Our experienced lobbyists communicate with lawmakers daily, and attend weekly legislative sessions to protect the business community’s interests, as well as provide members with information on issues that impact their bottom lines. 

August 11, 2010

Bill/Sponsor	Overview—Explanation
A-1646 (Greenwald) S-1781 (Beach/Norcross)	Directs that one sample ballot be delivered to each residence address where at least one resident is registered to vote. Current Law states that a sample ballot is sent to each registered voter in the household.
A-2951 (DiCicco/Munoz) S-2174 (Doherty)	Eliminate eligibility for State retirement systems for non- government groups and associations. Eliminates non-profits & other groups that do not belong in the State Pension system.
A-2952 (Casagrande/Munoz) S-2173 (Kyrillos)	Limits unused sick leave pay and vacation leave carry-forward for school and local employees; permits local unit to pay certain benefits over 10 years; limits sick leave use by public employee before retirement. This bill changes current law to make it applicable to all current & future officers and employees of boards of education and local governments; limits to $15,000 payment of additional compensation at retirement for accumulated, unused sick leave & limits the carrying forward of unused vacation leave for one year only. Current law imposes these limits on officers and employees commencing service on or after May 21, 2010—and for certain high-level officers and employees who were in service as of June 8, 2007. Sick Leave: limits the use by an employee in the 12 months before retirement—specifically prohibiting the use of 6 or more consecutive days of accumulated sick leave, without medical necessity, verified by a physician.
A-2953 (Peterson/McHose) S-2024 (Kyrillos)	Permits layoff plans as substitute for employment reconciliation plans for joint meetings or shared service agreements under certain circumstances. This bill amends sections of the “Uniformed Shared Services & Consolidation Act,” concerning the organization of an employment reconciliation plan when a local unit agrees to participate in a joint meeting or shared service agreement that will provide a service that the local unit is currently providing itself through public employees. This bill will permit a local unit that has adopted Title 11A, Civil Service, to substitute a layoff plan for the employee reconciliation plan under certain circumstances. This bill is intended to reduce the hurdles standing in the path of shared service agreements & joint meetings.
A-2956 (Chiusano/McHose) S-2011 (Oroho)	Eliminates seniority in Civil Service and other jurisdictions for reductions in force in certain circumstances. This bill changes existing civil service rules to permit the State, a county or a municipality to lay off, as part of a reduction in force, individuals with more seniority in the event the less senior individual possesses essential skills necessary to meet the needs of the county or municipality. When terminating a more senior employee instead of a less senior employee, the appointing authority must certify to the chairperson of the Civil Service Commission that the less senior employee has specialized skills, licenses, certifications, or other qualifications that the more senior employee does not possess and that those skills are essential to the operation. In the event that the reduction in force occurs in a county or municipality that has not adopted the civil service rules, the appointing authority must notify the Public Employment Relations Commission of the pending layoffs and gain their approval prior to implementing the layoffs. Finally, the bill expands the authority of the chairperson of the Civil Service Commission. Under the bill, counties and municipalities must receive permission from the chairperson of the commission prior to implementing a reduction in force that does not follow seniority rules.
A-2957 (Chiusano) S-2154 (Oroho)	Gives Civil Service Commissioner more day-to-day control. This bill replaces “Civil Service Commission” with “chairperson” of the commission in order to clarify the duties and responsibilities of the chairperson. This bill also transfers the State Employee Awards Committee from the Civil Service Commission to the Dept. of the Treasury and the responsibility for internship programs from the Dept. of the Treasury to the Civil Service Commission.
A-2958 (Bucco/McHose) S-2012 (Doherty)	Allows income tax refunds to be credited against a taxpayer's delinquent local property taxes. 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 payers.
A-2959 (Rumana/Webber) S-2045 (Allen)	Allows Council on Local Mandates to authorize certain organizations. Allows organizations like NJ league of municipalities to file a complaint with the Council on Local Mandates concerning potential unfunded mandate if so authorized by the Council, where current law states that only individual municipalities are able to do this and it is often too costly for one municipality to file alone. Organizations include (not limited to): NJ Conference of Mayors, NJ League of Municipalities, NJ School Boards Association, NJ Association of Counties, and the Garden State Coalition of Schools.
A-2960 (DiMaio) S-2043 (Kyrillos)	Concerns collective negotiations for school employees; repeals law prohibiting school boards from imposing terms and conditions of employment: school contracts cannot be awarded in excess of 2.5% cap; inclusive of all salary, benefit and other economic contract provision. School districts can once again impose “last best offer” contract under certain circumstances. This bill repeals section 3 of the “School Employees Contract Resolution and Equity Act,” which currently provides for certain collective negotiation procedures for school employee contracts and prohibits any school employer from unilaterally imposing, modifying, amending, deleting, or altering any terms and conditions of employment of its employees without specific agreement of their majority representative. This bill also clarifies, in any case in where collective bargaining between an employer and a majority representative have failed to result in the parties reaching agreement on the terms of a negotiated agreement, the selection of any fact finder or super conciliator will be the responsibility of NJ PERC. This bill also prohibits any fact finder (or super conciliator) selected by PERC from issuing any fact finder’s reports, or, in the case of a super conciliator, any final report, recommending a collective negotiation settlement or agreement, which exceeds a total of 2.5% on economic issues including wages, salaries, hours in relation to earnings, and other forms of compensation such as paid vacation, paid holidays, health and medical insurance, and other economic benefits to employees.
A-2961 (Handlin/Casagrande) S-2025 (Kyrillos)	Authorizes executive county superintendents of schools to require implementation of shared service arrangements across districts and municipalities and to approve school district collective negotiations agreements prior to execution of the agreement. There will not be approval of contracts with: -Salary/benefit increases exceeding the 2.5% cap; -Pupil contact time per day as set by regulation; -Minimum number of work as set by regulation; -Prohibition on contracting out auxiliary/ancillary services. This bill directs each executive county superintendent of schools to require partnership among school districts to expand shared services among school districts within and outside the county. The bill also permits the executive county superintendent to require a district to enter into a shared services arrangement with another district, a municipality, the county, or other unit of local government in the same county for the reasons of administrative, business, purchasing, public or nonpublic pupil transportation, or other school district service if the arrangement will result in cost savings for the districts or other units of local government involved. Additionally, the bill requires the executive county superintendent to approve all collective bargaining agreements in school districts within the county prior to the execution of those contracts in accordance with standards adopted by the Commissioner of Education The executive county superintendent may not approve an agreement if it fails to comply with the standards or includes salary, wages, and other forms of compensation that would cause the school district to exceed its tax levy growth limitation or prohibits the subcontracting of school district services.
A-2962 (Munoz) S-2027 (T. Kean)	Revises fact finder decision standards (when awarding a new employee contract) in higher education to account for decrease in state aid level, effect on tuition, and benefits already provided to employees. This bill provides that fact finders retained by the Public Employee Relations Commission to institute impasse procedures for collective negotiations involving public institutions of higher education must consider the following factors in formulating their opinions and recommendations for settlement: The impact of any reductions in State or county funding The potential and likely impact of a recommended settlement on tuition rates The cost of benefits provided to affected State employees
A-2963 (Webber/Munoz) S-2026 (T. Kean)	Amends State college law to remove certain employees from civil service system and allows boards of trustees to conduct collective bargaining. This bill removes from the civil service system all State college or university positions in titles listed as unclassified service titles or career service titles on the effective date of the bill. However, the bill also provides that an employee with permanent status in a title on the effective date of the bill will be permitted to retain all career service rights as long as he remains in that title. The bill also provides that each State college or university would function as a public employer under the “New Jersey Employer-Employee Relations Act,” and conduct all labor negotiations. Under current law, section 12 of P.L.1986, c.42 (C.18A:64-21.1), it is the Governor who has this responsibility. The University of Medicine and Dentistry and the New Jersey Institute of Technology currently conduct all labor negotiations at their institutions.
A-2964 (Webber/Munoz) S-2172 (Bateman)	Allows state colleges and universities to hire faculty members for a probationary period. Under current law, a faculty member of a State college or university qualifies for tenure after 5 consecutive calendar years; 5 consecutive academic years—together with employment at the beginning of the next academic year; or the equivalent of more than 5 academic years within a period of any six academic years. This bill proposes in addition to the time constraints above, that a State college or university may authorize the establishment of a probationary period that is consistent with the needs of the college and national practice which must be completed in order to qualify for tenure.
A-2965 (DiMaio) S-2067 (T. Kean)	Allows for a separate workers compensation program management for college and universities. Currently, the Division of Risk Management (in the Dept. of the Treasury) administers certain insurance coverage programs for various agencies of State Government, including colleges. This bill modifies that by allowing for two or more State colleges or universities to form a State college risk management group and to participate in joint liability funds, risk management programs and related services provided by the group (subject to oversight by the State Treasurer). The Group will establish bylaws to provide operation & governance of the group, procedures for the collection of contributions & payments from members; the maintenance of excess insurance or reinsurance for each joint liability fund; and withdrawal from the group. Establishes a board of trustees to govern the group, not less than 3 members (no more than 15). The bylaws of the Group need to be approved by the State Treasurer.
A-3075 (Chiusano) S-2171 (Doherty)	Reforms selection of arbitrators for union contracts. Under existing law, disputing parties are permitted to consider all the members of PERC’s special panel when choosing an arbitrator. This bill requires that three (3) arbitrators be randomly selected from its special panel of arbitrators and then submit them to the disputing parties for consideration. If the parties are unable to mutually agree on one of the 3 arbitrators within 10 days, PERC (Public Employee Relations Commission) will select the arbitrator Arbitrators are barred from making contract awards that exceed the 2.5% cap, inclusive of all salary, benefit and other economic contract provisions. The new language specifically bars any mediator, fact-finder or arbitrator from recommending or awarding any settlement that would exceed by more than 2.5% the total amount spent by the public employer on economic issues for the members of the affected employee organization in the upcoming employment year. The bill also states that no public employer or employee organization can enter into any agreement on economic issues that exceed the 2.5% cap, where economic issues are wages, salaries, hours in relation to earnings, and other forms of compensation, including paid vacation/paid holidays/health & medical insurance/other economic benefits accruing to the employees. Arbitrators must consider impact of union contracts, including police and fire, on property taxes, no such requirement in current law. Bill requires an arbitrator to consider: the impact of a new contract on local property taxes, whether it meets the requirements of the new “cap law,” a comparison of public and private sector wages, benefits & conditions of employment, and the interest & welfare of the general public.
ACR-130 (O’Scanlon/DiCicco) SCR-103 (Oroho)	Constitutional amendment to place a 2.5% cap on spending for State government operations (excluding state aid to municipalities and school districts and direct property tax relief); cap banking is allowed. See below.
ACR-131 (O’Scanlon/DiCicco) SCR-104 (Kyrillos)	Constitutional amendment to impose a strict 2.5% cap on increases in the property tax levy increases for municipal, school and county taxes—where cap banking is also allowed. In summary, current law caps local property tax increases at 4%, but allows for exceptions. This proposed amendment to the State Constitution would impose a cap of 2.5% on permitted increases to the property tax levies of counties, municipalities, school & fire districts, and other local taxing districts, over their levies for the previous tax year. This constitutionally required cap, similar to the 2.5% cap in Massachusetts, was recommended by Governor Christie as part of his FY11 budget address. Currently, law imposes a 4% cap on levy increases by those entities, with about 6 exclusions and opportunities for waivers granted by the Local Finance Board. Under the proposed constitutional amendment, the 2.5% levy cap would be a more “honest” cap than the levy cap imposed by current law because the only permitted automatic exclusions from the cap would be for expenditures.
2% Cap S-29 (Sweeney/McKeon)	Prior to the 2% cap, the proposed number was a 2.5 % cap Gov. Chris Christie proposed months ago that would have exempted only debt service payments. Under a compromise reached during a 3-day special legislative session, Gov. Christie conditionally vetoed Sen. Sweeney’s bill (which was to lower the cap by statute but leave in place most of the 14 exemptions) to lower the tax cap to 2 % and leave in place 4 exemptions: health care costs, pension costs, debt service & states of emergency.

March 19, 2010

GOVERNOR CHRISTIE DELIVERS FY2011 BUDGET ADDRESS

On Tuesday March 16, Governor Chris Christie delivered the FY2011 State Budget address to a joint session of the Legislature. The major themes of his proposed $28.3 billion budget were the promise of a smaller government that lives within its means; cutting government spending; ending public union excesses that the State and taxpayers can no longer afford; and reforming government to cost less and operate better. The Chamber has long supported initiatives such as these, and in fact they are included in testimonies submitted by the Chamber to the Senate and Assembly Budget Committees.

The Governor proposed a number of budget reductions including:

• Laying off as many as 1,300 state workers in January 2011.

· Reducing State departments, with the largest cuts in Agriculture, Community Affairs, Public Advocate and Treasury.

· Repealing the 9% pension increase passed in 2001.

· Crediting property taxes instead of sending out rebate checks.

· A constitutional amendment to cap growth in property taxes to no more than 2 ½ % per year and capping state spending at 2 ½%.

· Reducing municipal aid by $445 million.

· Cutting aid to school districts by some $819 million while giving districts power in the collective bargaining process and in setting employee benefits, and requiring school district employees to pay toward their health care costs.

The Governor also is allowing to sunset two taxes that were part of last year’s budget: the 4 percent surtax on the Corporation Business Tax (CBT) and the increase in the top income tax rate for those who earn over $400,000. These taxes, which were opposed by our Chamber, were adopted as one year fixes to balance the budget last year, and we applaud the Governor for allowing those taxes to sunset.

CCSNJ’s EVP/COO NAMED TO GOVERNOR’S PRIVATIZATION TASK FORCE

On March 11, Governor Chris Christie appointed Kathleen A. Davis, Executive Vice President & COO of the Chamber to the New Jersey Privatization Task Force. The Task Force will focus on a number of critical issues, including which government functions are or may be appropriate for privatization, the current legal and practical impediments to privatization, ensuring that the scope and quality of services is not inappropriately diminished, and any other matters referred to the Task Force by the Governor.

Ms. Davis was selected for this post due to her involvement with producing the Chamber’s Board Council on Responsible Government Spending reports, which provided 100 recommendations on how state government can reduce spending by adopting best business practices.

Ms. Davis was one of 5 people selected by the Governor for the Task Force, which is being Chaired by former Congressman Dick Zimmer and include: Todd Caliguire, co-president of ANW/Crestwood, Inc.; John Galandak, president of the Commerce and Industry Association of New Jersey (CIANJ); and Dr. Kelly Hatfield, a former member of Summit’s Common Council, on which she served as Chair of the Public Finance Committee, as Council President, and Mayor Pro Tempore.

The Task Force must submit a report of its finding to Governor Christie by May 31, 2010.

PENSION & BENEFIT REFORM PACKAGE PASSES ASSEMBLY COMMITTEE

Yesterday, the Assembly Appropriations Committee approved a package of bills aimed at reforming the state's public employee pension and benefits system. The four bill package would make a number of reforms, all of which stem from the recommendations from the 2006 Joint Legislative Session on Public Employee Benefits and mirror many of the recommendations made by the Chamber in our Board Council on Responsible Government Spending reports.

The Committee also passed two other bills, which would impose additional reforms. A-2499 (Moriarty) prohibits lobbyists from enrolling in the state pension and benefits system and A-2505 (Pou) limits salaries and benefits for officers and employees of State and local authorities.

In testimony before the committee, Christina M. Genovese, Director, Government Relations for the Chamber, strongly supported the reform package and testified that, “New Jersey has reached a point where the level of benefits provided is simply no longer affordable.” She went on to say that, “This is not the fault of the hard working state employees and teachers, but a reflection of an overburdened pension system that is broken and is simply unsustainable.” Ms. Genovese then offered four recommendations that would strengthen the reform package, as currently written.

All six of these bills are scheduled to be voted upon by the full Assembly on Monday.

Please click here to view the Chamber’s testimony on the reform package.

JOINT LABOR HEARING FOCUSES ON UNEMPLOYMENT INSURANCE TAX HIKE

Yesterday, the Senate and Assembly Labor Committees held a joint hearing on the state of the Unemployment Insurance (UI) Trust Fund and the pending automatic tax hike for New Jersey employers, which is statutorily mandated to go into effect July 1.

On Monday, Senator Fred Madden introduced S-1813, which would cap the tax increase on employers this year, but not address future years. The bill would limit the tax increase to a per-employee average of $130 this year, instead of $400.

In addition to Senator Madden’s proposal, on February 25 Governor Christie announced his plan to help reduce the tax burden on employers, which the Chamber has endorsed. The Governor’s plan includes a multi-prong approach of dealing with this complex issue that includes: a reduction in the employer tax increase to an average 17% versus the average 52% increase which will go into effect if nothing is done; capping future rate increases to avoid “tax shock” to small businesses; and bringing UI benefits in line with other states.

The Chamber will update you periodically on this issue as it continues to develop.