More details emerged on Governor Jon Corzine's fiscal restructuring and debt reduction plan as the Administration offered a proposed draft of legislation on February 4. The plan would increase tolls substantially on four main highways and use the money to fund transportation projects and to reduce debt. Corzine outlined the plan in early January and has been holding town meetings throughout the State to explain it. The proposed legislation, which has not yet been introduced in the Legislature, offers the most detailed look at how the plan would be structured.

Under Corzine's proposal the operation of all toll roads would be put under the auspices of the NJ Turnpike Authority, which would then be called the NJ Capital Solutions Corporation (CSC). The corporation would take ownership and control of a section of Route 440, which would become a toll road, and the Atlantic City Expressway, while keeping the Turnpike and Parkway. The CSC would create a Public Benefits Corporation (PBC), which would be responsible for all of the roadway operations. All current employees for the roadways will be transferred to the PBC under the same terms and conditions in effect now. State Police would still be contracted for law enforcement services, and competitive contracting processes would be required for all procurement.

Corzine's proposed bill would also create a Citizens' Board, which would oversee the actions of the CSC and PBC, and would vote to approve members of the board of trustees of the PBC.

The PBC also would issue up to $40 billion in bonds that would be used to pay for debt service and capital expenditures of the toll roads, and to pay off portions of debt from the Transportation Trust Fund, the General Fund, the Turnpike Authority and the South Jersey Transportation Authority. The bonds would be paid for with toll increases on the Parkway, Turnpike and Expressway, and new tolls on Route 440. Tolls would increase 50 percent in 2010, 2014, 2018 and 2022. Tolls would also increase 2 percent to 5 percent annually according to the rate of inflation. NJBIA is carefully reviewing the draft legislation. For more information, contact Art Maurice at ext. 247.

Legislation Allowing Private Parties to Enforce Health Insurance Laws Clears Assembly

Legislation, A-1907 (Conaway, Chiappone), that would allow trade groups representing healthcare providers to bring lawsuits against health insurance companies passed the Assembly on February 7. Currently, the NJ Department of Banking and Insurance (DOBI) enforces New Jersey’s insurance laws, including the Health Care Quality Act, the Unfair Claims Settlement Practices Act, the Unfair Trade Practices Act, and other laws. The measure now heads to the Senate for consideration.

NJBIA opposes this bill. DOBI has the expertise and the resources necessary to regulate health insurance companies and enforce New Jersey’s health insurance laws. Several options for resolving disputes between providers and insurance companies already exist. For more information, contact Christine Stearns at ext. 260.

State Unveils New Guidelines for UEZ Sales Tax Rebates

Urban Enterprise Zone (UEZ) businesses seeking sales tax rebates on the goods they purchase will no longer have to provide documentation with their applications, according to new guidelines from the NJ Division of Taxation. The change took effect February 1. Businesses must retain documentation of the sales for a minimum of four years and must be able to produce it at the request of the division. Additionally, thanks to a new law, those businesses with annual gross receipts of $3 million or less do not have to use the rebate procedure. Previously, only businesses with less than $1 million in annual gross receipts were exempt.

The new rules concern one of the UEZ benefits available to qualified businesses - a sales-tax exemption for goods purchased for use in the business. Previously, UEZ businesses received the sales tax exemption when they bought their products. In 2006, the Legislature changed the law to require businesses to first pay the sales tax on such purchases and then apply for a tax rebate. The program has been fraught with delays, and some businesses waited months to get their rebates. While the changes initiated by the division are welcome and will ease delays, NJBIA maintains that the rebate program is unnecessary and the point-of-sales exemption should be restored. For more information, call 973-648-3900 and ask for the UEZ office.

Making Sense of Family and Disability Leave, Friday, March 7

This program will help employers sort through the bewildering levels of leave regulations and show how to avoid costly mistakes regarding length of leave, job protection, benefits and discrimination issues. Top employment law experts will explain how to avoid the many legal pitfalls and will share the lessons they have learned. The seminar will be held at the Sheraton Eatontown (near Exit 105, Garden State Parkway) from 8:30 a.m. to 12:00 p.m. The cost is $119 per person for NJBIA members and $149 for nonmembers. Register online now, or contact Katie Wittkamp at 609-393-7707, ext. 239, for more information.

Nominate Your Candidate for a New Good Neighbor Award

The deadline for nominations for NJBIA's New Good Neighbor Awards has been extended to February 11. The New Good Neighbor Awards competition recognizes companies that have worked to bring about an improved business climate in New Jersey by building or renovating a commercial facility. Winners are chosen based on economic benefit and job creation, architectural merit, and community involvement. For details, contact at 609-393-7707, ext. 239.

Meet the Governor's Chief of Staff, Chief Counsel and Policy Counsel, Feb. 29

Meet Governor Jon Corzine's new Chief of Staff Bradley Abelow, new Chief Counsel Edward McBride and new Policy Counsel Adam Zellner at this Decision Makers breakfast briefing, February 29 at the Forsgate Country Club in Monroe Township. Get the latest on key issues such as financial restructuring, the budget and healthcare reform and find out what plans the Governor has for the coming year. This is a great networking event! Register online now, or contact at ext. 239 for more information.