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 considered proposed updates to the New Jersey Administrative Procedure Act.
The issue is significant because state agencies often determine the details of how laws are implemented, which can affect businesses, local governments, and residents. The NJBIA said that regulations developed without sufficient input or based on outdated information can be burdensome and may not reflect legislative intent.
“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 cited recent land use rules from the Department of Environmental Protection as an example where costly regulations were adopted without meaningful stakeholder input. He said these rules are now being challenged in court by both NJBIA and the New Jersey Builders Association. “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,” Cantor said.
He also noted that Governor Mikie Sherrill has committed to cutting red tape but argued that streamlining permitting cannot succeed without reforming how rules themselves are made. “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 and impact statements; allowing changes upon adoption; and having courts decide matters of law rather than state agencies.
The bill discussed Monday was A-1505 by Assemblyman Roy Freiman. It was presented for discussion only so lawmakers could gather feedback before scheduling a vote.
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 organization 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. The association supports 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.
