TRENTON WATCH
December 23, 2010
Tracking Legislation and Other Items Important to the Business Community:
ECONOMIC DEVELOPMENT
Expansion of BRRAG - S-2370 (Madden/D-4; Kyrillos/R-13): Senate passed 35-0. This bill broadens availability of the Business Retention and Relocation Assistance Grant (BRRAG) Program, which provides tax credits to businesses that retain jobs in New Jersey. Under this bill, businesses may be eligible to receive credits without requiring them to relocate jobs if they make a capital investment equal to or greater than the total value of the grants to be received. The bill increases the amount of the award for projects with a larger number of jobs retained. It also requires a net benefits test, in which potential grant recipients must prove that the state would see a net benefit from providing the tax credit - the projected tax revenue must be greater than the credits awarded under BRRAG. These changes will increase the utility of the program and help keep more jobs in state. Contact: Mary Ellen Peppard
Assembly Budget Committee
Business Incentive Enhancements - A-3353 (Coutinho/D-29; Watson Coleman/D-15; Fuentes/D-5; Lampitt/D-6; Quijano/D-20): Committee passed. This bill establishes the New Jersey Closing Fund, which authorizes the New Jersey Economic Development Authority to recommend, and the State Treasurer and Joint Budget Oversight Committee to approve, an award to projects that require additional resources to locate or remain in the State if these projects will significantly benefit the state. This bill is designed to address the competition that companies face from other states and to complement our existing business attraction and retention programs. Contact: Mary Ellen Peppard
Assembly Budget Committee A-3353 Vote: Greenwald, Louis D.(Chair) - Yes; Barnes, Peter J., III - Not Voting; Burzichelli, John J. - Yes; Chiusano, Gary R. - Yes; Chivukula, Upendra J. - Yes; Coutinho, Albert - Yes; Johnson, Gordon M. - Yes; Malone, Joseph R., III - No; O'Scanlon, Declan J., Jr. - Yes; Pou, Nellie - Yes; Quigley, Joan M. - Yes; Wolfe, David W. - No
Senate Budget and Appropriations Committee
Repealing UEZ Rebate Requirement - A-1559 (Lampitt/D-6; Coutinho/D-29; Evans/D-35; Riley/D-3; Quijano/D-20; Coughlin/D-19) & S-2132 (Van Drew/D-1; Whelan/D-2): Committee passed. This bill allows Urban Enterprise Zone (UEZ) certified businesses to receive sales tax exemptions on business purchases at the point of sale. Current law requires UEZ businesses with gross receipts exceeding $10 million to pay the sales tax and then apply for a rebate, rather than exempting the sale from tax at the point of sale. This onerous requirement discourages businesses from participating in the UEZ program. Contact: Mary Ellen Peppard
Senate Budget and Appropriations Committee A-1559/S-2132 Vote: Sarlo, Paul A.(Chair) - Yes; Addiego, Dawn Marie - Yes; Beach, James - Yes; Bucco, Anthony R. - Not Voting; Buono, Barbara - Yes; Cunningham, Sandra B. - Yes; Doherty, Michael J. - Yes; Greenstein, Linda R. - Yes; O'Toole, Kevin J. - Yes; Oroho, Steven V. - Yes; Ruiz, M. Teresa - Yes; Sweeney, Stephen M. - Yes; Van Drew, Jeff - Not Voting
Assembly Budget Committee
Expansion of Urban Transit Hub Tax Credit - A-3143 (Greenwald/D-6; Quijano/D-20; Lampitt/D-6; Ramos/D-33) & S-2183 (Norcross/D-5): Committee passed. Senate amended 35-1. These bills expand the Urban Transit Hub Tax Credit (UTHTCA) program, which allows a business to receive tax credits of up to 100 percent of its qualified capital investment in a business facility that is located in an urban transit hub and employs at least 250 persons at the facility. These bills extend eligibility for these credits to businesses in a mixed-use project comprising both a qualified business facility and a qualified residential project, neither of which by itself satisfies the total investment minimum of $50 million. The investment in each component of the mixed-use project must amount to at least $17.5 million, and the total amount invested in the mixed use project as a whole must be at least $50 million. Contact: Mary Ellen Peppard
Assembly Budget Committee A-3143 Vote: Greenwald, Louis D.(Chair) - Yes; Schaer, Gary S.(Vice Chair) - Not Voting; Barnes, Peter J., III - Yes; Burzichelli, John J. - Yes; Coutinho, Albert - Yes; Johnson, Gordon M. - Yes; Malone, Joseph R., III - Yes; O'Scanlon, Declan J., Jr. - Yes; Pou, Nellie - Yes; Quigley, Joan M. - Yes; Webber, Jay - No; Wolfe, David W. - Yes
Senate Budget and Appropriations Committee
New Jersey Angel Investor Tax Credit - S-2454 (Madden/D-4; Sarlo/D-36): Committee passed. This bill establishes credits against corporation business and gross income taxes for investing in emerging technology businesses in New Jersey. The corporation business and gross income tax credits equal ten percent of a taxpayer's qualified investment in an emerging technology company with fewer than 225 employees, of whom at least 75 percent are filling a position in New Jersey. The program is capped at $25 million per year. Contact: Mary Ellen Peppard
Senate Budget and Appropriations Committee S-2454 Vote: Sarlo, Paul A.(Chair) - Yes; Addiego, Dawn Marie - Yes; Beach, James - Yes; Bucco, Anthony R. - Not Voting; Buono, Barbara - Yes; Cunningham, Sandra B. - Yes; Doherty, Michael J. - Yes; Greenstein, Linda R. - Yes; O'Toole, Kevin J. - Yes; Oroho, Steven V. - Yes; Ruiz, M. Teresa - Yes; Sweeney, Stephen M. - Yes; Van Drew, Jeff - Not Voting
Senate Budget and Appropriations Committee
Business and Higher Education Partnerships - S-2398 (Madden/D-4; Sarlo/D-36; Buono/D-18): Committee passed. This bill directs the New Jersey Economic Development Authority to facilitate the exchange of information and exploration of collaborations among the higher education and business communities in order to enhance innovation in the state. Contact: Mary Ellen Peppard
Senate Budget and Appropriations Committee S-2398 Vote: Sarlo, Paul A.(Chair) - Yes; Addiego, Dawn Marie - Abstain; Beach, James - Yes; Bucco, Anthony R. - Not Voting; Buono, Barbara - Yes; Cunningham, Sandra B. - Yes; Doherty, Michael J. - Abstain; Greenstein, Linda R. - Yes; O'Toole, Kevin J. - Abstain; Oroho, Steven V. - Abstain; Ruiz, M. Teresa - Yes; Sweeney, Stephen M. - Yes; Van Drew, Jeff - Not Voting
Assembly Budget Committee
Modernizing Plan Approvals - S-483 (Lesniak/D-20): Committee passed. Senate passed 33-4. This bill amends the Municipal Land Use Law by expanding the availability of General Development Plan approvals to projects with a nonresidential floor area of 150,000 square feet or more or with 100 residential dwelling units or more. It is for sites of 100 acres or less in smart growth areas. This change reflects the current necessity for vertical development. Contact: Mary Ellen Peppard
Assembly Budget Committee S-483 Vote: Greenwald, Louis D.(Chair) - Yes; Schaer, Gary S.(Vice Chair) - Not Voting; Barnes, Peter J., III - Yes; Burzichelli, John J. - Yes; Coutinho, Albert - Yes; Johnson, Gordon M. - Yes; Malone, Joseph R., III - Yes; O'Scanlon, Declan J., Jr. - Yes; Pou, Nellie - Yes; Quigley, Joan M. - Yes; Webber, Jay - Yes; Wolfe, David W. - Yes
EDUCATION
Education Cost Savings - A-1637 (Wagner/D-38; Rudder/R-8; Voss/D-38; Addiego/R-8): Assembly passed 75-0. Senate passed 28-2 and sent to the Governor. This bill permits the board of education of any school district to sell advertising space on the outside of school buses owned or leased by the school district. The bill requires that 50 percent of revenues generated by the sale must be used to offset the fuel costs of providing transportation services to students, and the remaining 50 percent is to be used to support educational programs and services. Advertisements for tobacco, alcohol or political advocacy would be prohibited, in addition to any other advertisements that the Commissioner of Education considers inappropriate. Contact: Michael Egenton
ENERGY
Assembly Telecommunications and Utilities Committee
Solar Energy - A-3139 (Quijano/D-20; DeAngelo/D-14; Ramos/D-33; Wagner/D-38): Committee passed. This bill permits development of solar and photovoltaic energy facilities and structures over landfills and quarries, including the Pinelands, permitting the expansion of renewable solar energy resources in areas which are not actively being used. Contact: Michael Egenton
Assembly Telecommunications and Utilities Committee A-3139 Vote: Chivukula, Upendra J.(Chair) - Yes; DeAngelo(Vice Chair) - Yes; Bucco, Anthony M. - Not Voting; Burzichelli, John J. - Yes; Coutinho, Albert - Yes; Mainor, Charles - Yes; Rible, David P. - Yes
ENVIRONMENT
Senate Budget & Appropriations Committee
Stormwater Management - S-1815 (Smith, B./D-17): Committee passed. This bill would permit Ocean County, or the Ocean County Utilities Authority, to establish, provide and maintain a stormwater utility that creates a management system for stormwater runoff in the county. This bill levies an assessment on businesses in addition to the permit fee already imposed. Contact: Michael Egenton
Senate Budget & Appropriations Committee S-1815 Vote: Sarlo, Paul A.(Chair) - Yes; Stack, Brian P.(Vice Chair) - Yes; Beach, James - Yes; Bucco, Anthony R. - No; Buono, Barbara - Yes; Cunningham, Sandra B. - Yes; Doherty, Michael J. - No; Greenstein, Linda R. - Yes; O'Toole, Kevin J. - No; Oroho, Steven V. - No; Pennacchio, Joseph - No; Ruiz, M. Teresa - Yes; Van Drew, Jeff - No
Senate Budget & Appropriations Committee
Stormwater Management - S-1856 (Smith, B./D-17): Committee passed. This bill would authorize the Ocean County Planning Board, in conjunction with each municipality within the Barnegat Bay watershed, to develop a stormwater and nonpoint source pollution management plan for the watershed. This bill levies an assessment on businesses in addition to the permit fee already imposed. Contact: Michael Egenton
Senate Budget & Appropriations Committee S-1856 Vote: Sarlo, Paul A.(Chair) - Yes; Stack, Brian P.(Vice Chair) - Yes; Beach, James - Yes; Bucco, Anthony R. - No; Buono, Barbara - Yes; Cunningham, Sandra B. - Yes; Doherty, Michael J. - No; Greenstein, Linda R. - Yes; O'Toole, Kevin J. - No; Oroho, Steven V. - No; Pennacchio, Joseph - No; Ruiz, M. Teresa - Yes; Van Drew, Jeff - No
GOVERNMENT REFORM
Arbitration Reform- A-3393 (Greenwald/D-6; Quigley/D-32; Chivukula/D-17; Evans/D-35, O'Scanlon/R-12): Assembly passed 74-1. Senate passed 40-0. Governor signed into law. This bill provides a cap of 2 percent on arbitration awards that will be applied to all salary items, such as the cost of acros- the-board and cost-of-living increases, step increment payments and longevity pay. There are no exceptions for additional non-salary economic items moving forward. The bill also caps arbitrator compensation at $1,000 per day and $7,500 per case to incentivize speedy resolution of arbitration cases. Contact: Michael Egenton
Taxpayer Savings - S-2012 (Doherty/R-23; Allen/R-7): Senate passed 36-0. This bill allows gross income tax refunds to be credited against a taxpayer's delinquent local property taxes in the same manner as is currently allowed for homestead property tax rebates and credits claimed by delinquent property tax taxpayers. Contact: Michael Egenton
Unfunded Mandates - S-2208 (Sarlo/D-36; Allen/R-7; Scalera/D-36; Burzichelli/D-3; McKeon; D/27; Rumana/R-40; Webber/R-26): Passed in Senate 36-0 and sent to Governor. This bill would allow the New Jersey Conference of Mayors, the New Jersey State League of Municipalities, the New Jersey School Boards Association, the New Jersey Association of Counties, the New Jersey Council of County Colleges, the Garden State Coalition of Schools, or the New Jersey Association of Fire Districts to file a complaint with the Council on Local Mandates concerning a potential unfunded mandate. The bill also would allow local fire districts to file complaints. This bill is to assist local governments in holding down costs, which will ultimately result in lower property taxes. Contact: Michael Egenton
HEALTH
Increased Healthcare Costs - A-1997 (Conaway/D-7; Quigley/D-32): Assembly passed 63-10-1. This bill permits an individual covered by certain managed care plans to receive covered services from a network provider without obtaining written referral from a primary care provider. This process bypasses any notice to the carrier, does not clearly articulate how enforcement will take place and will raise the cost of coverage. Contact: Michael Egenton
LABOR
Prohibiting Credit Checks - S-1791 (Turner/D-15; Gill/D-34): Senate passed 25-12. This bill prohibits an employer from requiring a credit check on a current or prospective employee as a condition of employment, unless the employer is required to do so by law, or reasonably believes that an employee has engaged in a specific activity that is financial in nature and constitutes a violation of law. The State Chamber believes employers should not be restricted in using credit check criteria regarding candidates who seek employment. Contact: Michael Egenton
Employee Leasing Companies - S-2164 (Sweeney/D-3): Senate passed 37-0. This bill makes various changes to several laws that affect the regulation and business operations of employee leasing companies, business entities that manage human resources, employee benefits, health insurance, and payroll and workers' compensation for small businesses. Contact: Michael Egenton
LEGAL
Assembly Judiciary Committee
New Jersey False Claims Act - A-3304 (Conaway/D-7): Committee passed. This bill clarifies the effective date of the New Jersey False Claims Act, which imposes civil penalties on any person who submits a claim to the State that he knows or should know is false. The bill provides that the False Claims Act would apply to any claims that accrued before March 13, 2008 (the effective date of the law) as long as the False Claims civil action is brought within the statute of limitations. Contact: Michael Egenton
Assembly Judiciary Committee A-3304 Vote: Barnes, Peter J., III - Yes; Quijano, Annette(Vice Chair) - Yes; Caputo, Ralph R. - Yes; Carroll, Michael Patrick - No; Casagrande, Caroline - No; Greenwald, Louis D. - Not Voting; Gusciora, Reed - Yes
REGULATION
Senate Budget and Appropriations Committee
Streamlining Regulations - S-6 (Sarlo/D-36; Kyrillos/R-13): Committee passed. This bill directs State and local agencies that issues permits related to economic development to streamline the process by which the permits are issued. The bill requires the agencies to identify which permits can be administered through expedited processes and which permits can be eliminated. Contact: Michael Egenton
Senate Budget & Appropriations Committee S-6 Vote: Sarlo, Paul A.(Chair) - Yes; Stack, Brian P.(Vice Chair) - Yes; Beach, James - Yes; Bucco, Anthony R. - Yes; Buono, Barbara - No; Cunningham, Sandra B. - Yes; Doherty, Michael J. - Yes; Greenstein, Linda R. - No; O'Toole, Kevin J. - Yes; Oroho, Steven V. - Yes; Pennacchio, Joseph - Yes; Ruiz, M. Teresa - Yes; Van Drew, Jeff - Yes
TAX
Senate Budget and Appropriations Committee & Assembly Budget Committee
Corporate Business Tax Relief - S-1646 (Oroho/R-24; Sweeney/D-3) & A-1676 (Greenwald/D-6; Milan/D-1; Spencer/D-29; Chiusano/R-24; Pou/D-35; Webber/R-26): Committees passed. These bills provide a single sales factor allocation formula for New Jersey businesses. New Jersey currently determines the portion of a company's income that is subject to New Jersey tax based on the company's property, payroll and sales in New Jersey. The presence of property and payroll in the allocation factor creates a disincentive for capital investment and job creation in New Jersey. These bills remove the disincentive by eliminating property and payroll from the allocation factor and assigning a 100 percent weighting to the sales factor. Contact: Mary Ellen Peppard
Senate Budget and Appropriations Committee S-1646 Vote: Sarlo, Paul A.(Chair) - Yes; Addiego, Dawn Marie - Yes; Beach, James - Yes; Bucco, Anthony R. - Not Voting; Buono, Barbara - Yes; Cunningham, Sandra B. - Yes; Doherty, Michael J. - Yes; Greenstein, Linda R. - Yes; O'Toole, Kevin J. - Yes; Oroho, Steven V. - Yes; Ruiz, M. Teresa - Yes; Sweeney, Stephen M. - Yes; Van Drew, Jeff - Not Voting
Assembly Budget Committee A-1676 Vote: Greenwald, Louis D.(Chair) - Yes; Schaer, Gary S.(Vice Chair) - Not Voting; Barnes, Peter J., III - Yes; Burzichelli, John J. - Yes; Coutinho, Albert - Yes; Johnson, Gordon M. - Yes; Malone, Joseph R., III - Yes; O'Scanlon, Declan J., Jr. - Yes; Pou, Nellie - Yes; Quigley, Joan M. - Yes; Webber, Jay - Yes; Wolfe, David W. - Yes
Assembly Budget Committee
Tax Relief for Small Business - A-3535 (Greenwald/D-6; Barnes/D-18; Johnson/D-37; Pou/D-35; McHose/R-24; Webber/R-26): Committee passed. This bill provides for the consolidation of certain business-related categories of income defined under the New Jersey gross income tax. This consolidation allows taxpayers who generate income from different types of businesses to offset gains from one type of business with losses from another. This bill also provides for the carryforward of net losses for up to 20 years under the New Jersey gross income tax. These changes modernize New Jersey's income tax and provide increased flexibility to small businesses whose business owners' pay their taxes through the personal income tax return (S-Corps, LLC's, LLP's, sole proprietorships or partnerships). Contact: Mary Ellen Peppard
Assembly Budget Committee A-3535 Vote: Greenwald, Louis D.(Chair) - Yes; Schaer, Gary S.(Vice Chair) - Not Voting; Barnes, Peter J., III - Yes; Burzichelli, John J. - Yes; Coutinho, Albert - Yes; Johnson, Gordon M. - Yes; Malone, Joseph R., III - Yes; O'Scanlon, Declan J., Jr. - Yes; Pou, Nellie - Yes; Quigley, Joan M. - Yes; Webber, Jay - Yes; Wolfe, David W. - Yes
Call the State Chamber Government Relations Department at (609) 989-7888 with questions or comments.
