Gov. David A. Paterson had a busy month while the Legislature was on vacation, signing nearly 100 new laws while rejecting dozens of others.
Among the bills Paterson signed into law was the Smart Growth Public Infrastructure Policy Act, establishing “smart growth” criteria and requiring several state agencies to create a Smart Growth Advisory Committee to evaluate public infrastructure investment.
According to a prepared statement by Paterson, the new policy act “will promote fiscally sound and economically beneficial investments of taxpayer dollars.” How the state plans to accomplish this in the fiscal storm has not been addressed. The Construction Industry Fair Play Act was also signed into law, creating a “litmus test” to distinguish between a worker and an independent contractor on a construction project. It provides a method to clearly define which business is responsible for which workers. It will impose a monetary, as well as criminal, penalty for employers who misclassify workers on projects.
Citing studies that indicate nearly 15 percent of New York”™s construction industry is misclassified at any given time, Paterson said the law will prevent “a terrible practice that happens when a worker who should be considered an employee is improperly classified as an independent contractor or paid ”˜off the books.”™”
On September 8, he announced the start of the Excelsior Jobs program, which Empire State Development Chairman and CEO Dennis Mullen has been promoting across the state since June. Detailed information about the program and application materials are available through Empire State Development”™s Regional Offices and the agency”™s website at www.esd.ny.gov.
“The strategically targeted, fiscally responsible and results-driven Excelsior Jobs Program is a result of ESD”™s extensive research and collaboration with our economic development partners,” said Mullen in a prepared statement. “We encourage business owners to work with ESD”™s economic development professionals at our 10 regional offices throughout the state.”
The Empire Zone program provided little accountability of participating companies with nearly two-thirds of businesses in anchor industries, which accounted for two-thirds of the total program cost. According to Paterson”™s statement: “The Empire Zone program was continually hampered by abuses, lack of results and skyrocketing costs. Despite annual Empire Zone expenditures in excess of $550 million, the state”™s returns on investment were difficult to quantify, and businesses participating in the program had not been held accountable.”
Regional ESD offices will work with businesses to put the Excelsior Program in place. Although many of the region”™s leaders welcome any incentive that will help retain business in New York, many feel the Empire Program offered more incentives and needed tighter management.
