The New Jersey Supreme Court has agreed to hear an appeal by life coach and blogger Shellee Hale, who argues that a state appellate court wrongly determined that she wasn't a "journalist" for purposes of the state's shield law.
Hale, who criticized the software company Too Much Media on a message board, argues that she was acting as an "internet reporter investigating corruption" at the time she posted her comments on the message board, and therefore is entitled to protect the identity of her sources.
New Jersey's reporter shield law broadly allows journalists to keep their sources' identities confidential. But the Appellate Division of the Superior Court of New Jersey ruled that Hale could not claim the benefit of that law because she wasn't a journalist. "Defendant has produced no credentials or proof of affiliation with any recognized news entity, nor has she demonstrated adherence to any standard of professional responsibility regulating institutional journalism, such as editing, fact-checking or disclosure of conflicts of interest," the court wrote.
The lawsuit grew out of allegedly defamatory posts by Hale on Oprano, which calls itself "the Wall Street Journal for the online adult entertainment industry." In one post, Hale hinted that Too Much Media engaged in "fraudulent, unethical and illegal uses of technology," according to the appellate court's opinion.
Too Much Media sued Hale for defamation and attempted to discover the identities of people who provided her with information. She unsuccessfully argued to the trial judge and appellate court that the state's shield law gave her the right to protect her sources' identities.
After losing in the appellate court, Hale asked New Jersey's highest court to consider her case.
Her lawyer, Jeffrey Pollock, argues that the lower court's decision could put all online journalists at risk of losing the benefits of the shield law. "If the court were to decide that people writing on the Internet, for the public's benefit, who cite confidential sources are not entitled to the shield law, you are going to have a big problem with freedom of the press in the future."
Too Much Media's lawyer, Joel Kreizman, counters that Hale wasn't acting as a reporter in that she didn't publish news on her own blog or on a Web site affiliated with a news organization. "She participated in an online conversation. That's not reporting," Kreizman says. "Even if you're a reporter working for a recognized newspaper, that doesn't mean you can go outside your newspaper, on a chatroom, and just defame people," he adds.
by Wendy Davis
A blog for new jersey internet marketers, business owners with new jersey websites, pictures, and videos.
Showing posts with label laws. Show all posts
Showing posts with label laws. Show all posts
Friday, September 24, 2010
Wednesday, August 18, 2010
NJ Police Create Facebook Perp Walk
Here's another one for the "bound to happen eventually" file: It seems police in the town of Evesham, N.J., have begun posting mug shots on the police department's Facebook profile, in a move that is basically designed to publicly shame miscreants ranging from drunk drivers to car thieves and worse. Equally predictable is the wave of criticism this has elicited. Some of these are good points, but I think there is a way to post photos without hurting anyone unjustly.
First of all, lawbreakers forfeit some (though not all) of their privacy in breaking the law. While the right to privacy still protects important information like their social security numbers and health histories, it does not cover their basic identity -- meaning their name, address, and likeness. Police stations and courts are public places, so the very act of being arrested and hauled in front of a judge reveals their identity to anyone who cares to inquire. Furthermore, public shaming of transgressors is an established practice -- many local newspapers already feature a "Police Blotter." If it happens that online social media is a more effective medium for shaming the transgressor by reaching a larger public audience, well, all the better, right?
The only problem I can see with this approach is the potential for posting a mug shot of someone who was wrongly arrested -- but frankly that is a pretty big problem. It's easy enough to figure out whether someone has been driving under the influence, but what about cases where a person is falsely accused of a serious crime to tarnish their reputation? And of course police also make honest mistakes (e.g., Buffalo police arresting the wrong suspect in the shooting which left four people dead last week).
In light of these facts, it seems inappropriate to indiscriminately post arrest photos -- as the Evesham police appear to be doing -- as it goes against the spirit of the rule that suspects should be considered "innocent until proven guilty." A safer approach might be to post mug shots once the suspect has confessed or been convicted of the crime, or at least waiting until they have been charged.
So what about law enforcement posting "wanted" photos of suspects on social media sites? This strikes me as a qualitatively different from what the Evesham police are doing. A fugitive at large could inflict further harm on the public, and in my view this outweighs any concern over damage to his or her reputation if he/she should happen to be innocent. By contrast, a mug shot depicts someone who is already in custody, meaning there is no immediate utility in posting it for all to see.
First of all, lawbreakers forfeit some (though not all) of their privacy in breaking the law. While the right to privacy still protects important information like their social security numbers and health histories, it does not cover their basic identity -- meaning their name, address, and likeness. Police stations and courts are public places, so the very act of being arrested and hauled in front of a judge reveals their identity to anyone who cares to inquire. Furthermore, public shaming of transgressors is an established practice -- many local newspapers already feature a "Police Blotter." If it happens that online social media is a more effective medium for shaming the transgressor by reaching a larger public audience, well, all the better, right?
The only problem I can see with this approach is the potential for posting a mug shot of someone who was wrongly arrested -- but frankly that is a pretty big problem. It's easy enough to figure out whether someone has been driving under the influence, but what about cases where a person is falsely accused of a serious crime to tarnish their reputation? And of course police also make honest mistakes (e.g., Buffalo police arresting the wrong suspect in the shooting which left four people dead last week).
In light of these facts, it seems inappropriate to indiscriminately post arrest photos -- as the Evesham police appear to be doing -- as it goes against the spirit of the rule that suspects should be considered "innocent until proven guilty." A safer approach might be to post mug shots once the suspect has confessed or been convicted of the crime, or at least waiting until they have been charged.
So what about law enforcement posting "wanted" photos of suspects on social media sites? This strikes me as a qualitatively different from what the Evesham police are doing. A fugitive at large could inflict further harm on the public, and in my view this outweighs any concern over damage to his or her reputation if he/she should happen to be innocent. By contrast, a mug shot depicts someone who is already in custody, meaning there is no immediate utility in posting it for all to see.
Labels:
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Tuesday, March 30, 2010
2 Lawmakers Urge NJ Gov to Join Health Care Suit
TRENTON, N.J. (AP) -- Gov. Chris Christie says he'll wait for assessments from his attorney general and health commissioner before making any decisions on whether New Jersey should join other states in the lawsuit challenging health care reform.
State Assembly members Dave Rible and Mary Pat Angelini, both Republicans representing Monmouth County, are urging Christie to join 14 other states challenging the constitutionality of the federal health care reform bill signed into law by President Barack Obama last week.
Rible and Angelini say a mandate that all citizens should buy health insurance is in violation of the commerce clause of the U.S. Constitution.
Christie says he hopes to have his Cabinet members' assessments by the end of the week and will make a decision soon after.
State Assembly members Dave Rible and Mary Pat Angelini, both Republicans representing Monmouth County, are urging Christie to join 14 other states challenging the constitutionality of the federal health care reform bill signed into law by President Barack Obama last week.
Rible and Angelini say a mandate that all citizens should buy health insurance is in violation of the commerce clause of the U.S. Constitution.
Christie says he hopes to have his Cabinet members' assessments by the end of the week and will make a decision soon after.
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Sunday, February 28, 2010
In New Jersey, No Consensus on Foreclosure Problem
IN gauging the severity of the foreclosure problem in New Jersey, the experts could hardly be farther apart. Some see the state as relatively unscathed at this point, with the situation about to improve; others see worsening conditions that may turn downright severe.
But then again these same experts are the first to admit that they are handicapped by extremely unreliable information. Real estate market analysts, lawyers, academics, public officials: there are clusters of them on either side of the debate.
“Precise numbers on foreclosures are very elusive,” said James W. Hughes, the dean of the Edward J. Bloustein School of Planning and Public Policy at Rutgers University. But he said he was hearing reports from researchers in the field that foreclosure filings in some county courts were increasing. That trend may pick up steam as federal home-buyer stimulus programs expire, and high-paying jobs continue migrating out of state.
Jeffrey G. Otteau, whose Otteau Valuation Group provides real estate market analysis to the industry, sounded a similar note on the quality of available statistics. “The numbers from the various sources do not square,” was how he put it. Mr. Otteau quoted data from RealtyTrac, a company based in Irvine, Calif., that monitors court filings around the country, in characterizing New Jersey’s current foreclosure rate as very low — just .04 percent of households. He also predicted that foreclosure actions would decline as the overall economy improved. RealtyTrac, a subscriber service, is a primary source of information about distressed properties for investors.
As one of very few sources for up-to-date statistics detailed down to the local level, it also provides data to Congress, the Federal Reserve and the Federal Deposit Insurance Corporation. But its tracking and counting methods have been criticized, not only by Mr. Otteau in New Jersey but also by state officials in Colorado and Georgia, among others.
For instance, in 2008, when RealtyTrac reported that New Jersey’s rate of foreclosures increased 101 percent, Mr. Otteau accused the company of overcounting — in effect listing the same property repeatedly as it moved through the various steps in court. That might include a lender’s initial filing when an owner is 90 days delinquent on payments, as well as transfer of ownership to a lender, and a court-ordered sheriff’s auction.
“All indications are that RealtyTrac has stopped doing that,” Mr. Otteau said last week. “But the accuracy can in no way be positively verified.”
In 2009, according to RealtyTrac’s numbers, the rate of foreclosure filings in New Jersey increased by just 1 percent, to 1.8 percent, which equates to 18 of every 1,000 homeowners, Mr. Otteau noted. Nationally, foreclosures were reported to be up by 21 percent, for a foreclosure rate of 22.1 per 1,000 homeowners.
“That meant New Jersey ranked 39th of 50 states, plus the District of Columbia,” he said, “placing it in the better-of-the-pack.”
Cross-checking RealtyTrac numbers with other statistics often amounts to an “apples and oranges” problem, according to Mr. Otteau and Mr. Hughes. For instance, a report last month by the New Jersey court system estimated the number of foreclosure filings rose 29 percent from 2008. But the number is a raw count, not a calculation of rate.
Still, Mr. Otteau said, it does not jibe with RealtyTrac’s report as best he can tell. Goldie Sommer, a real estate lawyer who specializes in short sales for the firm Sommer & Engelhart in Fairfield, said she had ended up relying on the anecdotal reports of brokers who list properties available for short sale — and on the fact that she is extremely busy — to infer that the number of homeowners facing foreclosure was “bouncing up again.”
Ms. Sommer said she had handled about 250 short sales in the last two years. In her view, the process benefits both sides: the bank can avoid higher court costs, the potential need to evict after foreclosure and the prospect of the low-bidding “sharks” who show up at sheriff’s sales. And borrowers are saved from a damaging credit report, Ms. Sommer said. “Rather than show a foreclosure on a credit report, which takes off 200 points on a person’s credit score,” she said, “with a short sale a person will be able to get another mortgage later on.”
Information on short sales is not published by the state Multiple Listing Services. But the tally of short sales is disclosed to brokers as members of the listing services, and some do try to keep track of trends.
For instance Michael Hawley, of the United Association of Realtors, said that 35 to 40 percent of Essex County homes currently listed in the $300,000-to-$350,000 price range were short sales. At $700,000 and above, he added, 10 to 15 percent of listings are short sales.
An office manager for Weichert in Caldwell estimated that 15 percent of all listings right now were delinquent-mortgage properties; at Unicasa United Realty in Newark, a manager estimated that more than 60 percent of the agency’s listings were for properties whose owners were “underwater,” or owed more than the home was worth.
The short-sale alternative does complicate the calculating of foreclosure rates, Mr. Otteau said, because it means a large proportion of homes fall out of the process before actual foreclosure. He said that was why statisticians usually relied instead on the number of foreclosure filings — even though it too can be suspect, presenting “the potential for another type of miscounting.”
“It’s uneven,” Mr. Otteau said of all the estimates and anecdotes. “We do know that, but again, it’s a general sense of things, not a snapshot.”
But then again these same experts are the first to admit that they are handicapped by extremely unreliable information. Real estate market analysts, lawyers, academics, public officials: there are clusters of them on either side of the debate.
“Precise numbers on foreclosures are very elusive,” said James W. Hughes, the dean of the Edward J. Bloustein School of Planning and Public Policy at Rutgers University. But he said he was hearing reports from researchers in the field that foreclosure filings in some county courts were increasing. That trend may pick up steam as federal home-buyer stimulus programs expire, and high-paying jobs continue migrating out of state.
Jeffrey G. Otteau, whose Otteau Valuation Group provides real estate market analysis to the industry, sounded a similar note on the quality of available statistics. “The numbers from the various sources do not square,” was how he put it. Mr. Otteau quoted data from RealtyTrac, a company based in Irvine, Calif., that monitors court filings around the country, in characterizing New Jersey’s current foreclosure rate as very low — just .04 percent of households. He also predicted that foreclosure actions would decline as the overall economy improved. RealtyTrac, a subscriber service, is a primary source of information about distressed properties for investors.
As one of very few sources for up-to-date statistics detailed down to the local level, it also provides data to Congress, the Federal Reserve and the Federal Deposit Insurance Corporation. But its tracking and counting methods have been criticized, not only by Mr. Otteau in New Jersey but also by state officials in Colorado and Georgia, among others.
For instance, in 2008, when RealtyTrac reported that New Jersey’s rate of foreclosures increased 101 percent, Mr. Otteau accused the company of overcounting — in effect listing the same property repeatedly as it moved through the various steps in court. That might include a lender’s initial filing when an owner is 90 days delinquent on payments, as well as transfer of ownership to a lender, and a court-ordered sheriff’s auction.
“All indications are that RealtyTrac has stopped doing that,” Mr. Otteau said last week. “But the accuracy can in no way be positively verified.”
In 2009, according to RealtyTrac’s numbers, the rate of foreclosure filings in New Jersey increased by just 1 percent, to 1.8 percent, which equates to 18 of every 1,000 homeowners, Mr. Otteau noted. Nationally, foreclosures were reported to be up by 21 percent, for a foreclosure rate of 22.1 per 1,000 homeowners.
“That meant New Jersey ranked 39th of 50 states, plus the District of Columbia,” he said, “placing it in the better-of-the-pack.”
Cross-checking RealtyTrac numbers with other statistics often amounts to an “apples and oranges” problem, according to Mr. Otteau and Mr. Hughes. For instance, a report last month by the New Jersey court system estimated the number of foreclosure filings rose 29 percent from 2008. But the number is a raw count, not a calculation of rate.
Still, Mr. Otteau said, it does not jibe with RealtyTrac’s report as best he can tell. Goldie Sommer, a real estate lawyer who specializes in short sales for the firm Sommer & Engelhart in Fairfield, said she had ended up relying on the anecdotal reports of brokers who list properties available for short sale — and on the fact that she is extremely busy — to infer that the number of homeowners facing foreclosure was “bouncing up again.”
Ms. Sommer said she had handled about 250 short sales in the last two years. In her view, the process benefits both sides: the bank can avoid higher court costs, the potential need to evict after foreclosure and the prospect of the low-bidding “sharks” who show up at sheriff’s sales. And borrowers are saved from a damaging credit report, Ms. Sommer said. “Rather than show a foreclosure on a credit report, which takes off 200 points on a person’s credit score,” she said, “with a short sale a person will be able to get another mortgage later on.”
Information on short sales is not published by the state Multiple Listing Services. But the tally of short sales is disclosed to brokers as members of the listing services, and some do try to keep track of trends.
For instance Michael Hawley, of the United Association of Realtors, said that 35 to 40 percent of Essex County homes currently listed in the $300,000-to-$350,000 price range were short sales. At $700,000 and above, he added, 10 to 15 percent of listings are short sales.
An office manager for Weichert in Caldwell estimated that 15 percent of all listings right now were delinquent-mortgage properties; at Unicasa United Realty in Newark, a manager estimated that more than 60 percent of the agency’s listings were for properties whose owners were “underwater,” or owed more than the home was worth.
The short-sale alternative does complicate the calculating of foreclosure rates, Mr. Otteau said, because it means a large proportion of homes fall out of the process before actual foreclosure. He said that was why statisticians usually relied instead on the number of foreclosure filings — even though it too can be suspect, presenting “the potential for another type of miscounting.”
“It’s uneven,” Mr. Otteau said of all the estimates and anecdotes. “We do know that, but again, it’s a general sense of things, not a snapshot.”
Labels:
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Thursday, February 25, 2010
Yelp Sued For Offering To Bury Bad Reviews In Exchange For Ads
A California veterinary center has sued review site Yelp for allegedly promising to bury bad reviews in exchange for purchasing $3,600 worth of advertising on the site.
"Yelp frequently exercises its control over the Yelp.com listing application to modify business listing pages to the advantage of businesses that purchase Yelp advertising subscriptions, and the disadvantage of those that decline," Cats and Dogs Animal Hospital owner Gregory Perrault alleges in a complaint (PDF) filed in federal district court in the central district of California.
Cats and Dogs, based in Long Beach, alleges that Yelp violated California's business code. The company is seeking class-action status.
Perrault says in his complaint that his dispute with Yelp stemmed from two "defamatory" reviews that appeared on the site. The posts allegedly included statements like "Dr. Perrault is the rudest vet I've ever been to" and "my poor dog was terrified of him."
Perrault says in his lawsuit that shortly after these reviews appeared, he began receiving "frequent, high-pressure calls from Yelp advertising employees, who promised to manipulate Cats and Dogs' Yelp.com listing page in exchange for Cats and Dogs purchasing an advertising subscription."
Specifically, he alleges that a Yelp sales representative promised to move the reviews to the bottom of its results, ensure that they did not appear in search engine results, and also allow the hospital to decide which order reviews would appear in on Yelp, in exchange for a one-year $300-a-month ad buy.
The lawsuit was filed one year after the East Bay Express reported in an explosive article that some business owners were alleging that Yelp sales representatives offered to bury bad reviews in exchange for ad purchases. Yelp's CEO disputed the allegations.
Santa Clara University law professor Eric Goldman says that it's not clear how far the case will get in court. Even if Cats and Dogs can prove that Yelp's sales representatives promised to remove bad reviews in exchange for ad purchases, it's not clear that such tactics violate California's business code, Goldman says.
On the other hand, he adds, judges might be sympathetic to the business owners who are suing. "The allegations are damning," he says. "I could see a court saying, 'Give me a legal theory and I will find a remedy.'"
A Yelp spokesperson denied the allegations and said the company will fight the lawsuit aggressively. "The allegations are demonstrably false, since many businesses that advertise on Yelp have both negative and positive reviews. These businesses realize that both kinds of feedback provide authenticity and value."
"Yelp frequently exercises its control over the Yelp.com listing application to modify business listing pages to the advantage of businesses that purchase Yelp advertising subscriptions, and the disadvantage of those that decline," Cats and Dogs Animal Hospital owner Gregory Perrault alleges in a complaint (PDF) filed in federal district court in the central district of California.
Cats and Dogs, based in Long Beach, alleges that Yelp violated California's business code. The company is seeking class-action status.
Perrault says in his complaint that his dispute with Yelp stemmed from two "defamatory" reviews that appeared on the site. The posts allegedly included statements like "Dr. Perrault is the rudest vet I've ever been to" and "my poor dog was terrified of him."
Perrault says in his lawsuit that shortly after these reviews appeared, he began receiving "frequent, high-pressure calls from Yelp advertising employees, who promised to manipulate Cats and Dogs' Yelp.com listing page in exchange for Cats and Dogs purchasing an advertising subscription."
Specifically, he alleges that a Yelp sales representative promised to move the reviews to the bottom of its results, ensure that they did not appear in search engine results, and also allow the hospital to decide which order reviews would appear in on Yelp, in exchange for a one-year $300-a-month ad buy.
The lawsuit was filed one year after the East Bay Express reported in an explosive article that some business owners were alleging that Yelp sales representatives offered to bury bad reviews in exchange for ad purchases. Yelp's CEO disputed the allegations.
Santa Clara University law professor Eric Goldman says that it's not clear how far the case will get in court. Even if Cats and Dogs can prove that Yelp's sales representatives promised to remove bad reviews in exchange for ad purchases, it's not clear that such tactics violate California's business code, Goldman says.
On the other hand, he adds, judges might be sympathetic to the business owners who are suing. "The allegations are damning," he says. "I could see a court saying, 'Give me a legal theory and I will find a remedy.'"
A Yelp spokesperson denied the allegations and said the company will fight the lawsuit aggressively. "The allegations are demonstrably false, since many businesses that advertise on Yelp have both negative and positive reviews. These businesses realize that both kinds of feedback provide authenticity and value."
Monday, February 15, 2010
Southern New Jersey Patent Attorney Stuart M. Goldstein Secures approval from the U.S. Patent and Trademark Office ...
Marlton, New Jersey (PRWEB) October 5, 2009 -- Stuart M. Goldstein (http://www.nj-pa-patentattorney.com), partner and founding shareholder of the law firm of Hollstein Keating Cattell Johnson & Goldstein PC, has been successful in securing approval from the U.S. Patent and Trademark Office for a new revolutionary patent (http://www.nj-pa-patentattorney.com) that overcomes the limitations and disadvantages of prior supercharger control systems - efficiently, easily, effectively.
The new invention by Billy Machner of Browns Mills, New Jersey, addresses the problems that plague most current superchargers. A supercharger is installed on a vehicle internal combustion engine to provide air at high pressure into the engine's intake manifolds. Added high-pressure air increases engine horsepower. However, since most superchargers are driven by the engine, the engine has to work harder to operate the supercharger. As a result, engine efficiency is reduced and more fuel is consumed. There are more emissions and more wear on engine components. Simply put, that means added expense for fuel and parts, as well as an increased negative impact on the environment.
Machner's supercharger control system is a compact, solid mount unit that is easily installed on an engine's existing crankshaft by a supercharger clutch assembly. The supercharger control system directs the operation of the vehicle's supercharger, allowing the driver to simply and efficiently switch the supercharger on or off. When the supercharger is not needed, the driver can switch it off - the clutch assembly is disconnected to stop the operation of the supercharger. The driver can easily switch it on when opting to obtain high-speed performance. This on/off process helps, over the long run, to increase fuel efficiency, limit exhaust emissions, and reduce wear on the engine, crankshaft and other engine components, including the supercharger itself, by keeping cool when disconnected.
Retrofitted into aftermarket vehicles with superchargers or offered as standard or optional equipment with new production vehicles, this supercharger control system offers a wealth of practical marketing opportunities.
It is through Mr. Goldstein's expertise in matters involving a variety of industrial and consumer products as well as equipment and systems within the mechanical, electrical, and marine disciplines that make him the patent attorney clients seek out in order to receive patent protection for their creative products and improvements.
Mr. Goldstein oversees Hollstein Keating's southern New Jersey office's Intellectual Property Department, specializing in patent and trademark law. Mr. Goldstein's solid background, experience, and technical knowledge in the mechanical, electrical-mechanical, and marine arts began with his B.S. in Marine Engineering from the United States Merchant Marine Academy at Kings Point, New York in 1972. For six years, he worked as a patent examiner in the U.S. Patent and Trademark Office in Washington, D.C., attaining primary examiner status. Since 1978, he has been registered to practice before the U.S. Patent and Trademark Office as a patent attorney (Registration #22817), handling patent application prosecution and related litigation.
As a specialist in the patent field, Mr. Goldstein advises manufacturers, businesses, and individuals on product design, development, and integrity, guiding them efficiently through the complex patent approval process. Says Mr. Goldstein, "If it is new and useful, if it can be made, if it has potential value, it should be patented. When you are looking to protect your original invention or improvement on existing technology, when you are looking to secure intellectual property ownership rights, when you are looking to safeguard future commercial success, the goal is to protect your patent ownership rights. Over the years, I have seen the consequences of not obtaining patent protection (http://www.nj-pa-patentattorney.com), of opportunities lost, and the loss of investment, time, energy, marketing possibilities and ownership. With patent protection, your creative product or improvement becomes your exclusive property. And the rewards that come with it can be enormous."
Mr. Goldstein's representative patent areas include all types of mechanical and electrical products and improvements, methods and systems: for example, construction tools and equipment, cleaning tools and appliances, electrical lighting and switches, household appliances, plumbing and electrical tools, appliances and related equipment, hardware and gardening tools, conveyor systems, automotive products and accessories, vessel and marine-related products and systems, recreational and leisure-related products, and medical devices and appliances.
Among the newest technical patents that have received patent approval through Mr. Goldstein's professional guidance are the Chair Storage Rack (U.S. Pat. No, 7,578,400), which allows for the simple and efficient storage of beach chairs and beach accessories, and the Adjustable Fishing Rod Holder (U.S. Pat. No. 7,559,171), allowing the fishing rods of anglers and fishermen to be maintained in place in a variety of pre-selected fishing angles. The Bow Mounted Vessel Propulsion System (U.S. Pat. No. 7,096,810), which is a practical, effective, and efficient vessel propulsion system that addresses the limitations of prior propulsion systems, by reducing hull surface drag, enhancing fuel efficiency, and increasing vessel speed and maneuverability. The Conduit Rack Electrical Junction Box (U.S. Pat. No. 7,022,912) provides for a more efficient installation and use in suspended conduit racks. Invented by a licensed electrician for use within the construction industry, this invention accepts runs of protective conduit in conduit rack systems without interfering with the horizontal run of the conduit. This improvement eliminates the need for bending runs of conduit, saving time, material costs and labor. The Bimini Twist Jig (U.S. Pat. No. 7,011,346) offers a simple, easy to use product that always results in the tying of a perfect Bimini twist - considered to be the most important knot in fishing. The Eyeglass Display and Demonstration System (U.S. Pat. No. 6,988,799) is a convenient and practical system that allows the eyeglass wearer to visualize how a given pair of glasses will actually look with any given lens shape and tint before the lenses are fitted in the frames.
For additional information, contact Angela Forte, Office Administrator at 856.810.8860. Hollstein Keating Cattell Johnson & Goldstein PC is a full service civil litigation firm with expertise in all aspects of property, casualty, and commercial matters. Hollstein Keating represents a wide range of clients with nationwide legal concerns - individuals, corporations, businesses, and Fortune 500 companies concentrated throughout the Northeast, specifically in Pennsylvania, New Jersey, Delaware, and New York. Their practice areas include casualty, commercial litigation, environmental, insurance coverage, maritime law, mass and toxic tort, patent and trademark law, products liability, sports and recreational law, and subrogation.
About Hollstein Keating Cattell Johnson & Goldstein PC
Hollstein Keating Cattell Johnson & Goldstein PC (http://www.hollsteinkeating.com) is a full service civil litigation firm with expertise in all aspects of property, casualty, and commercial matters. Hollstein Keating represents a wide range of clients with nationwide legal concerns - individuals, corporations, businesses, and Fortune 500 companies concentrated throughout the Northeast, specifically in Pennsylvania, New Jersey, Delaware, and New York. Their practice areas include casualty, commercial litigation, environmental, insurance coverage, maritime law, mass and toxic tort, patent and trademark law, products liability, sports and recreational law, and subrogation.
Websites:
http://www.nj-pa-patentattorney.com
http://www.hollsteinkeating.com
###
The new invention by Billy Machner of Browns Mills, New Jersey, addresses the problems that plague most current superchargers. A supercharger is installed on a vehicle internal combustion engine to provide air at high pressure into the engine's intake manifolds. Added high-pressure air increases engine horsepower. However, since most superchargers are driven by the engine, the engine has to work harder to operate the supercharger. As a result, engine efficiency is reduced and more fuel is consumed. There are more emissions and more wear on engine components. Simply put, that means added expense for fuel and parts, as well as an increased negative impact on the environment.
Machner's supercharger control system is a compact, solid mount unit that is easily installed on an engine's existing crankshaft by a supercharger clutch assembly. The supercharger control system directs the operation of the vehicle's supercharger, allowing the driver to simply and efficiently switch the supercharger on or off. When the supercharger is not needed, the driver can switch it off - the clutch assembly is disconnected to stop the operation of the supercharger. The driver can easily switch it on when opting to obtain high-speed performance. This on/off process helps, over the long run, to increase fuel efficiency, limit exhaust emissions, and reduce wear on the engine, crankshaft and other engine components, including the supercharger itself, by keeping cool when disconnected.
Retrofitted into aftermarket vehicles with superchargers or offered as standard or optional equipment with new production vehicles, this supercharger control system offers a wealth of practical marketing opportunities.
It is through Mr. Goldstein's expertise in matters involving a variety of industrial and consumer products as well as equipment and systems within the mechanical, electrical, and marine disciplines that make him the patent attorney clients seek out in order to receive patent protection for their creative products and improvements.
Mr. Goldstein oversees Hollstein Keating's southern New Jersey office's Intellectual Property Department, specializing in patent and trademark law. Mr. Goldstein's solid background, experience, and technical knowledge in the mechanical, electrical-mechanical, and marine arts began with his B.S. in Marine Engineering from the United States Merchant Marine Academy at Kings Point, New York in 1972. For six years, he worked as a patent examiner in the U.S. Patent and Trademark Office in Washington, D.C., attaining primary examiner status. Since 1978, he has been registered to practice before the U.S. Patent and Trademark Office as a patent attorney (Registration #22817), handling patent application prosecution and related litigation.
As a specialist in the patent field, Mr. Goldstein advises manufacturers, businesses, and individuals on product design, development, and integrity, guiding them efficiently through the complex patent approval process. Says Mr. Goldstein, "If it is new and useful, if it can be made, if it has potential value, it should be patented. When you are looking to protect your original invention or improvement on existing technology, when you are looking to secure intellectual property ownership rights, when you are looking to safeguard future commercial success, the goal is to protect your patent ownership rights. Over the years, I have seen the consequences of not obtaining patent protection (http://www.nj-pa-patentattorney.com), of opportunities lost, and the loss of investment, time, energy, marketing possibilities and ownership. With patent protection, your creative product or improvement becomes your exclusive property. And the rewards that come with it can be enormous."
Mr. Goldstein's representative patent areas include all types of mechanical and electrical products and improvements, methods and systems: for example, construction tools and equipment, cleaning tools and appliances, electrical lighting and switches, household appliances, plumbing and electrical tools, appliances and related equipment, hardware and gardening tools, conveyor systems, automotive products and accessories, vessel and marine-related products and systems, recreational and leisure-related products, and medical devices and appliances.
Among the newest technical patents that have received patent approval through Mr. Goldstein's professional guidance are the Chair Storage Rack (U.S. Pat. No, 7,578,400), which allows for the simple and efficient storage of beach chairs and beach accessories, and the Adjustable Fishing Rod Holder (U.S. Pat. No. 7,559,171), allowing the fishing rods of anglers and fishermen to be maintained in place in a variety of pre-selected fishing angles. The Bow Mounted Vessel Propulsion System (U.S. Pat. No. 7,096,810), which is a practical, effective, and efficient vessel propulsion system that addresses the limitations of prior propulsion systems, by reducing hull surface drag, enhancing fuel efficiency, and increasing vessel speed and maneuverability. The Conduit Rack Electrical Junction Box (U.S. Pat. No. 7,022,912) provides for a more efficient installation and use in suspended conduit racks. Invented by a licensed electrician for use within the construction industry, this invention accepts runs of protective conduit in conduit rack systems without interfering with the horizontal run of the conduit. This improvement eliminates the need for bending runs of conduit, saving time, material costs and labor. The Bimini Twist Jig (U.S. Pat. No. 7,011,346) offers a simple, easy to use product that always results in the tying of a perfect Bimini twist - considered to be the most important knot in fishing. The Eyeglass Display and Demonstration System (U.S. Pat. No. 6,988,799) is a convenient and practical system that allows the eyeglass wearer to visualize how a given pair of glasses will actually look with any given lens shape and tint before the lenses are fitted in the frames.
For additional information, contact Angela Forte, Office Administrator at 856.810.8860. Hollstein Keating Cattell Johnson & Goldstein PC is a full service civil litigation firm with expertise in all aspects of property, casualty, and commercial matters. Hollstein Keating represents a wide range of clients with nationwide legal concerns - individuals, corporations, businesses, and Fortune 500 companies concentrated throughout the Northeast, specifically in Pennsylvania, New Jersey, Delaware, and New York. Their practice areas include casualty, commercial litigation, environmental, insurance coverage, maritime law, mass and toxic tort, patent and trademark law, products liability, sports and recreational law, and subrogation.
About Hollstein Keating Cattell Johnson & Goldstein PC
Hollstein Keating Cattell Johnson & Goldstein PC (http://www.hollsteinkeating.com) is a full service civil litigation firm with expertise in all aspects of property, casualty, and commercial matters. Hollstein Keating represents a wide range of clients with nationwide legal concerns - individuals, corporations, businesses, and Fortune 500 companies concentrated throughout the Northeast, specifically in Pennsylvania, New Jersey, Delaware, and New York. Their practice areas include casualty, commercial litigation, environmental, insurance coverage, maritime law, mass and toxic tort, patent and trademark law, products liability, sports and recreational law, and subrogation.
Websites:
http://www.nj-pa-patentattorney.com
http://www.hollsteinkeating.com
###
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Wednesday, January 27, 2010
NJ Businesses Face Unemployment Tax Hike
TRENTON – New Jersey businesses are facing a significant tax hike this summer if the federal government doesn’t help replenish the state’s unemployment fund, Gov. Chris Christie warned this week.
New Jersey’s Unemployment Insurance Fund will be $1.6 billion in debt by March, according to Christie. Business taxes are automatically increased by law when the fund’s balance goes below a certain level as measured every March.
The new Republican governor plans to ask the federal government to forgive loans that are keeping the fund solvent, but warned that there was no money in the state budget to stop the tax increase.
“I don’t have any choice but to allow [the tax] to kick in,” Christie said. “It’s a statutory requirement. If we get assistance, there still will be some measure of tax increase. The question is how much of a tax increase it will be on the businesses of New Jersey.”
In a worst-case scenario, employers could see an increase of up to $1,000 per employee in their unemployment tax starting July 1. Employees also pay into the unemployment fund, but are not facing a tax increase.
New Jersey has an estimated $1.3 billion deficit in the current fiscal year’s budget deficit and is an estimated $8.9 billion in the red for next year’s budget, which goes into effect in July.
According to figures released last week, New Jersey’s unemployment rate reached 10.1 percent in December, higher than the national average of 10 percent.
The fund is in such a precarious position because approximately $4.8 billion has been diverted for other purposes since 1992. Voters will have the ability to stop future raids through an amendment to the state’s constitution on November’s general election ballot.
New Jersey’s Unemployment Insurance Fund will be $1.6 billion in debt by March, according to Christie. Business taxes are automatically increased by law when the fund’s balance goes below a certain level as measured every March.
The new Republican governor plans to ask the federal government to forgive loans that are keeping the fund solvent, but warned that there was no money in the state budget to stop the tax increase.
“I don’t have any choice but to allow [the tax] to kick in,” Christie said. “It’s a statutory requirement. If we get assistance, there still will be some measure of tax increase. The question is how much of a tax increase it will be on the businesses of New Jersey.”
In a worst-case scenario, employers could see an increase of up to $1,000 per employee in their unemployment tax starting July 1. Employees also pay into the unemployment fund, but are not facing a tax increase.
New Jersey has an estimated $1.3 billion deficit in the current fiscal year’s budget deficit and is an estimated $8.9 billion in the red for next year’s budget, which goes into effect in July.
According to figures released last week, New Jersey’s unemployment rate reached 10.1 percent in December, higher than the national average of 10 percent.
The fund is in such a precarious position because approximately $4.8 billion has been diverted for other purposes since 1992. Voters will have the ability to stop future raids through an amendment to the state’s constitution on November’s general election ballot.
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Tuesday, January 26, 2010
No terrorism link apparent in New Jersey weapons arrest, FBI says
A man arrested after police found an arsenal of high-powered weapons and a map of a U.S. military base in his New Jersey hotel has no apparent ties to terrorism, authorities said Tuesday.
Lloyd R. Woodson, 43, was arraigned on two counts of unlawful possession of weapons, possessing prohibited weapons, possessing large capacity ammunition magazines, two counts of defaced firearms, obstruction of justice and resisting arrest.
Somerset County Judge John Pursel set bail at $75,000.
Woodson appeared angry and withdrawn in court, according to CNN's Deb Feyerick, who attended the arraignment. His hands and feet were shackled and he was escorted by two guards. Woodson kept his head down and barely acknowledged the judge, except for responding "yes" when asked if he understood English.
FBI special agent Bryan L. Travers said in a statement Tuesday that preliminary findings indicate that Woodson has no ties to known terrorist groups or a specific terrorism plot.
Federal investigators from the FBI and ATF continue to assist local law enforcement, and federal gun charges against Woodson may be considered, according to the statement.
Woodson, of Virginia, was arrested Monday after police responded to a call about a suspicious man in the Quick Chek convenience store in Branchburg, New Jersey, said local prosecutor Wayne J. Forrest.
Michael Murphy, the senior vice president for Quick Chek, said the employee who called 911 "prevented a bad situation and possible tragedy down the road."
The company is protecting the employee's identity for safety reasons, he said.
Murphy said Woodson did not buy anything in the store and may have drawn suspicion because he looked like he wanted to shoplift.
When officers arrived, Woodson ran into the woods. He was subdued after wrestling with officers, the statement said.
During the struggle, officers noticed that Woodson was wearing a bulletproof vest and carrying an assault rifle in his coat. Officers searched Woodson's hotel room and found another assault rifle, a grenade launcher, a police scanner, another bulletproof vest, a map of a U.S. military base, hundreds of rounds of ammunition and a Middle Eastern-style headdress, the statement said.
Woodson spent a brief time in the U.S. Navy, according to Navy spokesman Lt. Justin Cole. In February 1988 Woodson served on board the submarine tender USS Orion, Cole told CNN. He deserted eight months later, Cole said.
Woodson was taken into Navy custody in 1996 and discharged a month afterward, Cole added.
Lloyd R. Woodson, 43, was arraigned on two counts of unlawful possession of weapons, possessing prohibited weapons, possessing large capacity ammunition magazines, two counts of defaced firearms, obstruction of justice and resisting arrest.
Somerset County Judge John Pursel set bail at $75,000.
Woodson appeared angry and withdrawn in court, according to CNN's Deb Feyerick, who attended the arraignment. His hands and feet were shackled and he was escorted by two guards. Woodson kept his head down and barely acknowledged the judge, except for responding "yes" when asked if he understood English.
FBI special agent Bryan L. Travers said in a statement Tuesday that preliminary findings indicate that Woodson has no ties to known terrorist groups or a specific terrorism plot.
Federal investigators from the FBI and ATF continue to assist local law enforcement, and federal gun charges against Woodson may be considered, according to the statement.
Woodson, of Virginia, was arrested Monday after police responded to a call about a suspicious man in the Quick Chek convenience store in Branchburg, New Jersey, said local prosecutor Wayne J. Forrest.
Michael Murphy, the senior vice president for Quick Chek, said the employee who called 911 "prevented a bad situation and possible tragedy down the road."
The company is protecting the employee's identity for safety reasons, he said.
Murphy said Woodson did not buy anything in the store and may have drawn suspicion because he looked like he wanted to shoplift.
When officers arrived, Woodson ran into the woods. He was subdued after wrestling with officers, the statement said.
During the struggle, officers noticed that Woodson was wearing a bulletproof vest and carrying an assault rifle in his coat. Officers searched Woodson's hotel room and found another assault rifle, a grenade launcher, a police scanner, another bulletproof vest, a map of a U.S. military base, hundreds of rounds of ammunition and a Middle Eastern-style headdress, the statement said.
Woodson spent a brief time in the U.S. Navy, according to Navy spokesman Lt. Justin Cole. In February 1988 Woodson served on board the submarine tender USS Orion, Cole told CNN. He deserted eight months later, Cole said.
Woodson was taken into Navy custody in 1996 and discharged a month afterward, Cole added.
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Sunday, January 17, 2010
Right to Repair Act has to start over in N.J.
The New Jersey General Assembly passed its Right to Repair Act by more than a two-to-one margin, advancing the state bill further than ever before. However, the bill will have to be reintroduced and work its way through the legislative process because the New Jersey Senate ran out of time before taking up right to repair legislation.
According to the state legislature's Web site, the New Jersey Constitution "provides that each legislature is constituted for a term of two years, split into two annual sessions. Because the Constitution also specifies that all business from the first year may be continued into the second year, the distinction between the two annual sessions is more ceremonial than actual.
"The two-year legislative term begins at noon on the second Tuesday in January of each even-numbered year. At the end of the second year, all unfinished business expires."
Charles Bryant, executive director of the Alliance of Automotive Service Providers of NJ (AASP-NJ), was disappointed, but commended the New Jersey State Assembly "for having the courage to stand up to special interests and pass the Right to Repair Act out of their chamber.”
The bill had 10 Senate co-sponsors and was supported by such organizations as the American Automobile Association (AAA); the National Federation of Independent Businesses; New Jersey Citizen Action; the New Jersey Gasoline, Convenience Automotive Association; the New Jersey branch of the National Federation of Independent Business; the New Jersey Retail Merchants Association; and the Property Casualty Insurers Association of America.
“New Jersey consumers must have the option of taking their vehicle to a dealer or an independent repair facility of their choosing," says Fredrick Gruel, chairman of the AAA Clubs of New Jersey. "Whether they choose a dealer, an independent or, for that matter, if they do the repair themselves, it does not matter.
"But until they have that choice, they do not fully own their vehicle. The Right to Repair Act will provide that choice.”
The bill would have required vehicle manufacturers to make accurate information, tools and software needed to maintain and service late model vehicles easily accessible to repair shops.
“The Right to Repair Coalition wants to thank Assemblyman Reed Gusciora, prime-sponsor of Assembly Bill 803, 'Motor Vehicle Owners' Right to Repair Act,' and all of the co-sponsors for their hard work on behalf of New Jersey car owners to ensure that they would continue to enjoy a competitive vehicle repair market,” says Sal Risalvato, executive director of the NJGCA.
“The coalition hopes that next year, the Senate will take up the interests of motorists who have already been battered by a tough economy and move to pass the Right to Repair Act.”
According to the state legislature's Web site, the New Jersey Constitution "provides that each legislature is constituted for a term of two years, split into two annual sessions. Because the Constitution also specifies that all business from the first year may be continued into the second year, the distinction between the two annual sessions is more ceremonial than actual.
"The two-year legislative term begins at noon on the second Tuesday in January of each even-numbered year. At the end of the second year, all unfinished business expires."
Charles Bryant, executive director of the Alliance of Automotive Service Providers of NJ (AASP-NJ), was disappointed, but commended the New Jersey State Assembly "for having the courage to stand up to special interests and pass the Right to Repair Act out of their chamber.”
The bill had 10 Senate co-sponsors and was supported by such organizations as the American Automobile Association (AAA); the National Federation of Independent Businesses; New Jersey Citizen Action; the New Jersey Gasoline, Convenience Automotive Association; the New Jersey branch of the National Federation of Independent Business; the New Jersey Retail Merchants Association; and the Property Casualty Insurers Association of America.
“New Jersey consumers must have the option of taking their vehicle to a dealer or an independent repair facility of their choosing," says Fredrick Gruel, chairman of the AAA Clubs of New Jersey. "Whether they choose a dealer, an independent or, for that matter, if they do the repair themselves, it does not matter.
"But until they have that choice, they do not fully own their vehicle. The Right to Repair Act will provide that choice.”
The bill would have required vehicle manufacturers to make accurate information, tools and software needed to maintain and service late model vehicles easily accessible to repair shops.
“The Right to Repair Coalition wants to thank Assemblyman Reed Gusciora, prime-sponsor of Assembly Bill 803, 'Motor Vehicle Owners' Right to Repair Act,' and all of the co-sponsors for their hard work on behalf of New Jersey car owners to ensure that they would continue to enjoy a competitive vehicle repair market,” says Sal Risalvato, executive director of the NJGCA.
“The coalition hopes that next year, the Senate will take up the interests of motorists who have already been battered by a tough economy and move to pass the Right to Repair Act.”
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Thursday, January 14, 2010
Dramatic rise in NJ bankruptcies in 2009
The number of bankruptcies in New Jersey surged 35 percent in 2009, with businesses filing at an even faster rate, as the recession battered the economy and unemployment shot up.
Personal bankruptcies, which account for 96 percent of all state bankruptcies, were 35 percent higher last year than in 2008, according to figures released by the U.S. District Bankruptcy Court for New Jersey.
Business bankruptcies rose by 46 percent to 1,550, or about 30 a week, figures show.
In North Jersey, personal bankruptcies rose even faster than at the state level, with a jump of 56 percent in Bergen County over 2008 and a 39 percent leap in Passaic County.
Business bankruptcies in Bergen soared 46 percent over 2008, and the number in Passaic remained flat.
Eric R. Perkins, a Ridgewood bankruptcy attorney, said the struggle to pay off health care bills was a key driver in the rise of personal filings in 2009, as it was before the recession. But unemployment worsened the situation, as many people found themselves unable to pay their bills, and even employed people struggled to pay their mortgages.
"What people do is they lose their job, or they are unable to pay their mortgage, they use their credit card to pay daily expenses" and deplete their savings and cash paying the mortgage or health care costs, he said. "At some point, they run out of cash and can't do it anymore."
The figures were in line with national numbers reported by the Alexandria, Va.-based American Bankruptcy Institute. They showed personal bankruptcies rising by 32 percent to about 1.4 million.
Michael Sirota, a Hackensack corporate bankruptcy specialist, said the financial shocks in the fall of 2008, the slowing economy and the lack of credit forced many companies into bankruptcy. And some were pushed over the edge by lenders losing patience as they waited for payment, he said.
But the actual number of New Jersey business bankruptcies was likely far higher than reported, because many companies file in New York, where they do business, or in Delaware, where they are incorporated, he said. There also has been a rise in companies avoiding bankruptcy in order to cut time and expense and negotiating a restructuring with creditors, he said.
Both attorneys said they expect the numbers to go up this year, even if the economy improves, because it will happen too late to help many people and companies.
"There is always a lag," Perkins said. "There are people right now holding on for dear life, thinking that tomorrow is going to get better. But it doesn't."
The number of bankruptcies in New Jersey surged 35 percent in 2009, with businesses filing at an even faster rate, as the recession battered the economy and unemployment shot up.
Personal bankruptcies, which account for 96 percent of all state bankruptcies, were 35 percent higher last year than in 2008, according to figures released by the U.S. District Bankruptcy Court for New Jersey.
Business bankruptcies rose by 46 percent to 1,550, or about 30 a week, figures show.
In North Jersey, personal bankruptcies rose even faster than at the state level, with a jump of 56 percent in Bergen County over 2008 and a 39 percent leap in Passaic County.
Business bankruptcies in Bergen soared 46 percent over 2008, and the number in Passaic remained flat.
Eric R. Perkins, a Ridgewood bankruptcy attorney, said the struggle to pay off health care bills was a key driver in the rise of personal filings in 2009, as it was before the recession. But unemployment worsened the situation, as many people found themselves unable to pay their bills, and even employed people struggled to pay their mortgages.
"What people do is they lose their job, or they are unable to pay their mortgage, they use their credit card to pay daily expenses" and deplete their savings and cash paying the mortgage or health care costs, he said. "At some point, they run out of cash and can't do it anymore."
The figures were in line with national numbers reported by the Alexandria, Va.-based American Bankruptcy Institute. They showed personal bankruptcies rising by 32 percent to about 1.4 million.
Michael Sirota, a Hackensack corporate bankruptcy specialist, said the financial shocks in the fall of 2008, the slowing economy and the lack of credit forced many companies into bankruptcy. And some were pushed over the edge by lenders losing patience as they waited for payment, he said.
But the actual number of New Jersey business bankruptcies was likely far higher than reported, because many companies file in New York, where they do business, or in Delaware, where they are incorporated, he said. There also has been a rise in companies avoiding bankruptcy in order to cut time and expense and negotiating a restructuring with creditors, he said.
Both attorneys said they expect the numbers to go up this year, even if the economy improves, because it will happen too late to help many people and companies.
"There is always a lag," Perkins said. "There are people right now holding on for dear life, thinking that tomorrow is going to get better. But it doesn't."
Personal bankruptcies, which account for 96 percent of all state bankruptcies, were 35 percent higher last year than in 2008, according to figures released by the U.S. District Bankruptcy Court for New Jersey.
Business bankruptcies rose by 46 percent to 1,550, or about 30 a week, figures show.
In North Jersey, personal bankruptcies rose even faster than at the state level, with a jump of 56 percent in Bergen County over 2008 and a 39 percent leap in Passaic County.
Business bankruptcies in Bergen soared 46 percent over 2008, and the number in Passaic remained flat.
Eric R. Perkins, a Ridgewood bankruptcy attorney, said the struggle to pay off health care bills was a key driver in the rise of personal filings in 2009, as it was before the recession. But unemployment worsened the situation, as many people found themselves unable to pay their bills, and even employed people struggled to pay their mortgages.
"What people do is they lose their job, or they are unable to pay their mortgage, they use their credit card to pay daily expenses" and deplete their savings and cash paying the mortgage or health care costs, he said. "At some point, they run out of cash and can't do it anymore."
The figures were in line with national numbers reported by the Alexandria, Va.-based American Bankruptcy Institute. They showed personal bankruptcies rising by 32 percent to about 1.4 million.
Michael Sirota, a Hackensack corporate bankruptcy specialist, said the financial shocks in the fall of 2008, the slowing economy and the lack of credit forced many companies into bankruptcy. And some were pushed over the edge by lenders losing patience as they waited for payment, he said.
But the actual number of New Jersey business bankruptcies was likely far higher than reported, because many companies file in New York, where they do business, or in Delaware, where they are incorporated, he said. There also has been a rise in companies avoiding bankruptcy in order to cut time and expense and negotiating a restructuring with creditors, he said.
Both attorneys said they expect the numbers to go up this year, even if the economy improves, because it will happen too late to help many people and companies.
"There is always a lag," Perkins said. "There are people right now holding on for dear life, thinking that tomorrow is going to get better. But it doesn't."
The number of bankruptcies in New Jersey surged 35 percent in 2009, with businesses filing at an even faster rate, as the recession battered the economy and unemployment shot up.
Personal bankruptcies, which account for 96 percent of all state bankruptcies, were 35 percent higher last year than in 2008, according to figures released by the U.S. District Bankruptcy Court for New Jersey.
Business bankruptcies rose by 46 percent to 1,550, or about 30 a week, figures show.
In North Jersey, personal bankruptcies rose even faster than at the state level, with a jump of 56 percent in Bergen County over 2008 and a 39 percent leap in Passaic County.
Business bankruptcies in Bergen soared 46 percent over 2008, and the number in Passaic remained flat.
Eric R. Perkins, a Ridgewood bankruptcy attorney, said the struggle to pay off health care bills was a key driver in the rise of personal filings in 2009, as it was before the recession. But unemployment worsened the situation, as many people found themselves unable to pay their bills, and even employed people struggled to pay their mortgages.
"What people do is they lose their job, or they are unable to pay their mortgage, they use their credit card to pay daily expenses" and deplete their savings and cash paying the mortgage or health care costs, he said. "At some point, they run out of cash and can't do it anymore."
The figures were in line with national numbers reported by the Alexandria, Va.-based American Bankruptcy Institute. They showed personal bankruptcies rising by 32 percent to about 1.4 million.
Michael Sirota, a Hackensack corporate bankruptcy specialist, said the financial shocks in the fall of 2008, the slowing economy and the lack of credit forced many companies into bankruptcy. And some were pushed over the edge by lenders losing patience as they waited for payment, he said.
But the actual number of New Jersey business bankruptcies was likely far higher than reported, because many companies file in New York, where they do business, or in Delaware, where they are incorporated, he said. There also has been a rise in companies avoiding bankruptcy in order to cut time and expense and negotiating a restructuring with creditors, he said.
Both attorneys said they expect the numbers to go up this year, even if the economy improves, because it will happen too late to help many people and companies.
"There is always a lag," Perkins said. "There are people right now holding on for dear life, thinking that tomorrow is going to get better. But it doesn't."
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Monday, January 11, 2010
Legislature votes on several business bills
The Legislature will vote Monday on several bills that would impact the state’s economy — from requiring restaurant chains with 20 or more New Jersey locations to post calorie counts on their menus, to giving builders a 30-month building permit extension to allow them more time to launch projects stalled by the real estate slump.
The permit bill is a further extension of the 2008 Permit Extension Act. Instead of expiring June 30, as planned, building permits would receive another extension to Dec. 31, 2012.
The New Jersey Restaurant Association opposes the calorie-posting bill, and has urged the Legislature to hold off while Congress considers national restaurant nutrition-information legislation.
Lawmakers also will consider a bill allowing undocumented immigrants to pay in-state tuition to attend public colleges in New Jersey, provided they graduated from a New Jersey high school, received a state high school equivalent diploma, or attended high school in New Jersey for three or more years.
Out-of-state tuition is significantly higher than in-state tuition. At Rutgers University, an undergraduate who is a resident of New Jersey is paying full-time tuition this year of $9,546, plus mandatory fees of $2,340, for a total of $11,886. Out-of-state tuition is $20,178, for a total of $22,518, including mandatory fees.
The medical use of marijuana also would be legalized under a bill scheduled for a Monday vote.
Also before the Legislature is a bill mandating outreach and training programs for minorities and women seeking constructions contracts, and a bill requiring prevailing wages to be paid on new construction financed by loans from the state Housing and Mortgage Finance Agency.
The permit bill is a further extension of the 2008 Permit Extension Act. Instead of expiring June 30, as planned, building permits would receive another extension to Dec. 31, 2012.
The New Jersey Restaurant Association opposes the calorie-posting bill, and has urged the Legislature to hold off while Congress considers national restaurant nutrition-information legislation.
Lawmakers also will consider a bill allowing undocumented immigrants to pay in-state tuition to attend public colleges in New Jersey, provided they graduated from a New Jersey high school, received a state high school equivalent diploma, or attended high school in New Jersey for three or more years.
Out-of-state tuition is significantly higher than in-state tuition. At Rutgers University, an undergraduate who is a resident of New Jersey is paying full-time tuition this year of $9,546, plus mandatory fees of $2,340, for a total of $11,886. Out-of-state tuition is $20,178, for a total of $22,518, including mandatory fees.
The medical use of marijuana also would be legalized under a bill scheduled for a Monday vote.
Also before the Legislature is a bill mandating outreach and training programs for minorities and women seeking constructions contracts, and a bill requiring prevailing wages to be paid on new construction financed by loans from the state Housing and Mortgage Finance Agency.
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N.J. Lawmakers Approve Medical Marijuana
New Jersey lawmakers approved a bill that would make it the 14th U.S. state to allow doctors to prescribe marijuana for patients suffering from cancer and other debilitating diseases.
The legislation passed the Assembly 48-16 with one abstention. The measure already cleared the state Senate, which must concur with restrictions in the Assembly version, including a list of ailments for which the drug can be prescribed and a prohibition on the growing of marijuana by patients.
“This is a wonderful beginning,” said Nancy Fedder, 62, of Hillsborough, who spoke outside the Assembly chamber and said she has been illegally smoking marijuana for more than a decade to alleviate pain from multiple sclerosis. “It’s something that needed to happen a long time ago; sometimes I have to go to bed and stay there for days, and when I smoke marijuana the pain comes right down.”
The plan was among 100 today that went before both houses of the Legislature in the final day of its session. The Senate and the Assembly, which are both controlled by Democrats, are getting ready to share power with the first Republican governor elected since 1997.
Governor Jon Corzine, 63, a Democrat who leaves office Jan. 19, supports medical marijuana and will review the measure, said his spokesman, Robert Corrales. Governor-elect Christopher Christie, 47, a Republican who was the state’s former U.S. attorney, said he wants the bill to tie use to a strict list of diseases.
Marijuana, produced from the cannabis plant, can be smoked or ingested. Its recreational use is illegal in the U.S.
New Jersey’s bill would allow patients to purchase as much as 2 ounces of marijuana a month. Six state-run dispensaries would be established, with the Department of Health monitoring the program and recommending in the future whether to expand access.
By Terrence Dopp
The legislation passed the Assembly 48-16 with one abstention. The measure already cleared the state Senate, which must concur with restrictions in the Assembly version, including a list of ailments for which the drug can be prescribed and a prohibition on the growing of marijuana by patients.
“This is a wonderful beginning,” said Nancy Fedder, 62, of Hillsborough, who spoke outside the Assembly chamber and said she has been illegally smoking marijuana for more than a decade to alleviate pain from multiple sclerosis. “It’s something that needed to happen a long time ago; sometimes I have to go to bed and stay there for days, and when I smoke marijuana the pain comes right down.”
The plan was among 100 today that went before both houses of the Legislature in the final day of its session. The Senate and the Assembly, which are both controlled by Democrats, are getting ready to share power with the first Republican governor elected since 1997.
Governor Jon Corzine, 63, a Democrat who leaves office Jan. 19, supports medical marijuana and will review the measure, said his spokesman, Robert Corrales. Governor-elect Christopher Christie, 47, a Republican who was the state’s former U.S. attorney, said he wants the bill to tie use to a strict list of diseases.
Marijuana, produced from the cannabis plant, can be smoked or ingested. Its recreational use is illegal in the U.S.
New Jersey’s bill would allow patients to purchase as much as 2 ounces of marijuana a month. Six state-run dispensaries would be established, with the Department of Health monitoring the program and recommending in the future whether to expand access.
By Terrence Dopp
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Sunday, January 10, 2010
New Jersey Assembly Passes One-Gun-A-Month Reform Bill
Corzine’s hastily written and poorly crafted legislation infringing on your gun rights gets no better...
Trenton, NJ --(AmmoLand.com)- Yesterday, the New Jersey Assembly voted unanimously (73-0-3) to approve S3104/A4361.
These bills were drafted in response to recommendations put forth by the Firearms Task Force created after the midnight passage of New Jersey’s gun rationing law.
S3104/A4361 now head to the desk of Governor Jon Corzine (D) for his consideration.
While NRA attempted to create a more robust exemption for gun owners, these requests fell upon deaf ears and the bill passed as written without creating changes beneficial to New Jersey’s law-abiding firearm owners as promised by the Firearms Task Force.
Proponents contend this measure would address the problems with New Jersey’s “one-gun-a-month” law; however, it falls far short. While it would, in limited circumstances, allow a law-abiding person to purchase multiple handguns, an individual would only be able to do so after filing a formal application with the State Police. In addition, the individual would need to justify their “need” to purchase these firearms together and why it would not be “feasible or practical” to purchase the firearms separately.
Thanks to all of the NRA members who contacted their legislators requesting that they broaden the exemptions to New Jersey’s “one-gun-a-month” law and for continuing the fight against further encroachment of our Second Amendment rights and freedoms in the Garden State.
About:
Established in 1871, the National Rifle Association is America’s oldest civil rights and sportsmen’s group. Four million members strong, NRA continues its mission to uphold Second Amendment rights and to advocate enforcement of existing laws against violent offenders to reduce crime. The Association remains the nation’s leader in firearm education and training for law-abiding gun owners, law enforcement and the military. Visit: www.nra.org
Trenton, NJ --(AmmoLand.com)- Yesterday, the New Jersey Assembly voted unanimously (73-0-3) to approve S3104/A4361.
These bills were drafted in response to recommendations put forth by the Firearms Task Force created after the midnight passage of New Jersey’s gun rationing law.
S3104/A4361 now head to the desk of Governor Jon Corzine (D) for his consideration.
While NRA attempted to create a more robust exemption for gun owners, these requests fell upon deaf ears and the bill passed as written without creating changes beneficial to New Jersey’s law-abiding firearm owners as promised by the Firearms Task Force.
Proponents contend this measure would address the problems with New Jersey’s “one-gun-a-month” law; however, it falls far short. While it would, in limited circumstances, allow a law-abiding person to purchase multiple handguns, an individual would only be able to do so after filing a formal application with the State Police. In addition, the individual would need to justify their “need” to purchase these firearms together and why it would not be “feasible or practical” to purchase the firearms separately.
Thanks to all of the NRA members who contacted their legislators requesting that they broaden the exemptions to New Jersey’s “one-gun-a-month” law and for continuing the fight against further encroachment of our Second Amendment rights and freedoms in the Garden State.
About:
Established in 1871, the National Rifle Association is America’s oldest civil rights and sportsmen’s group. Four million members strong, NRA continues its mission to uphold Second Amendment rights and to advocate enforcement of existing laws against violent offenders to reduce crime. The Association remains the nation’s leader in firearm education and training for law-abiding gun owners, law enforcement and the military. Visit: www.nra.org
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NJ Toughens Jury Tampering Law
TRENTON, N.J. (AP) ― New Jersey has toughened its jury tampering laws in regards to court proceedings that involve serious crimes such as murder, kidnapping and sexual assault.
A measure signed into law Saturday makes jury tampering a first-degree offense if someone uses threats or force against an official involved in the court proceedings of crimes included in the state's "No Early Release Act." If convicted, offenders will face jail terms of 10 to 20 years and up to $200,000 in fines.
The measure (A-3526), which took effect immediately, was part of a major anti-crime initiative intended, among other things, to target gang activity. It was signed into law by Senate President Richard Codey, who was acting governor while Gov. Jon Corzine was out of state.
Codey had been one of the bill's primary sponsors in the senate.
A measure signed into law Saturday makes jury tampering a first-degree offense if someone uses threats or force against an official involved in the court proceedings of crimes included in the state's "No Early Release Act." If convicted, offenders will face jail terms of 10 to 20 years and up to $200,000 in fines.
The measure (A-3526), which took effect immediately, was part of a major anti-crime initiative intended, among other things, to target gang activity. It was signed into law by Senate President Richard Codey, who was acting governor while Gov. Jon Corzine was out of state.
Codey had been one of the bill's primary sponsors in the senate.
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Wednesday, January 6, 2010
Undocumented aliens in New Jersey make heartfelt plea as educational reform bill moves forward
The year began with some hope for the future as the Assembly Appropriations Committee on Monday released legislation that would allow some undocumented locals to pay in-state tuition at New Jersey's state colleges and universities. Assembly members Gordon Johnson, Valerie Vainieri Huttle, and Nilsa Cruz-Perez served as the key players in endorsing this educational reform.
"This is good news for me and my family. I want to study medicine and make a difference in this country but my parents cannot afford college so it made no sense for me to even bother but now I feel hopeful," says 16-year-old Christian Perez.
Perez is just one of the many undocumented immigrants who have been living in this country for decades and is being denied an educational future. "I still think that I would have to work for minimum wage like my uncles and watch my other friends move on with their lives, it is a bad feeling," he added.
According to statistics from the Jersey based website, Statemaster.com, New Jersey ranks eighth in the county with an estimated 221,000 illegal immigrants living in the Garden State since the year 2000. Further studies indicate that a quarter of these individuals are children who have migrated with their parents at a young age.
"I work so hard in high school and I want to be the first one in my family to have a college education. I have never been to my homeland and the only place I can call home is America...we should be treated like the others," said another student who identified himself as Jorge.
"An uncertain immigration status has left some of our brightest students unable to continue their education, cutting them off from the American dream," said Vainieri Huttle (D-Bergen).
Other lawmakers said that a large amount of undocumented students migrated at a very young age and their parents never standardized their immigration status and this prevents them from furthering their education. Under this system, these students are left with no other choice than to settle with minimum wage or off the books jobs.
"So many of my friends dropped out of college because it was just too much money for books, tuition and other costs, its frustrating," Jorge said.
"Nearly a century after many of our immigrant parents and grandparents were blocked from jobs simply because they were Irish or Italian; our laws effectively hang invisible signs at the college gates that say immigrants aren't welcome. We should be encouraging students who want to go to college, not blocking them," Huttle added.
Opponents of the bill argued that the state should not in any way contribute to illegal immigration.
"My colleagues need to realize that New Jersey is broke before voting at the last minute to grant another giveaway that legal and hardworking families cannot afford to provide," said Assemblyman Richard Merkt (R., Morris). "This proposal is disrespectful to those families who play by the rules, but just squeak by sending their children to college with hopes of a better future. We should be focused on helping these families, not adding to their burden."
Under this legislation, students who qualify for in-state tuition rates would have attended a New Jersey high school for at least three years and received a diploma. Also, in the future, they would be allowed to make a pledge through an affidavit where their status would be legalized.
"I have three younger sisters who came here a long time ago with my parents and if I get to go to college that means there is a way for them too and we can get to become citizens somehow," Perez said.
Currently, 11 states permit illegal immigrants to pay in-state tuition and in New Jersey this can be up to half the cost of out-of-state rates. Since 2002, advocates in New Jersey have been working feverishly to advance this legislation.
In order for the bill to be passed it must be voted on by the full Assembly and Senate then signed by the governor in order to become law
"We moved here because of our parents and we cannot go back; the most that can happen is that we now live comfortable and have a good education," said Melissa Martinez, a native from Columbia.
"This is good news for me and my family. I want to study medicine and make a difference in this country but my parents cannot afford college so it made no sense for me to even bother but now I feel hopeful," says 16-year-old Christian Perez.
Perez is just one of the many undocumented immigrants who have been living in this country for decades and is being denied an educational future. "I still think that I would have to work for minimum wage like my uncles and watch my other friends move on with their lives, it is a bad feeling," he added.
According to statistics from the Jersey based website, Statemaster.com, New Jersey ranks eighth in the county with an estimated 221,000 illegal immigrants living in the Garden State since the year 2000. Further studies indicate that a quarter of these individuals are children who have migrated with their parents at a young age.
"I work so hard in high school and I want to be the first one in my family to have a college education. I have never been to my homeland and the only place I can call home is America...we should be treated like the others," said another student who identified himself as Jorge.
"An uncertain immigration status has left some of our brightest students unable to continue their education, cutting them off from the American dream," said Vainieri Huttle (D-Bergen).
Other lawmakers said that a large amount of undocumented students migrated at a very young age and their parents never standardized their immigration status and this prevents them from furthering their education. Under this system, these students are left with no other choice than to settle with minimum wage or off the books jobs.
"So many of my friends dropped out of college because it was just too much money for books, tuition and other costs, its frustrating," Jorge said.
"Nearly a century after many of our immigrant parents and grandparents were blocked from jobs simply because they were Irish or Italian; our laws effectively hang invisible signs at the college gates that say immigrants aren't welcome. We should be encouraging students who want to go to college, not blocking them," Huttle added.
Opponents of the bill argued that the state should not in any way contribute to illegal immigration.
"My colleagues need to realize that New Jersey is broke before voting at the last minute to grant another giveaway that legal and hardworking families cannot afford to provide," said Assemblyman Richard Merkt (R., Morris). "This proposal is disrespectful to those families who play by the rules, but just squeak by sending their children to college with hopes of a better future. We should be focused on helping these families, not adding to their burden."
Under this legislation, students who qualify for in-state tuition rates would have attended a New Jersey high school for at least three years and received a diploma. Also, in the future, they would be allowed to make a pledge through an affidavit where their status would be legalized.
"I have three younger sisters who came here a long time ago with my parents and if I get to go to college that means there is a way for them too and we can get to become citizens somehow," Perez said.
Currently, 11 states permit illegal immigrants to pay in-state tuition and in New Jersey this can be up to half the cost of out-of-state rates. Since 2002, advocates in New Jersey have been working feverishly to advance this legislation.
In order for the bill to be passed it must be voted on by the full Assembly and Senate then signed by the governor in order to become law
"We moved here because of our parents and we cannot go back; the most that can happen is that we now live comfortable and have a good education," said Melissa Martinez, a native from Columbia.
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Thursday, December 31, 2009
Mandatory CLE Going Into Effect in New Jersey
Mandatory continuing legal education is here. Starting Jan. 1, every lawyer licensed to practice in New Jersey, including judges, law school professors and limited-license in-house counsel, must take a minimum of 24 hours of continuing legal education courses every two years, the state Supreme Court declares in a newly adopted rule.
Rule 1:42, which was proposed and put out for public comment in October, is the culmination of a two-year long study by the court's Ad Hoc Committee on Continuing Legal Education. [See notice to the Bar.]
Under the rule, lawyers may satisfy the requirements with all "alternative verifiable learning formats," including videotape, satellite simulcast and the Internet. Reciprocal credit will be given for courses taken from other jurisdictions.
Twelve credit hours can be carried over from one cycle to the next, except for courses in the area of ethics or professionalism, which must make up four of the requisite 24 credits in every cycle. Lawyers who serve on a district ethics committee will get credit for two of those four hours.
The court also abolished outright the Skills and Methods Course, until now required of all newly admitted attorneys. But new admittees will have to "bridge the gap" during their first two-year cycle by choosing subjects from a special list.
Compliance with mandatory continuing legal education, or MCLE, will be on the honor system, with lawyers required to certify every two years that they have fulfilled their obligation. They must also "maintain all necessary records and documentation to demonstrate such compliance in accordance with regulations adopted under these Rules."
Self-reporting, which was favored by the State Bar Association, was not part of the MCLE system as originally proposed. The ad hoc committee, chaired by former N.J. Supreme Court Justice Peter Verniero, wanted a "transcript method," a central uniform tracking system with providers sending in attendance records. Another rejected idea, suggested by the Institute for Continuing Legal Education, the state's largest single provider of such services, would have put ICLE in charge of tracking compliance.
The self-monitoring will cost lawyers $4 per year, which will be added to the annual attorney registration fee. The court said the money was needed because under the transcript method, it could have collected up to $2 per credit for out-of-state courses or those using alternative learning formats, money foregone under the self-reporting approach. So it imposed the $4 fee to pay for staff to administer MCLE and for such costs as a computer database and tracking system.
Extensions of time to comply will be available on a case-by-case basis "for good cause shown," including illness.
Though the two-year cycle will not start until Jan. 1, 2010, lawyers are entitled to credit for certain courses taken as far back as Jan. 1, 2009. The retroactive credit, which was announced by the court on Aug. 13, is available for courses taken to become a certified attorney, skills and methods courses, out-of state CLE courses and possibly others.
The court also created an 11-member Board on Continuing Legal Education, chaired by Justice Roberto Rivera-Soto, that will administer the program and promulgate the governing regulations. Board members, who serve staggered, three-year terms, are immunized from suit over their board activities.
The board's duties include deciding which courses and activities qualify for credit, designating education providers and setting the fees that will be charged to attorneys and providers to fund the administration of the program. The board has instructions to revisit the $4 fee after the first two years and decide if an annual assessment is still needed.
To make sure MCLE is up and running as of Jan. 1, the board is authorized to act before it adopts controlling regulations. For instance, it can determine the MCLE subject areas and what credit to give for completed skills and methods courses. But until it puts rules in place, it can only approve courses that require attorney attendance, ruling out online instruction for the interim.
Verniero, now with Sills Cummis & Gross in Newark, says "I feel very good about the end result" and he praised the court, saying it "took the time necessary to create an ad hoc committee to review various proposals and to be very comprehensive in its approach."
State Bar president Allen Etish released a statement saying the association is proud the final rule incorporated many of the bar association's recommendations, "most notably that attorneys are allowed to track their own coursework," and it "will be looking for ways to provide our members additional opportunities to accumulate meaningful and affordable CLE credits through the programming of our sections, committees, and at our Mid-Year and Annual Meetings."
With the adoption of R. 1:42, New Jersey joins 42 other states, according to the American Bar Association, that require some form of continuing legal education.
By Mary Pat Gallagher
Rule 1:42, which was proposed and put out for public comment in October, is the culmination of a two-year long study by the court's Ad Hoc Committee on Continuing Legal Education. [See notice to the Bar.]
Under the rule, lawyers may satisfy the requirements with all "alternative verifiable learning formats," including videotape, satellite simulcast and the Internet. Reciprocal credit will be given for courses taken from other jurisdictions.
Twelve credit hours can be carried over from one cycle to the next, except for courses in the area of ethics or professionalism, which must make up four of the requisite 24 credits in every cycle. Lawyers who serve on a district ethics committee will get credit for two of those four hours.
The court also abolished outright the Skills and Methods Course, until now required of all newly admitted attorneys. But new admittees will have to "bridge the gap" during their first two-year cycle by choosing subjects from a special list.
Compliance with mandatory continuing legal education, or MCLE, will be on the honor system, with lawyers required to certify every two years that they have fulfilled their obligation. They must also "maintain all necessary records and documentation to demonstrate such compliance in accordance with regulations adopted under these Rules."
Self-reporting, which was favored by the State Bar Association, was not part of the MCLE system as originally proposed. The ad hoc committee, chaired by former N.J. Supreme Court Justice Peter Verniero, wanted a "transcript method," a central uniform tracking system with providers sending in attendance records. Another rejected idea, suggested by the Institute for Continuing Legal Education, the state's largest single provider of such services, would have put ICLE in charge of tracking compliance.
The self-monitoring will cost lawyers $4 per year, which will be added to the annual attorney registration fee. The court said the money was needed because under the transcript method, it could have collected up to $2 per credit for out-of-state courses or those using alternative learning formats, money foregone under the self-reporting approach. So it imposed the $4 fee to pay for staff to administer MCLE and for such costs as a computer database and tracking system.
Extensions of time to comply will be available on a case-by-case basis "for good cause shown," including illness.
Though the two-year cycle will not start until Jan. 1, 2010, lawyers are entitled to credit for certain courses taken as far back as Jan. 1, 2009. The retroactive credit, which was announced by the court on Aug. 13, is available for courses taken to become a certified attorney, skills and methods courses, out-of state CLE courses and possibly others.
The court also created an 11-member Board on Continuing Legal Education, chaired by Justice Roberto Rivera-Soto, that will administer the program and promulgate the governing regulations. Board members, who serve staggered, three-year terms, are immunized from suit over their board activities.
The board's duties include deciding which courses and activities qualify for credit, designating education providers and setting the fees that will be charged to attorneys and providers to fund the administration of the program. The board has instructions to revisit the $4 fee after the first two years and decide if an annual assessment is still needed.
To make sure MCLE is up and running as of Jan. 1, the board is authorized to act before it adopts controlling regulations. For instance, it can determine the MCLE subject areas and what credit to give for completed skills and methods courses. But until it puts rules in place, it can only approve courses that require attorney attendance, ruling out online instruction for the interim.
Verniero, now with Sills Cummis & Gross in Newark, says "I feel very good about the end result" and he praised the court, saying it "took the time necessary to create an ad hoc committee to review various proposals and to be very comprehensive in its approach."
State Bar president Allen Etish released a statement saying the association is proud the final rule incorporated many of the bar association's recommendations, "most notably that attorneys are allowed to track their own coursework," and it "will be looking for ways to provide our members additional opportunities to accumulate meaningful and affordable CLE credits through the programming of our sections, committees, and at our Mid-Year and Annual Meetings."
With the adoption of R. 1:42, New Jersey joins 42 other states, according to the American Bar Association, that require some form of continuing legal education.
By Mary Pat Gallagher
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Monday, December 28, 2009
New Jersey lawmaker targets tax exclusions
Every year, New Jersey gives away millions, perhaps billions, of dollars through tax credits, deductions, and exemptions collectively known as tax expenditures.
The tax breaks include everything from exempting employee-retirement-fund contributions from income taxes to special tax credits for certain corporations.
While many - and perhaps even all - might advance worthy goals, no one knows how much New Jersey is spending through these tax expenditures.
That is because the state is one of nine that offer no public accounting of such spending.
Sen. Barbara Buono (D., Middlesex), chairwoman of the Senate Budget and Appropriations Committee, wants that to change.
Buono introduced a bill earlier this month to require that the governor's annual budget message include a state tax-expenditure report, including a list of the state's tax credits, deductions, and exemptions, and how much each costs the state. She said the measure was especially crucial now, in light of the state's dire fiscal situation.
"It's another form of spending, and it's revenue forgone," Buono said. "It doesn't receive the level of scrutiny that direct expenditures do. The danger is most of these are written into the tax code where they are continued indefinitely, unlike annual appropriations, which usually last one year."
Buono said she planned to post the bill, which she said was based on the best practices identified in a report by the Center on Budget and Policy Priorities on tax-expenditure reports, for discussion when the budget committee meets on Jan. 4.
Most other states and the federal government produce tax-expenditure reports, though they vary widely in quality.
The reports help lawmakers and the public keep track of forgone revenues that otherwise might get lost in the shuffle of the tax code.
The tax breaks can amount to big money: Washington state has reported a loss of nearly $99 billion a year in state and local tax expenditures and Oregon nearly $29 billion, according to Mary Forsberg, interim president of New Jersey Policy Perspective, which has argued for years that New Jersey should require a tax-expenditure report. Pennsylvania's most recent tax-expenditure report runs more than 100 pages.
As states throughout the country try to replace dramatically fallen revenue, lawmakers in at least one, Oklahoma, have targeted tax breaks as a potential source of new funding. Among the legislators already in support of Buono's bill is Sen. Shirley Turner (D., Mercer).
Turner sponsored a bill, signed by Gov. Corzine in November 2007, to require the state treasurer to produce an annual report with information on development subsidies, a small subset of the information Buono's bill seeks.
But the treasurer has never produced the report required by the law, Turner and Buono both say. The office of Treasurer R. David Rousseau did not return calls for comment Thursday.
Turner said she wrote to the treasurer in August and again Wednesday asking about the report but had received no response.
"It is very disappointing as well as frustrating when there are laws on the books that are being ignored, and the treasurer doesn't seem to think that it's important to comply with something as important as millions and millions of taxpayer dollars that are being given to corporations with no accountability," Turner said. "I think taxpayers have a right to know exactly how their dollars are being spent."
Turner said she was inspired to create the law after hearing about a company that received state subsidies to create jobs in New Jersey that moved to New York City before fulfilling its obligations.
"They were taking the money, and they were running," Turner said.
Forsberg, of New Jersey Policy Perspective, said tax-expenditure reports are critical to understanding how the state allocates its resources. Every dollar of forgone revenue can mean higher taxes for someone else, or fewer services.
"It's important for people to realize that the state is losing money as a result of decisions that are never revisited," Forsberg said.
One example of a tax expenditure that is costing state taxpayers a significant amount of money is a long-standing agreement between New Jersey and New York regarding residents of one state who work in the other, Forsberg said. Under the agreement, residents pay income taxes to the state where they work. Forsberg said that in 2004, when the numbers were last available, the agreement cost New Jersey about $1.5 billion a year, a number she said was likely higher now.
Most of the people who live in New Jersey but work in New York pay more to New York than they would to New Jersey, which means that if New Jersey could end or rework the agreement, the state could receive more in income taxes while its individual residents would pay less, Forsberg said.
"Considering that income taxes in New Jersey are dedicated to property-tax relief, that's a lot of money that would be a very helpful thing for New Jersey to have," Forsberg said.
According to the Treasury Department, New Jersey has never done a formal tax-expenditure report.
In 2006, the state Division of Taxation compiled a list of many tax expenditures, finding 121 sales-tax exclusions, 44 gross-personal-income-tax exclusions, and 28 corporate-business-tax exclusions. The list did not attempt to estimate what each exclusion was costing taxpayers.
By Adrienne Lu
The tax breaks include everything from exempting employee-retirement-fund contributions from income taxes to special tax credits for certain corporations.
While many - and perhaps even all - might advance worthy goals, no one knows how much New Jersey is spending through these tax expenditures.
That is because the state is one of nine that offer no public accounting of such spending.
Sen. Barbara Buono (D., Middlesex), chairwoman of the Senate Budget and Appropriations Committee, wants that to change.
Buono introduced a bill earlier this month to require that the governor's annual budget message include a state tax-expenditure report, including a list of the state's tax credits, deductions, and exemptions, and how much each costs the state. She said the measure was especially crucial now, in light of the state's dire fiscal situation.
"It's another form of spending, and it's revenue forgone," Buono said. "It doesn't receive the level of scrutiny that direct expenditures do. The danger is most of these are written into the tax code where they are continued indefinitely, unlike annual appropriations, which usually last one year."
Buono said she planned to post the bill, which she said was based on the best practices identified in a report by the Center on Budget and Policy Priorities on tax-expenditure reports, for discussion when the budget committee meets on Jan. 4.
Most other states and the federal government produce tax-expenditure reports, though they vary widely in quality.
The reports help lawmakers and the public keep track of forgone revenues that otherwise might get lost in the shuffle of the tax code.
The tax breaks can amount to big money: Washington state has reported a loss of nearly $99 billion a year in state and local tax expenditures and Oregon nearly $29 billion, according to Mary Forsberg, interim president of New Jersey Policy Perspective, which has argued for years that New Jersey should require a tax-expenditure report. Pennsylvania's most recent tax-expenditure report runs more than 100 pages.
As states throughout the country try to replace dramatically fallen revenue, lawmakers in at least one, Oklahoma, have targeted tax breaks as a potential source of new funding. Among the legislators already in support of Buono's bill is Sen. Shirley Turner (D., Mercer).
Turner sponsored a bill, signed by Gov. Corzine in November 2007, to require the state treasurer to produce an annual report with information on development subsidies, a small subset of the information Buono's bill seeks.
But the treasurer has never produced the report required by the law, Turner and Buono both say. The office of Treasurer R. David Rousseau did not return calls for comment Thursday.
Turner said she wrote to the treasurer in August and again Wednesday asking about the report but had received no response.
"It is very disappointing as well as frustrating when there are laws on the books that are being ignored, and the treasurer doesn't seem to think that it's important to comply with something as important as millions and millions of taxpayer dollars that are being given to corporations with no accountability," Turner said. "I think taxpayers have a right to know exactly how their dollars are being spent."
Turner said she was inspired to create the law after hearing about a company that received state subsidies to create jobs in New Jersey that moved to New York City before fulfilling its obligations.
"They were taking the money, and they were running," Turner said.
Forsberg, of New Jersey Policy Perspective, said tax-expenditure reports are critical to understanding how the state allocates its resources. Every dollar of forgone revenue can mean higher taxes for someone else, or fewer services.
"It's important for people to realize that the state is losing money as a result of decisions that are never revisited," Forsberg said.
One example of a tax expenditure that is costing state taxpayers a significant amount of money is a long-standing agreement between New Jersey and New York regarding residents of one state who work in the other, Forsberg said. Under the agreement, residents pay income taxes to the state where they work. Forsberg said that in 2004, when the numbers were last available, the agreement cost New Jersey about $1.5 billion a year, a number she said was likely higher now.
Most of the people who live in New Jersey but work in New York pay more to New York than they would to New Jersey, which means that if New Jersey could end or rework the agreement, the state could receive more in income taxes while its individual residents would pay less, Forsberg said.
"Considering that income taxes in New Jersey are dedicated to property-tax relief, that's a lot of money that would be a very helpful thing for New Jersey to have," Forsberg said.
According to the Treasury Department, New Jersey has never done a formal tax-expenditure report.
In 2006, the state Division of Taxation compiled a list of many tax expenditures, finding 121 sales-tax exclusions, 44 gross-personal-income-tax exclusions, and 28 corporate-business-tax exclusions. The list did not attempt to estimate what each exclusion was costing taxpayers.
By Adrienne Lu
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Friday, December 4, 2009
New Jersey Losing $22,000-a-Day With Swap for Bonds Never Sold
New Jersey taxpayers are being saddled with a bill of about $657,000 a month from Bank of Montreal for an interest-rate swap approved by state officials and linked to bonds that were never sold.
The 11th-largest U.S. state by population, which is cutting expenses to close a $1 billion budget deficit, will pay Canada’s oldest lender $23.5 million. The sum, about the same as the salaries for 113 teachers over three years, will allow it to avoid a $50 million penalty for canceling the contract, which was tied to planned sales of school-construction bonds.
The interest rate swap, an agreement between borrowers to exchange fixed and variable-rate payments on a set amount of debt, was arranged in 2004 to protect taxpayers against rising borrowing costs. The strategy backfired after officials decided against issuing the securities.
“This is a classic case of a strategic error,” said Robert Brooks, a finance professor at the University of Alabama- Tuscaloosa and author of a book on derivatives. “It’s arrogant to believe that you have such a command of the future that you know with certainty what is going to happen.”
The payments, which work out to $21,892 a day for three years, show how elected and appointed officials failed taxpayers by agreeing to financial strategies they didn’t fully understand. New Jersey spent $21.3 million in 2008 to exit three contracts signed when James Florio and James McGreevey were governors. The state’s transportation trust fund is giving almost $1 million a month to a Goldman Sachs Group Inc. partnership in an agreement linked to bonds that were redeemed.
Penalties and Losses
New Jersey isn’t alone. Borrowers from Massachusetts to California are struggling with billions of dollars in swap penalties and losses at the same time that budget deficits expand to an estimated $350 billion in 2010 and 2011, according to the Washington, D.C.-based Center on Budget and Policy Priorities.
The derivatives, mostly interest-rate swaps used to exchange fixed payments for variable rates, have grown to as much as $300 billion annually, the Alexandria, Virginia-based Municipal Securities Rulemaking Board said in an April report, citing information from market participants.
Derivatives have created “unprecedented financial stress” for some of the 500 municipal issuers that sold variable-rate debt and purchased swaps from banks to lock in borrowing costs, according to an October report by Moody’s Investors Service. The biggest users of the arrangements are Pennsylvania, California, Texas and Tennessee.
The U.S. Justice Department and Securities and Exchange Commission are investigating whether Wall Street banks conspired with brokers to rig bids on the contracts.
Forward-Starting Agreement
Jefferson County, Alabama, is on the edge of bankruptcy mostly because of a $3 billion sewer project in which fixed-rate bonds were refinanced into floating-rate securities hedged with interest-rate swaps. Larry Langford, the former Democratic mayor of Birmingham, was convicted of federal corruption charges Oct. 29 for accepting bribes in exchange for giving underwriting contracts to a banker friend while he was county commission president.
New Jersey’s 2004 school-bond swap with Bank of Montreal was linked to a $250 million bond originally scheduled to be sold in 2007. The so-called forward-starting agreement was one of 15 such contracts the state set up to help finance construction.
The issue was deferred to 2009 because the school program wasn’t borrowing fast enough to use swaps coming due in 2007, according to treasury spokesman Tom Bell.
Fixed Rate
Under its contract, New Jersey agreed to pay the bank a fixed rate of about 4.6 percent, or $967,000 a month, on the $250 million principal. In return, it would receive unspecified variable-rate payments based on a percentage of the one-month London interbank offered rate, according to Treasury Department spokesman Tom Vincz.
The one-month rate was 0.23 percent on Dec. 3, down from 1.9 percent when the Bank of Montreal swap was set up, according to the British Bankers Association One-Month Libor U.S. Dollar Index. Libor is a benchmark for the cost of loans between banks.
In pushing the swap off to 2009, New Jersey agreed to a 9 basis-point reduction in its fixed interest rate and the bank changed the floating-rate formula to a lower percentage of Libor. A basis point is 0.01 percentage point.
When the revamped agreement took effect on Nov. 1, the state faced payments of $833,000 a month, Vincz said in an e- mail. Treasury officials allowed the bank to suspend floating- rate payments while lowering New Jersey’s fixed-rate cost to 3.1 percent, or $656,770 monthly, through November 2012.
Typical School
The cost would cover the $23.6 million price of a typical elementary school, according to New Jersey Schools Development Authority reports. It would also pay 113 teachers’ salaries for three years, based on data reported by the state Teachers Pension and Annuity Fund.
“It is obscene,” New Jersey Governor-elect Christopher Christie said at a Nov. 16 news conference in Trenton, referring to financial strategies such as swaps pursued largely during McGreevey’s term from 2001 to 2004. “It is extraordinary to me that someone could do that much damage in less than three years.”
McGreevey, who resigned in 2004 after saying he was gay, didn’t respond to phone messages left at his home and the office of his partner, Mark O’Donnell, at real-estate developer Kushner Cos. in New York City. The former governor also didn’t return a message left at the Episcopal All Saints Parish in Hoboken, New Jersey, where he serves as an assistant while seeking a Master of Divinity degree at Manhattan’s General Theological Seminary.
$3.4 Billion
John McCormac, Christie’s transition team economic development and growth adviser who served as state treasurer when most of New Jersey’s swaps were arranged, hung up when asked about them on Nov. 11.
“OK, thanks for calling,” McCormac, mayor of Woodbridge Township, said before disconnecting.
New Jersey refinanced $3.4 billion of debt tied to derivatives last year, according to a report from the state Treasury Department’s Office of Public Finance.
The renegotiated swap lets New Jersey avoid a termination fee, estimated at $50 million in an Oct. 31 state report. It will allow the original swap to be reinstated if officials want to sell school-construction bonds in 2012, Vincz said in the Nov. 16 e-mail.
Diligent Work
“We are working diligently to manage and reduce the cost of the swap portfolio this administration inherited,” he said. “This temporary solution limits swap costs for a three-year period, after which time the state will retain the option of applying the original terms with a future borrowing as a hedge against rising interest rates.”
“We are not in a position to comment, out of an obligation of confidentiality to the client,” Kim Hanson, a spokeswoman for Bank of Montreal, said in a phone interview.
Peter Nissen, a financial adviser in Marlboro, New Jersey, who worked on the swap while at Public Financial Management, the state’s Harrisburg, Pennsylvania-based adviser, declined to comment.
Marty Margolis, managing director at PFM, said in a phone interview that Nissen worked independently on the contract and hasn’t been associated with the company for more than two years.
“That swap was done by someone who hasn’t worked for the company for several years,” Margolis said. “I know nothing about it.”
Except for two deals to stem losses from existing derivative contracts, New Jersey has entered into no new swaps since Governor Jon Corzine, the former co-chairman of Goldman Sachs, took office in 2006, according to Vincz. Christie, a former U.S. prosecutor, defeated Corzine last month and is to be sworn in Jan. 19.
UBS Contract
New Jersey paid $21.3 million last year to end three derivative contracts connected to bonds for business-incentive grants, the River Line Light Rail project from Trenton to Camden and the New Jersey Sports and Exposition Authority. On Nov. 18, the Delaware River Port Authority, a bistate agency that runs toll bridges and a rail line to Pennsylvania, agreed to give Zurich-based UBS AG $111 million if the authority can’t issue variable-rate debt to make use of an existing swap by February.
The state Transportation Trust Fund Authority is paying almost $1 million monthly to Goldman Sachs Mitsui Marine Derivative Products L.P., a partnership of the New York-based bank and Japan’s Mitsui Sumitomo Insurance Group Holdings Inc., under a swap agreement made during McGreevey’s administration in 2003. The derivatives were linked to $345 million in auction- rate bonds sold to finance road and rail projects.
Fixed-Rate Debt
While New Jersey replaced the debt with fixed-rate securities in 2008, the derivative payments aren’t scheduled to expire until 2019. The state plans to sell $150 million in variable-rate bonds on Dec. 7 to make use of part of the swap.
The state treasury “should continue to aggressively manage the termination, conversion and management of swaps that this administration inherited, while dealing with the realities of the most difficult credit conditions in history,” Corzine’s former spokesman, Steve Sigmund, said in an e-mail on Oct. 22.
New Jersey passed up borrowing costs of 4.6 percent to 4.9 percent when it opted to issue variable-rate bonds tied to swaps during McGreevey’s tenure, a 2008 state analysis shows. The net interest cost on the debt was about 4 percent while the original derivative agreements were in effect, according to the report.
Revenue Bonds
The yield on 25-year fixed-rate revenue bonds is now 4.98 percent, up from a yearly low of 4.69 percent in early October, according to a Bond Buyer Index.
Derivatives can save taxpayers money over longer periods if they’re managed properly, said Peter Shapiro, managing director of Swap Financial Group LLC, in South Orange, New Jersey, an adviser to companies and governments.
“Will municipal officers ever take for granted that floating-rate bonds will be dull, boring and predictable means of finance?” he said in a phone interview. “No, and they probably never should have.”
The 11th-largest U.S. state by population, which is cutting expenses to close a $1 billion budget deficit, will pay Canada’s oldest lender $23.5 million. The sum, about the same as the salaries for 113 teachers over three years, will allow it to avoid a $50 million penalty for canceling the contract, which was tied to planned sales of school-construction bonds.
The interest rate swap, an agreement between borrowers to exchange fixed and variable-rate payments on a set amount of debt, was arranged in 2004 to protect taxpayers against rising borrowing costs. The strategy backfired after officials decided against issuing the securities.
“This is a classic case of a strategic error,” said Robert Brooks, a finance professor at the University of Alabama- Tuscaloosa and author of a book on derivatives. “It’s arrogant to believe that you have such a command of the future that you know with certainty what is going to happen.”
The payments, which work out to $21,892 a day for three years, show how elected and appointed officials failed taxpayers by agreeing to financial strategies they didn’t fully understand. New Jersey spent $21.3 million in 2008 to exit three contracts signed when James Florio and James McGreevey were governors. The state’s transportation trust fund is giving almost $1 million a month to a Goldman Sachs Group Inc. partnership in an agreement linked to bonds that were redeemed.
Penalties and Losses
New Jersey isn’t alone. Borrowers from Massachusetts to California are struggling with billions of dollars in swap penalties and losses at the same time that budget deficits expand to an estimated $350 billion in 2010 and 2011, according to the Washington, D.C.-based Center on Budget and Policy Priorities.
The derivatives, mostly interest-rate swaps used to exchange fixed payments for variable rates, have grown to as much as $300 billion annually, the Alexandria, Virginia-based Municipal Securities Rulemaking Board said in an April report, citing information from market participants.
Derivatives have created “unprecedented financial stress” for some of the 500 municipal issuers that sold variable-rate debt and purchased swaps from banks to lock in borrowing costs, according to an October report by Moody’s Investors Service. The biggest users of the arrangements are Pennsylvania, California, Texas and Tennessee.
The U.S. Justice Department and Securities and Exchange Commission are investigating whether Wall Street banks conspired with brokers to rig bids on the contracts.
Forward-Starting Agreement
Jefferson County, Alabama, is on the edge of bankruptcy mostly because of a $3 billion sewer project in which fixed-rate bonds were refinanced into floating-rate securities hedged with interest-rate swaps. Larry Langford, the former Democratic mayor of Birmingham, was convicted of federal corruption charges Oct. 29 for accepting bribes in exchange for giving underwriting contracts to a banker friend while he was county commission president.
New Jersey’s 2004 school-bond swap with Bank of Montreal was linked to a $250 million bond originally scheduled to be sold in 2007. The so-called forward-starting agreement was one of 15 such contracts the state set up to help finance construction.
The issue was deferred to 2009 because the school program wasn’t borrowing fast enough to use swaps coming due in 2007, according to treasury spokesman Tom Bell.
Fixed Rate
Under its contract, New Jersey agreed to pay the bank a fixed rate of about 4.6 percent, or $967,000 a month, on the $250 million principal. In return, it would receive unspecified variable-rate payments based on a percentage of the one-month London interbank offered rate, according to Treasury Department spokesman Tom Vincz.
The one-month rate was 0.23 percent on Dec. 3, down from 1.9 percent when the Bank of Montreal swap was set up, according to the British Bankers Association One-Month Libor U.S. Dollar Index. Libor is a benchmark for the cost of loans between banks.
In pushing the swap off to 2009, New Jersey agreed to a 9 basis-point reduction in its fixed interest rate and the bank changed the floating-rate formula to a lower percentage of Libor. A basis point is 0.01 percentage point.
When the revamped agreement took effect on Nov. 1, the state faced payments of $833,000 a month, Vincz said in an e- mail. Treasury officials allowed the bank to suspend floating- rate payments while lowering New Jersey’s fixed-rate cost to 3.1 percent, or $656,770 monthly, through November 2012.
Typical School
The cost would cover the $23.6 million price of a typical elementary school, according to New Jersey Schools Development Authority reports. It would also pay 113 teachers’ salaries for three years, based on data reported by the state Teachers Pension and Annuity Fund.
“It is obscene,” New Jersey Governor-elect Christopher Christie said at a Nov. 16 news conference in Trenton, referring to financial strategies such as swaps pursued largely during McGreevey’s term from 2001 to 2004. “It is extraordinary to me that someone could do that much damage in less than three years.”
McGreevey, who resigned in 2004 after saying he was gay, didn’t respond to phone messages left at his home and the office of his partner, Mark O’Donnell, at real-estate developer Kushner Cos. in New York City. The former governor also didn’t return a message left at the Episcopal All Saints Parish in Hoboken, New Jersey, where he serves as an assistant while seeking a Master of Divinity degree at Manhattan’s General Theological Seminary.
$3.4 Billion
John McCormac, Christie’s transition team economic development and growth adviser who served as state treasurer when most of New Jersey’s swaps were arranged, hung up when asked about them on Nov. 11.
“OK, thanks for calling,” McCormac, mayor of Woodbridge Township, said before disconnecting.
New Jersey refinanced $3.4 billion of debt tied to derivatives last year, according to a report from the state Treasury Department’s Office of Public Finance.
The renegotiated swap lets New Jersey avoid a termination fee, estimated at $50 million in an Oct. 31 state report. It will allow the original swap to be reinstated if officials want to sell school-construction bonds in 2012, Vincz said in the Nov. 16 e-mail.
Diligent Work
“We are working diligently to manage and reduce the cost of the swap portfolio this administration inherited,” he said. “This temporary solution limits swap costs for a three-year period, after which time the state will retain the option of applying the original terms with a future borrowing as a hedge against rising interest rates.”
“We are not in a position to comment, out of an obligation of confidentiality to the client,” Kim Hanson, a spokeswoman for Bank of Montreal, said in a phone interview.
Peter Nissen, a financial adviser in Marlboro, New Jersey, who worked on the swap while at Public Financial Management, the state’s Harrisburg, Pennsylvania-based adviser, declined to comment.
Marty Margolis, managing director at PFM, said in a phone interview that Nissen worked independently on the contract and hasn’t been associated with the company for more than two years.
“That swap was done by someone who hasn’t worked for the company for several years,” Margolis said. “I know nothing about it.”
Except for two deals to stem losses from existing derivative contracts, New Jersey has entered into no new swaps since Governor Jon Corzine, the former co-chairman of Goldman Sachs, took office in 2006, according to Vincz. Christie, a former U.S. prosecutor, defeated Corzine last month and is to be sworn in Jan. 19.
UBS Contract
New Jersey paid $21.3 million last year to end three derivative contracts connected to bonds for business-incentive grants, the River Line Light Rail project from Trenton to Camden and the New Jersey Sports and Exposition Authority. On Nov. 18, the Delaware River Port Authority, a bistate agency that runs toll bridges and a rail line to Pennsylvania, agreed to give Zurich-based UBS AG $111 million if the authority can’t issue variable-rate debt to make use of an existing swap by February.
The state Transportation Trust Fund Authority is paying almost $1 million monthly to Goldman Sachs Mitsui Marine Derivative Products L.P., a partnership of the New York-based bank and Japan’s Mitsui Sumitomo Insurance Group Holdings Inc., under a swap agreement made during McGreevey’s administration in 2003. The derivatives were linked to $345 million in auction- rate bonds sold to finance road and rail projects.
Fixed-Rate Debt
While New Jersey replaced the debt with fixed-rate securities in 2008, the derivative payments aren’t scheduled to expire until 2019. The state plans to sell $150 million in variable-rate bonds on Dec. 7 to make use of part of the swap.
The state treasury “should continue to aggressively manage the termination, conversion and management of swaps that this administration inherited, while dealing with the realities of the most difficult credit conditions in history,” Corzine’s former spokesman, Steve Sigmund, said in an e-mail on Oct. 22.
New Jersey passed up borrowing costs of 4.6 percent to 4.9 percent when it opted to issue variable-rate bonds tied to swaps during McGreevey’s tenure, a 2008 state analysis shows. The net interest cost on the debt was about 4 percent while the original derivative agreements were in effect, according to the report.
Revenue Bonds
The yield on 25-year fixed-rate revenue bonds is now 4.98 percent, up from a yearly low of 4.69 percent in early October, according to a Bond Buyer Index.
Derivatives can save taxpayers money over longer periods if they’re managed properly, said Peter Shapiro, managing director of Swap Financial Group LLC, in South Orange, New Jersey, an adviser to companies and governments.
“Will municipal officers ever take for granted that floating-rate bonds will be dull, boring and predictable means of finance?” he said in a phone interview. “No, and they probably never should have.”
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Tuesday, November 17, 2009
New Jersey Lawmakers expected to attend annual Atlantic City conference
ATLANTIC CITY -- New Jersey lawmakers and local officials poured into Atlantic City today for the annual New Jersey League of Municipalities conference – a Garden State tradition that features seminars by day and partying by night.
More than 20,000 elected and government-related officials are expected to attend the four day-confab, highlighted by a joint appearance Thursday by Republican Gov.-elect Chris Christie and lame duck Democratic Gov. Jon Corzine.
AP Photo/Mary GodleskiNew Jersey Gov. Jon S. Corzine speaks as Herbert Stiles, mayor of Elmer, N.J., and president of the New Jersey League of Municipalities, looks on during the league's annual conference in Atlantic City in this 2006 photo.
More than a dozen parties were scheduled at hotel and casino restaurants and ballrooms, hosted by state lawmakers, local officials and the contractors they do business with.
The event is a one-stop-shop for networking with government officials from mayors to the governor’s administration – and in past years, it’s where elected officials have gotten themselves in trouble.
League Executive Director William Dressel said his job is to put together an educational offering to "provide my elected officials with the tools they need" to run local government.
"I’m only responsible for what happens between 9 o’clock and 5 o’clock," Dressel said. "For every hour in that normal workday, it’s chock full of education workshops, clinics."
In his autobiography, former Gov. James E. McGreevey described the convention as "really just a huge frat party." It was where former Hudson County Executive Robert C. Janiszewski took a $5,000 bribe from an FBI informant, and later turned informant.
He was brought down by the office of then-U.S. Attorney Christie, who later led a league seminar on ethics with Attorney General Anne Milgram and warned local officials against participating in similar acts. He told them if "someone approaches you with an envelope of cash looking for some kind of favor from you" in Atlantic City, "it’s probably us."
Dressel said he expects less partying and antics this year, in part because the dismal economy has cut into hotel bookings.
"Quite frankly, (municipal officials are) looking for a lot of answers and insight on how to govern in these tight economic times," he said.
The seminars are on topics such as the economy, budgets, foreclosures, "going green," and the impact of federal stimulus dollars. "There’s a lot of good info," said Kevin Duffy, mayor of Hardwick Township, Warren County.
Lester Lewis-Powder, a Maplewood committee member, acknowledged some may think the convention is a time for local officials to live it up in Atlantic City on the taxpayers’ dime.
"I paid my entire bill myself to avoid that," he said of his room at the Borgata hotel.
More than 20,000 elected and government-related officials are expected to attend the four day-confab, highlighted by a joint appearance Thursday by Republican Gov.-elect Chris Christie and lame duck Democratic Gov. Jon Corzine.
AP Photo/Mary GodleskiNew Jersey Gov. Jon S. Corzine speaks as Herbert Stiles, mayor of Elmer, N.J., and president of the New Jersey League of Municipalities, looks on during the league's annual conference in Atlantic City in this 2006 photo.
More than a dozen parties were scheduled at hotel and casino restaurants and ballrooms, hosted by state lawmakers, local officials and the contractors they do business with.
The event is a one-stop-shop for networking with government officials from mayors to the governor’s administration – and in past years, it’s where elected officials have gotten themselves in trouble.
League Executive Director William Dressel said his job is to put together an educational offering to "provide my elected officials with the tools they need" to run local government.
"I’m only responsible for what happens between 9 o’clock and 5 o’clock," Dressel said. "For every hour in that normal workday, it’s chock full of education workshops, clinics."
In his autobiography, former Gov. James E. McGreevey described the convention as "really just a huge frat party." It was where former Hudson County Executive Robert C. Janiszewski took a $5,000 bribe from an FBI informant, and later turned informant.
He was brought down by the office of then-U.S. Attorney Christie, who later led a league seminar on ethics with Attorney General Anne Milgram and warned local officials against participating in similar acts. He told them if "someone approaches you with an envelope of cash looking for some kind of favor from you" in Atlantic City, "it’s probably us."
Dressel said he expects less partying and antics this year, in part because the dismal economy has cut into hotel bookings.
"Quite frankly, (municipal officials are) looking for a lot of answers and insight on how to govern in these tight economic times," he said.
The seminars are on topics such as the economy, budgets, foreclosures, "going green," and the impact of federal stimulus dollars. "There’s a lot of good info," said Kevin Duffy, mayor of Hardwick Township, Warren County.
Lester Lewis-Powder, a Maplewood committee member, acknowledged some may think the convention is a time for local officials to live it up in Atlantic City on the taxpayers’ dime.
"I paid my entire bill myself to avoid that," he said of his room at the Borgata hotel.
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Monday, November 16, 2009
Loopholes in N.J. campaign finance laws benefit biggest government contractors
TRENTON -- New Jersey taxpayers don’t pay directly for the costly campaigns state politicians run, but public money regularly goes to government contractors who in turn make sure the candidates are well-funded.
Thanks to loopholes in campaign finance laws at the state and county levels, the biggest government contractors in New Jersey routinely get lucrative, taxpayer-funded work while simultaneously making huge contributions to the candidates who vote to approve their contracts.
New Jersey’s 566 municipalities, 616 school boards and 21 county governments all need lawyers, engineers and other professionals to handle government business and the politicians who control those contracts often award the work to firms that regularly contribute to their campaigns through a process known as "pay-to-play."
The pay-to-play system helped Democratic candidates running for freeholder seats this year in Bergen County, where the Democrats control the freeholder board, generate more than $1 million for the 2009 election - much of it from businesses that do work for the freeholders.
The Democratic candidates were able to raise money directly from county government contractors because the county contracting policy doesn’t prohibit it. The state’s "Local Unit Pay-to-Play Law" appears to address pay-to-play, but it includes a loophole that allows the practice to thrive.
The Bergen County policy, titled "Fair and Open," forces the Board of Freeholders to solicit public bids on most government projects, but price is only one factor and the freeholders are not compelled the board to select the lowest bidder.
That means county work can still go to regular contributors to the freeholders’ campaigns even if they don’t offer the best price.
WHEELING
The New Jersey political landscape is also full of candidates’ funds, political committees and other organizations that can raise money each time there is an election.
And savvy political operatives and organizations have figured out ways to use these numerous funds to get around donation restrictions that were put in place in an attempt to curb the influence special interests such as government contractors can have in an election.
The process of using political committees to get around the tight contribution limits that must be followed when making donations directly to a candidate is known in political circles as "wheeling."
In the Bergen County freeholder contest this year, several new political committees were used to "wheel" additional money into the race from county government contractors who had already donated directly to the two candidates up to the limit.
Since there are no rules in place prevent political committees such as those used in the 2009 contest from the accepting donations and then making subsequent donations to the freeholder candidates, the contractors were able to wheel funds totaling up to six times more than the contribution limits - and much of it at the last minute in an effort to save a campaign that was ultimately swept by the Republican candidates.
LEGISLATIVE ACTION
Some reforms that would address the pay-to-play and wheeling loopholes that exist in state campaign-finance laws remain stalled in the state Legislature. But lawmakers in leadership positions also control special legislative leadership funds that are among the most routinely used for wheeling money collected fdrom companies that receive lucrative government contracts.
And other legislators who hold key positions in the Assembly and Senate work for government contractors that are among the state’s most active contributors to political campaigns in New Jersey.
Thanks to loopholes in campaign finance laws at the state and county levels, the biggest government contractors in New Jersey routinely get lucrative, taxpayer-funded work while simultaneously making huge contributions to the candidates who vote to approve their contracts.
New Jersey’s 566 municipalities, 616 school boards and 21 county governments all need lawyers, engineers and other professionals to handle government business and the politicians who control those contracts often award the work to firms that regularly contribute to their campaigns through a process known as "pay-to-play."
The pay-to-play system helped Democratic candidates running for freeholder seats this year in Bergen County, where the Democrats control the freeholder board, generate more than $1 million for the 2009 election - much of it from businesses that do work for the freeholders.
The Democratic candidates were able to raise money directly from county government contractors because the county contracting policy doesn’t prohibit it. The state’s "Local Unit Pay-to-Play Law" appears to address pay-to-play, but it includes a loophole that allows the practice to thrive.
The Bergen County policy, titled "Fair and Open," forces the Board of Freeholders to solicit public bids on most government projects, but price is only one factor and the freeholders are not compelled the board to select the lowest bidder.
That means county work can still go to regular contributors to the freeholders’ campaigns even if they don’t offer the best price.
WHEELING
The New Jersey political landscape is also full of candidates’ funds, political committees and other organizations that can raise money each time there is an election.
And savvy political operatives and organizations have figured out ways to use these numerous funds to get around donation restrictions that were put in place in an attempt to curb the influence special interests such as government contractors can have in an election.
The process of using political committees to get around the tight contribution limits that must be followed when making donations directly to a candidate is known in political circles as "wheeling."
In the Bergen County freeholder contest this year, several new political committees were used to "wheel" additional money into the race from county government contractors who had already donated directly to the two candidates up to the limit.
Since there are no rules in place prevent political committees such as those used in the 2009 contest from the accepting donations and then making subsequent donations to the freeholder candidates, the contractors were able to wheel funds totaling up to six times more than the contribution limits - and much of it at the last minute in an effort to save a campaign that was ultimately swept by the Republican candidates.
LEGISLATIVE ACTION
Some reforms that would address the pay-to-play and wheeling loopholes that exist in state campaign-finance laws remain stalled in the state Legislature. But lawmakers in leadership positions also control special legislative leadership funds that are among the most routinely used for wheeling money collected fdrom companies that receive lucrative government contracts.
And other legislators who hold key positions in the Assembly and Senate work for government contractors that are among the state’s most active contributors to political campaigns in New Jersey.
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