Legislation that would increase penalties for State environmental law violations has been scaled back thanks to the adoption of more than a dozen common sense amendments pushed by NJBIA. The amended bill received final legislative approval on December 17 and has been sent to the Governor for his signature. Before being approved, S-2650 (Vitale, Buono)/A-4287 (Wisniewski, Vas) was modified to remove criminal penalties for minor violations and to state that violations subject to civil penalties would have to be committed knowingly or recklessly. This ensures that inadvertent errors will not result in major penalties. The bill also was amended to give more time (35 days) for alleged violators to respond and request a hearing.

The amended version also removed an onerous provision that all violations be permanently recorded on a property’s deed. As amended, only violations of the Safe Dam Act and the Flood Hazard Control Act could be recorded on deeds, but these violations would have to be removed once resolved. Finally, the bill, as originally written, would have directed that all financial penalties collected by the NJ Department of Environmental Protection (DEP) be deposited in funds controlled by the agency instead of being placed in the State’s general fund. This would have given the DEP a clear incentive to collect more fines. Under the amended bill, only fines collected under the Threatened and Endangered Species Act, the Safe Dam Act, and the Freshwater Wetlands Protection Act would be kept by the DEP so it can meet federal matching fund requirements. For more information, contact David Brogan at ext. 236.

Healthcare Information Technology Bill Clears Committee

Legislation that would increase and improve the use of information technology in healthcare record keeping was released by the Senate Health Committee on December 17. It has already cleared the Assembly. The measure, A-4044 (Conaway, Chivikula)/S-2728 (Vitale, Buono), would establish the State's first electronic medical records infrastructure and create a Health Information Technology Commission to oversee the development, implementation and oversight of the program. The program’s goal is to reduce the paperwork, duplication of medical tests, and errors that currently burden the State’s healthcare system. This should ultimately reduce healthcare costs

NJBIA supports the bill. New Jersey companies are struggling to keep up with the cost of health insurance, which is rising at three times the rate of inflation. Greater use of information technology can help control costs through better record keeping and the avoidance of duplicate medical tests. Increased use of healthcare information technology is part of NJBIA’s health insurance reform plan. For more information, contact Christine Stearns at ext. 260.

Competing Greenhouse Gas Regulation Bills in Assembly and Senate

After multiple drafts and three public hearings, two competing versions of legislation that would implement the Regional Greenhouse Gas Initiative (RGGI) in New Jersey are currently moving through the Assembly and Senate. A-4995 (Chivikula, McKeon) and S-2976 (Sweeney, Smith) are both pending in respective appropriations committees. With only one day of committee meetings scheduled before the end of the current legislative session, it is not clear if legislators will be able to sort out the complex issues surrounding greenhouse gas regulation before the new Legislature is sworn in on January 8.

Both measures could increase electricity rates by capping the amount of greenhouse gases that can be emitted and by requiring electricity generators to purchase allowances for their greenhouse gas emissions. The cost of the allowances would be passed to consumers in the form of higher rates. RGGI is an effort by 10 Northeastern states to reduce power-plant carbon emissions. Electricity generators would also face increased competition from generators in other states, including Pennsylvania, that do not have to comply with costly greenhouse gas regulations.

NJBIA believes the bill should spell out key policy decisions and limit the discretion given to the NJ Department of Environmental Protection (DEP). The bill should also coordinate the sale of greenhouse gas emissions credits with the existing Basic Generation Service (BGS) Electric Auction, which is administered every February by the NJ Board of Public Utilities. Otherwise, generators would be bidding on utility services without knowing how much they will have to pay for carbon credits. Also, the bill should guarantee that if a federal cap-and-trade program is instituted, the RGGI provisions would be repealed. Otherwise, New Jersey electricity generators would have to go through the bureaucratic nightmare of complying with two separate cap-and-trade programs. Finally, NJBIA opposes any provision that would allow utilities undertaking energy conservation and renewable energy projects to increase their rates to make up for lost energy sales due to reduced consumption. At present, one or both bills contain provisions contrary to NJBIA’s position on these issues. For more information, contact Sara Bluhm at ext. 204.

Corzine Signs Revised Layoff Notices Bill

The Legislature agreed to Governor Jon Corzine’s recommendation that businesses should provide public notices 60 days before a business closing or mass layoff. The original bill required a 90-day notice. Corzine signed the revised bill, A-1044 (Van Drew, Johnson)/S-472 (Sweeney, Doria), on December 20. The change keeps New Jersey in conformance with federal law, which requires 60 days notice. As finally written, the law requires businesses with 100 or more employees to provide 60 days notice before closing a business or laying off 50 or more employees within a 30-day period.

NJBIA supports this change. Longer notice requirements could push businesses that are already struggling financially into more financial trouble, ultimately costing New Jersey more jobs in the long run. NJBIA remains concerned about the law’s huge severance payment requirements, which could cost an employer that misses the notice requirement by even one day hundreds of thousands of dollars. For more information, contact John Rogers at ext. 209.

Nominate Your Candidate for a New Good Neighbor Award

The 48th 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. Plants, offices and commercial buildings, plus shopping centers may be nominated. Deadline for nominations is February 4. Download the nomination form.