The New Jersey Business and Industry Association called on March 9 for changes to the state’s rulemaking process during testimony before an Assembly committee. Ray Cantor, Deputy Chief Government Affairs Officer at NJBIA, addressed the Assembly Oversight, Reform and Federal Relations Committee as it reviewed proposed updates to the New Jersey Administrative Procedure Act.
The topic is significant because state regulations can have a major impact on businesses, local governments, and residents. The Administrative Procedure Act sets out how agencies create rules, including requirements for public notice and transparency.
“While the Legislature sets the overall policy framework of a program, often the substantive details and implementation are left for departments and agencies to determine,” Cantor said. “As they say, the devil is in the details, and those details are developed under the APA rulemaking process.”
Cantor said that overly broad or costly regulations can leave affected groups in difficult positions. “The remedies to change those regulations, once adopted, are burdensome, costly, and most often, ineffectual. That is why it is so important to get the regulations right, even after the Legislature has set the overall parameters in law,” he said.
He cited land use rules from the Department of Environmental Protection as an example where regulations were based on outdated data without enough stakeholder input. These rules are now being challenged in court by NJBIA and others. Cantor also noted that Governor Mikie Sherrill supports cutting red tape but argued that permitting reform cannot succeed without changes to rulemaking procedures.
“You can have the best intentions to expedite permitting, but if a regulation mandates onerous requirements or impractical standards be met, nothing will change,” Cantor said.
Cantor recommended five changes: mandatory stakeholder meetings; required pre-drafts for major rules; external review of rules; allowing changes upon adoption; and having courts decide legal matters instead of agencies.
The bill discussed Monday was A-1505 by Assemblyman Roy Freiman. It was considered for discussion only with further action expected later.
The New Jersey Business and Industry Association serves as the nation’s largest statewide employer association representing employers across various sectors according to its official website. The association advances competitive excellence and financial success for its members while providing essential information and services according to its official website. Michele Siekerka serves as president and chief executive officer according to its official website. NJBIA represents private-sector employers throughout New Jersey according to its official website, facilitates partnerships among businesses, government entities, and academic institutions according to its official website, and offers advocacy along with practical information and cost-saving benefits according to its official website.