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Will New Jersey’s Efforts to Combat “Red Tape” Make It More Business Friendly?

Posted by attorney Donald Scarinci

Starting a new venture in New Jersey is rarely an easy task, particularly given the growing number of rules and regulations impacting small businesses. However, efforts are underway to ease the regulatory burden and make New Jersey more business friendly.

The Red Tape Commission, a bi-partisan commission created to reduce governmental red tape, released a progress report earlier this month. The report details the steps that have been taken to reduce red tape and outlines further steps to make regulations less costly for business.

While much work remains, the report is welcome news for existing businesses as well as those looking to start a new business in New Jersey. Below is a brief summary of the Commission report:

  • The report highlights several initiatives to eliminate red tape by using technology to better deploy government services. For instance, some processes now take place strictly online, such as the administration of the Urban Enterprise Zone program.
  • The report outlines legislative efforts to curb red tape, including amendments to the Administrative Procedures Act to extend the sunset period for regulations. The State also repealed laws that seem to defy common sense. For instance, the New Jersey Motor Vehicle Commission now permits a school bus that has been marked “out of service" to be driven to reinspection after repairs have been made, so long as no passengers are transported (thereby allowing reinspection to occur without the need for a tow truck).
  • The report offers numerous recommendations to further address red tape. In addition to continuing to repeal, modify, and modernize antiquated laws and regulations, the Commission calls on all arms of New Jersey government to identify best practices and model programs, and replicate them where appropriate. It also suggests that additional government services be moved online.
  • Finally, the Commission commits to “inject more common sense into the rulemaking process, eliminate hidden costs of licensure, reduce regulatory overlap, and continue to leverage information technology to improve taxpayer interaction with the State."

The full report is available here.

If you are contemplating forming or buying a business in New Jersey, an experienced New Jersey business attorney can help you cut through the red tape and take steps to ensure that you don’t face compliance problems down the road.

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