BROOKLYN CHAMBER OF COMMERCE YEARS OF BUSINESS IN BROOKLYN NEW YORK STATE LEGISLATIVE AGENDA

Transcription

1 BROOKLYN CHAMBER OF COMMERCE YEARS OF BUSINESS IN BROOKLYN NEW YORK STATE LEGISLATIVE AGENDA 2018

2 TABLE OF CONTENTS JOINT LETTER FROM BOARD CHAIR, PRESIDENT AND CEO, AND GOVERNMENT AFFAIRS COMMITTEE CO-CHAIRS... 1 NEW YORK STATE REPRESENTATIVES AND THE BROOKLYN DELEGATION OUR MEMBERSHIP OVERVIEW OF OUR 2017 MEMBER ISSUES SURVEY SUMMARY OF OUR POSITIONS ON ISSUES IN-DEPTH OVERVIEW OF OUR POSITIONS SMALL BUSINESS COMPETIVENESS HEALTHCARE TRANSPORTATION AND INFRASTRUCTURE ECONOMIC DEVELOPMENT AND INDUSTRIAL POLICY HIGHER EDUCATION WORKFORCE DEVELOPMENT ENERGY AND ENVIRONMENT DIVERSITY AND INCLUSION ARTS AND CULTURE BROOKLYN NIGHT SPONSORS

3 Dear Friends of the Brooklyn Chamber, We are proud to present the 2018 New York State Legislative Agenda. Compiled through a survey of our members policy concerns and needs, the agenda helps us communicate the Brooklyn business community s message to policymakers in Albany and throughout New York State is the Brooklyn Chamber s Centennial year, and the support and understanding of our elected representatives in Albany is more important than ever. The Brooklyn Chamber of Commerce is the premier economic development organization in the borough, representing over 2,000 businesses. The Brooklyn Alliance is the nonprofit economic development entity of the Chamber, which provides direct business assistance programs. Brooklyn Alliance Capital is the Community Development Financial Institution of the Chamber, which provides loans to immigrant and minority-owned small businesses in Brooklyn. The agenda reflects a variety of the Brooklyn business community s priorities for 2018, including the cost of health insurance, traffic and transportation, the cost of both commercial and residential space, and hiring the most qualified people for Brooklyn s unfilled jobs. None of our programs and services would be possible without the amazing support of our elected officials, our membership, and our staff. Our Board of Directors and our Government Affairs Committee have been integral in creating and maintaining close relationships with our partners in government. We look forward to meeting with you and bringing you up to date with the latest goings-on in the world s best borough! For more information on our programs and services, visit ibrooklyn. com. Sincerely, Andrew Hoan President and CEO Denise Arbesu Chair, Board of Directors Antonia Yuille-Williams Co-Chair, Government Affairs Committee Gil Cygler Co-Chair, Government Affairs Committee page 1

4 NEW YORK STATE REPRESENTATIVES Governor Hon. Andrew M. Cuomo Lieutenant Governor Hon. Kathy C. Hochul Majority Leader, New York State Senate Hon. John J. Flanagan Speaker, New York State Assembly Hon. Carl E. Heastie Comptroller Hon. Thomas P. DiNapoli Attorney General Hon. Eric T. Schneiderman page 2

5 THE BROOKLYN DELEGATION ASSEMBLY Hon. Peter J. Abbate Jr. Hon. Charles Barron Hon. Rodneyse Bichotte Hon. Robert C. Carroll Hon. William Colton Hon. Steven Cymbrowitz Hon. Maritza Davila Hon. Erik Dilan Hon. Pamela Harris Hon. Dov Hikind Hon. Joseph R. Lentol Hon. Nicole Malliotakis Hon. Walter T. Mosley Hon. Félix Ortiz Hon. N. Nick Perry Hon. Diana C. Richardson Hon. Jo Anne Simon Hon. Latrice Walker Hon. Helene E. Weinstein Hon. Jaime R. Williams Hon. Tremaine Wright SENATE Hon. Martin Malavé Dilan Hon. Simcha Felder Hon. Martin J. Golden Hon. Jesse Hamilton Hon. Brian Kavanagh Hon. Velmanette Montgomery Hon. Kevin S. Parker Hon. Roxanne J. Persaud Hon. Diane J. Savino page 3

6 OUR MEMBERSHIP CONCENTRATION OF MEMBERSHIP BY NEIGHBORHOOD GREENPOINT GREENPOINT WILLIAMSBURG WILLIAMSBURG BUSHWICK BUSHWICK BROOKLYN BROOKLYN HEIGHTS HEIGHTS DOWNTOWN DOWNTOWN BROOKLYN BROOKLYN CYPRESS CYPRESS HILLS HILLS FORT FORT GREENE GREENE BEDFORD-STUYVESANT BEDFORD-STUYVESANT COBBLE COBBLE HILL HILL CROWN CROWN HEIGHTS HEIGHTS CARROLL CARROLL GARDENS/RED GARDENS/RED HOOK HOOK PROSPECT PROSPECT HEIGHTS HEIGHTS PARK PARK SLOPE/GOWANUS SLOPE/GOWANUS BROWNSVILLE BROWNSVILLE EAST EAST NEW NEW YORK YORK PARK PARK SLOPE/WINDSOR SLOPE/WINDSOR TERRACE TERRACE EAST EAST FLATBUSH FLATBUSH FLATBUSH FLATBUSH SUNSET SUNSET PARK PARK KENSINGTON/WINDSOR TERRACE KENSINGTON/WINDSOR TERRACE CANARSIE CANARSIE BOROUGH BOROUGH PARK PARK BAY BAY RIDGE RIDGE MIDWOOD MIDWOOD DYKER DYKER HEIGHTS HEIGHTS BENSONHURST BENSONHURST FORT FORT HAMILTON HAMILTON FLATLANDS/MILL FLATLANDS/MILL BASIN BASIN GRAVESEND GRAVESEND SHEEPSHEAD SHEEPSHEAD BAY/BRIGHTON BAY/BRIGHTON BEACH BEACH CONEY CONEY ISLAND ISLAND page 4

7 Membership By Category Employment, Staffing, Business and Professional Services Non-Profit Shopping, Retail Real Estate, Construction Advertising, Communications, Media Finance, Insurance, Banking Arts, Culture, Entertainment, Recreation, Sports Government, Education Public Utilities & Environment Restaurants, Food, Beverage Lodging, Travel, Tourism Computers, Technology, Internet Health Care Personal Care and Services Automotive, Aviation & Marine Industrial, Manufacturing 0% page 2% 5 4% 6% 8% 10% 12% 14% 16% 18%

8 THE TOP 5 ISSUES FROM OUR MEMBER SURVEY Key Findings Every year, through the Brooklyn Chamber s Member Issues Survey, Chamber Members are polled on a variety of topics, from their outlook on their respective businesses and the economy to their greatest obstacles to growth. Here are some other key findings that we wanted to highlight: Health Insurance The increased cost of providing health insurance to employees is the number one concern for our businesses. 38 percent view this as a severe problem, with nearly two-thirds of our members citing this as a problem in general. Traffic and Transportation This remains one of our members top issues. 34 percent of businesses list this as a serious concern. Overall, two-thirds of members say that traffic and transportation is a problem. page 6

9 Cost and Availability of Commercial/Residential Space Finding space to work and live again made the list of top concerns for our members. More than half stated this is a problem, with 27 percent telling us it is a major concern. Worker s Compensation Costs These business costs were not one of our members top concerns in past years; however, 17 percent listed it as a severe problem this year and nearly half say it is an issue. Finding/Hiring Qualified Workers In 2016, there were 59,100 unmet job openings in Brooklyn, and 16 percent of members tell us this is a serious concern. More than half of our members view this as a problem. page 7

10 WHERE WE STAND SMALL BUSINESS COMPETITIVENESS A08205A (MCDONALD)/S04120A (AKSHAR) REDUCE REGULATORY FINES FOR SMALL BUSINESSES SUPPORT A03767 (QUART)/S06892 (KENNEDY) ESTABLISH THE MICROENTERPRISE DEVELOPMENT ACT TO ASSIST VERY SMALL BUSINESSES AND LOW INCOME ENTREPRENEURS SUPPORT DEVELOP A CYBERSECURITY AND EMERGENCY RESPONSE INNOVATION CENTER AT FORT HAMILTON GARRISON SUPPORT A09671 (BUCHWALD)/ S07546 (FUNKE) ESTABLISH THE NEW YORK STATE INNOVATION VOUCHER PROGRAM SUPPORT ENACT LEGISLATION THAT SUPPORTS HOME SHARING SUPPORT UPSTATE/DOWNSTATE VISION TASK FORCE SUPPORT HEALTHCARE MAINTAIN ROLE OF NEW YORK STATE OF HEALTH SUPPORT ADDITIONAL FUNDING FOR THE COMMUNITY HEALTH ADVOCATES (CHA) PROGRAM SUPPORT EXPAND AVAILABILITY OF TELEHEALTH SERVICES SUPPORT HEALTHCARE SHORTFALL FUND REVIEW RECOMMENDED WINDFALL SURCHARGE ON HEALTH INSURANCE PROVIDERS REVIEW RECOMMENDED MEDICAL MALPRACTICE REGULATION REFORM SUPPORT NURSE STAFFING RATIOS OPPOSE TRANSPORTATION AND INFRASTRUCTURE BROOKLYN QUEENS CONNECTOR (BQX) SUPPORT EXTEND TRAIN SERVICE TO RED HOOK SUPPORT TRI-BOROUGH EXPRESS LINE (X-LINE) SUPPORT A00306A (RODRIGUEZ)/ S06287 (LANZA) ESTABLISH THE MOVE NEW YORK FAIR PLAN REVIEW RECOMMENDED INCENTIVES FOR BUSINESSES ALONG THE L TRAIN LINE SUPPORT S7698 (GOLDEN) ENACT THE TRANSFORMATIONAL INFRASTURCTURE AND REVITALIZATION PROJECT ACT SUPPORT PROMOTE THE INTEGRATION OF AUTONOMOUS VEHICLES IN NEW YORK STATE SUPPORT RIGHT OF WAY FEES ON BROADBAND OPPOSE ECONOMIC DEVELOPMENT AND INDUSTRIAL POLICY REVITALIZATION OF BROADWAY JUNCTION SUPPORT AFFORDABLE MANUFACTURING SPACE AND SHIFTS IN REAL ESTATE MARKET SUPPORT A00128 (CAHILL) ESTABLISH THE NEW YORK CRAFT BEVERAGE COUNCIL SUPPORT SKILLED WORKFORCE AND SECTOR-BASED TRAINING OPPORTUNITIES SUPPORT page 8

11 HIGHER EDUCATION INCREASE ACCESS TO HIGHER EDUCATION FOR ALL STUDENTS SUPPORT NEW YORK STATE OPPORTUNITIES PROGRAMS SUPPORT EXCELSIOR SCHOLARHIPS PROGRAM REVIEW RECOMMENDED NEW YORK STATE DREAM ACT SUPPORT WORKFORCE DEVELOPMENT EXPAND THE NEW YORK YOUTH JOBS PROGRAM SUPPORT A02225A (BRONSON)/ S03395-A (GALLIVAN) ENACT THE EMPIRE STATE APPRENTICESHIP PROGRAM SUPPORT EXAMINE ELIMINATING THE MINIMUM WAGE TIP CREDIT REVIEW RECOMMENDED ALLOW PUBLIC ACCOUNTING FIRMS TO HAVE MINORITY OWNERSHIP BY INDIVIDUALS WHO ARE NOT CERTIFIED PUBLIC ACCOUNTANTS SUPPORT INCENTIVES FUNDING FOR ON-THE-JOB TRAINING SUPPORT A02007 (FAHY)/S03486 (PERALTA) SCHEDULES THAT WORK ACT REVIEW RECOMMENDED ENERGY AND ENVIRONMENT A01705B (WOERNER)/S01225B (GRIFFO) ESTABLISH THE NEW YORK STATE CLEAN ENERGY TECH PRODUCTION PROGRAM SUPPORT A06679A (CRESPO)/S03511A RANZENHOFER CREATE A SMALL BUSINESS ELECTRIC ENERGY TAX CREDIT SUPPORT INCREASE ACCESS TO AFFORDABLE, CLEAN-BURNING NATURAL GAS SUPPORT DIVERSITY AND INCLUSION CALL ON NEW YORK STATE COMMON RETIREMENT FUND TO INVEST IN COMPANIES WITH WOMEN AND MINORITY LEADERSHIP SUPPORT REAUTHORIZE M/WBE PROGRAM LEGISLATION TO INCLUDE ALL STATE-FUNDED CONTRACTS ISSUED BY LOCALITIES SUPPORT A09631 (BICHOTTE) REMOVE $3.5 MILLION CAP FOR M/WBE PARTICIPATION SUPPORT A04430 (BLAKE) ENCOURAGE PARTICIPATION OF M/WBEs IN STATE CONTRACTS SUPPORT IMPROVE CONNECTION BETWEEN NEW YORK CITY, NEW YORK STATE AND FEDERAL CERTIFICATION PROCESSES SUPPORT TAX CREDITS FOR VETERAN ENTREPRENEURSHIP SUPPORT A02165 (BRONSON)/ S00055 (HOYLMAN) PARTICIPATION BY LGBT, DISABILITY AND VETERAN- OWNED BUSINESSES IN STATE CONTRACTS - SUPPORT ARTS, CULTURE AND TOURISM EXPAND HOSPITALITY AND TOURISM INITIATIVES IN CONEY ISLAND - SUPPORT A02670B (LENTOL)/ S03159A (GOLDEN) ESTABLISH THE EMPIRE MUSIC PRODUCTION CREDIT AND THE EMPIRE STATE DIGITAL GAMING MEDIA PRODUCTION CREDIT SUPPORT A02042 (LENTOL)/S02852 (PARKER) AUTHORIZE DOCUMENTARY FILMS TO QUALIFY FOR EMPIRE STATE FILM PRODUCTION TAX CREDIT - SUPPORT page 9

12 SMALL BUSINESS COMPETITIVENESS A08205A (MCDONALD)/S04120A (AKSHAR) REDUCE REGULATORY FINES FOR SMALL BUSINESSES SUPPORT This bill aims to reduce regulatory fines on businesses and to create a productive relationship between the state and business owners, thus allowing them to work closely together. Section 170-c of this legislation recommends that state agencies should not fine a small business for a firsttime violation of that agency s regulations, unless the agency determines that the violation directly affects public health or safety. Small businesses are extremely important to a stable and vibrant economy, as they provide jobs and generate revenue. However, the success of these businesses is being curtailed because of excessive red tape from various agencies, and while well-meaning, aggressive enforcement of these statutes can take away from valuable resources needed to operate a business. In the Brooklyn Chamber s 2017 Member Issues Survey, close to 30 percent of our membership said that government regulation and fines are problematic, and limits the success of their businesses, whereas 15 percent indicated that this is a severe problem for them. Therefore the Brooklyn Chamber encourages the passage of this legislation, as it would present businesses with the opportunity to cure violations, as opposed to having harsh fines imposed. This will help to reduce the economic burden of the small business community, and also enhance the relationship between it and government agencies. A03767 (QUART)/S06892 (KENNEDY) ESTABLISH THE MICROENTERPRISE DEVELOPMENT ACT TO ASSIST VERY SMALL BUSINESSES AND LOW-INCOME ENTREPRENEURS SUPPORT There is a large demand in Brooklyn for access to capital as more and more small businesses attempt to open in the borough. These businesses need financing to launch, grow, and create economic opportunity in their community. However, they are often unable to secure it in a timely manner, if at all. Providing effective financial tools for small businesses to invest in traditionally underserved communities helps such communities to experience heightened economic activity. This is one of the key factors that propelled the Brooklyn Chamber of Commerce to establish a Community Development Financial Institution (CDFI), Brooklyn Alliance Capital, with support and resources from the U.S. Treasury Department. In 2017, Brooklyn Alliance Capital was incorporated as a 501(c)3 organization for the purpose of providing loans to small businesses with a focus on immigrant and minority-owned businesses. As of February, 2017 Brooklyn Alliance Capital provided micro loans to eight local businesses, totaling $17,000. page 10

13 Therefore, the Brooklyn Chamber supports legislation to increase statewide microenterprise development by making funds and working capital available to small businesses and low-income entrepreneurs to start or grow their operations. This will lead to increased job creation in traditionally underserved communities. DEVELOP A CYBERSECURITY AND EMERGENCY RESPONSE INNOVATION CENTER AT FORT HAMILTON GARRISON SUPPORT In 2017, the Brooklyn Chamber, through its nonprofit affiliate, The Brooklyn Alliance, was awarded a grant from the U.S. Economic Development Administration (EDA) to complete a Comprehensive Economic Development Strategy (CEDS). Since then, the Chamber has done wide outreach to local stakeholders, including elected officials, to establish the type of initiatives and projects that would enhance economic development in their respective communities. The need for a cybersecurity and emergency response innovation center was one of the initiatives that fell under that umbrella. Cybersecurity is a strong growth industry within the innovation economy, and has been identified as a potential business attraction opportunity by the city due to its strengths and experience in counterterrorism. Our legislators at all levels of government should foster more cybersecurity businesses by helping to anchor a new cybersecurity and emergency response innovation complex, potentially occupying a portion of the Fort Hamilton Garrison, if space is available within that facility. A09671 (BUCHWALD)/ S07546 (FUNKE) ESTABLISH THE NEW YORK STATE INNOVATION VOUCHER PROGRAM SUPPORT This bill proposes that innovation vouchers go directly to small businesses to provide dollar-for-dollar matching funds to acquire expertise from colleges and universities, government laboratories and public research institutes. A public-private partnership would be formed, connecting small businesses with research and development facilities to create jobs and innovation in New York. In essence, this forward-thinking approach would deliver noticeable benefits to small businesses and college students that represent the workforce of tomorrow. The Brooklyn Chamber is already making strides in applying an alternate model to local businesses through its GoDigital! program. This program was launched 2013 in partnership with Google, and helps small businesses create or enhance their online presence free of cost. GoDigital! utilizes the skills and expertise of a team of college students, in addition to key resources offered by the Brooklyn Chamber, to conduct outreach to storefronts and provide on-site social media training. Team members assist owners and employees to understand the most essential and basic social media platforms. To date, we have served over 750 businesses with Go Digital! page 11

14 Brooklyn is rapidly becoming a leading innovation hub, and in order for this sector to reach its full potential and increase the prospects for job creation, business owners will need better incentives. Therefore, the Brooklyn Chamber supports the passage of this legislation, as it would better enable the borough to keep pace with emerging innovation projects. ENACT LEGISLATION THAT SUPPORTS HOME SHARING SUPPORT Home sharing is a growing component of tourism in Brooklyn and a valuable tool of economic empowerment for Brooklyn residents and local businesses. Across 22,000 unique Airbnb listings that hosted at least one trip, Brooklyn hosts were paid a total of $159 million in 2017, with the typical Brooklyn host earning $5,200. This represents just under 10 percent of Brooklyn s median household income ($55,150 as of the 2016 American Community Survey), a significant boost to middle class residents who face rising rents and stagnant incomes. According to Airbnb, nearly 80 percent of hosts in New York City report that home sharing helps them afford to stay in their homes. Home sharing not only serves as a viable source of income for Brooklyn residents, but it also brings the benefits of the tourism industry to neighborhood small businesses. In 2017, 646,000 Airbnb guests stayed in Brooklyn, with each guest spending an average of $202 per day. Approximately one-third of that spending a total of $43.5 million occurs in the neighborhood where the guest stays, boosting the bottom line for community coffee shops, restaurants, and retail outlets. Furthermore, 44 percent of Airbnb visitors in New York City report that they would not have traveled or would not have stayed as long without Airbnb. On average, Airbnb guests stay 2.1 times longer than hotel guests, and in Brooklyn, stay an average of 5.75 nights. This is particularly noteworthy because home sharing appears to facilitate tourism far beyond traditional hot spots, allowing visitors to explore neighborhoods that previously did not benefit from tourism. Approximately 89 percent of Airbnb properties are located outside the hotel district of Midtown Manhattan, and 74 percent of Airbnb properties in major cities across the United States are located outside of traditional hotel districts. While hotels still command a large portion of market share most recently reporting record profits in 2017 home sharing is sparking tourism in neighborhoods that visitors have not yet widely explored. Currently, New York State law prohibits hosts who live in apartment buildings ( Class A multiple dwellings ) from renting entire homes for fewer than 30 days, including when they are out of town for work or vacation. However, A-7520/S-7182, which was introduced by Brooklyn New York State Assembly Member Joseph R. Lentol, would amend current laws, and allow individuals to rent their homes and platforms like Airbnb to collect sales/ lodging taxes, while creating a mandatory registration system that would allow the city to page 12

15 target bad actors who remove multiple units of permanent housing from the market. The Chamber supports this legislation and looks forward to its passage in the 2018 legislative session. The Brooklyn Chamber respectfully recommends a review of A4153B/S7740, which was introduced by New York State Assembly Member Linda B. Rosenthal, and would require advertisements for certain accommodations to be submitted to a designated enforcement agency. While well-intentioned, this legislation could have unintended consequences for both consumers and everyday New Yorkers who look to earn an honest income through home sharing. UPSTATE/DOWNSTATE VISION TASK FORCE SUPPORT There is a natural synergy between upstate and downstate New York, which can increase commerce and create economic opportunities within the state. However, more action needs to be taken to capitalize on these opportunities. Many New York City businesses, particularly manufacturing firms that are looking to expand, choose to relocate to other states where they believe they can find affordable space, a favorable tax environment, incentive programs, and a qualified labor pool. These businesses are unaware of the resources and opportunities available to them within New York State, including affordable space, skilled labor, co-packing facilities and contract manufacturing. Many upstate businesses have trouble accessing the New York City market, despite its large size and geographic proximity. These businesses are unaware of opportunities and have not been able to establish contacts and inroads needed to generate accounts. Millions of visitors come to New York City every year, but few leave the five boroughs. There is ample opportunity for coordinated marketing campaigns that entice visitors to explore upstate destinations. While the Brooklyn Chamber s mission is focused on the borough, we understand that market dynamics can impede firms ability to grow. As a New York State organization, we encourage business development within the state, as a stronger New York creates a stronger Brooklyn. Working with our Chamber of Commerce colleagues throughout the state, the Brooklyn Chamber supports an Upstate/Downstate Vision Task Force that would work towards spreading awareness of resources to encourage collaboration and intrastate commerce. page 13

16 HEALTHCARE MAINTAIN ROLE OF NEW YORK STATE OF HEALTH SUPPORT Thanks to the support of Brooklyn representatives in the New York State Legislature, the Brooklyn Chamber of Commerce through its nonprofit affiliate The Brooklyn Alliance has provided Navigator services under ACA in Brooklyn to both small businesses and individuals since To that end, the Brooklyn Chamber has partnered with the Brooklyn Public Library, elected officials and community leaders to facilitate onsite enrollment services. The looming threat of cuts to federal funding for this program is of great concern to New Yorkers. Navigators provide culturally competent, linguistically appropriate, and disability accessible enrollment services at convenient times, including evenings and weekends, at no cost to enrollees. To date, the Brooklyn Chamber s Navigator program has registered 7,449 individuals, and of that number, enrolled 6,777. This demonstrates the high need and importance of Navigators in helping to address the insurance needs of consumers who may not be able to afford access to this information otherwise. We urge members of the state legislature to keep voicing opposition to proposed federal funding cuts to the ACA program so that New Yorkers have the support they need to access and understand their health insurance options, including those available through the New York State of Health Marketplace. ADDITIONAL FUNDING FOR THE COMMUNITY HEALTH ADVOCATES (CHA) PROGRAM SUPPORT Community Health Advocates (CHA), a program of the Community Service Society, provides free and confidential individual counseling and educational community presentations to individuals, families, advocates and providers about health insurance in New York State. CHA s network of community-based organizations and small business serving groups helps New Yorkers access the health care they need, understand their health insurance options, and learn how the health care system works. The Brooklyn Chamber of Commerce, through its nonprofit affiliate, The Brooklyn Alliance, is part of the CHA network. Every year, CHA serves approximately 40,000 consumers throughout the State. Since 2010, CHA has assisted over 300,000 New Yorkers and has saved approximately $26 million for New Yorkers in health insurance and health care costs. Since joining the CHA network in 2015, the Brooklyn Chamber has served 416 businesses through CHA programming. New Yorkers need trusted and experienced Community Health Advocates who can help them navigate the health care system. Therefore, the Brooklyn Chamber joins other CHA page 14

17 advocates in respectfully requesting the inclusion of a $1 million Senate appropriation out of a total $4.75 million budget allocation with the Assembly providing $1.25 million and the Executive providing $2.5 million. EXPAND AVAILABILITY OF TELEHEALTH SERVICES SUPPORT Telehealth is an innovative model that allows patients to receive healthcare services wherever they are located, adding convenience for consumers and preventing avoidable emergency room visits. The Brooklyn Chamber supports expanding the availability of telehealth services in New York State by removing barriers to treatment and fairly compensating providers for the services they provide. There are various approaches the New York State Legislature can take to improve telehealth for New York s health care consumers, including: expanding the originating site definition to include the patient s residence as well as any other location and removing barriers to licensure for healthcare professionals by adopting the Interstate Medical Licensure Compact. HEALTHCARE SHORTFALL FUND REVIEW RECOMMENDED In the New York State FY 2019 budget, there is a proposal to establish a Healthcare Shortfall Fund to ensure the continued availability and expansion of funding for quality health services to New York State residents and to mitigate risks associated with the loss of federal funds. According to the Greater New York Hospital Association, Medicaid providers within the state have received a Medicaid rate reimbursement increase for the past 10 years, despite growing operational costs. This has put safety net hospitals and other Medicaid providers in a precarious position. Putting a fund in place to fill in the widening gaps in access to coverage is important, as all New Yorkers deserve the right to quality and affordable health care. WINDFALL SURCHARGE ON HEALTH INSURANCE PROVIDERS REVIEW RECOMMENDED This proposal is also included in the New York State FY 2019 budget, and is likely to be a funding source for the Healthcare Shortfall Fund. A 14 percent Windfall Surcharge would be imposed on Health Insurance providers for this purpose. The reduction in the federal corporate tax rate from 35 percent to 21 percent applies to all corporations, regardless of industry. Taxing a specific industry because of its line of business sets a dangerous precedent of shifting government costs to the private sector when the state faces a budget deficit. page 15

18 Among all of the taxes collected by New York State, taxes on private health insurance rank third highest. This will add new taxes to New York s existing health plan, which would include: 1.75 percent premium tax on commercial health insurance policies that is directed to the general fund (in 2015 the tax raised an estimated $350 million). Section 206 assessments that fund the Department of Financial Services operations; and $5 billion collected annually through the Health Care Reform Act (HCRA) surcharges and assessments. According to the 2018 State Business Tax Climate Index by the Tax Foundation, the nation s leading independent tax policy research organization, New York is ranked 49th overall. Adding this new tax will make it more difficult for health care companies to operate in New York and ultimately threaten the affordability of, and access to, health coverage for millions of New Yorkers. The Brooklyn Chamber urges the Governor to further engage health insurance providers and hospitals in an attempt to foster access to adequate health care without potentially driving up the cost of coverage. MEDICAL MALPRACTICE REGULATION REFORM - SUPPORT As much as 10 percent of a hospital s non-operating budget comes from the high cost of medical malpractice insurance over $1.6 billion annually is collectively paid by hospitals in New York. The costs are so high because the tort system is lengthy, inefficient and acrimonious. Recoveries are unpredictable, inequitable and excessive, leading to unnecessarily high premiums, reserve requirements and settlements. In Brooklyn, excessive jury awards have further driven the unsustainably high costs of medical malpractice coverage that have pushed most commercial insurance carriers out of the market and forced many hospitals to self-insure or even go without coverage. While well-intentioned, the passage of Lavern s Law in January, 2018 is expected to drive up administrative costs for hospitals by an additional 10 to 15 percent, according to the Greater New York Hospital Association. We respectfully ask that the New York State Legislature support reforms to address high administrative costs and the overall issue of excessive awards and settlements and express our strong opposition to all bills that would substantially increase the costs of medical malpractice premiums. None of these proposals should be considered in a vacuum. Instead, legislators should enact reforms that encompass a comprehensive view of New York s entire medical liability environment. page 16

19 NURSE STAFFING RATIOS OPPOSE The Brooklyn Chamber of Commerce respectfully asks that our legislators oppose A01532 (Gunther)/S03330 (Hannon), and any proposals that would impose arbitrary and rigid one-size-fits-all forced nurse staffing ratios. Effective staffing is vital to good patient care and staffing rules are already in effect at multiple levels of government. However, staffing ratios are the wrong approach one size does not fit all and no credible study has found a direct link between these ratios and improved patient outcomes. In New York, quality improvements have been, and are being, achieved by ensuring that health care institutions have comprehensive care teams not by mandating specific numbers of one member of the care team. Rigid staffing ratios would deny hospitals the workforce flexibility they need to respond to emergencies and cost New York s already over-regulated hospitals and nursing homes a staggering $3 billion for implementation and compliance. This is money that our struggling Brooklyn hospitals do not have for a mandate they do not need. New York State already imposes an extremely high regulatory compliance requirement for hospitals. If ACA is repealed without an immediate and adequate replacement, it could severely harm insurance coverage and insurance markets, hospitals, and the New York State budget. Governor Cuomo has estimated that ACA repeal could cost New York State nearly $3.7 billion. Given this possibility, there could not be a worse time to impose costly, burdensome, forced nurse staffing ratios on hospitals. TRANSPORTATION AND INFRASTRUCTURE BROOKLYN QUEENS CONNECTOR (BQX) SUPPORT The Brooklyn Chamber of Commerce strongly supports the Brooklyn Queens Connector (BQX) project, a streetcar that would run from Sunset Park to Astoria along the waterfront in Brooklyn and Queens. The impacts of the construction of this streetcar would be a game changer for New York City. The East River waterfront has experienced profound economic growth through the construction of residential, commercial and industrial projects. New families, retail, makers, and office tenants have filled these new spaces and transformed the waterfront into an innovation corridor. In the Brooklyn Chamber s 2016 State Member Issues Survey, 63 percent of respondents expressed support for the BQX project. page 17

20 Although this new development is welcome and would provide new jobs and opportunities for people from all walks of life, it comes with challenges that require public action to deliver infrastructure to support private efforts. One of the long-standing challenges faced by the waterfront communities of Brooklyn and Queens, which is made more acute by current conditions, is intra/inter-borough mass transit. A prototype of the street car was unveiled in November, 2017 in the Brooklyn Navy Yard, which is home to the project s manufacturing hub - Building 77. The unveiling represented an important step in rallying additional support, which will be critical in making the project a reality. EXTEND TRAIN SERVICE TO RED HOOK SUPPORT This is another proposal included in the Brooklyn Chamber s Economic Development Strategy. The expansion of train service from lower Manhattan to Red Hook would provide critically needed transit access and connectivity to other subway lines. Enhanced transit access would serve existing residents and attract investment to the neighborhood In his 2018 State of the State address, New York Governor Andrew M. Cuomo outlined a revitalization proposal for Red Hook, Brooklyn which would see the Port Authority of New York and New Jersey consolidating its maritime operations there, and transferring some to the South Brooklyn Marine Terminal in Sunset Park. The vision here is that with the transfer of maritime operations, more land would become available in Red Hook to facilitate development projects that would benefit the community. A key part of the Governor s proposal also includes extension of subway service from lower Manhattan to a new station in Red Hook through an underwater tunnel. Red Hook is still a very viable hub for the growth and expansion of the borough s manufacturing sector, but is also ripe with opportunities to attract and retain technology start-ups. Crucial to such successes, however, is the need for strategic planning and investment to address improved access to public transportation, tax incentives for businesses, affordable commercial and residential spaces, and job creation. We encourage our elected officials to review this proposal, as well as any other existing or future plans to improve transportation access to Red Hook, with local businesses and residents in order to produce a collective vision that would benefit all stakeholders. TRI-BOROUGH EXPRESS LINE (X-LINE) SUPPORT The Tri-Borough Express, or X-Line, would leverage existing freight tracks and rights of way running from Bay Ridge, across Flatbush, through Queens, and ultimately to the Bronx, connecting multiple existing subway lines across the southeastern half of Brooklyn while ensuring adequate page 18

21 accommodation for freight traffic. Served by new transit access, the neighborhoods the X-Line would run through would vastly improve in their connectivity and attract commercial investment. This proposal is included in the Brooklyn Chamber s Economic Development Strategy. Other metro areas in the U.S. and around the world successfully mix freight and passenger operations. A feasibility study and due diligence for permitting freight and passenger trains to move through the same corridor should be advanced, as should opportunity assessments for potential new station area development. The MTA has already issued a Request for Proposals to develop a mixed-use project above a 3.8 acre section of the LIRR s Bay Ridge Branch freight rail corridor that could serve as a model for the entire corridor. A00306A (RODRIGUEZ)/ S06287 (LANZA) ESTABLISH THE MOVE NEW YORK FAIR PLAN REVIEW RECOMMENDED Over the past two years, there has been increased legislative dialogue and grass roots efforts at both the city and state levels regarding the issue of congestion pricing. This includes the introduction of A00306A by New York State Assembly Member Robert J. Rodriguez and S06287 by New York State Senator Andrew J. Lanza in 2017, which propose the establishment of the Move New York Fair Plan. This legislation proposes the creation of the Move New York Mobility Fund, which would be maintained by implementing tolls for outer bridges, and surcharges on taxis and other for hire vehicles. In October 2017, New York State Governor M. Cuomo commissioned a Fix NYC Advisory Panel to also address traffic congestion. The group published its first report in January, offered several recommendations, such as reforms within the New York City Taxi and Limousine Commission in response to a significant increase in the use of ride hailing apps, as well as imposing surcharges on such vehicles; and the creation of zone pricing which would encompass Manhattan s Central Business District (CBD) extending from 60th Street to the south, with the exception of FDR Drive from the Brooklyn Bridge to 60th Street. There was a split response from our members regarding congestion pricing in our 2017 Member Issues Survey. While 49 percent of respondents agreed that some form of congestion pricing needs to be implemented, 51 percent disagreed. However, in the same survey, we asked our members to identify the quality of life issues that are most concerning, to which 41 percent cited traffic congestion as being a severe problem, thus making this the number one quality of life issue for our members. Advocates for congestion pricing see its implementation as a common sense approach to funding our roadways, while simultaneously reducing the burden of heavy traffic in the city s CBD. However, opponents see the measure as creating an additional, and unfair financial burden to businesses and residents from the outer boroughs of New York City. page 19

22 Taking into consideration the feedback from our members, the Brooklyn Chamber recommends a collaborative review of all existing proposals by our elected leaders. It is clear that traffic congestion is a growing economic and environmental issue. However, attempts at resolving it should include a fair distribution of fees per user throughout all five boroughs, and there should be a transparent approach regarding roadway maintenance projects that will benefit from these funds. A09861 (LENTOL) RELATES TO MITIGATING THE CLOSURE OF THE L SUBWAY LINE SUPPORT The Metropolitan Transportation Authority (MTA) and New York City Department of Transportation (DOT) have announced that work on the Canarsie tube will commence in April 2019 and last for approximately 15 months. The L train is a critical link between North Brooklyn and Manhattan, as well as a connection between thriving neighborhoods across Brooklyn. From Canarsie to Bushwick to Williamsburg, commuters are dependent on L train service. Once the L train closes for tunnel repairs, the MTA and DOT predict that 75 to 85 percent of riders will use alternate subway lines such as the G, J, M and Z, whereas five to 15 percent are expected to utilize additional shuttle buses. Further three to five percent are predicted to use ferry service, whereas five to seven percent will make use of bikes, taxis and ride sharing apps. These changes will have a negative impact on local businesses, which will in turn cripple their revenue streams. A09861 is a timely piece of legislation that would authorize the MTA to develop a plan to mitigate the individual and economic hardships experienced by a temporary closure of the L subway line for repairs. It also establishes a sales tax exemption for goods and services sold along the L subway line closure area. Further, this bill will establishes a tax abatement for commercial properties along the L subway line. Therefore, we urge our legislators to add their support to A09861 which will help to reduce the burden of existing high operational costs in the face of potential decreased sales. In the long run, this bill would create a solid foundation for affected business owners to better withstand loss of revenue throughout the repair period, so that they may flourish once the L train reopens in the summer of page 20

23 S7698 (GOLDEN) ENACT THE TRANSFORMATIONAL INFRASTURCTURE AND REVITALIZATION PROJECT ACT SUPPORT If enacted, this bill will allow New York City to use design-build contracts for the Brooklyn-Queens Expressway reconstruction project. The Brooklyn Chamber joins the Brooklyn Heights Association in expressing support for Design-Build to be applied to the BQE reconstruction project. The New York City Department of Transportation (DOT) announced that the accelerating deterioration of the highway the one-and-a-half-mile segment known as the triple cantilever may require diverting 16,000 trucks daily onto local streets if the BQE project is not completed by Under the traditional Design-Bid-Build approach, the completion would extend several years beyond 2026, thereby precipitating a very serious traffic congestion issue for the entire borough of Brooklyn and have adverse economic consequences for local businesses and environmental impacts on residential communities. On the other hand, Design-Build would greatly reduce the time and cost of the BQE project, as the system would utilize a single contractor who would be responsible for both the design and construction of that project. A prime example of this is the replacement to the Kosciuszko Bridge, which was delivered on time, and within budget, according to the New York Department of Transportation. We urge our legislators to address the specific use of Design-Build for the BQE reconstruction project by supporting S7698 (Golden) in this session. We also encourage support of similar bills such as A08134 (Benedetto)/S06427 (Lanza) which would authorize the use of Design-Build in New York City projects. This approach will significantly increase the efficiency of projects within our city. PROMOTE THE INTEGRATION OF AUTONOMOUS VEHICLES IN NEW YORK STATE SUPPORT Autonomous vehicles represent the future of transportation, and as an emerging hub for innovation and technology, New York should embrace the prospect of testing and integration of such vehicles. According to the American Car Rental Association, efficient use of this technology could potentially reduce the number of deaths and injuries related to human error. Governor Andrew Cuomo expressed support for this cutting-edge technology in his 2018 State of the State address and announced that General Motors will begin in New York City streets later this year. We encourage lawmakers to continue to work with industry leaders, and other stakeholders, on creating a framework to resolve potential challenges such as liability, ownership of motor vehicles, taxes and fees, as well as privacy and cybersecurity, in order page 21

24 to create a path for the introduction of autonomous vehicles into the light-duty motor vehicle fleet within the next decade. RIGHT OF WAY FEES ON BROADBAND OPPOSE The FY 2019 Executive Budget Proposal includes two provisions that will impact broadband deployment in New York State. The Brooklyn Chamber supports one provision, which would facilitate and encourage broadband deployment by establishing a uniform process for the siting of small cell wireless facilities. However, we oppose the other provision, which would deter such deployment by authorizing the New York State Department of Transportation (DOT) Department to impose new fees for fiber optic cables installed along state highway rights-of-way. Many utility companies already pay various fees tied to their networks (such as real property taxes, GRT, video franchise fees, and a host of other state and local taxes). While the bill does carve out, from the new tax, those specific companies that are deploying fiber optics pursuant to the state s broadband grant program, this represents less than one percent of the state. Industry studies predict future fiber deployment and network upgrades will require significant investment in order to keep up with technology and consumer demand. The vast majority of new broadband investments will be subject to this new taxing scheme. For these reasons, we respectfully urge that the changes to the Highway Law and the Transportation Corporations Law, made by 1 and 2 of Part F. be eliminated from this proposal. ECONOMIC DEVELOPMENT AND INDUSTRIAL POLICY REVITALIZATION OF BROADWAY JUNCTION SUPPORT The Brooklyn Chamber cited this vision in its Comprehensive Economic Development Strategy in which this area could be repositioned towards mixed education and mixed commercial uses to create new workforce delivery systems and a commercial center that foster economic opportunity for all. A new institutional presence would anchor densified development and provide pathways to new employment opportunities, while rezoning industrial land and leveraging public assets could provide new opportunities for commercial development and densification. page 22

25 AFFORDABLE MANUFACTURING SPACE AND SHIFTS IN REAL ESTATE MARKET SUPPORT Specialty manufacturers in Brooklyn tend to be smaller firms, with fewer than 20 employees and small-run production. As such, they tend to need smaller manufacturing facilities that are close in proximity to major transportation hubs. However, there is a limited stock of small manufacturing spaces in Brooklyn, and those that are available are out of the square footage price point affordable for small manufacturers. The average asking rent for an industrial property in Brooklyn ranges (depending on location and amenities) from $15 PSF to $30 PSF, and this figure increases dramatically for more desired, central areas of Brooklyn. Asking rents have increased an average of 15 percent year over year since 2011, while vacancies are extremely low and stock is continually reduced by industrial property conversion. We need continued support for manufacturing facilities such as Industry City, the Brooklyn Navy Yard, Brooklyn Army Terminal, and 630 Flushing Avenue, as well as incentives to develop additional manufacturing facilities for smaller tenants. In addition, we need to protect designated Industrial Business Zones, offer associated benefits such as the Real Estate Associate Program (REAP) and Industrial & Commercial Abatement Program (ICAP), affordable space and local business development resources. A00128 (CAHILL) ESTABLISH THE NEW YORK CRAFT BEVERAGE COUNCIL SUPPORT If enacted, this bill would create and implement a New York Beverage Council within the Department of Economic Development to promote New York as a premiere producer of high quality wines, spirits and craft brews. New York is a nationwide leader in the production of craft beverages, and this industry will benefit greatly from strategic marketing which will increase awareness of these products among retailers, restaurants and general consumers. Enhanced promotion will lead to improved sales which will increase job creation. The Brooklyn Chamber is a strong advocate for promoting the local craft beverage industry, and actively provides such opportunities through its Drink Local campaign, which is supported largely through an Empire State Development Craft Beverage grant. Some of its highlights in 2016 included production of a Drink Local week in October, with 40 participating businesses, a Brooklyn Craft Beverage Familiarization Tour with 21 participants from the tourism and craft beverage industry, and a delegation trip for Brooklyn buyers, to the Little Finger Lakes and Buffalo, to try new New York State products and meet the makers. The Brooklyn Chamber s Explore Brooklyn tourism department has page 23

26 been producing and printing trail maps since 2015 to help promote local beverage makers. Therefore, the Brooklyn Chamber of Commerce supports A00128 and similar legislation to give New York s craft beverage industry additional support to grow and expand. SKILLED WORKFORCE AND SECTOR-BASED TRAINING OPPORTUNITIES SUPPORT Jobs in the manufacturing sector are pathways to the middle class, especially for immigrants and people with low educational attainment. Wages in the manufacturing sector tend to be higher than wages in other industries such as retail, transportation, administration and entertainment. Not enough workers are entering the manufacturing job market by way of training, and those who possess the required skills are aging out of the workforce at a faster rate than those entering the workforce. Not only does this affect the job prospects and economic prosperity of our population, but it also affects retention of manufacturing firms, as they cannot remain competitive and grow if they cannot find skilled workers to fill available positions. The positions in question range across manufacturing sub-sectors such as apparel production, furniture production, and food manufacturing, which are the most prevalent types of firms in Brooklyn. Jobs such as sewing machine operators, pattern makers, cabinet makers, production assistants, woodworkers, and welders are just some of the positions that are increasingly difficult to fill with today s workforce. The city s workforce development system is not adequately responding to the manufacturing skills gap. Manufacturing training programs for adults in New York are extremely limited and do not meet the current demand of the sector. In the Brooklyn Chamber s 2017 Member Issues Survey, the process of finding and hiring reliable and qualified workers ranked in the top five issues considered to impede the success of businesses. In this survey, 41 percent of respondents cited this as being a problem, while 16 percent expressed that it is a severe problem. Programs that encourage and incentivize on-the-job training need to be expanded and enhanced, as these are most effective in delivering much-needed technical and soft skills training. On-the-job training improves turnover rates, as they require time investment from both parties the prospective employees and their employers. page 24

27 HIGHER EDUCATION INCREASE ACCESS TO HIGHER EDUCATION FOR ALL STUDENTS SUPPORT New York State has long had a robust and successful higher education system that has historically been built on a partnership between the state, public institutions and private institutions. This partnership has been evident through many long-standing financial aid programs such as the Tuition Assistance Program (TAP) and Direct Institutional ( Bundy ) Aid program. It is vital that such a balance between state, public and private institutions continues so that students are able to attend schools of their choice, matching not only their academic potential, but also their individual needs. The Brooklyn Chamber supports expanding the Tuition Assistance Program to raise the maximum TAP award from $5,165 to $6,750 and continuing to fully fund the TAP program in the upcoming state budget. Further, the Brooklyn Chamber asks the New York State Legislature to continue to fund the Direct Institutional ( Bundy ) Aid program that the Governor has proposed discontinuing in his FY 2019 Executive Budget. This long-standing program assists over 100 private institutions in New York to provide institutional financial aid awards and other assistance to students and should be continued at $35 million in the upcoming budget. At a time when private institutions that primarily serve New York State residents have seen a nine percent average decrease in enrollment statewide, continuing programs such as Bundy Aid are critical to ensuring that robust partnership between public and private institutions, and the state, continue well into the future. NEW YORK STATE OPPORTUNITIES PROGRAMS SUPPORT The Opportunities Programs, including the Higher Education Opportunity Program (HEOP), the Educational Opportunity Program (EOP), the Collegiate Science and Technology Entry Program (CSTEP), Search for Education Elevation and Knowledge (SEEK), among others, are critical programs offering financial aid, academic support services and mentorship to underrepresented students. The Governor s budget proposes to reduce funding to these programs even though thousands of students benefit from these programs statewide and demand constantly exceeds current funding available. The Brooklyn Chamber supports restoring the Opportunities Programs funding to levels consistent with the FY 2018 enacted budget. page 25

28 EXCELSIOR SCHOLARHIP PROGRAM REVIEW RECOMMENDED In FY 2018, the State enacted the Excelsior Scholarship, which makes SUNY and CUNY tuition free for students who meet income eligibility requirements and are on track to graduate on time. Enrollment across CUNY and SUNY grew in the fall of 2017 and applications for the fall 2018 freshman class are up 10 percent when compared with 2017 data. The Brooklyn Chamber of Commerce urges the Cuomo administration and the New York State Legislature to have extensive and ongoing dialogue with stakeholders to give consideration to expanding the current program so as to incentivize enrollment in both public and private institutions. NEW YORK STATE DREAM ACT SUPPORT The Brooklyn Chamber supports the New York State DREAM Act, which would enable undocumented students who have graduated New York high schools to be eligible for financial aid programs already offered to their peers. Immigrants and their children truly define the culture of New York, especially in Brooklyn. Every year, thousands of immigrant graduates contribute enormously to our city and state as productive members of the workforce. Expanding educational opportunities for children of immigrants fosters robust and diverse economies by ensuring an educated and technologically literate workforce, encompassing both U.S. citizens and children of immigrants. A03039 (Moya)/ S00471-A (Peralta), would have enacted the New York State DREAM Act by creating the New York DREAM fund commission passed in the New York State Assembly during the 2017 session, but did not pass in the Senate. We respectfully ask our legislators to craft legislation that would create a pathway to educational funds for DREAMers in this session. WORKFORCE DEVELOPMENT EXPAND THE NEW YORK YOUTH JOBS PROGRAM SUPPORT In his 2018 State of the State address, Governor Cuomo proposed increasing the maximum credit available to certified New York employers by 50 percent thus raising the maximum tax credit from $5,000 to $7,500 for certified youth employed full-time, and from $2,500 to $3,750 for those page 26

29 employed part-time. The Governor also envisions directing the New York State Department of Labor (DOL) to align and connect employers and youth participating in the Youth Jobs Program, with regional workforce development efforts of SUNY, CUNY and New York s BOCES. Unemployed and at-risk youth between the ages of 16 and 24 will be the beneficiaries of this program. The Governor s report noted that since the program s inception, over 78,000 youth have been hired by more than 2,200 participating employers, and in 2017 more than 26,000 young people were hired through this program. Between 2010 and 2016, minority unemployment decreased eight percent, from 25 percent to 17 percent. Residents of underserved and minority communities face very real challenges in securing employment and this measure will ensure that they have equal opportunities to be able to access stable, good paying jobs, and is an important factor in helping to close the unemployment gap and create stronger communities across the state. A02225A (BRONSON)/ S03395-A (GALLIVAN) ENACT THE EMPIRE STATE APPRENTICESHIP PROGRAM SUPPORT Under this legislation, a tax credit will be established to encourage apprenticeships in non-traditional and growing industries among nonprofits and small businesses. There is a strong need for apprenticeships that focus specifically on preparing workers to meet the rapidly changing needs in technology and innovation. Some Brooklyn Chamber members have reported challenges finding workers who possess digital, technical and software skills in meeting the needs of their operations. The tax incentives and grants associated with this program will allow employers the opportunity to expand their businesses and grow our economy. EXAMINE ELIMINATING THE MINIMUM WAGE TIP CREDIT REVIEW RECOMMENDED The New York State Department of Labor (DOL) defines a tip credit as the amount of tips earned by an employee that the law allows his or her employer to take as a credit against the minimum wage requirements for that industry. Governor Cuomo proposed an elimination of the minimum wage tip credit in his 2018 State of the State Address, and if enacted, would direct the New York State Labor Commissioner to schedule public hearings to examine the issue. The theory presented is that businesses such as restaurants and car washes factor tip credits into their workers wages, which then amounts to less than the state s current minimum wage amount. page 27

30 In the Brooklyn Chamber s 2017 Member Issues Survey, 61 percent of respondents supported the Governor s proposal, whereas 39 percent were opposed to it. Proponents see this measure as an important step towards strengthening economic justice across the state. However, opponents many of whom are in the restaurant industry view this proposal as an additional red-tape issue that may have unintended consequences for small businesses and workers. This is in light of new operational costs that have emerged within the past year, related to the recent enactment of minimum wage increases, paid family leave allowances and the Fair Workweek package at the city level. According to an article published on Forbes.com in January 2018 by Andrew Rigie, Executive Director of New York City Hospitality Alliance, there are thousands of tipped employees throughout New York who make well in excess of the minimum wage. The article further stated that a survey of the alliance s membership revealed that 486 city restaurants, which employ nearly 14,000 tipped workers, found that those servers earn on average, $25 per hour. While the intention behind the Governor s proposal is good, the data shows that many small businesses are already giving their workers the opportunity to earn above minimum wage. However, imposing yet another operational challenge means that customers may see a noticeable increase in menu prices, and business owners may be forced to reduce the hours of their workers, and in some cases, may even have to close their doors. Therefore, the Brooklyn Chamber of Commerce recommends a review of the Governor s proposal, and looks forward to hearing the feedback from stakeholders at public hearings hosted by DOL. As the leading voice of the Brooklyn business community, we would also be interested in helping to facilitate the process by partnering with DOL to host an informative event for Brooklyn businesses. ALLOW PUBLIC ACCOUNTING FIRMS TO HAVE MINORITY OWNERSHIP BY INDIVIDUALS WHO ARE NOT CERTIFIED PUBLIC ACCOUNTANTS SUPPORT For more than a decade, the accounting industry has been seeking relief from a New York State law that restricts the number of Non-Certified Public Accountant (non-cpa) industry experts who can have ownership interests in an accounting firm. A change in this law is necessary because the demands on professional services firms have diversified as a result of changes in technology, cybersecurity, health care, international finance and other factors that require expertise beyond that of a CPA. If New York is going to retain its status as a headquarters of professional services, it must follow 48 other states in allowing accounting firms to diversify their ownership to reflect business needs. In his FY 2019 Executive Budget, Governor Cuomo included a proposal that would allow public accounting firms to have minority ownership by individuals who are non-cpas. We urge the Assembly and Senate to do the same in their budget proposals. This legislation page 28

31 enables firm ownership to be 49 percent non-cpas, with 51 percent CPAs holding a majority. Without this action, the growth of professional services in New York State will be curtailed and New York headquartered firms will be disadvantaged in attracting the talent required to service global clients. A survey of large firms (excluding the Big Four) conducted by the New York State Society of CPAs shows that the average partner salary is $455,433. Every new partner in these firms creates an estimated seven additional support jobs. If, as projected, passage of this legislation would result in 145 new partners in New York in the coming year, and the state could realize at least 1,145 new jobs. This adds up to more than $66 million in total wages nearly $6.5 million of which would go back to the state via income tax. We urge you to make passage of this legislation a priority. New York cannot remain competitive for talent and jobs if we fail to allow our businesses to adapt to the rapidly changing global economy. INCENTIVES FUNDING FOR ON-THE-JOB TRAINING SUPPORT On-the-Job Training (OJT) incentives support workforce development efforts by connecting employers to a diverse workforce and providing individualized training on the job. Through our Good Help program, the Brooklyn Chamber is able to offer OJT services to businesses. A company can meet skills shortages and begin to build a solid workforce for its future business needs through OJT reimbursements. The OJT funds are allocated to support small business owners when hiring or advancing an incumbent worker. Through OJT, business funding is reimbursed up to 50 percent of an incumbent worker s salary for up to 200 hours of OJT. It not only alleviates the financial burden of training a new employee, but also enhances the opportunities for individuals who may not have the exact skills needed by an employer. A02007 (FAHY)/S03486 (PERALTA) SCHEDULES THAT WORK ACT REVIEW RECOMMENDED This proposed legislation will require employers with 50 or more employees in retail, food service or cleaning industries in New York State adhere to the Schedules That Work Act. While well meaning, this proposal will hurt small businesses, and by extension employees, since it will inhibit employers ability to allow for shift swapping and schedule flexibility. Furthermore, this and similar proposals from the New York City Council prove to be contradictory, since the Paid Sick Leave law calls on small business owners to provide page 29

32 time off for emergencies. In such cases, business owners must be allowed some level of flexibility to make necessary changes to staffing schedules so their businesses can meet the needs of customers, and ultimately keep their doors open. For the past six years, government regulations, fines and violations have been one of the top 10 obstacles to doing business in Brooklyn, based on responses gathered from the Brooklyn Chamber s Annual Member Issues Survey. This legislation will make the above-mentioned concern worse, since small businesses are being faced with mounting red tape issues and penalties, making it even more difficult to thrive, and create jobs. In addition, provisions related to the right to private action can lead to frivolous lawsuits against employers. Instead of additional restrictive bills, we should advocate for effective communication between employers and employees regarding scheduling, with the goal of reaching a consensus that would be beneficial to both parties. ENERGY AND ENVIRONMENT A01705B (WOERNER)/ S01225B (GRIFFO) ESTABLISH THE NEW YORK STATE CLEAN ENERGY TECH PRODUCTION PROGRAM SUPPORT If enacted, this bill would direct the Public Service Commission (PSC) to establish a self-direct program for its industrial, commercial, and large consumption customers. The bill would create an incentive for these establishments to adopt more energy-efficient practices such as the use of renewable energy sources, such as wind, solar, geothermal, and anaerobic digestion. It would also make use of distributed energy resources, such as microgrids, rooftop solar, fuel cells and other on-site power supplies. This forward thinking approach will prove more cost-effective for large energy users such as industrial facilities and institutional campuses, and give them the flexibility to better invest in clean energy sources and equipment for their own sites. Therefore, the Brooklyn Chamber of Commerce encourages the passage of this legislation. page 30

33 A06679A (CRESPO)/(S03511A) RANZENHOFER CREATE A SMALL BUSINESS ELECTRIC ENERGY TAX CREDIT SUPPORT According to the Brooklyn Chamber s 2017 Member Issues Survey, 57 percent of our members employ less than 20 employees at their Brooklyn locations. Of that number 39 percent have reported their 2017 revenue to be $300,000 or less. These figures reflect the fact that small businesses are key to creating jobs and economic development in communities, but are constantly facing the struggle of seemingly having to do more with limited financial resources. Establishments with less than 20 employees will be eligible to apply for this tax credit. Passage of this bill will promote efficient energy use which is not only great for the environment, but will save small businesses money on energy consumption. INCREASE ACCESS TO AFFORDABLE, CLEAN-BURNING NATURAL GAS SUPPORT As New York City s demand for natural gas increases, the associated energy infrastructure will become even more vital. The Northeast Supply Enhancement project will expand critical natural gas pipeline infrastructure in Pennsylvania, New Jersey and New York to help meet the region s growing demand for natural gas. With natural gas s relatively lower carbon emissions (compared to higher carbon fuel sources), this project has the potential to displace up to 15.6 million tons of CO2 annually comparable to removing three million passenger cars from roadways. The Northeast Supply Enhancement project will increase Transco pipeline deliveries to National Grid the largest distributor of natural gas in the northeastern U.S. - by 400 million cubic feet per day (enough natural gas to serve the daily needs of about 2.3 million homes) for the 2019/2020 winter heating season. As the City continues to phase out the use of heavy fuel oils, and its population and economy grows, its need for natural gas will grow as well. Once complete, the Northeast Supply Enhancement project will help provide affordable, clean and reliable energy to northeastern consumers served by National Grid in Brooklyn, Queens, Staten Island and Long Island. page 31

34 DIVERSITY AND INCLUSION CALL ON NEW YORK STATE COMMON RETIREMENT FUND TO INVEST IN COMPANIES WITH WOMEN AND MINORITY LEADERSHIP SUPPORT The New York State Common Retirement Fund (NYSCRF) is the third largest public pension plan in the nation with an audited value of $192.4 billion in assets held in trust for the retirement security of the more than one million members of the New York State and Local Retirement Systems (NYSLRS). In Governor Cuomo s 2018 State of the State address, he issued a proposal that would see the NYSCRF systematically invest in companies that embody corporate diversity, by having adequate women and minority representation in leadership and on boards of directors. While New York State has made notable improvements to improve M/WBE access to procurement opportunities, this population still remains largely underrepresented as it relates to business ownership and leadership roles in corporations. This proposal will help to raise the standards of diversity across the board, and open new doors for women and minority leadership. REAUTHORIZE M/WBE PROGRAM LEGISLATION TO INCLUDE ALL STATE-FUNDED CONTRACTS ISSUED BY LOCALITIES SUPPORT In 2014, Governor Cuomo announced an increase of M/WBE participation requirement in state contracts, with a 30 percent M/WBE utilization goal, the highest in the nation. This most recent proposal represents an expansion of the program, whereby contracts issued by localities and other entities which are funded by the state must also comply with the 30 percent M/WBE utilization mandate. New York is experiencing rapid growth and economic development and it is very important that M/WBEs are included in these successes and given an opportunity to be an integral part of our state s continued growth and development. Therefore, the Brooklyn Chamber of Commerce supports the further expansion of the M/WBE program. page 32

35 A09631 (BICHOTTE) A09631 (BICHOTTE) REMOVE $3.5 MILLION CAP FOR M/WBE PARTICIPATION SUPPORT Under the current law, certain M/WBEs with a personal net of $3.5 million or more are not eligible for state certification. A09631 would loosen existing restrictions on M/WBE participation, and funnel more procurement opportunities to companies that are experiencing growth. The ability to experience continued growth and increased profits are key goals of any business owner. These factors empower business owners to reach their full potential, and be better able to invest in their communities and provide jobs. Continued growth should be encouraged, and the passage of A09631 would remove barriers to success. Therefore, the Brooklyn Chamber of Commerce urges its legislative representatives to support this bill. A04430 (BLAKE) ENCOURAGES PARTICIPATION OF M/WBES IN STATE CONTRACTS SUPPORT The Brooklyn Chamber of Commerce supports this bill because it will encourage the participation of M/WBEs in state contracts by making it more feasible for them to secure such contracts. We applaud both New York State and New York City in their bid to increase M/WBE contract utilization, and giving them the tools needed to have access, and be prepared to take advantage of such opportunities. In the long run, this will improve the state s M/WBE supplier base and fine-tune the process by which contractors are able to connect with this group of entrepreneurs for services. The Brooklyn Chamber is a strong advocate for such measures and works to certify women and minority businesses through New York City Business Solutions Brooklyn Center. In addition, the Brooklyn Chamber was awarded funding in 2017 to provide services to M/WBEs in Brooklyn and Suffolk County through the New York City Department of Small Business Services. We look forward to continued partnership with legislators and economic development organizations to increase the likelihood of M/WBEs obtaining contracts. IMPROVED CONNECTION BETWEEN NEW YORK CITY, NEW YORK STATE AND FEDERAL CERTIFICATION PROCESSES SUPPORT As it stands, M/WBEs are required to be certified separately with New York City, New York State and federal entities, which creates a serious administrative burden, and can discourage small businesses from applying. page 33

36 Each application is very lengthy and complex, so it is very taxing for business owners to position themselves to be able to have access to procurement opportunities at all levels of government. A standard application that can be accessed online across a unified New York City, New York State and Federal platform would greatly improve the process of certification for M/WBEs. We understand that certain certifying requirements differ across agencies. However, if the standard application offers supplemental documents that can be sent in separately, this will still help to make the process faster and more efficient. In the Brooklyn Chamber s 2016 State Member Issues Survey, 21 percent of respondents reported that red-tape issues were a severe problem. While we applaud both the city and state for setting high M/WBE contracting goals, we believe that this is an excellent opportunity for multi level governmental collaboration, in the interest of meeting and exceeding contracting goals. TAX CREDITS FOR VETERAN ENTREPRENEURSHIP SUPPORT We owe a great debt of gratitude to our veterans, who have risked their lives to protect the freedom of the American people. We encourage our legislators to work together to provide a strong foundation for them to reenter their communities as successful entrepreneurs. We will not only pay it forward, but also encourage economic development and give veterans an opportunity to continue to make valuable contributions to our communities. The veteran entrepreneur faces many challenges. Access to financing is usually at the top of the list. Although there are specific funding programs for veterans throughout New York, operated through the Small Business Administration (SBA) and New York State Small Business Development Council (SBDC), sometimes there are not enough resources to help the veteran entrepreneur gain access to traditional and non-traditional forms of financing. Investing in our veterans will help to support their transition to civilian life and enable them to contribute to job creation and overall economic development. A02165 (BRONSON)/ S00055 (HOYLMAN) PARTICIPATION BY LGBT, DISABILITY AND VETERAN-OWNED BUSINESSES IN STATE CONTRACTS SUPPORT The New York State Supplier Diversity Act establishes a new Division of Supplier Diversity within the Office of General Services to encourage greater diversity in New York State s procurement process by ensuring equal access to contracting opportunities for certified LGBT, disability, and veteran-owned small businesses. The Supplier Diversity Act would make New York the first state to legislatively establish page 34

37 a comprehensive, statewide program to provide traditionally underrepresented small businesses with greater economic opportunity through meaningful participation in New York State s nearly $240 billion contracting and procurement system. This legislation, which expands on recent initiatives in Massachusetts and California, will cultivate innovation, create jobs, and drive economic growth for an estimated 86,000 LGBT-owned, 25,000 veteran-owned, and thousands of disability-owned businesses throughout the state. The bill also builds upon the success that New York s M/WBE program has had in promoting the participation of minority and women - owned business enterprises in state contracting. ARTS, CULTURE AND TOURISM EXPAND HOSPITALITY AND TOURISM INITIATIVES IN CONEY ISLAND SUPPORT The Brooklyn Chamber s Comprehensive Economic Development Strategy contained a vision of Coney Island leveraging its existing strengths including access to good transit, and its proximity to JFK airport and diversify its residential and commercial offerings to grow visitation to Brooklyn, attract new investment, and enhance economic opportunity for local residents. New hospitality/tourism and retail anchors on open development sites in South Brooklyn could foster additional entertainment and tourism growth that establishes Coney Island as a hospitality and entertainment destination. A hospitality education center could leverage proximity to Kingsborough College and its Culinary Arts Program to foster innovation and small business. A02670B (LENTOL)/ S03159A (GOLDEN) TO ESTABLISH THE EMPIRE MUSIC PRODUCTION CREDIT AND THE EMPIRE STATE DIGITAL GAMING MEDIA PRODUCTION CREDIT SUPPORT For the past three years, the Brooklyn Chamber of Commerce has advocated for a tax credit to incentivize the production of music across the state. The last bill that we supported for this measure was A10083B/S7485B, which was vetoed by Governor Cuomo in November A02670B/S03159 is a newer bill aimed at remaking the digital media gaming and music credits adopted in Part K of the Revenue bill in last year s budget to provide meaningful and effective incentives two industries essential to the future of the state. page 35

38 New York artists and gaming start-ups are increasingly faced with the choice of producing locally, or traveling to other places, in search of more affordable production services. Production tax credits will provide a strong stimulus to these industries statewide. It will also encourage out-of-state artists to do productions in New York. We also support programs that highlight the local music industry, such as Make Music New York. Now entering its 12th year, Make Music New York is a unique festival that features more than 1,000 free concerts in public spaces throughout the five boroughs of New York City, all on June 21, the first day of summer. MMNY takes place simultaneously with similar festivities in more than 750 cities around the world, a global celebration of music making. The festival is a welcome occurrence in Brooklyn and continues to increase the pedestrian experience on many locations. It is a family-friendly event that merchants and neighborhoods residents welcome. A02042 (LENTOL)/S02852 (PARKER) TO AUTHORIZE DOCUMENTARY FILMS TO QUALIFY FOR EMPIRE STATE FILM PRODUCTION TAX CREDIT SUPPORT The goal of this bill is to authorize documentary films to be qualified for inclusion in the Empire State Film Production Tax Credit. Documentaries have been excluded from this tax credit, yet they require resources and effort on a similar scale to the films that the tax credit covers. This bill will make it more affordable for documentary filmmakers to work in New York State. As New York continues to strengthen its brand and gain worldwide recognition, the art of making documentaries that track the evolving nature of development throughout New York State is important. The Brooklyn Chamber is in support of A02042 (Lentol)/S02852(Parker), which proposes an amendment to make documentaries a Qualified Film and therefore eligible to receive tax credits. This bill will make it more affordable for documentary filmmakers to work in New York State and, in so doing, contribute directly to economic development. page 36

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