1998 Legislative Session Wrap-up/Post Budget

31
Dec
1998

Our wrap-up includes final action on major issues of concern to the business community. Please call or e-mail the designated Business Council staff person for further details on any of these issues or to receive copies of any legislation.

Issue Areas:

To view the text of any bill mentioned below, click here and enter the bill number.

UNEMPLOYMENT COMPENSATION

Passed Both Houses:

  • Unemployment Compensation (UC) Reform / Change of Tax Tables
    S.7817 (Bruno, et al.) / A.11396 (Rules) Support.
    (Contains numerous provisions of TBC 1998 Legislative Program)
    Establishes new UC tax tables for the Experience-rated and Subsidiary Taxes that generally continue to decrease tax rates as an employer's UC experience progresses more favorably and continue to increase tax rates as an employer's UC experience further worsens (the change in the tax tables will be a significant financial savings to companies with stable employment experience); increases the Taxable Wage Base above the Federal $7,000 Taxable Wage Base to $8,500; increases the maximum weekly benefit rate to $365 per week on Labor Day, 1998 and to one-half of the State's average weekly wage in covered (by UC) employment on Labor Day, 2000; converts New York to a wage report state leaving Michigan as the sole wage request state; allows both a basic base period of the 4 oldest of the 5 latest completed calendar quarters and an alternate base period of the 4 latest completed calendar quarters, but not an incomplete calendar quarter requiring wage requests of employers.

Bills Not Enacted:

  • UC Reform / Change of Tax Tables
    S.5758 (Spano, Alesi) Support.
    (1998 TBC Legislative Program)
    Establishes new UC tax tables for the Experience-rated and Subsidiary Taxes; increases the Taxable Wage Base above the Federal $7,000 Taxable Wage Base to $8,500; increases the maximum weekly benefit rate to $350 on Labor Day, 1998 and to 50% of the State's average covered weekly wage on Labor Day, 2000; converts New York to a wage report state leaving Michigan as the sole wage request state; allows both a basic base period of the 4 oldest of the 5 latest completed calendar quarters and an alternate base period of the 4 latest completed calendar quarters, but not an incomplete calendar quarter requiring wage requests of employers; increases the requalification standard to 8 times a claimant's weekly benefit rate.
  • Change of UC Tax Tables
    A.8664 (Rules at request of Nolan) Oppose.
    Establishes new UC tax tables for the Experience-rated and Subsidiary Taxes; increases the Taxable Wage Base above the Federal $7,000 Taxable Wage Base to $8,500; increases the maximum weekly benefit rate to $350 on Labor Day, 1997 and to 50% of the State's average covered weekly wage on October 1, 1997, October 1, 1998, September 1, 1999, October 1, 1999, and every October 1 thereafter; converts New York to a wage report state leaving Michigan as the sole wage request state; allows a basic base period of the 4 oldest of the 5 latest completed calendar quarters, an alternate base period of the 4 latest completed calendar quarters, and a second alternate base period of the 3 latest completed calendar quarters and the incomplete calendar requiring wage requests of employers; decreases the requalification standard to merely 5 times the claimant's weekly benefit check amount.

ENERGY AND TELECOMMUNICATIONS

Passed Both Houses:

  • Acceleration of the Power for Jobs Program with Additional Megawatts
    S.7847 (Seward, et al.) / A.11406-A Rules at request of Tonko, et al.) Support.
    Accelerates year one of the Power for Jobs program, making 133 megawatts originally slated for 1999 available during the remainder of 1998. 133 MW set aside for the year 2000 will be allocated in 1999. Also provides an additional 50 MW to be distributed during year three. Makes changes so that a total of 100 MW, up from the 75 MW as outlined in the original Power for Jobs legislation, will be made available to small businesses and not for profit corporations. Eases filing requirements for small businesses so that only those using a peak electric demand of 100 KW or less monthly may need to file a joint application with other similar small businesses. Under the current program, joint filings may be required of small business applicants with peak demands of 400 KW or less monthly. 25 MW of the additional 50 MW will be procured through a competitive bidding process and 25 MW will be supplied by the New York Power Authority's Fitzpatrick plant. Net lost revenues of electric utilities will continue to be offset through the use of a tax credit against their gross receipts tax liability.
  • Elimination of SAPA Requirements Related to Telecommunications Filings
    S.6550 (Present, et al.) / A.11091 (Rules at request of Vann, et al.) Support.
    Eliminates current requirement that any announcement of new telecommunications products approved by the Public Service Commission be published in the New York State Register. Also eliminates the required 45 day public comment period following such notification.
  • Redefinition of "Major Change" As Applied to Utility Rate Filings
    S.4278 (Seward) / A.8188 (Vann, et al) Support.
    Changes the definition of "major change," with regard to utility rates, to mean an increase in a company's aggregate revenues greater than $300,000, or 2.5 percent, up from the current $100,000. Streamlines review process by eliminating the mandatory public hearing but allowing for a public hearing at the discretion of the Public Service Commission. Applies to steam utilities, water companies and telecommunications corporations.

Bills Not Enacted:

  • Elimination of the Excess Dividends Tax
    S.7535-A (Seward) / A.10955-A (Farrell) Support.
    Would exempt total assets over 4 percent transferred from a subsidiary company to a holding company from a 4.5% excess dividends tax when those assets are not designated for payments to shareholders of the parent company.
  • Elimination of the Natural Gas Importation Privilege Tax (GIPT)
    S.7270 (Seward) / A.10939 (Tonko) Support.
    Would disqualify deregulated utilities and Independent Power Producer facilities located in New York State from the definition of "gas importer" and exempt these entities from paying the GIPT.
  • Tax Exemption On Electricity Sold for Resale
    S.7369 (Seward) / A.10845 (Farrell) Support.
    Would eliminate an unintended, repetitive tax on power that is sold to the restructured electric power pool and is then sold a second or more times before being delivered to the end user.
  • Elimination of the Subsidiary Capital Tax
    S.7320 (Seward) / A.11266 (Farrell) / Governor's Program Bill #149. Support.
    Would exclude certain stock of utility subsidiaries from the business corporation franchise tax.
  • Retail Divorcement Applied to Petroleum Related Service Stations
    S.6999 (Balboni) / A.10229 (Abbate) Oppose.
    Would require petroleum refiners / producers to gain the expressed written consent from a franchised petroleum dealer when the proposed new station is within as much as 2.5 miles of the franchised petroleum station.
  • Electric and Gas Utility Tax Study
    S.7448 (Seward et al.) Support.
    Would direct the Commissioner of Taxation & Finance to prepare a study on the tax implications of electric and gas deregulation and direct the Chairman of the State Board of Real Property Services to prepare a study on the real property tax implications of electric and gas deregulation.

ECONOMIC DEVELOPMENT

Passed Both Houses:

  • Power for Jobs
    S.7847 (Seward) / A.11406 (Tonko) Support.
    Adds 50 megawatts to the Power for Jobs program in the third year of the program, and accelerates the allocation of 133 megawatts of power from year three to year this year.
  • Bond Carry Forward Reallocation
    S.7553 (Larkin) / A.11027 (Farrell) Support.
    Allows a bond cap carry forward allocation that could not be used for the original project in Dutchess county to be used for a similar project in Ulster County. Further requires the local taxing jurisdiction of the second project to approve the PILOT agreement.
  • Industry-specific Training Program
    A.9854 (Schimminger) Support.
    Establishes a new industry-specific training program in ESD whereby applicants for funding would be consortium of employer and industry-based organizations. This program was included in the Economic Development and Transportation budget bill passed by the Senate and Assembly in early April, but the $10 million appropriation was vetoed.
  • Private Activity Bond Allocation Formula
    S.6143 (Present) / A.9358 (Schimminger) Support.
    Establishes the Private Activity Bond Allocation formula for allocating such tax-exempt bonding authority among local and state issuing agencies, and a statewide bond reserve.

Bills Not Enacted:

  • IDA Member Conflict of Interest Restrictions
    S.4492-A (Maziarz) / A.5263-A (Gantt) Oppose.
    Expands conflict of interest requirements for members of Industrial Development Agencies, and prevents IDAs from using agency funds for lobbying purposes.
  • County-only IDAs
    A.144 (Hoyt) Oppose.
    Authorizes county-only IDAs to provide financial assistance to projects.
  • Mandatory Brownfield Sites for IDA Industrial and Commercial Projects
    S.6928-A (Johnson) / A.8564-A (Hoyt) Oppose.
    Prohibits an IDA from assisting industrial or commercial projects except in areas where that are currently zones for these types of projects.

MANUFACTURING

Passed Both Houses:

  • Sales Tax Exemption for Internet Services
    A.10952 (Schimminger) / S.7356 (Volker) Support.
    Exempts internet services from sales and use taxes, and also provides that such services are not telecommunications services, which would otherwise be taxable.

Bills Not Enacted:

  • Civil Justice Reform
    S.6661 (Volker, et al.) / A.10748 (Morelle, et al.) Support.
    Enacts the Civil Justice Reform Act of 1998. Several tort reform measures are included in this legislation, including:
    • Repeal of joint and several liability (Currently, businesses found to be 1 percent responsible for an injury can be held responsible for 100 percent of the damages. This provision would prohibit businesses from being held responsible for more than their proportionate share of damages).
    • Establishment of a statute of repose. (Currently in New York, a manufacturer can be held liable for the safety and performance of products they manufacturer as long as the product is in use. This provision would establish a time period after which the manufacturer could not be sued for injuries resulting from the use of its products)
    • Capping all non economic damage awards at $250,000
    • Repeal of strict liability for employers and property owners at construction work sites (If an injury to an employee occurs at a New York construction site the employer and property owner are automatically deemed to be liable even if the injury occurred as a result of the negligence of the employee. This provision would establish a negligence standard and allow damages to be apportioned based on degree of responsibility.)
  • Tobacco Industry Liability
    S.7773 (Rules) / A.11303 (Rules) - Department of Law program bill. Oppose.
    Establishes a right for the State to recover all expenses incurred by the state or that the state is likely to incur from use or exposure to tobacco, tobacco products, or tobacco smoke from tobacco manufacturers. This measure would strip tobacco firms virtually of any defense in such suits, and would not even require the state to demonstrate proof of medical expenses be provided to "injured" individuals.
  • Wrongful Death
    S.585-A (Lack) / A.4553-A (Weinstein) Oppose.
    Broadens the current "wrongful death" statute to allow non-economic damages for grieving and bereavement of victims' relatives.
  • Pre-judgement Interest
    A.610 (Kaufman) Oppose.
    Interest on damage awards would begin accruing when a law suit is filed, instead of when a judgement is rendered for the plaintiff.
  • Tort Settlement Declaration
    S.2786 (Lack) / A.7037 (Weinstein) Oppose.
    Requires a defendant to decide before trial whether it wants the eventual jury verdict to be reduced by: the settlement dollars paid; the amount stated in settlement releases; or the percentage of liability of all settled parties. Current law recognizes that a plaintiff should not, as a result of settling with some defendants and taking others to trial, recover more than the jury determines is a fair value of his/her claim.
  • Small Volume Brewers
    S.7249 (Present) / A. 8633-B (Schimminger) Support.
    Increases the threshold for defining a "small volume brewer" to 20,000 barrels per day for purposes of allowing restaurant-brewers to be licensed as a manufacturer.

WORKERS' COMPENSATION

Passed Both Houses:

  • Premium Cap - Workers' Compensation Rates
    S.7744 (Spano, et al.) / A.11294 (Nolan)
    The legislation is a compromise from the previous "hours worked" proposal. The bill sets limits on workers' compensation premiums for construction classification employers. For further details please see Construction Section.
  • Workers' Compensation Hearing Reform
    S.5554-B (Libous) / A.8981-B (Bragman) Support.
    Creates a new Section 2347-A in the Insurance Law requiring that the Workers' Compensation Board have an appeals process for employers who object to a rating classification.
  • Workers' Compensation Disclosure
    S.1689-B (Farley) / A.76-B (Feldman)
    This bill restricts disclosure of workers' compensation records in order to protect the privacy of claimants. It specifically authorizes disclosure necessary for claims processing, fraud investigation, and medical purposes.

Bills Not Enacted:

  • State Insurance Fund (SIF) Reforms
    S.7681 (Spano)
    This bill expands SIF's authority to invest surplus and reserves to include certain types of investment made by private insurance companies, permits SIF to enter into contracts with preferred provider organizations to provide health care services to injured employees, and expands eligibility for credit on workers' compensation insurance to all employers in safety incentive program insured by the SIF. This bill further requires the Superintendent of Insurance to study and make recommendations on group self-insurance for workers' compensation.
  • Workers' Compensation Insurance Deregulation Act
    S.5437 (Libous)
    This bill creates a new Article 23-A of the Insurance Law to deregulate the workers' compensation rate-setting process.
  • Independent Medical Examiners (IME)
    A.8212-A (Nolan) Oppose.
    A.10138 (Nolan) / S.6965 (Spano) Support.
    Both bills, though different in their approach, would provide the Chair of the Workers' Compensation Board with the authority to oversee IMEs conducted for purposes of the workers' compensation law.

ENVIRONMENTAL CONSERVATION

Passed Both Houses:

  • Diesel Vehicle Emission Tests
    S.5436-A (Marcellino) / A.1619-A (Brodsky) (Governor's Program Bill) Support.
    Imposes annual emission tests for heavy duty (>8,500 GVW) diesel vehicles that are registered -- or that "are required to be registered" -- in New York City or Nassau, Suffolk, Westchester, Rockland or Orange Counties. In upstate, these vehicles will be subject to roadside emission tests. Vehicles failing the tests must be repaired, but are not required to be taken out of service. The DEC is authorized adopt "hardship waivers" through regulation. The program will be funded through higher registration fees imposed on all heavy duty diesel vehicles registered in the state. The program will be implemented by June 1, 1999, and the program will "sunset" in five years.
  • P2 Assistance
    S.7731 (Balboni) / A.9895-B (Brodsky) Support.
    Expands the Empire State Development Corporation's two existing solid waste recycling assistance program to allow for loans, interest subsidies and other financial assistance (up to $200,000 per project) to a broader range of pollution prevention and energy/resource conservation activities. One program is for employers of fewer than 500, the second is open to all New York State businesses.
  • Corrective Actions
    S.7402-A (Marcellino) / A.11124-A (Bea) (Governor's Program Bill) Support.
    Clarifies the DEC's authority to require corrective actions at hazardous waste management facilities that once operated under "interim status" provision but never received a final RCRA permit. This bill makes the ECL consistent with federal law, and will help New York maintain program delegation from the U.S. Environmental Protection Agency.
  • Agricultural Pesticide Use
    S.3157-B (Kuhl) / A.6038-B (Tocci) No Position.
    Allows pesticides to be applied at a dosage, concentration, or frequency less than specified on the product label. Current law allows pesticides to be applied at less than its label recommendation only if approved in advance by the DEC.
  • Used Oil/Dust Control
    S.7427 (Johnson) / A.10930 (Rules/Gantt) No Position.
    Repeals NYS Department of Transportation's authority to issue regulations allowing the use of used oil for dust control on highways. The Transportation Law provisions and related DOT regulations were inconsistent with DEC regulations that prohibit the use of used oil as a dust suppressant.
  • Municipal "Brownfield" Projects
    S.7595-B (Alesi) / A.11184-B (Gantt) and
    S.6739-C (Volker) / A.10122-C (Schimminger) No Position.
    Allow the cities of Rochester and Buffalo, respectively, to issue 20 year bonds to finance the municipal share of site remediation projects funded under Title 5 of the 1996 Clean Water/Clean Air bond act.

Bills Not Enacted:

  • Title V Air Emission Fees
    S.6098-B (Budget) / A.9098-B (Budget)
    Earlier this session, the legislature rejected a proposed 60 percent increase in the Title V fee cap to $45 per ton. No alternative proposal was offered by the Administration. Title V fees this year will be $27.98 plus the increase in the Consumer Price Index.
  • Brownfield Incentives
    S.5067-A (Marcellino) / A.8470-A (Aubry) Support.
    This legislation -- proposed by The Business Council -- would have adopted numerous provisions related to "brownfield" cleanups and redevelopment, including liability reforms, use of risk-based cleanup standards, and economic incentives for the redevelopment of formerly contaminated properties. Note that alternative legislation (A.4375/Destito) -- opposed by the Business Council -- failed to pass the Assembly in 1998, despite passing in the previous session. Senate Calendar #1045; Assembly EnCon Committee.
  • Criminal Enforcement
    S.7600 (Marcellino) / A.11284 (Rules/Brodsky) (Governor's Program Bill) Opposed.
    Would have increased penalties for multiple criminal convictions for the illegal release of between 50 and 100 pounds of a hazardous substances within a five year period. Passed Senate; Assembly Codes Committee
  • Children's "Environmental Risk"
    S.6131 (Marcellino) / A.8609 (Englebright)
    S.6129 (Marcellino) / A.8612 (Englebright)
    S.6130 (Marcellino) / A.8611 (Englebright)
    The new proposals would have, respectively: required schools to use "non-toxic or least toxic" construction materials and school supplies; require the reassessment of all state environmental and public health standards to assure that they adequately protected childrens' health; and require that all new or remodeled school buildings have HVAC systems that meet ASHRA standards, and require the consider proximity to possible environmental hazards when reviewing plans for the development of new school buildings. Passed Assembly; Senate EnCon Committee
  • Environmental Protection Fund
    S.7846 (Marcellino) / A.11318 (Brodsky) (Governor's Program Bill) No position.
    Would have restored $34 million in vetoed appropriations concerning expenditures from the Environmental Protection Fund for open space, Hudson River estuary, soil and water conservation district and other project categories. Passed Senate; Assembly EnCon Committee.

HEALTH

Passed Both Houses:

  • External Review / Experimental Treatment
    S.7838 (Stafford, et al.) / Governor's Program Bill
    Allows a managed care patient to seek an independent medical review when a health service is denied them on the grounds that the service is not medically necessary. The bill also establishes an external review process for patients with life-threatening or disabling conditions seeking clinical trials, off-label use of drugs and experimental or investigational procedures or treatments when those services are denied.

    Further details of the bill: 1) independent medical review companies will be selected at random. Independent medical review companies will be certified by the state Health Commissioner and Superintendent of Insurance and their fees must be deemed to be reasonable. 2) patients must pay a $50 application fee. The application fee is returned if the denial is reversed by the external review agent. 3) the patient must exhaust all internal appeals available to them. 4) the patient has 45 days to appeal a decision to an independent medical review and the HMO has 30 days to handle the appeal (except in more serious cases where the HMO has 3 days to handle the external appeal). 5) requires the Health Commissioner and the Superintendent of Insurance to annually report the number and outcomes of external appeals.

  • Expansion of Child Health Insurance
    S.7843 (Hannon, et al.) / A.10767-B (Rules) Support.
    Expands health insurance for children by using $1.25 billion of federal funds over the next five years to provide various forms of coverage, including hospitalization. This year's legislation expands on past legislation which created the original Child Health Insurance Plus back in 1991. This year's bill ensures that children from 0-18 also have coverage for emergency, preventive and routine dental care, speech and hearing services, vision care, inpatient mental health, alcohol and substance abuse services and durable medical equipment, hearing devices, wheelchairs and leg braces. The bill raises eligibility for Child Health Plus in two steps, to 230 percent of the federal poverty level and then on July 1, 2000 to 250 percent of the federal poverty level.
  • Excess Medical Malpractice Program
    A.11151-A (Rules) Support.
    Extends the life of the excess medical malpractice program another 12 months. Freezes employer payments into the fund for another 12 months, saving employers over $150 million.

Bills Not Enacted:

  • HMO / Health Plan Liability
    A.1816-A (Grannis, Gottfried) / S. 2544-A (Velella) Oppose.
    Passed Assembly, Died on the Senate Calendar.
    Dramatically expands the liability of HMO's, insurers and self-insured employers, regardless of fault, for "any personal injury, death or damages" caused by the health care plan's delay, failure or refusal to approve, provide, arrange for, or pay for, any health care service in a timely manner.
  • Health Insurance Mandates
    There were dozens of bills that would add new health insurance mandates to the Insurance Law, for everything from acupuncture to massage therapy. The Business Council opposed these measures and none passed. Below is a listing of a few that received serious consideration this year.
    • 1) Mental health parity (S.5484 Libous / A.8315-B Rules at the request of Brennan);

      2) Prostate cancer screening (S.313 Skelos / A.4678 DiNapoli);

      3) Fertility treatment and contraceptives (A.8877 Griffith).

  • Elimination of the 8.18% surcharge on laboratories
    S.5346 (Hannon)
    Eliminates the 8.18% surcharge placed on clinical laboratories as part of the Health Care Reform Act of 1996.

TAXATION

Passed Both Houses:

  • Exclusion From Franchise Tax of Alien Hedge Funds
    S.7317-A (Goodman) Support.
    (1998 TBC Legislative Program)
    Allows alien corporations (general and banking) to trade in stocks, securities, and commodities for their own accounts without franchise tax consequences.
  • Codification of Utility Gross Receipts Tax and Sales and Use Tax Exempt Status for Internet Operations
    S.7356 (Volker, et al.) / A.10952 (Rules at request of Schimminger, Koon) Support.
    Codifies the 1997 Technical Services Bulletins and Regulations of the Department of Taxation & Finance exempting the sale of Internet services from the Sales and Use Tax, and provides that the sale of Internet services shall not be a telecommunications service otherwise taxable.

Bills Not Enacted:

  • Carry forward ITC - Successor Employers
    S.7415 (Nozzolio) / A.11005-A (Rules at request of Colman, et al.) Support.
    (1998 TBC Legislative Program)
    The legislation would transfer the Carry forward ITC, if any, of the purchased company to the purchaser-company as is the case with the other assets of the purchased company. (At present, if a company breaks up and sells off the parts of its operations, then the purchaser of a part is entitled to take Investment Tax Credit for the eligible property purchased. However, if a company itself is purchased and the purchaser continues the operation as before, then the purchaser may not take new ITC on the purchase and the Carry forward ITC of the purchased company, if any, is reduced to zero.)
  • Assessor Testimony in Article 7 Proceedings
    S.5383-C (Rath) / A.7956-C (Harenberg, Ramierez, et al.) Support.
    (1998 TBC Legislative Program)
    The legislation would allow the calling and deposition of the assessor that entered the assessment on a tax roll as an adverse witness by petitioners in Article 7 certiorari proceedings and allow the question as to how the assessment was arrived at. The petitioner would have the right to review the documentation, if any, used by the assessor in arriving at the assessment. (The starting point for all certiorari proceedings is the assessed value placed on a parcel by the town/city/village assessor. At present, litigators for municipalities object to petitioners calling assessors to the stand to testify in a certiorari proceeding.)
  • Repeal of Sales Ratio Studies as Evidence in Certiorari Proceedings
    S.7679 (Rules) Oppose.
    Denies property owners the right to introduce sales ratio studies as evidence of inequality of assessment in certiorari proceedings involving taxpayers in Nassau County and New York City.
  • Prevention of Newly-created Taxation under Electricity Competition
    S.7535 (Stafford) / A.10955 (Rules at request of Farrell) Support.
    (1998 TBC Legislative Program)
    Article 9 would be amended to: (1) limit application of the Dividends Tax to its current application of dividends to shareholders (as opposed to subsidiary to parent holding company) and (2) limit application of the Section 186 Utility Gross Receipts Tax to sales other than sales for resale. (The introduction of competition in the sale of electricity requires a breakup and restructuring of the utility industry. Under this PSC-required restructuring, separate entities will be producing and transmitting electricity. Article 9 -- the Dividends Tax and the Section 186 Utility Gross Receipts Tax -- was written in the context of the then-existent monopolistic, vertically integrated electricity industry. Absent amendment of the Tax Law, additional double tax revenue will occur when asset values are transferred between the books of what-had-been one utility entity (Dividends Tax) and ownership of electricity changes hands prior to, but, for subsequent, resale to New York customers.)

    S.7369 (Seward) / A.10845 (Rules at request of Farrell, et al.) Support.
    (1998 TBC Legislative Program)
    Eliminates the Section 186 Utility Gross Receipts Tax on the sale of electricity for the purpose of resale within New York.

    S.7270 (Seward, et al.) / A.10939 (Rules at request of Tonko, et al.) Support.
    (1998 TBC Legislative Program)
    Exempts electric corporations that are regulated pursuant to the Public Service Law from the privilege tax on the importation of gas services for consumption, and exempts gas service used to generate electricity for sale from such tax.

  • Homestead Rollback/IDA PILOTs
    A.11141 (Rules at request of Diaz) Support.
    (1998 TBC Legislative Program)
    Caps the disparity between the Homestead and non-Homestead tax rates at seventy-five percent. Also, jurisdictions that already exceed the seventy-five percent differential would reduce the ratio of the prior year's non-Homestead tax rate to the prior year's Homestead tax rate by at least ten percent each year. In addition, Industrial Development Authority PILOTs (Payments In Lieu Of Taxation) would be treated as non-Homestead tax receipts.
  • IDA PILOTs
    S.7490 (Rath) / A.10909 (Rules at request of Schimminger) Support.
    Allows assessing units the option to treat Industrial Development Authority PILOTs as non-Homestead tax receipts.

EDUCATION AND JOB TRAINING

Bills Not Enacted:

  • Charter Schools
    The Governor's program legislation never got introduced and no alternative legislation was passed in the area.
  • Special Education Funding
    None of the funding changes proposed by the Board of Regents that would have removed fiscal incentives related to placement were passed.

SMALL BUSINESS

Passed Both Houses:

  • Sales Tax Relief for Materialmen
    S.7491-A (Stafford) / A.10908-A (Morelle) Support.
    Eases the financial burden placed on small business materialmen by allowing them to remit their sales tax monies to the state upon receiving payment on materials from builders.

Bills Not Enacted:

  • Medical Savings Account Credit
    S.4556-A (Johnson) / A.8292-A (Robach) Support.
    Encourages greater participation in medical savings accounts by providing a state income tax credit of ten percent of the individual's allowed federal income tax deduction.
  • Security Guard Exclusion
    A.10109 (Schimminger) / S.6741 (Kuhl) Support.
    Excludes proprietary companies, certain retired police officers, and certain peace officers from requirements of security guard act.
  • Year 2000 Tax Credit
    S.6881 (Balboni) / A.9952 (Schimminger) Support.
    Grants a tax credit equal to twenty-five percent of the amount expended in the taxable year to ensure "Year 2000 Compliance". The credit is for the amount expended in the taxable year which commences in 1998, 1999, and 2000. The maximum credit in any single taxable year is five thousand dollars.
  • Tax Deduction for Businesses Surrounding Indian Reservations
    A.11110 (Magee) / S.7211 (Maziarz)
    Provides for at least 75% reduction of taxes on motor fuel, diesel fuel, and cigarettes in areas surrounding Indian Reservations.

FINANCIAL SERVICES

Passed Both Houses:

  • "Wild Card" Banking Extender
    S.7841 (Farley, et al.) / A.11405 (Rules at request of Greene) No position.
    Extends existing legislation for two years and enacts certain changes to provide parity to state-chartered banks, trust companies and thrifts, vis a vis national banks. Authorizes the Banking Board to permit state chartered banks and trust companies to exercise any power, engage in any activity, and enter into any transaction in which a national bank, acting either directly or indirectly, may lawfully already be involved.
     
  • "SBLI" Reform
    S.6519 (Velella, Farley) / A.9888 (Greene, Grannis)
    Enables all remaining savings and insurance banks, upon a two-thirds vote of the bank's trustees and the trustees of the savings bank's life insurance fund, to form a mutual life insurance company and, with the approval of the Superintendent of Insurance, transfer to that mutual life insurance company all remaining insurance business.
  • Banking Development Districts Amendments
    S.7352-B (Farley) / A.10419-A (Lafayette, Greene) Support.
    Allows thrift institutions to participate in the banking development district program. Chapter 204 of the Laws of 1997 authorized the creation of a banking development district program which enables municipalities and the state to offer certain economic development incentives to encourage the establishment of commercial bank branches in areas where there is a demonstrated need for banking services.

Bills Not Enacted:

  • Reform of Mortgage Prepayment Penalties
    A.7620 (Kaufman) / S.4732 (Farley)
    Would revise the laws regarding mortgage prepayment penalties in order to provide consumers with more loan options and to provide state-regulated lenders greater parity with federally-chartered lenders relative to the offering of mortgages with such penalties.
  • Interest Charges on Credit Cards
    S.5116-A (Alesi) / A.8413 (Pheffer)
    S.275-B (Abbate) / A.185-B (Lentol, et al.)
    Would prohibit the application of service charges and annual fees to those credit card holders who pay off their balances in full within the established grace period.

LABOR AND HUMAN RESOURCES

Passed Both Houses:

  • State Funding to Discourage Union Organizing
    S.6328 (Spano) / A.9265 (Nolan)
    Makes it an unfair labor practice and an unlawful employer practice to use state funding to discourage union organizing.

Bills Not Enacted:

  • Mandatory Workplace Violence Employer Programs
    S.5945 (Spano) / A.2666 (Nolan) Oppose.
    Would require employers to develop and implement programs to prevent workplace violence.
  • Punitive Damages
    S.943-A (Abate) / A.462-A (Feldman)
    Allows punitive damages to be awarded in discrimination cases.
  • New York State Mass Layoff/ Plant Closing Act
    S.1975 (Connor) / A.3128 (Nolan)
    Would create a variety of actions by employers who layoff employees or close facilities in New York State.
  • Comparable Worth
    S.7582 (Balboni) / A.9821 (DiNapoli)
    Makes it a discriminatory practice to compensate individuals of different sexes differently for work that is of comparable worth.

INSURANCE

Passed Both Houses:

  • Payroll Cap
    A.11294 (Nolan) / S.7744 (Spano)
    The legislation is a compromise from the old hours worked proposal. The bill sets limits on workers compensation premiums for construction classification employers.

Bills Not Enacted:

  • Mutual Holding Companies
    S.5628 (Velella) / A.7057 (Grannis)
    Allows domestic mutual life insurers to reorganize into domestic stock companies. Makes several provisions which will better enable New York's domestic mutual life insurers to compete for market share.
  • Wrongful Death
    A.4553-A (Weinstein) / S.585-A (Lack)
    Would expand New York's wrongful death statue by authorizing compensation for grief and emotional loss.
  • Prejudgement Interest
    A.610 (Kaufman)
    Would require prejudgement interest in personal injury actions or that would provide for non-economic damages in wrongful death cases.

CONSUMER AFFAIRS

Passed Both Houses:

  • Prohibiting Caller I.D. Blockers
    S.6133-B (Alesi) / A.10694-A (Pheffer)
    Prohibits telemarketers from blocking self-identification on the caller identification device of consumer-recipients of their telephone calls.
  • Waxing License
    S.7396 (Alesi) / A.10393 (Cook)
    Amends the general business law, in relation to the licensing of the appearance enhancement practice of waxing.

Bills Not Enacted:

  • Credit Reporting Restrictions
    S.1597-A (Lack) / A.400-A (Feldman) Oppose.
    Would have comprehensively amended the General Business Law to reinforce the principles of confidentially, accuracy, and relevancy that "underlie" the Fair Credit Reporting Act.
  • Sale of Cigarettes via the Internet
    S.7712 (Fuschillo) / A.11219-A (Klein)
    Prohibits the retail sale of cigarettes via the Internet and the delivery thereof to retail purchases by common on contract.
  • Notice of Warranty Adjustments
    A.11086 (Pheffer) / S.6850 (Alesi)
    Requires automobile manufacturers to provide notice by mail of warranty adjustment policy to any owner affected by such policy, within 90 days of such policy's adoption. It would also require communication of such policy to consumers seeking repairs and provide for reimbursement for consumers who pay for covered repairs.

CONSTRUCTION

Passed Both Houses:

  • Premium Cap - Workers' Compensation Rates
    S.7744 (Spano, et al.) / A.11294 (Nolan)
    This legislation is a compromise from the previous "hours worked" proposal. The legislation requires premiums for construction classification employees (excluding one or two family residential housing) be subject to payroll limitation. The state would be divided into three districts: New York City, Long Island and the five counties immediately north of NYC and the 50 other NYS counties. Class code rates and manual premiums would be based on the experience of all contractors except those insured by the State Fund within each district. For the 4th quarter of 1999 and the first three quarters of 2000, premiums will be calculated based on weekly construction payrolls within each district limited to a maximum of $900 per week plus the difference between actual payrolls and the limited payroll amount. During the following year, only a $900 maximum per employee will be utilized. For policies with rating anniversary dates between Sept. 13, 2001 and Oct. 1, 2002 the maximum will be $800. For policies rated thereafter, the maximum per employee payroll rate used to calculate workers' compensation premiums will be the higher of $750 or the prevailing maximum benefit rate (now $450). Construction employers will be required to submit quarterly reports showing the aggregate hours worked by all employees.
  • No Damage For Delay
    S.6711 (Hannon) / A.10093 (Vitaliano) Support.
    This legislation would require public owners to incorporate clauses within their public contract stating that costs associated with projects delayed by the public owner, be reimbursed to the contractor/subcontractor.
  • Certified Payroll
    S.6400 (Spano) / A.10042 (Nolan) Oppose.
    This bill would require contractors and subcontractors to provide a summary transcript upon the completion of a project specifying the hours and days worked by each workman, laborer or mechanic, the trade or occupation worked and the hourly wage rate paid and the supplements paid or provided to each employee. This reporting requirement is in addition to the existing law, established in 1997, which requires that contractors and subcontractors provide transcripts of their payroll to the department of jurisdiction every thirty days during a project.
  • Sales Tax Relief for Materialmen
    S.7491-A (Stafford) / A.10908-A (Morelle) Support.
    This legislation will allow materialmen to remit sales tax monies to the state when they actually receive payment on materials from builders. Presently, taxes must be collected and remitted to the state on the amount extended as credit to builders at the time of sale of materials.
  • Building Code Comparison Study
    S.7190-A (Leibell) / A.10701-A (Tocci)
    This bill would direct the Secretary of State to perform, oversee, and/or commission a code comparison study between the current New York State Fire Prevention and Building Code and national building, fire, mechanical, plumbing and energy codes. The bill further requires the Secretary of State to issue a report on the study to the Legislature on or before November 15, 1998.

Bills Not Enacted:

  • Prevailing Wage
    S.7390 (Stafford) / A.10713 (Schimminger) Support.
    This legislation would reform the prevailing wage law by providing a mechanism for the notification by contractors to employees of sub-contractors of their rights to receive prevailing wages or supplements. The bill further requires that in order to hold an eligible contractor liable for the sub-contractors failure to pay the appropriate wages or supplements, the employee must provide notice to the contractor within 120 days from the date the payment was obligated to have been paid.
  • Workplace Violence
    S.5945 (Spano) / A.2666 (Nolan) Oppose.
    This legislation would amend the New York State Labor Law by requiring the development and implementation of workplace violence programs for all employers in New York State with over 50 employees.
  • Civil Justice Reform Act
    S.6661 (Volker, et al.) / A.10788 (Morelle, et al.) Support.
    This is a comprehensive and omnibus act that is intended to effect an all encompassing yet fair approach of modification throughout the general provisions of law for the purpose of accomplishing seriously necessary and overdue reform in the various areas of tort law.

CONTRACT PROCUREMENT

Bills Not Enacted:

  • Remanufacturing
    A.10868 (Morelle) / S.7562 (Balboni)
    Creates a preference toward remanufactured goods. It allows for a ten percent cost premium on all remanufactured products and a fifteen percent cost premium if at least fifty percent of the secondary materials utilized in the manufacturing of that product are generated from the waste stream in New York State.

BUSINESS LAW / GENERAL COUNSELS

Passed Both Houses:

  • Electronic Notices to Shareholders
    A.11231 (Vann) / S.7465 (Skelos) Support.
    This legislation permits corporations to give notices of meetings and to receive waivers of notices from shareholders electronically.

Bills Not Enacted:

  • Civil Justice Reform Act of 1998
    A.10788 (Morelle) / S.6661 (Volker) Support.
    This bill contains a comprehensive civil justice reform package.
  • Pre-Judgement Interest
    A.610 (Kaufman) Oppose.
    This legislation provides for pre-judgement interest in personal injury actions.
  • Bereavement damages in Wrongful Death Actions
    A.4389 (Genovesi) Oppose.
    This bill would permit damages for emotional loss and mental anguish in wrongful death actions.
  • Restructuring Unified Court System
    S.4226 (Lack) Support.
    This legislation would extensively restructure the unified court system.

OCCUPATIONAL SAFETY AND HEALTH

Bills Not Enacted:

  • VDTs
    S.4140 (Stavisky) Oppose.
    Would establish work rules work station design standards and other requirements for the use of video display terminals.
  • Safety Professionals License
    S. 4833 (Johnson)
    Establishes requirements for and provides for the licensing of industrial professionals; provides such occupation focuses on the evaluation and control of environmental factors and stresses in the workplace which may cause sickness or impair workers health.
  • Medical Monitoring
    A.6277 (Nolan) Oppose.
    Would require medical surveillance for workers in specific occupations thought to be at risk of occupational diseases.

TRANSPORTATION

Passed Both Houses:

  • Clarifying Changes to the Bridge Inspection Program
    S.6910-A (Johnson) / A.7756-D (Rules at request of Gantt)
    Makes clarifying and technical changes to the definition of a 'licensed professional engineer" and makes necessary changes to the compliance dates to reflect 1998 enactment rather than 1997. Under this legislation, licensed professional engineers are now required to provide the commissioner with certification that ensure's a bridge's safety. As with the original enacting legislation of 1997, this bill requires railroads to develop and submit to the department written bridge inspection procedures. Also, lists the minimum qualifications a bridge inspection technician must possess. Requires annual inspection of bridges and describes the contents of an inspection report. Also requires that railroads maintain inspection files for five years and an annual report be submitted to the Department of Transportation that all bridges have been inspected. Requires immediate notification to the commissioner if a bridge is determined to be unsafe.
  • Diesel Vehicle Emission Tests
    S.5436-A (Marcellino) / A.1619-A (Brodsky) (Governor's Program Bill)
    See Environmental Conservation Section.

STATE ADMINISTRATIVE PROCEDURES ACT

Passed Both Houses:

  • "Consensus Rules"
    S.7325-A (Balboni) / A.5899-A (Ramirez) No Position.
    Repeals the current SAPA procedure for adopting "minor rules," allows agencies to propose what they expect to be non-controversial regulations on an expedited basis. Regulations proposed as a "consensus rule" are subject to full SAPA review if the agency receives any objection to expedited adoption.
  • Telephone Rate Changes
    S.6550-A (Present) / A.11091-A (Rules/Vann) No Position.
    Exempts changes in scheduled telephone rates, rules and regulations of service from SAPA notice and publication requirements, when such changes are proposed by a corporation "that earns in excess of 50 percent of its gross annual intrastate revenues from interexchange services." Other telephone service providers are already exempt from these SAPA requirements

Bills Not Enacted:

  • Access to "Regulatory Data"
    S.6914-A (Rath) / A.10738-A (Tokasz) Support.
    Would have mandated that agencies make public any studies or data on which they have relied to develop or support a regulatory proposal. Passed Assembly only.
    Passed Assembly; Senate Calendar #949.
  • Business Permit Assistance
    S.6889 (Present) (Governor's Program Bill) Support.
    Would have re-established in statute a business permit assistance program within the Governor's Office of Regulatory Reform. Passed Senate; Assembly Governmental Operations Committee.
  • Installment Payments
    S.4989-A (Maziarz) / A.4368-B (Christensen) Support with amendments.
    Would have allowed small businesses to pay permit fees and civil penalties of more than $300 in quarterly installments. Passed Assembly; Senate Calendar #945.
  • Cost-Benefit Assessments
    S.4679-A (Present) / A.6084-A (Christensen) No Position.
    Would have required agencies to explain why their estimates of compliance costs for proposed regulations differ from those presented in public comments. Would also require agencies to identify the incidence and nature of the expected benefits of proposed rules, and the costs/benefits that would be experienced by entities affected by proposed rules. Passed Assembly; Senate Calendar #295.