An olive branch to small N.J. employers

Christie has named Lt. Gov.-elect Kim Guadagno the head of a group that is reviewing red tape, including both regulations on businesses and mandates on local governments.

A promised 90-day moratorium on new regulations will give Guadagno and her group time to prepare a series of recommendations on regulations and mandates. Along with impending regulations, the group will review existing policies to determine what rules and laws should be changed.

At the first meeting of the red-tape review group, on Nov. 19, Guadagno said there would be a moratorium on all “unnecessary” regulations, raising the possibility that some rules in the works may not move forward. The specific regulations in Christie’s crosshairs were not known last week, as his transition team worked out details about how the review group would function.

One example that’s being closely followed are rules that will change the Urban Transit Hub Tax Credit program, which won’t be adopted by Jan. 19, when Christie takes office. Other regulations affecting the business community that are in the pipeline include measures that apply the sales tax to software services and ones that detail how the Economic Redevelopment and Growth Grant program will operate. It is not clear how these regulations will be affected by the impending moratorium.

Guadagno said the purpose of the group is to “try to open up New Jersey to businesses again” and take the weight off municipalities burdened with mandates.

The group could generate bipartisan support. Senate Majority Leader-elect Stephen M. Sweeney said he supported the moratorium, adding that he congratulates Christie on making less red tape a priority. “The state’s business unfriendly, and we have to make it more business friendly,” Sweeney said.

New Jersey Business & Industry President Philip Kirschner also said Christie’s focus on reducing regulations is a positive sign. “I think just having that effort sends an important signal.”

Guadagno said the group would meet 15 times before the end of December, and would gather information from businesspeople and local officials, so that when Christie is sworn in, the red-tape review group will be up and running.

Its first meeting, at the New Jersey State League of Municipalities’ conference, drew officials concerned about state mandates — in particular, Council on Affordable Housing regulations, which have changed repeatedly since first being implemented. Officials have pleaded for a suspension of the program; Guadagno said the group was looking forward to hearing those concerns.

­E-mail to akitchenman@njbiz.com