Greater Millville Chamber of Commerce

Government Affairs Committee

Legislative & Policy Newsletter

①  Top Legislative & Regulatory Updates

⚠ URGENT – NOW IN EFFECT

NJ ABC Test for Independent Contractors – Operative October 1, 2026

New Jersey’s updated ABC Test regulations (N.J.A.C. 12:11), finalized by the Department of Labor and Workforce Development, became operative on October 1, 2026. These rules tighten the standards for classifying workers as independent contractors versus employees across most industries.

Under the revised ABC Test, a worker is presumed an employee unless all three prongs are satisfied: (A) the worker is free from direction and control; (B) the work is performed outside the usual course of the business or outside all places of business; and (C) the worker is customarily engaged in an independently established trade or business.

Action Required: Employers with contract or gig workers should audit their worker classifications immediately. Misclassification can result in back wages, unemployment contributions, and civil penalties. Contact the GMCC or your employment attorney for a compliance review checklist.

● WATCH – FEDERAL

Congress Passes Continuing Resolution – Government Funded Through December 11, 2026

Congress passed a Continuing Resolution (CR) in late September 2026, funding federal operations at current levels through December 11, 2026 and averting a government shutdown. The CR maintains funding for federal programs including SBA loans, USDA rural development grants, and HUD community development programs that directly impact Cumberland County businesses and municipalities.

Full-year appropriations negotiations continue. Programs dependent on federal funding should plan for potential disruption or delay in early 2027 if a budget deal is not reached before the December deadline.

● WATCH – FEDERAL

Federal Reserve Raises Rates to 3.75%–4.00% – September 16, 2026

The Federal Open Market Committee (FOMC) voted on September 16, 2026 to increase the federal funds rate by 25 basis points to a target range of 3.75%–4.00%. This affects borrowing costs for small businesses, commercial real estate financing, and variable-rate loans. Local businesses considering capital improvements or real estate acquisitions should consult their lenders and explore fixed-rate SBA loan options through programs like the SBA 504 program to lock in long-term rates.

● ADVANCING – STATE

NJ Noncompete Agreement Ban – S4385/A5708 Moving Toward Senate Floor Vote

New Jersey’s proposed ban on noncompete agreements (S4385/A5708) continues to advance in the Legislature. The bill would prohibit employers from entering into or enforcing noncompete agreements with employees and independent contractors, with narrow exceptions for sale-of-business scenarios.

What to Watch: A Senate floor vote is anticipated in the fall 2026 session. Employers with noncompete clauses in existing employment contracts or offer letters should work with legal counsel now to assess exposure and alternative protections such as non-solicitation and confidentiality agreements.

● WATCH – STATE

NJ Height & Weight Discrimination Bill – A4563/S1631 in Committee

Legislation that would add height and weight as protected characteristics under the New Jersey Law Against Discrimination (NJLAD) continues to advance through committee review. A4563/S1631 would prohibit employers, landlords, and places of public accommodation from discriminating based on a person’s height or weight. HR professionals should begin reviewing hiring and promotional criteria and policies to ensure compliance if the bill is signed into law.

● IN EFFECT – REMINDER

NJ Family Leave Act Expansion – Now Covers Employers with 15+ Employees

A reminder that the NJFLA expansion, effective July 17, 2026, lowered the covered employer threshold from 30 to 15 employees. Smaller employers now subject to NJFLA must provide up to 12 weeks of unpaid, job-protected family leave per year. Review your leave policies and ensure supervisors and HR staff are trained on NJFLA requirements, intermittent leave procedures, and the interplay with FMLA and NJ TDI/FLI.

● LOCAL EVENT RECAP

Legislative Breakfast – September 30, 2026 | The Grove at Centeron

The Greater Millville Chamber of Commerce joined the Bridgeton Regional Chamber and the Greater Vineland Chamber of Commerce to co-host the tri-chamber Legislative Breakfast on September 30, 2026 at The Grove at Centeron. The event brought together business leaders, nonprofit executives, municipal officials, and community stakeholders from across Cumberland County for a morning of direct legislative dialogue.

Senator Michael Testa (R-1st District) headlined the event, joined by members of the First District legislative delegation including assemblymen and assemblywoman. Legislators addressed a range of issues of importance to the tri-city business community, including state funding priorities, economic development incentives, workforce development, and the regulatory environment for small businesses.

Key themes from the discussion included:

The breakfast was well attended and reflected the strong collaborative spirit of the three chambers in amplifying the voices of Cumberland County’s business community in Trenton. Look for follow-up engagement opportunities with your legislators — contact info in Section 6.

②  Local & Regional News

● MILLVILLE – MUNICIPAL

Millville City Commission Approves 2026 Budget: 8.4% Tax Levy Increase

The Millville City Commission voted 4-1 on June 16, 2026, to adopt the city’s $42.16 million 2026 municipal budget, which includes an 8.4% increase in the municipal tax levy — translating to 12 cents per $100 of assessed value. For a home assessed at the city’s average of $176,000, the municipal portion of the property tax bill will increase approximately $211 annually. Combined with county and school tax increases, average total property tax bills are expected to rise approximately $450 per year, or about $112 per quarter.

The largest single driver of the increase was health insurance costs, which jumped 37.11% or $1.8 million for 2026, even after the city’s prior-year switch from the state health plan to private insurance. The state plan saw even steeper increases of nearly 50%, according to CFO Trisha McGahhey. Salaries for the city’s 213 municipal employees (including 85 police officers) total $17.26 million, up $1.58 million from 2025, partly driven by an extra pay period in 2026.

The budget draws $7 million from surplus funds (17% of total spending), reflecting a long-term structural deficit that Mayor Dan Dixon and Vice Mayor Richard Kott have publicly acknowledged. Mayor Dixon has described the city as spending more than it brings in through recurring revenue and noted that federal COVID relief funds that previously bridged the gap are no longer available.

Commissioner Marissa Ranello cast the sole dissenting vote, citing concerns about unresolved costs associated with the Nabb Avenue connector project (see Section 5). Mayor Dixon noted that any connector work would occur in 2027 or later and that the city is pursuing a $15 million NJDOT grant for the project. The path forward, according to city leadership, includes smart growth, aggressive grant-seeking, and reducing reliance on one-time funding sources.

● REGIONAL – CCIA / THE AUTHORITY

Cumberland County Improvement Authority (The Authority) – Fall 2026 Update

The Cumberland County Improvement Authority (CCIA)—known locally as The Authority—continues to serve as a key financing and project management vehicle for Cumberland County municipalities and the business community. The Authority provides financing solutions for public and private development projects, manages county solid waste and recycling programs, and administers economic development initiatives.

Key services available to local businesses and municipalities include:

Businesses and municipal officials with questions about Authority programs should contact The Authority at 745 Lebanon Road, Millville | (856) 825-3700 | theauthoritynj.com.

● MILLVILLE – ZONING / TECHNOLOGY

Federal AI Data Center Framework: Context for Millville’s Data Center Ordinance

The federal government signed legislation (SB 3379) on August 27, 2026 establishing national guardrails for AI data center development, addressing power consumption, water usage, and environmental impact standards. This federal framework is relevant context for Millville’s ongoing consideration of local data center zoning ordinances. Municipalities looking to attract or regulate data center development should consult both the federal standards and New Jersey’s emerging guidelines when crafting local zoning provisions.

③  Incentives, Grants & Programs

● LOCAL – CEZC

Cumberland Empowerment Zone Corporation (CEZC): Loan Programs Open for Millville Businesses

The Cumberland Empowerment Zone Corporation (CEZC) continues to offer two active loan programs to support small and mid-sized businesses within the Millville-area Empowerment Zone.

Contact CEZC: 2115 S. Delsea Drive, Millville | (856) 301-4607 | cezcorp.org. CEZC also serves as an NJEDA Main Street Lenders program partner, connecting local businesses to state-level financing resources.

● LOCAL – HOLLY CITY DEVELOPMENT CORP.

Holly City Development Corporation (HCDC): NRTC Grants & CDBG Programs

Holly City Development Corporation (HCDC) is Millville’s nonprofit community development organization, providing resources for housing, business development, and neighborhood revitalization. HCDC serves as a key connector to federal and state funding for Millville residents and businesses.

Current programs and resources available through HCDC include:

Contact HCDC: 14 E. Mulberry Street, Millville | (856) 776-7979 | info@hollycitydevelopment.org. Executive Director: Heather Santoro.

● STATE – NJEDA

NJEDA Fall 2026: Key Programs Available to Cumberland County Businesses

The New Jersey Economic Development Authority (NJEDA) has a range of programs currently active or open for applications. Highlights relevant to Greater Millville businesses:

NJEDA Contact: 844-965-1125 | smallbusinessservices@njeda.gov | njeda.gov

④  Compliance & Risk Watch

⚠ ACTION REQUIRED

ABC Test Worker Classification: 5-Step Compliance Checklist

With the NJ ABC Test regulations now operative as of October 1, 2026, here is a practical starting checklist for employers:

⚠ DEADLINE – APRIL 15, 2027

NJ Employer Medicaid Assessment – Applies to Employers with 50+ Employees

New Jersey’s Employer Medicaid Assessment requires certain large employers (50 or more employees) whose workers utilize NJ Medicaid/FamilyCare to pay an annual assessment. The 2026 assessment reporting deadline is April 15, 2027.

Employers at or near the 50-employee threshold should review their workforce counts and consult with their benefits broker or accountant to determine whether they are subject to the assessment, how to calculate it, and whether any exemptions apply. Do not wait until spring — data gathering and analysis should begin now.

● WATCH – FINANCIAL

Rising Interest Rate Environment: What Businesses Should Do Now

With the federal funds rate now at 3.75%–4.00%, businesses with variable-rate lines of credit, balloon loans, or upcoming refinancing needs are facing significantly higher borrowing costs than just two years ago. Recommended steps: review all existing credit facilities for variable-rate exposure; explore locking in fixed rates on long-term assets through SBA 504 or SBA 7(a) programs; assess working capital needs before any anticipated seasonal slowdowns; and meet with your banker or SBA preferred lender before year-end to review financing strategy.

⑤  Economic Development in Motion

● MILLVILLE – DEVELOPMENT

Millville Warehouse Pipeline & Nabb Avenue Connector Project Update

Millville has approved plans for up to 3.5 million square feet of warehouse and logistics space across the Airport Industrial Park and the Buckshutem Road corridor. The scale of development represents a transformative economic opportunity for job creation and tax base expansion in the city.

Critically linked to this growth is the long-planned Nabb Avenue connector, which would create a more direct route from the Airport Industrial Park to Route 55, alleviating projected truck traffic along Silver Run Road and Main Street. The city is pursuing a $15 million NJDOT grant for the project; any actual construction is anticipated to begin in 2027 at the earliest. Developers submitted a time extension request in March 2026 for first-phase plans.

Mayor Dixon noted that the city’s economic development coordinator, Joe Calchi, has been actively meeting with a number of developers and that several projects are in the pipeline. Business Administrator Roy Bitterman III, hired in January 2026 at a salary of $210,000, is focused on streamlining city operations and improving efficiency—changes city leadership expects will yield financial benefits over time.

● PERSPECTIVE – STRUCTURAL DEFICIT & GROWTH

Addressing Millville’s Structural Deficit: The Revenue Equation

Mayor Dixon and Vice Mayor Kott have been candid about the city’s long-term fiscal challenge. In a recent local television interview, Kott summarized the revenue equation plainly: “Your revenues have to increase if you want your expenses to increase. It’s as simple as that. Either taxes or economic development. Something has to drive up that revenue. If you don’t want one, we have to rely heavily on the other.”

For the business community, this framing makes the case clearly: smart commercial and industrial development is not just an economic good — it is the sustainable alternative to ever-increasing property tax burdens. The GMCC Government Affairs Committee will continue to monitor budget and development policy and engage with city leadership on policies that support a business-friendly growth environment.

⑥  Dates & How to Engage

Key Dates & Deadlines – October / November 2026

Key Contacts & Resources

●  Member Resource Links

NJ Legislature — Key Pages

NJ State Budget Documents