"Permit Extension Act of 2008" Advances
Friday, June 13, 2008

MEMORANDUM

TO: Members of the Assembly Environment and Solid Waste Committee

FROM: Christina M. Genovese, Manager, Government Relations

RE: A-2867 (Greenwald/Malone/Cryan)

DATE: June 12, 2008

The Chamber of Commerce Southern New Jersey strongly supports A-2867 (Greenwald/Malone/Cryan), the “Permit Extension Act of 2008.” This bill would extend for 6 years all permits and approvals given to developers or builders by the state or local governments. A-2867 would extend permits that were issued between January 1, 2006 and December 31, 2012, a time period defined by the bill to be an “economic emergency."

In the late 1980’s and early 1990’s, New Jersey was in a state of economic crisis, with skyrocketing unemployment rates well above the national average and little to no economic growth. A Rutgers Regional Report states that between 1989 and 1992, New Jersey lost approximately 7.1 percent of its total job base and 259,000 total jobs during this 4 year period.

However, in 1992, the Legislature intervened and passed the Permit Extension Act of 1992, which was amended and extended further in 1994. This Act gave builders and developers who obtained New Jersey permits an extension before they lapsed or expired. The Permit Extension Act saved both time and money and, most importantly, gave builders a reason to remain in New Jersey regardless of the harsh economic climate.

Current economic trends are eerily similar to those reported in the early 1990’s. The latest Rutgers Regional Report, released in April of this year, states that New Jersey’s private sector employment growth in 2007 “flat-lined” and that New Jersey had the least economic momentum entering 2008 compared with its large economic peer states in the Northeast. Additionally, according to Department of Labor statistics, through April of this year 9,900 jobs were lost statewide.

The construction industry is key to job growth; extending these permits would save thousands of direct and indirect construction jobs in New Jersey. Additionally, once a permit expires, the costly and time consuming permit renewal process makes it impractical to start over again. In comparison, states such as Pennsylvania have a less costly and more effective system, making it more appealing for builders to do business across the river.

The Chamber strongly believes that the passage of the “Permit Extension Act of 2008” would have the same effect on today’s economy as it did in the early 1990’s and would send a message that New Jersey is serious about the promotion of economic growth opportunities statewide.

For these reasons, we urge you to vote “yes” on A-2867 (Greenwald/Malone/Cryan).