The State Legislature is poised to end its session January 7 without passing paid family leave legislation. Defeating this legislation was the top priority of NJBIA going into the lame-duck session.

The bill, S-2249 (Sweeney, Buono)/A-3812 (Albano, Panter), would have made New Jersey only the second state in the nation to require all businesses with two or more employees to provide ten weeks of paid time off for childbirth or family illness. It would have created a one-size-fits-all program that, unlike the existing unpaid leave mandates, would have disrupted all businesses regardless of size. (The State Family Medical Leave Act exempts businesses with two to 49 employees.) S-2249/A-3812 would have taken away the flexibility that businesses need to balance the work and personal responsibilities of their employees. It would force employers to absorb the costs of overtime, lost productivity and hiring temporary replacement workers while key employees are out for extended periods of time.

NJBIA members and employers throughout the State responded forcefully against the bill. Business people took time out of their busy days to meet individually with legislators and travel to Trenton to testify against the bill. And business people sent tens of thousands of messages opposing paid family leave to the Governor and legislators. To their credit, many legislators listened to these concerns and decided not to rush this legislation through the lame-duck session.

Unfortunately, the issue is expected to resurface in 2008 after the new Legislature convenes on January 8. The bill’s sponsor has pledged to push the bill through and hopes to see it passed by this spring. NJBIA will continue to vigorously fight this bill. For more information, contact John Rogers at ext. 209.

Lame Duck Round-Up

As the 2006-07 legislative session comes to a close, legislators are scrambling to get their priority bills enacted. Here is a look at the key business bills likely to receive final consideration on January 7, the last voting session of the 2006-07 Legislature. Any bills not considered by the Legislature by that day must be reintroduced and begin the entire legislative process anew.

Trash Tax. Legislation that would add a $34 million trash tax to New Jersey’s already high tax burden was released January 3 by the Assembly Appropriations Committee. The bill, A-1886 (McKeon), adds $3 per ton to the cost of waste disposal, which could be passed on to consumers. The money would be used 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 millions more in funding would improve recycling rates. New Jersey’s recycling rates peaked at 60 percent in the mid-1990s when funding for such programs was less than $8 million. A similar measure, S-557 (Smith), awaits action in the full Senate. For more information, contact David Brogan at ext. 236.

UEZ Reform. The Senate Budget and Appropriations Committee on January 3 stopped short of eliminating the requirement, initiated in 2006, that Urban Enterprise Zone (UEZ) businesses first pay the sales tax on goods purchased for their own use and then apply for a tax rebate. NJBIA had been pushing for the full restoration of a point-of-sale sales tax exemption that had been in place for UEZ businesses since the program’s inception because the rebate program is fraught with delays. The committee did amend the bill, S-2491 (Sweeney)/ A-3938 (Burzichelli, Cryan), to increase the exemption from the rebate program to any business with less than $3 million in sales, up from $1 million currently. While this is an improvement, NJBIA will continue to push for full restoration of the point-of-sale tax exemption. For more information, contact Art Maurice at ext. 247.

BRRAG Expansion. Legislation lowering the eligibility requirement for Business Relocation and Retention Assistance Grants (BRRAG) to 50 jobs from 250 jobs cleared committees in both the Assembly and Senate on January 3. The Senate Budget and Appropriations Committee released S-80 (T. Kean, Bucco), and the Assembly Appropriations Committee released A-1696 (Fisher, Van Drew). Under BRRAG, 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 to 50, this bill would enable many more companies to participate, and the State would benefit from the retention and creation of more jobs. NJBIA supports the bill. For more information, contact Art Maurice at ext. 247.

Damages for Emotional Distress (Wrongful Death). New Jersey would be one of only seven other states to allow for unlimited emotional damages in wrongful death lawsuits under legislation released January 3 by the Senate Budget and Appropriations Committee. The bill, S-176 (Scutari), could lead to huge financial awards because emotional damages, unlike economic damages, are speculative. Some companies could feel the effects of huge emotional damage awards in the form of higher liability insurance premiums. A similar bill, A-1511 (Oliver), is scheduled for a vote in the full Assembly on January 7. NJBIA opposes the bill. For more information, contact Christine Stearns at ext. 260.

School Funding. Legislation to fundamentally change New Jersey’s school funding formula was introduced January 3 in both the Assembly and the Senate and released by their respective appropriations committees on the same day. The bill would change the way school funding is distributed by ensuring extra funding follows economically disadvantaged students, regardless of where they live. The current formula directs extra funding to the 31 mostly urban “Abbott” school districts designated as poor by the New Jersey Supreme Court. The new formula would provide more aid to the suburban school districts that educate 49 percent of the State’s poor children. Additionally, the bill would require more than 100 school districts to use a significant portion of their school aid to reduce property taxes. For more information, contact Chris Emigholz at ext. 201.

Nominate Your Candidate for a New Good Neighbor Award by Feb. 4

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.

Meet the Governor's Key Staff, Feb. 29

Meet Governor Jon Corzine’s new Chief of Staff, Chief Counsel and Chief Policy Counsel at the first in a series of Meet the Decision Makers breakfast briefings, Feb. 29 at the Forsgate Country Club. Get the latest on key issues such as financial restructuring, the budget and healthcare reform and find out what plans the Governor has for the coming year. This is a great networking event! Register online now, or contact Katie Wittkamp at ext. 236 for more information.