NYS CONSTRUCTION INDUSTRY COUNCIL MEETING MINUTES - JANUARY 18, 2005
ATTENDANCE
Jeff Cintula, LeChase Construction Services
Jerry Cunningham, Building Contractors
Association
Nick DuBray, The Business Council of NYS
Jeff Elmer, GCA
Jack Endryck, BIE of NYS
Diana Georgia, Coppola Ryan McHugh Riddel
Earl Hall, Syracuse Builders Exchange
Belinda Heckler, The Vandervort Group,
LLC
Todd Helfrich, Builders Exchange of Rochester
Aaron Hilger, Builders Exchange
of Rochester
Joe Hogan, GBC of NYS
Jean Kase, RBA & Builder Partners
Kerry Kirwan, The Business Council of
NYS
Robert LaBombard, Lovell Safety Management
Barry Lovell, Lovell Safety Management
Christopher Lindsay, Eastern Contractors
Association
Victor Macri, Jr., VMJR Companies
Rebecca Meinking, ABC
Mike Misenhimer, Empire State Subcontractors Association
John Nerney, ABC
Barbara Rodriguez, AIA New York State
Thomas Walsh, Jackson Lewis (ABC)
Jeff Zogg, GBC of NYS
Meeting Minutes
Welcome and Introductions
Aaron Hilger, Builders Exchange of Rochester and Chairman of the New York
State Construction Industry Council, opened the meeting.
Alternative Dispute Resolution
A brief discussion was had on the renewal of ADR. Although it was written
to apply to many industries, it has only been applied in construction. It has
been effective thus far and more information will be available as soon as the
bill is re-filed this year.
Payroll Limitation Law
A discussion was had on the sunset of the Payroll Limitation law on 12/31/05.
The committee members expressed that the experience with payroll limitation
has been mixed. The committee was asked to review this issue and provide feedback
during the next meeting as to whether or not it's worth renewal.
Worker's Compensation Update
Kerry Kirwan, legislative analyst for the workers'
compensation committee, provided an update on the
proposed rate increase. Ms. Kirwan reported that
the Department of Insurance had held a hearing on
January 7, 2005 to discuss the 9.5 percent increase
which was proposed last year. Ms. Kirwan noted this
was the second proposed rate increase as the Department
had rejected an earlier proposal of 29 percent. No
decision has been made on the 9.5 percent increase.
Procurement Bills Affecting the Construction Industry
Jeff Zogg of General Building Contractors of New York State lead the discussion
concerning 5 bills. The bills included: A.3730;
A.8264; A.9010; A.9786; and S.7628. The committee is urged to review and monitor these bills before the
next meeting. It will be on the agenda at the request of Christopher Lindsay
of Eastern Contractors Association, Inc.
Guest Speaker - - Assemblyman Joe Morelle
Assemblyman Joe Morelle discussed Labor Law 240/241 and how NYSCIC continued
to create awareness on the issue last year. However, problems did occur with
the Senate withdrawing the bill and the resignation of a sponsor in the Assembly.
He also expressed his disappointment that the issue was not mentioned in the
Governor's State of the State address this year.
Assemblyman Morelle's main focus for the meeting was to discuss the recent
NYS Court of Appeals decision in Cahill v. The Triborough Bridge and Tunnel
Authority. This decision provides greater clarity to describing a recalcitrant
worker in the construction industry. However, this definition is still not
broad enough. He describe the benefits the Cahill case could have on our position
for reform but noted because of its narrow fact pattern, the response to the
decision will be minimal. The decision doesn't help bring insurance rates down
and doesn't help or create a fairer playing field in New York. This is because
when the next case is heard, if the employer is slightly culpable, they still
bear the burden and are fully responsible.
The Assemblyman adamantly urged the committee to continue support of last
years position for reform. He cited that originally, the goal was for repeal
of 240/241, but there is a growing consensus that repeal is not feasible and
it should be broken down into reform. Although reform may not necessarily be
the solution, it is the right start to create the fairness we are after. Last
year, the committee supported A.7213 (Morelle) and S.1710 (Volker). They have
yet to be re-filed for the 2005 session. The committee agreed that the next
step should be to clarify and tweak the bill language in order to use the Cahill
decision in our favor.
Labor Law Reform Discussion
Jack Endryck stated the association he represents, The Building Industry Employers
of New York State (BIE), recently voted to change its position on Labor Law
Reform and the support of S.1710/A.7213 to one of urging complete repeal of
Sections 240/241 of the State Labor Law. The position change was a result of
BIE's Board of Directors feelings that the reform bills do not do enough to
protect the rights of employers. Mr. Endryck asked NYSCIC to reconsider its
position and support complete repeal.
Following discussion, it was agreed that NYSCIC would continue its support
of S.1710/A.7213 with changes that would reflect the two recent NYS Appellate
Court discussions that came down in 2004 favoring employers rights under 240/241.
Jeff Zogg of the General Building Contractors of New York State stated he would
work, with NYSCIC input, to see if the language could be changed in the two
bills to reflect these decisions.
When asked by several in attendance if BIE would change its position if it
came to the "11th hour" on these two bills, Mr. Endryck stated his
association was very aware of the political realities in Albany and his association
would not stand in the way of an agreement if such an agreement provided no
less than what the current bills call for. Mr. Endryck also offered that BIE's
position change may even help to speed up the process.
Additional Activities of NYSCIC
The committee has suggested collecting data as to the general state of the
construction industry to support our cause. Suggested material to review include
both the Comp Watch data collected by TBC last year and the Traveler's Insurance
Data that illustrated savings if 240/241 were repealed. The Business Council
will begin to collect and organize this data to create a survey to look into
a variety of issues such as: the construction costs in NY compared to other
states; liability issues; and workers' compensation issues.
The committee also discussed the idea of holding regional NYSCIC meetings.
Members are encouraged to provide feedback on this idea for various locations.
Next Meeting
NYSCIC will hold its next meeting on March 8, 2005 from 3:00 pm to 5:00 pm
at the Business Council offices in Albany.
The Task Force on the Annualization of Prevailing Wage will also meet on March
8 from 1:00 to 2:45 at the same location. Anyone interested
in participating in this task force or in receiving additional information,
should contact Rebecca Meinking at the Empire State Chapter of Associated Builders
and Contractors, Inc. Ms. Meinking may be reached by phone at (315) 463-7539
or by e-mail at meinking@abcnys.org.
Adjournment
The meeting was adjourned at 5:00 pm. Members were reminded
that The Business Council's Annual Legislators' Reception would start at
6:00 pm at the Crowne Plaza in downtown Albany.
