Employers are protesting legislation that would make New Jersey thefirstand only state in the nation to require virtually all New Jerseyemployers, even those with as few as two employees, to provide up to 12weeks of paid family leave.  In thousands of letters, faxes, and e-mailsto legislators, employers are saying that paid family leave would be devastatingto their operations.

S-1923 (Sinagra, Lynch) and A-3049 (Friscia, Vandervalk) would permitmothers and fathers of newborn or newly adopted children to take up to12 weeks of leave. Under the legislation, they would receive unemploymentbenefits for the entire leave period. Unlike existing unpaid leave laws,which exempt employers with fewer than 50 employees, paid leave would applyto all employers with two or more employees. The law also would apply topublic-sector employers such as schools and municipalities.

For Carol Trotte, a working mother and owner of F & S Awning andBlind Co., Inc. of Edison, the plan is simply unworkable.  "As a workingmother, I could not be more sympathetic towards all new parents. (But)how could we afford to hire and train new employees to do the work forthis amount of time and then let them go when the new parent returned?"she writes. 

For businesses like M2 Race Systems of Farmingdale, it would be impossibleto replace any one of its seven employees.  "As it is, we cannot findqualified people to hire," M2 Vice President Beth Mielbrecht writes. Or as Ellen Barrett, president of Rigan, Inc. of Fairfield, writes of hersix-employee warehouse,  "Currently, three of the employees in thewarehouse have pregnant wives..  We have spent years training thesepeople..  The passage of these bills would cripple, if not destroyour business.  These people cannot be replaced with temporary workersbecause of the specialization of the industry we serve."

Large employers are also worried. Says Al Ruggiero, senior vice presidentof South Jersey Gas Co., the bill "...will increase the cost of doing business,be disruptive to the workplace, cripple most small businesses and placeNew Jersey employers at a competitive disadvantage..."

Other employers say it is wrong to pay family leave benefits out ofthe Unemployment Insurance Fund.  "Loading the cost of paid familyleave onto payroll taxes is unconscionable," says Edward J. Batta, CEOof PLASTINETICS, Inc. in Montville.  "The Unemployment Insurance Fundwas created to assist workers through unfortunate periods." 

Many businesses expressed concern about being able to remain in NewJersey.  Says Paul Van Anda, president of KMSCO, Inc. in Clark: "Itis legislation like this that makes us hesitate when we consider expandingour operation in New Jersey.  We are currently at a point in our company'shistory where some major decisions will be made."

Private sector employers are not the only ones concerned about the impactof paid family leave. As the NJ League of Municipalities' Executive DirectorWilliam G. Dressel, Jr., said recently, "Added to our chronic propertytax problem, this law would drive economic opportunity out of New Jerseyand into New York, Pennsylvania, and Delaware.  Further, it couldquickly deplete the Unemployment Insurance Trust Fund." 

Letters from employers make the most compelling case against paid familyleave and have a tremendous impact on legislators. The fight against thisbill promises to be a long one, and your legislators need to hear fromyou!

For help in contacting your legislators, visit our MembershipAlert on this Web site or call Sara Bluhm at 609-393-7707, ext. 204.
 

NJDEP Would Pay Defendants' Legal Costs UnderAssembly Bill

The New Jersey Department of Environmental Protection (DEP) would berequired to pay the legal costs of defendants who prevail in DEP enforcementactions under NJBIA-backed legislation released by the Assembly AppropriationsCommittee on February 5.  A-794 (Crecco, Garrett) would cover reasonabletrial and appellate attorney fees, witness and filing fees, transcriptexpenses, and the costs of document production, depositions and other discovery.

Some employers spend hundreds of hours and tens of thousands of dollarssuccessfully defending themselves against baseless DEP allegations. While these businesses ultimately prevail, they still are forced to paycostly attorney fees and other legal costs to defend themselves. Once it is determined that a particular business did not violate statelaws or regulations, it is only fair to reimburse that employer for hisor her legal costs.

Additionally, the measure would make DEP more accountable in the enforcementactions it undertakes. DEP bureaucrats are not required to assess the strengthsof their cases or the likelihood their charges will stand up in court. Making DEP financially liable for the costs of litigation would make DEPpersonnel more discriminating in the charges they bring against the privatesector.  This should result in more successful DEP actions againsttrue violators.  For more information, contact Sara Bluhm at ext.204 or Sblihm@njbia.org.
 

Legislation that would severely limit the ability of public schoolsto save money by contracting with businesses for noneducational serviceswas released by the Senate Education Committee on February 26. S-1126 (Ciesla)would largely deprive local school districts of their long-standing abilityto utilize the competitive bidding process.

Specifically, the legislation would require public school districtsto seek union approval  before soliciting competitive bids from private-sectorcompanies for noneducation contracts involving such things as busing, cafeteriaservices and janitorial work. The ability of local school districts tomake these subcontracting decisions independently has saved schools anestimated $28 million annually statewide.

"School districts need the ability to shop and compare costs and qualityof services for such items as transportation, food service and janitorial,"NJBIA Vice President Art Maurice said. 

By restricting the ability of school boards to economize on noneducationalservices, this misguided legislation would force schools to spend lesson educational programs, such as curriculum, technology and additionalteaching staff. For more information, contact Art Maurice at ext. 247 oramaurice@njbia.org.
 

Employees injured on the job while drunk or on drugs would not be eligiblefor workers' compensation under legislation released by the Senate CommerceCommittee on February 8.  S-51 (Bucco) would establish a "rebuttablepresumption" that intoxication-a blood alcohol concentration above thelegal limit for driving or use of controlled dangerous substances-is theprimary cause of an injury or a death on the job and would make intoxicatedemployees ineligible for benefits.

Workers' compensation should be available to responsible employees whoare injured on the job.  Employees who endanger themselves and othersby coming to work intoxicated should not be entitled to benefits. For more information, contact Jeff Stoller at ext. 209 or jstoller@njbia.org.
 

Senate Committee Backs Export Network Centers

Legislation aimed at helping small and medium-sized businesses takeadvantage of New Jersey's broad international export opportunities wasreleased by the Senate Economic Growth, Agriculture and Tourism Committeeon February 8.  The bill, A-1966 (Geist, LeFevre), would create threeexport network centers to assist small and medium-sized businesses in developingexport techniques and marketing strategies. For more information, contactJeff Stoller at jeffstoller@njbia.orgor at ext. 209.
 

Congress Votes To Repeal Ergonomics Rules

In a major victory for employers, Congress has voted to repeal sweepingergonomics regulations adopted by the US Occupational Safety & HealthAdministration (OSHA) in the final weeks of the Clinton Administration. The Senate voted 56-44 on March 6 to overturn the 600-plus pages of regulations,followed by the House in a 223-206 vote the next day. President Bush signedthe repeal into law two on March 20.

Repeal of the rules would spare employers the difficulty and expenseof complying with vague, ill-defined and onerous workplace regulationsscheduled to take effect in October. Under the rules, companies in mostindustries with 11 or more employees would have had to establish an entireergonomics training program if a job causing even one repetitive-motioninjury could not be restructured through a "quick fix." 

Companies would have had to undertake a hazard analysis of jobs thattrigger worker complaints. Employers also would have had to provide-attheir cost-access to a healthcare professional for employees with complaints,and if necessary arrange for a second or even third opinion from otherprofessionals. The regulations would have required businesses to give employeeswith ergonomic injuries light work duties at full pay or to let them stayat home for up to 90 days at 90 percent of their regular salary.

Businesses across the country objected to the fact that this onerousand costly ergonomics rule was rushed through in the final weeks of theClinton Administration without adequate public input and scrutiny.

In voting to repeal the rules, Congress utilized for the first timea 1996 law known as the Congressional Review Act, which allows both theHouse and the Senate to overturn administrative rules promulgated by theexecutive branch. 

Only two members of the New Jersey delegation, US Representatives RodneyFrelinghuysen (R-11) and Marge Roukema (R-5), voted for the repeal, andthey deserve our thanks. New Jersey Senators Robert Torricelli (D) andJon Corzine (D) and the remainder of the New Jersey delegation voted no. For more information, please contact Jeff Stoller at jeffstoller@njbia.orgor at ext. 209.
 

Senate Approves Bankruptcy Reform, Must Be Reconciledwith House Bill

In an 83-15 vote, the US Senate on March 15 approved the most sweepingchanges to the nation's bankruptcy laws in 20 years. A similar bill passedthe House on March 1 in a 306-108 vote. Differences in the two bills mustbe reconciled before the measure is sent to the president.

The bill would require wealthier debtors to honor at least part of theirobligation, limit repeat bankruptcy filings, and it would impose a $100,000cap on homestead exemptions, among other reforms.  The main provisionprovides a new standard for court approved reorganization.  The billwould require debtors who have enough income to pay 25 percent of theirdebts in five years to reorganize under Chapter 13 rather than have theirdebts fully eliminated under Chapter 7. Under current law, the choice isleft to the individual filer. 

By requiring higher income filers who can repay a portion of their debtsto do so, the bill should be welcome news to businesses owed money by individualswho have filed for bankruptcy but can afford to pay. 

Although a similar measure enjoyed strong bipartisan support last yearand was easily approved by Congress, President Clinton vetoed the bill,claiming it was too sweeping and harsh.

President Bush is expected to sign the bill once it reaches his desk.
 

Business Groups Back Tax Cuts

With the endorsement of the nation's business leaders, the US Houseof Representatives in a 230-198 vote passed the first and largest partof President Bush's tax cut on March 8. 

A coalition of 175 business representatives-including the National Associationof Manufacturers, the National Federation of Independent Businesses andthe US Chamber of Commerce-pledged their support for the plan, which wouldreduce marginal tax rates by $958 billion over the next ten years.

Other pieces of Bush's plan-elimination of the estate tax, an increasein the child care tax credit, and extension of the R & D tax credit-willbe acted on later.  All components of the tax cut are expected tocost the US Treasury $1.6 trillion over ten years.

The President's initiative would gradually reduce tax rates and consolidatetax brackets.  The current rates of 15, 28, 31, 36, and 39.6 percentwould be reduced to 10, 15, 25, and 33 percent by 2006.  The tax cutswould be retroactive to January 1, 2001, with the lowest rate droppingfrom 15 to 12 percent this year.

Record budget surpluses have made tax cuts possible.  Proponentsof Bush's plan argue that the tax cuts are needed to stimulate the economyin the face of an economic slowdown.
 

Contractors and consultants who want to participate in the state's $12billion school construction program should make sure they are prequalifiedby the NJ Economic Development Authority (EDA), which has begun solicitingvendors to work in the largest capital construction program in New Jerseyhistory. 

This was one of many valuable tips government professionals responsiblefor implementing the program offered at NJBIA's February 21 seminar, Howto Participate in New Jersey's Multi-Billion $$ School Construction Program.Taking it in at the Forsgate Country Club in Monroe Township were 250 architects,contractors and others interested in participating in one of the largestpublic works programs in state history. The EDA, the agency managing theprogram, has made prequalification application forms available on its Website at www.njeda.com.

NJBIA was a prime mover of legislation creating the construction program,and now we want to help our member companies participate as the programgets underway.  In addition to featuring the government officialswho will help administer the program, the seminar covered an overview ofthe program, the role of the EDA, the role of school districts, and variousprocurement issues. 

"The panelists and the speakers provided the practical, nuts-and-boltsinformation that every consultant should know," said Joanne Jaeger, PE,CIH, vice president of LFR Levine Fricke in Raritan.  "For those whointend to participate in the largest capital construction program in NewJersey history, this seminar was essential."

The EDA has issued requests for proposals from architects and engineersfor an initial 32 health and safety projects in 23 school districts. These projects will involve 102 individual school buildings at an estimatedcost of $75 million. 

The EDA initially will award contracts based on estimated project designor architectural fees.  This is the first stage of the constructionrenovation process.

Category 1 contracts (design fees of less than $25,000) will be awardedwithout being publicly advertised. 

Category 2 contracts (design fees of up to $300,000) will be advertisedon the EDA Web site.  A short list of up to six bidders will be selectedusing a computer-generated, random-selection process.  The bidderswill then be asked to submit proposals.  A selection committee comprisedof two school district representatives and three EDA officials will thenreview the proposals.  Bids will be awarded based on qualifications,price and other factors.

Category 3 contracts (design costs greater than $300,000) will be advertisedin the Star Ledger, Courier Post, and Press of Atlantic Citynewspapers, as well as on the EDA Web site, and qualified firms will benotified of the project via e-mail or the US Postal Service.  Firmswill be put on a short list by the selection committee and asked to submita detailed technical proposal.  The selection committee will rankthe proposals, and the top three firms will be invited to submit fee proposals. Contracts will be awarded based on qualifications and costs.

Contracts with fees of more than $500,000 require the approval of theEDA's board of directors.

A repeat seminar will be held on April 20 at the Sheraton at WoodbridgePlace in Iselin from 8:00 a.m. to 1:00 p.m.  The cost is $95 per personfor NJBIA members and $120 for nonmembers.  For more information,contact Sherry Esteves at 609-393-7707, ext. 219.
 

Few things scare employers more than applying for a permit from theNew Jersey Department of Environmental Protection (DEP).  The tangleof regulations, a complex bureaucracy, and threat of huge fines for mistakescan make filing a tax return seem like a pleasant diversion. 

To help take some of the fear out of New Jersey's regulatory bureaucracy,the New Jersey Business & Industry Association held a briefing breakfaston February 27 featuring experts from the DEP and the private sector. The panelists at the "How to Comply with State Environmental Regulations"breakfast had two important pieces of advice for the uninitiated:

• If at all possible, use pollution prevention by finding processes thatdo not require a permit; 
• If you're not sure which permit you need, contact the Small Business AssistanceProgram at 609-292-3600 or 877-753-1151 or visit their Web site at www.state.nj.us/dep/opppc/sbap.htm. 

"Obtaining DEP permits is like anything else-it's intimidating for thosewho have never done it before," NJBIA First Vice President Jim Sinclairsaid.  "Once people become familiar with the rules and where to gofor information, getting permits from the DEP is just another part of doingbusiness."

One of the most important things businesses should learn is which activitiesrequire an environmental permit. A business that maintains a fleet of vehiclesmight want to contract with a local car wash instead of washing its vehicleson site.  Washing a fleet would require a storm water runoff permitfrom the DEP.  Runoff from car washes is covered under their generalenvironmental permits.

Businesses that cannot avoid environmental permitting, should firstdetermine if they qualify for the growing list of general permits. General permits provide a registration-style application process and afixed set of predefined permit conditions.  A general permit alsogives the DEP the opportunity to inform a business of its exact regulatoryobligations and helps avoid fines and other problems.

In addition to the Small Business Assistance Program, the state alsooffers the Small Business Ombudsman's Office (SBO) in the New Jersey Commerceand Economic Growth Commission.  The office disseminates informationon upcoming regulations and refers small businesses to the appropriatespecialists.  Ombudsman Chuck McCarty can be reached at 609-984-6922. 
 

Think you have to go to New York or Philadelphiato entertain your clients?  Think again. 

Building on the success of New Jersey's minor league baseball stadiums,the Mercer County Improvement Authority (MCIA) has added the SovereignBank Arena as a first-rate facility boasting minor league hockey and basketballand a host of big-name acts. 
Arena football will be coming to Trenton in April.

The arena offers corporate clients a pick of luxury boxes that wouldrival those of any facility on the East Coast.  It is easily reachedfrom major New Jersey thoroughfares and is affordably priced.

At a recent Titans hockey game, NJBIA and the MCIA hosted about 25 NJBIAmembers and prospective members in a Sovereign luxury box.  Guestshelped themselves to a full course "Taste of Italy" buffet.  The refrigeratorwas stocked with beer, wine and soda.   If that's not enough,waiters and waitresses were available for guests to order a wide varietyof dinners and snacks as well as cocktails from the bar. 

During the game, the Titan's owner Jeff Berman paid a visit, explainingthe ins and outs of running a first-place hockey team.  The MCIA brasswas on hand as well to make sure everything went just right.

"We understand that when someone comes to the arena, it's for more thanjust the game.  It's a night out," Deputy Director Rich Buck said. "We do everything we can to make it a memorable one.  A good timewas certainly had by all."

For more information on the Sovereign Bank Arena, contact Jennifer Pavlick,director of corporate relations, at 609-656-3216.
 

Nominate Your Company for an Award for ExcellenceLetter from NJBIA President Joe Gonzalez

Every year at this time, we invite you, our members, to join a friendlycompetition-NJBIA's Awards for Excellence.  All NJBIA member companiesare eligible to nominate themselves if they have done outstanding workin at least one of the following areas-environmental quality, human resourcesmanagement or job creation. The fourth award is for public service andgoes to an individual.

I encourage you to nominate your organization-or another NJBIA membercompany-for an Award for Excellence by submitting a nomination form. Nominationsmay also be made by any business organization (such as a Chamber of Commerce)or any federal, state, county or local government official (such as a mayoror council member).

Enclosed with this issue of the Business Voice you will find a flyerexplaining more about our awards program and the nomination process. Readit carefully. It describes the award categories and qualification rules. 

Nominations can be made in one or all of the four awards categories.However, you must fill out a separate nomination application for each award.To receive a nomination application or to learn more about our program,you may call NJBIA's Lisa Figatner at 609-393-7707, ext. 239.

The deadline for nominations is Monday, May 15. An independent panelof judges comprised of members of the Service Corps of Retired Executiveswill select the winners in June, and the Awards Dinner will be held onOctober 16 at the Princeton Marriott. I look forward to seeing your nomination!
 

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 and proposed legislation affecting your business. Each breakfast will begin at 7:30 a.m. with registration and end promptlyat 9:30 a.m. so you can get back to work.  NJBIA's Briefing Breakfastsprovide excellent opportunities to network with colleagues and legislators. The cost is $35 per person per breakfast for NJBIA members and $45 fornonmembers.  Register early by calling Lisa Figatner at 609-393-7707,ext. 239.  Following are the dates and locations for the remainingfive Briefing Breakfasts:

• Tuesday, April 3

Holiday Inn, Monroe Twp.

• Wednesday, April 11

Marriott at Glenpointe, Teaneck

• Tuesday, April 17

Hanover Marriott, Whippany

• Tuesday, May 1

Holiday Inn, Tinton Falls

• Friday, May 4

Newark Airport Marriott

WEDNESDAY, APRIL 18
Environmental Business in NJ - The Future?

NJBIA and the Hazardous Waste Committee of the New Jersey Water EnvironmentAssociation (NJWEA) will hold a seminar to explore areas of concern toowners, operators and practitioners in New Jersey's environmental businesses.The seminar will be held at the Forsgate Country Club in Monroe Twp. from8:30 a.m. until 11:00 a.m.  The cost is $75 per person for NJBIA orNJWEA members, $85 for nonmembers.  For more information, contactNJWEA's Robin Mulhall at 856-582-2370.
 

New Jersey is about to kick off the nation's largest school constructionprogram.  Every school district across this state will be eligiblefor generous grants and low interest loans to finance an estimated $12billion in new and renovated facilities.  Come learn about the newprogram from those who will be implementing it.  Speakers from theNJ Economic Development Authority, the NJ Association of School BusinessOfficials, and the NJ Department of Education will provide an overviewand explain how you can participate in this historic construction program. The seminar will be held at the Sheraton at Woodbridge Place in Iselinfrom 8:00 a.m. to 1:00 p.m.  The cost is $95 per person for NJBIAmembers and $120 for nonmembers.  For more information, contact SherryEsteves at 609-393-7707, ext. 219.

TUESDAY, MAY 15
NEW JOBS South Jersey Legislative Reception

Sponsored by the Chamber of Commerce Southern New Jersey and NEW JOBS,the state's largest political action committee for the business community,this event is South Jersey's regional fund-raiser for probusiness candidatesfor the state Legislature.  Remember, it is important to support candidateswho advocate economic growth!  This reception will be held at TheMansion on Main Street in Voorhees from 6:00 p.m. until 8:00 p.m. The cost is $175 per person.  To register, call Sherry Esteves at609-393-7707, ext. 219.  For details on NEW JOBS, contact ExecutiveDirector Jim Sinclair at jsinclair@njbia.orgor at ext. 236.
 

TUESDAY, MAY 15
EDA Fourth Annual Capital Opportunities Conference

The New Jersey Economic Development Authority will hold its 4th annualCapital Opportunities Conference at the Sheraton at Woodbridge Place inIselin from 8:00 a.m. to 12:00 p.m.  Learn about EDA's low-cost flexiblefinancing program, the resources to recruit and train a qualified workforce,and the outlook for the economy.  Meet private lenders, business specialists,financial officers and attorneys!  Cost is $25 per person.  Visitwww.njeda.com or call 609-341-2065 fora conference brochure.

FRIDAY, JUNE 1
Hot Legal Topics Seminar 

Some of the state's foremost attorneys will address a host of currentlegal issues at NJBIA's Hot Legal Topics seminar on June 1 at the HolidayInn in Monroe Township.  Subjects include hiring issues, sexual harassment,age discrimination, employee privacy, and family and medical leave. The program begins at 9:00 a.m. and ends at 12:30 p.m.  The cost perperson is $99 for NJBIA members and $129 for nonmembers.  To register,call Lisa Figatner at 609-393-7707, ext. 239.