Government Affairs Council
Update
April
23, 2004
Outsourcing/Offshoring Legislation
Staff Contact: Ken
Pokalsky
Two previously announced outsourcing bills were introduced
this week, as the Senate ended its period for unlimited introduction
of bills. These include:
Pension Fund Investments - The most significant new
bill (S.6872/Lavalle) would prohibit investments by the state's
$100 billion common retirement fund in the "stocks, securities
or other obligations" of any company which outsources
jobs, and requires the fund to divest any such investments
" in a fiscally prudent manner." The bill was introduced
with three co-sponsors: Larkin, Marchi and Velella.
The bill defines outsourcing as "to seek resources outside
the United States to save more [sic] and/or to exploit the
skills of another entity." Since the meaning of this
legislative language is unclear at best, its difficult to
say exactly who would be affected by this proposal. However, the sponsor's memo provides a
more recognized definition of outsourcing (work done for a
company by another company or people other than the original
company's employees), and states that the legislative intent
is to prohibit investments in businesses that outsource jobs
overseas.
Obviously, this bill would have a major impact on the investment
options available to the Common Retirement Fund, and would
likely affect many Business Council members. For example,
one analysis shows that this bill would preclude the state
retirement fund from investing in at least 23 of the 30 stocks
tracked in the Dow Jones Industrial Average. We have requested
a meeting with the Senate sponsor, and also have asked the
State Comptroller for comments.
Senate Democrats "Omnibus" Bill - Legislation
first announced by Senate Democrats at a March 3 press conference
has finally been introduced (S.6935/Paterson). The bill
generally tracks the provisions of their earlier press release.
Key provisions include the following:
- defines "outsourcing jobs" as relocating employment,
jobs or positions from the state of New York or elsewhere
in the United States or its territories to an outside
locality. This broad definition of "outsourcing"
applies to each of the separate provisions discussed below.
- requires businesses that are "involved in the practice
of outsourcing jobs or services" to disclose such
outsourcing through both on-site postings and distribution
of written disclosures to consumers. The bill states that
this provision applies to, but is not limited to, health,
accounting, banking, mortgage and income tax preparation
services. No specifics are provided as to how such written
disclosures are to be provided.
- prohibits business from selling, sharing, transferring
or otherwise disclosing nonpublic personal information
to any non-affiliated third party located outside the
U.S. without prior written permission of the consumer
to whom the information relates.
- prohibits the state, local governments and public benefit
corporations from outsourcing jobs; prohibits these entities
from entering into contracts "for any purpose"
with an entity which engages in the practice of outsourcing
jobs. Requires all contracts to include prohibitions against
the outsourcing of jobs by the contractor; violations
would void the contract.
- prohibits "contractors" that receive development
assistance from the state from outsourcing jobs. Penalties
require a repayment of assistance received and a five
year ban on receipt of additional state assistance. Further
states that any "business" that receives development
assistance from the state must file annual reports with
the Attorney General regarding change in employment within
the state and other information.
- require companies planning to move in-state jobs overseas
to provide a 180 day notice to affected employees.
- prohibit employers from requiring employees to train
foreign replacements as a condition of receiving severance
pay.
- precludes the Governor from entering into multinational
government procurement agreements without approval from
the legislature (which refers to a side agreement stemming
from the Uruguay round of GATT negotiations concerning
government procurement policies. Thirty-seven U.S. states
have signed on, along with a limited number of nations.)
Offshoring Legislation Chart
Staff Contact: Ken
Pokalsky
The following chart illustrates the various offshoring/outsourcing
bills introduced in the NYS legislature to date, and includes
a brief summary, current status and Business Council position.
Offshoring
Table
Print-Friendly
PDF format
New York's Brownfield Cleanup Program
Staff Contact: Ken
Pokalsky
We were asked to forward this information to our members by
the NYS Department of Environmental Conservation. This provides
more complete information on the announcement included in
last week's GAC update.
You Are Invited to Public Meetings to
Learn About:
New York's Brownfield Cleanup Program
The New York State Department of Environmental Conservation
(DEC) will conduct public information meetings in cooperation
with the Department of Taxation and Finance (TAX) and Department
of Health (DOH) during May and June regarding the new Brownfield
Cleanup Program (BCP), created by the Superfund/Brownfield
Law adopted in 2003. See below for the schedule of the public
meetings.
Dates and locations for both public meetings are as follows:
May 12, 2004: Rochester
Monroe Community College, Brighton Campus, 1000 E. Henrietta
Road , Campus Center Monroe A&B
May 19, 2004: Albany
Empire State Plaza, Concourse Level, Meeting Room 2
June 8, 2004: NYC
The Graduate Center, CUNY, Recital Hall, 365 Fifth Avenue,
New York
A brief overview on how agencies are considering developing
soil cleanup objectives will be presented at 9:00 a.m. and
repeated at 10:15 a.m. Three topic-focused availability areas,
allowing participants to ask agency technical staff additional
questions and seek clarification will follow each presentation.
In the afternoon from 12:30 p.m.- 4:30 p.m., DEC will conduct
a public information meeting that focuses on all aspects of
the Brownfield Cleanup Program. Individuals may be interested
in the morning session on soil cleanup objectives, the afternoon
Brownfield Cleanup Program Informational meeting, or both.
Please check the DEC web site at: www.dec.state.ny.us/website/der/bfield/index.html#meet
for up-to-date information about these meetings.
Internet Access Tax Legislation
Pending
A bill which would allow state and local governments to impose
billions of dollars of taxes on Internet access is now pending
before the U.S. Senate. The bill, S.2084 (Alexander/Carper),
would allow states to tax the Internet "backbone"
– everything but the last mile to the consumer from the
Internet. Because the Internet Service Providers (ISPs) will
not be able to explicitly pass through the tax to consumers
when they purchase high speed transmission, the ISP will be
forced to absorb the tax or raise the price charged for Internet
access service.
Congress initially enacted the Internet Tax Freedom Act in
1998, and voted to extend it in 2001. This Act prohibited
states and localities from imposing taxes on Internet access.
Senator Schumer voted for this measure, Senator
Clinton voted against it. This moratorium expired
at the end of October, 2003.
In September, 2003, the Internet Tax Non-Discrimination Act
passed the House with broad bi-partisan support. This legislation
would reinstate the federal moratorium against Internet access
taxes, as well as "multiple and discriminatory"
taxes targeting Internet commerce, and make them permanent
and national in scope. The Act would ensure technological
neutrality, so that consumers would be protected by the federal
moratorium no matter what technology they use to access the
Internet. The Senate bill, S.150, has been referred to the
Senate with the bi-partisan approval of the Commerce and Finance
Committees.
We would urge you to contact Senators Clinton and Schumer
to urge them to vote against S.2084 and in favor of S.150.
They can be reached via email through the main Senate web
site at www.senate.gov.
They can also be reached by phone:
Senator Clinton (202)224-4451
Senator Schumer (202)224-0420.
Governor's Program Bill on Workers'
Compensation Introduced
The Governor has introduced his reform package on workers'
compensation. The bill (S.6841/A.10975) has been introduced
in both the Senate and the Assembly. The Senate version is
being sponsored by the Committee on Rules and in the Assembly
by the Committee on Rules at the request of Assemblywoman
John.
Assemblywoman John introduced this bill in
an effort to spur negotiations on this important issue. While
she is also carrying the AFL-CIO bill, Assemblywoman John
indicated in a meeting with The Business Council earlier this
week, that she would like to see something done on this issue
this session.
This bill provides a balanced approach by placing durational
limits on permanent partial disabilities while at the same
time raising the maximum benefits for injured claimants. The
bill is expected to save the business community over 15 percent
in workers' compensation costs.
Click here to view The
Business Council's side by side comparison of the three bills
currently in play
