Author: Michael D. DeLoreto

The Gibbons Government & Regulatory Affairs Group’s 2023 General Election Recap

Many political pundits predicted that the 2023 General Election would mirror the 2021 vote, when Republicans picked up seats in the State Legislature by defeating incumbent legislators. A historical repeat seemed possible since the Legislature was running in new districts under a “consensus” map agreed to by both parties, recent polling data has indicated that President Biden has become less popular in New Jersey, and the issues at the forefront created opportunities for the minority party. The most closely watched legislative districts were Districts 3 and 4 in the southern part of the state, Districts 11 and 16 in the central region, and District 38 in northern New Jersey. It was the Democrats, however, who flipped the script from 2021 and ended up gaining five seats in the State House by holding off challengers and defeating incumbent and favored Republican candidates: In Legislative District 3 (Gloucester/Salem/Cumberland Counties), incumbent Republican Senator Ed Durr lost to former State Assemblyman John Burzichelli. Senator-elect Burzichelli’s running mates for the Assembly, Heather Simmons and Dave Bailey, appear on track to defeat incumbent Republican Assemblywoman Bethanne McCarthy Patrick and Thomas Tedesco. These results will flip the Third District from Republican to Democrat. With three open seats in Legislative District 4 (Camden/Gloucester Counties), incumbent Assemblyman Paul Moriarty won an open Senate seat...

How the Elections Transparency Act Changes New Jersey’s Political Contribution Landscape

Governor Murphy signed into law one of the most sweeping campaign and political law reform bills since the enactment of The New Jersey Campaign Contributions and Expenditures Reporting Act in 1977. The Elections Transparency Act (“Act”) has been the focus of much attention due to the changes in the leadership and enforcement operations at the New Jersey Election Law Enforcement Commission (NJELEC). However, the Act’s most significant impacts will be felt in the areas of campaign contribution limits, reporting requirements, and the standardization of the state’s pay-to-play laws. Campaign Contributions Current law provides for contribution limits on a per election or per year basis, ranging from $2,600 to “no limit” contributions between leadership and party committees. These limits remain in effect until after the June 2023 Primary Election. Following the June 2023 Primary Election, the contribution limits dramatically increase to double, or in some instances, triple the current limits. For example, individuals, corporations, unions, associations, and groups will be subject to the following limits: $5,200 per election cycle to a Candidate Committee $14,400 per election cycle to a Political Committee $14,400 per year to a Continuing Political Committee or Municipal Political Party Committee $75,000 per year to a Legislative Leadership Committee, State Political Party Committee, or County Political Party Committee Contribution limits will also be...

New Jersey Adopts Private Construction Inspection Bill

On January 5, 2023, New Jersey Governor Phil Murphy signed into law Assembly Bill 573, which authorizes private inspections under the State Uniform Construction Code (UCC) Act, upon the satisfaction of certain conditions (the “Act”). The New Jersey Department of Community Affairs (DCA) now has six months to propose rules to effectuate the provisions of the Act and three months thereafter to adopt those rules. The Act is a result of efforts throughout the commercial real estate industry to address the growing shortage of available municipal code inspectors and recent increased demand for inspections due to the high frequency of construction activity throughout the state, as well as an ongoing backlog due to COVID-19 staffing shortages. There is consensus within the industry that the processes codified within the Act will minimize project disruptions and delays and create a more streamlined construction inspection process, in order to expedite the timely construction and occupancy of inclusionary housing and non-residential development alike. The Act creates a new process by which private inspectors can perform required construction inspections under the UCC. Once work undertaken pursuant to a construction permit is ready for any required inspection under the UCC, the owner, agent, or other person in charge of the work (collectively, the “Owner”) shall notify the enforcing agency (presumably the...

2022 Elections Result in Close Races but Less Turnover Than Expected

With mid-term elections serving as a referendum on the party-in-power, Democrats braced for losses and Republicans sought to catch a “red wave” both in New Jersey and nationwide. Although votes are still being counted in some races, both sides can claim victory, as Republicans were able to pick up some seats and Democrats were able to blunt significant Republican gains. New Jersey’s congressional delegation will remain a Democratic majority, as only one of the hotly contested races resulted in an incumbent Democrat’s loss. In New Jersey’s 7th Congressional District, Republican Tom Kean, Jr. and Democrat Tom Malinowski faced off in a rematch of the 2020 election to represent Central Jersey residents. Mr. Malinowski defeated Mr. Kean then by less than 1 percent, but redistricting made the 7th District more Republican. With a more favorable map, Mr. Kean was able to defeat Congressman Malinowski by about 4 percentage points. In the 3rd Congressional District, Democratic incumbent Andy Kim won nearly 55 percent of the vote against Republican challenger Bob Healey. It was unclear if the newly redrawn district would present a challenge for the sitting congressman; however, by midnight, the election returns demonstrated that Mr. Kim was safely re-elected. Other congressional races, such as the contests in the 5th and 11th Districts, were also viewed as...

Governor Murphy Presents His Fiscal Year 2023 Budget

Governor Murphy presented his Fiscal Year (FY) 2023 Budget to a joint session of the State Legislature in a live address for the first time since February 2020. The proposed budget totals $48.9 billion – a $2.5 billion increase over the FY 2022 budget – and includes a $4.2 billion surplus, which is nearly double the surplus included in last year’s budget. The proposal does not include any new taxes or fees. In fact, the Governor’s spending plan includes a one-year fee holiday to waive fees typically assessed for driver’s license renewals, marriage licenses, state park entry, and license fee applications or renewals for roughly 130,000 professionals across the health care spectrum. The Governor themed his budget address around one word: Affordability. This became a key issue in the 2021 gubernatorial and legislative election, and is something both the Governor and legislative leaders identified as their priority for the current legislative session. The budget proposal looks to improve affordability in the State by addressing property taxes and access to housing. It appropriates $900 million for the Affordable New Jersey Communities for Homeowners and Renters (ANCHOR) Property Tax Relief Program, which proposes to provide property tax rebates to both homeowners and tenants. Additionally, the Governor’s budget allocates $300 million to the Affordable Housing Protection Fund to...

A Look at the 220th Legislature and Annual State of the State Address

On January 11, 2022, New Jersey began a new legislative session marked by the Legislature’s reorganization and the Governor’s State of the State Address. Legislative Reorganization Democrats retained control of both houses, albeit with much smaller margins after Republicans managed to win back several seats in the November elections. Democrats now hold a 24 to 16 majority in the Senate and a 46 to 34 majority in the General Assembly. The Senate has new leadership for the first time in twelve years, with Senator Nicholas Scutari of Union County being sworn in as the Senate President and Senator Teresa Ruiz of Essex County becoming the Senate Majority Leader. Senator Sandra Cunningham of Hudson County remains the Senate President Pro Tempore. Senator Steven Oroho of Sussex County is now the Republican Leader, replacing Tom Kean, Jr., who did not run for reelection in order to focus on his campaign for the 7th Congressional District. The Senate also welcomed five new members. Senators Jon Bramnick (R-21), Gordon Johnson (D-37), Jean Stanfield (R-8), and Andrew Zwicker (D-16) all previously served in the General Assembly. Senator Ed Durr (R-3) has not previously held elective office. In the Assembly, Craig Coughlin of Middlesex County and Louis Greenwald of Camden County will continue as Speaker and Majority Leader, respectively, for another...

More Help Available for Venues Impacted by COVID-19 (Shuttered Venue)

Relief may soon be available to artistic venues impacted by the COVID-19 pandemic. Under the Shuttered Venue Operators Grant (SVOG) program, venues affected by the pandemic may be eligible for grants equal to 45 percent of their gross earned revenue, with $10 million being the maximum amount available for a single grant award. The SVOG program was created in December 2020 as part of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, P.L. 116-260. The program was initially funded with $15 billion and will receive an additional $1.25 billion under the American Rescue Plan Act, H.R. 1319. Eligible entities covered under the program include: Live venue operators or promoters Theatrical producers Live performing arts organization operators Relevant museum operators, zoos, and aquariums that meet specific criteria Motion picture theater operators Talent representatives Each business entity owned by an eligible entity that also meets the eligibility requirements Qualified entities must also have been in operation as of February 28, 2020, and have applied for or received a loan under the Paycheck Protection Program on or after December 27, 2020. Grant funds may be used for expenses, which include: Payroll costs Rent payments Utility payments Scheduled mortgage payments (not including prepayment of principal) Scheduled debt payments (not including prepayment of principal) on any indebtedness...

A Look at Governor Murphy’s Fiscal Year 2022 Budget Proposal

Against the backdrop of the COVID-19 pandemic and an upcoming election in which the governorship and all 120 seats of the Legislature are on the line, Governor Murphy presented his Fiscal Year 2022 Proposed Budget through a virtual address. Unveiling a $44.8 billion spending plan, the Governor proposed no tax increases, a full payment to the pension system, new initiatives, and a significant surplus. Projected Revenues The Governor estimates total revenue in FY 2022 of $47.2 billion, due in large part to the FY 2021 revenues exceeding projections, which provides an opening balance for FY 2022 of $4.9 billion. The Administration also estimates a 2.4 percent growth in total revenue during FY 2022. Revenues are not based on any increases in tax rates or new taxes and do not account for any additional federal assistance to the State from a new stimulus package. Proposed Appropriations Total appropriations of $44.8 billion are $3.6 billion more than the prior fiscal year’s, an increase of 8.8 percent. The two largest expenses in the Proposed Budget are pre-K – 12 education ($18.1 billion) and the full Actuarially Determined Contribution (ADC) pension payment ($6.4 billion). These two items by themselves account for 55 percent of the State’s total spending. Other significant appropriations include: $2.6 billion to the State’s higher education...

Governor Murphy Signs New Economic Incentive Legislation

Governor Murphy signed into law the New Jersey Economic Recovery Act of 2020 (NJERA), opening a new chapter in the Murphy Administration’s efforts to incentivize businesses to invest in New Jersey and to assist the State in recovering from the economic downturn caused by COVID-19. NJERA’s enabling legislation, almost 250 pages long, creates new economic development programs, amends existing programs, and makes operational changes to the New Jersey Economic Development Authority (EDA). New Incentive Programs NJERA 2020 creates nine new incentive programs: The Historic Property Reinvestment Program provides tax credits for part of the cost of rehabilitating historic properties in this State. Tax credits under this program are capped at $50 million annually for six years. Qualified historic properties potentially eligible for tax credits include those designated on the National Register of Historic Places or the New Jersey Register of Historic Places, by the Pinelands Commission, or by municipalities under certain criteria approved by the State Historic Preservation Officer. The Brownfields Redevelopment Incentive Program provides tax credits to compensate developers for remediation costs of redevelopment projects located on brownfield sites. Tax credits under this program are capped at $50 million annually for six years. Brownfield sites include any former or current commercial or industrial site that is currently vacant or underutilized and on which there...

Congress Reaches Agreement on Additional COVID-19 Relief

On Sunday, December 20, 2020, Congressional leaders announced an agreement on a fourth major COVID-19 response bill. Although the legislative language is being finalized, statements from the parties involved in negotiations indicate the agreement includes focused relief for businesses, individuals, and families. For businesses: Expansion of the Paycheck Protection Program (PPP). The proposal includes more than $284 billion for first and second forgivable PPP loans. PPP will now be accessible to nonprofits, local newspapers, TV, and radio broadcasters. Dedicated PPP set-aside for small businesses and lending through community-based lenders like Community Development Financial Institutions (and Minority Depository Institutions). $15 billion in dedicated funding for live venues, independent movie theaters, and cultural institutions. $20 billion for additional grants under the Economic Injury Disaster Loan Program. Provision of a tax credit to support employers offering paid sick leave. Extension and improvement of the Employee Retention Tax Credit. $82 billion in funding for colleges and schools, including support for HVAC repair and replacement to mitigate virus transmission and reopen classrooms. For individuals and families: A new round of direct payments worth up to $600 per adult and child. $25 billion in rental assistance for families and an extension of the eviction moratorium. Enhancement of the Low Income Housing Tax Credit to increase affordable housing construction and provide greater...