The NJ Department of Environmental Protection (DEP) has proposed regulations that would force businesses along all New Jersey tidal waters, like rivers, to provide waterway access and recreational facilities to the public. The new regulations suggest the DEP thinks that the public wants to fish and swim near factories, refineries, and other industrial facilities and, therefore, should be provided with access and amenities, including bathroom facilities. In those cases where it is not feasible to provide the public with access, businesses would be mandated to pay to create access and provide facilities elsewhere.

NJBIA strongly opposes this rule change. In written comments submitted to the Department, NJBIA said the proposed regulations represent a dramatic expansion of the current requirements. Originally, the rules were intended to provide the public access to the beach, not factories or utilities located along rivers and back bays. DEP's proposal would apply the regulations to any property located along tidal waters. If the rule is approved, industrial facilities, manufacturing facilities, chemical plants, marinas, refineries and utilities that apply for any Coastal Permit would be required to provide public access and bathrooms.

Beyond the rule's inherent lack of common sense, its requirements are not even feasible in many cases. Many of these facilities are actually required to restrict access to their properties by other laws, such as the State Toxic Catastrophe Prevention Act (TCPA) or the federal Homeland Security Act. These laws are aimed at preventing potential terrorist activity and other common sense security concerns. Consequently, those companies would be forced to pay to create access at off-site locations. But as NJBIA pointed out in its comments, the rule provides no guidance on what a business's obligation would be. There are no limits or rules regulating the off-site access points. There is no limit or guidelines on the cost of acquiring property or constructing an access point. The rule does not specify who would be responsible for security or who would be liable if someone was hurt. The proposal would create an open-ended and potentially disastrous financial burden on the State's businesses and industries that in many cases have operated in this State for decades. For more information, contact Dave Brogan at ext. 236.

View a copy of the proposed rule.

Taxation Issues Exemptions to Construction Contractor Withholding Law—Property owners will not be responsible for withholding payroll taxes from construction subcontractors and lower tier subcontractors if the primary contractor they hire provides proof of registration with the NJ Division of Revenue, according to new guidelines issued by the NJ Division of Taxation. The guidelines are in response to a new State law that took effect on January 1. Property owners who hire an unincorporated contractor who is not registered with the Division of Revenue must withhold 7 percent of the total contract’s value and forward it to the Division of Taxation.

Earlier this month, Taxation provided the following clarification (emphasis added):

"The contractor, subcontractor or lower tier subcontractor may be excused from withholding if they have proof of registration with the Division of Revenue. Property owners also are excused from liability with respect to subcontractors if the primary contractor, with whom the owner has a contract, has provided proof of the primary contractor's registration with the Division of Revenue to the owner. With regard to liability, if the primary contractor has not provided proof of registration with the Division of Revenue, the property owner will avoid liability with respect to the primary contractor and subcontractors by withholding the 7 percent income tax on the contract price for the entire job, unless provided with proof that the subcontractors are registered with the Division of Revenue."

For more information, contact Art Maurice at ext. 247. Visit the Division of Taxation's Web site for detailed guidance.

Kavanaugh Becomes the Fifth Republican to Announce Retirement—Long-time Republican State Senator Walter Kavanaugh announced January 16 that he would not seek reelection to his Somerset County-based seat. Kavanaugh's announcement is the fifth such retirement announcement made by a Republican legislator. State Senator William Gormley of Atlantic County has announced that he will leave office on February 15. State Senators Joseph Palaia (Monmouth County) and Len Connors (Ocean County), and Assemblyman Steve Corodemus (Monmouth County) had already announced that they will not seek reelection.

New Good Neighbor Call for Nominations Deadline Extended to February 16—The 47th Annual 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 will be chosen based on economic benefit and job creation, architectural merit, and community involvement. The nominating deadline has been extended to February 16. Go here for more information.

Meet the Decision Makers Series Begins February 21 with Labor Commissioner David Socolow—NJBIA will kick off its Meet the Decision Makers breakfast series on Wednesday, February 21, with David Socolow, Commissioner of the NJ Department of Labor and Workforce Development (DOL). Find out what is in store for employers on issues such as wage and hour enforcement, unemployment insurance, temporary disability insurance, workers' compensation, workplace training programs and worker safety. Don't miss this opportunity to talk directly with Commissioner Socolow about your ideas or concerns. Register for this event now, or mark your calendar for these upcoming Decision Makers breakfasts:

Friday, March 23
State Treasurer Bradley Abelow

Wednesday, April 11
Governor's Chief of Staff Thomas Shea, Chief Counsel Ken Zimmerman, and Policy Counsel Heather Howard

Each breakfast will be held from 7:30 a.m. to 10:00 a.m. at Forsgate Country Club in Monroe Township. The cost to attend each breakfast is $69 per person for NJBIA members and $105 for nonmembers. For more information, contact Stacy Wichner at 609-393-7707, ext. 213. Call Sherry Esteves at ext. 219 to become a high profile sponsor.

Raise Your Visibility. Become an Event Sponsor—Golf & Tennis Day. NJBIA's Meet the Decision Makers series. First-rate events like these offer your company an excellent opportunity to reach their target audiences and heighten their visibility as an event sponsor. You can learn more about becoming an NJBIA sponsor online or contact Sherry Esteves at 609-393-7707, ext. 219.