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2004 LEGISLATIVE WRAPUP

BUDGET
Staff Contact: Ken Pokalsky

6 Week Extender
S.7635 (Rules)/A.11708 (Rules)

  • Authorizes state disbursements through August 5.
  • Business Council has no position.

Budget Language
S.7636 (Rules)/A.11711 (Rules)

  • Makes a number of statutory changes, including: delays repeal of the clothing sales tax exemption; extends authorization for excess medical malpractice insurance.
  • Business Council has no position.

Budget "Reform"
S.7615 (Rules)/A.11702 (Rules)

  • Companion to the constitutional amendment bill passed earlier (see S.7317/A.11231); key provisions include: change start of fiscal year to May 1; requires a two year budget proposal for school aid; would impose a contingency budget, with limited exceptions on spending limits, if budget is not approved by start of fiscal year; establishes independent legislative budget office; requires appropriations of HCRA spending.
  • While TBC has not yet taken a formal position on this "reform" package, we are concerned that its prime effect will be to facilitate increased spending on major program areas including medicaid and school aid.

ADMINISTRATIVE PROCEDURES ACT
Staff Contact: Ken Pokalsky

Emergency Rulemaking
S.7066-A (Flanagan)/A.2645-B (McLaughlin)

  • Restricts agencies' ability to adopt emergency rules to instances where there is an imminent and substantial threat to public health, safety and general welfare. Exemption for rules governing matters such as rates and corporate structure (e.g., many PSC rule-makings). Requires web-site posting of the text of emergency rules, and creation of an index of such adopted rules.
  • We generally support this legislation, which will eliminate many current abuses of emergency rule-making authority such as the bypassing of public notice and comment requirements. PSC exemption will avoid adverse impact on actions affecting the business operation of regulated utilities.

Regulatory Agenda
S.6690 (Flanagan)/A.10083 (R.Diaz)

  • Extends from 12/31/04 to 12/31/08 the requirement that state agencies publish semi-annual regulatory agendas; expands requirement to also include Departments of State and Motor Vehicles; allows for alternative using web site postings.
  • We strongly support this legislation, as it preserves the requirement for advance notice of proposed rulemaking to the regulated community.

Installment Payments
S.6689-A (Flanagan)/A.345-A (Christensen)

  • Allows quarterly installments payments for any fee or civil penalty of greater than $300 imposed by a state agency on a small business or municipality; allows for charging interest and posting of financial assurance.
  • Business Council supports the proposal, but believes that requiring financial assurances will diminish value of this payment option.

TELECOMMUNICATIONS

Hours of Service
S.5900 (Morahan)/A.9661 (Gromack)

  • Exempts drivers engaged in restoration of telephone service from service regulations prescribed by the Commissioner of Transportation.
  • We are fully supportive of this exemption because of the vital nature of telephone service and the importance of its restoration during emergencies.

Wireless Surcharges
S.4727(Hoffman)/A.9038 (Rules)
S.326 (DeFrancisco)/A.9152 (Rules)
S.6747 (Rules)/A.10902 (Rules)
S.4620 (Little)/A.8850 (Ortloff)
S.7351 (Little)/A.11323 (Sayward)

  • These bills authorize the imposition of county-level surcharges on wireless telephone service in Madison, Onondaga, Sullivan, Clinton and Warren Counties, respectively.
  • Business Council opposes these surcharges.


ENERGY

Wind Net Metering
S.4890-E (Wright)/A.4245-A (Englebright)

  • provides for net metering for wind electric generating equipment for farmers and residential customers.
  • Business Council opposes this measure because it forces utilities to purchase excess generation at the full retail rate, which amounts to a forced subsidy of these generators by other electric customers.

NYPA Power for Schools
S.7441-C (Golden)/A.10556-E (Karben)

  • Allows NYPA to purchase energy from the competitive marketplace for all public and nonpublic elementary and secondary schools in New York State.
  • Business Council has no position.

NYPA Power for Military Bases
S.7600-A (Wright)/A.11578-A (Aubertine)

  • Requires NYPA to provide low-cost power to New York's military bases.
  • Business Council has no position.

Retail Geographic Divorcement
S.4428-B (LaValle)/A.8589-A (Abbate)

  • Establishes minimum distances in which a refiner may operate retail service stations.
  • TBC strongly opposes this legislation as it only restricts refiner-producer company operated stations, while marketers and hyper-marketers would be allowed to have stations at locations of their choosing, thus imposing unfair limits on the free market system.

INSURANCE

Rates for Annuities
S.6208 (Seward)/A.10283 (Farrell)

  • Updates rates for fixed annuities, and establishes a mechanism for keeping the rate structure current.
  • Business Council supports this measure as it will bring New York's standard nonforfeiture law for annuities into conformity with the NAIC model.

Homeowners Catastrophic Coverage
S.7576 (Seward)/A.11671 (Grannis)

  • Extends the homeowners' insurance/catastrophic coverage and the New York Property Insurance Underwriting Association to 6/30/05.
  • Business Council supports.

Credit Scoring
S.5618-D (Seward)/A.4754-D (Rivera, P.)

  • Prohibits insurers from denying a policy for personal lines insurance based solely on credit scoring.
  • Business Council supports.

TRANSPORTATION

Taxation of Railroad Property
S.5526-B (Larkin)/A.9494 (Gunther)
• State assistance shall to paid to municipal corporations that are affected by any exemption of railroad real property as a result of acquisition by a public authority.
• Business Council supports.

CONSTRUCTION

New York City School Construction Authority
S.7447 (Padavan)/A.11471 (Sanders)

  • Extends from June 30, 2004 until June 30, 2009 exempting the New York city school construction authority from the Wicks Law.
  • Business Council supports.

Construction Act for New York City
S.7626 (Golden)/A.11700 (Silver)

  • Enacts the coordinated construction act for lower manhattan.
  • Business Council has no position.

Payment to Subcontractors
S.595-A (Hannon)/A.4672 (Tocci)

  • Relates to the responsibility for contractors to pay subcontractors on a timely basis.
  • Business Council supports.

Bonding Requirements
S.3363 (Mendez)/A.9099 (Powell)

  • This bill would increase the threshold whereby contractors and subcontractors must secure a performance bond for New York projects from $50,000 to $100,000.
  • Under Review.

HEALTH
Staff Contact: Mark Amodeo

Accounting Standards for Not-for-profit Health Plans
S.1173-A (Seward)/A.252-D (Cahill)

  • Allows not-for-profit health plans to value some of their real estate holdings at ninety percent of its current market value.
  • Business Council supports.

Organ and Tissue Donor Registry
S.7058-A (Hannon)/A.11301-A (Schimminger)

  • Directs the Department of Health to establish a New York State organ and tissue donor registry.
  • Business Council has no position.

Clinical Laboratory Technology Act
S.3762-B (Balboni)/A.8094-B (Canestrari)

  • Defines the practice of clinical laboratory technology and provides for the licensing of clinical laboratory technologists and cytotechnologists.
  • Business Council has no position.

Care Centers for Eating Disorders
S.5646-A (Rules)/A.11396 (Ortiz)

  • Establishes comprehensive care centers for eating disorders.
  • Signed by the Governor on June 21. Chapter 114.

Residential Health Care Facility Rightsizing Program
S.7568 (Meier)/A.8815 (Gottfried)

  • Establishes a voluntary residential health care facility rightsizing demonstration program. The demonstration is designed to promote the development of less restrictive and less institutional long-term care programs and services.
  • Business Council supports.

LABOR AND HUMAN RESOURCES
Staff Contact: Tom Minnick

Replacement Workers
S.772 (Marcellino)/A.8231 (John)

  • Would be an unfair labor practice under state labor law for employers to grant permanent status to replacement employees hired during a legal strike or lockout. It would authorize back pay and other remedies to affected workers. For most New York State unionized private sector employers, this bill will be pre-empted by federal labor law.
  • We have opposed this bill and will urge a Gubernatorial veto.

TAXATION

Sales Tax Reimposed on Clothing $110
Chapter 120 - S.7636 (Rules)/A.11711 (Rules)

  • Continues to tax at both State and local rates clothing under $110 for the period 8/1/4 through 9/30/4; establishes a State tax-free period (with local option) from 8/31/4 to 9/6/4 for clothing $110.
  • TBC opposes this tax increase imposing State Sales Tax and preempting local exemption from Sales Tax on clothing $110.

Reservation Cigarette and Motor Fuel Sales to Non-Indians
S.6822 (Spano)/A.11089 (Magee)

  • Codifies existing Department of Taxation & Finance regulations to implement its provisions to collect taxes from non-Indians who purchase cigarettes and motor fuel on Indian reservations through collection at the distributor level before they are transported onto reservations.
  • TBC supports to eliminate the negative impacts tax evasion has had on health programs for New Yorkers and tax-abiding businesses.

State Reimbursement to Localities for Exempt RR Property
(See Transportation)

Additional 1% Local Sales Tax Authorized for Onondaga County
S.7608 (Rules)/A.11691 (Rules)

  • Authorizes Onondaga County to raise its local sales and use tax rate 1% for the period 9/1/4 to 11/30/5.
  • Business Council opposes.

UNEMPLOYMENT COMPENSATION

In-person UC Office Staffing
S.3444-A (Velella)/A.11564 (John)

  • Requires the Department of Labor to return to a system of heavier reliance on in-person claim initiation and in-person weekly benefit check eligibility verification at all unemployment compensation offices; places additional posting and notification requirements on employers with fines up to $500 for failure to meet the new requirements.
  • Business Council opposes; sponsors offer no justification other than 4-year old conclusionary statement that "DOL's recent adoption of a Tel-Claim system to be utilized for ... filing and processing uc claims ... has raised serious concerns relating to the impact these changes will have on an individual's ability to understand and use the new telephone system"; standards for employer compliance lacking.

Eligible Rollover Distributions From A Pension Plan
S.7383 (DeFrancisco)/A.11384 (Christensen)

  • Excludes "eligible rollover payments" from a pension plan from the pension offset provisions of UC law.
  • Business Council has qualified support if the "eligible rollover payments" from the claimant's bankrupt, former employer's pension plan are not, in turn, distributed from the (IRA) rollover account.

CONSUMER

Gift Cards
S.6611 (Fushcillo)/A.10334 (Pheffer)

  • This legislation would clarify that the definition for gift certificates includes gift cards and would require that limitations placed on gift certificates by issuers (including expiration dates, any fees charged against the balance, and any replacement policy) shall be disclosed to a consumer at the time of purchase. The bill also amends the abandoned property law to add the gift certificate definition to the "Definitions" section.
  • Business Council has no position.

Fees charged against gift certificates
S.6612 (Skelos)/A.10333 (Pheffer)

  • The purpose of this bill is to address the fees that are charged against a gift certificate. This legislation adds a new subdivision 5 to section 396-i of the General Business Law to prohibit the assessment of retroactive fees against gift certificates or gift cards. This legislation also prohibits the assessment of monthly, service fees until the thirteenth month of dormancy.
  • Business Council has no position.

SMALL BUSINESS

Collection of Sales Taxes on Indian Reservations
S.6822-B (Spano)/A.11089-A (Magee)

  • Requires the Department of Taxation and Finance to begin collecting taxes on Indian sales of cigarettes, motor fuel and other products, to non-Indians.
  • We strongly support this as a measure to help level the playing field for small businesses.

FINANCIAL SERVICES

Credit Union Conversion
S.7127-A (Farley)/A.11023-A (Nolan)

  • Allows for the conversion of a credit union into a mutual savings bank.
  • This was necessary to allow credit union to convert to state-chartered savings banks to help place the state charter on equal footing with the federal charter option, and to that end, TBC has no objection.

Credit Union Membership Eligibility
S.6868-B (Farley)/A.9475-B (Nolan)

  • Provides state-chartered credit unions with certain powers and membership qualifications comparable to federally-chartered credit unions.
  • Business Council has no position.

WORKERS' COMPENSATION

Direct Deposit of Benefits
S.5835 (Maziarz)/A.9502 (Hoyt)

  • Allows workers' compensation check to be deposited into a direct deposit account electronically. The board is authorized to promulgate reasonable rules and regulations, as may be necessary, to administer the direct deposit of injured worker's compensation payments.
  • Under Review.

OUTSOURCING
Staff Contact: Ken Pokalsky

Study of IT Industry
S.6338 (Mendez)/A.11613 (John)

  • Directs Department of Labor to conduct study of impact of offshore outsourcing on "information technology" jobs, including but not limited to "customer service, technical employees, and other industries," and make recommendations for improving state competitiveness.
  • TBC opposed this bill because it targets our financial service sector, and because it may be used to promote restrictions on business activities.

ENVIRONMENT
Staff Contact: Ken Pokalsky

Mercury Product Labeling
S.7399-B (Marcellino)/A.10051-B (DiNapoli)

  • Requires on-product labeling of most mercury-containing products; imposes disposal ban on such products. Accepts labels approved by other states.
  • We give it "qualified support" since it promotes interstate consistency in labeling; broader applicability than some states' labeling requirements; clarification needed on effective date.

Plastic Pipe Restrictions
S.7577 (Rules)/ A.11660 (John)

  • Extends (to 1/1/08) and broadens restrictions on use of plastic piping and conduit in many multi-family, commercial and industrial construction applications.
  • We strongly opposes this material ban and will urge a Gubernatorial veto.

Creosote Restrictions
S.4975-B (Marcellino)/A.5930-F (Brodsky)

  • Prohibits manufacture, sale or use of creosote treated products, with exemptions for most utility and rail uses; bans most burning of creosote products or creosote wastes (limited exemption for energy recovery).
  • TBC supports exemption for utility and rail use; opposes prohibition on incineration of creosote wastes.

Bromated Flame Retardants
S.7621 (Marcellino)/A.10050 (DiNapoli)

  • Prohibits the manufacture and distribution of brominated flame retardants (other than deca); authorizes the DEC to grant waives based on findings of no significant public health threat from such materials.
  • TBC did not take a position; exclusion of decabromodiphenyl ether made this acceptable to manufacturers.

ECONOMIC DEVELOPMENT
Staff Contact: Ken Pokalsky

Albany Convention Center
S.5593-C (Breslin)/A.9025-C (McEneny)

  • Creates the Albany Convention Center authority; authorizes issuance of up to $250 million in revenue bonds to be financed by, among other sources, county-level hotel occupancy taxes.
  • Business Council has no position.

NYPA Power for Military Bases
(See Energy)

Linked Deposit Program
S.3333 (Saland)/A.6035 (Schimminger)

  • Extends the loan period under "Excelsior Linked Deposit" program from two to four years. This program provides an interest rate subsidy for small business loans of up to $1 million.
  • Business Council supports.

"Micro" Business Loans
S.2808-A (McGee)/A.6679-A (Lifton)

  • Authorizes state grants up to $200,000 per year for the purpose of establishing a revolving loan program for micro businesses (5 or fewer employees) relating to agricultural products, forest products, cottage and crafts industries, tourism, and other products provided such business employs five or fewer full-time persons. Micro Businesses Grants could go to not-for-profits and to public benefit corporations.
  • Business Council has no position.

Small Business Loans
S.5823-B (Skelos)/A.9384-A (DiNapoli)

  • Authorizes creation of joint venture limited liability companies whose primary purpose is to make loans to small businesses in conformance with the Small Business Act.
  • Business Council has no position.

GENERAL COUNSELS

Publication of Ownership Interest
S.5902-B (Skelos)/A.11205 (Farrell)

  • Requires the publication of the names of ten members of certain businesses who have the most valuable interests in such businesses.
  • Under Review.
   


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