Issues in the News

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NFIB/New York State Capitol Update -- June 19, 2008
06/19/2008

Small business scores big win with expanded access to Healthy-NY
The Senate today gave final legislative approval to a bill (S.6385A/A.395A) which will increase access to the state's Healthy-NY program. This move will help small businesses and their workers access affordable, basic health insurance. Presently, a small business is not eligible for Healthy-NY if it has offered health insurance coverage in the previous twelve months. For too many small employers, the rising cost of health insurance has forced them to drop coverage, and present law forces them into limbo for a year. No employer should be forced into that situation. This legislation lifts the "crowd out" provision and increase access to this program for employers and their workers.

This week's vote -- and the Assembly's prior passage of this legislation -- is a major victory for the thousands of small business owners across the state of New York who struggle with the rising cost of healthcare and who have been looking to Albany for leadership. We commend the Assembly and the Senate, particularly the bill's sponsors, Sen. Jim Alesi and Assembly Joe Morelle, and Senate Insurance Committee Chairman Sen. Jim Seward, for working together to advance an issue that is vital to the survival of many of our state's smallest employers. We strongly encourage Gov. David Paterson to sign this bill when it reaches his desk.

Paid family leave still on radar in final week of session
While there has not yet been any legislative movement on paid family leave legislation, the final week of session is typically the busiest--and for a bill like this, the most dangerous. The governor and legislative leaders confirm it has been a topic of discussion in leaders' meetings -- and there are rumblings that big labor is preparing to mount a major push to get this done.

We continue to impress upon the Legislature that this mandate would be extremely harmful to small business, and many NFIB/New York members have already responded to our call to action, writing their legislators to express their opposition to this proposal.

If you have not already done so, please take a moment to voice your opposition

Gov. Paterson continues push for property tax cap
In these busy waning days of the legislative session, Gov. Paterson has kept the heat on the Legislature to impose a cap on property tax increases, barnstorming the state to garner support for the proposal.

The governor has not shirked at all from taking on the powerful interests opposing the property tax cap--including the teachers and public employee unions. In fact, last week he fired a broadside across their bow, stating, "People need to see what property tax has done to people in the state. And if they can't see it, I would suggest laser surgery." The governor, as you know, is legally blind and recently has undergone several rounds of laser eye surgery himself.

The governor's position was buoyed by a recent Siena College poll which showed that 74 percent of New Yorker's back the property tax cap. As you will recall, our most recent Member Ballot indicated that 83 percent of NFIB/New York members supported it.

Earlier this week, Gov. Paterson convened a group of business organizations and citizens supporting the tax cap, and NFIB/New York was proud to join that group.

Despite the overwhelming public support, reaction in the Legislature continues to be mixed. Assembly Speaker Sheldon Silver has been viewed as an opponent of the proposal, and Senate Majority Leader Joseph Bruno has not embraced the governor's plan, either, instead preferring the Senate Majority's own proposal they claim would eventually eliminate local school property taxes. Senate Minority Leader Malcolm Smith, much to the chagrin of many in his own conference, came out this week in support of a tax cap -- but one even more stringent than that proposed by the governor, suggesting that the growth of property taxes be limited to 2 percent, not 4 percent as in the governor's legislation.

While there is little expectation that a tax cap will be enacted before the Legislature's scheduled end of session on June 23, the governor shows no signs of backing off this fight and it is anticipated that he will summon the Legislature back to Albany during the summer or fall to consider this proposal.

NFIB/New York will keep making the case for a property tax cap, and we'll keep you posted.

NFIB joins rally to push for lower fuel costs
A convoy of hundreds of trucks from around New York converged on the Capitol this week, staging a raucous and well-attended protest of high fuel prices that are harming small businesses and particularly crippling those in trucking and related businesses.

Several NFIB/New York members, including Bill Weaver of Weaver Construction in Glens Falls, attended the event, as did NFIB staff. Gov. Paterson, Senate Majority Leader Joe Bruno and other legislators addressed the crowd, as did NFIB/New York member and NY-21 congressional candidate Jim Buhrmaster of Buhrmaster Energy.

Many in the crowd voiced their strong support for a summer holiday from taxes on gas and diesel fuel, a proposal that NFIB/New York backed and which NFIB has also supported in Washington. Legislation to lift the state share of motor fuel taxes -- which supporters say would save an estimated 30 cents a gallon -- has passed the Senate but stalled in the Assembly.

Gov. Paterson, in his surprise appearance at the rally, again voiced his skepticism about this plan, out of concern that the savings would not be passed on to consumers. He renewed his willingness to support the proposal if the oil companies would guarantee that consumers would realize the intended savings.

Win or lose on the gas tax holiday, the size and volume of today's rally certainly got Albany's attention. We hope there will be some action to provide relief at the pump for individuals and small business alike.

Legislation to study fairness of public/private competition passes Legislature
A bill to create a blue ribbon commission to study the issue of competition between public and privately owned outdoor recreational facilities such as golf courses, ski centers and campgrounds, which we reported on in our last update, has passed the Senate and Assembly. The bill now heads to Gov. Paterson. NFIB/New York will be urging the governor to approve this important legislation which should help level the playing field for these businesses forced into unfair competition with government owned-and-operated facilities.

NFIB-backed bill to achieve tax fairness for ferry boat operators sails through Legislature
Legislation (S.7018A/A.10082A), sponsored by Sen. Ken LaValle and Assemblyman Marc Alessi, which will correct an anomaly in the law that does not allow ferry companies outside New York City whose rates are regulated by a local government to access the same sales tax exemption for the property purchased for or used in the original equipping of a new ferry was approved by the Senate and Assembly this week. The bill now heads to Gov. Paterson. NFIB was the prime advocate for this legislation.

Although this legislation will impact relatively few companies, it will make a big difference for those it does. One of them is the South Ferry Company on Eastern Long Island, owned and operated by the Clark family since 1797 -- and, as an NFIB member since 1949 -- NFIB/New York's longest-standing member. Annually, it transports more than a million passengers and over 725,000 vehicles between the Town of Shelter Island and North Haven. The route physically connects two portions of New York State Route 114. It operates solely as a public service providing a vital service to Shelter Island and the east end of Long Island. It offers the only direct route on and off Shelter Island for workers, students, shoppers and tourists who need to get to Long Island's South fork.

Existing law said businesses like the South Ferry Company could access the sales tax exemption if they received a "Certificate of Public Convenience and Necessity" from the New York State Department of Transportation -- except the DOT does not issue and has no authority to issue such certificates. So, in other words, companies outside of NYC were out of luck. South Ferry Company owner Cliff Clark brought this issue to NFIB/New York's attention last summer, and we went to work on it.

This legislation strikes a blow for fairness and will allow entrepreneurs like Cliff Clark -- who not only operate successful small businesses, but also provide an essential public service -- to grow and expand their business.

Once the bill reaches the governor's desk, we will be urging him to sign it into law.

NFIB/New York takes to Capitol Hill during 2008 National Small Business Summit
It was a whirlwind week in Washington during NFIB's 2008 Small Business Summit. NFIB/New York took time to visit with members of New York's congressional delegation, including Congresswoman Nydia Velázquez (NYC), chair of the House Small Business Committee, and Congressman Tom Reynolds (Buffalo). Members of Congress heard about small business concerns and priorities, particularly health insurance. Visit www.nfib.com/Summit for more details and reports on the very successful Summit.

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