The Senate Environment Committee May 8 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 more information, contact David Brogan at ext. 236.

Regulatory Flexibility Act Expansion Clears Committee

Small businesses that believe they are unfairly burdened by government regulations would be able to take their cases to court under NJBIA-backed legislation, A-832 (Chivukula, Schaer)/S-1793 (Sarlo, Girgenti), released May 8 by the Senate Economic Growth Committee. The bill would expand New Jersey’s Regulatory Flexibility Act to allow businesses with fewer than 100 employees to appeal to the courts if they have been economically harmed by the actions of a government agency. The bill would also require government agencies to simplify and consolidate reporting requirements for small businesses.

“Small businesses represent over 96 percent of the business community in New Jersey,” NJBIA Vice President David Brogan told the committee. “A-832 enhances New Jersey’s Regulatory Flexibility Act by taking additional steps to recognize and address the impact regulations have on small businesses.” For more information, contact David Brogan at ext. 236.

Legislative Panels Back Energy Conservation Incentives for Business

Two separate legislative committees on May 5 released two measures to provide financial incentives to businesses that undertake energy conservation and renewable energy projects. The Senate Community and Urban Affairs Committee released S-710 (Smith, Sweeney), which would exempt renewable energy improvements from local property-tax assessments; while the Assembly Telecommunications and Utilities Committee released A-2705 (Chivukula), which would increase grants to businesses for on-site power generation and energy efficiency projects. NJBIA supports both bills.

A-2705 would provide grants to businesses that generate their own electricity on site and for energy efficiency audits and improvements. The bill would allocate $60 million for on-site generation from the existing Retail Margin Fund, with the remaining balance, approximately $30 million, for energy audits and efficiency projects. The Retail Adder Fund is financed through an assessment on large, hourly priced customers’ electricity bills. The bill now heads to the Assembly Appropriations Committee.

NJBIA has long argued that financial incentives for energy conservation projects have been unfairly distributed. As the largest energy consumers in the State, businesses pay more towards these funds than homeowners, yet the bulk of the funding goes to residential projects. What’s more, statistics show that commercial and industrial projects produce far greater reductions in energy consumption for the money than residential projects.

S-710 would exempt solar technologies, photovoltaic technologies, wind energy, fuel cells, geothermal technologies, wave or tidal action, resource recovery systems, and other technologies. If energy conservation is to be a goal of the State, businesses that undertake such projects should, at the very least, not be penalized with higher property tax assessments that would otherwise result from the improvements. The bill now heads to the Senate Budget and Appropriations Committee for consideration. For more information, contact Sara Bluhm at ext. 204.

NJBIA-Backed Urban Scholarships Bill Advances

NJBIA-backed legislation that would create a privately funded scholarship fund for students in a few poor-performing urban school districts to be used to go to other schools was released May 8 by the Senate Economic Growth Committee. The bill, S-1607 (Lesniak), would fund scholarships with donations from businesses, which could then apply the cost of the contributions as a credit against their Corporation Business Tax.

Scholarships would go to low-income students residing in eight school districts—Newark, Jersey City, Paterson, Orange, Trenton, Elizabeth, Camden, and Lakewood. Low-income is defined as no more than 2.5 times the federal poverty level, based on family size. For a family of four to be eligible, their income could not exceed $50,000 annually.

NJBIA backs the measure because businesses struggle to find entry-level workers with the appropriate skills. By giving students in poor-performing school districts more options for their education, NJBIA believes more students will be prepared for either the workplace or higher education. For more information, contact Christopher Emigholz at ext. 201.

NJBIA Government Affairs Publications Available Now Online

NJBIA produces many publications to alert our member companies to the legislative and regulatory actions in Trenton that impact their businesses. Each publication is a useful guide designed to help your company keep up with the latest developments in Trenton and stay in compliance.

Learn to Save on Your Business Costs, May 21

Michael Santoli, author of Barron's "Streetwise" column and one of the brightest analysts in business journalism today, will tell us what to expect from the current economic downturn, at the  NJBIA-Fidelity Investments Economic Forum: Surviving the Slowdown - Managing Costs in Tough Times,  May 21 at the Sheraton Hotel in Eatontown. How long will the downturn be? How will NJ be impacted? When will the market turmoil end? You will also hear from three of NJ's top business executives, who will present practical cost-saving tips for surviving the slowdown. Register online now, or contact Stacy Wichner at ext. 213 for more information.

Meet NJ's Top Government Leaders at 2 Special Briefings

NJBIA will bring together top Administration officials, along with legislative leaders, for insightful briefings at the Forsgate Country Club in Monroe Township on two of the biggest issues impacting your business operations, Energy - May 16, and Environmental Regulation and Legislation - October 17.