2007
LEGISLATIVE WRAPUP
Following is The Business Council's End of Session Wrap Up. If you have any questions, you may contact the staff person mentioned for that particular subject at (518)465-7511.
ECONOMIC DEVELOPMENT
Staff Contact: Ken Pokalsky
Power for Jobs/Economic Development Power
S.5826-A (Wright) / A.9254 (Tonko) and S.6179 (Wright) / A.9255 (Tonko)
Passed both houses; Submitted to the Governor for approval.
- Extends the Power for Jobs and Energy Costs Savings Benefit programs through June 30, 2008
- Provide for financial support from the New York Power Authority for this program extension.
- Business Council supported
Semetech Funding
S.6017 (Bruno) / A.8359 (Silver) @ request of the Governor
Passed both houses
- authorizes the Urban Development Corporation to issue up to $300 million in bonds to support the development of the “International computer chip research and development center” at SUNY Albany
- Business Council has no position
“Upstate Now”
S.5953 (Bruno)
Passed Senate
- omnibus economic development proposal, including a number of provisions targeting upstate New york.
- includes $950 million in tax reductions for the current tax year, rising to $2.5 billion per year once fully implemented. The package also includes nearly $1 billion in new and modified economic development funds.
- includes business tax reform, including elimination of the corporate franchise tax on manufacturers, lowering the Article 9-A rate from 7.1 to 6.85 percent, providing a STAR property tax relief program and a electric energy tax credit for small business, and others.
- increases business and infrastructure investments, including capital support for economic development and te water and sewer lines; support for state-wide broadband access; and creation of new economic development zones around regional airports.
- creates new support for innovation and technology through refundable tax credits; increased tax credits for qualified emerging technology companies; $100 million in regional partnerships; new commercialization assistance grants; and incentives for bioscience and nanoscience commercialization.
- reduces health care costs on small business by allowing businesses to purchase Health New York at the unsubsidized cost; expand eligibility for Healthy-NY coverage; provide small business with tax credits for health insurance cost; and exempt Health Savings Accounts from state health insurance mandates.
- Business Council supported
IDA “Civic Facility” Authority
S.6333 (Rules) and A.9238 (Hoyt)
Senate bill passed Senate; Assembly bill passed Assembly
- these bills extend the authorization of industrial development agencies to finance “civic facilities” to July 1, 2009 and January 31, 2008, respectively. This authority will expire June 30, 2007.
- allows IDA to finance projects at colleges and universities; long-term care facilities; as well as other categories of not-for-profit organizations for up to $20 millionper project.
- Business Council supported S.6333
IDA Restrictions
A.8307 (Hoyt)
Passed Assembly
- restrict activities of industrial development agencies, imposes significant new procedural requirements and operational costs on businesses receiving IDA support.
- mandates that IDA-financed projects pay "prevailing wages" for construction projects, and pay all employees no less than the median hourly wage for all occupations in the MSA closest to the project.
- mandates suspension of, and require repayment of, benefits for recipients that have a "substantial" violation of environmental, workers comp or tax law, while defining "substantial" as a violation resulting in a civil penalty of more than $100.
- Business Council opposed
ENERGY
Staff Contact: Ken Pokalsky
Article X
S.5908 (Wright); A.8697 (Tonko); S.6178 (Wright) / A.9001(Tonko) @ request of the Governor
S.5908 passed the Senate; A.8697 passed the Assembly; the Governor’s proposal was not moved in either house.
- These are three separate proposals for recreating the state’s Article X process for siting powerplants.
- The Senate bill established a fuel-neutral siting process, with no emissions-based eligiblity criteria.
- The Assembly bill allowed a six month review for proposals that met more stringent emission and water use criteria; gave DEC discretion to determine whether coal-based proposals were used technology that was “appropriate” for Article X review.
- The Governor’s proposal set additional environmental performance standards as Article X eligiblity criteria; restricted new coal based generation to no more than two additional “pilot” plants that must be carbon “capture and sequestration ready.”
- Business Council supported S.5908; gave qualified supported S.6178 / A.9001
Fuel Transmission Facility Security
S.6167-A (Skelos) / A.9086-A (Gianaris)
Passed both houses
- directs state Office of Homeland Security to assess security measures addressing critical infrastructure related to commercial aviation fuel, petroleum and natural gas transmission pipelines.
- gives OHS authority to inspect facilities, review facility security audits.
- allows Department of Public Service to require implementation of any security improvements recommended by OHS.
- Business Council opposed
ENVIRONMENT
Staff Contact: Ken Pokalsky
Restrictions on Commercial TSDFs
S.5862 (Maziarz) / A.248-B (DelMonte)
Passed both houses
- Prohibits new or extended permits for commercial hazardous waste management facilities that have the “potential” to release chemicals into the Great Lakes.
- Aimed at precluding extension of the operating permit for the state’s lone commercial hazardous waste landfill in Niagara County.
- Business Council opposed, will support a gubernatorial veto
Great Lakes Compact
S.4324-B (Maziarz) / A.7266-B (Sweeney) @ request of Department of Environmental Conservation
Senate Calendar; Assembly Calendar
- Incorporates the eight state Great Lakes compact into state statute; the compact establishes consistent, region-wide process and criteria for reviewing proposals for significant new or increased water withdrawals and consumptive uses; generally prohibits diversions of water out of the basin.
- To be implemented, the Compact must be approved by all eight states, and by Congress.
- Business Council supported, with amendments
Climate Change Task Force
S.5427-A (Marcellino) / A.7367-A (Sweeney)
Passed both houses
- Creates a 21 person, interagency task force to develop recommendations for an action plan to mitigate the potential impact of climate change on New York and minimize disruption to the State's economy, infrastructure and environment.
- must submit draft plan within one year, and hold statewide public hearings on the draft plan. Must update plan every two years.
- Business Council has no position
Sea Level Rise Task Force
S.6118-A (Marcellino) / A.9002-A (Sweeney)
Passed both houses
- creates a 16 person “New York state sea level rise task force” within the Department of Environmental Conservation, with six state agency members and ten appointed members.
- will evaluate ways of protecting New York's coastal ecosystems and natural habitats in the event of sea level rise.
- report due December 31, 2009
- Business Council has no position
Expanded Bottle Bill
S.3434 (Lavalle) and S.5850 (Marcellino) / A.8044 (Sweeney) @ request of the Governor
Senate EnCon Committee; Assembly Ways & Means Committee
- Extends the bottle deposition law to most categories of non-carbonated beverages
- Captures unclaimed deposits for support of the state’s “Environmental Protection Fund”
- Business Council opposed
Small Business Technical Assistance
S.5593 (Flanagan) / A.726 (Christensen)
Passed Both Houses
- authorizes Department of Economic Development regional offices to provide information and assistance to small businesses on environmental compliance and pollution prevention
- Business Council supported
Environmental Protection Fund
S.5304 (Marcellino) / A.8339 (Sweeney)
Passed both houses
- Increased the amount of funds to be transfered to the Environmental Protection Fund to $237 million effective in FY 2009 and to $287 million effective FY 2010, up from $212 million in the current fiscal year.
- Business Council has no position
HEALTH
Staff Contact: Mark Amodeo
Healthy New York/Labor-Management Benefit Fund Demonstration Project
S.6316 (Maltese) / A.4859-D (John)
Passed both houses
- This bill would redirect millions of dollars in Healthy New York reinsurance funds to subsidize health insurance costs for union members.
- Business Council opposed
MRI Mandate
S.4158-B (Skelos)
Passed Senate
A.7146-C (Rosenthal) (not same-as bills)
Referred to Assembly Insurance Committee
- These bills would require health insurers to provide coverage for annual MRI scans for women age 30 or older who are at high risk for cancer.
- Business Council opposed
Healthcare Community Reinvestment Fund
S.6056 (Hannon) / A.8704 (Bradley)
Senate Rules; Assembly Insurance committees
- This bill would create a new tax on health insurers to provide financial support to hospitals and physicians to pay for health information technology and other healthcare initiatives around the state.
- Business Council opposed
Healthy New York Eligibility
S.6385 (Alesi) / A.395 (Morelle)
Passed Assembly; Senate Rules
- This bill would remove the requirement that small businesses must not have offered health insurance to workers for a 12-month period prior to applying for Healthy New York.
- Business Council opposed
Disclosure of Marketing & Educational Efforts by Drug Manufacturers
S.2971 (Maziarz) / A.7468 (Gottfried)
Passed Assembly; Senate Health Committee
- This bill would drug manufacturers and wholesalers to disclose marketing and educational efforts directed at health-care providers valued at more than $75.
- Business Council opposed
Prohibition on Insurers’ Right of Subrogation for Collateral Source Payments
S.5128 (DeFrancisco)
A.8364-A (Weinstein) (not same-as bills)
Senate Rules Committee; Assembly Rules Committee
- These bills would prohibit insurers from recovering medical expenses lawfully paid by an insurer from a settlement of a legal action where an insured’s injuries were caused by another party.
- Business Council opposed
INSURANCE
Staff Contact: Mark Amodeo
Group Key Person Life Insurance Contracts
S.5138 (Seward) / A.7896 (Destito)
Passed Senate; Assembly Insurance
- This bill would allow New York’s employers to purchase group contracts of key person life insurance coverage for their employees.
- Business Council supported
LABOR AND HUMAN RESOURCES
Staff Contact: Tom Minnick
Waiver of striker’s UI waiting period
S.654 (Marcellino) / A.1302 (Nolan)
Passed both houses
- would waive the seven week unemployment insurance waiting period for strikers if the employer hires replacement workers
- Business Council opposed
Express breast milk at work
S.5596 (Flanagan / A.1060 (Destito)
Passed both houses
- would require employers to provide reasonable unpaid or paid break time or meal time in an area close to the work area for expressing breast milk
- Business Council took no position
IT “Outsourcing” Study
S.2377 (Leibell) / A.8284 (Bradley)
Passed both houses
- Directs the Department of Labor to issue a report on the offshore outsourcing of information technology jobs; assess the future of New York’s IT industry, and factors affecting its competitiveness.
- Similar legislation was vetoed after the 2004 session.
- Business Council opposes
Enhanced whistleblower protections
S.5655 (Leibell) / A.8405 (Brodsky)
Senate Rules Committee / A.8405 – Assembly Labor Committee
A.9247 (Benedetto)
Passed Assembly
- would provide enhanced protection from retaliatory action by employers to employees who reasonably believe their employers committed an illegal business activity
- Business Council opposed
Paid Family Leave
S.5821 (Morahan)
Senate Labor Committee
A.9245 (Silver) (Not same as)
Passed Assembly
- Both have provisions of the Governor’s Program bill # 28
- would allow up to 12 weeks of disability insurance benefits to non-disabled employees to care for a newborn or newly adopted child or to care for an ill family member
- Business Council opposed
Increase maximum Disability Insurance benefit
S.1952 (Leibell) / A.6927 (Nolan)
Senate Rules / Assembly Ways & Means Committee
- would increase the maximum statutory disability benefit from the current $170 per week to $380 per week on July 1, 2008 and to $440 per week on July 1, 2009
- Business Council opposed
Limiting consecutive hours of work for nurses
S.6342 / A.1898-B (Gunther)
Senate Rules / passed Assembly
- Would prohibit employers from assigning overtime to nurses beyond their normal work schedule unless due to disaster, declaration of an emergency or unforeseen situations to insure patient care after the employer has tried other methods to cover the need
- Business Council opposed
OTHER ISSUES
Staff Contact: Ken Pokalsky
Installment Payments for Small Business
S.5628-A (Flanagan) / A.719-A (Christensen)
Passed both houses
- amends the State Administrative Procedure Act to authorize installment payment of fees and civil penalties owed to the state by small businesses, other than penalties imposed by the Department of Taxation and Finance and penalties for traffic and parking infractions.
- Business Council supported
Wicks Reform
S.6146-A (Rules) / A.9204 (John) @ request of the Governor
Senate Rules Committee; Passed Assembly
- increases threshold for mandated separate contractors for public works from $50,000 statewide, to $3 million in New York City, $1.5 million in Nassau, Suffolk and Westchester counties, and $500,000 in the remainder of the state.
- authorizes the use of project labor agreements in lieu of separate
specifications in public works contracts that would otherwise be subject
to the Wicks Law.
- Business Council gave qualified support
TAXES
Staff Contact: Rich Schwarz
Budget Chapter Amendment – Conversion from Article 32 to Article 9-A
S.6354 (Rules) / A.9253-A (Bing)
Delivered to Governor on June 27, 2007
- Clarifies that if a banking corporation changes its corporate structure prior to January 1, 2008 (the effective date of the Gramm-Leach-Bliley transitional provisions) it will continue to be taxed as a bank even if it no longer meets the criteria for bank taxation status under Section 1452.
- Likewise clarifies for City of New York taxation.
- Limits both clarifications to tax years beginning before 2010.
- Business Council supported
Budget Chapter Amendment – Grandfathered 9-A Effective Date
S.6340 (Rules) / A.9312 (Silver, et al.)
Passed both houses
- Changes the application of the effective date of Part G of Chapter 60 of the Laws of 2007 from January 1, 2007 to apply to acquisitions occurring on or after January 4, 2007.
- Business Council supported
Budget Chapter Amendment – Conversion from Article 9-A to Article 32 and REITs/RICs
S.6335 (Farley) / A.9311 (Silver, et al.)
Delivered to the Governor on June 28, 2007
- Changes the application of the effective date of Part G of Chapter 60 of the Laws of 2007 from January 1, 2007 to apply to acquisitions occurring on or after January 4, 2007.
- Amends Part F of Chapter 60 of the Laws of 2007 to exempt from the REIT/RIC combined report requirement those instances where a REIT/RIC owns subsidiary REITs/RICs.
- Clarifies that the Article 32 (Bank Tax) rules apply, instead of the Article 9-A rules, when a /banking corporation owns a REIT/RIC but has a subsidiary 9-A corporation within its chain of corporations.
- Business Council supported
Budget Chapter Amendment – Publicly-Traded REITs and RICs
S.6336 (Rules) / A.9313 (Silver, et al.)
Delivered to the Governor on June 28, 2007
- Excludes from the combined reporting requirement those REITs/RICs directly or indirectly owned by publicly-traded REITs/RICs.
- Business Council supported
Budget Chapter Amendment – REITs, Gramm-Leach-Bliley, Articles 9-A & 32 Conversions, Multi-layered Passive Holding Companies
A.9294 (Farrell)
Assembly Calendar
- Omnibus Department of Taxation & Finance technical corrections bill to Chapter 60 of the Laws of 2007.
- Business Council opposed as written.
Real Property Transfer/Community Preservation Tax
S.6271 (Leibell) / A.7849-B (Bradley) and S.4692 (Saland) / A.8217 (T.Gordon)
Passed both houses
- Authorizes towns and cities in Westchester and Putnam counties, and the town of Chatham in Columbia County, respectively, to impose real property transfer taxes of up to 2 percent.
- Requires development of formal community preservation plans for open space protection.
- Requires local referendum to implement.
- Allows an exemption equal to the median sales price of residential real property within the applicable town or city.
- Business Council has no position
Special Commercial Assessment Rate for Suffolk County
A.6753 (Sweeney)
Senate Rules Committee
- Requires the establishment of a special commercial assessment rate for Suffolk County and its introduction into evidence at certiorari proceedings.
- Business Council opposed
Special Commercial Assessment Rate for Westchester County
A.6099 (Bradley) / S.3298 (Oppenheimer)
A.6099 Starred on Calendar; S.3298 Local Government Committee
- Requires the establishment of a special commercial assessment rate for Westchester County and its introduction into evidence at certiorari proceedings.
- Business Council opposed
TELECOMMUNICATIONS
Staff Contact: Ken Pokalsky
Net Regulation
S.5124 (Leibell) / A.3980 (Brodsky)
Passed Assembly
- Imposed numerous additional regulations on a wide range of telecommunication services.
- Among other things, would have imposed so-called “net neutrality” on internet service providers
- Business Council opposed
TORT REFORM
Staff Contact: Mark Amodeo
Pre-Judgement Interest
S.6365 (Maltese)
A.8299 (Brennan) (not same-as bills)
Senate Rules; Assembly Judiciary Committee
- These bills would mandate pre-judgement interest in personal injury cases.
- Business Council opposed
Declaratory Judgment Action
S.6306 (DeFrancisco) / A.8363-A (Weinstein)
Passed both houses
- Permits commencement of an action to determine the question of insurance coverage.
- Prevents a property/casualty insurer from denying coverage on the basis of late notice of claim, unless such insurer can demonstrate they were "materially" prejudiced by such late notice.
- Business Council opposed
Recovery Directly from Defendant by Plaintiff
S.2065 (DeFrancisco) / A.6310 (Weinstein)
Senate Rules Committee / Assembly Calendar
- allows a plaintiff to recover on a judgment for contribution against a third party defendant, whether or not the defendant/third party plaintiff has
satisfied the underlying judgment for which contribution or indemnification is sought.
- Business Council opposed
UNEMPLOYMENT COMPENSATION
Contact: Rich Schwarz
Charging of Unemployment Compensation Benefits to Employers
A.3626-A (John) / S.1624 (Maziarz)
Delivered to the Governor on June 22, 2007
- Changes the method of charging Unemployment Compensation benefits to responsible employers to provide that the separating employer of a person eligible for UC benefits is not charged substantially more in benefits than the person received in wages from such employer. Specifically, the number of weeks charged to the separating employer is reduced from seven to the lowest whole number of weeks that covers the amount of wages paid by the separating employer.
- Business Council supported
WORKERS’ COMPENSATION
Staff Contact: Ken Pokalsky
Use of Pharmacies
S.6224 (Rules) / A.9170 (Gianaris)
Passed Senate only
- prohibits employers from restricting claimants from using the pharmacy of their choice, provided the pharmacy sells prescriptions consistent with price schedules adopted by the Workers’ Compensation Board.
- would overturn one of the significant cost savings reforms adopted in the omnibus comp reform bill earlier this session; would counteract the cost reductions achieved by employers through negotiated pharma fees.
- Business Council opposed
Aggregate Trust Fund
S.6235 (Rules)
Senate Rules Committee
- would mandate that self-insured entities, self insured groups and participants in the State Insurance Fund deposit the "present value" of permanent partial disability benefits into the state's Aggregate Trust Fund (ATF).
- would exacerbate an inadvertent provision of this year's comprehensive workers' compensation reform act, thereby eroding the intended savings of the Act.
- Business Council Opposed
