The Assembly Labor Committee did not consider paid leave legislation at its December 6 committee meeting, but Assembly members are expected to discuss the bill during their caucus on December 13. The bill, S-2249 (Sweeney, Buono)/A-3812 (Albano, Panter), could still be brought up at any time during the next four weeks, so it is important to continue to contact your legislators. Send your legislators a message to oppose paid leave. Our system is fully automated and will take little of your time.

New Jersey would be only the second state in the nation to impose a paid leave mandate on every business with two or more employees. Employees would be entitled to 10 weeks of paid time off regardless of whether they worked for a small retail business with five employees or a large hospital with special needs. Currently, businesses use a variety of work-life balance strategies to accommodate the needs of their employees, including sick-time, vacation, flexible scheduling and many other programs. A paid family leave mandate would impose an unworkable, one-size-fits-all program on all employers. For more information, contact at ext. 209.

Probusiness Economic Development Bills Clear Committee

The Senate Economic Development Committee on December 3 released legislation to bolster businesses in downtown areas and to expand an important job retention program. NJBIA supports both bills and is pushing to have them enacted before the end of the lame-duck session.

The committee released A-3938 (Burzichelli, Cryan)/S-2491 (Sweeney), which would fully restore the point-of-sale sales tax exemption for businesses located in Urban Enterprise Zones (UEZ) when purchasing goods for their own use. The committee amended the bill to repeal the requirement, initiated in 2006, that UEZ businesses first pay the sales tax on such purchases and then apply for a tax rebate. The program was fraught with delays, and some businesses waited months to get their rebates.

The committee also released S-80 (T. Kean/Bucco), which would lower the eligibility requirement for Business Relocation and Retention Assistance Grants (BRRAG) to 50 jobs from 250 jobs. Under the program, businesses are eligible for a one-time business tax credit of up to $1,500 per job retained in or moved to New Jersey. To qualify, however, a business currently must retain or relocate a minimum of 250 jobs. This excludes 97 percent of the employers in New Jersey. By lowering the threshold, many more companies would be able to participate, and the State would benefit from the retention and creation of more jobs.

Both bills are awaiting action in the Senate Budget and Appropriations Committee. Contact at ext. 247.

Environment Committee Releases $34 Million Trash Tax

Legislation that would add a $34 million trash tax to New Jersey’s already high tax burden was released by the Assembly Environment and Solid Waste Committee on December 6. The bill, S-557 (Smith)/A-1886 (McKeon), would use the funds for recycling programs. NJBIA opposes the bill as it would worsen an already dismal business tax climate in New Jersey. The National Tax Foundation recently ranked New Jersey’s tax climate 49th in the nation. Additionally, there is no indication that more funding would improve recycling efforts. New Jersey’s recycling rates peaked at 60 percent in the mid-1990s when funding for such programs was less than $8 million. For more information, contact at ext. 236.

Greenhouse Gas Bill May Increase Electricity Rates, NJBIA Tells Committee

Legislation implementing the Regional Greenhouse Gas Initiative (RGGI) has the potential to increase electricity rates, NJBIA told the Assembly Environment Committee on December 6. The bill, A-4995 (Chivikula, McKeon), would create a cap-and-trade program requiring electricity generators to purchase allowances for their carbon emissions up to a capped amount. Electricity generators that do not exceed their purchased emissions cap could sell their excess allowances to other generators who need them.

Electricity rates are likely to increase under this cap-and-trade program. The initial cost of the allowances is expected to generate around $70 million, which would be passed on to ratepayers in the form of higher electricity rates. Beyond this, the bill includes several provisions that would increase rates even further by going beyond the original scope of the Regional Greenhouse Gas Initiative (RGGI) agreement, an effort by 10 Northeastern states to reduce carbon dioxide emissions from their power plants.

NJBIA believes the bill leaves too many policy decisions to the discretion of the NJ Department of Environmental Protection (DEP) that should be spelled out in the legislation itself. The bill would allow the State to establish regional, national and even international cap-and-trade programs that would increase fees on industry. And it would regulate emissions of all greenhouse gases, even though RGGI requires New Jersey to limit only carbon emissions. The legislation should not go beyond RGGI. The bill should also guarantee that if a federal cap-and-trade program is instituted, the RGGI provisions would be repealed. The bill released from committee leaves this to the discretion of DEP. NJBIA believes generators should not have to go through the bureaucratic nightmare of complying with two separate cap-and-trade programs.

Finally, the bill would allow utilities that undertake energy conservation and renewable energy projects to increase their electricity rates to make up for the lost sales due to lower customer usage of electricity. This provision should be eliminated. For more information, contact at ext. 204.

Nominate Your Candidate for the NJ Business Hall of Fame by Dec. 15

Nominate your candidates for the 2008 New Jersey Business Hall of Fame. The program was founded in partnership with NJBIA, Junior Achievement and The Star-Ledger to honor New Jersey's business leaders who are role models for today’s youth. Every year, three laureates are recognized for their outstanding accomplishments in their industries and for their commitments to improving the quality of life in New Jersey. Make Your Nomination

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

Governor Jon Corzine has accepted our invitation to be a keynote speaker. Presidential candidates Senator Hillary Rodham-Clinton and Mayor Rudy Giuliani have also been invited to speak 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 at 609-393-7707, ext. 239, for more information. To become a sponsor, contact at ext. 219.