Democrat Jon Corzine will be the next Governor of New Jersey and Assembly Democrats will expand their majority by at least one seat thanks to a resounding victory in the November 8 election.

In the most expensive gubernatorial race in State history (both candidates spent more than $70 million combined), US Senator Corzine defeated Republican businessman Doug Forrester by a decisive 53 percent to 44 percent margin. Corzine carried 13 of New Jersey’s 21 counties, including traditionally Republican Atlantic and Burlington Counties.

“We will earn that trust every day for the next four years,” Corzine said in his victory speech. “We can change the way public business is done in New Jersey and reel in insider deals and no-bid contracts. Public service is about serving the public, nothing else. I know we can have an open and honest government. We must first restore trust in those who govern. To that end, hold me accountable.”

Corzine’s victory touched off an immediate scramble for replacement of his US Senate seat. A freshman US Senator, Corzine has one year remaining on his six-year term, and as Governor will have the responsibility for choosing his successor. Among the candidates are US Rep. Robert Menendez of Hudson County, US Rep. Frank Pallone of Monmouth County, US Rep. Robert Andrews of Camden County and Acting Governor Richard Codey.

In the Assembly, Democrats will expand their 47-33 majority by at least one seat by knocking off Republican incumbents in Atlantic and Cape May counties and reclaiming an open seat in North Jersey. The lone bright spot for the GOP was in Monmouth County, where Republicans won five of the six predominantly Monmouth County Assembly seats.

In the 1st Legislative District (Cape May, Cumberland and Atlantic Counties), political newcomer Nelson Albano handily defeated Republican incumbent Jack Gibson, 31,589 votes to 24,840. He will join Democratic Incumbent Jeff Van Drew, who was the district’s top vote-getter with more than 40,000 votes.

In Atlantic County’s 2nd Legislative District, former Atlantic City Mayor James Whelan beat incumbent Republican Kirk Conover. Democrat Whelan was the top vote-getter with 27,546 votes, while incumbent Republican Frank Blee appeared to have enough votes, 26,433, to hold off Whelan’s Democratic running mate, Damon Tyner, who had garnered 24,162 votes.

In Monmouth County’s 12th Legislative District, Republican challenger Jennifer Beck beat incumbent Democrat Robert Morgan. Democrat Michael Panter led Declan O’Scanlon by 70 votes for the second seat, which may go to a recount.

In the 11th District (Monmouth County), incumbent Republicans Steve Corodemus and Sean Kean held off a vigorous challenge from Democrats Matthew Doherty and Jim Reilly, who had spent hundreds of thousands of dollars to unseat the incumbents. Corodemus and Kean garnered 29,258 and 29,131 votes respectively, compared to 27,724 for Doherty and 27,220 for Reilly.

In the 13th Legislative District (Monmouth and Middlesex Counties), Republican Monmouth County Freeholder Amy Handlin was the top vote-getter with 29,327 votes to capture an open Assembly seat and join incumbent Republican Assemblyman Sam Thompson, who won with 29,206 votes. The two beat Democrats William Flynn, who received 25,742 votes, and Michael Dasaro, with 24,781 votes.

The contentious 14th Legislative District (Mercer and Middlesex Counties) returned the two incumbents, Republican Bill Baroni and Democrat Linda Greenstein. Baroni was top vote-getter with 36,506 votes, followed by Greenstein, with 34,216 votes. Republican challenger Michael Paquette came in third with 29,291 votes, and Democrat challenger Dan Benson earned 28,569 votes.

Democrats also picked up a seat in the heavily Democratic 36th Legislative District (Passaic, Bergen and Essex Counties). Democrat Gary Schaer won easily with 24,365 votes, outpolling Republicans Louis Aloia and Jose Sandoval, who received 14,919 and 14,756 votes, respectively. Schaer will join Assemblyman Frederick Scalera, who was top vote-getter with 25,096 votes. Although clearly a Democratic district, one of the Assembly seats had been held by a Republican, veteran Assemblyman Paul DiGaetano, for 14 years. DiGaetano chose not to run for reelection.

If the contested Democratic victory holds up, Assembly Democrats will take a 49-31 majority into the 2006-2007 legislative session. Combined with a 22-18 majority in the State Senate and a resounding victory by Governor-elect Corzine, Democrats will hold firm control of the State House for at least the next two years.

Voters also approved two statewide public questions. New Jersey will add a Lieutenant Governor to its list of statewide offices, thanks to an amendment to the New Jersey State Constitution that passed 743,358 votes to 591,879 votes. Also, voters elected to allow a dedicated tax source to be used to retrofit publicly owned and operated diesel trucks and buses by 725,783 votes to 571,104.

Retailers who have not been collecting New Jersey sales taxes will get a one-time amnesty from the NJ State Department of Treasury if they register as part of the new multi-state streamlined sales tax initiative. Businesses have until September 30, 2006, to register without having to pay fines, penalties or back taxes. Go to www.sstregister.org/sellers to register.

New Jersey recently joined 17 other states to create uniform sales and use tax rules under the Streamlined Sales and Use Tax Agreement (SSUTA). All participating states have agreed to uniform standards for sales-tax-collection administration, state and local sales tax base, tax base definitions, vendor registration, sourcing rules for taxable transactions (determining which state gets the money), administration of exemptions, tax returns and tax remittances. Tax rates will continue to vary from state to state, but the definitions of what to tax will be the same. The SSUTA is designed to ease sales tax compliance and administrative costs on retailers, particularly those with multi-state operations.

The amnesty applies to sellers operating in New Jersey that have not yet registered or remitted sales tax to the State, and others sellers who overlook their obligations under the sales tax law. The new uniformity-in-sales tax definitions will help states like New Jersey better identify sellers who should be registered and remit sales tax here. The amnesty program will make tax registration easy for unregistered sellers. Companies that transact sales in New Jersey and are not currently collecting and remitting sales tax revenue should register.

NJBIA supported the streamlined sales tax initiative because it will reduce administrative burdens and will make New Jersey vendors more competitive with out-of-state vendors selling into New Jersey and often escaping sales tax payment. For more information, contact Art Maurice at ext. 247.

New Jersey companies must invite union representatives to participate in certain environmental plant inspections, under an administrative order issued by NJ Department of Environmental Protection (DEP) Commissioner Bradley Campbell. The order lets union representatives accompany DEP inspectors looking for potential safety and security hazards under the Toxic Catastrophe Prevention Act (TCPA). NJBIA opposes this order. It was issued without any public notice, and it gives unions the opportunity to use inspections as leverage in union negotiations with management.

The order directly impacts 101 facilities that are regularly inspected under the TCPA program. The order requires employers to post inspection notices and to notify union representatives of their right to accompany inspectors. The order requires that union representatives/employees be part of DEP meetings with management about the inspection outcomes.

Such a move carries a great potential for abuse. Union representatives could use the mere threat of suggesting dubious “potential” security hazards as leverage during union negotiations. Employees can already notify the DEP of any potential hazard under the protection of the State’s stringent whistle-blower protection laws. There is no reason for union officials to participate in a DEP inspection. Furthermore, this order creates a new policy without the necessary public comment and debate. If the DEP thinks it is necessary to have union representatives on inspections, it should publish a rule and give affected parties ample time to comment, as required under current law. For more information, contact Dave Brogan at ext. 236.

Anyone who spends more than 20 hours a year trying to influence a governmental process—such as the award of contracts and permits, not just legislation or regulations—will have to register as a lobbyist, under recently modified regulations adopted October 25 by the NJ Election Law Enforcement Commission (ELEC).

The regulations will be published in December and are expected to take effect January 1. Once they do, those who attempt to influence executive branch employees must register as legislative agents, pay a $425 registration fee, file periodic reports, and comply with all statutes and regulations regarding gifts and benefits for legislators, legislative staff and executive branch officers and employees.

Compared to the original proposal, these regulations are limited in their scope. They no longer include numerous routine activities that could have turned thousands of New Jersey employers into registered lobbyists. As originally proposed, virtually any business contact with a government entity would have been deemed “lobbying” and would have required thousands of employers to register as lobbyists. ELEC revamped those regulations to include many NJBIA-recommended exemptions to routine activities.

The final rules exempt a wide range of activities from the definition of “influencing a governmental process.” These activities include gathering information, participating in government inspections, responding to audits, providing advice or services as part of an existing contract, responding to a subpoena, and more. The regulations also exempt activities of members of government task forces and advisory boards.

Employers who have regular dealings with the State should monitor the ELEC Web site, www.elec.state.nj.us, or the New Jersey Register for publication of the new regulations. For more information, contact John Rogers at ext. 209.

A. J. Sabath has been sworn in as the new commissioner of the NJ Department of Labor and Workforce Development, replacing Thomas Carver, who now heads the Casino Reinvestment and Development Authority. Sabath was appointed deputy commissioner last year. Before that, he was a senior research associate with the Senate Democrats, specializing in labor issues.

Joseph L. Fiordaliso has been nominated Commissioner of the NJ Board of Public Utilities (BPU) to fill the vacant seat of Jack Alter, whose term had expired.

Many employers underestimate the legal minefield of the hiring process.

The hiring and dismissal of employees is one of the most important responsibilities of employers. Without knowledge of the many relevant laws surrounding the subject, employers can find themselves in great legal trouble.

To help its members with these difficult issues, NJBIA held its Hiring & Firing: Putting the Legal Pieces Together seminar on October 21. More than 140 companies attended, eager to understand the dizzying array of laws and regulations.

“Hiring and termination questions are among some of the most frequent we receive at the Association,” said NJBIA Vice President John Rogers. “Adding pressure to the situation, these are questions an employer usually faces during a crisis when a decision needs to be made immediately.”

Four New Jersey lawyers with great experience in employment law, Martha L. Lester, Esq. (Lowenstein Sandler, PC), Mark J. Manta, Esq. (MantaCole, Inc.), Ian D. Meklinsky, Esq. (Fox Rothschild LLP), and Katherin Nukk-Freeman, Esq. (Gibbons, Del Deo, Dolan, Griffinger & Vecchione, PC), led the discussion and delivered their most critical advice in one word: Document.

“It may be tempting for an employer to rely on oral agreements in its relationships with employees rather than putting agreements in writing,” said Lester. “The risk inherent in such a practice is that as time passes and memories fade, disputes may arise as to what the terms of the agreement actually were.”

“My company will benefit because I learned a lot about what should be in an ‘offer letter’ and personnel file,” said Donna Corris of Rahway Valley Sewerage Authority. “We’ll also be incorporating some of the suggested changes into the way we currently handle some of our personnel matters.”

Manufacturing Council Discusses Agenda for 2006

The NJBIA Manufacturing Council recently discussed its action plan for the remainder of the legislative session with Assemblyman John Wisniewski, co-chair of the Legislature’s Manufacturing Caucus, who provided a list of pro-manufacturing bills that he believes will see action before the session concludes January 10, 2006.

Council Chairman Cliff Lindholm III, CEO of the Falstrom Company, said the council should build on its successful visibility campaign to educate local officials about the role of manufacturing in New Jersey’s economy.

“Too often, State and local leaders think of manufacturing as an undesirable business to have in their neighborhoods,” said Lindholm. “This year, we have been successfully educating legislators about the value of having a strong manufacturing sector. Next year, we must begin to deliver this message to our local leaders.”

The meeting also featured two presentations about valuable services available to manufacturers. Siddika Pasi, M.E. urged manufacturers to apply for free energy and waste audits from Rutgers University’s New Jersey Program for Manufacturing Excellence. This program helps manufacturers identify ways to reduce energy costs and eliminate hazardous waste costs. Participating companies can save an average of about $55,000 per year.

Also, Rose Smith of the NJ Economic Development Authority (EDA), said the EDA is seeking to extend its manufacturing grant/loan program to consulting services, which do not qualify under current EDA guidelines. For more information about the activities of the Council contact John Rogers at ext. 209.

Education Committee Finds New Ways to Partner with Public Schools

At a recent NJBIA Education Committee meeting, Senator Joseph Doria discussed the school funding formula, charter school funding, higher education bond issues for facilities and regionalization of school districts.

Additionally, a panel of school principals said businesses could do more to help their schools by assisting with career day, school supplies, mentoring, enrichment programs and advocacy. The panelists said a greater focus needs to be put on middle school students, as they are at the age when attitudes are formed. They noted the importance of character education in teaching the soft skills needed by business.

New Jersey’s minimum wage increased to $6.15 per hour on October 1, under a new law enacted this summer. The increase is $1.00 an hour more than the federal minimum wage of $5.15 an hour, making New Jersey one of only 17 states that have a higher minimum wage requirement than the one imposed by the federal government.

The minimum wage will increase by $1.00 an hour again on October 1, 2006, and future minimum wage increases will be recommended by a committee created by the law. When the law is fully implemented, an estimated 200,000 workers would be affected.

NJBIA opposes the law because small businesses will struggle to absorb a 40 percent increase in wages, and because of a ripple effect that the law will have on wage costs for employees making $8.00 and $9.00 per hour.

For more information, contact John Rogers at ext. 209.

2005 Public Policy Forum
Confronting the Post-Election Challenges:
What to Expect from NJ’s New Governor and Legislature

Tuesday, December 13, 2005, Sheraton at Woodbridge Place, Iselin, NJ 7:45 a.m. — 2:00 p.m.
7:45 — 8:15 a.m.
Registration and Networking

8:15 a.m. — 11:00 a.m.
Opening Breakfast Program

Presentation of Paul L. Troast Award
Recipient: Hon. Richard J. Codey

Keynote Speaker
Hon. Richard J. Codey, Acting Governor

Presentation of 2006 Business Outlook
Findings of NJBIA’s Annual Survey of 23,000 Employers
NJBIA President Philip Kirschner

The Legislative Leadership
Confronting the Post-Election Challenges
Legislative Leaders: Alex DeCroce, Bernard Kenny Jr., Leonard Lance, Joseph Roberts

11:00 a.m. — Noon
Concurrent Panel Discussions

Post-election Political Outlook
What’s in Store for NJ Employers?
Four top political analysts assess the State’s newly elected political leadership.

New Jersey Economic Outlook
Why is Job Growth Sputtering?
Three CEOs and one economist look at what can be done to restore New Jersey’s economic leadership.

Noon — 2:00 p.m.
Luncheon Program

Presentation of the Leonard C. Johnson Award
Recipient: JoAnn Trezza, Arrow Group Industries

Keynote Speaker
Governor Jon Corzine (invited)

Registration Information: The cost is $170 per person for NJBIA members and $230 for nonmembers. Contact Stacy Wichner at 609-393-7707, ext. 213.

Be A High Profile Forum Sponsor
The following opportunities are available for Forum sponsors. Contact Sherry Esteves at ext. 219 for details.

Opening Breakfast: Co-Sponsorship @ $2,500
(includes one complimentary ticket to the Forum with reserved seating at breakfast)

Morning Panel Discussions: Co-Sponsorship @ $1,500

Luncheon Program: Co-Sponsorship @ $2,500
(includes one complimentary ticket to the Forum with reserved seating at lunch)

Networking/Coffee Breaks: Sponsorship @ $500

Sponsors will be recognized during the event with announcements and signs. Your company will also be recognized in the feature story appearing in the February 2006 issue of New Jersey Business Magazine. In addition, sponsors of $1,500 or more can have a link to their corporate Web site posted on NJBIA’s Web site.

The Practical Guide to Federal and NJ Employment Law:
The Employer’s Resource, Combined Edition

NJBIA is proud to offer the savvy employer this valuable publication edited by Martha Lester, Esq., Chair of Lowenstein Sandler’s Employment Law Practice Group. The guide covers federal and New Jersey employment-related laws, regulations and best practices, making it an essential resource for managers and employers seeking to comply with laws and manage workplace risks effectively. This user-friendly resource provides the law, contact information, HR tips, frequently asked questions, and forms. Contact Chris Lopez at 609-393-7707, ext. 224, to order your copy of this invaluable guide or order on-line at www.njbia.org. Prices: NJBIA members $80 (plus 6percent NJ sales tax), nonmembers $115 (plus 6 percent NJ sales tax).