Digital/Tech

Murphy Signs into Law Tax Incentives to Attract AI Development to NJ – On July 25, Gov. Murphy signed into law S3432/A4558, codified as P.L.2024, c.49., legislation which aims to create a hub for artificial intelligence development in New Jersey. The new law establishes a $500 million tax incentive program administered by the state Economic Development Authority (EDA). The EDA would disburse awards of up to $250 million to companies who draw more than half their revenue or devote more than half their staff to AI development. To be eligible, a project must have $100 million in capital investment and create at least 100 jobs; award amounts will be based on the number of jobs created through the project. The program draws its funding from the existing $11.5 billion Aspire tax incentive program. 

 

Health

Murphy Signs into Law Protections for Medical Debt Holders – On July 22, Gov. Murphy signed into law the Louisa Carman Medical Debt Relief Act under P.L.2024, c.48. The new legislation offers a series of protections to New Jersey residents with the aim to mitigate the financial and health ramifications of holding medical debt. With the exception of one provision, the bill goes into effect on July 22, 2025. The new law enacts the following: 

  • Bars medical debt holders from reporting such debt to credit-rating agencies, with some exceptions. If a creditor violates this provision, the debt becomes void, and the creditor may be sued under the New Jersey Fair Credit Reporting Act. This provision went into effect immediately on July 22 with the bill’s signing. 
  • Mandates creditors to wait 120 days to move to collect medical debt and requires them to offer a payment plan to patients with payments totaling no more than 3% of the patient’s income, with a 60-day grace period for late payments. 
  • Caps interest rates on medical debt at 3%.
  • Prevents creditors from garnishing the wages to repay medical debt of those making less than 600% of the federal poverty level.
  • Any gains made by a creditor through a violation of these provisions must be returned to the patient. 

Advocates Push to Expand the NJ Family Leave Act – In a July 24 virtual press conference called by the NJ Time to Care Coalition, advocates called for expanded paid family leave benefits. To qualify to receive 85% of one’s pay to care for a sick relative or new baby, one must have worked for the same employer for at least one year and a thousand hours. Advocates argue this excludes young, hourly employees. The Assembly advanced on February 12, A3451, legislation which would mandate companies with at least five workers to offer job-protected paid family leave. Currently, only companies with at least 30 workers must do so. Advocates say the bill should also reduce the minimum employment period to qualify for paid family leave from 12 months to three. The bill remains pending in the Senate Labor Committee.   

 

Public Administration

Appeals Court Decides to Allow Enforcement of Temp Workers Bill of Rights – In a July 24 decision, a federal appeals court ruled against plaintiffs attempting to stop the enforcement of protections for temporary workers in NJ. Staffing agencies argued that a law known as the Temporary Workers Bill of Rights is unconstitutionally vague, disadvantages out-of-state employers, and makes NJ businesses less competitive. The law, in effect since August 2023, mandates that companies pay temp workers the same wages as permanent employees who do the same type of work; requires staffing agencies to provide workers with information about scheduling, pay rate, benefits, etc. in their native language; and mandates that temp workers make at least minimum wage after fees deductions. The state Department of Labor has received dozens of complaints since the law went into effect. The recent decision allows enforcement to proceed. 

No More Back-to-School Sales Tax Holiday – On June 28, the legislature passed, and Murphy signed into law A4702/S3514, codified as P.L.2024, c.19., legislation which ends an annual 10-day back-to-school sales tax holiday in late August and early September. Traditional school supplies, as well as arts materials, sports equipment, and some electronics, carried no sales tax during this holiday in 2022 and 2023. The initiative aimed to make these products more affordable to families during a period of high inflation, but some have challenged its efficacy in offering relief to low-income families. The state expects to save $35 million by not offering the tax break in the 2025 fiscal year. 

Supreme Court Refuses to Hear Case on Sharing Private Email Addresses under OPRA – On July 26, the NJ Supreme Court released a brief stating it should not have accepted a case on whether or not the private email addresses of those who subscribe to publicly funded newsletters may be shared under the Open Public Records Act. In March, an Appellate Court ruled that such email addresses are not subject to public disclosure. This decision will now stand.