Uu 2016 Policy Agenda

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    2016Policy

    Agenda

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    The Empire State Chapterof Associated Builders andContractors is the New YorkChapter of ABC, a nationalconstruction trade associationdevoted to merit contractors.The Empire State Chapterserves close to 400 membersfrom our central ofice in East

    Syracuse, and from branch

    ofices in Albany, Buffalo,Rochester and Long Island/Metro NYC.

    The Greater BinghamtonChamber of Commerceserves as the premier resource

    for business developmentin the Greater Binghamtonregion. Its aim is to supportthe existing local businesscommunity and the attractionof new businesses to theregion through member-driven programs and services,the development of strategiccommunity partnerships andeffective political advocacy.

    Unshackle Upstate is a non-partisan, pro-taxpayer, pro-economic growth, educationand advocacy coalition madeup of business and tradeorganizations from acrossUpstate New York. The

    organization has advocatedfor controlling state spending,holding the line on taxes,eliminating unnecessaryand expensive mandates andlimiting the growth of statedebt. Our leadership team iscomprised of:

    The Rochester Business Alliance / Greater RochesterChamber of Commerce, afounding member of UnshackleUpstate, is the regionalchamber of commerce forthe nine-county Rochesterregion, which includes Monroe,

    Genesee, Livingston, Ontario,Orleans, Seneca, Wayne,Wyoming and Yates counties.The RBA / GRCC providesinformation, advocacy,human resource services andnetworking to help FingerLakes employers grow.

    The Buffalo-NiagaraPartnership, a foundingmember of Unshackle Upstate,

    is the privately-fundedeconomic developmentorganization and regionalchamber of commerce for theBuffalo-Niagara Region. ThePartnership is comprisedof thousands of employermembers, including dozensof major investors who arecommitted to growing privateinvestment and jobs in theBuffalo-Niagara region.

    The North Country Chamberof Commerce is a regionalchamber of commerce servingClinton, Essex, Franklin,Hamilton and northern WarrenCounties in New York Stateand southern Quebec. Withmore than 4,000 members,it is the largest business andeconomic development alliancein northern New York and oneof the ive largest chambers in

    the state.

    A STRONG VOICE FOR

    UPSTATE NEW YORK

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    In 2015, the Tax Foundation,a nonpartisan tax researchgroup, rated New York’s“business tax climate” 49th inthe nation, based on our taxburden, cost of doing businessand regulatory environment;Forbes magazine ranked NewYork 50th in the nation fortaxes. Rankings like theseencapsulate how difficult it is

    to own and operate a businessin New York and underscorewhy the Upstate economy haslagged so far behind the nationin job growth since the GreatRecession of the late 2000’s.

    Our high taxes and onerousregulatory structure preventsall of New York – especially

    Upstate – from competing ona national and global scale.This further exacerbates adestructive cycle of populationdecline, deindustrialization,and dwindling local propertytax bases which lead toblighted neighborhoods andfiscally stressed municipalgovernments.

    Widespread, dynamic andsustained economic growth isthe cure to these ills. And forthat to occur, New York needsto continue to reform the wayour state government operatesand relieve the burdensit places on employers,taxpayers, homeowners andlocal governments.

    Say NO toNew York’sUnprecedentedProposal toIncrease itsMinimum Wage67%

    The Upstate economy is drivenby small business, agricultureand tourism. These threesectors are placed squarely inthe crosshairs should the NewYork State minimum wage beincreased to an unprecedented$15 per hour. This massivemandated wage hike amountsto a 67% increase in labor

    costs for employers who willbe left with very few and verybad options if this proposaladvances.

    American Action Forum, usingthree different methodologiesincluding one employed

    by the highly respectednonpartisan CongressionalBudget Office, predicted thatjob losses across the statecould range from 200,000to 600,000. Predictably, thenegative impacts wouldbe disproportionately feltUpstate, where our economyis less suited to absorb such astaggering increase.

    Even economists who favorincreasing the minimum wagebalk at $15 per hour, arguingthat when the mandatedminimum wage reaches50-60 percent of a giveneconomy’s median wage joblosses become likely. Upstate’smedian wage is currently

    $16.25 per hour.

    Should this short sighted andmisguided proposal reachfruition, many businesses willbe forced to increase prices ofthe goods and services theyoffer. The cost of agriculture

    COMPETING GLOBALLY

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    produce and manufacturedfoods are estimated to increaseup to 30%.

    Many small businesses andnot-for-profit service providersthat are simply unable to raiseprices and remain competitive,will have to drastically scale

    back their operations or closetheir doors for good.

    Unshackle Upstate, like thevast majority of hardworkingpeople who call New York

    home, wants to see everyonemake more money and succeedas part of a strong, marketdriven economy, but simplyput, saddling the employersthat sustain our economywith an unprecedented 67%wage mandate will not createprosperity: It will crush it.

    WorkforceDevelopment 

    Across the state, tens ofthousands of so-called “middleskills” jobs remain unfilled.Survey’s conducted by MonroeCommunity College estimate

    that as many as 20,000 jobsremain “chronically” unfilled inthe Finger Lakes region alone,many of which are in “middle-skill” fields like computersystems, health care, tradesand manufacturing. These jobsoften require more than a highschool diploma but less thana college degree and pay goodsalaries and wages.

    Rather than trying to mandateprosperity through arbitrarilyincreasing the minimum wageto $15 per hour, the State’sshort term and long termjob creation and economicgoals would be better servedby strategically investingin workforce development

    programs to fill the jobs wehave and meet the needs ofUpstate employers.

    New York State shouldconduct a thorough reviewof all current workforcedevelopment efforts andinitiatives operated byboth private and public

    sector entities to determinewhat efforts are producingemployees and candidateswith the in-demand skills andexperience employers areseeking.

    Additional funding andrevenue streams should also beexplored to support effectiveand efficient programs.

    Upstate New York

    could lose between64,500 to 185,500

     jobs under a $15minimum wage.

    Source: The Empire Center,

    www.empirecenter.org/minwage

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    Take Advantage ofUpstate’s UniqueGeography toBolster Our Rolein the Global

    EconomyFrom Buffalo to the Northernreaches of the Adirondacks,many of Upstate’s majorpopulation centers enjoyextremely close proximity toa cross-border market withclose to 14 million people andhundreds of billions of dollarsin economic activity stemmingfrom Toronto, Montreal,Ottawa, Hamilton and St.Catherine’s.

    Upstate’s border with Canadaprovides unlimited potentialas in international gateway forprivate sector job creation andeconomic opportunities.Unshackle Upstate strongly

    supports existing efforts likeGlobal NY and believes ingrowing Upstate’s economicpartnership with neighboringOntario and Quebec to improvecross-border commerce andtourism.

    Design-Build

    Make permanent the projectdelivery method knownas Design-Build to finishconstruction projects faster,more efficiently and at lowercost, and expand its availabilityto all counties, cities, townsand villages with populationsabove 50,000.

    Prevailing Wage

    Forcing a “prevailing wage” onprivate construction projectsstunts development andimpedes economic growth.Most particularly, efforts at

    attaching prevailing or “living”wage requirements to privateconstruction projects/IDAsupported projects can onlyhinder goals to rebuild NewYork, especially in Upstatecities.

    A recent study by ColumbiaUniversity’s Center for UrbanReal Estate (CURE) finds that

    the state’s prevailing wagerates are costing New Yorkersmillions of dollars every year.

    Project Labor Agreements

    Mandating regionallynegotiated PLA’s should alsobe rejected. Replacing oneill-advised anti-businessmandate (the aforementioned“prevailing wage”) withanother (PLAs) is not soundpublic policy. PLA’s increasethe cost of constructionprojects an estimated 18-30%.In 2015, adding a PLA to theconstruction of a new exit(122) off of State Route 17 cost

    state taxpayers an additional$6 million dollars on this loneproject.

    We support “The PublicConstruction Savings PilotAct,” legislation that wouldallow contractors to bid onpublic works projects whether

    they employ a PLA or not.This would also in turn savetaxpayers millions.

    Paid Family Leave

    A “one size fits all” mandate of

    this nature does not adequatelyfactor in the wide range ofemployment situations thatexist in our modern, mobileand information-basedeconomy. Legislation that doesnot provide any flexibilityfor employers to craft theirown time-off policies basedon the needs of the company

    and its personnel will notwork, particularly for smallbusinesses.

    Further, we have no idea whata paid family leave programwill cost the state’s employersto implement. Both the Senateand Assembly sponsors saythat the fiscal impact of theirproposal is “to be determined.”

    State lawmakers cannot havean intelligent conversationabout a paid family leaveproposal until they know all ofthe costs and administrativeburdens that it would imposeon the state’s employers.

    We also need to know howemployers might have to adjustother employee benefits inorder to implement paid familyleave.

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    Fiscal Control andReform For NewYork’s Major CostDrivers: Educationand Medicaid

    Education and Medicaid

    spending – which make upnearly half of the annual statebudget – have been cappedin recent years. We supportcontinuing these spendingrestraints and the explorationand implementation ofadditional recurring savings infuture years.

    Reforming Medicaid 

    2011’s property tax cap wasan historic achievement inNew York State, finally puttinga meaningful control on ourhighest-in-the-nation-propertytaxes. However, propertytax relief will remain elusiveuntil New York structurallyreforms its system of unfunded

    mandates that saddle localgovernments with tens ofmillions in costs.

    The largest among them isMedicaid, which costs NewYork State taxpayers morethan $1 billion per week .More than the states of Texasand Florida combined.

    County governments – fundedthrough your property taxdollars – pay 25% of thisprice tag with Medicaid oftenaccounting for more than 80%of their annual budgets.

    In recent years, the state hastaken on the responsibility

    of paying the growth in thelocal share of Medicaid, but toreduce the local tax burden,the State should incrementallytake over the remaining sharethat is currently drowning localmunicipal budgets and keepingour tax bills sky high.

    Further, New York is theonly state in the nation that

    requires all optional benefitsavailable through Medicaid beprovided, ballooning New YorkState’s health care costs. Thehealth care needs in MonroeCounty are surely differentthan those of Manhattan andwe believe that local countygovernments should havesome discretion in determining

    what optional benefitsfit the dynamics of theirunique populations, cuttingredundancies and costs.

    Two Percent StateSpending Cap

    For the past four budgets,State government has operated

    under a self-imposed all fundsspending cap that has limitedout-of-control spending andallowed New York to reduceits out-year budget deficits.This self-imposed cap hasintroduced fiscal discipline toAlbany and it should be madestatutory.

    PromoteGovernmentEfficiencies

    Unshackle Upstate supportsstate and local governmentconsolidation efforts andwill work to identify other

    cost saving items for NewYork State. The Spending andGovernment Efficiency (SAGE)Commission issued its finalreport several years ago. TheState should complete thereport’s recommendations andcontinue to identify additionalareas where reform andefficiencies can be realized.

    Oppose NewRedundantBureaucracies

    In 2014, interest groupsacross the state sought tocreate a new state office ofUtility Consumer Advocatein their purported effort to

    REFORMING NEW YORK

    STATE GOVERNMENT

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    combat rising utility costs.Unfortunately, this office wasnot imbued with the requisitepower to actually addresswhat causes our energy andutility bills to be so high –state-imposed taxes, fees andassessments on every single

    utility bill that we pay eachmonth. New Yorkers pay thethird highest electricity pricesin the nation. The first actionto protect energy ratepayersmust be to reduce the taxes,fees and surcharges on ourutility bills, which currentlyaccount for 25 percent to 30percent of a typical bill.

    State-imposed mandates limitthe ability of local governmentsand school districts to provideessential services that drive uplocal taxes. They also preventprivate-sector businesses fromcompeting globally. We supportproposals that will make ourcommunities more affordableby eliminating unfunded

    mandates and promoting jobgrowth through regulatoryreform.

    Let NY Work Agenda

    Unshackle Upstate is a leaderin the Let New York Workcoalition, which includesrepresentatives from thebusiness community, localmunicipal leaders and publiceducation. This group hasidentified the core cost driversfor local governments and theeducation systems that needto be reformed. We continue tourge state leaders to supportthe Let NY Work agenda,

    which will provide relief fromunfunded mandates for localgovernments, school districts,and ultimately taxpayers.

    Wicks Law

    Currently most publicconstruction projects in NewYork are subject to separatebidding requirements. In 2008,Wicks Law was amended thatset an exemption threshold ofjust $500,000 (while New YorkCity receives a threshold of $3million and Long Island andWestchester County receive a athreshold of $1.5 million). The

    Upstate threshold remains fartoo low to generate any savingsto Upstate taxpayers. Wepropose increasing the WicksLaw exemption to a uniform,statewide $10 million.

    Oppose PubliclyFinanced Political

    CampaignsUnshackle Upstate opposes theuse of taxpayer money to fundpolitical campaigns for publicoffice in New York State.New York State already taxestoo much and spends too much.A system of taxpayer-fundedpolitical campaigns would be

    too expensive and create anuneven playing field that wouldbolster the political powerof organized labor. While wesupport efforts to end politicalcorruption, taxpayer-fundedpolitical campaigns will not fixthis problem. It will create new

    opportunities for politicians toabuse public money.

    Unshackle Upstate supportscommon sense reformsof the state’s electionssystem – including strongerenforcement and greatertransparency – that do notrequire the use of taxpayer

    money to fund campaigns.

    SEQR Reform

    The State EnvironmentalQuality Review (SEQR)Process has often been citedas a main impediment in theproject development process,too often being used to stifleeconomic development.SEQR should be reviewedand updated to establish anefficient, predictable and fairenvironmental review process.Transparency in the processshould also be addressed,as well as the inclusion ofdefinitive timelines.

    53%OPPOSE

    37%SUPPORT

    10%

    DON’T KNOW/NO ANSWER

    Voters’ Views On Taxpayer-Funded

    Political Campaigns

    Source: Quinnipiac University Poll, April 17, 2013

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    InfrastructureParity andInvestment 

    In the autumn of 2015,Governor Cuomo and NewYork City Mayor Bill de Blasioannounced an agreement toinject $8.3 billion dollars of

    capital into the beleagueredMetropolitan TransportationAuthority (MTA). UnshackleUpstate understands theimportance of an effective andefficient mass transit systemto New York City, and many ofthe subway cars and bussesemployed by the MTA aremanufactured right here inUpstate.

    However, a well-maintainedand well-financed networkof roads, bridges, rail andairports is equally essentialto the economy, public safetyand quality of life for nearly 8million Upstate residents. Wecall on our leaders in Albany

    to stand up for Upstate too byequitably investing in Upstate’stransportation infrastructure,as has been agreed to forDownstate.

    For years our leaders in Albanyunderstood the importanceof equitable infrastructureinvestment and funded theDepartment of Transportation

    (DOT) and the MTA capitalprograms with relativelyparity. That changed in 2009.Under a one-party, downstatedominated legislature,Governor Paterson, the Senateand Assembly enacted a 5-yearcapital plan for the MTAbut left Upstate roads andbridges without a long term

    commitment.

    Since 2009, investmentin downstate transit hassurpassed investment inUpstate roads and bridgesby nearly $6 billion. This hasresulted in the continueddeterioration of theinfrastructure network we

    rely on every day. 60 percentof New York State’s roadsare currently in need ofrepair or reconstruction. Ourinfrastructure, our economy,needs investment now.

    We also believe the DedicatedBridge and Highway TrustFund should be strengthenedto ensure the tax dollars

    collected through gas andtransportation taxes areinvested in road and bridgemaintenance and repair.

    RedevelopingUpstate’s Cities

    Many Upstate communities’

    economic future and physicalredevelopment has beenstifled by sins of the past. Ourindustrial heritage – whichonce drove our economy – hasleft parcels and properties thatsimply cannot be cleaned-up,redeveloped and returned tothe tax rolls without fiscalincentives. Last year we

    ECONOMIC DEVELOPMENT

    A well-maintained and well-financed

    network of roads, bridges, rail and

    airports is equally essential to the

    economy, public safety and quality

    of life for nearly 8 million Upstate

    residents.

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    TAX REFORM

    achieved a major victory byextending the BrownfieldsRedevelopment Programfor ten years. This incentiveprogram has proven verysuccessful in Upstate citieslike Buffalo and Rochesterin redeveloping long vacant

    environmentally damagedproperties into communityassets.

    We support similar effortsto develop tax credits toincentivize the redevelopmentand remediation of propertieswith significant quantitiesof asbestos, lead paint and

    mold. This would improvethe environmental qualityof Upstate communities andcontinue the momentum ofredevelopment we have seenacross our urban centers.

    Asbestos abatementnotification fees should alsobe reduced from their currentlevel to incentivize the safe

    and efficient abatement ofasbestos-present properties.

    Maintain andEnhance REDCs

    Since 2011, the RegionalEconomic DevelopmentCouncil program has redefinedand reinvigorated how New

    York State distributes vitaleconomic developmentaid. The REDCs focus theeconomic development processat the regional level, takeadvantage of unique assetsand opportunities presents inNew York’s diverse regionaleconomies, and empower localstakeholders.

    Combined with TheBuffalo Billion, the UpstateRevitalization Initiative, andadditional Upstate investmentsin photonics and nano-tech,the REDCs have guided billionsof economic development aidto Upstate. New York Stateshould continue and expandupon this innovative economic

    development model.

    Revisit Natural GasDevelopment in theSouthern Tier

    Last year, New York Statebecame the first state with

    sizeable natural gas resourcesto outlaw the safe extractionand development of thisvaluable economic asset. Thehighly productive drillingprocess known as “fracking”has led to a “shale gasrevolution” across the nationaleconomy, producing jobs andaffordable natural gas.

    New York has made a mistakethat will continue to hold theSouthern Tier and Upstateeconomies back for years.Many states have developedcomprehensive rules andregulations that are sensitiveto both environmental andeconomic concerns. New Yorkshould revisit its decision toban natural gas developmentand remain open minded ondeveloping new technologieslike gelled-propane extraction.

    Relief For SmallBusinesses

    In the past 5-years, theExecutive and the Legislaturehave successfully implementedsome tax reforms that weare proud to have supported

    and assisted with: personalincome tax rates, thecorporate franchise tax,taxes on manufacturers andthe dreadful 18-A energyassessment tax have all beensignificantly reduced.

    These actions have beenessential to some of theeconomic gains New York hasexperienced in recent years,but as evidenced by our recentsecond-to-last ranking in taxclimate by the non-partisanTax Foundation, much workremains before New York is

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    the tax cap has exceededeveryone’s expectations in itseffectiveness, saving Upstateproperty taxpayers over$2 billion while close to 90percent of taxing entities have

    stayed within the strictures ofthe cap. It’s time to make thiseffective control on New York’shighest-in-the-nation propertytaxes permanent.

    Property Tax Relieffor All

    As effective as the Caphas been, it merely limitsthe growth of our alreadyastronomical property taxburden; it does nothing toreduce it. Governor Cuomohas championed and enactedadditional property tax reliefmeasures, commonly referredto as the property tax rebateand the property tax freeze.

    The problem is these effortsmerely subsidize our high localtaxes with state tax money andexclude commercial propertytax owners from any relief.New York State should focuson reforming our expensivepatchwork of unfunded statemandates that keep our

    property taxes high and alsoallow commercial propertyowners to participate in anyfuture property tax reliefefforts.

    Wireless Taxes

    New Yorkers of every stripehave quietly been paying someof the highest wireless taxes inthe nation. State and local taxesaccount for nearly 20% of NewYorkers’ cell and wireless bills.

    Such high excise taxes on

    communication devices thathave become central to ourpersonal lives and successfulbusiness operation shouldbe reduced as part of thebroader tax reform proposalspreviously outlined.

    Ton Mileage Tax

    The Ton Mileage Tax is basedon the specific weight of trucksand is intended to offset wearand tear on roads by chargingfees for miles travelled in thestate.

    This nearly 60 year old levyis applied to vehicles withmaximum weights of at least

    While the aforementioned taxreforms have benefited manyemployers across Upstate, theyunfortunately do not applyand provide no benefit to thetens of thousands of smallbusinesses that file their taxesvia the proprietor(s) personal

    income taxes (PIT).

    To provide long awaited taxrelief to all sectors, UnshackleUpstate believes structural taxreform must apply to the smalland medium-sized businessesthat drive our economy:

    • Make the 2011 PIT tax

    cuts permanent for alltaxpayers;

    • Reduce personal incometax by 10% for soleproprietors and businesseswith net incomes of$500,000 or less. Thisproposal is for businessesestablished as a personalincome tax “pass-through”

    entity like LLCs, LLPsand sub-chapter “S”corporations; and

    • Create a 10% personalincome tax exemption forsmall businesses with lessthan 100 employees.

    Make the Tax Cap

    Permanent 

    2011’s property tax capstands as the state’s signatureeconomic achievement inrecent history. This past year,Unshackle Upstate led theeffort to preserve the tax capand extend it through theend of the decade. We believe

    The 2% property

    tax cap has

    saved Upstate

    taxpayers more

    than $2 billionsince 2011.

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    REFORMING NEW YORK’S

    SUFFOCATING REGULATORY

    BURDEN

    18,000 lbs. operating in NewYork.

    This tax is a barrier tocompetition with neighboringstates and a major reasontrucking operations are movingout of state.

    18-A Energy Assessment 

    In 2009, Unshackle Upstateled the fight to oppose thisburdensome energy tax thatimpacts all ratepayers in NYS

    and is especially detrimental

    to manufacturers. While wewere successful in securingits repeal – effective Marchof 2017 – this onerous fee isstill a major impediment toindustrial growth in the state.We continue to work towardsexpediting its expiration.

    New York State has twoprimary regulatory problems:First, there are too many andthey are too confusing; second,the agencies empowered toenforce these regulations oftenact as prosecutorial entities

    rather than regulatory orcompliance agencies.

    Legislative taskforceshave identified more than2,000 outdated and overlyburdensome regulations thatwarrant review, reform orrepeal. We support continuedefforts on this front andurge action on these specificburdens.

    Workers’Compensation

    Unshackle Upstate hassuccessfully worked with theGovernor and Legislature toenact substantive reforms to

    the State’s Unemploymentand Workers’ Compensationprograms, which improvedeach system, lowered long-term costs for employersand provided much-neededstability.

    However, more workremains to make New Yorkeconomically competitive withother states. New Yorkerscontinue to pay among thehighest workers’ compensationcosts in the nation.

    For every $100 of payroll,employers in New Yorkpay $2.75 in workers’compensation costs, fourthhighest in the nation andnearly 150% above thenational median of $1.85 per$100 of payroll.

    Such high workers’compensation insurance costsplaces Upstate at a competitive

    disadvantage in attracting newinvestment to the region andadds additional cost burdensonto existing employers. NewYork State should:

    Employ Regional

    “Average Weekly Wage”

    Calculations

    When determining an injuredworker’s compensationbenefits, New York Statebases their award on thestatewide “average weeklywage” for a given occupation;a method that ignores the

    stark variations in wages andsalaries that exist across NewYork State.

    This results in injuredworkers Upstate receivinga disproportionate amountof compensation in relationto their relatively low costof living, driving up costs

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    of workers’ compensationinsurance rates for Upstateemployers.

    The average weekly wageshould be calculated based onregional labor and earningsstatistics, not a statewide

    calculation that inflates costs.

    Reform “Schedule Loss of

    Use” Guidelines

    When an employee is injuredand suffers the loss of use ofa specific body part, they areplaced in the state’s scheduledloss of use protocols. While we

    fully believe injured workersshould be justly compensated,the Schedule Loss of Useprotocols in New York reflectoutdated medicine.

    Evaluation guidelinesshould be updated to clarifyapplication and reflect modernmedical advancements.Further, scheduled loss of useawards should more accuratelyreflect actual lost time.

    Expand the Current

    Preferred Provider

    Opt-Out Period from

    30 to 90 Days

    This change will benefit injuredworkers and their employersby reducing administrativecosts for all stakeholders;improving continuity ofmedical treatment; providingexpedited access to medicalproviders, specialists, testing,referrals and treatment; whilereducing loss and restrictedwork days and limiting lengthyand expensive litigation.

    Provide Meaningful

    Timelines For Maximum

    Medical Improvement

    (MMI)

    MMI is the time it takes aninjured worker to achieve

    optimal medical improvementfor a given injury, thustriggering the awarding of afinal capped-benefit, providingresolution for the worker,the employers and medicalprofessionals.

    For decades, this processroutinely took about 2 years,but since 2007 has ballooned

    to take closer to 6 years. Thishas inflated costs and createdan environment of uncertaintyfor all stakeholders.

    New York State shouldreturn to the standard ofdetermining Maximum MedicalImprovement within 2 years ofinjury or start of treatment.

     Apply Nationally-

    Recognized Standards for

    Medical Treatment and

    Impairment Guidelines

    New York State shouldmove to immediately adoptnational standards in thediagnosis, care and treatment

    of injured workers, includingthe American MedicalAssociation Guidelines(AMA) and the AmericanCollege of Occupational andEnvironmental Medicine(ACEOM) treatment protocols.

    New York Should “Do No

    Harm” To Our Already

    Wildly Expensive

    Workers’ Compensation

    Oppose rollback of 2007 cost-savings measures and reject

    new proposals that wouldallow indemnity benefits forincarcerated claimants; createonerous new regulations onindependent medical exams;presume disability based onthe qualification of socialsecurity disability benefitsor empower judges to orderforfeiture of business assets.

    Scaffold Law

    New York’s one of a kind andmore-than-a-century oldScaffold Law increases the costof general liability insuranceon every construction projectin the state, serving as a dragon growth and economicdevelopment. This includes

    public projects like schoolsand bridges; the Scaffold Lawis estimated to cost taxpayers$785 million annually.New York should passlegislation to apply acomparative negligencestandard (liability proportionalto fault) under the ScaffoldLaw in situations where aworker’s injury in caused by afailure to follow safety training,intoxication or during thecommission of a crime.New York should also considerexempting Upstate, where theeconomy and constructiondevelopment continue tostruggle from the late-2000srecession from Scaffold Law’sabsolute standard.

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     AnnualizationReform

    Currently, the New YorkState Department of Laborcalculations annualize privateand public benefits using the

    same method, resulting inexcessive costs to contractorsalready providing benefits totheir employees. We supportlegislation that would utilizethe federal methodology forannualization of benefits underthe Federal Davis Bacon Act,which is more equitable anddoes not penalize employersfor doing both public andprivate work.

    Call Centers

    Bills that requireregulated entities, such astelecommunications companiesand utilities, to providecertain call center servicesto customers from centerslocated within their respectivestate service territories driveup customer costs, whileproviding no benefits to theemployers.

    Oppose ChemicalOver-Regulationand Product Bans

    State laws and regulationslike chemical regulationsand product ban legislationare hindering the state’seconomic recovery, particularlyUpstate, and contributing toits reputation as hostile toprivate business. The chemicalindustry represents almost 10

    percent of total manufacturingemployment in New York State;24 percent of the state’s overallmanufacturing shipments; andmany of these sites are locatedin Upstate.

    Proposed changes and banswould lead to uncertainfutures for 1,400 chemicalmanufacturing employees;forcing companies to complywith another regulatorypromulgation amongan already burdensomepatchwork of state laws.

    VoIP Reform

    We support modernizingand improving the state’stelecommunicationsinfrastructure by eliminatingthe state’s regulatoryauthority over Voice-Over-Internet-Protocol (VoIP)communications. New York

    should encourage investmentin internet based telephonyby eliminating the state’sregulatory authority in thatarea, which has never beenexercised.

    Reject SweepingNew Regulationsof AutomobileDealerships

    A sweeping series of new lawshave been proposed that wouldfundamentally reshape theway car dealerships in NYSoperate, including grantingthe NYS Department ofFinancial Services jurisdictionto regulate the advertisingand marketing materialsof car dealers, and direct

    oversight of auto financing,financing transactions andfinancing departments at autodealerships.

    Reject NewLicensureRegulations

    Targeted atEmployment Agencies

    As is the norm across thecountry, many Upstateemployers rely on employeerecruitment and placementfirms to attract qualifiedemployees and grow their

    The chemical

    industry

    represents almost

    10% of total

    manufacturing

    employment in

    New York State.

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    business. This model of hiringhas proven particular usefulin Upstate communities that

    rely heavily on cross-bordereconomic trade like Buffaloand Plattsburgh.

    We oppose the adoption ofburdensome new licensure andregulatory requirements forthese vital employers.

    HEALTHCARE COSTS

    It’s reported time and againby trade associations andindividual businesses that theirnumber one cost and concernis being able to affordablyprovide health care for theiremployees.

    While federal laws andregulations certainly havea significant impact on therising cost of employer-provided health care, NewYork employers pay some ofthe highest costs in the nationbecause of a burdensome and

    archaic patchwork of taxes,mandates and regulations thatstifle innovation and efficienthealth care delivery.

    Just last year, UnshackleUpstate successfully defeateda proposed new $69 millionstate tax on health plans.

    As spending on specialty

    drugs grows at an alarmingrate, it’s imperative that stategovernment examine healthcare’s true cost drivers andtake action to make our healthcare more affordable for everyNew Yorker.

    Oppose Out ofNetwork HealthCoverage Mandates

    Legislation that would requirehealth insurers to reimburseout-of-network providers atcertain minimum rates willresult in higher insurancecosts for many New Yorkers.We are also concerned thatproposals of this nature willultimately lead to privatehealth insurance becoming lessaffordable, leading employers

    to drop coverage.

    Eliminate the HCRASurcharge onNew York’s HealthCare

    The Health Care ReformAct (HCRA) imposes a strictsurcharge on the cost ofpatient care provided bylicensed health care providers.Businesses have been facingskyrocketing health care costsfor years, making it more andmore difficult for employers toprovide employees with accessto employer sponsored health

    insurance plans.Repealing this surcharge willmake employer-sponsoredhealth insurance plans moreaffordable.

    Health CareQuality and CostContainmentCommission

    In 2007, New York Statecreated the Health CareQuality and Cost Containment

    Commission to reviewall current and proposedmandated health insurancebenefits. This review was toprovide an objective “cost-benefit” analysis beforelegislative action would betaken on specific proposals.

    This commission exists onlyin law, and not in reality. At

    a time when all New Yorkersare grappling with risinghealth care costs, the need forthis commission to fulfill itslegislative charge could not beclearer.

    13

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    REDUCING STATE BORROWING

    While recent actions in Albanyhave resulted in a turn towardsmore responsible fiscalpolicies, debt still remains amajor issue in New York State.According to a 2013 report byState Comptroller:

    • New York State isresponsible for $63.3

    billion in state-fundeddebt, second only toCalifornia’s $96.4 billionand more than 80 percenthigher than New Jersey,which ranks third;

    • The State’s debt per person($3,253) is nearly threetimes the median of allstates, ranking secondnationally;

    • At 5.4 percent, New York’sratio of debt to GSP was 2.1times the national medianand far higher than levels

    in most comparable states;and

    • In 2012, the state wasprojected to spend roughly$1.1 billion to repay prioryears’ borrowing that wasused for budget relief orother non-capital purposes

    Source: Office of New York State

    Comptroller, Dept Impact Study - An

     Anal ysis of New York State’s Debt

    Burden, January 2013

    14

    “I believe inUpstate New

    York and, more

    importantly,

    Upstate New

    Yorkers should

    believe too,because the best

    is yet to be.”

    Source: Governor Andrew Cuomo, Huffington Post, September 1, 2015 

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