GBC Reports..., May 14, 2003

Contact Your Legislator Again on 240
The Legislature will probably recess for the summer, if not the year, by late June. The time for action on reform to Labor Law 240 is short. We ask Members to call State Senators and Assembly Members, and then follow up your calls with letters demanding action soon. GBC is working in coalition with many other groups throughout the State. The insurance crisis and 240 lawsuit abuse has not lessened. Grassroots work can make a difference. 

We urge you to first call your representatives, then write a follow-up letter using the simple sample letter below as a model. Personalizing it with your own modifications is best. Personalized letters are more often read and taken seriously. 

You can find phone numbers, regular mail and e-mail addresses for the Assembly at www.assembly.state.ny.us, and for the Senate at www.senate.state.ny.us. Both websites have sections where you can type in your zip code and find your representatives' names, if you don't already know them. 

We urge you to act quickly. 

Re: Labor Law 240/241 Reform - S.1710 Volker/A.7213 (Morelle et al.)
Dear (Senator ___ , Assembly Member ___ )

(Your construction firm's name) has been in business in New York State for (?) years. Never in our history have we faced a liability and insurance crisis like we have now. We need relief now, before this session of the Legislature ends in June. 

You've heard the facts from a broad cross-section of the construction industry, large and small, upstate and downstate, minority and majority. Never before have all segments of the construction industry in all corners of the state been of one voice. 

Insurance costs are skyrocketing. The cost of premiums and claims far exceed those in neighboring and competing states. Some contractors have inadequate or no coverage. Some are closing their doors. Construction consumers, including the public, are suffering huge cost increases. Insurance carriers have left the New York market in droves. Few are left. Most carriers left in the market are unlicensed.

Construction workers need protection. They should have the right to sue if they are injured because of another's negligence. But contractors should also have the right to defend themselves if they have done all they can to train, equip and manage to ensure the worker's safety. Under the current provisions of Labor Law 240 and 241 that is not possible. That is unfair. That is why we have such a crisis. New York is the only state with such an unfair law.
S.1710/A.7213 will allow the worker to recover if the contractor has not been safe or has been negligent. It will also allow the contractor to defend himself if the worker has been unsafe and contributed to the cause of the accident despite the best efforts of the contractor.

Act now. Tell your leaders we only seek to defend ourselves if we're safe. Nothing more. 

Sincerely, 
(Your name and title)


State Budget Update - Will the Vetoes be Overridden?
There is no doubt the Governor will veto significant parts of the state budget the Legislature passed ten days ago, and there is no doubt the Assembly Democrats will move quickly to override them since they control 103 votes in the chamber, more than the two-thirds required. The interesting question will be in the Senate. From the comments made by Senate Majority Leader Joe Bruno at a small event GBC attended hosted by Couch White, our Legislative Counsel, it appears there is a good chance the Senate will also override. These things have a way of taking different turns at the eleventh hour, so stay tuned. 

Little in the budget impacts construction issues. The real issues revolve around economic, business and tax climate. There is no tort reform or mandate relief help. Hopefully, that will come later. There are some reports that the State University Capital appropriations have been cut significantly and may impact future years' levels of work. We shall see. The key factor here is the impact of all this partisanship on other issues for the remainder of the session ending in June. If the waters have been too poisoned, solutions to other important issues may be impacted. 


Go, Funny Cide!
We told you in the May 1st GBC Reports that GBC Member Harold Cring of Watertown had a part interest in a horse in the Kentucky Derby. Well, the rest is history. The local OTB parlors in Albany actually ran out of cash for the winners. We hope you were one. If not, there will be another chance in the Preakness this Saturday and, who knows, maybe the Belmont in June. As they say - "Only in New York." Congratulations, Harold! 


Legislature Clarifies Buffalo School Issues
The New York State Legislature last week delivered to the Governor a piece of legislation that will clarify some funding issues that had been holding up the financing for the Buffalo School construction program being done through the Erie County IDA. These changes apply to the first 11 projects only. In addition to that, the legislation clarifies some of the procurement issues surrounding the program. Those clarifications include requirements for procurement by the "program manager" that is a competitive process which must provide for evaluation criteria including maximum value at the lowest cost, experience and ability to meet the M/WBE goals. Bid openings are to be conducted in the presence of "an independent construction services monitor." Afterwards, the program manager is to provide a bid analysis to the JSC (Joint Schools Construction) Board. The JSC Board will, in turn, make that analysis available to any interested bidder who requests it. The Governor is expected to sign the bill soon. 


OSHA Announces Crane and Derrick Standard 
OSHA will establish a Crane and Derrick Negotiated Rulemaking Advisory Committee under the Negotiated Rulemaking Act and the Federal Advisory Committee Act. The newly established committee will negotiate issues associated with the development of a proposed revision of the existing construction safety standards for cranes and derricks.

Nine AGC members were among the 20 applicants chosen of the 55 names submitted to participate on the committee. "AGC is proud to have such a wide range of members nominated to serve on this new rulemaking committee. If all stakeholders in the negotiated rulemaking process have the interest of the industry at heart and work fairly together, then good results will occur," said Stephen E. Sandherr, AGC CEO.


Welcome New Members!
We're pleased to welcome the following new General Contractor Members to the GBC:
HLS Builders Corp., Baldwin. Represented by Henry Landsman, President.
Marco Martelli Associates, Inc., New Rochelle. Represented by Marco Martelli, President.


AGC Building Division to Meet at Lake George
The AGC Building Division summer meetings have been scheduled for June 25-28, 2003 at the Sagamore Resort at Bolton Landing, New York. Some excellent sessions are planned for this meeting and all are encouraged to attend. Among the topics to be covered are e-commerce and technology, qualifications-based selection, school construction, and updates on construction owner organizations. In addition, representatives of Intel, Johnson & Johnson and Target will provide a presentation on reverse auction bidding during an open session of the Private Industry Advisory Council. If you have any questions about the meeting or would like to attend, please check the AGC website (www.agc.com) for more information and registration info.


Audio Seminar on Best Practices 
AGC is excited to announce an excellent learning opportunity for your entire office. They are working with the National Association of State Facilities Administrators (NASFA) and the Society for Marketing Professional Services (SMPS) to present a unique distance education audio conference, CM/GC Best Practices for Contractors and Public Owners. The program takes place Tuesday, June 3 from 1:00-2:15 p.m Eastern time. 

The conference will feature interviews, listener questions and interactive polling. Before the program, each paying participant will receive the new AGC/NASFA book CM/GC Guidelines for Public Owners outlining the CM/GC process. Every contractor or public owner involved or considering alternative project delivery should have this guide to best practices. 

Contractors will learn the most important points for educating owners about CM/GC, including planning, RFQs, RFPs, assembling teams, interviewing, evaluation and selection, contract performance, and services during construction. 

The registration fee, which includes participation for an entire site on one phone line, is $129 for AGC members and $168 for non-members. The deadline for registration and payment is Friday, May 30, 2003. For more information and to register please contact Comolita Stallings at the AGC by telephone at 703/837-5408; by fax at 703/837-5406 or by e-mail at stallinc@agc.org. 


House Passes Tax Act 
In a move to create jobs and give tax relief to Americans, the House of Representatives recently approved H.R. 2, the Jobs and Growth Reconciliation Tax Act of 2003, by a vote of 222-203. It contains some of the following provisions: Increases bonus depreciation from 30% to 50% and extends through December 31, 2005. For 2003 through 2007, increases the amount small businesses can expense (immediately deduct) from $25,000 to $100,000. Increases definition of small business from $200,000 of capital purchases to $400,000. Provisions are indexed for inflation. Extends the 5-year net operating loss carryback for three years and holds taxpayers harmless for AMT. Reduces the tax rate on dividends and capital gains to 5% for taxpayers in the lowest tax brackets and to 15% for other taxpayers.

Specific to the construction industry, it increases expensing (immediate write-offs) for equipment bought by small firms. Currently, firms buying no more than $200,000 of equipment in a taxable year can expense $25,000 of it. The Senate bill still awaiting a decision would raise those amounts to $325,000 and $75,000; the House bill to $400,000 and $100,000. In addition, the House bill allows all firms to expense 50% of equipment purchases through 2005 in place of the current 30% "bonus depreciation" that expires September 11, 2004. The House bill helps firms with net operating losses (NOLs) in 2003-05 by allowing them to carry back NOLs against profits in five prior years, vs. two under current law and one in the President's plan. The House bill would cut the top tax rate on dividends and capital gains (for U.S.-owned firms only) to 15%; the Senate bill would exclude $500 of dividends from individual tax, plus 10% (20% after 2006) of any additional dividends. 

AGC is active in helping to develop the legislation.


OSHA Courses at College
GBC Director of Safety & Health Services, "Professor" Jim Redmond has been busy lately teaching college students. He gave OSHA 10 Hour Courses at SUNY Delhi and Monroe Community College. Over 80 students received training.


Congrats, New Dads!
The GBC family continues to expand. In the past few months, staffers Dennis Kiefer, Brendan Manning and Bill Howard all became fathers for the second time. A daughter was born to the Howards, and sons to the Kiefers and the Mannings. Congratulations!


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