The two candidates offered a contrast of style and substance. McGreevey struck a formal tone with a detailed speech presenting himself as a moderate Democrat. Schundler spoke conversationally, holding the microphone in his hand and stepping away from the podium, as he explained how conservative ideas would benefit average citizens.

Pledging to make New Jersey the "innovation and information" state, McGreevey outlined his vision of a government that builds infrastructure and tackles problems as part of an education-business-labor-government partnership. Schundler explained his ideal of a government that guarantees personal freedom and individual opportunity and provides more services with fewer dollars using good management.

McGreevey called for a "bold new paradigm" in which "New Jersey puts itself on the cutting edge in a new cooperative era between the state, the university community, and business and labor." He also decried the increase in the state debt and spending, pledged to update the state's transportation plan, and called for reinstatement of a public advocate.

Schundler said he wanted to empower individuals by making Trenton less involved in their lives. He touted what he termed the "Republican way" of allowing people to hold on to more of their money and make more decisions for themselves, and giving local communities more decision-making power. He cited the proposed paid family leave mandate, which he opposes. Not only would it put New Jersey at a competitive disadvantage, he said, but it also would be the first time in America that government would pay people who "made a decision, explicitly, not to work at that time."

Both candidates were mindful of the fact that employers dominated the audience. At one point, McGreevey said "I've spent more time with CEOs than any Democrat in recent history." And early in his speech, Schundler chided proponents of an activist government, describing their philosophy as "If it moves, tax it. If it keeps moving, regulate it to death. If it stops moving, subsidize it."

The two also touted their skills at managing their respective cities. (Schundler was mayor of Jersey City; McGreevey is mayor of Woodbridge.) Schundler described his fight to force police officers out from their desk jobs and put them on street patrols-even taking the resulting unfair labor practices case to the State Supreme Court and winning. McGreevey noted how he fired every director when he was first elected as mayor in an effort to create a more responsive City Hall.

Established by the New Jersey Business & Industry Association in 1959, the Employer Legislative Committees are regional grassroots organizations made up of businessmen and women who meet monthly with legislators and governmental decision makers to discuss business issues. There are 18 ELCs throughout the state. For more information about the Employer Legislative Committees, contact Libby Vinson at ext. 201 or lvinson@njbia.org.

Five NEW JOBS Candidates Win in June Primary
All five legislative candidates endorsed by NEW JOBS were victorious in the June 26 primary elections. The five candidates are Senate Majority Leader John O. Bennett (R-12), Essex County Senator Ronald L. Rice (D-28), Assembly Democratic Leader Joseph V. Doria Jr. (D-31), Assemblywoman Connie Myers (R-23), and for the vacant Senate seat in the 31st District, Assemblyman Joseph Charles Jr.

NEW JOBS endorsed these five candidates because of their support for economic growth, creation of private-sector jobs, and lowering of business costs. Throughout the campaign season, NEW JOBS will host endorsement receptions to support candidates who are friendly to business in New Jersey.

For more information about NEW JOBS, visit Political Action on this Web site or contact Executive Director Jim Sinclair at jsinclair@njbia.org.

NJBIA's Legislative Day in Trenton
NJBIA members got a behind-the-scenes look at the New Jersey State Capitol and learned firsthand how the legislative process really works during NJBIA's Legislative Day on June 14.

A capacity crowd of 50 members enjoyed an insider's view of a legislative session day, talked informally with legislators over lunch and watched live floor debates in the General Assembly. The participants even sat at legislators' desks on the Assembly floor while Linda Metzger, clerk of the Assembly, explained what happens in caucus and on the floor during a session day.

Participants picked up tips on how to become effective probusiness advocates from state Senator Joseph Kyrillos (R-13); Don Sico, executive director of the Assembly Majority Office; Diana Bowen Esq., senior assistant counsel for the Governor's Office; and Dale C. Davis Jr., principal research analyst with the Office of Legislative Services.

Experienced NJBIA staff also provided a thorough briefing on how the legislative process functions, who the players are, and why they are important. Association President Joe Gonzalez offered an overview of the current political landscape and explained what the November election could mean for employers, while NJBIA Executive Vice President Phil Kirschner detailed the nuts and bolts of how to get a bill passed or defeated.

Kirschner stressed the importance of grassroots efforts in achieving legislative objectives. "It's essential that legislators hear from employers in their respective districts. I encourage you all to get to know your legislators by hosting a site visit and getting involved in your local Employer Legislative Committee. By doing so, you will strengthen our probusiness message," he said.

For more information about NJBIA's grassroots program, visit Get Involved on this web site or contact Libby Vinson at 609-393-7707, ext. 201, or lvinson@njbia.org.

NEW JOBS South Jersey Reception
The New Jersey Organization for a Better State (NEW JOBS) enjoyed its most successful South Jersey fund-raiser ever. The annual South Jersey Reception, held May 15 at the Mansion in Voorhees, attracted more than 200 participants who came out to support probusiness legislative candidates running in the fall elections.

Thirteen South Jersey legislators attended the event-including Assembly Speaker Jack Collins and Democratic Party Chairman Joseph Roberts-along with gubernatorial candidate Bob Franks. This year's event was co-hosted by the Chamber of Commerce Southern New Jersey, headed by chamber President Debra DiLorenzo, in conjunction with the New Jersey Business & Industry Association.

For more information about NEW JOBS, visit Political Action on this Web site or contact Executive Director Jim Sinclair at jsinclair@njbia.org.

Twelve Projects Feted New Good Neighbor Awards Luncheon
The New Jersey Business & Industry Association presented its 2001 New Good Neighbor Award to 12 development projects across the state during a luncheon ceremony at the Sheraton at Woodbridge Place in Iselin on June 5.

The 12 winners were selected from 33 nominated projects that have a combined construction value of nearly $254 million and employ 7,400 people. Winning projects ranged from the renovation of the 1930s National Newark Building in Newark to Schering-Plough's brand new world headquarters in Kenilworth.

"While the numbers alone are impressive, as they are every year, none of these projects could have been built without your vision and entrepreneurial spirit," NJBIA Chairman Alexander McWilliams III told the crowd of more than 200 builders, architects, and local officials. "And for that the people of New Jersey owe you a debt of gratitude."

NJBIA President Joe Gonzalez noted that half of the twelve winners were projects located in cities. Awards were given to three projects in Newark, two in Jersey City, and one in Camden.

Bristol-Myers Squibb Company, Damon G. Douglas Company, Fleet Bank, Granite Capital, Mercer County Improvement Authority, New Jersey Natural Gas Company, and The Strategy Group sponsored the luncheon.

The 2001 Winners are:

550 Broad Street, Newark

Coriell Institute for Medical Research, Camden

Datascope Corp.-Patient Monitoring Division, Mahwah

The Haines Industrial Center, Burlington Twp.

Harborside Financial Center, Plaza 4A, Jersey City

Northern New Jersey Council-Boy Scouts of America Service Center, Oakland

Seven Giralda Farms, Madison

Schering-Plough Corporation World Headquarters, Kenilworth

Seven Giralda Farms, Madison

Tech II-Technology Centre of New Jersey, North Brunswick

The Martin Luther King Drive Plaza, Jersey City

The National Newark Building, Newark

Welco-CGI Gas Technologies Gas Production Facilities, Newark

Bill Approved Allowing Small Businesses to Get Group Healthcare Discounts
Legislation enabling small employers to band together to negotiate group health plan discounts received final legislative approval June 28 and was sent to Acting Governor Donald T. DiFrancesco to be signed into law. The bill, A-1315 (Myers, Augustine)/S-2436 (Matheussen), allows employers with two to 49 employees to group together to form healthcare purchasing alliances and negotiate discounts for their employee health benefits.

Currently, there is no legal framework for establishing such alliances, leaving small employers at a competitive disadvantage when it comes to purchasing health benefits. NJBIA's 2000 Health Benefits Survey found that the average premium for employers with two to 19 employees was nearly $600 more per employee than the average for large companies. Small employers paid an average of $5,719 per employee for health coverage last year-a 9 percent increase over their average cost in 1999.

By banding together, small employers will be able to get the same type of pricing as large employers. Under the legislation, eligible business groups must be comprised of employers engaged in a similar type of trade, be members of a common professional or trade association, or be located in a common geographic area. The alliances would have access to the state's standard health benefit plans for small groups, along with guaranteed renewal, regardless of the health of employees or their dependents.

The bill would help reduce healthcare costs for thousands of employers, many of whom are seeing their costs rise by double digit rates of inflation. For more information, contact Bryan Markowitz at ext. 225 or bmarkowitz@nkbia.org.

NJBIA Testifies Against Expansion of Discrimination Lawsuits
NJBIA on June 11 urged the Senate Commerce Committee not to enact a broad expansion of discrimination lawsuits that could penalize employers for making legitimate business decisions. NJBIA Executive Vice President Philip Kirschner testified against legislation that would make employers automatically liable for damages in a discrimination lawsuit if an employee shows that the employer's action negatively affected people in a protected class, such as older workers. No defenses would be allowed.

Kirschner pointed out that S-1423 (Singer, Bennett) would not allow employers to use the current defense that their actions represented a reasonable business necessity or were the result of reasonable job-related requirements. If, for example, a company were to close an unprofitable department that happens to employ a large percentage of women, the company would automatically become liable for sex discrimination. The bill could affect a wide range of business decisions, including promotions, layoffs, and early retirement incentives.

The bill was not released from committee. For more information, contact Philip Kirschner at ext. 210 or pkirschner@njbia.org.

Independent Appeals Process Included in Bill Giving Individualsthe Right to Sue Their Health Plans
The Legislature passed a measure that allows individuals to sue their health plans for malpractice. However, prior to the bill's passage, a key NJBIA amendment was added requiring most claimants to first take their claims through the independent appeals process.

With the amendment, only those with serious injuries can go straight to court. Everyone else must first go before a panel of three independent doctors who can make binding decisions on their cases. The amendments to A-3136/S-1333 (Corodemus, Talarico, Connors, Singer)/A-2055 (Kelly, Gusciora) make expensive lawsuits a last resort, not a first resort, in resolving disputes between individuals and their health plans.

The amendment also brings New Jersey's right-to-sue bill into the mainstream. Seven of the eight states that have adopted right-to-sue laws require individuals to go through an independent appeals process before filing a costly lawsuit. All the proposals pending in Congress also require the independent appeals process.

This amendment is critical to holding down costs and the number of lawsuits resulting from this legislation. Using the existing independent appeals process also will produce a quicker response and could head off expensive litigation by producing a result that satisfies a claimant. For more information, contact Bryan Markowitz at ext. 225 or bmarkowitz@njbia.org.

Antitrust Exemption for Doctors Advances
Employers could face increased health benefit costs under legislation released June 4 by the Assembly Health Committee without recommendation. The measure would exempt doctors from antitrust laws, allowing them to join together to negotiate higher fees from insurance plans. Permitting doctors to jointly negotiate higher prices would benefit physicians but increase costs for every health-care consumer.

The bill, SCS-1098/1033/A-2149/A-464/A-2241, directly promotes anticompetitive practices. If any other group of employers attempted to band together to negotiate higher prices with vendors, they would be in violation of antitrust law and prosecuted. Physicians should not be allowed to do what other employers cannot do.

If doctors are permitted to negotiate higher fees, health benefit costs would rise for New Jersey employers, who are already paying the highest insurance premiums in the nation. This would also lead to higher copayments, deductibles, and premium costs for virtually every New Jersey citizen who has health insurance. For details, contact Bryan Markowitz at ext. 225 or bmarkowitz@njbia.org.

Reform of Corporation Business Tax Clears Committee
Legislation that would reform New Jersey's Corporate Business Tax (CBT) to stimulate economic expansion and job creation by New Jersey-based companies was released by the Assembly Commerce Committee on June 4. The bill, A-3420 (DeCroce, Gibson)/S-2314 (Kyrillos, Kenny), would institute a "single sales factor" in the CBT so that New Jersey's tax structure no longer penalizes companies with substantial employment and property in New Jersey.

Currently, the CBT is based on a business' property, payroll and sales in New Jersey. As a result, the more New Jersey-based employment and property a company has, the greater its New Jersey tax liability. This formula benefits corporations with no New Jersey investments but lots of New Jersey sales.

The reform bill would eliminate the property and employment factors when determining a company's share of New Jersey business taxes. By replacing the current tax structure with a single-sales-factor allocation formula, New Jersey would base its share of a company's taxes only on the percentage of sales occurring in New Jersey. Property and employment factors would be eliminated. New Jersey businesses would not be penalized for contributing to New Jersey's economy by creating jobs and investing in capital improvements.

Eight states now utilize a single-sales-factor formula to determine state business taxes-Connecticut, Maryland, Massachusetts, Illinois, Texas, Iowa, Nebraska, and Missouri. New York is seriously considering a change to the single sales factor.

Adopting a single-sales-factor formula would make New Jersey more attractive as a site for business expansion and job creation. It would save employers an estimated $100 million a year. For more information, contact Art Maurice at ext. 247 or amaurice@njbia.org.

Health Data Commission Advances
To help employers make informed healthcare purchasing decisions, the Legislature gave final approval to A-314 (Vandervalk, Cohen)/S-374 (Sinagra, Adler), which will create the Independent Health Data Commission to serve as a single, comprehensive source of healthcare information. The bill was sent to Acting Governor Donald T. DiFrancesco to be signed into law.

NJBIA's Health Affairs Committee developed the idea for the Health Data Commission. The process of purchasing health insurance and choosing a physician or hospital has become more complex. The Health Data Commission would address these concerns by compiling, evaluating, and disseminating information collected from government agencies and private entities, such as the rating of health plans. The information would be easily accessible to employers and the public.

For details, contact Bryan Markowitz at ext. 225 or bmarkowitz@njbia.org.

Quotes of the Month
"...government shouldn't be taking more of our money and more of our decision-making power..."
Republican gubernatorial nominee Bret Schundler at the ELC Biennial Dinner.

"I've spent more time with CEOs than any Democrat in recent history."
Democratic gubernatorial nominee Jim McGreevey at the ELC Biennial Dinner.

WEDNESDAY, JULY 25
Looking for Answers in Purchasing Health Insurance?
This seminar will help you evaluate and compare health insurance plans. Industry professionals will cover critical issues, such as how to comply with health insurance market laws, understanding small employer market laws, questions to ask when buying health insurance, assessing the quality of different plans, and deciphering self-insurance laws. The half-day seminar will be held at the Holiday Inn in Saddle Brook. The cost is $99 per person for NJBIA members and $129 for nonmembers. For details, call Lisa Figatner at 609-393-7707, ext. 239.
Register online

THURSDAY, JULY 26
Campaign 101
If you are running for office, interested in running, currently hold office, or are active in your community, Campaign: 101 is for you! This event will be held from 9:00 a.m. - noon at the Forsgate Country Club in Monroe Township (exit 8A, NJ Turnpike). Come learn from some of New Jersey's best and brightest political operatives, campaign advisors and strategists who will speak on topics such as:

• From Citizen to Candidate: How to Get Involved
• Building a Solid Campaign Operation
• Effective Fund-Raising Tactics
• Dealing with the Media