Legislation—A-3257 (Burzichelli)—aimed at protecting property owners from the unfair use of eminent domain is a step in the right direction, but NJBIA believes greater protections for businesses are needed. Testifying before the Assembly Commerce and Economic Development Committee on June 12, NJBIA Vice President David Brogan stated NJBIA believes the legislation should include provisions that: provide compensation for the value of the business, not just the real estate; make it harder to take properties through eminent domain; and require greater opportunities for public comment and public notification.
Generally, eminent domain laws allow municipal governments to condemn private properties, take ownership of them after compensating the owners, and then use them for public purposes, such as schools, roads and bridges. The focus recently has been on the government's ability to condemn private property that is determined to be “blighted” then sell it to another company for economic development purposes. In New Jersey, a shrinking percentage of developable land, dramatically higher property values, and a scramble for more property tax ratables have created a “perfect storm” that is putting pressure on local governments to use eminent domain more frequently.
As lawmakers debate ways to protect homeowners from the unfair use of eminent domain, NJBIA is working with lawmakers to ensure that businesses are protected as well. Specifically, NJBIA believes that the legislation should recognize the value of the business itself, not just the real estate. Brogan told the Assembly committee that compensation for a business on a condemned property should reflect the intrinsic value and good will of the business. Additionally, the State should require a higher threshold for subjecting property to eminent domain. Currently, the standards for designating property as “blighted” are extremely subjective and require no objective evidence to support the designation. NJBIA believes the taking of a business or home is a very serious matter and should meet a higher objective standard.
Finally, the Legislature should require greater opportunities for public comment and public notification. Specifically, eminent domain should require additional hearings regardless of the size of the parcels of land or the number of residents and businesses involved, provide greater notice of actions taken by the municipality, and establish consequences for a municipality's failure to mail notices to affected parties. For more information, contact David Brogan at ext. 236.
Government Mandates on Doctors and Referrals Would Lead to Higher Healthcare Costs, NJBIA Says—NJBIA testified June 12 against two bills that would lead to higher health insurance rates by removing key cost controls insurance companies can use to control the costs of the health plans they offer to employers. These mandates would prohibit health plans from requiring referrals and require them to add physicians and other healthcare providers to their network. NJBIA Vice President Christine Stearns said these bills would add to the myriad of existing mandates that account for as much as 20 percent of the cost of a typical health insurance premium. With employers' health insurance costs rising at an alarming rate (respondents to NJBIA's Health Benefits Survey reported a cumulative 55 percent increase from 2000 through 2004), legislators should look for ways to reduce health insurance costs, not add to them.
Stearns testified against ACS-1616 (Burzichelli, Conaway), which requires health insurance companies to contract with any willing provider. Insurance companies would be forced to allow any doctor, specialist, or other healthcare provider into their network. Controlling which healthcare providers can be part of an insurance network is an important cost-containment tool for insurance companies and should be preserved. Stearns also testified against A-3239 (Conaway, Gordon), which would prohibit insurance companies from requiring patients to get a referral from their primary care physician before going to a specialist who is in the company's network. This would allow patients to go to numerous consultations, billed to the insurance company, without any check on whether such consultations are medically necessary. Ultimately, the costs of these two bills would be borne by the employers who pay the health plan premiums. ACS-1616 was released from the Assembly Insurance Committee and awaits action by the full Assembly. A-3239 was released by the Assembly Health Committee and referred to the Assembly Insurance Committee. For more information, contact Christine Stearns at ext. 260.
Navigating New Jersey's Pay-to-Play Laws, Friday, June 23—Since January 1, doing business with State, county and local governments has become much more challenging due to complicated new rules on campaign contributions by government contractors and vendors that can prevent you from getting or keeping government contracts. At this seminar, the government officials in charge of enforcement will explain what contractors and vendors need to know about the new laws.
You will also get practical advice from local and county government officials and vendors who are already dealing with the new laws. If you have a government contract of any kind or are looking to do business with government, register now and find out what you need to do to protect your business. This event will be held at the Hilton East Brunswick (right off Exit 9 of the NJ Turnpike) from 8:30 a.m. until noon. The cost is $109 per person for NJBIA members and $139 for nonmembers. To register, please contact Sherry Esteves at 609-393-7707, ext. 219, or register online.
RESERVE YOUR TEE TIME! Golf & Tennis Day, July 18—NJBIA will hold its 36th annual Golf and Tennis Day at the Forsgate Country Club in Monroe Township on Tuesday, July 18. Register now to enjoy one of the State's biggest and most fun business outings, attracting 300 golfers each year. The cost per person is $260 for golf and dinner, $145 for tennis and dinner, and $99 for dinner only. You can register by contacting Stacy Wichner at 609-393-7707, ext. 213, or you can download the fax-back event registration form now. To become an event sponsor, contact Sherry Esteves at ext. 219.
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