S-1166 (Smith) -- Authorizes the creation and operation of stormwater utilities. This bill would permit municipalities, counties, and other regional entities to create and operate stormwater utility systems. The bill permits municipalities and counties to finance the creation, operation and maintenance of stormwater utility systems through the imposition of user fees and the issuance of bonds. Theoretically, user fees would be allocated among property owners based on the stormwater runoff contribution of each parcel of land, and would then be used for non-point source pollution mitigation projects.
NJBIA opposes S-1166 because New Jersey companies are already overburdened with costly mandates, taxes, and the overall cost of compliance. It has not been demonstrated that this bill will solve or mitigate the problem of stormwater runoff/non-point source pollution. There is no guarantee that the the revenues from these fees would be used for their intended purposes or would simply be absorbed into municipal budgets. NJBIA believes that we must stop the excessive taxing of industry. This bill contributes to that negative business environment in our State.
DEP Accountability--A-741 (Greenwald) -- This bill requires DEP to submit annual financial report on status of certain fund balances. NJBIA strongly supports any measure aimed at creating more accountability for the department. The DEP oversees a variety of different funds from bond act monies, constitutionally dedicated funds, federal funds, and revolving accounts for a variety of different loan programs. In the aggregate, these funds amount to over $1 billion dollars. Whether or not the funds have dedicated purposes, the DEP should inform the Legislature on both, the status of these accounts, and how these funds are being spent.
DEP Remedy Selection in the Site Cleanup Process --
A-1556, (Greenstein) -- This bill provides DEP the authority over remedy selection for cleanup of contaminated property to be used for residential purposes or as a school. NJBIA urges the Legislature to limit DEP’s authority for remedy selection to those sites that impact vulnerable populations. Any expansions of that authority could have devastating impacts on the State’s Site Remediation Program.
Licensed Site Professional Program for Site Remediation -- A-1555, (Greenstein), establishes a licensing board for professionals who work on "low priority" site cleanups. This bill was introduced on January 8, 2008, and was referred to the Assembly Environment and Solid Waste Committee, but has seen no further action. NJBIA supports A-1555, but would like to the bill to be expanded beyond the stipulated "low priority" contaminated sites.
Water Tax --A-2203 (McKeon) - Employers would pay at least $12 million more for water under this bill. The bill would increase the water tax to 4 cents per 1,000 gallons from 1 cent per 1,000 gallons. Those with water diversion permits would only be taxed on the water they consume, not on water that is returned to its source. The money would be used for drought mitigation projects and water quality projects.
NJBIA opposes this measure because the burden of the tax would fall disproportionately on the business community. Employers, particularly manufacturers, are among the largest consumers of water in the State. A tax increase of just a few cents could dramatically increase the cost of doing business. NJBIA believes the State should find other sources of funding for these projects and not look to tax the business community every time it needs more money. NJBIA was successful in stopping this bill during the budget process this year. However, as is the case with any bill, we must remain vigilant in fighting this proposal.
Plastic Container Recycling Enhancement Act-A-1622 (McKeon) -
Specifically, this bill focuses on rigid plastic containers. The bill requires every rigid plastic container manufactured, sold or offered for sale in this State to be composed of at least 25% recycled content by January 1, 2008. It is clear that the date will be changed, but the requirements will remain the same. While there are exemptions and waivers, the bill is still onerous and costly to New Jersey manufacturers. NJBIA opposes this measure. A legislative brief is available upon request.
A-1492/S-559(Burzichelli/Sweeney) - Eminent Domain (Note: A legislative brief is available upon request.) The bill is identical to the amended version of A-3257 last session. This bill amends and supplements various parts of statutory law to provide greater accountability and transparency in the use of eminent domain by local governments for redevelopment purposes.
Specifically, the bill provides a greater level of transparency during the process by which property is designated "in need of redevelopment," "in need of rehabilitation," or what is commonly referred to as "blighted". The bill also, provides greater compensation and relocation assistance. Finally, the bill provides compensation for a business' goodwill. This will provide businesses with the opportunity to get compensated for the intrinsic value of their business if they meet certain criteria as determined by the Department of Community Affairs.
In 2005, the United States Supreme Court ruled on Kelo et al v. City of New London, CT, and determined that eminent domain could be used to take private property from one owner and give it to another private party on the basis of economic revitalization. In doing so, the court has interpreted "public use" in the much broader sense of "public benefit." The result under this new interpretation is that the project, or "public use," for which eminent domain was authorized does not actually need to be open to the public to provide a public benefit.
Ironically, as significant as Kelo was, the case did not materially change the practice of eminent domain in the State of New Jersey. This is because our statutes already authorize the use of eminent domain to redevelop "blighted" areas. However, the case did bring necessary attention to the issue of eminent domain and the appropriate justification thereof. This examination of the practice of condemnation has placed a renewed focus on the possible abuses of eminent domain and the need for changes to New Jersey law.
The most recent State Supreme Court case was Gallenthin Realty Development, Inc. v. Borough of Paulsboro, where the court had to determine whether the municipality properly interpreted the New Jersey State Constitution and Local Redevelopment and Housing Law. The court reviewed the constitutional origin of "blight" and its meaning, noting that "blight" must be characterized by "a deterioration or stagnation that negatively affects surrounding properties." This means that if a property has deteriorated but does not affect the surrounding areas, it can no longer be designated as blighted. This raised the bar dramatically for municipalities desiring to use eminent domain for redevelopment purposes.
Even with the aforementioned State Supreme Court case, there is still a need to provide NJBIA's core principles which include increased transparency, greater relocation assistance and greater compensation. Municipalities should still be allowed to use eminent domain for redevelopment purposes, but NJBIA believes it can be done in a more fair and balanced way.
