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OUTSOURCING
2004 Priority Issue

Staff Contact: Ken Pokalsky
Issue:

Several bills have been introduced that would adversely impact businesses that utilize out-of-state or overseas business resources. These include: bans on state assistance and state assistance recapture requirements for businesses that move jobs out of state, S.6040/A.9567, TBC's memo in opposition; and prohibitions of state investment fund investments in businesses that engage in offshore outsourcing of bills, S.6872, TBC's memo in opposition. TBC has prepared a summary of all these proposals <click here for chart>.

Status:
8/12/04

S.6338/A.11613, which has passed both houses, has yet to be sent up for Gubernatorial review. There has been no further action on outsourcing legislation.

7/22/04 Senator Spano has amended S.6040 to be consistent with A.11682, the onerous outsourcing bill that passed the Assembly yesterday; conversations with Spano's office indicate that the Senator has no intention to move the bill "at this time." S.6040-C also includes two additional co-sponsors, Senators Maziarz and Larkin. The Business Council has expressed its strong opposition to S.6040-C to all four current Senate sponsors. (TBC's letter in opposition).

6/23/04 The Assembly has passed A.11682, the Brodsky bill imposing penalties on business that move jobs out of NYS; the Assembly also approved S.6338/A.11613, the DOL study bill. No further action on any outsourcing bills in the state Senate.

6/21/04 The Assembly has introduced a modified version of the original Brodsky "poison pill" bill. A.11682 would still require benefit recapture and impose a 5 year benefit ban of businesses that move jobs out of New York. In some instances, these penalties would only be imposed if there was a reduction in the business's net in job employment. Also, the scope of benefit programs is more limited, and the recapture provisions would apply back to the effective date of this law. The bill is currently on the Assembly calendar; there is no Senate companion. TBC's legislative memo

The Assembly has passed A.201 (Cahill), which requires that utilities maintain call centers within their service areas. The Senate has not acted on the companion bill (S.6079/Rules).

6/16/04 The Senate passed S.6338 (Mendez) which require the Labor Department to conduct a study of the impact of "offshore outsourcing" on the state's "information technology" sector (undefined), and the future of that job market within the state. <TBC's bill memo>. A companion bill was introduced by Assemblywoman by Susan John, chair of the Assembly Labor Committee (A.11613).

6/11/04 TBC has met with sponsors of most of these bills, as well as with the Governor's staff and leadership in both houses. To date, there has not been a serious push to enact any of the more onerous of these anti-outsourcing proposals.

Contact: For more information, contact Ken Pokalsky via e-mail <ken.pokalsky@bcnys.org> or phone at (518) 465-7511.