Gibbons Law Alert

Gibbons Law Alert Blog

On January 15, 2021

As we previously reported, the New Jersey Department of Environmental Protection (NJDEP) has embarked on a robust process for soliciting public input on the regulations it will propose to implement in the state’s landmark environmental justice law, which was enacted last year (and which will not become effective until NJDEP promulgates its regulations). The first meeting was held remotely on October 22, 2020. The process goes well beyond the normal notice-and-comment rulemaking procedure and offers members of the public and the regulated community an unusually broad set of options for submitting their views to the NJDEP. Under the new statute, a company seeking to obtain or renew certain NJDEP permits for new or expanded facilities that fall within the statute’s scope and are located in overburdened communities must prepare an “environmental justice impact statement” and provide for expanded public hearings on its project. In addition to applying the requirements of other applicable statutes and regulations, NJDEP must then determine if the proposed new or expanded facility will cause a disproportionate impact on the affected community. If NJDEP makes such a finding, it must deny the application if it seeks a new permit (unless the facility addresses a “compelling public interest” in the community) or impose extra conditions if the application seeks a permit renewal or...

Trademark Modernization Act Becomes Law, Easing the Burden of Trademark Owners to Obtain Injunctive Relief and Curbing Trademark Registrations That Falsely Claim Use of a Mark

by Paolo A. Strino

Posted in Intellectual Property / Trademarks / USPTO

On January 14, 2021

As part of the recent COVID-19 relief and government funding bill (“the Consolidated Appropriations Act”), Congress introduced significant changes to U.S. trademark law. The Trademark Modernization Act of 2020 (TMA) was signed into law on December 27, 2020. The Act intends to curb trademark registrations that falsely claim use of a mark, addresses the false-use-claim problem by creating new procedures to improve examination effectiveness and efficiency, and promotes remedies designed to protect consumers in trademark cases. The TMA, which becomes effective one year after the date of its enactment, amends the Lanham Act by changing certain procedures in trademark prosecution before the United States Patent and Trademark Office (USPTO), providing new avenues for canceling fraudulent registrations, and clarifying the standard for obtaining injunctive relief in trademark litigation. The key takeaways from the Act are discussed below. Third-Party Submission of Evidence of Non-Use: Section 3 of the Act provides for third-party submission of evidence during examination of an application for federal registration of a trademark. In particular, codifying the practice of Letters of Protest, Section 3(a) allows third parties to submit to the USPTO certain evidence relevant to the examination of a trademark application for consideration in deciding whether a trademark registration should be issued. Relevant evidence can relate to any ground on which an examiner...

NJ’s New Economic Incentive Legislation Includes Supplement to Brownfields Program

by Gibbons P.C.

Posted in Development/Redevelopment

On January 14, 2021

The New Jersey Economic Recovery Act of 2020 (NJERA), recently signed into law by Governor Murphy, includes an important new tax incentive for Brownfields called the “Brownfields Redevelopment Incentive Program Act” (BRIPA), included as Sections 9 through 19 in the act. BRIPA supplements the existing “Brownfield and Contaminated Site Remediation Act” (BCSRA), which provides funds for reimbursement of varying components of remediation costs at Brownfield sites based on certain eligibility criteria, including the Hazardous Discharge Site Remediation Fund and the Brownfield Site Reimbursement Fund. Under BRIPA, as under BCSRA, a “Brownfield site” is any commercial or industrial site that is “vacant or underutilized and on which there has been, or there is suspected to have been, a discharge of a contaminant.” BRIPA further expands the definition of Brownfield sites to include sites where there is or suspected to be contaminated building materials. BRIPA takes an approach similar to that of the New York Brownfields Cleanup Program by awarding tax credits of up to the lesser of 40 percent of remediation costs or $4 million under redevelopment agreements entered into by the state and a developer. There is a cumulative cap of $50 million that can be awarded annually under BRIPA. Projects that are eligible for tax credits under BRIPA are those that are located at...

Gibbons Environmental Law Department Congratulates Former Director Shawn LaTourette on Being Named NJDEP Acting Commissioner

by Gibbons P.C.

Posted in Environmental and Green Issues

On January 14, 2021

The Gibbons Environmental Law Department proudly congratulates former Director Shawn LaTourette on his being named Acting Commissioner of the New Jersey Department of Environmental Protection (NJDEP) by Governor Murphy. Shawn joined the Gibbons Environmental Law Department as an associate in 2015 where he was provided with a supportive platform on which to develop and expand his legal and environmental skills. Recognizing his significant talent, Gibbons elevated him to Director in 2018. Shortly thereafter, he was tapped to serve as Chief Counsel for the NJDEP. During his time at Gibbons, he was an integral part of the Environmental Law Department where he worked on complex environmental litigation matters under the New Jersey Spill Compensation and Control Act and the federal Comprehensive Environmental Response, Compensation, and Liability Act, as well as other significant litigation matters involving contract and common law claims between private parties. He also represented clients in cutting-edge permitting and regulatory compliance matters, and on brownfields redevelopment projects. “We are extremely proud of Shawn, and we are glad that our department was able to enhance his development as an environmental attorney such that he has been able to succeed so profoundly in public service,” said Camille V. Otero, Director and Chair of the Gibbons Environmental Law Department. “Shawn was a vital part of our Department’s...

Former Gibbons Director Shawn LaTourette Named NJDEP Acting Commissioner

by Gibbons P.C.

Posted in Environmental and Green Issues

On January 13, 2021

Shawn LaTourette, formerly a Director in the Environmental Department at Gibbons P.C., has been named Acting Commissioner of the New Jersey Department of Environmental Protection (NJDEP), as announced by New Jersey Governor Murphy earlier today. Mr. LaTourette previously served as NJDEP Chief Counsel. Mr. LaTourette joined Gibbons in 2015 as an associate and was promoted to Director in 2018, prior to joining the NJDEP. At Gibbons, his practice focused on environmental and closely related legal fields, in both litigation and transactional settings involving environmental conditions, land use, and development. He helped clients across various industries manage compliance with and enforcement of state and federal environmental and land use laws, including their application to commercial, real estate, construction, and infrastructure transactions. At Gibbons, Mr. LaTourette was the firm’s go-to lawyer to handle all environmental aspects of our clients’ real property acquisitions, developments and redevelopments, and construction projects, which included some of the most high-profile real estate, construction, and infrastructure matters in New Jersey. “When he was here, all of us at Gibbons recognized that Shawn was a rising leader in the environmental bar in New Jersey and throughout the region,” said Patrick C. Dunican Jr., Chairman and Managing Director of the firm. “We are delighted to congratulate him on proving us right.” For an article on...

CREMA Provides the Framework for the Regulated Recreational Cannabis Industry in New Jersey, but Disincentivizes Businesses From Seeking to Achieve Certain Legislative Goals

by Gibbons P.C.

Posted in Development/Redevelopment

On January 13, 2021

In November 2020, New Jersey voters passed the referendum to add an amendment to the State Constitution for the legalization of recreational cannabis by a resounding margin of 2 to 1. The amendment went into effect as of January 1, 2021; however, implementation and the establishment of the legal recreational cannabis market requires further legislative and regulatory action. As the first step in this process, the State Assembly and Senate each passed the New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act (“CREMA”). CREMA is the result of tireless legislative negotiation that began well before the November 2020 vote. The end result includes provisions aimed at public policy and social justice considerations, and at creating a competitive business marketplace. For example, under CREMA, the Legislature takes effort to address the disproportionate negative impacts that cannabis prohibition has had on Black New Jerseyans and other minority communities. With the goal of promoting social equity and redressing the historical impact of unequal application of drug laws on minority communities, CREMA provides priority for license applications to businesses located in “impact zones,” which are defined as municipalities that have a population of 120,000 or more or that rank in the top 40 percent for cannabis-related arrests, and mandates that at least 70 percent of tax revenue on...

FFCRA Benefits Become Optional and Unemployment Benefits Change With New Stimulus Package

by Susan L. Nardone

Posted in Employee Benefits / Family Leave

On January 7, 2021

On December 27, 2020, President Donald Trump signed the fourth major COVID-19 response bill into law. The stimulus package includes focused relief in a variety of areas (see our December 21, 2020 post), but two important elements are worth highlighting for employers. First, there have been several changes to pandemic-related unemployment insurance benefits since guidelines were first provided last spring. Second, the emergency paid sick leave and expanded family and medical leave benefits provided under the Families First Coronavirus Response Act (FFCRA), explained here, expired on December 31, 2020 and were not extended, but employers who opt to offer them remain eligible for tax credits. Unemployment Insurance (UI) Benefits Supplement and Extension The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) provided eligible recipients of state unemployment benefits with an additional $600 per week in federal benefits, which expired in July 2020. The new stimulus package provides eligible individuals who are already collecting state-provided unemployment benefits with an additional $300 per week in federal benefits ($300 less than the last stimulus relief package) for up to 11 weeks through March 14, 2021. These payments, however, are not retroactive to July 2020. The new stimulus package also extends the Pandemic Unemployment Assistance (PUA) and Pandemic Emergency Unemployment Compensation (PEUC) programs. PUA provides benefits to individuals...

Governor Murphy Signs New Economic Incentive Legislation

by Paul J. St. Onge and Michael D. DeLoreto

Posted in Economic Development

On January 7, 2021

Governor Murphy signed into law the New Jersey Economic Recovery Act of 2020 (NJERA), opening a new chapter in the Murphy Administration’s efforts to incentivize businesses to invest in New Jersey and to assist the State in recovering from the economic downturn caused by COVID-19. NJERA’s enabling legislation, almost 250 pages long, creates new economic development programs, amends existing programs, and makes operational changes to the New Jersey Economic Development Authority (EDA). New Incentive Programs NJERA 2020 creates nine new incentive programs: The Historic Property Reinvestment Program provides tax credits for part of the cost of rehabilitating historic properties in this State. Tax credits under this program are capped at $50 million annually for six years. Qualified historic properties potentially eligible for tax credits include those designated on the National Register of Historic Places or the New Jersey Register of Historic Places, by the Pinelands Commission, or by municipalities under certain criteria approved by the State Historic Preservation Officer. The Brownfields Redevelopment Incentive Program provides tax credits to compensate developers for remediation costs of redevelopment projects located on brownfield sites. Tax credits under this program are capped at $50 million annually for six years. Brownfield sites include any former or current commercial or industrial site that is currently vacant or underutilized and on which there...

The Corporate Transparency Act: Understanding New Federal Reporting Requirements of Company Ownership

by Lawrence A. Goldman

Posted in Corporate Information and Records Management Policies / Corporations

On January 5, 2021

New anti-money laundering legislation was included as part of the National Defense Authorization Act (NDAA) enacted by Congress on January 1, 2021 through the override of a presidential veto. The NDAA is a series of federal laws primarily specifying the annual budget and expenditures of the United States Department of Defense. The NDAA for Fiscal Year 2021 includes the expansive Anti-Money Laundering Act of 2020 (AMLA) with the purpose of updating and amending the country’s anti-money laundering laws. It has long been acknowledged that the United States lags behind other developed countries in its safeguards designed to prevent the flow of illicit money—so much so that the Tax Justice Network, an independent institution that indexes countries’ financial secrecy, currently ranks the United States as the second most financially secretive jurisdiction, ranking behind only the Cayman Islands and just ahead of Switzerland1. Together with the AMLA, Congress also enacted the Corporate Transparency Act (CTA), which directs the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) to establish and maintain a national registry of beneficial owners of entities that are deemed “reporting companies.”2 In so acting, Congress stated that bad actors seek to conceal their ownership of business entities through the use of shell companies in order to facilitate illicit activities including money laundering, the financing of terrorism,...

Cafeteria Plan Provisions of the Consolidated Appropriations Act, 2021

by Steven H. Sholk

Posted in Corporations

On January 4, 2021

The Consolidated Appropriations Act, 2021 (the “CAA”) provides employers with the ability to adopt optional relief provisions for participants in cafeteria plans with healthcare and dependent care flexible spending accounts (“FSAs”). These provisions are aimed at preventing forfeiture of unused account balances at the end of the 2020 and 2021 plan years. The unused amounts have often arisen due to the COVID-19 pandemic triggering extended medical provider, school, and daycare closures, and remote work arrangements. Grace Period Extensions and Unlimited Carryover Amounts The CAA provides employers with two options for the use of leftover FSA amounts. First, an employer can extend the grace period to use these amounts in the following plan year from two months and fifteen days to twelve months after the end of the plan year. Accordingly, unused FSA amounts as of the end of the 2020 plan year may be used for qualifying medical and dependent care expenses through the end of the 2021 plan year, and unused FSA amounts as of the end of the 2021 plan year can be used for qualifying medical and dependent care expenses through the end of the 2022 plan year. It is important to note that participants cannot contribute to health savings accounts while healthcare FSA funds are available during a grace period. Thus,...