Taking Aim At Commerce

HEADNOTE

STATEHOUSE

HEADNOTE

A GOP bill echoes Corzine in seeking to abolish the agency

THE ONCE UNTHINKABLE notion of eliminating

the New Jersey Commerce, Economic Growth & Tourism Commission, the state's main bridge to the business community, is gaining momentum on both sides of the political aisle. State Senator Thomas H. Kean Jr. (R-Union) plans this week to introduce a bill to fold the commission and its $19 million budget into a new umbrella agency and privatize some commission functions. The agency would be run by the self-supporting New Jersey Economic Development Authority (NJEDA) and its programs would be funded solely by revenue generated from fees and loans.

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Kean, like Corzine, pushes consolidation.

Kean's measure would parallel a central plank of Governor-elect Jon Corzine's; he vowed during the campaign to eliminate the commission and consolidate economic development programs that are now spread among 16 departments under the governor's office. Corzine also plans to name an economic development czar to be located in the governor's office.

But the governor-elect has so far declined to endorse the Kean legislation. Corzine spokeswoman Ivette Mendez says he is studying the consolidation issue and "will look to business and community leaders for feedback." She adds that Corzine "hopes the process will be a bipartisan effort,"

Kean, who plans to run next November for the U.S. Senate seat Corzine is vacating, says he too wants a nonpartisan bill. That will be vital to his hopes, of course, since the Democrats hold comfortable leads in both houses of the Legislature. While the bill, S2887, is unlikely to pass in the lame-duck session that ends in mid-January, Kean says he is prepared to reintroduce it in the new session. "This is a way to make things more efficient and I hope the bill will be taken seriously next year," Kean says. "I would love to have Democratic co-sponsorship on this bill."

He says the measure would end the confusion faced by businesspeople when trying to figure out which agency to approach for help. "A lot of business owners and executives have been frustrated when they try to get answers or assistance from state government," Kean says. "The state is starting to garner a reputation as a place where it is very difficult to do business."

Although most business advocates have not yet seen Kean's 44-page bill, dubbed the "New Jersey Economic Development Promotion Act," some welcome the concept of centralizing the state's programs. "It continues to be difficult for businesses interested in moving to or staying in New Jersey to maneuver through the maze of Trenton," says Jim Leonard, vice president for government relations at the New Jersey Chamber of Commerce. "Right now, we make it difficult for decision makers to have access to the right people."

Commerce Commissioner Virginia Bauer has consistently promoted the agency as an advocate and friend of small business. She says it provides help in navigating the tangle of state bureaucracy and pursuing state contracts.

Kean's legislation would create a Division of Commerce and Economic Development within the NJEDA that would be responsible for all economic development programs now run by either body. It also would establish a First Stop Customer Service Center, similar to those in other states, which would be a client's initial contact with Trenton. The center would provide an information kit to clients and help them find support and assistance. The commission's Office of the Business Advocate, which provides assistance with state regulatory issues, permitting and licensing, would be transferred to the First Stop Center.

The bill would set up a Business Visitation Program similar to one in use in Pennsylvania. Teams would call on companies and listen to their problems-such as infrastructure issues, financing and workforce development concerns-and suggest ways that government can be of assistance.

The bill also merges the Office of Small Business, Womens' Business, and Minority Business with a similar program that now exists at the NJEDA. The existing New Jersey Micro-Business Assistance Program and the New Jersey Micro-Business Assistance Fund would be moved in the same way. The state Commission on Science and Technology would operate under the NJEDA, as would the state's travel and tourism program.

Some business leaders wondered what funding would be available to promote New Jersey tourism. "There has always been money in [the Commerce budget] for advertising campaigns and promoting the state," says Arthur J. Maurice, first vice president of the New Jersey Business & Industry Association. "Maybe the plan is to privatize that."

Laurine Purola, a Republican consultant who helped craft Kean's bill, says it would save millions of dollars a year. In addition to eliminating the commission's $19 million in funding, it would cut redundant programs and calls for hiring accountants and other private consultants to run business-orientation programs that are now conducted by government workers.

SIDEBAR

IT's All Happening at Commerce

Here are some of the services and programs offered by the state's Commerce, Economic Growth & Tourism Commission

Support Services

* The Office of the Business Advocate helps businesses navigate state regulations and governmental issues.

* Customized training programs help companies train new workers.

Marketing and Communications

* The commission produces advertising campaigns, Websites and publications like the annual Official New Jersey Travel Guide," the biannual "Calendar of Events" and "Golf and "Lighthouse" guides to promote the state's $32 billion travel-and-tourism industry.

Incentives

* Under the Business Employment Incentive Program (BEIP) companies receive annual cash grants based on the number of new jobs they have created in New Jersey.

* The Business Retention and Relocation Assistance Grant program provides grants of up to $ 1,500 per new job created.

* The Sales and Use Tax Exemption Program offers tax exemptions on the purchase of "eligible property" to firms relocating and retaining jobs within New Jersey.

* The Urban Enterprise Zone Program allows businesses within specified zones of distressed cities to collect only half the state's 6% sales tax on certain purchases.

AUTHOR_AFFILIATION

E-mail to sgoldstein@njbiz.com