NRLA-NY Legislative Update: January 2024

The 2024 NYS Legislative Session officially began on January 3, 2024. Governor Kathy Hochul gave her State of the State Address on January 9^th and promptly released her $223 billion Executive Budget Proposal on January 16^th. This year’s financial picture is bleaker than last year as New York faces a $4.3 billion deficit. The Governor’s Budget plan would close this gap and would also be the largest in state history, without raising taxes. All eyes were on the details in her State of the State and Budget plan.

One of the highlights of the Governor’s State of the State that was also proposed in her Executive Budget Proposal include:

Combat Organized Retail Theft

• The Executive provides $40.2 million for retail theft prevention:
  •  $25.2 million in new funding to deploy a dedicated State Police team to build cases against organized retail theft rings and create a new State Police enforcement unit;
  • $10 million in funding for District Attorneys to prosecute property crime cases; and
  • $5 million in additional funding to build the capacity of local law enforcement efforts to combat retail theft.
• In addition, the Governor is proposing to establish the Commercial Security Tax Credit, which would implement a $3,000 tax credit for small businesses (100 or fewer employees) whose retail theft prevention expenses exceed $12,000.

Some additional items from the Executive Budget proposal include:

Sunset COVID Sick Leave: The Executive proposal includes language that would sunset the state’s COVID-19 Sick Leave law on July 31, 2024.

Help Small Businesses Navigate Environmental Regulations: Empire State Development (ESD) will expand its existing Ombudsman program by establishing the Small Business Environmental Support Office (SBESO) to assist small businesses with a wide range of environmental regulations, including those involving water, air, waste, bulk storage, and more.

CTE and Education Funding: Education leaders and lawmakers are pushing back against Governor Kathy Hocul’s school aid proposal that would result in cuts to more than half of the state’s school districts. She is suggesting eliminating a policy known as “hold harmless” – which guarantees that districts maintain at least the same level of funding each year – would result in foundation aid cuts of more than $167 million to an estimated 337 school districts.

Northeast Construction Trades Workforce Coalition:  Todd has continued to participate in the Coalition by attending Board Meetings and planning a Lobby Day on February 12. The Lobby Day will include high school students from up to seven school districts as well as school principals and teachers, construction trades business leaders, and coalition participants, including the Northeastern Retail Lumber Association.

Deforestation: S.618 by Senator Kavanagh:

After a significant effort on our part, a bill introduced last year (S.4859-A / A.5682-A by Krueger/Zebrowski) was vetoed. This year, Senator Kavanagh has a similar bill introduced. However, in anticipation of last year’s bill being reintroduced, Todd met with the Assembly bill sponsor Ken Zebrowski and is working on a meeting with the Senate sponsor of last year’s bill, Senator Krueger, as well as the  Governor’s Counsel that we worked with last session. We will once again align efforts with AF&PA, ESFPA and other industry partners to strengthen our collective voices against this dangerous proposal on the retail lumber industry. 

Substantial Completion/Retainage: New Bill TBI
S.6855/A.1194 (Martinez/Braunstein) Retainage Payments

We have drafted bill language that would amend the State Finance Law and the General Municipal Law to allow materials that are delivered and accepted to be considered “substantially complete” thereby allowing for the release of retainage. We have shared the draft bill with the Northeastern Subcontractors Association (NESCA) who strongly supports our stand-alone bill that would exempt materialmen from retainage in public or private construction projects. 

Small Claims/Commercial Claims Monetary Increase:

Thanks to NRLA-NY’s efforts back in the late 1990’s we were able to increase the jurisdictional limits in small claims and commercial claims in justice courts. Suffice it to say, it is time to re-visit to increase the limits again.  Before introducing a bill in both houses, we are trying to ascertain usage in the Courts and by NRLA-NY members.

Amish

A sub-committee has been formed within the NRLA Legislative Committee to find creative ways through legislation or regulation to address unfair competition from the Amish, who are not subject to the same NYS Laws as non-Amish businesses, including NRLA members.  Our first call took place on January 30^th.