The Senate Health Committee on May 15 took the first step towards health insurance reform by releasing legislation expanding coverage under FamilyCare, the State’s government-subsidized health insurance program for lower income children, and requiring parents to provide health coverage for their children. The measure, S-1557 (Vitale), would also enact numerous market reforms that have been championed by NJBIA. The bill now heads to the Senate Budget and Appropriations Committee for consideration.

The measure also would change insurance-plan pricing in the individual market to make coverage more affordable for younger purchasers. It would also reduce red tape in the small-employer market to cut down on administrative costs. And it would require greater transparency in pricing by requiring that the cost of riders and brokers' commissions be listed separately. NJBIA supports these reforms. For more information, contact Christine Stearns at ext. 260.

Bill Protecting UI Fund from State Budget Raids Clears Committee

Legislation that would prevent legislators from raiding the State’s Unemployment Insurance (UI) fund and other payroll-tax-funded programs was released May 15 by the Senate Labor Committee. The bill, SCR-60 (Sweeney, T. Kean), would constitutionally dedicate tax payments made to the Unemployment Insurance (UI) fund, Temporary Disability Insurance (TDI) fund, the Second-Injury fund, and numerous workplace training programs. Employers and employees both pay hundreds of millions of dollars a year in payroll taxes to support these programs. The bill would ensure that these payments can only be used for the purposes of these funds. NJBIA supports the measure.

For years, the State has diverted billions of dollars in fund revenues to its general fund. The diversions have served as one-shot revenue gimmicks to balance the State budget. Over the past 14 years, for instance, $4.7 billion in UI tax revenues were diverted, leaving the UI fund balance so low that it currently cannot pay future benefit claims without a payroll-tax hike or a cash infusion. Under SCR-60, such diversions would become unconstitutional. Legislators are also set to consider a separate bill on May 19, S-1698 (Buono), that would add $260 million to the UI fund so it can continue to pay claims. The cash infusion would prevent an automatic $350 million increase in employer payroll taxes. For more information, contact John Rogers at 209.

Business Leaders Call for Spending Reductions

NJBIA President Philip Kirschner joined other State business leaders on May 14 to call for a new State budget that spends less than this year’s budget. As the Legislature gets close to adopting a budget, the business leaders held a State House press conference to remind legislators of the importance of getting New Jersey’s fiscal affairs in order. Specifically, they said the Legislature should follow Governor Corzine's lead and pass a Fiscal 2009 budget which spends less than the current budget.

“For too long now, State spending has been out of control,” Kirschner said. “Tax increases and one-shot funding gimmicks have put New Jersey in a position where both businesses and the public have lost confidence in the ability of the State to responsibly handle their money. It is time to change the way we operate. We need to cap spending and start living within our means.” Kirschner was joined by Bob Franks, president of the HealthCare Institute of New Jersey, John Galandak, president of the Commerce & Industry Association of New Jersey, and Joan Verplanck, president of the New Jersey Chamber of Commerce.

Assembly Environment Panel Holds Hearing on Bottle Deposit Bill

Consumers would have to pay 10- to 20-cent deposits on beverage containers, and stores would be forced to set up elaborate redemption operations under a bottle-deposit bill being considered by the Assembly Environment Committee. A-121 (Vainieri-Huttle, Greenstein) would require a 10-cent deposit on all plastic and glass bottles and aluminum cans holding less than 24 ounces and a 20-cent deposit on containers holding between 24 ounces and 3 liters. The measure would cover juice, sports drinks, bottled waters, soda, wine and beer containers. The committee held a hearing on the bill May 12.

Under A-121, the NJ Department of Environmental Protection (DEP) would license and regulate privately owned redemption centers, where consumers and retailers could bring empty containers for refund. Retailers also would be required to accept up to 24 empty beverage containers per customer per transaction. The State would keep 75 percent of any unclaimed deposit revenues, while the other 25 percent would be redistributed proportionately to retailers and redemption centers.

NJBIA opposes the bill because it would impose tremendous costs on retailers and greatly inconvenience consumers but provide little environmental benefit. This is simply another unnecessary tax. Stores would have to purchase costly equipment for cleaning the bottles and absorb the cost of storing and transporting them. Furthermore, the Legislature just imposed a new trash tax to increase funding for county recycling programs. For more information, contact David Brogan at ext. 236.

Committee Backs Recognition for Environmentally Responsible Companies

Legislation that would provide official recognition to environmentally responsible businesses was released May 12 by the Assembly Environment Committee. The bill, A-795 (Gusciora, Fisher), would direct the State’s environmental commissioner to create a list of environmentally responsible businesses. The DEP would award certificates of recognition to companies that have exhibited exemplary attention to, and concern for, the environment. NJBIA supports the bill. For more information, contact David Brogan at ext. 236.

NJBIA Government Affairs Publications Available Now Online

NJBIA produces many publications to alert our member companies to the legislative and regulatory actions in Trenton that impact their businesses. Each publication is a useful guide designed to help your company keep up with the latest developments in Trenton and stay in compliance.  Access publications online

How to Survive the Recession, May 21

Michael Santoli, author of Barron's "Streetwise" column and one of the brightest analysts in business journalism today, will tell us what to expect from the current economic downturn, at the  NJBIA-Fidelity Investments Economic Forum: Surviving the Slowdown - Managing Costs in Tough Times,  May 21 at the Sheraton Hotel in Eatontown. How long will the downturn be? How will NJ be impacted? When will the market turmoil end? You will also hear from three of NJ's top business executives, who will present practical cost-saving tips for surviving the slowdown. Register online now, or contact Stacy Wichner at ext. 213 for more information.