Companies receiving State job creation and retention incentives will now have to make annual reports detailing their progress on meeting their employment promises. The new requirements are in legislation, S-1213 (Turner)/A-3450 (Gusciora, Cohen), recently signed into law by Governor Jon Corzine. The new law will affect companies that receive Business Employment Incentive Program (BEIP) grants and Business Relocation and Retention Assistance Grants (BRRAG).

Both BEIP and BRRAG are designed to create jobs in New Jersey by reimbursing companies a portion of the employee taxes paid by the new jobs they create. In both cases, grants are only provided for jobs that would not otherwise have been created or retained, and grants are not paid until each promised job has been in place for one full year. BEIP grants are designed to attract companies to New Jersey, while BRRAG grants are designed to prevent New Jersey companies from moving or expanding outside the State.

The new law will require companies receiving funding to submit annual reports detailing the specific number of jobs they've created and how that compares to the goals stated on their grant applications. The law also will require businesses applying for grants to submit more detailed information regarding the jobs they expect to create. It takes effect April 29, 2008.

Despite these requirements, NJBIA is confident BEIP and BRRAG will continue to be good investments for taxpayers. Tens of thousands of jobs have been created through these programs, generating millions of dollars more in tax revenues than have been paid out in grants. For more information, contact Art Maurice at ext. 247.

Codey, Roberts, DeCroce Return as Leaders; Sweeney, Kean Get Leadership Posts

Richard Codey has again been elected Senate President, but Senators of both parties have chosen new leaders for the legislative session that starts on January 8. State Senator Stephen Sweeney will take over as Senate Majority Leader and Senator Tom Kean, Jr. will be the new Republican Leader. Leadership elections were held on November 8. In the Assembly, Joseph Roberts was again chosen as Speaker, and party members reelected Assemblywoman Bonnie Watson Coleman as Majority Leader. Assemblyman Alex DeCroce received another term as as Republican Leader.

Sweeney will take over from outgoing Majority Leader Bernard Kenny, who did not seek reelection this year. Sweeney, from Gloucester County in South Jersey, edged out State Senator Paul Sarlo of Bergen County. Kean will take over from current Republican Leader Leonard Lance, who is stepping down after four years in that position.

Governor's Task Force Calls for Restructuring Public Employee Health Benefits

A gubernatorial task force charged with analyzing ways to make New Jersey's healthcare system more cost effective has recommended restructuring the State Health Benefits Program, taking advantage of cost-saving measures available through Medicaid, and focusing on preventative measures for the most chronic health problems. In a sweeping report released November 9, the 14-member Health Care Task Force of the Government Efficiency and Reform (GEAR) Commission concluded that significant healthcare savings were possible because New Jersey has been slow to adopt cost-containment strategies that have proven effective in the private sector and other states.

The recommendations include restructuring the State Health Benefits Program to encourage wider use of more affordable plans and implementing strategies for reducing rates of obesity, diabetes and other chronic diseases that lead to avoidable health problems.

Digital Media Bill Conditionally Vetoed

Governor Jon Corzine has conditionally vetoed legislation aimed at attracting companies in the burgeoning digital media industry. The bill, S-2526 (Sarlo, Kyrillos)/A-4250 (Chivikula, Greenwald), would have provided companies with tax credits for digital media production expenses in much the same way the State promotes the film industry with tax credits for film production expenses.

While Corzine agrees with the concept of the bill, he asked the Legislature to scale back the size and scope of the tax credits and include specific job creation requirements as a condition of the tax credit. The bill has been returned to the Senate, which can agree to the Governor’s changes, override the Governor’s veto or let the bill die. For more information, contact Art Maurice at ext. 247.

How Will the Elections Impact Your Business? Find out at NJBIA’s Public Policy Forum, Tuesday December 11

Governor Jon Corzine and Presidential candidates Senator Hillary Rodham-Clinton and Mayor Rudy Giuliani are the invited keynote speakers at this networking and public policy event of the year. Entitled ELECTION YEAR WATERSHED: How Will the 2007-2008 Elections Impact Your Business?, NJBIA’s Public Policy Forum will bring together business leaders, economic experts and top policy makers from all over the State. The program features a panel of top legislative leaders, who will discuss the Legislature’s plans for 2008; predictions on the presidential elections from seasoned political observers; and an economic forecast for New Jersey by three CEOs and a top regional economist.

The event will be held from 7:45 a.m. to 2:00 p.m. at Sheraton at Woodbridge Place, Iselin (Exit 131A, Garden State Parkway). The cost is $170 per person for NJBIA members and $230 for nonmembers. Register online now, or contact Katie Wittkamp at 609-393-7707, ext. 239, for more information. To become a sponsor, contact Sherry Esteves at ext. 219.