NFIB

Regulatory flexibility act expansion clears committee
Small businesses that believe they are economically harmed by government regulations would be able to bring their case to court under NFIB/New Jersey supported legislation passed by the Senate Economic Growth Committee last week.

The bill would expand New Jersey's Regulatory Flexibility Act to allow businesses with fewer than 100 employees to appeal to the courts if they have been economically harmed by the actions of a governmental agency. The bill would also require government agencies to simplify and consolidate reporting requirements for small businesses. 

The legislation, which has already been cleared by the Assembly, now heads to the full Senate for a vote.

Other legislative action in Trenton this week:

• Unemployment Insurance Fund: The Senate unanimously passed S-1638. This bill, sponsored by Sen. Barbara Buono, would appropriate $260 million dollars to the state's unemployment compensation fund from the FY08 Budget surplus. The bill would also temporarily change the date on which the fund's balance is calculated from March 31 to June 30 for 2008 only. The bill's aim is to prevent an automatic increase in employer payroll taxes triggered by a low balance in the fund. NFIB/New Jersey is cautiously optimistic about this legislation as it is a stop-gap measure and not a long-term solution.
• Water Tax: Over the past several weeks, the issue of a Water Tax was once again raising its ugly head. The goal of the sponsor was to find a stable source of funding for open space and farmland preservation. However, it does not seem that the Legislature has the stomach to swallow a water tax right now. Instead, a new bill was introduced this week to provide $300 million in funding for open space and farmland preservation through a new bond act.
• Healthcare: This week, legislation proposed by Sen. Joe Vitale to ensure that more residents in New Jersey have access to affordable health care coverage passed the Senate Budget and Appropriations Committee. Sen. Vitale believes that his bill would achieve this goal by expanding the NJ FamilyCare Program to more low income parents, mandating that all children in the State have health care coverage and implementing other market reforms. This proposal is the "first phase" of a comprehensive reform of the health care system in this State which, when fully implemented, will ensure universal health care coverage for all residents of New Jersey. The bill would also make various reforms in the individual and small employer insurance markets to ensure affordability and stabilize cost. The bill now heads to the full Senate for consideration. NFIB is pleased these reforms do not incorporate employer mandates and will continue to monitor this legislation.

The New Jersey Lawsuit Reform Alliance is working to improve the litigation climate in New Jersey and is asking for our help. If you have been a victim of lawsuit abuse or know someone who has, they would like to hear your story. 

• Lawsuit abuse costs the state of New Jersey $7.7 billion every year.
• Eight-nine percent of employers say that lawsuits drive up the cost of doing business.

If you would like to share your story, please e-mail me at Laurie.Ehlbeck@nfib.org or call 609-989-8777.