Red Tape Review Commission Report
On February 8, 2012, the bi-partisan Red Tape Review Commission, chaired by Lt. Governor Kim Guadagno, released a report detailing progress the State has made reducing red tape and listing further steps to make regulations less costly for business and non-profit groups.
The report is based, in part, on input received at public hearings. The report highlights significant changes implemented by the Christie Administration in 2011 to streamline government and cut red tape, as well as policy recommendations to further reduce the regulatory burden on business and make it easier for them to grow and hire workers.
"For business, onerous and burdensome red tape is like death by a thousand paper cuts," said Lt. Governor Kim Guadagno. "It takes money from business and jobs from workers."
Red Tape Commission
On September 23, 2010, then-Acting Governor Guadagno signed Executive Order No. 41
to create a permanent, bi-partisan Red Tape Review Commission (the “Commission”).
Building on the activity of its predecessor, the 90-day Red
Tape Review Group (the “Group”), the Commission will hold at least three public meetings throughout the state in 2011 and
will submit a final report to Governor Christie in December 2011. Through these forums, the Commission will solicit the
public’s view of New Jersey’s regulatory process.
On January 20, 2010, Governor Christie signed Executive Order No. 1
, which froze proposed regulations and ordered a 90-day moratorium on new proposals. Executive Order No.2
directed State departments to undertake a review of their administrative regulations to ensure that they complied with the “Common Sense Principles” for rulemaking.
The departments were given 90 days to review proposed regulations, and 180 days to review existing regulations. With Executive Order No. 3
, Governor Christie created the Group to “review all pending and proposed rules and regulations to assess their effects on New Jersey’s economy and to determine whether their burdens on business and workers outweigh their intended benefits.”
The Group gathered input from stakeholders through three public meetings and combined with the
results of the agency reviews, it presented its report Findings & Recommendations to Governor Christie on April 19, 2010. The report, Summary: Department 180-Day Submissions, followed on September 23, 2010.
Of the 128 proposed regulations that had been frozen by Executive Order No. 1, State departments withdrew 16. As a result of the 180-day review of existing regulations, mandated by Executive Order No. 2, the departments abolished 6 chapters of the Administrative Code, proposed to amend 99 regulations and proposed to repeal 31 regulations.
Moreover, the New Jersey Register of proposed and adopted regulations was 3086 pages long at the close
of 2010, less than two-thirds of the total 4846 pages at the close of 2009 and less than half of the 7020 page total at
the close of 2008.
Legislation is also being passed to implement red-tape reforms. One of the Common Sense Principles from Executive Order No. 2 compelled agencies to adopt the “time of decision” rule, in which every permit or approval is governed by the rules in effect at the time of filing (unless explicitly provided otherwise.)
On May 5, 2010, Governor Christie signed S82 into law, requiring local governments to make decisions
on development applications based on the local laws in force when the original application was submitted – in effect codifying
“time of decision” at the local level.
Help Us to Help You
Consider this site your source for Red Tape Review news, hearings, reports and “victories.” You may also register to participate in public meetings, submit testimony, or relay your red tape concerns and suggestions to us by email at firstname.lastname@example.org
or through our webform
Red Tape Commission Successes
Modernized LLC Act to Encourage Formation in New Jersey
The Revised Uniform Limited Liability Company Act (RULLCA) was signed by Governor Christie on September 19, 2012. This bill repeals the NJ LLC Act and replaces it with a more modern regulatory scheme for the creation and operation of LLCs, the most popular business organization in NJ.
Notable benefits of RULLCA include enhanced ease and flexibility of formation, with streamlined methods for domestication (an LLC formed in another state becomes an LLC in NJ) and conversion (a corporation becomes an LLC). RULLCA adopts some of the best elements of the Business Corporation Act concerning the indemnity of members and mangers and remedies for deadlock, for example. RULLCA also eliminates pitfalls concerning the perpetual existence of the LLC and the valuation of interests for resigning members.
Since RULLCA is more consistent with the expectations of businesspeople, it should encourage the formation of LLCs in NJ rather than surrounding states.
Moreover, RULLCA signals the efforts NJ is making to improve its reputation as a home for business. This legislation was sponsored by all four legislative members of the Red Tape Review Commission.