/D-1; Milam/D-1; Doherty/R-23; Dancer/R-30; Stender/D-22): Senate passed 29-0, Assembly passed 62-16, filed with the Secretary of State. This resolution proposes to amend the State Constitution to require voter approval of new laws that allow the state to borrow money by issuing certain state independent authority bonds backed by a pledge of state annual appropriations to pay the principal and interest on the bonds. This is an important measure for the Platform For Progress Government Reform Coalition. Contact: Jim Leonard
Preventing Casino Shutdowns – S-1463 (Whelan/D-2; Girgenti/D-35; Burzichelli/D-3; Dancer/R-30; Moriarty/D-4): Senate passed 39-0, Assembly passed 78-1, sent to Governor. Provides that in the event of an emergency, including a shutdown of state government due to the failure of the Governor and the State Legislature to enact a general appropriation law by the deadline prescribed in the New Jersey Constitution, casino and simulcasting facilities will remain open and in full operation. This legislation ensures that the state would not lose millions in casino tax revenues in the event of a government shutdown. Given the state's fiscal situation, it is imperative that revenue-generating activities be permitted to continue. Contact: Mary Ellen Peppard
TELECOMMUNICATION
Assembly Telecommunications and Utilities Committee
Exemptions from BPU Review – A-2906 (Chivukula/D-17): Committee passed, Assembly passed 74-4, Senate passed 35-3, sent to Governor. Permits certain companies which do not themselves provide regulated telecommunications or cable television services, to engage in various types of corporate transactions, including combining, merging or consolidating with, or acquiring control of, another organization, without review or approval by the Board of Public Utilities (BPU). This bill will promote competitive policies in New Jersey by striking the right balance between preserving the BPU’s core oversight over cable company transactions and allowing the parent or holding company to engage in important financial transactions that have no bearing on cable operations. Contact: Jim Leonard
Assembly Telecommunications and Utilities Committee
Reviewing the State’s Computer System – A-2492 (Chivukula/D-17; Fisher/D-3): Committee passed and Assembly 78-2. Directs the Chief Technology Officer within the Office of Information Technology to conduct a study of the current use of high-volume, basic computing (HVBC) systems by state departments and agencies and to analyze the potential costs and benefits of switching to alternative types of large scale computing systems that may be available in the marketplace. Contact: Jim Leonard
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.
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