Legislation that would prevent an automatic $350 million payroll tax increase on employers received final legislative approval in the Assembly on June 19 and was immediately signed into law by Governor Jon Corzine.

The bill, S-1698 (Buono, T. Kean)/A-2801 (Greenwald, Milam), adds $260 million to the Unemployment Insurance (UI) fund so it can continue to pay claims. Without the money, employers’ payroll taxes would have automatically increased by 15 percent on July 1.

At the Governor’s press conference for the bill signing, NJBIA President Philip Kirschner thanked the Governor and the Legislature for their swift action in dealing with the UI fund deficit. "Make no mistake, without this bill, the State would be imposing a tax increase on jobs at a time of great economic weakness," Kirschner said. For more information, contact Art Maurice at ext. 247.

Legislature Introduces Budget That Cuts Spending

After weeks of negotiations with Governor Jon Corzine, legislative leaders in the Senate and Assembly introduced a State budget that would spend about $600 million less next year than this year and which would not increase taxes or fees.  The Assembly Budget Committee released the bill, A-2800 (Greenwald, Pou), on June 19.  The budget would appropriate $32.9 billion in State funds for Fiscal Year 2009, about $600 million less than the $33.5 billion FY 2008 budget the Governor signed last year.  Among other provisions, the budget would restore some funding to hospitals for charity care and $500,000 to the Small Business Development Center, allowing it to maintain its $2.5 million in federal matching funds. 
 
The Assembly Budget Committee and Senate Budget and Appropriations Committee also released a related bill, A-2807 (Quigley)/S-2045 (Lesniak), which would delay the phase-out of the 4 percent Transitional Energy Facilities Assessment (TEFA) on utility bills and extend the tax until 2014.  The “temporary” tax was part of energy deregulation in the 1990s and was supposed to be eliminated by 2002.  If the bill is enacted, it would be the fourth time in seven years the tax has been extended.  Currently, the tax is scheduled to be reduced in 2009 and eliminated altogether in 2010.

Bills Would Cut Time for Expedited Workers’ Comp Determinations

Some injured workers would be able to get quicker determinations on workers’ compensation cases requiring expedited medical attention under bills released by two legislative committees on June 19.  The committees adopted NJBIA-backed amendments to maintain the safeguards that allow New Jersey’s workers’ compensation system to provide generous benefits at reasonable costs.  The Assembly Budget Committee released A-2968 (Egan, Cohen) and the Senate Labor Committee released S-1916 (Sarlo).    

Under current law, a worker who files a motion for expedited workers’ compensation medical treatment is assured of having a court hearing within 30 days. A-2968 and S-1916 would reduce that time if the worker obtains a doctor's statement that delay in treatment would result in specific irreparable harm or damage. In such cases, a workers’ compensation judge would be required to hold an initial conference within 10 days to try to resolve the matter. If the parties do not reach agreement, the judge would then schedule a court hearing to decide the issue. Under these proposals the timeframe for the employer's insurance company to secure a medical examination is cut in half from that of the current provision involving motions for medical treatment. 

Permit Extension Act Advances

Legislation to protect projects delayed by the economic downturn from losing their existing permit approvals cleared both the Senate Economic Growth and Assembly Budget Committees on June 19.  Known as the Permit Extension Act, A-2867 (Greenwald, Malone) and S-1919 (Sarlo, Van Drew) would extend to December 31, 2010 the expiration date of all State and local government approvals issued since January 1, 2007.  The permitting process in New Jersey is extremely time-consuming and expensive, often taking five years and hundreds of thousands of dollars to complete.  At a time when the State economy desperately needs such projects to move forward, it makes no sense to force them to navigate the entire time-consuming permitting process again because of an arbitrary deadline.  For more information, contact Art Maurice at ext. 247.

Affordable Housing Reform Bill with Reasonable Standardized Fees Passes

Legislation to overturn new Council on Affordable Housing (COAH) regulations passed the Assembly on June 16.  New COAH regulations would allow municipalities to charge an 8 percent to 10 percent tax on nonresidential development, adding substantial new costs to businesses that want to relocate or expand their facilities.  A-500 (Roberts, Watson Coleman) would instead establish a Statewide tax of 2.5 percent on nonresidential development and prohibit municipalities from assessing other fees or requiring affordable housing construction by nonresidential developers.  For more information, contact Art Maurice at ext. 247.

Healthcare Reform Bill with Probusiness Insurance Market Reforms Clears Committee

The Senate Budget and Appropriations and Assembly Budget Committees on June 19  released  health insurance reform 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)/A-2624 (Cohen, Greenwald), would also enact numerous insurance market reforms that have been championed by NJBIA, including changes to insurance-plan pricing in the individual market,  a reduction of red tape in the small-employer market and greater transparency in insurance plan  pricing.  For more information, contact Christine Stearns at ext. 260.

Golf & Tennis Day, with New Shotgun Scramble Format, Tuesday, July 15

One of NJ’s best business outings just got better with a new shotgun scramble format. Download the registration form, or contact Stacy Wichner at 609-393-7707, ext. 213, for more information. To become a sponsor, contact Sherry Esteves at ext. 219.