December 10, 2009 - Tracking Legislation and Other Items Important to the NJ Business Community
ENVIRONMENT
Clarifying Covenant Not to Sue – A-4265 (McKeon/D-27): Assembly passed 76-0. This bill corrects an inconsistency in the law arising from the enactment of the Site Remediation Reform Act (SRRA) and ensures that a covenant not to sue may be issued in certain circumstances. The lack of a covenant not to sue could create impediments to cleanup, redevelopment and transactions with respect to contaminated sites.
GOVERNMENT REFORM
Senate Community and Urban Affairs Committee Bidding Requirement Exemptions – S-2316 (Bateman/R-16): Committee passed, referred to the Senate Budget and Appropriations Committee. Authorizes certain state authorities and local and county governments to purchase goods or services at a cost below that offered under state contracts without resorting to advertising for bids. This would provide state authorities, as well as local and county governments, the flexibility to obtain goods and services at lower prices than those available under state contracts. Additional savings would also be achieved by avoiding costs and delays related to the bidding process.
Senate Community and Urban Affairs Committee S-2316 Vote: Rice, Ronald L. (Chairman) – Yes; Redd, Dana L. (Vice Chair) – Yes; Connors, Christopher J. – Yes; Haines, Philip E. – Yes; Van Drew, Jeff – Yes
Qualified Purchasing Agents – A-1645 (McKeon/D-27; Scalera/D-36; Prieto/D-32): The Governor conditionally vetoed the bill on November 23. Assembly passed 51-25, concurring with the Governor’s recommendations. Governor Corzine stated that he supports the concept of the legislation which requires municipalities to have qualified purchasing agents. The Governor however conditionally vetoed the bill because it “does not adequately address the substantive issues raised throughout the legislative process by the Division of Local Government Services." The Chamber believes that in the complex world of local public contracts and municipal finances, requiring government entities to have qualified purchasing agents is prudent. This provides added protection to the taxpayers of municipalities, which includes employers and residents.
LABOR
Protecting the UI Fund – SCR-60 (Sweeney/D-3; Kean, T./R-21; Burzichelli/D-3; Albano/D-1; DeCroce/R-26; Biondi/R-16): Assembly passed 77-0, filed with the Secretary of State. This measure proposes an amendment to the New Jersey Constitution that prohibits the state from collecting contributions from employers or employees by means of assessment on wages for any purpose other than to provide employee benefits. The State Chamber believes that this concurrent resolution will assist both employers and employees by keeping our Unemployment Insurance Trust Fund (UI) and Temporary Disability Insurance Benefit Fund (TDI) and various workers’ compensation funds solvent and assure that these funds are used for their intended purpose.
Senate Labor Committee Mandating Prevailing Wage on Energy Projects – S-3028 (Buono/D-18): Committee passed. Requires the state Board of Public Utilities to use prevailing wage on board-assisted projects, but does not require adoption of rules and regulations regarding that mandate. The State Chamber believes there must be defined regulations issued by the Board before implementation. This legislation will ultimately drive up costs for energy efficiency or renewable energy projects by mandating higher union-scale prevailing wages to contractors.
Senate Labor Committee S-3028 Vote: Madden, Fred H., Jr. (Chairman) – Yes; Cunningham, Sandra B. (Vice Chair) – Yes; Beach, James – Yes; Doherty, Michael J. – No; Kean, Sean T. – Yes; Sarlo, Paul A. – Yes
Mandating Prevailing Wage on Energy Projects – A-4293 (DeAngelo/D-14): Assembly passed 45-26. Requires the state Board of Public Utilities to use prevailing wage on board-assisted projects, but does not require adoption of rules and regulations regarding that mandate. The State Chamber believes there must be defined regulations issued by the Board before implementation. This legislation will ultimately drive up costs for energy efficiency or renewable energy projects by mandating higher union-scale prevailing wages to contractors.
Senate Labor Committee Mandating a Registered Apprenticeship Program – S-3094 (Madden/D-4): Committee passed. Requires any contractor or subcontractor bidding on any public work to participate in a registered apprenticeship program for each separate trade involved on the job, mandating the use of a union-only workforce. The State Chamber believes apprenticeship requirements do not protect the interests of taxpayers – it will limit competition by discouraging or even prohibiting a great deal of contractors from bidding on public projects. This legislation will ultimately drive up costs by subjecting contractors to union hiring and work rules.
Senate Labor Committee S-3094 Vote: Madden, Fred H., Jr. (Chairman) – Yes; Cunningham, Sandra B. (Vice Chair) – Yes; Beach, James – Yes; Doherty, Michael J. – No; Kean, Sean T. – No; Sarlo, Paul A. - Yes
Senate Labor Committee Mandating Prevailing Wage for Certain Non-Rental Multi-Family Housing Projects – S-3096 (Sweeney/D-3): Committee passed. Extends prevailing wage requirements for construction and rehabilitation work performed under the New Jersey Housing and Mortgage Finance Agency loans to non-rental multi-family housing projects. The State Chamber opposes mandates that expand prevailing wage requirements because of the increased financial burden such mandates have on the employer community and taxpayers. These artificially inflated wages increase labor costs without a corresponding increase in productivity.
Senate Labor Committee S-3096 Vote: Madden, Fred H., Jr. (Chairman) – Yes; Cunningham, Sandra B. (Vice Chair) – Yes; Beach, James – Yes; Doherty, Michael J. – No; Kean, Sean T. – Yes; Sarlo, Paul A. - Yes
Mandating Prevailing Wage for Maintenance-Related Projects – A-4268 (Cryan/D-20; Quijano/D-20): Assembly passed 46-23. Extends prevailing wage requirements to any work on a maintenance-related project that exceeds the scope of work and capabilities of in-house maintenance personnel, and has an aggregate value exceeding $50,000. The State Chamber opposes mandates that expand prevailing wage requirements because of the increased financial burden such mandates have on the employer community and taxpayers. These artificially inflated wages increase labor costs without a corresponding increase in productivity.
LEGAL
Senate Law, Public Safety and Veterans’ Affairs Committee Restricting Employer Hiring Practices – S-12 (Cunningham/D-31): Committee held. Prohibits all public and private employers from discriminating against ex-convicts and from denying a person a license or employment because the person has previously been convicted of a criminal offense. Employers should have the freedom to reject an applicant with a criminal record. This legislation will add a significant administrative burden and cost to the employer community and will ultimately increase the number of lawsuits that will be filed.
Upcoming Legislative Schedule The Senate has scheduled Group 4 Committees for 10 a.m. and Group 3 Committees for 1 p.m. on Monday, December 14. The Assembly has scheduled Committees at the call of the Speaker on Monday, January 4.
*Information Provided by the NJ State Chamber of Commerce.
