Posted on 3 Comments

Former Bergen County Prosecutor Gurbir S. Grewal Confirmed as 61st New Jersey Attorney General

Gurbir S

January 17,2018

the staff of the Ridgewood blog

Trenton NJ, Gurbir S. Grewal became the 61st Attorney General of the State of New Jersey following the inauguration of Governor Phil Murphy today, January 16, 2018. He was confirmed unanimously by the New Jersey Senate this afternoon.

“I am honored and humbled to assume the role of Attorney General at this critical time for our state and country. I am grateful to Governor Murphy and the Senate for the trust they have placed in me and I look forward to continuing my service to the state of New Jersey. There’s much to do, and I can’t wait to get started,” said Attorney General Grewal.
Prior to his selection as New Jersey Attorney General, Grewal served as Bergen County Prosecutor, the chief law enforcement officer of the most populous county in New Jersey and home to nearly 1 million residents living in 70 municipalities.

Grewal worked as an Assistant United States Attorney (“AUSA”) in the Criminal Division of the United States Attorney’s Office for the District of New Jersey from 2010 to 2016. While at the U.S. Attorney’s Office, he served as Chief of the Economic Crimes Unit from 2014 to 2016 and oversaw the investigation and prosecution of all major white collar and cybercrimes in the District of New Jersey.

Before becoming a federal prosecutor in New Jersey, Grewal also served as an AUSA in the Criminal Division of the United States Attorney’s Office for the Eastern District of New York from 2004 to 2007, where he was ultimately assigned to the Business and Securities Fraud Unit. As an AUSA in the Eastern District of New York, he investigated and prosecuted a wide range of narcotics offenses, white collar crimes, and terrorism cases. His significant matters included the successful prosecution of 12 men charged with providing material support to the Tamil Tigers terrorist organization.

In addition to his work as a federal prosecutor, Grewal has also worked in private practice, including at Howrey LLP (from 1999 to 2004 in Washington, D.C., and from 2008 to 2010 in New York, N.Y.). While at Howrey LLP, he counseled clients on a range of matters including securities, trademark, antitrust and Foreign Corrupt Practices Act issues; represented individuals and companies in government investigations and criminal proceedings; conducted internal investigations for public corporations; and conducted civil trials.

Attorney General Grewal graduated cum laude with a Bachelor of Science in Foreign Service from the Georgetown University School of Foreign Service in 1995. He obtained his law degree from the College of William & Mary, Marshall-Wythe School of Law in 1999.

Posted on 2 Comments

Department of Homeland Security Looks to Lodge to criminal charges against leaders of sanctuary cities

Phill Murphy -Sara Medina del Castillo

January 17,2018

the staff of the Ridgewood blog

Trenton NJ, while Governor Phil Murphy pushes forward to turn New Jersey into a sanctuary state , Homeland Security Secretary Kirstjen Nielsen confirmed Tuesday that the department has asked federal prosecutors to see if they can lodge criminal charges against sanctuary cities that refuse to cooperate with federal deportation efforts.

“The Department of Justice (DOJ) is reviewing what avenues may be available,” Ms. Nielsen told the Senate Judiciary Committee.

This came on the heels of California’s new sanctuary law went into effect Jan. 1, severely restricting cooperation the state or any of its localities could offer.

U.S. Immigration and Customs Enforcement (ICE) Director Tom Homan says those policies put his officers and local communities at more risk because they have to arrest illegal immigrants out in the community.

Director Homan told The Washington Times last July that he wanted to see local officials charged as complicit in human smuggling if they shielded illegal immigrants through sanctuary policies.

Posted on 4 Comments

Murphy agenda will only exacerbate outward migration putting further pressure on the states limited resources

for sale Ridgewood_Real_Estate_theRodgewopodblog

January 16,2018

the staff of the Ridgewood blog

Trenton NJ, Illinois, New Jersey, and New York were the top states in the nation for outbound moves in 2017, according to data from United Van Lines. We have in the past reported similar statistics from other moving companies .

United Van Lines, which tracks state-to-state migration patterns, found that Illinois was the top state for outbound migration with 63 percent of moves going out of state.

“The Northeast continues to experience a moving deficit with New Jersey (63 percent outbound), New York (61 percent) and Connecticut (57 percent) making the list of top outbound states for the third consecutive year,” the report states. “Massachusetts (56 percent) also joined the top outbound list this year.”

While taxes are often cited as the reason for the move , New Jersey just elected Phil Murphy who promised to raise taxes when elected . The Murphy agenda will only exacerbate this outward migration putting further pressure on the states limited resources .

 

Posted on 2 Comments

California Moves to Cut Pension Benefits

jerry_brown_california_reuters

January 12,2018

the staff of the Ridgewood blog

Ridgewood NJ, watch out New Jersey you could be next , for decades in California, a sacrosanct rule has governed public employees’ pensions: benefits promised can never be taken away.

But now the California Supreme Court has threaten to reverse that premise and open the door to benefit cuts for workers still on the job.

California Governor Jerry Brown said legal rulings may clear the way for making cuts to public pension benefits, which would go against long-standing assumptions and potentially provide financial relief to the state and its local governments.

ballooning expenses are an issue that Gov. Jerry Brown will face in his final year in office despite his earlier efforts to reform the state’s pension systems and pay down massive unfunded liabilities.

At issue is the “California Rule,” which dates to court rulings beginning in 1947. It says workers enter a contract with their employer on their first day of work, entitling them to retirement benefits that can never be diminished unless replaced with similar benefits.

It gives workers security that their retirement will be safe and predictable after a career in public service. But it also ties lawmakers’ hands in responding to exploding pension costs.

It’s widely accepted that retirement benefits linked to work already performed cannot be touched. But the California Rule is controversial because it prohibits even prospective changes for work the employee has not yet done.

Posted on Leave a comment

JAMES KAUFFMAN, 7 OTHERS ARRESTED IN CONNECTION TO MURDER OF NJ RADIO SHOW HOST APRIL KAUFFMAN, CONSPIRACY & RACKETERRING

April Kauffman

January 10,2018
the staff of the Ridgewood blog

Linwood NJ, After a cooperative investigation between the Atlantic County Prosecutor’s Office and multiple law enforcement agencies, eight individuals have been charged in connection to the murder of April Kauffman, as well as, conspiracy and racketeering, Atlantic County Prosecutor Damon G. Tyner announced.

James Kauffman and Ferdinand Augello are charged with Murder in connection with the death of Radio Show Host April Kauffman, in addition to Racketeering, related to the illegal distribution of narcotics through Kauffman’s former medical practice. Additionally, Ferdinand Augello is charged with Conspiracy to Commit the Murder of James Kauffman.

On Thursday, May 10, 2012, at approximately 11:29 a.m., officers from Linwood Police Department responded to a 911call at a private residence located at 2 Woodstock Drive, Linwood. There was a report of an unconscious, non-responsive female at this location. Upon arrival, responding police and emergency medical services personnel were met by the resident of the home, James M. Kauffman, who reported finding his wife, April Kauffman, 47, deceased inside the second floor bedroom of their residence. Inside the second floor master bedroom of the residence, police and emergency medical service personnel discovered April Kaufman unconscious and lying face down on the floor. At 11:45 a.m., April Kauffman was pronounced dead. Atlantic County Medical Examiner Dr. Hydow Park, was notified and responded to the scene, at which time it was ascertained April Kauffman had sustained multiple gunshot wounds.

Through an ACPO investigation, it was determined that a long term alliance between members of the Pagan Outlaw Motorcycle Gang and former doctor, James Kauffman, was created for the mutual financial gain through the use of Kauffman’s medical practice for illegal drug distribution which culminated on May 10, 2012 with the ‘murder for hire’ of April Kauffman. Prior to 2011, James Kauffman and Ferdinand Augello had a relationship which centered on James Kauffman’s medical practice. In the summer of 2011, James Kauffman solicited Ferdinand Augello to murder Kauffman’s wife, April Kauffman. This appears to be for numerous reasons largely centered on April Kauffman’s threats of divorce. James Kauffman stated he would sooner kill April than grant the divorce and lose “half his empire.”

As a result of his objection to a favorable divorce settlement, April Kauffman threatened a number of actions to obtain divorce. In addition to her attempt to spend as much money as she could until a divorce was granted, April also threatened to expose the fraudulent and unlawful practices taking place at her husband’s medical office. Ultimately, James Kauffman made the decision to kill April Kauffman and, based on information and belief, Kauffman told Augello that April threatened to expose the illegal OXY distribution network they had established.

The illegal drug distribution network was set up in a typical pattern of hierarchy. James Kauffman and Ferdinand Augello were at the top. James Kauffman would give free scripts to those individuals sent by Ferdinand Augello. Ferdinand Augello had at least two individuals recruiting for him to obtain the scripts. In turn, those individuals then recruited additional people to receive the OXY scripts. Ferdinand Augello would receive either a cash payment of $1,000 per script or a predetermined number of pills once the script was filled. If an individual did not have insurance, they were required to pay $100 per visit. Those that would receive the scripts would either resell them or use them.

Ferdinand Augello propositioned a number of individuals to murder April Kauffman. These individuals were all Pagans, former Pagans or associated with the Pagans. He was unsuccessful for almost a year and James Kauffman was getting restless when Ferdinand Augello found Francis Mullholland. Mullholland was the cousin of a Pagan associate Joseph Mulholland and member of the drug enterprise. It is believed that Francis Mullholland received a ride to the Kauffman residence in the early morning hours of May 10, 2012. The doors were left open and Francis Mullholland was given a gun. He went inside, shot April Kauffman twice, killing her, and then left. It is believed there was payment made to both Francis Mullholland and his cousin Joseph Mulholland. It is unknown if this payment was in the form of cash, drugs or both. Francis Mullholland has stated that he received approximately $20,000 in cash for his role, though this number has been speculated at being higher. The money was picked up on the day of the murder by Ferdinand Augello’s ex-wife, Beverly Augello along with additional scripts. The scripts were used to obtain drugs that day and the money was given to FA.

Following the murder, the drug enterprise continued for five additional years. Those receiving pills did change during that time; however, every person to be involved in the drug enterprise was a Pagan, former Pagan or an associate of a Pagan. The enterprise folded in June of 2017 with the arrest of James Kauffman.

On Tuesday, June 13, 2017, the Atlantic County Prosecutor’s Office, with the assistance of agents from the FBI and local police agencies, executed a search warrant on both the business and the residential addresses of Kauffman. Upon executing the search warrant on June 13, Kauffman displayed a Ruger 9mm handgun. Ultimately a hostage negotiator was successful in getting Kauffman to surrender to authorities. He was taken into custody at the Psychiatric Intervention Program for monitoring. Kauffman was charged with unlawful possession of a weapon, possession of a weapon for an unlawful purpose, and obstruction of the administration of law.

On July 31, 2017, the state Appellate Division upheld Kauffman’s pretrial detention, following an appeal filed on June 22, 2017, after Kauffman was detained on June 19, by Atlantic County Superior Court Judge Bernard DeLury.

In September 2017, Kauffman was indicted on the following charges:

Second degree Unlawful Possession of a Weapon-Handguns without Permit
Second degree Unlawful Possession of a Weapon-Handguns without Permit
Second degree Possession of a Weapon for an Unlawful Purpose
Fourth degree Obstructing the Administration of Law or Government Function

Kauffman remains in custody at the Atlantic County Justice Facility, where he has been detained since June 13, 2017. Chief Assistant Prosecutor Seth Levy is prosecuting the case.

FBI Newark Special Agent in Charge Timothy Gallagher advised that “The FBI will continue to work closely with our law enforcement partners in an effort to bring to justice those responsible for this horrific crime and equally important, to provide answers and closure to the family and friends of April Kauffman.”

Atlantic County Prosecutor’s Office Sgt. James Scoppa Jr. and FBI Special Agent Daniel A. Garrabrant are the lead investigators on the case.

The investigation and arrests were the result of a joint operation between the Atlantic County Prosecutor’s Office, the FBI, Linwood, Egg Harbor Township, Somers Point and Lower Township police departments and the Cape May County Prosecutor’s Office.

Posted on 1 Comment

New Jersey State Police use of force in Lake Hopatcong, justified under the law

NJ state police

Janaury 10,2017

the staff of the Ridgewood blog

Lake Hopatcong, N.J,  In compliance with the Attorney General’s Directive on Police-Use-of-Force Investigations, this public statement is being issued on the findings of an investigation into a state trooper’s use of deadly force during an arrest in Lake Hopatcong, N.J., in May 2017. The arrestee was shot and wounded when he charged at the trooper during a domestic violence investigation.

Under the Attorney General’s Directive, the use of deadly force by the state trooper was investigated by the Attorney General’s Shooting Response Team, made up of investigators from the Division of Criminal Justice and the New Jersey State Police Homicide Unit. As a result of the investigation, Director Elie Honig of the New Jersey Division of Criminal Justice determined that presentation of the police-involved shooting to a grand jury was not required under the directive, because the facts showed that the use of force was justified under the law. The investigation included witness interviews, forensic analysis of the scene, and other evidence.

With regard to the specific factual circumstances of the incident, the investigation revealed that the incident began when troopers from the Netcong State Police Barracks received a report of a woman walking along the eastbound shoulder of Interstate 80. When a trooper responded to assist the woman and bring her to the State Police barracks, she reported that she had been assaulted by her boyfriend while they were driving on I-80, and he had made her get out of the car. She had visible injuries on her face and body, including a cut lip, a cut on her forehead, and bruises on her arm and shoulder. Her boyfriend was identified as Matthew Gerndt, 36, of Lake Hopatcong. He was reported to be highly intoxicated.

Five troopers responded to Gerndt’s apartment on Brady Road in Lake Hopatcong at about 11:30 p.m. to arrest him on an assault charge. Upon arrival, troopers saw Gerndt outside the rear of the residence on a patio, which was accessed by a sliding glass door from his basement apartment. Trooper 1 identified himself to Gerndt as State Police, but Gerndt retreated into the house and closed the patio door. Troopers approached the patio door and again identified themselves as State Police, but Gerndt did not respond. Trooper 1 reported that Gerndt moved a curtain and looked out at the troopers but did not open the door.

The troopers went to the front door, where they were admitted to the house by the landlord via a landing between the two levels of the split-level home. They were directed down a set of stairs to Gerndt’s apartment, which included a narrow hallway and six closed doors. The hallway was dark except for dim light from the landing and flashlights held by Trooper 1 and a second trooper who also descended the stairs to Gerndt’s apartment and entered the narrow hallway. The two troopers began knocking on all of the doors and commanding Gerndt to come out, with no response. With Trooper 1 in the lead and the second trooper following him, Trooper 1 pointed to a door leading to a recreation room, which was the room leading to the patio, and began to pry the door open.

At that point, Trooper 1 felt a rush of air on the back of his neck as the door behind him was yanked open by Gerndt. Trooper 1 heard the second trooper yell “Watch your back!” Trooper 1 turned and raised his left arm to defend himself as Gerndt allegedly rushed him, driving him back against a wall of the narrow hallway. Trooper 1 had already drawn his service pistol and was holding it at his right hip when he was charged. He fired twice while Gerndt was assaulting him. One round struck Gerndt in the side of his left buttock and exited toward the rear of his left buttock.

Gerndt retreated into the bedroom from which he had charged the trooper. The two troopers entered the bedroom and secured Gerndt, who continued to resist ineffectually until he was handcuffed. The troopers treated Gerndt and called for emergency medical personnel. After EMS arrived, Gerndt walked to the ambulance and was transported to Morristown Medical Center, where he was treated and released the same day. Gerndt was charged with assault and resisting arrest. None of the troopers were injured. Testing of Gerndt’s blood determined that he had a Blood Alcohol Content (BAC) of .29 percent.

This matter was reviewed by Director Honig and all portions of the Attorney General’s Directive on Police-Use-of-Force Investigations were complied with. After analyzing all of the facts and circumstances, Director Honig concluded that the trooper’s use of force was justified under the law. The facts and circumstances reasonably led the officer to believe his actions were immediately necessary to protect himself and his fellow officers from death or serious injury. An officer may use deadly force in New Jersey when the officer reasonably believes it is immediately necessary to protect the officer or another person from imminent danger of death or serious bodily harm.

In New Jersey, all investigations into police deadly force incidents are governed by an Attorney General directive – issued in 2006 and strengthened in 2015 – which establishes strict procedures for conducting these investigations. When a state- or county-level officer uses deadly force, the case is investigated by the Attorney General’s Shooting Response Team, made up of deputy attorneys general and detectives of the Division of Criminal Justice, as well as detectives of the State Police Homicide Unit, all of whom operate independently of their usual chain of command and report directly to the Director of the Division of Criminal Justice or a designee.

Posted on Leave a comment

Ridgewood : SALT Deduction to Charitable Contributions

1040taxirs_010415getty

January 8,2017

the staff of the Ridgewood blog

Ridgewood NJ, could New Jersey pull off the transfer of SALT deductions into Charitable Contributions ? We guess it depends on how you define  Charitable Contributions. 

So we referred to IRS Publication 526 Cat. No. 15050A  Charitable Contributions, https://www.irs.gov/pub/irs-pdf/p526.pdf

The IRS defines Charitable Contributions :

Types of Qualified Organizations Generally, only the following types of organizations can be qualified organizations. 1. A community chest, corporation, trust, fund, or foundation organized or created in or under the laws of the United States, any state, the District of Columbia, or any possession of the United States (including Puerto Rico). It must, however, be organized and operated only for charitable, religious, scientific, literary, or educational purposes, or for the prevention of cruelty to children or animals. Certain organizations that foster national or international amateur sports competition also qualify.

2. War veterans’ organizations, including posts, auxiliaries, trusts, or foundations, organized in the United States or any of its possessions (including Puerto Rico).

3. Domestic fraternal societies, orders, and associations operating under the lodge system. (Your contribution to this type of organization is deductible only if it is to be used solely for charitable, religious, scientific, literary, or educational purposes, or for the prevention of cruelty to children or animals.)

4. Certain nonprofit cemetery companies or corporations. (Your contribution to this type of organization isn’t deductible if it can be used for the care of a specific lot or mausoleum crypt.)

Examples of Charitable Contributions—A Quick Check Use the following lists for a quick check of whether you can deduct a contribution. See the rest of this publication for more information and additional rules and limits that may apply. Deductible As Charitable Contributions Not Deductible As Charitable Contributions Money or property you give to: Money or property you give to: Churches, synagogues, temples, mosques, and other religious organizations Federal, state, and local governments, if your contribution is solely for public purposes (for example, a gift to reduce the public debt or maintain a public park) Nonprofit schools and hospitals The Salvation Army, American Red Cross, CARE, Goodwill Industries, United Way, Boy Scouts of America, Girl Scouts of America, Boys and Girls Clubs of America, etc. War veterans’ groups
Expenses paid for a student living with you, sponsored by a qualified organization

Out­ of ­pocket expenses when you serve a qualified organization as a volunteer Civic leagues, social and sports clubs, labor unions, and chambers of commerce Foreign organizations (except certain Canadian, Israeli, and Mexican charities) Groups that are run for personal profit Groups whose purpose is to lobby for law changes Homeowners’ associations Individuals Political groups or candidates for public office
Cost of raffle, bingo, or lottery tickets
Dues, fees, or bills paid to country clubs, lodges, fraternal orders, or similar groups
Tuition
Value of your time or services
Value of blood given to a blood bank Table 1.
Page 2 of 22 Fileid: … tions/P526/2016/A/XML/Cycle04/source 9:03 ­ 19­Jan­2017 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
Page 2 Publication 526 (2016)

This is where is gets interesting:

5. The United States or any state, the District of Columbia, a U.S. possession (including Puerto Rico), a political subdivision of a state or U.S. possession, or an Indian tribal government or any of its subdivisions that perform substantial government functions. (Your contribution to this type of organization is deductible only if it is to be used solely for public purposes.)

Example 1. You contribute cash to your city’s police department to be used as a reward for information about a crime. The city police department is a qualified organization, and your contribution is for a public purpose. You can deduct your contribution.

Example 2. You make a voluntary contribution to the social security trust fund, not earmarked for a specific account. Because the trust fund is part of the U.S. government, you contributed to a qualified organization. You can deduct your contribution. Examples. The following list gives some examples of qualified organizations. Churches, a convention or association of churches, temples, synagogues, mosques, and other religious organizations. Most nonprofit charitable organizations such as the American Red Cross and the United Way. Most nonprofit educational organizations, including the Boy Scouts of America, Girl Scouts of America, colleges, and museums. This also includes nonprofit daycare centers that provide childcare to the general public if substantially all the childcare is provided to enable parents and guardians to be gainfully employed. However, if your contribution is a substitute for tuition or other enrollment fee, it isn’t deductible as a charitable contribution, as explained later under Contributions You Can’t Deduct. Nonprofit hospitals and medical research organizations. Utility company emergency energy programs, if the utility company is an agent for a charitable organization that assists individuals with emergency energy needs. Nonprofit volunteer fire companies. Nonprofit organizations that develop and maintain public parks and recreation facilities. Civil defense organizations.

https://www.irs.gov/pub/irs-pdf/p526.pdf

Posted on Leave a comment

New Jersey has been in the top five outbound states in each of the last seven years from 2011 to 2017

InboundOutbound[1]

see they above chart

January 8,2017

the staff of the Ridgewood blog

Ridgewood NJ, North American Moving Services has just released its annual US Migration Report for 2017 based on household moves from one US state to another last year.

In 2017, the top five inbound US states were: Arizona, No. 1 with 67% inbound moves vs. 37% outbound, followed by Idaho (63%-37% in-out), North Carolina (62-38%), South Carolina (62-38%) and Tennessee (58-42%).

The top five outbound US states last year were No. 1 Illinois (32% inbound moves vs. 68% outbound), followed by Connecticut (38%-62% in-out), New Jersey (38-62%), California (40-60%), and Michigan (41-59%).

Illinois has been among the top five outbound states in each year from 2011 to 2017 and was No. 1 or No. 2 in each of those years except 2011 when it was No. 3. New Jersey has been in the top five outbound states in each of the last seven years from 2011 to 2017. Connecticut has been in the top five outbound states every year since 2011 except for 2012, and Michigan every year except 2013. Last year was the first time that California was among the top five outbound states.

For the top five inbound states, Arizona has been included every year except 2011, and it’s been No. 1 or No. 2 in each of the last four years. South Carolina has been in the top five inbound states in each of the last seven years, and North Carolina every year except two (2011 and 2015). Florida has been among the top five inbound states in most years but wasn’t in 2017, it was replaced in the top five by Tennessee, which made its debut last year.

Posted on 7 Comments

Former Brick Township Employee Sentenced to Five Years in Prison for Stealing More than $940,000 in Claims from Township Health Insurance Program

Kim-Bogan[1]

January 7,2018

the staff of the Ridgewood blog

Brick Township NJ,  Attorney General Christopher S. Porrino and the Office of the Insurance Fraud Prosecutor (OIFP) announced that a former Brick Township employee today was sentenced to five years in state prison for stealing more than $940,000 from the township’s health insurance program.

Kim E. Bogan, 52, of Brick, was sentenced in accordance with a plea agreement reached when she pleaded guilty to second-degree theft by deception on October 24, 2017. She must also pay $941,354.77 in restitution to Brick Township under the terms of the plea agreement and sentence imposed by Superior Court Judge Linda G. Baxter in Ocean County.

During her plea hearing, Bogan, who worked in the township’s Building Department, admitted that between January 2011 and April 2017 she assisted an-out-of-state health care practitioner in submitting false claims to her employee health insurance program, which is self-funded by Brick Township. The claims were for treatments purportedly rendered to individuals covered under Bogan’s policy.

Bogan admitted she allowed the practitioner to submit claims on her insurance for services she knew had not been rendered and then endorsed the insurance checks when they were mailed to her, knowing the money was stolen.

“This defendant is going to prison for willingly participating in a health care claims scheme that cost Brick Township taxpayers – her own friends and neighbors – nearly a million dollars,” said Attorney General Porrino. “Her sentence sends a message that stealing money from health care plans is a serious crime with serious consequences, no matter what role you play in the illegal plot.”

“Through her illegal acts, the defendant stole taxpayer dollars meant to cover health care services for township employees. In addition to serving time in prison, she will be responsible for repaying those stolen funds,” said Acting Insurance Fraud Prosecutor Christopher Iu. “We will continue to aggressively investigate and prosecute individuals who commit these kind of health care claims crimes.”

Posted on 5 Comments

Legalization of Recreational Cannabis Use could result in a windfall to the State exceeding $1 billion

Cheech-Chong-Up-In-Smoke

NJ Deficits Could Go Up in Smoke 

December 26,2017

the staff of the Ridgewood blog

ROSELAND NJ,  Upon the release of its White Paper exploring what it calls “The most complex environment ever to legalize recreational cannabis use,” lawyers at Brach Eichler observed that the initial organization of the industry could result in a windfall to the State exceeding $1 billion — before a single ounce is delivered.
The figure is based on the State creating an aggressive privatization of the industry in which large technology, testing, cultivation, transportation and other industry participants compete for roles and pay upfront licensing, franchising, and other fees.

“The State needs $3 billion to close its budget gap and it so far has identified cannabis as contributing $300 million from sales tax,” says John D. Fanburg, Managing Member and Chair of the Health Law Practice at Brach Eichler. “Presumptively, if there is a $2 billion recreational cannabis market in New Jersey, privatized functions could be offered in RFPs that provide lengthy contracts – the type that attract investors who pay-up for predictable returns. A billion dollars is probably a modest estimate of the opportunity New Jersey can potentially realize as it legalizes recreational cannabis.”

The White Paper, The Business, Regulatory and Legal Challenges — and Opportunity — of Legalized Cannabis in New Jersey, which explores the differences between New Jersey’s presumed recreational cannabis legalization versus circumstances in states with existing programs, warns that “New Jersey holds complexities not faced by other states unrelated to the production, distribution, sale, and use of marijuana, but attributed to a simple fact of life: this is New Jersey, and almost everything is harder here.”
“Home rule is the principal culprit,” says Charles X. Gormally, Member and Chair of the Litigation Practice for Brach Eichler. “It’s the third rail of New Jersey politics, so great care will be taken to protect the will of municipalities in drafting the Cannabis Statute.

“Part of the social justice initiative will be to provide economic opportunities in urban communities, which will be very appealing to some municipalities. However, it’s inevitable that there will be great tension between local officials and regulators about who gets what part of the pie – and why.”

The White Paper observes solutions developed in other states around not only Industry Structure, but a variety of oversight, taxation, and participation issues, including sections on Home Rule, Property Taxes, Delivery, Banking, Commerce, Public Health, Testing Product Safety, Regulatory Authority, Criminality, and Cannabis as Tourism. While the Administration has not indicated any specific direction on any of the issues broached in the White Paper, Mr. Gormally says it will be “unavoidable” that fiscal issues dominate the dialogue.

“The ultimate social justice would be to immediately decriminalize possession, but that does not provide the long-term political leverage that will lead to a healthy industry and a leveraging of the state’s interests. You have a lot of smart people in the incoming Administration who have already seen that current legislative proposals will not generate the $300 million they already have allocated to programs they are committed to enact immediately.

“At the edges of this industry you have a black-market cohort that wants to legitimize its crop and reduce the risks of its current distribution program; and another cohort with access to a massive pool of capital if margins are protected,” says Mr. Fanburg. “In the middle is a new administration desperate to lead the State back to economic relevance and a legislature determined to protect programs that are threatened by fiscal realities. So, while it is unlikely that the state goes all the way and monetizes every component of the industry, as they start to tinker with a new Statute, the opportunity to generate upfront cash will prove at least partially irresistible.”

Posted on Leave a comment

Reader says NJ residents are hurt in the new tax bill because NJ Democrats bleed them dry at the state level

Josh Gottheimer

I am the original poster and I am VERY aware of which NJ residents get hurt by this bill.
These are the same NJ residents that Obama forced a tax hike on in 2010. These are the same NJ residents that NJ Democrats are chomping at the bits to hike taxes on.
These NJ residents are hurt in the new tax bill because NJ Democrats bleed them dry at the state level. Someone earning the same amount in Texas is going to get a net tax cuts.
Repeat after me – these NJ residents are being looted by Democrats, such as Josh Gottheimer.

Posted on 2 Comments

Reader says In 10 years NJ will be populated by those that can’t move, and those that somehow have their snout in the teacher, fireman, policeman, state worker pension trough

for sale Ridgewood_Real_Estate_theRodgewopodblog

file photo by Boyd Loving

This bill is bad for NJ but that’s not an indictment of the bill it’s an indictment of the politicians we elect and the state finances we have been complicit in creating. Josh needs to go not because he did or did not vote for this bill but because he can’t bring home the bacon. NJ is a net out flow state yet we just got our heads handed to us because our state costs are too damn high. In 10 years NJ will be populated by those that can’t move, and those that somehow have their snout in the teacher, fireman, policeman, state worker pension trough. Young state pension workers will have to live here and support old state pensioners. That math just won’t add up.

Posted on 3 Comments

Reader says Wake up New Jersey

Trump

Wake up NJ. Boeing, ATT (who move down out of NJ), Comcast, Wells Fargo, and about 12 more companies so far have announced employee bonuses, wages, increased capital spend, and hiring all due to tax cut. That is all great for middle class and everyone else
Illoinis (another high tax state) like NJ calculate it is losing people at the rate of one every 4 minute every to low tax states. Wonder how NJ is doing for mid to high income families leaving the state? How many will leave when Murphy gets his way.
How can anyone defend a 11-13% state income tax in a state that is bankrupt. How can anyone defend ridgewood property tax that is some cases are 50-100k on houses that lose value every year, with schools getting worse, services declining, and no end in sight. Can we really defend a 110 million annual school budget? How many adminstrators do we need? How many vehicles does the schools need? We neeed to really look into this budget and trim the fat. The kids are getting shortchanged. Walk into the high school and look at the teacher absense list and how many kids get assigned to just sit in a large room with a supervisor but no lessons.
We need to wake up, the federal government is finally doing something. Local should be easier with proper leadership.

Posted on 9 Comments

New Jersey Once Again Ranks Last in Business Tax Climate

Phill Murphy -Sara Medina del Castillo

December 20,2017

the staff of the Ridgewood blog

Ridgewood NJ, the latest Tax Foundation ratings are out and once again New Jersey ranks dead last in business climate . #50 New Jersey ranked in the bottom 5 along with
#49 New York , #48 California ,#47 Vermont and #47 District of Columbia .

Neighboring states ,#15 Delaware ,#26 Pennsylvania and #49 New York .

According to the Tax Foundation , “The absence of a major tax is a common factor among many of the top 10 states. Property taxes and unemployment insurance taxes are levied in every state, but there are several states that do without one or more of the major taxes: the corporate income tax, the individual income tax, or the sales tax. Wyoming, Nevada, and South Dakota have no corporate or individual income tax (though Nevada imposes gross receipts taxes); Alaska has no individual income or state-level sales tax; Florida has no individual income tax; and New Hampshire, Montana, and Oregon have no sales tax.

This does not mean, however, that a state cannot rank in the top ten while still levying all the major taxes. Indiana and Utah, for example, levy all of the major tax types, but do so with low rates on broad bases.

The states in the bottom 10 tend to have a number of afflictions in common: complex, nonneutral taxes with comparatively high rates. New Jersey, for example, is hampered by some of the highest property tax burdens in the country, is one of just two states to levy both an inheritance tax and an estate tax, and maintains some of the worst-structured individual income taxes in the country . “

Posted on 1 Comment

Trenton Politicians Always Pay Themselves First

money-growing-on-tree-image-8

December 15,2017

the staff of the Ridgewood blog

Trenton NJ, A state Senate panel quickly advanced a Democratic bill that would give some elected officials bigger pensions, pushing through a vote on Thursday in about one minute and without any debate or public testimony.

The New Jersey Pension and Health Benefits Commission has stated that there are a combined $90 billion in unfunded liabilities for future pension and retiree healthcare benefits .

The bill known as (S3620) would allow certain elected officials, such as the outgoing Camden Mayor Dana Redd, to re-enroll in the Public Employees’ Retirement System (PERS) even if they were removed due to switching from one elected office to another.

Effectively, the bill creates a special exemption that allows Redd to cash in on a bigger public pension at a time when public workers who are not politically connected have seen cutbacks to their benefits and a freeze in yearly cost-of-living adjustments for retirees since 2011.

The legislation  is moving quickly because Senate President Steve Sweeney (D-Gloucester), a Redd ally, has given the bill  special status, allowing it to move forward without a customary review by a public body that scrutinizes the cost of pension and health benefits legislation and makes recommendations to lawmakers.

In a “hail Mary” the bill could be approved by the Assembly and Senate and signed by Gov. Chris Christie who is another Redd ally during the waning days of the lame-duck Legislature. A full vote in the Assembly and Senate could be held on the bill before the legislative session ends on Jan. 9.