Government Affairs Alert Blog

Gibbons Ranked Best Law Firm and Best Lobbying Firm in Inaugural NJBIZ Reader Rankings

Gibbons P.C. has been selected as the best law firm and the best lobbying firm in New Jersey in the inaugural NJBIZ Reader Ranking Awards. The Reader Rankings were compiled through an online survey seeking the best of the best in a wide range of categories and subcategories. According to NJBIZ, “The publication of the 2017 Reader Rankings by NJBIZ is our way of recognizing the regard our readers have for the businesses in their communities. What makes the companies listed here distinct is the devotion they inspire among our region’s business leaders.” Gibbons has been recognized by numerous organizations and publications for the firm’s work on behalf of clients, including being named among the New Jersey Law Journal’s Litigation Departments of the Year, earning the top overall honors in 2014, as well as recognition for the practice areas of class actions (2017), products liability (2016), and commercial litigation (2013). The Gibbons Government Affairs Department has ranked as the #1 lawyer-lobbying firm in New Jersey for nine consecutive years, according to the New Jersey Election Law Enforcement Commission In addition, the firm and Gibbons attorneys are also consistently recognized in annual client-review publications such as the Chambers USA Guide to...

New Jersey Legislature Considers Corporate and Business Law Reforms

A series of bills that would reform the New Jersey Business Corporation Act (“NJBCA”) are slowly churning their way through the New Jersey State Legislature. The pending legislation is modeled upon provisions of the “Delaware Business Corporation Law” and the recommendations of the “New Jersey Corporate and Business Law Study Commission.” In sum, the proposed revisions would generally benefit corporate boards of directors and modernize provisions of the NJBCA. Inspections of Corporate Books and Records Assembly Bill 2975 (Pinkin)/Senate Bill 2238 (Diegnan) modifies the NJBCA to allow corporations to impose reasonable limitations or conditions on the use or distribution of requested corporate books and records. While the bill does not define such “limitations and conditions,” the legislative statement accompanying A-2975/S-2238 provides an example of conditioning the receipt of requested materials on the demanding shareholder agreeing to customary confidentiality obligations. The bill preserves the ultimate authority of a court to decide and order relief in actions brought by shareholders for inspection of materials. On January 23, 2017, A-2975 passed the General Assembly by a vote of 69-0. On June 19, 2017, S-2238 passed the Senate Commerce Committee by a vote of 4-0. This bill is now awaiting a vote in the full...

Do You Like What You’re Reading? Rate Our Blog: The ABA Journal’s “Web 100” Award

Thank you for visiting the Gibbons Government Affairs Alert blog! Content on our site, authored by members of the Gibbons Government Affairs Department, provides practical perspectives, discussion, and analysis of the latest legislative news and trends. How are we doing? To review our blog and nominate the Gibbons Government Affairs Alert for this year’s ABA Journal’s “Web 100” award, please visit abajournal.com/blawgs/web100 and share why you are a “fan” of our site (Please note: the voting process closes on Sunday, July 30). Thank you in advance for your support.

With the 2017 Primary Over, It’s Murphy versus Guadagno for Governor

On Tuesday, June 6, 2017, New Jersey voters went to the polls to select their party’s nominees for Governor and all 120 seats in the Legislature. After a 2016 election cycle full of surprises, New Jersey’s 2017 primary resulted in wins for the gubernatorial front-runners, Democrat Phil Murphy and Republican Kim Guadagno. Those legislative districts with contested primaries also resulted in no major upsets and saw the expected candidates emerge with victories. Governor’s Race Former Ambassador Phil Murphy won the Democratic primary with 48 percent of the vote (241,353). His next closest competitor, former U.S. Treasury official Jim Johnson, garnered 22 percent (109,260), followed by Assemblyman John Wisniewski who also received 22 percent (107,872). Senator Raymond Lesniak came in fourth with 5 percent (24,136). Lt. Governor Kim Guadagno won the Republican primary with 47 percent of the vote (113,404). Assemblyman Jack Ciattarelli tallied 31 percent (75,275). In both contests, turnout was low. About one-quarter of Democratic voters, and only 20 percent of Republicans, participated in the primary. With New Jersey and Virginia being only states to hold a gubernatorial election in 2017, national groups are expected to make these two elections a referendum on President Trump and his agenda. Legislative...

Federal Tax Reform and the Potential Repeal of the Cash Method of Accounting

In the wake of the introduction by President Trump of his Tax Reform proposal on April 26, 2017, Congress, especially the U.S. House of Representatives Committee on Ways and Means, will be considering various methods to fund tax rate reductions. The White House formally delivered the President’s proposed budget to Congress on May 23, 2017. One proposal likely to be under consideration is the repeal of the cash method of tax accounting for service businesses, though many experts dispute whether many of the budget’s finer details will ever pass both houses of Congress. Under current law, the cash method of accounting cannot be used for income tax purposes by (i) businesses that sell goods and therefore must keep inventories, and (ii) C corporations with average annual gross receipts of $5,000,000 or more. A taxpayer-favorable exception from the C corporation rule is available for qualified personal service corporations, consisting of personal service corporations (PSCs) in the fields of health, law, engineering, architecture, accounting, actuarial science, performing arts, or consulting, when at least 95% of the stock of such PSCs is owned directly or indirectly by employees performing services in one of such fields. To oversimplify things, this means that law firms...

21st Century Cures Act Lands in Federal Budget Blueprint

President Trump’s proposed FY 2018 Budget (a/k/a the “skinny budget”) presented a departure from his predecessor’s proposed annual budgets – namely a $54 billion increase in defense and military spending paired with corresponding cuts to virtually every other federal department. But one area President Trump did not cut was the implementation of the 21st Century Cures Act (the “Cures Act”), which also happens to be one of the last bills signed into law by then-President Obama. The FY 2018 budget blueprint proposes to appropriate $1.1 billion towards the Cures Act’s implementation in the upcoming fiscal year. The Cures Act strives to expedite the discovery, development, and delivery of new treatments and cures. Those in the medical, biotechnology, and pharmaceutical industry should look to the Cures Act as the potential game-changer that the bipartisan sponsors of the law hoped it would be. Not only does the Cures Act provide the National Institute of Health with significant new funds to speed up research into diseases like cancer and Alzheimer’s, but it also attempts to speed up the process by which new treatments are reviewed and approved by the FDA. The Cures Act also focuses on changes to the treatment of mental health and...

NJ Legislative Budget Committees Receive Fiscal Updates

The Legislature received testimony regarding State revenues earlier this week. In separate appearances before the Assembly Budget Committee and the Senate Budget and Appropriations Committee, the State Treasurer and the Office of Legislative Services (OLS) testified regarding the revenue picture for the current fiscal year (FY 2017), and the anticipated revenues for the upcoming fiscal year (FY 2018). The OLS reported to the Committees that incoming revenues for FY 2017 are currently forecasted to be $228 million less than expected. However, the 2016 financial market rally and estimated tax payments by high-income earners suggest that FY 2017 revenues could push closer to the originally forecasted amounts. A more accurate revenue forecast will be available in May, after the April tax filing deadline passes. For FY 2018, both the Executive Branch and the OLS have similar projections for growth in the upcoming fiscal year. The Executive Branch anticipating growth that is only 0.6 percent higher than the OLS. While a small percentage amount, this still results in a difference of $212.9 million between the Executive Branch and OLS revenue estimates. The OLS Tax and Revenue Outlook can be accessed here. The State Treasurer’s testimony to the Assembly and Senate Budget Committees...

Governor Christie Presents the FY 2018 Budget

Earlier this week, Governor Christie announced his final State Budget to a joint session of the Legislature. The Governor’s Fiscal Year 2018 budget of $35.5 billion represents a 2.6 percent increase from the prior year. It assumes annual growth in the State’s major tax revenues (gross income tax, sales tax, and corporate business tax) and also reallocates funding between programs. The highlights of the FY 2018 Budget include: $17.4 billion in school and local aid, representing almost half of all State spending; A $2.5 billion contribution to the State pension system, with payments occurring quarterly; Cuts to most Executive Departments including Agriculture, Community Affairs, Corrections, Environmental Protection, Labor, Law and Public Safety, Military and Veterans Affairs, Transportation, and Treasury; Funding increases to the Departments of Health and Human Services for the expansion of FamilyCare, opioid addiction treatment, and graduate medical education; $20 million appropriation for lead remediation assistance for low and moderate income households; Additional State health benefit reforms, saving the State $125 million in FY 2018; and A lump-sum contribution from the State Lottery system to the State’s pension system to reduce the existing unfunded liability. Governor Christie also proposed a supplemental appropriation in the current fiscal year of...

Gibbons Ranked New Jersey’s Top Lawyer-Lobbying Firm for Ninth Consecutive Year

For the ninth year in a row, Gibbons P.C. has been ranked as the #1 lawyer-lobbying firm in New Jersey, according to the New Jersey Election Law Enforcement Commission, which has just released its report on 2016 lobbying expenditures in the state. Gibbons has also ranked sixth in the state among all lobbying firms. David J. Pascrell and Kevin G. Walsh serve as Co-Chairs of the Gibbons Government Affairs Department. “Our lawyer-lobbyists are focused on helping clients to achieve their business objectives,” said Patrick C. Dunican Jr., Chairman and Managing Director of Gibbons. “We congratulate the Gibbons Government Affairs Department on being recognized once again.”






New Jersey Legislature Focuses on Drone Technology

The First Legislative District Economic Development Task Force (“Task Force”) will meet on February 23, 2017, to discuss unmanned aviation technology and the potential impact it could have on the Southern New Jersey region. The Task Force, established by the New Jersey Senate in 2014 and reauthorized in 2016, was charged with “identifying methods, policies, regulations, incentives, and tools to foster economic activity and create jobs in Atlantic, Cape May, and Cumberland counties.” To accomplish its work, the 11-member Task Force is composed of a broad cross-section of thought leaders from the political, educational, and economic spheres. Over the last three years, the Task Force has met multiple times and has studied several issues of importance to the region. It has also studied aquaculture development and educational initiatives to develop a more skillful workforce. Throughout their deliberations, the members of the Task Force have identified actions that will grow the workforce and position the region to attract and support innovation. As the home of the William J. Hughes Technical Center and Stockton University, Southern New Jersey is known for aviation innovation. The testimony received by the Task Force on February 23rd will highlight the potential assets of the region. This...