Two Governors Sign Two Major Business Bills-
S Corporation Tax Cut and Regulatory Reform
Two appears to be a lucky number for New Jersey businesses. Inthe first TWO months of 2001, TWO New Jersey governors signed TWO billsaddressing TWO of employers' biggest concerns-taxes and regulations.On January 16, then Governor Christie Whitman signed regulatory reformlegislation, bringing a 14-year effort to improve New Jersey's bureaucraticrule-making process to a successful conclusion. Whitman resigned on January31 to take over as administrator of the federal Environmental ProtectionAgency, making Senate President Donald T. DiFrancesco Acting Governor. DiFrancesco wasted little time, making the first bill he signed as ActingGovernor on February 2 one that phases out the double taxation of S corporations. Both initiatives have been near the top of the business community's agenda.
The S corporation bill, A-1846 (Gregg, Talarico)/S-848 (Bucco, Inverso),phases out the double taxation of approximately 73,000 small businessesover a three-year period. Beginning July 1, S corporations with incomeof less than $100,000 will pay no corporate income tax on regular income. For S corporations with more than $100,000 in income, the tax will be cutfrom 2 percent to 1.33 percent after July 1, 2001, to 0.67 percent afterJuly 1, 2002, and eliminated after July 1, 2003.
"On behalf of the business community, I want to commend Governor DiFrancescofor his efforts on behalf of this legislation and the bill's sponsors forall of their hard work," NJBIA President Joe Gonzalez said. "Thislaw eliminates one of the most onerous and unfair business taxes on thebooks."
Under previous state law, the regular income of S corporations was firstsubjected to the state corporate business tax and then taxed again as personalincome earned by the corporations' owners. By phasing out the corporatetax on S corporations, New Jersey is bringing its tax structure in linewith that of the Internal Revenue Service and 42 other states that do nottax S corporation income twice.
The regulatory reform law, A-1484 (Heck, Talarico)/S-1306 (Bark, Adler),changes the way New Jersey regulations are proposed and public commentis solicited. The law's main provisions require state agencies togive ample advanced notice before issuing new regulations, prepare meaningfulregulatory impact statements that include a cost/benefit analysis, andwrite regulations in plain English.
These long-overdue reforms address one of the most persistent problemsemployers face-the massive tangle of regulations put forth every year byNew Jersey's regulatory agencies. The new law will help employersunderstand future regulatory proposals and give them sufficient time tocomment. It also recognizes that the cost of implementing regulationsmust be reviewed along with the benefits they are intended to provide.
NJBIA Leads Fight Against Paid Family Leave Mandate
NJBIA and a coalition of employer groups last month began a major pushto defeat legislation that would make New Jersey the first state in thenation to impose a costly paid leave mandate on all employers. Targetedfor defeat is S-1923 (Sinagra, Lynch) and A-3049 (Friscia, Vandervalk),which would require all employers, even those with as few as two employees,to provide the parents of newborn or newly adopted children with 12 weeksof paid leave. Under the proposal, eligible parents would receive fullunemployment benefits during the leave period.
In response to a news conference called by the AFL-CIO and other laborunions to promote the bill January, NJBIA issued a detailed rebuttal thatwas picked up by all five major daily newspapers and three television stationscovering the news event. NJBIA's government affairs staff also has beenworking hard to defeat the bill. Joining NJBIA in this fight is a largecoalition of employer groups that includes the Chamber of Commerce SouthernNew Jersey, New Jersey Retail Merchants Association, New Jersey Associationof Women Business Owners, New Jersey Chapter of the National Federationof Independent Businesses, Commerce & Industry Association of New Jersey,and the New Jersey Food Council, among others.
"Employers are already struggling to fill positions in the most severelabor shortage in 30 years. This legislation will severely disrupt theoperations of small employers throughout the state," NJBIA President JoeGonzalez said. "New Jersey employers will have to scramble to fill emptypositions by hiring substitute workers, if they can find them at all, orthey will have to pay their other employees overtime."
Write your state legislators! Tell them howthe paid leave mandate will hurt your business!
Whitman ApprovesStreamlining of TDI/UI
Legislation that will reduce employerpaperwork by setting the same eligibility requirements for both unemploymentinsurance and temporary disability insurance was signed into law by thenGovernor Whitman on January 29. A-2614 (Gregg, Thompson) cuts paperworkfor New Jersey employers by reducing the number of eligibility thresholdsfor unemployment insurance and bringing temporary disability insuranceeligibility standards in line with unemployment insurance requirements.NJBIA supported the measure. For more information, contact Jeff Stollerat ext. 209 or jstoller@njbia.org.
Senate Committee Approves Health Data Commission
Legislation that would help New Jersey employers provide their employeeswith the best possible health plans at the lowest cost was released bythe Senate Health Committee on January 22. The bill, S-374 (Sinagra,Adler)/A-314 (Vandervalk, Cohen), would create the Healthcare Data Commission,which would serve as a single, comprehensive source of healthcare information.The bill would help businesses make informed healthcare purchasing decisions. For more information, contact Bryan Markowitz at bmarkowitz@njbia.orgor at ext. 225.
DiFrancesco Becomes Acting Governor
Senate President Donald T. DiFrancesco became Acting Governor on January31 as Christie Whitman resigned as New Jersey's chief executive to becomehead of the federal Environmental Protection Agency. The New JerseyState Constitution requires DiFrancesco to serve as both Acting Governorand Senate President until a new Governor is sworn in next January. DiFrancesco named long-time Senate aide Jeff Michaels as the new chiefof staff.
NJBIA SITE VISIT:
At Brinkerhoff Environmental, Working Underground Brings
New Lifeto Old Abandoned Properties
There are plenty of companies that can test well water for contaminantsand put together a remediation plan. There are plenty of companiesthat can drill holes for water testing and soil sampling. ConsolidatedResource Management, Inc. is one of the few companies in New Jersey thatcan do both.
Comprised of Brinkerhoff Environmental Services and Diamond DrillingCo., Inc., Consolidated Resource Management is a leading environmentalconsulting firm that provides groundwater testing, brownfields investigations,site remediation, and environmental permitting. In addition to thedrilling that Brinkerhoff Environmental requires, Diamond Drilling alsoprovides heavy construction drilling for dams, wells, and a variety ofother projects.
"We get involved with things that happen under the ground," said LauraBrinkerhoff, president and owner of Consolidated.
As part of NJBIA's Site Visit Program, Brinkerhoff in January hostedSenator Martha Bark, Assembly Members Clare Farragher and David Wolfe,and a host of local elected officials and economic development professionalsat their facilities in Farmingdale and Medford. Consolidated's headquartersis in Manasquan.
NJBIA's Site Visit Program puts legislators in touch with businessesin their own backyards, giving them a firsthand look at the people andthe industries they represent. Since 1997, NJBIA has organized 88site visits across the state in which a majority of the state's legislatorshave participated.
Using real world examples, Laura Brinkerhoff walked her visitors througha variety of different projects, explaining how her company addresses environmentalproblems involving everything from leaky fuel oil tanks to abandoned commercialproperties.
When it rains, Brinkerhoff gets calls from homeowners who have fueloil in the water seeping into their leaky basements. Brinkerhoffcan design a groundwater treatment system to clean the contaminated water. If need be, the house can be jacked up off the ground to get to the watertable underneath. At commercial sites, some wells are so contaminatedthey require years of pumping and water treatment.
But it is the revitalized abandoned properties of which Laura Brinkerhoffseems proudest.
"We are able to take properties that are abandoned or underutilizedand bring them back to commercial use," Brinkerhoff said as she pointedto pictures of an abandoned gas station that, thanks to her company's efforts,is now "one of the busiest Dunkin' Donuts in the area."
Brinkerhoff itself is a model of a successful business. In 12years, the company has grown to 40 employees-mostly geologists, hydro-geologistsand environmental scientists-and $4.5 million in sales. Since acquiringDiamond Drilling, the company purchased all new trucks. Today, thecompany boasts one of the most modern fleets in the drilling industry.
Consolidated Resource Management is a certified woman-owned businesswith the Small Business Administration and virtually every government agencyin New Jersey, Pennsylvania and New York. Brinkerhoff consults regularlyon New Jersey Department of Transportation projects and has provided subcontractingwork for about 80 percent of New Jersey's engineers.
For more information on NJBIA's Site Visit Program contact Libby Vinsonat ext. 201 or lvinson@njbia.org.
Friday, March 23
Workplace Safety Briefing Breakfast
NJBIA will present a special update on safety issues, such as the newOSHA ergonomics rules, and an overview of useful safety resources for employers. The breakfast, featuring David Ippolito, OSHA Area Director for the Parsippanyoffice, will be held at the Headquarters Plaza Hotel in Morristown from7:30 a.m. to 10:00 a.m. The cost is $45 per person for NJBIA membersand $85 for nonmembers. For information, contact Stacy Wichner at609-393-7707, ext. 213
SPRING 2001, A TRADITION CONTINUES. . .
NJBIA's Legislative Briefing Breakfasts
In what has become an annual spring tradition, NJBIA will travel acrossthe state to host a series of six Legislative Briefing Breakfasts. These breakfasts give you the chance to meet with legislators in your districtand learn about pending legislation, such as paid family leave and higherhealth care costs, affecting your business. Each breakfast will beginat 7:30 a.m. with registration and end promptly at 9:30 a.m. NJBIA'sBriefing Breakfasts provide an excellent opportunity to network with colleaguesand legislators in an informal atmosphere. The cost is $35 per person perbreakfast for NJBIA members and $45 for nonmembers. Register earlyby calling Lisa Figatner at 609-393-7707, ext. 239.
Following are the dates and locations for the six Briefing Breakfasts:
Friday, March 30
Regency Palace, Mt. Laurel | Tuesday, April 17
Hanover Marriott, Whippany |
Tuesday, April 3
Holiday Inn, Monroe Twp. | Tuesday, May 1
Holiday Inn, Tinton Falls |
Wednesday, April 11
Marriott at Glenpointe, Teaneck | Friday, May 4
Newark Airport Marriott |
Tuesday, May 15
NEW JOBS South Jersey Legislative Reception
Sponsored by NEW JOBS, the state's largest political action committeefor the business community, this event is South Jersey's regional fund-raiserfor probusiness candidates for the state Legislature. Remember, itis important to support candidates who advocate economic growth! This reception will be held at The Mansion on Main Street in Voorhees from6:00 p.m. until 8:00 p.m. The price is $175 per person. Toregister, call Sherry Esteves at 609-393-7707, ext. 219. To learnmore about NEW JOBS, call Executive Director Jim Sinclair at ext. 236 orjsinclair@njbia.org.
Friday, June 1
Hot Legal Topics Seminar
Some of the state's foremost attorneys will discuss timely topics suchas sexual harassment, age discrimination, employee privacy, employee handbooks,and family and medical leave at NJBIA's Hot Legal Topics seminar on June1 at the Holiday Inn in Monroe Township. The program begins at 9:00 a.m.and ends at 12:30 p.m. Cost per person is $99 for NJBIA members,$129 for nonmembers. Contact Lisa Figatner at 609-393-7707, ext.239.
Tuesday, June 5
New Good Neighbor Luncheon
NJBIA's 41st Annual New Good Neighbor Awards Luncheon will be held atthe Sheraton at Woodbridge Place in Iselin. Awards will be presentedto New Jersey businesses that have worked to bring about an improved businessclimate in New Jersey by building or renovating a commercial facility. A reception will be held at 11:30 a.m. followed by lunch from noon to 2:00p.m. Cost to attend is $55 per person. To register, contactStacy Wichner at 609-393-7707, ext. 213.
