Against strong opposition, the Assembly passed legislation that will provide New Jersey drivers unprecedented choice in the automobile repair marketplace. The "Motor Vehicle Owners' Right to Repair Act" will give motorists the ability to obtain all information necessary to provide for the diagnosis, service and repair of their vehicles -- eliminating the need for a trip to a dealership for routine maintenance and repairs.
NFIB small and independent repair shop owners rallied together to get this proposal passed by the Assembly, making countless phone calls, sending letters and faxes and meeting at the state house in Trenton to testify in support.
In a recent survey of NFIB members who own independent garages, 78 percent of those responding reported that they have been forced to turn customers away or refer them to a manufacturer-owned dealership because they were unable to get the repair information necessary to fix the car. In an effort to keep their customers, 44 percent of the repair shops surveyed report that they have paid a dealer technician to get access to the undisclosed manufacturer information. This under-the-table practice further proves that independent shops are at a disadvantage and manufacturers are not disclosing information equally.
The bill sponsor, Assemblyman Reed Gusciora (Mercer), spoke on the floor: "As cars have become more technically advanced, manufacturers have been able to get an unfair advantage by forcing owners to rely on dealerships for even the most routine maintenance. Every motorist should have access to the array of diagnostic codes locked into a vehicle's computer and decide for themselves who they want to service their vehicle. It is time to break the monopoly dealerships and manufacturers have held on car maintenance for too long."
This measure passed 49-22, with eight abstentions. It now goes to the Senate for further consideration.
Revised toll hike proposal
After an unsuccessful attempt by Gov. Jon Corzine to pass a proposal that included a 800 percent toll hike over 14 years to pay down state debt, buy open space and fund transportation projects, the New Jersey Turnpike has approved a revised plan. The proposal will raise tolls on the New Jersey Turnpike and the Garden State Parkway twice, in 2008 and 2012, while eliminating a proposed increase for 2023.
The toll for the average truck trip on the New Jersey Turnpike will increase by $2.05 in 2008 and $3.75 in 2012. The toll for the average truck trip on the Garden State Parkway will increase by 60 cents in 2008 and 95 cents in 2012. That is a 40 percent increase for the first adjustment compounded by an additional 53 percent in 2012. Overall, this is roughly a 115 percent increase once the hikes are fully implemented in 2012.
A new 5 percent discount will apply to truckers who use EZ Pass during off-peak hours. There are 20 hours of off-peak per day (seven days a week) as only 7-9 a.m. and 4:30-6:30 p.m. are considered peak hours. Gov. Corzine is expected to provide final approval to the plan, which will go in to effect around the first of December of this year.
Gov. Corzine was presented a list of pared-down transportation projects including widening sections of the Turnpike and some expansions to the Parkway. The plan also includes a $1.25 billion contribution to a new rail tunnel under the Hudson River -- a part of the plan that has drawn criticism from Republican lawmakers who say that it is illegal to pay for a mass transit tunnel with toll dollars.
Corzine and Transportation Commissioner Kris Kolluri contend that the construction projects will create thousands of jobs and stimulate the economy. The governor told the public at a recent hearing that the increases are the minimum necessary to maintain safe roads and bridges. Senate Minority Leader Tom Kean Jr. said that the cost "will still ripple through the economy at a time when we can least afford it."
Recent NFIB/New Jersey victories:
Supported UEZ Reform: NFIB/New Jersey pushed for full restoration of a point-of-sale sales tax exemption that has been in place for UEZ businesses since the program's inception. The current rebate program is administratively burdensome and is fraught with delays. The Legislature has stopped short of eliminating the rebate requirement, but did amend the bill to increase the exemption from the rebate program to any business with less than $3 million in sales, up from $1 million currently. We'll continue to push for full restoration of the point-of-sale sales tax exemption.
Supported BRRAG Expansion: Legislation lowering the eligibility for Business Relocation and Retention Assistance Grants (BRRAG) to 50 jobs from 250 jobs was signed by Gov. Corzine. Under BRRAG, businesses are eligible for a one-time business tax credit of up to $1,500 per job retained in or moved to New Jersey. To qualify, however, a business must retain or relocate a minimum of 250 jobs, excluding 97 percent of the employers in the state. This new law lowers the threshold to 50 jobs, enabling many more businesses to participate.
Defeated Paid Family Leave: Legislation that would have made New Jersey the second state in the nation to require all businesses with two or more employees to provide up to twelve weeks of paid time off for childbirth or family illness. This onerous anti-business proposal is expected to be reintroduced in the new legislative session. NFIB/New Jersey will continue to fight this bill.
Mental Health Parity Mandate Tabled: Legislation that would provide unlimited coverage for mental health and substance abuse treatment did not pass. This costly mandate would increase costs to employers and ultimately lead to fewer employers offering health insurance to their employees.
Wrongful Death Expansion Stopped: Legislation that would give families the right to sue for emotional harm caused by the "wrongful death" of a loved one was vetoed by Gov. Corzine. The legislation would have permitted juries to consider mental anguish and loss of companionship before awarding compensation. NFIB/New Jersey opposed this bill, arguing that passage could lead to huge financial awards because emotional damages, unlike economic damages, are speculative.