CCSNJ Legislative Update - May 12, 2011

Chamber Supports Unemployment Insurance Tax Reform Legislation

The Chamber testified today before the Senate Labor Committee in support of legislation that will reduce the impact of future unemployment insurance tax increases for New Jersey employers.

S-2730 (Madden/Doherty)/A-3819 (Egan/ Evans/Pou/Wisniewski) were voted out of Committee unanimously. The bills make two important changes that will mitigate future UI tax increases. First, they reduce unemployment insurance tax increases that were to go into effect in FY2012 (which begins July 1, 2011) by charging employers the tax based on schedule D (instead of schedule E) in 2012 and removing the ten percent surcharge on the highest tax rates (schedule E) that will be effective in FY2013. Without these changes, employers were facing an increase of approximately $300 per employee annually. If signed into law, employers can expect to pay approximately an additional $100 - $130 per employee as opposed to approximately $300 per employee.

S-2730 and A-3819 also sets the Unemployment Insurance Trust Fund reserve ratios at FY2003 levels once the fund is solvent, a change that will result in more stability in the UI tax rates.

Click here for a copy of the Chamber’s testimony to the Senate Labor Committee.

The Chamber will continue to support legislation that will help reduce the tax burden on businesses in New Jersey and create a better business climate in the state.

NJ Department of Banking and Insurance Commissioner Addresses Chamber

On Wednesday, New Jersey Department of Banking and Insurance Commissioner Thomas Considine addressed the Chamber at a Meet the Policymakers event. During his remarks, Commissioner Considine discussed several public policy issues important to business owners in Southern New Jersey and changes within his Department that increase efficiency and responsiveness to regulated businesses.

The Commissioner pointed out that, as a result of the work of the Red Tape Review Commission, regulations published in the New Jersey Register have been greatly reduced. Within the Department of Banking & Insurance, 22 regulations have been repealed. Further, review time has been reduced by 30%. The Department continues to work on legislation that make important changes within the insurance and banking industries that will make our State a better place in which to do business.

Commissioner Considine expressed concern about the implementation of the Patient Protection and Affordable Care Act (PPACA) in New Jersey. This federal legislation was signed into law last year and will greatly change the health insurance landscape in the next few years. Commissioner Considine discussed the implementation of a Health Benefit Insurance Exchange in New Jersey, a requirement of the PPACA that would create a marketplace for individuals and employers to purchase health insurance coverage. He noted the importance of the state establishing an Exchange, as opposed to allowing the federal government to establish the Exchange.

The Chamber’s Meet the Policymakers series allows Chamber members to meet with senior officials in the Christie Administration and to hear in-depth information about public policy issues impacting businesses in New Jersey. The next Meet the Policymakers event is scheduled for May 25, 2011 with NJ Department of Environmental Protection Commissioner Bob Martin. See below for further information and to register.

If you have any questions or thoughts on any of the issues covered in this edition of Legislative Update, please contact Christopher R. Brown, CAE, Director, Government Relations at cbrown@chambersnj.com or 856-424-7776 ext. 127.

*The opinions and statements expressed in this newsletter are not necessarily the views of this newsletter’s sponsors.

CCSNJ Legislative Update - May 5, 2011

Assembly Labor Committee Votes Out Unemployment Insurance Tax Reform

The Assembly Labor Committee voted out legislation on May 5, 2011 that will reduce the impact of an unemployment insurance tax increase for New Jersey employers and make reforms to unemployment tax rates in the future.

The bill, A-3819 (Egan), makes two important changes that will mitigate the tax increase. First, the bill reduces unemployment insurance tax increases in FY2012 and FY2013 so that employers will pay the tax based on schedule D instead of schedule E. The bill will also remove a ten percent surcharge on the highest tax rates that would have begun in FY2013. Without this change employers could see an increase of approximately $300 per employee annually.

A-3819 also sets the Unemployment Insurance Trust Fund reserve ratios back to FY2003 levels once the fund is solvent. The Department of Labor and Workforce Development estimates that the fund will reach solvency in FY2017. The unemployment insurance tax rates for employers have been extremely volatile in recent years and small changes in the Unemployment Insurance Trust Fund level have triggered increased taxes for employers. Returning the ratios back to the FY2003 level once solvency is reached will allow employers to experience more stability in their unemployment insurance tax rates.

A-3819 was voted out of Committee unanimously.

The Chamber will continue to support legislation that will help reduce the tax burden on businesses in New Jersey and create a better business climate in the state.

CCSNJ Comments on Proposed DEP Waiver Rule

The Chamber submitted comments to the NJ Department of Environmental Protection (DEP) in support of the proposed Waiver of Department Rules in the rulemaking process. This rule change would allow the DEP to consider a rule waiver if at least one of the following criteria were met:

· A rule conflicts with another DEP rule.

· Strict rule compliance creates a burdensome situation.

· A rule waiver creates a net environmental benefit.

· In the event a public emergency takes place.

This proposed rule change will give the DEP more flexibility in making permitting decisions, while maintaining its oversight of environmental protection policy in the state.

Click here to read a copy of the comment letter to the NJ Department of Environmental Protection.

If you have any questions or thoughts on any of the issues covered in this edition of Legislative Update, please contact Christopher R. Brown, CAE, Director, Government Relations at cbrown@chambersnj.com or 856-424-7776 ext. 127.

*The opinions and statements expressed in this newsletter are not necessarily the views of this newsletter’s sponsors.

CCSNJ Legislative Alert - April 29, 2011

Governor Signs Business Tax Relief Into Law

Yesterday, Governor Chris Christie signed into law legislation that will provide tax relief to businesses in New Jersey. The two pieces of legislation, S-2753 and S-2754, make changes to the New Jersey tax code that will greatly benefit the business community and help to reduce the onerous tax burden on businesses. S-2753 changes how the state computes the Corporate Business Tax (CBT). Before passage of this legislation New Jersey computed the CBT based on sales, payroll size and in-state property. The new law will now base computing of the CBT solely on sales. The bill also creates a modified sales fraction formula for airlines. The legislation was sponsored in the Senate by Senators Jim Whelan, Fred Madden, and Steven Oroho. Assembly sponsors of the legislation include Assemblymen Lou Greenwald and Matthew Milam and Assemblywomen Grace Spencer and Nellie Pou.

The second bill, S-2754, changes the tax code to allow businesses incorporated as sole proprietorships, LLCs, partnerships and S corporations (that is, those who report their business income on their personal income on their tax return) to “carry forward” business losses in order to reduce tax liability in the current tax year. A business owner can potentially “carry forward” these losses for up to 20 years. Additionally, businesses would be allowed to offset losses in one category against a gain in another income category. Sponsors of S-2754 in the Senate include Senators Barbara Buono, Linda Greenstein, and Steven Oroho. Sponsors in the Assembly were Assemblymen Lou Greenwald, Peter Barnes, Gordon Johnson and Assemblywoman Nellie Pou.

The Chamber applauds the legislature and Governor Christie for coming together to enact business-friendly legislation that is greatly needed in these difficult economic times. The Chamber continues to support legislation that will help reduce the tax burden on businesses in New Jersey and create a better business climate in the state which will, in turn, create more jobs.

Click here to read a copy of the Governor’s news release on this bill signing.

If you have any questions or thoughts on any of the issues covered in this edition of Legislative Update, please contact Christopher R. Brown, CAE, Director, Government Relations at cbrown@chambersnj.com or 856-424-7776 ext. 127.

*The opinions and statements expressed in this newsletter are not necessarily the views of this newsletter’s sponsors.

CCSNJ Legislative Alert - April 15, 2011

Chamber Joins Amicus Brief on School Funding Issue

The Chamber joined other business, medical and municipal groups in filing an amicus brief with the Supreme Court of New Jersey on April 14, 2011 regarding the Court’s pending decision on school funding (Abbott v. Burke). The parties to the brief submit that the Supreme Court should consider the constitutionality of the current levels of education funding within the context of the severe economic and fiscal crisis facing our state and nation.

The brief outlines five major arguments relating to the impacts if the Court rules that the FY2011 budget does not provide a “thorough and efficient education” as required by previous Abbott rulings made by the Court. Such a rule could force the state to spend an additional $1.6 billion in the current year’s budget (in addition to the nearly $7 billion already budgeted). Among the concerns contained in the brief is the impact such a funding requirement would have upon the tenuous economic recovery and, therefore the business community, as well as the impacts of further cuts in many programs, property tax relief, municipal aid, higher education, and hospitals. Given the difficult economic and fiscal circumstances of New Jersey the Chamber believes it is imperative that the Court weigh the fiscal realities that such a decision would create.

The New Jersey Supreme Court is expected to rule on this case in the very near future.

Chamber Member Testifies on OT Regulations Before Department of Labor & Workforce Development

On Friday, April 15 former Chamber Board of Directors member Patricia A. Smith, Esq., Partner, Ballard Spahr, LLC presented testimony to the Department of Labor and Workforce Development’s Division of Wage and Hour Compliance on behalf of the Chamber on the Department’s proposed overtime regulations. The purpose of presenting the testimony is to support a proposed rule change to make New Jersey’s overtime standards consistent with federal regulations. The Chamber supports this regulatory change as it would clarify the rules governing overtime pay for employees, making it easier for businesses to comply and will avoid confusion in the compensation of employees. This rule change will also make it easier for companies that do business in multiple states by creating a consistency in the treatment of overtime requirements.

Click Here to view a copy of the testimony.

Senator Jim Beach Addresses State Affairs Committee

On Tuesday, April 12 Senator Jim Beach (D-6) addressed the Chamber’s State Affairs Committee. Senator Beach, Chairman of the Senate Military and Veterans’ Affairs Committee and a member of the Senate Budget and Appropriations and Senate Labor Committees, discussed a wide range of policy issues the legislature is currently considering, including the budget debate taking place between the legislature and Governor Christie. He noted that the 2011 budget year is not as bleak compared with the 2010 budget and that several funding areas had improved, including state aid to schools and aid to municipalities. Senator Beach also commented that while some legislators viewed the business tax cut proposals as a “loss of revenue,” he sees them as “common sense.”

Senator Beach also discussed his thoughts on Governor Christie. He gave the governor high marks for changing the conversation in Trenton and noted that “you can’t spend money you don’t have and can’t borrow.” The Senator was critical of some of the cuts proposed by the administration, including cuts to women’s health programs, children’s programs and veteran’s programs.

The State Affairs Committee meets eight times per year and is an opportunity for Chamber members to meet with members of the State Legislature and the Governor's Cabinet. Chamber members are updated at each meeting on current legislative issues as well as creating opportunities to network with other Chamber members.

Click Here to sign up for the Chamber’s State Affairs Committee.

If you have any questions please contact Christopher R. Brown, CAE, Director, Government Relations at cbrown@chambersnj.com or (856) 424-7776 ext. 127.

The opinions and statements expressed in this newsletter are not necessarily the views of this newsletter’s sponsors.

CCSNJ Legislative Alert - March 16, 2011

Chamber Supports Governor Christie’s Proposed Budget

Yesterday the Chamber testified before the Senate Budget Committee on the Fiscal Year 2012 State Budget proposed by the Christie Administration. Chamber Executive Vice President & COO Kathleen A. Davis presented testimony at Camden Community College, Blackwood. She focused her remarks on the Chamber’s support for the proposals to change the State tax code as well as confront the continuing problems of fiscal stability in State government.

The Chamber supports changes in the following business tax provisions in the FY 2012 State Budget:

· Allowing small businesses to consolidate business income and to carry forward their losses consistent with Federal government treatment of these taxes.

· Increasing the research and development tax credit from 50% to 100%.

· Reducing the minimum tax on S-corporations by 25%.

· Exempting from the sales tax the installation and support of electronically delivered business software from the sales tax.

· Raising the threshold for the estate tax to $1 million.

· Allowing for the full phase out of the Transitional Energy Facility Assessment (TEFA), this was supposed to expire ten years ago.

In addition the Chamber also is in support of the following initiatives:

· Doubling the funding for the Technology Business Tax Certificate Transfer program.

· Maintaining the funding level of the BEIP program.

· Providing additional funding for the Brownfield Site Reimbursement Fund.

The Chamber believes that implementing these initiatives will make improvements in the business climate in New Jersey and create an environment to spur economic growth and create jobs.

The Chamber also testified to the importance of a sound State government and a stable fiscal environment. Ms. Davis noted that the cost of providing public employee benefits continues to be a serious issue facing state governments, including New Jersey. The Chamber was an early advocate of the need to bring State government employee benefits in line with those offered by the private sector. To that end, the Chamber has focused efforts to provide State officials with a plan to reduce State government spending and end the trend to raise taxes to cover these ever increasing expenses. The Chamber supports the pension reforms in the Governor’s budget, including changing the pension benefit calculation to n/65 from n/55.

The Chamber also testified in support of the Governor’s initiative to implement the Performance Budgeting initiative which aligns budget priorities with an agencies’ mission. The Chamber strongly supports the need to focus on achieving results and measuring performance data which has long been a model in the private sector. Ms. Davis also recognized the work of Lieutenant Governor Kim Guadagno in helping to improve the business climate in New Jersey. She highlighted the Lieutenant Governor’s work in implementing the recommendations of the Red Tape Review Commission, the opening of the Business Action Center and Ms. Guadagno’s personal outreach to companies, which is changing the perception of New Jersey being a more business-friendly state.

The Chamber will continue to work with the Governor and State Legislature to implement these proposals and pass a budget that recognizes the economic realities of the State and provide much-needed assistant to the New Jersey business community.

Click here to view a copy of the testimony.

If you have any questions please contact Christopher R. Brown, CAE, Director, Government Relations at cbrown@chambersnj.com or (856) 424-7776 ext. 127.

The opinions and statements expressed in this newsletter are not necessarily the views of this newsletter’s sponsors.

CCSNJ Legislative Alert - February 25, 2011

Governor Christie Presents Fiscal Year 2012 Budget Proposal

Yesterday, Governor Christie presented a $29.4 billion budget proposal for Fiscal Year 2012 which cuts real spending by 2.6%, a reduction in government spending for the second consecutive year. His budget establishes priorities and funds those priorities based on revenue that is available and expected.

In his Budget Address, Governor Christie stated that, “Creating jobs is the top priority of this Administration, which is why tax cuts that help businesses grow and expand are a priority in the budget.”

Governor Christie proposes the following changes:

· Double New Jersey’s Research and Development Tax credit to encourage those in the high tech and bio-tech industries to craft their next great discovery;

· Allow for loss carry-forward relief for small businesses;

· Reduce the minimum S-corporation business tax by 25%;

· Exempt electronically delivered business software from the sales and use tax;

· Phase out the Technology Energy Facility Assessment;

· Raise the death tax exemption for families and small businesses, and;

· Increase funding for economic development programs.

The Governor also said the deficit attributed to Health and Pension Benefits for state and local employees will increase to $183 billion if there are no changes made to the current system and called for a resolution of the crisis by mid-March. The Chamber fully supports reform to the current system and has testified on many occasions over the past five years.

Other highlights of the Governor’s proposal include increases in hospital funding by $20 million and education funding by $250 million.

The Chamber is pleased to support many aspects of the Governor’s budget proposal and looks forward to working with him, his Administration and the Legislature to advance key pieces of legislation to continue the growth and expansion of the business community.

To view the full text of the Governor’s Address, click here.

For additional information on the issues covered in this edition of Legislative Update, please contact Christopher R. Brown, CAE, Director, Government Relations at cbrown@chambersnj.com or (856) 424-7776 ext. 127.

*The opinions and statements expressed in this newsletter are not necessarily the views of this newsletter’s sponsors.

CCSNJ Legislative Update - February 18, 2011

Governor to Hold Town Hall Meeting February 24 in West Deptford

Governor Chris Christie will hold a town hall meeting in West Deptford on Thursday, February 24^th. Chamber members are invited to attend and we encourage you to pass this invitation along to your friends, family, and neighbors for this open public forum with the Governor.

In order to ensure adequate seating for attendees, please RSVP by clicking HERE. (Please do not respond to this email with your attendance plans). Seating is on a first come, first serve basis.

WHAT: Town Hall Meeting with Governor Christie

WHEN: Thursday, February 24^th, 2011

Doors Open at 1:30 PM; Program Begins at 2:00 PM

WHERE: Pope John Paul II Learning Center (Gym)

1210 Hessian Ave, West Deptford, NJ 08093

Chamber Supports Opportunity Scholarship Act

The Chamber submitted a statement in support of A-2810 (Fuentes/Schaer) to the Assembly Commerce and Economic Development Committee, which establishes a pilot program in the Department of Treasury providing tax credits to entities contributing to scholarships for low-income children.

It is widely recognized that New Jersey has among the highest spending per pupil costs in the country, with no corresponding educational improvement. The Opportunity Scholarship Act provides an option to the families of students in some of the lowest performing schools in the New Jersey to obtain an education that will give their children a better chance to be a productive member of society and to better prepare for college or the workforce.

Businesses have a stake in the education of children—as it is their future workforce, and it is fitting that corporations be incentivized to invest in their future workforce by contributing to a Scholarship Organization.

The bill was released out of Committee by a vote of 5-0-1-0 (Yes, No, Not Voting, Abstain). Click Here to see the Chamber’s full position paper on the issue.

Chamber Supports Regulation Reform

During yesterday’s Assembly voting session, the Chamber submitted a desk letter in support of A-3766 (Burzichelli), which alters the thirty-year old regulation of the State’s telecommunications and cable services by eliminating duplicative and outdated requirements, yet retaining regulation of consumer protections, franchises, rights of way, and underground facility protections.

Both the telecommunications and cable industries have changed considerably in the thirty years since the enactment of the law which this bill amends. Technology that was once a novelty has become a necessity for business. And, businesses’ ability to have access to this technology at affordable costs is essential to the ability to compete and keep prices lower through increased efficiencies provided by these technologies.

Companies regulated by the 1972 statute are restricted in their abilities to compete with their unregulated counterparts, and this bill takes that regulation into the twenty-first century. This bill was passed by the Assembly by a vote of 66-7-3-4 (Yes, No, Not voting, Abstain). Click here to view the Chamber’s full position paper on this issue.

The Chamber will update you on these issues as they continue to develop.

If you have any questions or thoughts on any of the issues covered in this edition of Legislative Update, please contact Christopher R. Brown, CAE, Director, Government Relations at cbrown@chambersnj.com or 856-424-7776 ext. 127.

*The opinions and statements expressed in this newsletter are not necessarily the views of this newsletter’s sponsors.

CCSNJ Legislative Update - January 25, 2011

Assembly Labor Committee Releases Bills Changing UI Benefits and WARN Act

Yesterday, the Assembly Labor Committee reported out two bills that impact business – one dealing with unemployment insurance benefits for employees dismissed for misconduct and the other expanding the scope of New Jersey’s WARN Act.

A-3707 (Diegnan/Egan) makes changes to requirements regarding disqualification from Unemployment Insurance benefits for misconduct by claimants. The bill adds a definition for simple misconduct and expands the definition of severe misconduct, while maintaining that employees would still be barred from receiving UI benefits in cases of “severe misconduct,” which the Chamber supported last year. The bill further places the burden of proof on employers to provide written documentation to back up claims of employee misconduct.

The bill defines “simple misconduct” to include: repeated failure to comply with employer rules, falsification of an employment application, chronic tardiness without good cause, repeated and unauthorized absences without good cause, and unsatisfactory work performance that is deliberate and below reasonable standards. If an employee is dismissed for “simple misconduct” they would not be eligible to receive UI benefits for seven weeks following their discharge.

“Severe misconduct” is defined in the bill to include acts committed with malice and without regard for employer property or safety, and a pattern of simple misconduct that is repeated after written warning by the employer. Employees dismissed for severe misconduct are barred from receiving UI benefits until such time that they are reemployed.

The bill maintains the current definition of “gross misconduct” as criminal conduct of the first, second, third or fourth degree under the NJ Code of Criminal Justice.

The bill was released from committee by a vote of 5-3.

Also heard in the Assembly Labor Committee was A-3583 (Cryan), which requires prenotification of mass layoffs by a holding company or franchisor with multiple franchise locations. This legislation is intended to expand New Jersey’s WARN Act (Worker Adjustment and Retraining Notification) to include franchises with multiple locations, which would be required to notify all employees of such companies in the case of a mass layoff or closure. The bill was released from committee by a vote of 5-2-1 (yes, no, abstain).

The Chamber will update you on these issues as they continue to develop.

If you have any questions or thoughts on any of the issues covered in this edition of Legislative Update, please contact Christopher R. Brown, CAE, Director, Government Relations at cbrown@chambersnj.com or 856-424-7776 ext. 127.

*The opinions and statements expressed in this newsletter are not necessarily the views of this newsletter’s sponsors.