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| Monthly Newsletter - |
July/August
2007 - Download PDF version |
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| Calendar of Events |
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| Pay-to-Play Disclosure: Is Your Business Ready? |
| Meet NJ’s Top Two Legislative Leaders |
| Meet DEP Commissioner, Lisa Jackson |
| Awards for Excellence Dinner |
| Employee Health Insurance: How to Get the Best Deal for Your Employees |
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Corzine Pledges to Continue Economic Growth, Job Creation Efforts at ELC Dinner |
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Governor Corzine told 400 business leaders that growing the economy remains at the top of the administration’s agenda, and he reiterated his desire to work with businesses, even if they disagree with him on issues like paid- family-leave.
Corzine delivered the keynote address June 20 at the State Dinner of the Employer Legislative Committees of New Jersey, which also featured US Attorney Christopher Christie. The event was sponsored by Bank of America New Jersey. Ann Limberg, president of Bank of America New Jersey, served as dinner chair.
Corzine highlighted his administration’s probusiness accomplishments: implementing a State economic growth strategy, cutting business taxes by $370 million in his first 18 months, and signing a budget in June that has no new taxes or fees. He pointed out that under his administration, New Jersey’s unemployment rate has been lower than the national average, and the State has won high marks from organizations like the Kauffman Foundation, which ranked New Jersey 2nd in the nation in advancing its economic transformation.
But Corzine made it clear that he was at the beginning, not the end, of his economic development efforts. “We have a full agenda ahead of us,” he said. “We’re not done.”
He said one of his biggest concerns is finding revenues for New Jersey’s infrastructure projects including highways, schools, and mass transit. He cited his development of an asset monetization plan, (for example, leasing a portion of an asset such as the Turnpike to an entity in return for a large up-front cash payment). He said it was the best option available to the State to invest in its future, and he urged business to keep an open mind about the idea.
Corzine also affirmed his support for legislation imposing a paid-family-leave mandate on New Jersey businesses—legislation NJBIA vehemently opposes. Speaking before the AFL-CIO the week before the ELC Dinner, Corzine urged the Legislature to send him a paid-family-leave bill by the end of June. “I know there is a difference of opinion, but I don’t want to say at the AFL-CIO conference that I’m in favor of paid-family-leave and then come (to the ELC Dinner) and not have you know where I stand.”
In her remarks, Bank of America’s Limberg praised the county ELCs and their participants for the time and effort they put into building better communities. “Working closely with our local communities yields the best results,” Limberg said. “This is true whether it’s a local bank branch providing families and businesses with new financial opportunities, or local businesses working with government officials to foster the kinds of policies that will ensure prosperity for the future.”
Limberg presented U.S. Attorney Christopher Christie with the first-ever ELC Distinguished Service Award. Christie is the first person to have spoken at each of the 17 county ELC meetings at least once. In his remarks, Christie said that while he had talked at length about public corruption at the county ELCs, he wanted to discuss two other critical issues—terrorism and gang violence. He said in his view, New Jersey is “under siege in this State…from the potential of both external attack and internal attack that eats at the very core of the quality of life that we want to have.”
ELCs are the grassroots affiliate of NJBIA. Seventeen ELCs representing all 21 New Jersey counties meet monthly over either breakfast or lunch with local elected representatives or government officials to discuss issues impacting business. To learn more about the ELCs, contact
at ext. 225.
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State Budget Cuts Taxes For Businesses |
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The $33.5 billion State budget recently signed by Governor Corzine contains $275 million in business tax reductions, including the elimination of the double taxation of S corporations, a key goal of NJBIA.
The budget also continues the tax savings from the repeal of the alternative minimum assessment and the reinstatement of full deductions for net-operating losses. This is also the first budget in six years that does not raise taxes or fees.
The Governor also signed S-3001 (Turner)/A-5002 (Burzichelli), which allows the NJ Division of Taxation to request information on joint accounts of suspected tax debtors. It also requires companies to notify the Division of Taxation at least 10 days before the bulk sale of company assets so the agency can check a company’s tax liabilities. Corzine also signed S-3003 (Turner) /A-5003 (Burzichelli, Vas), which requires participants in various State incentive programs to be up to date on any taxes owed.
For more information, contact
at ext. 247.
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New DEP Regulations Cut Time Trucks Are Allowed to Idle |
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The amount of time trucks are allowed to idle has been greatly reduced under NJ Department of Environmental Protection (DEP) rules that recently took effect.
The new rules eliminate most exemptions to the “three-minute” idling rule. For example, diesel-vehicle drivers can no longer idle for 30 minutes at their place of business at the start of the day or for 15 minutes following a three-hour engine shutdown (except in very cold temperatures).
Violators are subject to a penalty of $250 to $1,000 per day for each vehicle.
After April 30, 2010, truck operators will be prohibited from idling their vehicles overnight. They will have to use new technologies such as truck-stop electrification and alternate power units to provide heating, cooling and other amenities.
The DEP, in partnership with the New Jersey Motor Truck Association (NJMTA), provides grants to truck owners to install technologies to reduce idling and save fuel. These technologies include alternate power units, bunk heaters and tailpipe retrofits.
Truck owners can contact the NJMTA at 732-254-5000 for more information on these grants.
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Greenhouse Gas Law Could Hike Your Energy Prices |
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In a move that could lead to higher electricity prices, Governor Corzine recently signed a bill to greatly cut New Jersey’s greenhouse gas emissions.
The new law requires the State to reduce greenhouse gas emissions by 20 percent between now and 2020 and 80 percent by 2050. The law does not detail how these reductions will be achieved. Instead, the NJ Department of Environmental Protection (DEP) will list sources of emissions and set up a reporting and monitoring system by January 2009. By June 2008, the DEP will recommend regulations and legislation to implement the 20-percent reduction.
By June 30, 2010, the DEP will recommend regulations and laws to achieve the 2050 goal. NJBIA convinced lawmakers to eliminate language that imposed fees on businesses. An earlier version of the bill would have allowed the DEP to impose fees of any size on business.
NJBIA opposed enactment of the bill. It will likely lead to higher electricity costs, arbitrary limits on energy use and higher taxes on business, while having very little impact on the overall reduction of greenhouse gases. According to the US Energy Information Agency, New Jersey’s industrial ratepayers pay the fourth highest electric rates in the nation, and commercial ratepayers pay the 11th highest electric rates in the nation. Increasing these costs further will raise New Jersey’s already high cost of doing business.
For more information, contact
at ext. 204.
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VIEW ALL STATE CONTRACT OPPORTUNITIES Online |
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Businesses can now view advertisements and information for bidding on all State government contracts at one Web site. The Web site, located at www.newjerseybusiness.gov/opportunities, contains information businesses need to submit bids or proposals on contracts from every State governmental entity, including departments, agencies, independent authorities and State colleges and universities.
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Legislature Takes Last-Minute Action on Environment, Tax and Workforce Bills |
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Having completed their budget more than a week before the July 1 deadline, State legislators wrapped up the last legislative voting sessions before the November election with action on environmental bills, Urban Enterprise Zone sales tax rebates, and new workforce rules and penalties.
Two of NJBIA’s biggest concerns, mandated paid family leave for all businesses and a vastly expanded mental healthcare insurance coverage mandate, were not acted on, but could come up after the election. Here is a look at some of the bills the Legislature did pass before going on their summer break. |
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Criminal Penalties for Worker Misclassification. |
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Legislation that could land employers in prison for as long as 10 years if they knowingly misclassify an independent contractor was signed into law July 13 by Governor Corzine. The law (P.L. 2007, c.114) applies only to employers who are construction contractors.
The law makes the misclassification a second-degree crime if it involves a contract valued at more than $75,000, a third degree crime for contracts between $2,500 and $75,000, and a fourth-degree crime for contracts under $2,500.
The law also puts the burden on employers to prove that they do not have an employer-employee relationship subject to New Jersey’s employment laws. NJBIA opposed this measure. The Association believes that intentionally misclassifying workers hurts both reputable employers and employees alike and should be punished with civil penalties. But hitting contractors with the same criminal penalties as some violent offenses goes too far.
For more information, contact
at ext. 209.
Increased Environmental Penalties. The Senate approved S-2650 (Vitale, Buono), which would greatly increase penalties for environmental violations.
Before passage, the Senate Environment Committee adopted several NJBIA-backed amendments: removing big penalties for minor violations and clerical errors that were not intentional; clarifying that fines are paid to the State Treasury, not the NJ Department of Environmental Protection; and ensuring that only the State can seek natural resources damages from a company.
Companies could face fines of up to $35,000 per day for violating a wide variety of environmental laws. For more information, contact
at ext. 236.
Business Lay-off Notices. Some employers that close businesses or lay off workers would be subject to greater notification requirements and penalties under legislation that has received final legislative approval recently.
A-1044 (Van Drew, Johnson)/S-472 (Sweeney, Doria) would require employers with 100 or more employees to provide 90 days notice before closing a business or laying off 50 or more employees within a 30-day period. If employers miss the notice requirements by even a single day, the bill would require them to pay employees the equivalent of one week’s wages for each year of employment.
NJBIA opposes this bill because it far exceeds other state and federal notification laws. Federal law requires only 60 days notice and does not penalize businesses with severance payments that could cost an employer hundreds of thousands of dollars. The measure now goes to the Governor for consideration. For more information, contact
at ext. 209.
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Quote of the Month |
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“New Jersey acting alone is not going to solve global warming.”
—Sara Bluhm,
NJBIA Assistant VP of Energy & Federal Affairs responding to legislation setting arbitrary limits on greenhouse gas emissions.
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September 28 Is Pay-to-Play Reporting Deadline
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Any business that had at least $50,000 worth of State or local government contracts in 2006 must file a political contribution disclosure statement with New Jersey’s Election Law Enforcement Commission (ELEC) by September 28, under new regulations taking effect this year. The 2006 annual disclosure report must be filed electronically on ELEC’s Web site. Your business may be subject to large fines and penalties for failure to comply. Disclosures must be filed even if there are no campaign contributions to report. For more information, contact
at ext. 209.
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Exploding Healthcare Costs Make it Harder for NJ Businesses to Compete, NJPRO Study Says
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Rising healthcare costs make it harder for New Jersey companies to compete in the global market and reduce access to health insurance for employees, according to a new study by NJBIA’s research affiliate, the New Jersey Policy Research Organization (NJPRO) Foundation.
The study, entitled High Healthcare Costs in New Jersey, provides a detailed description of health insurance hyperinflation, both in New Jersey and nationally.
Citing NJBIA’s 2007 Health Benefits Survey, the study said healthcare costs rose by an average of 11.3 percent for NJBIA members in 2006 and have increased 80 percent over the last five years. The average cost to employers is $7,561 per employee. Soaring costs have forced many small businesses to drop health insurance coverage altogether, with 82 percent of companies with two to 19 employees providing health insurance coverage in 2006, compared with 92 percent three years earlier.
NJPRO also highlights some of the underlying causes for skyrocketing premiums, including government-imposed health insurance coverage mandates, providing treatments solely to avoid medical malpractice lawsuits, the rising cost of treating the uninsured, and inefficient record-keeping. While acknowledging that healthcare reform is also a national issue, the study concludes that several reforms could be enacted at the State level. Among them are: offering businesses more choices in the types of health plans they can buy, repealing existing coverage mandates, banning future coverage mandates, using electronic medical records, and enacting medical malpractice reform. To view the full study, go to the NJPRO Web site at njprofoundation.org.
For more information on NJPRO, contact
at ext. 204.
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State Stats Spotlight: NJ First in Nation in End-of-Life Medicare Spending for Chronically Ill |
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The Garden State ranks first in the nation in Medicare spending for the chronically ill, according to Dartmouth Medical School’s Atlas of Healthcare 2006. The study is featured as one of the NJ Policy Research Organization’s (NJPRO) State Stats, which show how New Jersey measures up to other states in key areas.
According to the study, New Jersey has the highest Medicare spending for the chronically ill in their last two years of life, even though patient care has not been shown to be better than other states. In fact, the study shows that states that spend as much as 40 percent less per patient than New Jersey have about the same quality of care as the Garden State.
The Dartmouth study showed that there was no correlation between high spending rates and increased life expectancies or, for that matter, an improved quality of life for patients. According to the study, the states that had the highest Medicare spending also had the highest mortality rates and lowest patient quality of life marks. Researchers attributed these findings to more medical mistakes, since these patients tend to make more frequent visits to physicians, have longer hospital stays, and are referred to an increased number of specialists, which causes fragmented care and poor communication, increasing the possibility for error.
New Jersey’s poor ranking from the Center for Evaluative Clinical Sciences, Dartmouth Medical School, is just one of the State Stats featured on NJPRO’s Web site. The full compilation is available online at www.njprofoundation.org.
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Small Businesses Can Get Basic-Skills Training for Employees Thanks to $1.88M State Grant |
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Small and medium-size businesses throughout New Jersey can now take advantage of a free training program to enhance the computer, communications, language, and math skills of their employees. The program has been made possible thanks to a new $1.88 million Basic Skills Workforce Training Program initiated by the New Jersey Business & Industry Association (NJBIA) in partnership with the county colleges and the NJ Department of Labor (DOL).
The program represents a ground-breaking effort to make State training funding available statewide to small companies that previously did not have the resources to participate in New Jersey’s other workforce training programs.
The program is a partnership between NJBIA, the New Jersey College Consortium for Workforce & Economic Development, which will conduct the training, and the DOL, which has provided the $1.88 million in funding.
Already, over 300 businesses have asked to participate in the program.
NJBIA initiated the program in response to a finding in its 2007 Business Outlook Survey that many New Jersey employers were unhappy with the basic skills that entry-level employees bring to their jobs.
In an effort to address these skill shortages, the Basic Skills Workforce Training Program is being made available to NJBIA members and members of local chambers of commerce.
“We’re excited to be able to offer this program to our members because, over the years, many of them have told us their employees would be more successful and productive at their jobs if they had better computer, verbal or math skills,” said NJBIA President Philip Kirschner.
Training courses are being offered in computer applications (Windows, Word, Excel and Outlook), communications (written and verbal), English as a second language, and mathematics and measurement.
Participating businesses will not have to fill out any paperwork or disclose their company finances, and they will not be charged for the training. However, they will be required to keep employees “on the clock” (paid at their usual hourly rate) while they are attending the training courses. Employers will no longer need to send at least 10 employees for training.
The Community College Consortium will work with employers to determine the most convenient time and location for all training courses, which will be held at county college locations across the State or at a company site if arrangements can be made.
The one-year program, which began July 1, will continue through June 30, 2008.
If you have any questions, contact NJBIA's
at 609-393-7707, ext. 201.
How to Get Started:
• Take the needs assessment survey: www.njbia.org/resources/training
• Call the Consortium staff at 609-393-9009
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Getting the Full Benefit
Credit-Card Processing |
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Want to lower your credit-card processing costs?
Through NJBIA’s partnership with Cornerstone Association Merchant Services (CAMS), you can lower your processing costs and integrate into one system the latest non-cash transaction programs such as PIN-based debit, check guarantee programs and signature capture.
You can also receive free credit-card processing equipment, as well as free gift and program-reward cards.
CAMS is likely to lower your costs. All they need is a few minutes with you on the phone to fully understand your business and your current situation, as well as copies of your most recent credit card statements to review.
For more information or to get a free customized quote, call 877-445-8195. Visit “Money-Saving Programs” at www.njbia.org/resources for more information.
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ASK THE EXPERTS!
By Arthur Maurice, First Vice President |
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Q. Is it true that every business with a total of $50,000 or more in government contracts in 2006 must file a political-contributions disclosure statement by September 28?
A. Yes. Any business with an annual aggregate of at least $50,000 in contracts with New Jersey State and local governments must file a business entity annual political contribution disclosure statement with the New Jersey Election Law Enforcement Commission (ELEC). This requirement takes effect with government contracts from the 2006 calendar year. The 2006 annual disclosure report must be filed on or before September 28, 2007 and must be filed electronically on ELEC’s Web site. In future years, the annual disclosure report will be due no later than March 30. Failure to comply may result in large fines and penalties.
This disclosure requirement is one of the broadest government reporting requirements ever adopted in New Jersey. For example, businesses must file the report even if no political contributions have been made during the period in question. In the past, New Jersey’s pay-to-play laws typically differentiated between competitive (awarded in a public “fair and open” process) and non-competitive (negotiated) contracts. This annual disclosure requirement applies to all government contracts, regardless of the contract award process.
In defining an applicable business entity, the disclosure requirement casts the widest possible net. Entities run the gamut from sole proprietors to public corporations (and every type of business in-between), including non-profit organizations.
Determining whether or not a political contribution is reportable will require significant legwork on the part of each business. A reportable contribution is not simply a contribution written from the business checking account. Reportable contributions also include contributions made directly from the personal funds of a business’s owners, principals, partners, officers, directors and their spouses. Contributions by subsidiaries, directly or indirectly controlled by the business, are also reportable. In cases of sole proprietors, contributions made by children of the owner are reportable.
In completing the form, a business will need to provide the following information:
• amounts received under each government contract or agreement,
• the date of each contract and the contract identification number,
• a description of the goods, services, equipment or property sold under the contract,
• the name and address of the contribution recipient political candidate or committee,
• the name and address of the contributor, and
• the amount of the contribution.
It is important to note that this business entity disclosure statement is in addition to other pay-to-play reports that a business with government contracts must file.
Questions abound surrounding interpretation of this new disclosure mandate. To answer your questions and to help you comply with the multitude of pay-to-play rules and filings, including this business-entity disclosure, NJBIA is holding a special seminar on Tuesday, September 18, at the Pines Manor in Edison, entitled: Is Your Business Ready to Comply with Pay-to-Play Disclosure?
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Calendar of Events
Visit Events and Seminars to register. |
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Tuesday, Sept. 18
Pay-to-Play Disclosure: Is Your Business Ready?
At this half-day seminar, find out from top experts what your business needs to know to comply with New Jersey’s new pay-to-pay disclosure rules. All businesses, including nonprofits, which have State, county or local contracts with governmental entities of $50,000 or more, are now required to file political- contribution disclosure statements. The disclosure must list the campaign contributions of the business, officers and their spouses to candidates and other political organizations. The deadline for filing the first annual report is September 28, 2007. Failure to properly comply can expose your business to significant fines and penalties. The seminar will be held from 8:30 a.m. until noon at the Pines Manor on Route 27 in Edison. To register, contact
at 609-393-7707, ext. 219.
Wednesday, Sept. 26
Meet NJ's Top Two Legislative Leaders
At this briefing, to be held at Forsgate Country Club (Exit 8A, NJ Turnpike), you will hear from the State's top two legislative leaders who pass the laws that impact your business. Senate President Richard Codey and Assembly Speaker Joseph Roberts will offer their thoughts and answer your questions. This event will run from 7:30 a.m. until 10:00 a.m. with a full breakfast and a brief overview of NJBIA's legislative agenda, presented by NJBIA Senior Vice President Melanie Willoughby. The cost per person is $69 for NJBIA members and $105 for nonmembers. Contact
at 609-393-7707, ext. 239, for more information or to register.
Wednesday, Oct. 3
Meet DEP Commissioner Lisa Jackson
Lisa Jackson, Commissioner of the NJ Department of Environmental Protection (DEP), will share her views on the direction the DEP is taking and how she plans to balance economic growth with environmental regulations. This event will be held at the Forsgate Country Club (Exit 8A, NJ Turnpike) and will run from 7:30 a.m. to 10:00 a.m. The cost for the program is $69 per person for NJBIA members and $105 for nonmembers. Contact
at 609-393-7707, ext. 219, to register or become a sponsor.
Tuesday, Oct. 16
Awards for Excellence Dinner
NJBIA member companies that have demonstrated excellence in activities related to environmental quality, job creation, human resources management, and public service will receive NJBIA's Award for Excellence during a dinner at the Pines Manor in Edison on Route 27. The program begins at 6:00 p.m. and will include a reception, dinner and the awards presentation. The price is $149 per person. Tables of ten are available. Contact
at 609-393-7707, ext. 239, to register.
HOLD THE DATE!
Tuesday, Oct. 30
Seminar: How to Get the Best Deal on Health Insurance for Your Employees
To be held at Forsgate Country Club in Monroe Township, from 8:30 a.m. until 12:30 p.m.
Friday, Nov. 16
Seminar: Preventing Workplace Discrimination Lawsuits
To be held at the Sheraton in Eatontown, from 8:30 a.m. until 12:30 p.m.
Tuesday, Dec. 11
Public Policy Forum
Hear from top leaders in business and government and learn about the biggest issues facing your New Jersey business. A great networking event. To be held at the Sheraton at Woodbridge Place, Iselin,
7:45 a.m. - 2:00 p.m.
Raise Your Visibility Become an Event Sponsor
The Awards for Excellence Dinner. The Public Policy Forum. First-rate events like these offer your company an excellent opportunity to reach its target audiences and heighten its visibility as an event sponsor. Learn more about becoming an NJBIA sponsor by contacting
at 609-393-7707, ext. 219.
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New Jersey Business & Industry Association
102 West State Street
Trenton, NJ 08608-1199
609-393-7707
Copyright© 2001 NJBIA
All Rights Reserved. Reproduction in whole or in part in any medium
without express written permission is prohibited. |
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