Author: Kevin G. Walsh

Roll-Out of COVID-19 Vaccines in New Jersey

Pharmaceutical innovation has positioned the world to witness the beginning of the largest vaccination effort that humankind has ever seen. Vaccine doses for COVID-19 are arriving in New Jersey this week, and the first doses will be injected in the arms of frontline healthcare workers and seniors by the close of business today in Newark’s largest hospital. More important than today’s historic event, the current New Jersey plan to vaccinate 70 percent of the Garden State’s current eligible population is worth reviewing. As the COVID-19 vaccines roll out, New Jersey plans to follow the Phased Approach framework crafted by the Centers for Disease Control and Prevention (CDC). Under the CDC’s framework, the initial wave of vaccines will be administered first to healthcare personnel. More specifically, Phase 1A of New Jersey’s COVID-19 vaccination plan will include “any paid or unpaid persons serving in healthcare settings who have the potential for direct or indirect exposure to patients or infectious materials and are unable to work from home.” Examples of workers within healthcare settings who are eligible to receive COVID-19 vaccinations during Phase 1A include, but are not limited to: Licensed healthcare professionals, such as doctors, nurses, pharmacists, and dentists; Healthcare staff, including receptionists, janitors, clergy, mortuary services, and laboratory technicians; Consultants and per diem contractors who are...

Explanation of Governor Murphy’s Executive Order 107 Regarding Non-Retail or Manufacturing Businesses

Governor Murphy issued Executive Order 107 on March 21, 2020 (the “Order”), which requires the closure of all non-essential brick-and-mortar retail businesses, and requires all New Jersey residents to remain at home or at their place of residence unless engaging in one of nine exempted activities. Order at ¶ 2. One of the exempted activities permitting travel within the State is when a person is “reporting to, or performing, their job.” Id. However, and as it relates to this exemption, the Order requires that “all businesses or non-profits in the State, whether closed or open to the public, must accommodate their workforce, wherever practicable, for telework or work-from-home arrangements.” Order at ¶ 10. In the event that the functions of a particular employee or employees cannot be performed through a telework or work-from-home arrangement, the Order allows those employees to be at the place of employment, but the business or non-profit must make its “best efforts to reduce staff on site to the minimal number necessary to ensure that essential operations can continue.” Order at ¶ 11 (emphasis added). The Order specifically identifies certain types of employees that may need to be physically present at their place of businesses. These include the following: Law enforcement, fire fighters and other first responders; Cashiers or store clerks;...

The Coronavirus Pandemic and Your Business: How We Can Help – The Big Picture

The unprecedented scope of the response to the coronavirus (COVID-19) pandemic has drastically affected every facet of life and continues to impact our clients in a growing number of ways. Gibbons attorneys have been working closely with clients over the past weeks to navigate emergent, unexpected challenges in a wide range of areas, from the novel human resources issues that arise when an entire workforce is required to work remotely – or when workplaces or specific jobs within a workplace are not equipped for work-from-home arrangements – to perhaps first-time interactions with local, county, and state officials and regulators. Over the coming days, Gibbons will continue reaching out regularly to clients to let you know the various ways we can assist you with advice, counsel, best practices, and creative solutions for this turbulent situation, to help you ensure operational continuity and emerge from the current crisis. Please do not hesitate to contact Kevin G. Walsh, Co-Chair of the Gibbons Government & Regulatory Affairs Department, with any general questions regarding your legal obligations and options in connection with the COVID-19 pandemic. More in the “Coronavirus and Your Business” Series: Insurance Coverage in the Age of COVID-19 Economic Loss Recovery/Minimization with State and Federal Programs Force Majeure Provisions in Contracts

Medical Marijuana Reforms on the Horizon

Governor Phil Murphy and the New Jersey Legislature are taking actions towards expanding the medical marijuana program. The Governor announced new rules and regulations to reduce barriers to access for medical marijuana. These include expanding the list of debilitating medical conditions eligible for treatment with cannabis, permitting currently licensed Alternative Treatment Centers (ATCs) to dispense at satellite locations, eliminating the physician registry for doctors who prescribe marijuana, and soliciting new applicants for ATC permits. These actions stem from the Administration’s report on ways to expand access to marijuana for medical purposes. The New Jersey General Assembly Health and Senior Services Committee also recently approved legislation that would vastly expand the State’s existing medical marijuana program. The bill, A-3740, would allow medical marijuana to be prescribed for any condition and give greater flexibility for patients and caregivers to purchase and transport medical marijuana. Most importantly, and unlike the current medical marijuana distribution system where ATCs both cultivate and dispense medical marijuana, A-3740 creates a separate manufacturing and licensure system. The bill allows for the licensure of 34 medical marijuana dispensaries that would be authorized to dispense marijuana and marijuana products to patients. The legislation would also permit licensure of six medical marijuana cultivator-processors to process marijuana and marijuana infused/derived products, which it may supply to medical marijuana dispensaries....

New Jersey Corporate Reforms Become Law

A package of bills that reform the New Jersey Business Corporation Act (“NJBCA”) were signed into law on January 16, 2018. We previously wrote about this legislation which was modeled upon provisions of the “Delaware Business Corporation Law” and was recommended for enactment by the “New Jersey Corporate and Business Law Study Commission.” These revisions generally benefit corporate boards of directors and modernize provisions of the NJBCA. Inspections of Corporate Books and Records (P.L. 2017, c.364) Assembly Bill 2975 (Diegnan/Pinkin) modifies the NJBCA to allow corporations to impose reasonable limitations or conditions on the use or distribution of requested corporate books and records. While the law does not define such “limitations and conditions,” the legislative statement provides an example of conditioning the receipt of requested materials on the demanding shareholder agreeing to customary confidentiality obligations. The measure preserves the ultimate authority of a court to decide and order relief in actions brought by shareholders for inspection of materials. Derivative Proceedings and Shareholder Class Actions (P.L. 2017, c.362) Assembly Bill 2970 (Diegnan/Pinkin) gives corporations greater flexibility to vary the applicability or effect of commencing and maintaining a derivative proceeding and shareholder class action. This new law deviates from the prior standards and requires that the NJBCA’s provisions shall apply to a corporation unless that corporation chooses to vary the...

New Jersey Legislature Considers Corporate and Business Law Reforms

A series of bills that would reform the New Jersey Business Corporation Act (“NJBCA”) are slowly churning their way through the New Jersey State Legislature. The pending legislation is modeled upon provisions of the “Delaware Business Corporation Law” and the recommendations of the “New Jersey Corporate and Business Law Study Commission.” In sum, the proposed revisions would generally benefit corporate boards of directors and modernize provisions of the NJBCA. Inspections of Corporate Books and Records Assembly Bill 2975 (Pinkin)/Senate Bill 2238 (Diegnan) modifies the NJBCA to allow corporations to impose reasonable limitations or conditions on the use or distribution of requested corporate books and records. While the bill does not define such “limitations and conditions,” the legislative statement accompanying A-2975/S-2238 provides an example of conditioning the receipt of requested materials on the demanding shareholder agreeing to customary confidentiality obligations. The bill preserves the ultimate authority of a court to decide and order relief in actions brought by shareholders for inspection of materials. On January 23, 2017, A-2975 passed the General Assembly by a vote of 69-0. On June 19, 2017, S-2238 passed the Senate Commerce Committee by a vote of 4-0. This bill is now awaiting a vote in the full State Senate. Derivative Proceedings and Shareholder Class Actions Assembly Bill 2970 (Pinkin)/Senate Bill 2236 (Diegnan) gives...

Federal Tax Reform and the Potential Repeal of the Cash Method of Accounting

In the wake of the introduction by President Trump of his Tax Reform proposal on April 26, 2017, Congress, especially the U.S. House of Representatives Committee on Ways and Means, will be considering various methods to fund tax rate reductions. The White House formally delivered the President’s proposed budget to Congress on May 23, 2017. One proposal likely to be under consideration is the repeal of the cash method of tax accounting for service businesses, though many experts dispute whether many of the budget’s finer details will ever pass both houses of Congress. Under current law, the cash method of accounting cannot be used for income tax purposes by (i) businesses that sell goods and therefore must keep inventories, and (ii) C corporations with average annual gross receipts of $5,000,000 or more. A taxpayer-favorable exception from the C corporation rule is available for qualified personal service corporations, consisting of personal service corporations (PSCs) in the fields of health, law, engineering, architecture, accounting, actuarial science, performing arts, or consulting, when at least 95% of the stock of such PSCs is owned directly or indirectly by employees performing services in one of such fields. To oversimplify things, this means that law firms pay federal tax based on actual cash receipts, not based upon billings or upon what...

Sufferers of PTSD Gain Access to Medicinal Marijuana

On September 14, 2016, New Jersey amended its medicinal marijuana law to add post-traumatic stress disorder (‘PTSD’) as a qualifying condition, permitting PTSD sufferers to gain access to this unconventional therapy for the first time. Some background — In 2009, New Jersey became the 14th state to allow access to medicinal marijuana. Over the past seven years, 11 additional states have expanded their laws to allow access to medical marijuana. In New Jersey, the original law provided access to medical marijuana for the following conditions: Amyotrophic lateral sclerosis; Multiple sclerosis; Terminal cancer; Muscular dystrophy; Inflammatory bowel disease, including Crohn’s disease; Terminal illness, if the physician has determined a prognosis of less than 12 months of life; Seizure disorder, including epilepsy; Intractable skeletal muscular spasticity; Glaucoma; Positive status for human immunodeficiency virus; Acquired immune deficiency syndrome; and Cancer. Under the amended law signed by Governor Christie, a patient with PTSD would be eligible for medicinal marijuana if she has been unsuccessful alleviating her symptoms with conventional medical therapy. Additionally, the patient would have to obtain certification of her condition from a physician with whom she has a “bona fide physician-patient relationship.” Several other recent developments on this issue merit a brief review. In August 2016, the Department of Health (“DOH”) asked for public input on additional...

Why and How – Basics of Government Affairs (Part 1 of 2)

“Don’t you know someone in the Governor’s Office?” “You know the Senate President, right?” “That woman we met at that Chamber of Commerce event last month, she is the Chief of Staff to the Assembly Speaker, right?” After a lobbyist hears these words, most times the next sentence goes something like this: “We are having a problem with … and our CEO asked me to see what we can do in order to …” Then the client relates to us the sad tale of a difficult piece of legislation, or regulation, or land use development that will negatively impact the client’s core business. The CEO then asks you to fix the problem and save the day. And more times than not, the final nail in the coffin necessary to sink the client’s business interest in this bill, regulation, or development is being acted upon by the government … in a matter of days. In these types of cases, it is simply too late. Too late to begin to think about a government affairs strategy. The cake has already been baked. These scenarios happen, unfortunately, more frequently than one would think, even among sophisticated businessmen and-women across a myriad of industries. It cannot be overstated that if your company is a serious player in your industry,...

New Jersey Moves Forward with Attempts to Regulate E-Cigarettes

On May 16, the New Jersey Senate Health, Human Services and Senior Citizens Committee heard more than three hours of testimony from a variety of groups on a bill — S.298, introduced by Senator Joe Vitale — that would prohibit the sale of flavored electronic cigarettes. New Jersey banned the sale of flavored traditional cigarettes in 2008 because of concerns regarding their attractiveness to children. The sponsor believes that the same concerns apply to electronic cigarettes today, making this legislation necessary to create uniformity in the state’s public health laws, all of which are designed to keep children from starting a smoking habit. Opponents contend that this bill would reduce adults’ access to a product that has enabled many tobacco-addicted people to quit smoking. According to NCSL, 48 states and two territories currently prohibit sales of electronic cigarette products to minors. (Michigan and Pennsylvania still permit the sale of electronic cigarette products to minors.) In 2010, New Jersey was one of the first states to include electronic cigarettes among other tobacco items that would not be sold to minors when it expanded the New Jersey Smoke-Free Air Act. S.298 was released from committee by a vote of 6-2 and now awaits action by the Senate Budget and Appropriations Committee. Several other bills that would impact...