GBC Reports..., January 23, 2003

NLRB Questions Legality of NY Bill on State Funds and Union Organizing
To add to an article from GBC Reports, October 31, 2002, the National Labor Relations Board has officially made an inquiry into the legality of Chapter 601 (State Funds/Union Organizing, A.11784-A) of the New York State Law. The law, signed by the Governor in the fall of 2002, prohibits the use of State funds and facilities to assist, promote or deter union organizing. The Business Council of NYS has authored a thank-you letter to Arthur Rosenfeld, General Counsel for the NLRB, for their inquiry, stating that they are officially requesting a Nash-Finch injunction declaring the NY statue to be preempted by the National Labor Relations Act. While this ill-conceived law has taken effect, there are no rules available yet. GBC will keep you informed on any future changes. 


AGC Hears from Treasury on Economic Plan
AGC of America had the opportunity to hear directly from Treasury Department officials regarding the President's Economic Stimulus package. The center of the plan would eliminate taxation of C corporation dividends to individual shareholders, a tax handicap that usually forces companies to retain cash to avoid the double tax on dividends. This change would dramatically benefit roughly 60% of the AGC of America membership. This would give C corporations greater freedom to reallocate their capital resources in the best interest of the company and its shareholders. Double taxation of dividends places C corporations at a tax disadvantage, compared with S corporations and sole proprietorships. 

It is important to note that as part of the President's plan he is calling for the acceleration of lower individual income tax rates and this would greatly benefit S corporations. We will watch to see how things unfold. 


Permanent Death Tax Elimination Bill Introduced
On January 7, Rep. Jennifer Dunn (R-WA) and six other members of the House Ways and Means Committee introduced a bill that would make permanent the death tax elimination that was called for in the Economic Growth and Tax Relief Reconciliation Act of 2001. AGC will work closely with Rep. Dunn to gain support for the bill and will keep us updated on its status.


Directory Changes - Last Chance!
The 2003 GBC Membership Directory will go to the printer next week, so this is your last chance to make any changes to your listing. They must be received no later than January 28. Contact Pam at GBC, 518-869-2207.


Business Council Unveils Legislative Agenda
The Business Council of NYS recently unveiled its legislative agenda for 2003. The overall agenda focuses on six key priorities that will help propel New York out of its economic slump: 
1) The State must control spending and not increase taxes. 
2) The State must strengthen the foundations of growth. This involves generating more electrical energy, adopting a single sales factor for corporate taxes, building NY's university research base and targeting education spending where it is needed the most. 
3) The State must get a grip on healthcare costs. Healthcare alone is putting a major strain on the budgets of New York's governments and businesses. The Council is urging the state to set a goal of cutting overall healthcare costs by ten percent. 
4) The State must cut the cost of providing jobs by reforming workers' compensation. 
5) The State must revive upstate cities by offering incentives for attracting new immigrants and enacting brownfield reform. 
6) The local taxpayer needs relief. To ease the nation's highest local tax burden, the Council suggests that the state should take over the local share of Medicaid costs over three to five years with counties then passing along the savings to taxpayers. 

On a construction note, the Council has made reform of Labor Law 240/241 its number one priority and believes other tort reforms are important also for an improved business climate. 


GBC Insurance Survey 
In December, GBC sent out a 240/241 Insurance Survey. Last week we sent out a second request. To date we have received responses from 58 Members. As suspected, every response includes small insurance premium increases in 2000 and much larger percentage increases in 2001-2002. These responses will give us the fuel needed to help tackle the 240/241 liability issue head on with the Governor and the Legislature. It is important you respond. 

On another note, NYS Superintendent of Insurance Greg Serio has sent a questionnaire to insurance companies throughout the state requesting detailed information on the direct premium written and policies in force under all contractors' liability classifications. This is to include information regarding recent or planned revisions to the levels of policies written. We will keep you updated as to the response seen from the Department.


Governor Invites Business Council Board to Early Budget Briefing
The Governor will unveil his proposed State budget on January 29th. Underlining the importance of business community support for a budget that will be difficult, but apparently business community-sensitive, the Governor briefed the Board of Directors of the Business Council on its details in a special meeting in the State Capitol one week prior to public release. 

Two GBC Members, Don Led Duke of BBL Construction Services (Albany) and Tom Judson of The Pike Company (Rochester) are on the Board and were invited to attend. 


Reminder - Private Sector Payment Law Takes Effect
Members should be reminded that the new private sector payment law took effect on January 13, 2003 for all contracts entered into on or after that date. GBC is close to finishing its guidelines on this new law after our series of seminars last fall. Interim information is available for those who need it. 


"Static" and Pumping Gas Present Real Hazards
Bob Renkes of Petroleum Equipment Institute is working on a campaign to try to make people aware of fires as a result of static at gas pumps. His company has researched 150 cases of these fires. The results are very surprising:

• Almost all cases involved the person getting back in their vehicle while the nozzle was still pumping gas. When they went back to pull the nozzle out, the fire started as a result of static.
• Most had on rubber-soled shoes.
• Out of 150 cases, almost all were women. Most men never get back in their vehicles until completely finished. This is why they are seldom involved in these types of fires.
• Don't ever use cell phones when pumping gas.
• It is the vapors that come out of the gas that cause the fire, when connected with static charges.
• There were 29 fires where the vehicle was re-entered and the nozzle was touched during refueling. Some resulted in extensive damage to the vehicle, the station, and to the customer. The cars involved were a variety of makes and models. 
• Seventeen fires occurred before, during or immediately after the gas cap was removed and before fueling began.

Renkes stresses to NEVER get back into your vehicle while filling it with gas. If you absolutely have to get in your vehicle while the gas is pumping, make sure you get out and close the door, touching the metal, before you pull the nozzle out. This way static from your body will be discharged before you remove the nozzle. 

For additional information, go to www.pei.org.


In Memoriam
James Ripic, President of GBC Member Andrew Mancini Associates, Inc. in Binghamton passed away recently. We were remiss in not noting it sooner. Mancini has been a long-time member of the GBC and Jim was a 33-year veteran of the industry. Our condolences to his family. As is our tradition, GBC will make a donation in Jim's memory to the Paul B. Richards Memorial Scholarship Fund.


Welcome New Members!
We're pleased to welcome the following new Associate Members:
Mercury Web Solutions, Albany. Represented by Kim Buckley, Internet Business Developer.
Sacks Montgomery, P.C., New York City. Represented by Stephen A. Stallings, Partner.


Education & Safety Training Schedule
GBC's Education & Safety Training Schedule for the first half of 2003 was sent to all Members by fax or e-mail a few days ago. If you haven't received your copy, please let us know and we'll send another.

Please take a few minutes to peruse the schedule. We have a number of important and informative programs coming up on topics like:

• Labor Law 240
• Mold
• Storm Water Permit Requirements
• Delivery Systems
• An Alternative to Bonding Your Sub

Several safety programs will be held on these topics:

• Fall Protection
• Scaffolds
• Handling OSHA Inspections
• Steel Erection
• And our always-popular OSHA 10 Hour course.

Two FREE day-long programs will be held on the Steel Erection Standard in Buffalo and Westchester in early March. 

As always, you will receive individual registration forms for the programs held in your geographic area. Registration forms for all programs can be found on the Calendar page of our website about one month in advance of the program.


Upcoming Events
Please check the GBC Calendar for a complete list of upcoming events, with links to registration forms.