Assembly Appropriations Committee hears testimony from newspaper industry Chris Pedota/NorthJersey.com)

Nicholas Pugliese reports for The Record



Undeterred by a combined
2½ hours of unanimous testimony against a bill that would allow governments to
forgo publishing legal notices in newspapers and instead post them exclusively
online, committees in both the Senate and Assembly voted to advance the measure
on Thursday.
Publishers,
union representatives, environmental activists, residents and others lined up
to rail against a bill that they said could result in the loss of as many as
300 jobs, force some publications to shut down and hand governments a lever
with which to strong-arm local newspapers.
“It’s
been characterized as a thumb in the eye of the dailies,” said Stephen Parker,
co-publisher and general manager of New Jersey Hills Media Group, which
publishes newspapers in four counties. “It’s a shotgun blast to the weeklies.”
Lawmakers
in favor of the bill argued that it would be a money-saver for
municipalities and their taxpayers despite the fact that it was introduced and
voted on with such haste that the non-partisan Office of Legislative Services
has not had time to conduct a cost analysis.
Assemblyman
John Burzichelli, D-Gloucester, who voted in favor of the measure, also
questioned the usefulness of printed legal notices in an increasingly digitized
media environment and an era of declining print circulation.
“There
are some things that are simply inevitable and that is the electronic world is
not going away,” he said. “The serving of public notice is critical
to democracy, but we are not serving public notice if there’s no
circulation.”
The
Senate State Government, Wagering, Tourism and Historic Preservation Committee
was the first panel to vote on the measure Thursday morning. After 90 minutes
of critical testimony, they voted 2-1 to release it to the full Senate, albeit
without the customary recommendation that it be approved there.
Asked
after the hearing why he wouldn’t recommend a bill of which he is the primary
sponsor, Jim Whelan, D-Atlantic, responded, “I think the bill was important
enough that it should go to the full floor.”
The
Assembly Appropriations Committee then took up the measure in the afternoon
and, following roughly an hour of unfavorable testimony, approved it 7-0 with
two abstentions.
Representatives
of the New Jersey Bankers, New Jersey Association of Counties, New Jersey
League of Municipalities, New Jersey School Boards Association and New Jersey
Conference of Mayors submitted forms Thursday indicating that they were in
favor of the legislation but did not testify at either hearing.
The
bill was introduced on Monday as part of a package that included a measure to
allow Governor Christie to earn income from a book deal while in office in
exchange for raises for lawmakers’ staffs, judges, county prosecutors and other
officials. That bill, too, moved through Senate and Assembly committees on
Thursday.
The
legal notices measure would give governments the option to publish such public
records as budgets, bids for services and meeting announcements online as
opposed to in print. Under current law, governments and some private entities
are required to publish such notices in locally circulated newspapers. The
rates for legal notices are set by statute and have not risen since 1983.
Thomas
Cafferty, chief counsel for the New Jersey Press Association, testified
Thursday that the current arrangement is “designed to prevent municipalities
from using legal advertisements to either curry favor with a publication whose
writings might be favorable … or to punish newspapers whose writings may be
contrary to what the administration thinks the views of it should be.”
Allowing
local officials to choose where to publish legal notices — a provision of the
bill touted by supporters as creating flexibility for governments — would
actually arm them with the ability to hurt newspapers financially, he said.
Richard
Vezza, publisher of the Star-Ledger, called the measure “a bill of unintended
consequences” that could put as many as 300 people in the newspaper industry
out of work.
“The
road to hell is paved with good intentions,” he admonished lawmakers. “Do not
put 300 employees on the road to hell because you haven’t done your homework.”

Parker, the co-publisher of New Jersey Hills Media Group, said his company
operates with a profit margin of about 5 percent and would take a 15 percent
revenue hit without the income from legal notices.

“This
bill will be the straw that breaks the camel’s back,” he said. “It will
certainly result in big layoffs, dropped coverage in many of the communities
that we serve and very likely the closure of many of our newspapers.”

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