Business Leaders Support Corzine’s Budget Cuts Read
Business Experts Offer Recession Survival Tips Read
Manufacturing Council Members Benefit from Environmental Compliance Tips at Meeting Read
Energy Decision Makers Say NJ Must Push Renewable Projects to Vastly Cut Use Read
Getting the Full Benefit: Download NJBIA’s Free Compliance Guides Read
Ask the Experts: Underground Storage Tank Registration Read

Earlier this year, the US government notified New Jersey that the balance in its Unemployment Insurance (UI) Trust Fund was insufficient to meet its unemployment claims and that employers’ payroll taxes would rise automatically on July 1 to make up the shortfall.

Fortunately, at the Governor’s urging, a bill is quickly making its way through the Legislature that would prevent an automatic $350 million (15 percent overall) payroll-tax increase on employers on July 1.  The bill, S-1698 (Buono), cleared the State Senate on May 22.

Senator Barbara Buono’s bill would add $260 million to the Unemployment Insurance (UI) fund so it can continue to pay claims without the need for a payroll tax hike.

The money would temporarily replenish the UI fund balance, which has fallen in recent years as the State has diverted payroll taxes to help balance the State budget —revenues that are supposed to be dedicated to the payment of unemployment benefits.

Jon Corzine is the first Governor in recent memory not to raid the UI fund.  In the 14 years before Corzine took office, governors of both parties diverted $4.7 billion in UI tax revenues.  The $260 million earmarked in Senator Buono’s bill would replace some of that money at least for a year.

This is the right thing to do.  Clearly, imposing a massive tax hike on employers in the middle of a serious economic downturn is not good public policy.  When New Jersey is already losing jobs (10,500 private-sector jobs were lost in the first quarter), NJBIA believes a UI fund that cannot meet its obligations to the unemployed is unacceptable.

The balance in the UI fund collapsed from a high of $3.1 billion a few years ago to less than $1 billion on March 31.  With the fund currently paying out $2.1 billion per year in jobless benefits, the balance is too low for the fund to remain solvent without a cash infusion or tax hike.

NJBIA strongly supports S-1698.  This legislation will, at least for the time being, avoid the necessity of an undeserved and unfair payroll tax hike on employers.

For more information, contact John Rogers at jrogers@njbia.org.

The Senate Environment Committee recently delayed a scheduled vote on legislation that would ask voters to constitutionally dedicate an as yet undetermined increase in the water tax to preserve open space.  Instead, the committee simply took testimony on the bill, SCR- 88 (Smith), which is being considered in case the Legislature approves a tax on water consumption and diversion later this session.

Senator Bob Smith, chairman of the Senate Environment Committee, has introduced a separate bill, S-1454, to increase the water tax from 1 cent per 1,000 gallons to 40 cents per 1,000 gallons, a $150 million tax increase.

NJBIA opposes the measure.  NJBIA believes that placing another tax on business will only worsen a very weak economy.  It would have a significant impact on water-intensive industries such as manufacturers and utilities.  And the tax would come at a time when the cost of water is already rapidly increasing for many companies.

New Jersey’s employers cannot afford to get hit with another increase in the cost of doing business.  NJBIA believes that placing another tax burden on the shoulders of business is counter productive and unnecessary.

For information, contact David Brogan at dbrogan@njbia.org.

Consumers would have to pay 10- to 20-cent deposits on beverage containers, and stores would be forced to set up elaborate redemption operations under a bottle-deposit bill being considered by the Assembly Environment Committee.

A-121 (Vainieri-Huttle, Greenstein) would require a 10-cent deposit on all plastic and glass bottles and aluminum cans holding less than 24 ounces and a 20-cent deposit on containers holding between 24 ounces and 3 liters.  The measure would apply to juice, sports drinks, bottled waters, soda, wine and beer containers.  The committee held a hearing on the bill last month.

Under A-121, the NJ Department of Environmental Protection (DEP) would license and regulate privately owned redemption centers, where consumers and retailers could bring refundable empty containers.  Retailers also would be required to accept up to 24 empty beverage containers per customer per transaction.  The State would keep 75 percent of any unclaimed deposit revenues, while the other 25 percent would be redistributed proportionately to retailers and redemption centers.

NJBIA opposes the bill because it would impose tremendous costs on retailers and greatly inconvenience consumers but provide little environmental benefit.  This is simply another unnecessary tax.  Stores would have to purchase costly equipment for cleaning the bottles and absorb the cost of storing and transporting them.  Furthermore, the Legislature just imposed a new trash tax to increase funding for county recycling programs, making a bottle bill redundant.

Contact David Brogan at dbrogan@njbia.org.

NJBIA President Philip Kirschner joined other State business leaders on May 14 to call for a new State budget that spends less than this year’s budget.  As the Legislature gets close to adopting a budget, the business leaders held a State House press conference to remind legislators of the importance of getting New Jersey’s fiscal affairs in order.

Specifically, they said the Legislature should follow Governor Corzine’s lead and pass a Fiscal 2009 budget which spends less than the current budget.

“For too long now, State spending has been out of control,” Kirschner said.  “Tax increases and one-shot funding gimmicks have put New Jersey in a position where both businesses and the public have lost confidence in the ability of the State to responsibly handle their money.  It is time to change the way we operate.  We need to cap spending and start living within our means.”

Kirschner was joined by Bob Franks, president of the HealthCare Institute of New Jersey, John Galandak, president of the Commerce & Industry Association of New Jersey, and Joan Verplanck, president of the New Jersey Chamber of Commerce.

The economic downturn will not be as bad as many fear, according to Barron’s editor and columnist Michael Santoli.  Speaking at the NJBIA-Fidelity Investments Economic Forum on May 21, Santoli said this is because businesses, outside of the financial sector which is still reeling from the mortgage crisis, are in much better shape than they were at the onset of the 2001 recession.

A big reason many companies are in better shape heading into this downturn is that they behaved conservatively during the 2003-2007 expansion,  keeping debt and employment low, Santoli said.

“That means there is a little less froth to be taken out during the downturn,” said the author of Barron’s popular “Streetwise” column.  “Businesses have not been giddy about the economy for a while, so they were sort of preemptively cutting back.”

Other Forum speakers offered tips on how to find savings in company HR programs to help weather the downturn.  Addressing this topic were Anthony Davis of Fidelity Investments, Allison Hofmann of QualCare, Inc., and Phil Dzialo of ADP TotalSource.

The panelists explained how money can be saved by restructuring health benefits, changing retirement programs and complying with state and federal workplace rules.

Fidelity Investments’ Davis, who advises businesses on how to structure their retirement programs, said companies can save money by moving from a traditional pension plan to a 401-K-style, defined-contribution plan.  However, he cautioned that defined-contribution plans could have lower participation rates.

“Like defined-benefits plans, the communication of any defined-contribution plan design change is critical so that employees clearly understand the additional financial responsibility they are being asked to assume,” Davis said.

Dzialo of ADP TotalSource said that outsourcing various HR functions is becoming more of a viable option for small and medium-sized employers.  Businesses can take advantage of the expertise of a company that does nothing but HR management and prevent serious legal problems because an employment issue was not handled properly.

“A fact of business life is that even well-run businesses can be liable in an employment-related lawsuit,” Dzialo said.  “What you do at the outset makes a difference. Those are the costs that sneak up on companies.”

A new trend in health insurance, Hofmann of QualCare said, is value-based benefits, where strict usage rules and high co-payments for chronic diseases such as diabetes or heart disease are removed to encourage employees to fully treat their conditions.  Studies show that one of the biggest causes of health insurance inflation is treatment of chronic diseases.  But if chronic illnesses are managed properly when they are first diagnosed, the cost of treatment can come down over time.

“Look at your own plan,” Hofmann said.  “If you have lower co-pays for chronic-disease medications, that’s a form of value-based benefits.”

NJBIA Thanks Its Economic Forum Sponsors

Title Sponsor
Fidelity Investments

Premier Sponsors
NJM Insurance Group/NJM Bank FSB                                             
The Port Authority of NY&NJ
Grand Sponsors
BP
Jersey Central Power & Light Co., A FirstEnergy Co.                     

Event Sponsors
ADP TotalSource
Berkeley College
Constellation NewEnergy
Lowenstein Sandler PC
NJ Economic Development Authority
QualCare, Inc.

On May 14, 2008, the NJBIA Manufacturing Council held a meeting to discuss environmental compliance in New Jersey.  The Manufacturing Council is open to all the manufacturing members of NJBIA.  The Council meets quarterly to discuss issues that are key to the operations of manufacturers in New Jersey.

Two panels of experts were there to discuss the issues from both the regulator’s perspective and the regulated community’s perspective.  One panel had representatives from the NJ Department of Environmental Protection (DEP), including Wolfgang Skacel, assistant commissioner, compliance and enforcement;  Edward Post, manager, water compliance and enforcement; and Michael Hastry, chief, Bureau of Hazardous Waste Compliance and Enforcement.  On the second panel, NJBIA had representatives from the regulated community: Edward Hogan, Esq. with Norris, McLaughlin and Marcus P.A.;   Michael Hahn with Environmental Resources Management, Inc.; and John Spinello, Esq. with Kirkpatrick & Lockhart, Preston, Gates, Ellis LLC.

The first panel covered issues such as helpful information on the DEP Web site, access to the various checklists that the DEP inspectors use to inspect facilities,  and environmental stewardship or allowing companies to get recognition for going beyond compliance.  The second panel covered an overview of the regulatory process, understanding the permitting needs of your company, strategies to minimize risk, and legal rights of business owners.

If you would like to receive information about the Manufacturing Council and its activities, or if you would like to join the Council, please contact Sandy Lavery at sandylavery@njbia.org.

The Assembly Environment Committee has released a bill to give official recognition to New Jersey’s most environmentally responsible businesses.  A-795 (Gusciora, Fisher) would direct the State’s environmental commissioner to create a list of those businesses.  The DEP would award certificates of recognition to companies that have shown exemplary attention to, and concern for, the environment.

Contact David Brogan at dbrogan@njbia.org.

New Jersey must promote energy efficiency and renewable-energy sources if it wants to succeed in controlling energy costs under the proposed update to the State Energy Master Plan, top governmental officials told NJBIA members at the Association’s Meet the Decision Makers event on May 16.

Assemblyman Upendra Chivukula, chairman of the Utilities and Telecommunications Committee, Assemblywoman Marcia Karrow, a member of the Budget Committee, and Joseph Fiordaliso, a commissioner of the NJ Board of Public Utilities (BPU), spoke to about 100 NJBIA members and took their questions.

Chivukula said the Energy Master Plan will guide the State for the next few years, but a big challenge will be presented by mandating a reduction in greenhouse gases in the face of rising energy demand.  “These are lofty goals,” Chivukula said of the State’s goal of reducing greenhouse gases 80 percent by 2050.  “How do you do that?”  Chivukula wants to encourage companies to generate more of their own power on site and has introduced legislation to allocate $60 million for such projects.

Karrow said New Jersey should allocate more money to businesses for renewable energy projects.  Most of the money collected from the State’s Societal Benefits Charge (SBC) on energy bills is directed to homeowners instead of commercial and industrial energy users.  Yet, businesses, which pay most of the SBC tax, have demonstrated they can achieve far greater energy efficiencies.  “Quite frankly, it’s blatantly unfair,” Karrow said.  “It’s inequitable distribution of what is effectively your tax dollars.”

Fiordaliso said the BPU, in meeting New Jersey’s greenhouse-gas-reduction goals, would pursue policies that have economic benefits by making New Jersey more energy efficient and generating more electricity through renewable energy sources.

NJBIA Thanks Its Decision Makers Energy Sponsors

Premier Sponsors
NJM Insurance Group/NJM Bank FSB                                             
The Port Authority of NY&NJ

Grand Sponsors
BP
Jersey Central Power & Light Co., A FirstEnergy Co.                     
United Water

Event Sponsors
Advanced Solar Products, Inc.
Covanta Energy
New Jersey Natural Gas
Rothfelder Stern, LLC
South Jersey Industries

Measures that would provide financial incentives to businesses that undertake energy conservation and renewable-energy projects have been released by separate legislative committees.  NJBIA supports both measures.

The Senate Community and Urban Affairs Committee has released S-710 (Smith, Sweeney), which would exempt renewable energy improvements from local property-tax assessments.  Exempted would be solar technologies, photovoltaic technologies, wind energy, fuel cells, geothermal technologies, wave or tidal action, resource recovery systems, and other technologies.

The Assembly Telecommunications and Utilities Committee has released A-2705 (Chivukula), which would increase grants to businesses for on-site power generation and energy efficiency projects.  The bill would allocate $60 million for on-site generation from the existing Retail Margin Fund, with the remaining balance, approximately $30 million, allocated for energy audits and efficiency projects.  For more information, contact Sara Bluhm at sbluhm@njbia.org.

Don’t Get Tangled in NJ’s Regulatory Maze
Download NJBIA’s Free Compliance Guides

Get valuable compliance tips, learn how to buy health insurance, and find out how to tap employment-growth incentives with NJBIA’s unique and valuable Government Affairs publications.   Get timely updates on the latest rules issued by State agencies.  Take advantage of State programs designed to help your business.  Available free of charge to NJBIA members are:

Public Policy Principles & Priorities
NJBIA’s blueprint for building a strong private-sector economy in New Jersey.

Agenda for Economic Growth
Details the specific legislative and regulatory initiatives that NJBIA is advocating to help strengthen the State’s private-sector economy, from taxation to health insurance reform.

Legislative Priorities
Contains the top pieces of legislation that NJBIA is tracking in the current session of the State Legislature. 

Fast Facts
Provide detailed information and timely updates on rules issued by State agencies and on State programs intended to help businesses.

Environmental Compliance Digest
A Handbook for NJ Employers:  A comprehensive guide to the essentials of environmental compliance in New Jersey. 

Legislative Briefs
Describes in detail many of the most important bills NJBIA is  following in the current session of the Legislature.

NJ Laws Enacted In 2006-2007 Having an Impact on Business
A comprehensive list of State laws enacted in the 2006-2007 session of the State Legislature. 

Visit www.njbia.org/GApubs.asp to download or order your copies online.

The Senate Health Committee recently took the first step towards health insurance reform by releasing legislation expanding coverage under FamilyCare, the State’s government-subsidized health insurance program for lower income children, and requiring parents to provide health coverage for their children.

The measure, S-1557 (Vitale), would also enact numerous market reforms that have been championed by NJBIA.  The bill now heads to the full Senate for a vote.

The measure also would change insurance-plan pricing in the individual market to make coverage more affordable for younger purchasers.  It would also reduce red tape in the small-employer market to cut down on administrative costs.  And it would require greater transparency in pricing by requiring that the cost of riders and brokers’ commissions be listed separately.  NJBIA supports these reforms.

For more information, contact Christine Stearns at cstearns@njbia.org.

Q.      I have an underground storage tank.  Does it need to be registered?

A. The State has issued clear guidelines to determine if an underground storage tank is regulated or unregulated.  If you have an unregulated underground storage tank, there is no need to register it with the NJ Department of Environmental Protection (DEP).  If you have a regulated tank, however, it must be registered.

An underground storage tank does not need to be registered, and is considered exempt from State registration requirements, if it has a capacity of 2,000 gallons or less AND it only contains heating oil used for on-site consumption.

However, if the tank contains any other hazardous substance (other than heating oil used for on-site consumption), it is considered regulated regardless of its size.  Also, if the tank has a capacity of more than 2,000 gallons, even if it only contains heating oil, it is considered to be a regulated tank and must be registered with the State.

Q.  I have a leaking underground storage tank.  What should I do?

A. Whether you have a regulated or unregulated tank, if it starts to leak or discharge (a “release” is the proper technical term), you are legally required to notify the appropriate local health agency and the DEP within 15 minutes of its discovery.

Furthermore, this reporting requirement extends to third parties, including your employees, your environmental consultant, your engineer, etc.  To contact the DEP, call 1-877-927-6337 or (1-877-WARNDEP).  You will be asked to provide information about the location, size and contents of the tank.

Next, contact your insurance company to determine if your policy covers the costs associated with an investigation of your property for soil or groundwater contamination and, ultimately, removal of the tank.  You should also contact your attorney, as there are legal ramifications to this process, and you will want to take every necessary step to protect your legal rights.

Cleanup Payment Options
As for paying the costs of investigation, cleanup and removal, there are several options.  If your insurance policy only covers a portion of these costs, or does not cover any of the costs, you can seek private funding from a bank or pay for it out of pocket.  However, the State does have several funding sources for eligible applicants.  These come in the form of grants and/or low interest loans from the Underground Storage Tank Fund and the Hazardous Discharge Site Remediation Fund.  Please note that in some circumstances, you are required to attempt to obtain private financing prior to applying for State assistance.  Also, some State loans allow the DEP to place a lien on your property as collateral for the loan.  Web site information can be found at the bottom of this article.

Hiring a Contractor
You will have to hire a contractor to perform the necessary work on your tank.  When selecting a contractor, make certain that they are certified by the State to do this kind of work.  The DEP’s Bureau of Revenue maintains a list of certified firms and individuals.  (Call 609-777-1013 for the list.)  You can also ask the contractor to show you his Underground Storage Tank Certification Card and Placard.

In short, protect yourself and your business.  Contact your insurance company now and understand the scope of your policy before any problems occur.  Determine if your tank is regulated or unregulated.  If it is regulated, you must register it with the State.  If you have a confirmed release of the contents of any tank, you must contact the DEP immediately.  Then take the necessary steps to assess and remediate your site.  By doing so, you will not only do what the State expects of you, but, more importantly, you will protect your legal rights as a business owner.

Visit the DEP Web site at   www.state.nj.us/dep/srp/finance or for more information, contact me at dbrogan@njbia.org.

Tuesday, July 15
Golf & Tennis Day
NEW FORMAT: Shotgun Start
NJBIA will hold its 38th Annual Golf & Tennis Day at Forsgate Country Club in Monroe Township (NJ Turnpike, Exit 8A).  This event, one of the State’s major business outings, will be held in a new format this year with a morning shotgun-scramble.  Breakfast will begin at 7:00 a.m., followed by an 8:00 a.m. tournament start, a 1:00 p.m. reception, and lunch from 2:00 – 3:00 p.m.  A round-robin tennis tournament will be held at the East Brunswick Racquet Club starting at 8:00 a.m.  Cost per person:  $270 for golf and luncheon, $150 for tennis and luncheon, and $89 for luncheon only.  Download the registration form, or contact Stacy Wichner at 609-393-7707, ext. 213, for more information.  To become a sponsor, contact Sherry Esteves, ext. 219.  Don’t miss this fun networking event, which attracts more than 250 golfers annually!

Tuesday, July 22
Paid Family Leave Briefing
New Jersey has become only the second state to pass a broad paid family leave mandate affecting all employers.  Starting in July 2009, your employees will be able to take six weeks of paid family leave each year for the birth or adoption of a child or to deal with a family member’s “serious health condition.”  This briefing will provide you with details about this new law, including:  when an employee is eligible to take paid leave, crucial deadlines, your obligations as an employer, and how to make sure your workplace is in compliance.  It will be held at the Woodbridge Hotel and Conference Center in Iselin from 8:30 a.m. until 11:00 a.m.  The cost is $99 per person for NJBIA members and $129 for nonmembers. Register online now, or contact Stacy Wichner at 609-393-7707, ext. 213, for more information.

Friday, Sept. 19
Energy Seminar and Expo
This half-day program will provide employers with the latest developments in energy policy and regulation.  You will learn strategies to manage your energy costs and how changes to the Energy Master Plan and implementation of the Regional Greenhouse Gas Initiative (RGGI) will impact your electric and gas prices.  The seminar, to be held at the Pines Manor in Edison, begins with continental breakfast at 8:00 a.m. and ends at 1:00 p.m.  The cost to attend is $119 for NJBIA members, $149 for nonmembers. Register online now, or contact Stacy Wichner at 609-393-7707, ext. 213, for more information.  To become a sponsor/exhibitor, contact Sherry Esteves at ext. 219.

MEET THE DECISION MAKERS 2008
Meet New Jersey’s top two legislative leaders, State Environmental Commissioner Lisa Jackson, and other decision makers in the final two events of our 2008 series.

Fri., Sept. 26:  Meet NJ’s Top Two Legislative Leaders
Hear directly from New Jersey’s two most powerful legislative leaders, Senate President Richard Codey and Assembly Speaker Joseph Roberts.  These two individuals have enormous influence over legislation affecting health insurance costs, business taxes, workforce mandates, and the overall cost of doing business.  Plenty of time will be set aside to answer your questions.

Fri., Oct. 17:  Environmental Regulation and Legislation
Meet NJ Department of Environmental Protection Commissioner Lisa Jackson; the respective chairmen of the Senate and Assembly Environment Committees, Bob Smith and John McKeon; and other members of the Senate and Assembly Environment Committees, who will discuss State environmental policy, laws and regulations.

Both briefings will be held at the Forsgate Country Club, Monroe Township (NJ Turnpike, Exit 8A), beginning with registration and a buffet breakfast at 7:45 a.m. and ending at 10:00 a.m.  The cost to attend is $69 per person for NJBIA members and $105 per person for nonmembers.  For for more information, contact Stacy Wichner at 609-393-7707, ext. 213.  To become a sponsor, contact Sherry Esteves, ext. 219.