Gov. Murphy Vetoes NJ Unemployment Bill, Signs 14 More Into Law

NEW JERSEY – Gov. Phil Murphy has vetoed two bills – one of which would have extended unemployment insurance payments while Congress was debating a stimulus bill – while signing 14 more into law.

Murphy vetoed a bill on Thursday evening that would have extended unemployment insurance payments by eight weeks and continue job-sharing furlough programs, saying the bill overlaps with actions taken recently by Congress. But he also questioned the legislation's legality.

The veto also comes as state officials announced on Friday that a number of New Jersey residents have experienced a lapse in benefits because the Trump administration let programs expire. Robert Asaro-Angelo, commissioner at the New Jersey Department of Labor and Workforce Development, said those people impacted are "now automatically going onto the state's extended benefits."

Murphy also signed legislation that requires officials to report on the number of healthcare professionals who test positive for COVID-19.

Murphy vetoed S-3283/A-5151, which would have expanded unemployment insurance coverage beginning Dec. 20th and lasting through Feb. 27th for all workers eligible to receive unemployment benefits under New Jersey state law.

The bill also would have extended New Jersey’s employee job-sharing program and specifically authorizes use of the furlough program to rehire previously laid-off workers who have been collecting unemployment.

The extended benefits in the bill would have come at "no cost to employers" and would have been provided as a stopgap measure while Congress debated the fate of the stimulus bill, lawmakers said.

In his veto message, Murphy noted the bill was approved during a period of time when there was "considerable uncertainty whether Congress would reach a deal and whether President Trump would sign it."

On Dec. 27th, President Trump signed a new COVID-19 relief bill that extended benefits for an additional 11 weeks. The emergency unemployment benefits during the eight-week period provided by this bill through February 27th are now covered by other benefits, Murphy said.

"These extensions ensure that more than 500,000 New Jersey residents will continue to receive critical unemployment assistance to help them stay afloat during these challenging times," Murphy said. "As a result, this bill, while well-intentioned, is no longer necessary."

Ironically, Asaro-Angelo announced during a Friday news conference that 5 percent of New Jersey claimants are experiencing a lapse in benefits and that the state was working to fix the problem.

He said the relief package signed by Trump has flaws that have created delays, and the previous administration allowed benefits to lapse at the end of December. "If they had acted just weeks before the expiration date they knew was looming for months, states would have had the time needed to keep benefits for some from lapsing at all," he said.

However, Murphy said, his veto also allows New Jersey to avoid the challenges associated with the bill that could have jeopardized New Jersey’s Unemployment Compensation Fund, Murphy said.

"Prior to passing this bill, the Legislature was informed that the United States Department of Labor had advised my Administration that the state would not be permitted to utilize the Unemployment Compensation Fund for the benefits provided under this bill, or any administrative costs associated with the benefits because the benefits created by this bill are
not in conformity with federal law," Murphy said. "The Biden Administration’s USDOL recently reaffirmed this position."

The bill would have diverted funding from the State Unemployment Compensation Fund to pay benefits to individuals who are ineligible under federal law, Murphy said.

"The consequences of nonconformity – the loss of all administrative grants from the
federal government to New Jersey to run the state’s unemployment compensation system, and the loss of the ability of all New Jersey employers to claim a credit for state unemployment contributions against the federal unemployment tax – are dire for both the state
and our businesses," he said.

The bill was sponsored by Sens. Dawn Addiego, Joe Lagana and Vin Gopal.

Murphy also conditionally vetoed a bill (S-3252/A-5089) that would have clarified that the County Option Hospital Fee Pilot Program expires five years after each participating county has collected the fee, and that participating counties in program are not liable for fee imposed on hospitals Here is a copy of Murphy's statement.

Lawmakers, meanwhile, praised Murphy for signing the COVID reporting legislation that, they say, will accurately gauge the impact of the pandemic on the medical community.

The legislation was sponsored by Senators Linda Greenstein and Nia Gill.

“While it will likely be years before we know the full impact the pandemic has had on frontline workers, this will at least provide some insight as to how many of our doctors, nurses, and support staff have tested positive or lost their lives to COVID-19,” said Greenstein, D-Middlesex/Mercer. “As we continue efforts to determine the scope of this crisis, this new law will provide much-needed data to determine the impact it has had on our healthcare workforce.”

The vetoes and bill signings came just as Murphy on Friday signed new legislation that will give owners and operators of restaurants and bars, distilleries more freedom to operate outdoors amid the pandemic. Read more: Gov. Murphy Signs NJ Dining Expansion Bill Into Law Amid COVID

Murphy also signed the following bills into law:

• S-2384/A-4129 (Greenstein, Gill/Spearman, Vainieri Huttle, Mukherji) – Requires health care facilities to report certain coronavirus disease 2019 (COVID-19) data related to health care workers and certain first responders
• S-2607/A-2785 (Smith, Greenstein/Benson, McKeon) – Requires land use plan element of municipal master plan to include climate change-related hazard vulnerability assessment: Copy of Statement
• S-3220/A-5122 (Sweeney, Turner, Cruz-Perez/Spearman, Dancer, Johnson) – Permits exemption from civil service law enforcement examination requirement for entry level-law enforcement officers: Copy of Statement
• S-3230/A-5115 (Greenstein, Corrado/Moriarty, Conaway, Calabrese, Chiaravalloti) – Appropriates $30.387 million from constitutionally dedicated CBT revenues to DEP for State acquisition of lands for recreation and conservation purposes, including Blue Acres projects
• S-3256/A-5084 (Scutari, Ruiz/Kennedy, Calabrese) – Reclassifies possession of psilocybin as disorderly persons offense
• A-4941/S-3122 (Mejia/Sacco) – Authorizes State Treasurer to sell and convey certain surplus real property located in Town of Secaucus, Hudson County
• A-4943/S-3092 (Wirths, Space, Bergen/Oroho) – Authorizes State Treasurer to sell and convey certain surplus real property located in Borough of Franklin, Sussex County
• A-5113/S-3235 (Timberlake, Sumter, Caputo/Beach, Pou) – Appropriates $11,777,499 from constitutionally dedicated CBT revenues to NJ Historic Trust for grants for certain historic preservation projects and associated administrative expenses
• A-5114/S-3229 (DeAngelo, Speight, Swain/Codey, Corrado) – Appropriates $37.16 million from constitutionally dedicated CBT revenues for recreation and conservation purposes to DEP for State capital and park development projects
• A-5116/S-3196 (Johnson, Auth, Schepisi/Cardinale, Smith) – Authorizes State Treasurer to sell and convey certain surplus real property located in the Township of Mahwah, County of Bergen
• A-4528/S-2838 (DeAngelo, Houghtaling/Singleton, Gopal) – Revises certain aspects of the State procurement process and permits auction or reverse auction procedures
• S-2419 w/GR/A3143 (Scutari/Kennedy) Concerns local government regulation of installation, maintenance and repair of perimeter fence intrusion protection systems, other alarm systems, and locksmithing services.
• S-2708 w/GR (Sweeney, Codey/Benson, Vainieri Huttle, Verrelli) – Requires certain provisions in State contracts for delivery of publicly financed mental health, behavioral health, and addiction services.