State Budget / End of Session Update July 9, 2010

Construction | Contract Procurement | Corporate Contributions | Economic Development | Energy / Utility | Environment | Financial Services | Health Care / Health Insurance | Labor | Legal Reform | Tax / Revenues | Telecommunications | Transportation | Unemployment Insurance | Workers' Compensation

Construction

  • New York State Construction Industry Fair Play Act
    This bill (A.8237/S.5847) creates a presumption that all workers at a construction site are employees rather than independent contractors.
    Status: This legislation has passed both houses of the legislature. Business Council opposed.
  • Scaffold Law Reform
    A.1895 would establish a comparative negligence standard to be used for actions brought under Labor Law Section 240/241.
    Status: Assembly Judiciary Committee. Business Council supported.

Contract Procurement   

  • Procurement Lobbying Law
    The procurement lobbying law was extended through July 31, 2014 with modifications made to the statute requiring clarity on when the restricted contact period commences and types of communication permitted within the restricted contact period (S.6924/A.9949).
    Status: Chapter 4 of the Laws of 2010. Business Council supported.
  • MWBE contracting requirements
    The Governor proposed several bills to expand minority and women owned businesses state contract procurement opportunities, including: increasing the threshold for purchasing from small businesses and MWBEs without competitive bidding (S.8312/A.11525); generally expand contracting opportunities for MWBEs (S.8313/A.11526); and establish statewide goals for contracting with certified MWBEs (S.8314/A.11527).
    Update: Chapters 173, 174 and 175 of the Laws of 2010. Business Council took no formal position on these bills; we have concerns with S.8314.
  • Agency Contracts
    Legislation (S.7011/A.9934) would impose more rigorous standards on state agencies before entering into service contracts with consultants, including an analysis to validate that the work could not be done more cost efficiently by public employees.
    Status: Passed Assembly; legislation is on Senate calendar. Business Council opposed.
  • Contractor Fees
    As part of the state budget, legislation was passed to repeal the fee that contractors were to collect on sales from centralized contracts administered by OGS, with an immediate effective date.
    Status: Chapter 56, Part Q. Business Council supported.

Corporate Contributions

  • Omnibus Campaign Finance / Ethics Reform Bill
    This legislation (S.8405/A.11588) would require shareholder approval for political contributions, issue advocacy, and independent expenditures for all incorporated businesses. The approval would have to be obtained PRIOR to the expenditures, and a reporting requirement to both the shareholders and the Department of State would be established.
    Status: The bill advanced to the Assembly calendar and is in the Senate Rules committee. Business Council opposed.

Economic Development

  • Excelsior Program
    An amended version of the Governor’s proposed Excelsior Program, which replace the expiring Empire Zones program (S.6609-B/A.9709-C) provides tax credits for capital investment, new jobs, R&D spending and real property taxes for businesses in targeted sector, limited to no more than $50 million in new credits per year for the next five years.
    Status: Chapter 59, Part MM of the Laws of 2010. Business Council opposed.
  • Empire Zones/Technical Amendments
    Addresses unintended impacts of last year’s “reform” package, including continuance of tax credits, such as the EZ investment tax credit, that are dependent on specific zones. Also makes decertifications under last year’s amendments effective for 2008 tax year.
    Status: Included in the legislative revenue bill, S.6610-C/A.9710-D, Part R. Business Council supported.
  • Power for Jobs
    The Administration and Senate have agreed to legislation (S.8065), which The Business Council supports, that would create a permanent, power allocation-based replacement program for PfJ. The Assembly has passed an alternative plan (A.11172), which the Council opposes. The program expired June 2, 2010.
    Status: Both houses passed a one year extender thru 5/15/2011 (see A.11523), which was delivered to the Governor on August 4.
  • “Smart Growth”
    This legislation (S.5560-B/A.8011-A) would put restrictions on a wide range of state economic development initiatives, under the guise of “smart growth,” and applies to approvals and funding decisions by thirteen specified state and multistate agencies – including ESDC, UDC, DEC and DOT – and “all other New York authorities.”
    Status: Passed both houses. Business Council opposed.
  • IDA Prevailing Wage
    This legislation (S.1241/A.3659) would require prevailing wage and living wage mandates for IDA-assisted projects, adopt multiple administrative and process reforms for IDAs, and re-establish IDA authority to finance non-profit facilities.
    Status: Senate and Assembly Local Government Committee.

Energy / Utility

  • Prevailing wage for energy utility service workers
    This legislation (S.8379-A/ A.10257-D) extends existing labor law provisions that imposing prevailing wages on the public sector to cover private sector employees doing contracted service work for energy utility companies. For the first time, it would apply prevailing wage requirements to private sector companies with no element of public works or public funding.
    Status: passed both houses. Business Council opposed.
  • Solar RECs
    S.7093-B/A.11004-A imposes a minimum amount of output of solar projects that must be purchased by electric utilities thru 2039; this bill has an estimated $30 billion price tag over the life of the program.
    Status: Senate Energy Committee/Assembly Ways & Means Committee. Business council opposed.
  • Utility Call Centers
    S.4208-B/A.7593-B would require gas and electric corporations providing utility service maintain call centers for certain specific types of customer inquiries, and would further require a notice and hearing before the Public Service Commission prior to closing or relocating an existing call center. Similar legislation has been vetoed in prior year.
    Status: Passed both houses. Business Council opposed.
  • Streetcutter Prevailing Wage
    S.7643/A.404-B would require that utility companies use “competent workers” and pay the prevailing wage on projects where a permit to use or open a street is issued, without providing a definition of competent worker. It would further impose new requirements on municipalities in certifying the workers and place additional costs on energy.
    Status: Senate Labor Committee; Passed Assembly. Business Council opposed.
  • Power Plant Siting
    S.8394/A.11582 would create a new state process for approving electric power generating facilities of 20MW or greater; would require substantial intervenor funding; fails to provide a fixed 12 month review process; and imposes new, more stringent air emission standards.
    Status: Senate Rules Committee, Assembly Energy Committee. Business Council opposed.

Environment

  • Citizen Suits
    Legislation would authorize citizen suits for enforcement of most major provisions of the state Environmental Conservation Law. The Senate amended its bill (S.1730-B) to limit standing to persons suffering “injury in fact;” Assembly has passed legislation (A.4272) with broader standing.
    Status: Senate Rules Committee, Assembly bill passed Assembly. Business Council opposed.
  • SEQRA Citizen Suits
    Llegislation would authorize citizen enforcement of the state’s environmental quality review act (S.1635/A.9480).
    Status: Passed Assembly; voted down on Senate floor. Business Council opposed.
  • E-Waste Recycling
    S.7988/A.11308 imposes that manufacturer of certain electronic equipment develop and maintain e-waste recycling programs for their products and for a share of “orphan” products.
    Status: Chapter 99 of the Laws of 2010. Business Council supported.
  • Green House Gas Limits
    Senate made limited amendments to their bill (S.4315-C/A.11507-B); Early Assembly version has already passed (A.7572). Administration supports their existing Executive Order on climate change council over a statutory program.
    Status: This legislation has not moved in either house. Business Council opposed.
  • Toxic Chemical Bans
    Legislation (S.7070-D/A.10089-B) would allow the state to ban use of "chemicals of high concern" in consumer products. Status: This legislation has not moved in either house. Business Council opposed.
  • Bisphenol-A Ban (BPA)
    Legislation (S.3296-H/A.6919-D) would ban manufacture and distribution of child pacifiers and beverage containers containing BPA.
    Status: Chapter 280 of the Laws of 2010. Business Council opposed.
  • Marcellus Shale Drilling Moratorium
    Bill (S.8129-B/A.11443-B) delays all permitting of hydraulic fracturing in New York until May 15, 2011.
    Status: this legislation has not moved in either house.
  • Brownfields
    Sites accepted into the brownfield cleanup program prior to June 23, 2008 but did not receive a certificate of completion by February 9, 2010 would be subject to tax credits cap on tangible property enacted in June 2008.
    Status: Not included in the legislative revenue bill, S.6610-C/A.9710-D. Business Council opposed.
  • Radioactive Waste Siting
    Legislation (S.1432/A.5176) prohibits radioactive or hazardous waste disposal or transfer stations from being sited within one thousand five hundred feet of school property.
    Status: Passed both houses. Business Council opposed.
  • Water Withdrawal
    New regulation of the use of the state's water resources (S.8280-A and A.11436-A). Senate bill was amended to the satisfaction of much of affected industry.
    Status: Passed Senate; did not pass Assembly. Business Council did not oppose the final version of this bill.
  • Petroleum Sulfur Reduction
    Legislation (S.1145-C/A.8642-A) requires a reduction in sulfur emissions for all heating oil used in non-attainment areas.
    Status: Chapter 203 of the Laws of 2010. Business Council opposed.

Financial Services

  • Martin Act
    Legislation would allow the state retirement fund and other institutional investors to sue under the very broad provisions of the Martin Act (S.5768/A.8646).
    Status: This legislation is on the Senate calendar; has not moved in the Assembly. Business Council opposed.
  • Corporate Owned Life Insurance
    This bill (S.6236/A.9439) would impose a fifty-percent franchise tax on business-owned life insurance benefits.
    Status: No further action on this legislation. Business Council opposed.
  • Employer Choice Group and Blanket Disability Policies
    Provides employers the choice of selecting certain types of group and blanket disability policies (S.4770/A.8543).
    Status: No further action on this legislation. Business Council supports.
  • CPA Mobility
    This (S.6307/A.9432) allows accountants licensed in other states to have practice privileges in New York State. A version of the bill passed the Senate, the other version is in the Assembly Higher Education Committee.
    Status: S.6307-B passed the Senate; no action on this legislation in the Assembly. Business Council supported.
  • Credit Unions
    Establishes the savings bank, savings and loan association or credit union municipal deposit program. (S.717/A.4319).
    Status: This legislation was held in Assembly Ways & Means Committee; no action in Senate. Business Council opposed.
  • Consumer credit actions
    This legislation (S.4398-A/A.7558-A) would reduce the statute of limitations on consumer credit actions from six years to three years; bar debt collectors from collecting debts upon the expiration of the three year statute of limitations; impose costly legal procedures on businesses; and permit court clerks to review applications for default judgments.
    Status: This legislation has passed the Assembly; and is in Senate Finance Committee. Business Council opposed.
  • Abolishing New York Board of Fire Underwriters
    Legislation passed by both Houses would abolish the New York Board of Fire Underwriters (NYBFU) along with its assessment power. The operations of the NYBFU in recent years were not cost effective and did not provide the insurance industry with economic benefits that justified continued operation. The Business Council supported (S.6954C/A.9504B) because the original purpose of the NYBFU was no longer relevant and therefore should be abolished.
    Status: The bill awaits delivery to the Governor. Business Council supported.
  • Fostering Expansion of Commercial Insurance
    Legislation (S.7220A-Breslin/A.10636A–Morelle) would modernize the regulation of commercial insurance. The bill would allow for more businesses to take advantage of New York's insurance free trade zone.
    Status: The bill passed the Senate and is in the Assembly Insurance Committee. Business Council supported.

Health Care / Health Insurance

  • Prior Approval for Insurance Rates in the Small Group Market
    While the Governor proposed language as part of his executive budget, the Legislature passed separate legislation setting a medical loss ratio at 82, and requiring plans to get approval from the Insurance Department for rate setting both in the active plan year, and for plans moving forward.
    Status: S.8088/A.11369, gapproved as Chapter 107, Laws of 2010. Business Council opposed.
  • Autism Coverage Mandate
    Both houses have passed legislation which would require all plans to provide for coverage of autism spectrum disorders. The coverage mandate language includes language which speaks to services which are evidence-based, but lacks age limitations for certain therapies and maximum medical improvement limitations for habilitative care.
    Status: S.7000-B/A.10372-A; passed both houses. Business Council opposed.
  • Prohibition on Specialty Tiers Within Drug Plans
    Both houses have passed legislation which prohibits commercial health insurers from creating specialty tiers within drug plans, tiers which often have higher cost-sharing, deductibles, or co-insurance obligations beyond the deductibles within that plan for non-preferred drugs.
    Status: S.5000-B/A.8278-B passed both houses. Business Council opposed.
  • Elimination of Timothy’s Law Subsidy
    The State subsidy to offset the increased premiums on small business health plans resulting from the mental health parity coverage mandate was eliminated as part of budget bills adopted by the Legislature. While the Governor had proposed reducing the subsidy, the appropriation eliminates the subsidy in its entirety.
    Status: Chapter 55, Laws of 2010; page 277. Business Council opposed.
  • HCRA Surcharge Increase; Expansion of HCRA Surcharge to Outpatient, Radiological Services
    As part of initial Executive Budget proposal, an increase in the HCRA surcharge from 0.35% to 0.75% was proposed; additionally, the Executive Budget proposed to expand the surcharge beyond inpatient hospital settings to physician's offices, urgent care settings, and radiological services.
    Status: Not included in budget bills adopted by the Legislature. Business Council opposed.

Labor

  • Abusive workplace
    Legislation (S.1823-B/A.5414-B) to allow employee suits for a wide range of “abusive” workplace behavior, which as passed the Senate, has been held in Assembly Labor Committee.
    Status: No further action on this legislation. Business Council opposed.
  • Paid Family Leave
    This bill (S.5791/A8742) expands the disability benefit program to cover a range of family care activities.
    Status: These bills remain in committee. Business Council opposed.
  • Unemployment Insurance. See UI section.
  • Electronic employee monitoring
    This bill (S.4755-A/A.3871-B) would impose new workplace postings for, and acknowledgement from, new employees explaining workplace electronic monitoring.
    Status: This bill passed the Assembly; is currently on the Senate calendar. Business Council opposed.
  • Transportation benefit plan
    Legislation (S.1858/A.10048) would mandate all employers of 50 or more establish a pre-tax payroll deduction program for commuting and parking expenses.
    Status: Passed the Assembly; is on the Senate calendar. Business Council opposed.
  • Expansion of labor law standards for farm workers
    These bills (S.8223/A.11569 and S.2247-B/A.1867-B) would amend the state labor law and require collective bargaining, overtime and disability for farm employees. The Business Council has consistently supported the New York State Farm Bureau in its opposition of these bills. S.2247 was defeated in the Senate Agricultural Committee in April while S.8223/A.11569 remain in the Rules and Labor committees.
    Status: S. 8223 was voted down on the Senate floor. S. 2247-B was defeated in Senate committee. Neither Assembly bill moved from committee. Business Council opposed.

Legal Reform

  • Medical Malpractice “Reform”
    The Legislature and Governor are considering a tax on property and casualty insurance policies to close the $480 million deficit in the MMIP insurance program. Although there is not yet a bill pending, The Business Council opposes.
    Status: This proposal has been introduced as S.8274 (Breslin)/A.11542 (Morelle)/Governor Program # 287, but has not moved in either house. Business Council opposed.
  • Deceptive and Unconscionable Acts and Practices
    This bill (S.7301/A.10306) would expand the consumer protection deceptive acts and practices section of the general business law.
    Status: No further action on this legislation. Business Council opposed.

Tax / Revenues

  • Business tax credit deferral
    Governor’s proposal (drafted but not introduced) to defer 50% of most business tax credits that otherwise would be used in 2010, 2011 and 2012 remains under discussion. This would apply to ITC, brownfield, Empire Zone, R&D and other business credits.
    Status: This proposal has been amended to exempt $2 million per taxpayer, then defer all credits over that threshold; and to include a more specific schedule for using credits after 2013. Included in the legislative revenue bill, S.6610-C/A.9710-D, Part Y, which has passed both houses. Business Council opposed.
  • Gramm-Leech-Bliley
    This bill (S.6944/A.10096) extends the transitional provisions in the NYS and New York City bank taxes relating to the federal Gramm-Leech-Bliley Act, which eliminated many of the prohibitions against the affiliation of banks, insurance companies, and securities firms for one year to taxable years beginning before January 1, 2011.
    Status: Chapter 24 of the Laws of 2010. Business Council supported.
  • Bank Tax extension
    S.7094-A/A.10238-A, extends the NYS and NY City bank taxes for one-year to taxable years beginning before January 1, 2011.
    Status: Chapter 67 of the Laws of 2010. Business Council supported.
  • Wine in Grocery Stores
    Legislation to allow for sale of wine in grocery stores (S.5787/A8632-A) is still under discussion as the state scrambles for additional resources to close budget gap.
    Status: Similar legislation was included in the Governor’s revenue/extender bill, but has not been included in the legislative revenue proposal that passed both houses. Business Council supported.
  • ESCO sales tax exemption
    Assembly’s proposal to eliminate the sales tax exemption for energy sales to ESCO’s (A.9710-B) remains under discussion. Potential impact of $150 million per year.
    Status: No further action on this proposal; it is not included the legislative revenue bill. Business Council opposed.
  • NYC Income Tax
    New proposal, included in legislative revenue bill, S.6610-C/A.9710-D, Part EE, creates a new tax rate of 3.4% for income over $500,000, and restructures lower income tax rates, for net increase of $120 million.
    Status: Passed both houses. Business Council opposed.

Telecommunications

  • Telephone Utility Mergers
    Legislation (S.7263-C/A.2208-D) would significantly impair ability of telephone businesses regulated by the PSC from merging unless they commit significant benefits to consumers.
    Status: Passed Assembly; did not pass Senate. Business Council opposed.

Transportation

  • Waste Transportation
    Legislation (S.7153/A.10176 and S.7591/A.10819) would mandate that putrescible waste (municipal solid waste) transported by rail be covered with sealing hard lids and non-putrescible (construction and demolition) waste be securely fastened with hard tarping. A second bill would require contracts by public authorities, such as the Metropolitan Transportation Authority, to mandate such hard lids and tarping.
    Status: The bills are on the Senate Calendar and Assembly Rules Committee. Business Council opposed.

Unemployment Insurance

  • The Governor’s Program Bill on unemployment insurance reform was introduced on June 30th (S.8423/A.11607).
    Senator Onorato’s UI benefit increase bill (S.2245-B) remains on the Senate’s Third Reading Calendar. Both bills which would increase the maximum UI benefit, increase the taxable wage base, and index benefits. The Governor’s bill also eliminates the lowest tax rates, effectively shifting the burden to over one-third of New York’s most stable employers. The issue remains live.
    Status: Senate Bill remains on Third Reading on the Senate calendar. No action yet on Governor's Program Bill but negotiations continue.

Workers’ Compensation

  • Group Self-Insured Employers & Trusts
    The Governor proposed extending the authority of the Workers’ Compensation Board to borrow from the Uninsured Employers Fund for up to $75 million for purposes of making payments to claimants of defaulted trusts and to offset assessments on remaining self-insured trusts; clarifying the Board’s authority to enforce judgments of former members of an insolvent self-insured trust and to commence collection actions against them; and permitting the Board, self-insurers or group self-insurers to purchase “loss portfolio transfer” policies from a carrier authorized to provide workers’ compensation coverage.
    Status: Chapter 56 of the Laws of 2010, Part R. Business Council supported.
  • Higher Reimbursement for Spinal Fusion
    Legislation (S.7455-A/A.10311) permits higher reimbursement rates for physicians performing certain spinal procedures for workers’ compensation claimants than the new APR-DRG methodology calls for passed both houses.
    Status: Veto Message 6795. Business Council opposed.
  • Shutdown of Self Insured Group Trusts
    The Governor proposed Program bill #303 that implements recommendations of his Self Insurance Task Force, including a shutdown of remaining self-insured groups by December 31, 2010, elimination of non-self-insurance-related assessments on inactive groups, and a limited opportunity for fully-funded groups to continue to operate under self-insured group coverage.
    Status: The program bill has yet to be introduced in either house. Legislation eliminating assessments for inactive groups has been introduced in the Assembly (A.11613). Business Council is reviewing.