GBC Reports..., June 25, 2003

Legislative Update 
We promised the Membership in last week's GBC Reports a final update once all the legislative dust had settled. The following is a brief summary of all the things that did and did not happen. In many ways, fortunately, many things did not happen, except for one very important matter - reform of Labor Law 240.

Labor Law 240: As reported last week, no action on this subject or any other tort reform measures occurred. The Assembly did introduce a last-minute bill (A.9029) which would have called for annual reporting and a study of 240 claims and authorized the State Insurance Fund to write contractor liability coverage. Such a proposal is wholly inadequate and underlines the Assembly's belief that this is an insurance problem. This is a tort problem first and foremost. 

Following our policy of persistence, we will move into the next phase of our efforts. Our summer strategy will surely include asking Members to meet with key legislators to press on this subject and try to include it on a fall agenda. In the meantime, whenever you get an opportunity to talk to a legislator make mention of this subject, your disappointment at their inaction and the need for relief. Don't accept any finger pointing. Too many are agreeing with us but blaming others, especially the Assembly Democratic Leadership, for the failure to act responsibly. We need leadership from all parties - Republicans and Democrats alike. 

Prevailing Wages: Four bills have passed both houses and will now go to the Governor for his consideration. One and perhaps another bill are seriously flawed. GBC will seek a veto of the first (S.850 Balboni), which would provide an underpaid worker or his union with the private right of action against your payment bond with treble damages and attorney's fees. This has been kicking around for years, but never passed. This year it saw very late action. A second bill (S.4377-B Vellela), with ambiguous language that may extend prevailing wages to IDAs, also passed late. Another bill on this subject (A.8162) did not pass. 

Two other harmless bills involving funding for enforcement (S.5623) and reform of the Public Work Advisory Board (S.5591) also passed. Other bills in this area, requiring enhanced penalties (A.8704), sign-in/sign-out sheets (A.8180) and clear public access to payrolls (A.8228 and A.8486), passed one house only.

Affirmative Action: Article 15-A of the Executive Law, authorizing M/WBE participation on state construction work, sunsetted this year. Legislation (A.7233-A) to extend its life for another 15 years passed and is now before the Governor. Another bill (A.9057) to require annual reporting on M/WBE activities and other reporting and administrative requirements, similar to what state agencies must do for small business, was passed. 
Liens: A minor bill to extend the life of public liens from six months to one year before renewal was also passed (S.2922).

Economic Development: Intense last-minute negotiations took place on brownfields, ostensibly designed to help with development surrounding polluted parcels, especially in urban areas. The bill passed the Assembly (A.9120). It did not pass the Senate, but Senator Bruno has promised to pass it in the fall. The Business Council, which followed this closely, termed the bill "disappointing" in its detail. 

Legislation to promote DestiNY in Syracuse and the Albany Convention Center did not pass (A.5593). Neither did legislation to increase the borrowing threshold from $20 to $50 million for civic facilities financed by IDAs (S.2960). The Assembly Speaker introduced a bill (A.9021) to reform Empire Zones, but that also died.

Miscellaneous Items: Four other bills of construction interest passed only one house. A bill to regulate construction noise on SUNY projects died in the Assembly (S.334-A). A bill to mandate that all employees on public work pass a 10-hour OSHA training course passed the Assembly only (A.8164). A bill to change the rules surrounding divisible loads for trucking that was favored by many in the construction industry also died after passing the Senate (S.2974A). Finally, a bill to study and perhaps develop mold regulations (S.896-A) also passed just the Senate. 

The 2003 legislative session was one where little was done after the acrimonious budget battle. Often for the GBC and its Members, the fewer bills that pass the better. Except for the Labor Law 240 issue, that was true this year. 


Workers' Comp Rates Go to a Public Hearing
The New York Compensation Rating Board continues to push for an 11% increase in workers' compensation rates. The Insurance Superintendent has informally rejected the increase and tried to encourage a negligible increase, to no avail. 

There will be a public hearing on July 3rd on the issue and the Insurance Superintendent will then have to make formal decisions on the rate submission. What will happen after that is unclear. New rates historically go into effect on renewals on and after October 1st. 


OSHA Semiannual Regulatory Agenda
The Department of Labor recently announced its semiannual regulatory agenda. Twice a year, the Department selects regulations for review or development during the coming year. Two of their selections are of special interest.

The general industry standard protecting employees who enter confined spaces does not apply to the construction industry. In discussions with the United Steel Workers of America, OSHA agreed to issue a proposed rule next year to extend confined-space protection to construction workers appropriate to their work environment. 

In 1983, OSHA issued a health standard mandating a comprehensive hearing conservation program for noise-exposed workers in general industry, but no rule was promulgated to cover construction industry workers. Several recent studies have shown that many construction workers experience work-related hearing loss. OSHA has published an advance notice of proposed rulemaking to gather information on the problem. The agency is reviewing comments received to determine the appropriate course of action.


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