Industry News, July 25, 2005

The State Legislature has gone home after one of the most difficult sessions for the building industry in recent memory. Kudos to NYSBA, our state association, and its lobbying team of Phil LaRoque and Bill Crowell. Only two weeks ago their positive program was largely dead for the year. Gone were hopes for Labor Law –Liability reform and planning and zoning reform, including a limit to municipal moratoria.

Ahead lay active bills moving swiftly onto daily calendars, including proposals to enable: all towns to enact a two percent transfer tax for open space; State Environmental Department regulation of isolated wetlands of one acre; impossible regulation of modular home construction, duplicate state registration of home improvement contractors, escrow of retainage on private construction contracts; municipal bans on plastic pipe and new local authority to enact stricter state building and fire prevention code standards; and elimination of assessment advantages for condominiums: prevailing wage expansion to private construction which was designed to be turned over to government, and INTERNET publication of Environmental Impact Statements(EIS).

Because of the seniority of the Long Island delegation, our local legislators were often key committee chairs and sponsors of these controversial introductions. The Long Island connection to much of this odorous and onerous pile was often noted by our upstate compatriots.

LIBI had to act frequently in support of the Albany effort. Indeed one bill, an extension of the Pine Barrens core preservation idea to the Peconic Bay area, was a Long Island only measure. All feared the worst as the session tempo increased prior to adjournment. But good results came about through vigorous state lobbying well support by local associations and members’ effort.

Only two bills reached the Governor, the prevailing wage bill and the internet EIS bill.

The prevailing wage bill has reached the Governor before but has drawn vetoes. It would require payment of prevailing “substitute union” wages for any private contracting that would end up owned or assisted by government. Government contracting for public housing and roads is governed by prevailing wage rules. Assisted housing, like those built by local builders for the Long Island Housing Partnership is not. Nor, are roads built by home builders in subdivisions and offered to government for dedication as public streets. This bill would have made these items subject to prevailing wage. Once again we will have to ask the Governor for a veto.

The Environmental Impact Statement bill would require that all the statements required to be prepared on proposed developments be available on the Internet. This will certainly increase costs and require more extensive comment on public input. Again we have a case to argue before the Governor.

The Peconic bill was a turkey introduced by Senator La Valle and by Assemblyman Tom DiNapoli (Majority Demeocrat) at the request of Fred Thiele (Minority Republican). Both East End legislators responded to a request from Southampton Supervisor Patrick Skip Heaney for some indemnification and financial assistance from the State, if the town moved to save some acreage in the town’s aquifer protection area from development.

The response to Heaney’s request, a bill empowering all five east end towns to create no-build zones, called protection areas, modeled on the Pine Barrens Core Preservation Area, with full state indemnification against takings claims from property owners, if the State Environmental Department certified the protection areas as meeting strict Pine Barrens core standards. Heaney was surprised. Alerted to last minute amendment and movement of the bill in the State Senate, LIBI built upon a network allies, the Southampton Business Alliance and other local business and real estate and farmer interests. We worked closely with NYSBA’s team to throw up roadblocks. We raised serious questions and argued against the overreaching measure. Eventually, the State Assembly saw the fiscal consequences and held the bill. The Legislature went home and builders and their associates’ wallets are again safe, thanks to the ability of organized homebuilders associations to mobilize and win vigorous public policy debates.