Legislation that would provide a preference in State-funded government contracts for goods manufactured in New Jersey was released May 14 by the Senate Economic Growth Committee.

A-1479 (Burzichelli, Greenwald)/S-2088 (Kyrillos, Sweeney) also would authorize local governments to provide the same preference, even when they are not using State funds. NJBIA strongly supports the measure, which is part of its Agenda for Manufacturing Renewal in New Jersey.

About 25 other states provide a limited government-purchasing preference for certain in-state manufactured goods, including the neighboring states of Pennsylvania, New York, Maryland, Massachusetts and Connecticut.

Manufacturing remains an important industry sector in New Jersey. Given the high cost of manufacturing in New Jersey, creating a government-purchasing preference for goods made here would help level the playing field for in-state manufacturers and be an important benefit to them and the State economy. For more information, contact Melanie Willoughby.

2. Bill Requiring Prevailing Wage for Energy Projects Released

Businesses that undertake expensive renewable energy or energy efficiency projects would be forced to pay higher, union-scale prevailing wages to contractors if they received any State assistance, under legislation released by the Assembly Labor Committee on May 11.

A-3372 (Barnes, Diegnan) would require businesses to pay prevailing wage on projects over $11,892 that receive any financial assistance from the Board of Public Utilities (BPU), including rebates, tax abatements or loans. Expensive projects such as installing solar panels would be covered, as would most smaller projects, including the purchase of energy-efficient heating and cooling equipment.

NJBIA opposes this self-defeating bill because it would increase the cost of renewable energy and conservation projects the State is promoting under the Global Warming Response Act, Regional Greenhouse Gas Initiative (RGGI), and Governor’s Energy Master Plan. The prevailing wage would add 25 percent to labor costs for a solar-energy installation, according to the Mid-Atlantic Solar Energy Industries Association. The higher cost would outweigh the benefits of many of the rebates and tax incentives for renewable energy projects, discouraging companies from undertaking these projects and defeating the State’s own renewable energy goals.

The State cannot have it both ways: urging businesses to use more renewable energy, while making it more expensive to pursue renewable energy projects. Expanding the prevailing wage mandate to private projects will only impose a costly and unnecessary burden on businesses that are already struggling to control costs in a deep recession. This would result in fewer projects being completed and less energy saved. For more information, contact Sara Bluhm.

3. NJBIA Opposes Requiring Industrial Facilities to Provide "Beach Access"

NJBIA opposes a proposed bill that would tax companies that fail to provide public access to their tidal waterfront properties, even in cases where such access would violate homeland security and safety regulations. Affected would be chemical plants, industrial facilities, power plants, and the ports. The proposal was recently introduced as a substitute bill for S-1921.

To put this issue in context, the NJ Department of Environmental Protection (DEP) in 2007 changed its public access regulations, requiring the owners of all property fronting tidal waterways to either provide waterfront access to the public or pay for off-site access. In a 76-1 vote, the Assembly later passed A-2954, which exempts companies that must restrict access due to State and federal homeland security and safety requirements. Senators Andrew Ciesla and Jeff Van Drew sponsored an identical bill in the Senate, S-1921. NJBIA supports both of these bills.

However, the proposed committee substitute for S-1921, sponsored by Senate Environment Committee Chair Bob Smith, would impose a fee on companies to pay for off-site access if they cannot provide on-site access due to homeland security and safety requirements. NJBIA is working with the sponsors and the committee chairman on compromise legislation, S-1921 (Ciesla, Van Drew)/ A-2954 (Milan, Albano).

"The DEP should not be punishing companies for complying with State and federal homeland security and safety requirements," said NJBIA Vice President David Brogan. "The rule has been couched as a beach access tool, but it goes well beyond providing access to our shores." Brogan went on to say, "The rule completely disregards the realities of the world we live in today and the need to protect the public. The rule also disregards the basic concept of reasonableness when adopting regulations that impact the State’s business community."

4. Pilot Program Teaching Students about Finances Clears Education Committee

NJBIA-backed legislation that would establish a pilot program for teaching high school students about personal finances was released May 14 by the Senate Budget and Appropriations Committee.

The measure, A-1943 (Schaer, Lampitt)/S-2211 (Sweeney, Bateman), would establish a three-year pilot program to teach personal financial literacy in six school districts selected by the State education commissioner—two each in the northern, central, and southern regions of the State. Graduating seniors in the pilot program would receive instruction on budgeting, savings and investment, credit card debt, and other issues associated with personal financial responsibility. For more information, contact Chris Emigholz.

5. Commercial Real Estate Is Still Alive! Meet Our New Good Neighbor Award Winners

Join NJBIA on Friday, June 5, for its New Good Neighbor Awards Luncheon, which will showcase many of the best new commercial developments in New Jersey. Network with the State's top builders, developers, architects and contractors!

To be held at the Woodbridge Hotel & Conference Center (soon to be the Woodbridge Renaissance Hotel) from 11:45 a.m. - 2:00 p.m. Cost to attend is $79 per person. Tables of 10 are available! Register online now or, for more information, contact Katie Wittkamp at 609-393-7707, ext. 239.

6. Navigating NJ's Paid Family Leave: How to Comply with the New Law and Final Regulations, May 29

Get details on how the new law and final regulations will impact your workplace and how it will work with existing State and federal unpaid leave laws.

The seminar, to be held at the Mount Laurel Marriott, will begin at 8:30 a.m. and run until 1:00 p.m. The cost is $129 per person for NJBIA members and $169 for nonmembers. Register online now or, for more information, contact Katie Wittkamp at 609-393-7707, ext. 239.