Improving Business

Despite the perception that New Jersey is not business friendly, our great state is home to twenty-three FORTUNE 500 companies and is ranked third nationally as best for small businesses. Although there is always the need to regulate business activity, we must also make sure that we do not over regulate to the point that corporations leave New Jersey to do business elsewhere. In these difficult economic times, we should do whatever we can to help businesses weather economic storms. Although New Jersey is home to many thriving businesses, I believe that we must become even more competitive by making some key changes to existing New Jersey corporate law. Helping businesses to survive in tough economic times -- making it easier to do business in New Jersey -- that’s how we will keep New Jersey “open for business.”

Helping Businesses Weather the Economic Storm

A4048 - Economic Stimulus Act of 2009 (Prime Sponsor)
Signed by the Governor on July 28, 2009

In June, the Legislature passed the “Economic Stimulus Act of 2009” in order to reinvigorate New Jersey’s economy during the economic recession and beyond. The bill created powerful tools for New Jersey businesses making it easier to apply for credit, introduced energy tax credits to help manufacturers to stay in business and lowered cost of building affordable housing.

A3377 - Main Street Business Program (Co-Sponsor)
Signed by the Governor on December 16, 2008

This program is intended to stimulate the State’s economy and spur community investment at a time of national economic crisis by providing loans and guarantees to small and mid-size businesses and not-for-profit corporations on an expedited basis for a period of two years following the bill’s enactment.

A2722 - Sales “Throwout” Provision (Co-Sponsor)
Signed by the Governor on December 19, 2008

This law eliminates the sales “throwout” provision under the corporation business tax. Also eliminates a corresponding provision that currently limits the increase in tax liability related for affiliated groups of corporations. The law also eliminates the "regular place of business" requirement to allocate less than 100% of income to New Jersey.

A3294 - InvestNJ Grant Program (Co-Sponsor)
Signed by the Governor on December 9, 2009

Establishes the InvestNJ Business Grant Program in the New Jersey Economic Development Authority (NJEDA).  This program will stimulate certain capital investment and job creation in New Jersey during a specified period. The program has a capital investment grant component and a job creation grant component.  The program is part of the Governor's New Jersey Economic Assistance and Recovery Plan.

Making New Jersey More Business Friendly

I am proud of the package of bills that I, along with several of my fellow legislators, introduced in the Legislature last year. Many of these bills have become law and
will improve our corporate climate, so that businesses will look to New Jersey rather than Delaware as their home. As Chairperson of the New Jersey Business Law Commission, I had the pleasure of working with a stellar group of individuals who contributed their expertise to the drafting of these bills.

A2879 - Corporate Notice (Prime Sponsor)
Passed Assembly -- Pending in the Senate

This bill provides that any notice required or permitted pursuant to the provisions of  the “New Jersey Business Corporation Act” (N.J.S.A.14A:1-1 et seq.), such as by a certificate of incorporation or by-laws or any resolution of directors or shareholders, may be provided by electronic transmission.

This bill eliminates the 10-day waiting period for certain shareholder actions not concerning mergers and acquisition activity. The bill makes New Jersey law consistent with Section 228 of the Delaware General Corporation Law for shareholder approvals that do not involve mergers and acquisitions.

A2881 - Notice of Resignation (Co-Sponsor)
Signed by the Governor on January 27, 2009

This law provides that a director may provide a notice of resignation to the corporation that is only effective upon the occurrence of a certain event or events. The resignation shall be effective upon receipt thereof by the corporation of that notice, or at such subsequent time as shall be specified in the notice of resignation , or upon the occurrence of a certain event or events specified in the notice of resignation. Any resignation which is contingent upon a director failing to receive a specified vote for re-election shall provide that the resignation is irrevocable.

A2882 - Corporate Service Requests (Prime Sponsor)
Signed by the Governor on January 27, 2009

This law provides one-hour and two-hour service options for expedited over the counter corporate service requests.

A2883 - Corporate Voting (Co-Sponsor)
Signed by the Governor on January 27, 2009

This law allows a corporation to eliminate plurality voting for director elections in the by-laws of the corporation and would give New Jersey corporations greater flexibility in adopting majority voting provisions, or other voting schemes, regarding the election of directors.

A2884 - Definition of Foreign Corporation  (Co-Sponsor)
Passed Assembly -- Pending in the Senate

This bill modernizes State law to better account for the expanded scope of global business interactions by amending the definition of foreign corporation.

A2885 - Equity Awards (Co-Sponsor)
Passed Assembly -- Pending in the Senate

The bill provides greater flexibility in the types of equity awards that a corporation may use.The bill recognizes that equity grants are an integral part of the compensation systems at many corporations and that officers should be given the authority to provide employees with equity compensation in the same manner and at the same times as they may provide cash compensation.