NEW YORK STATE LEGISLATIVE AGENDA

Transcription

1 NEW YORK STATE LEGISLATIVE AGENDA 2017

2 TABLE OF CONTENTS JOINT LETTER FROM BOARD CHAIR, PRESIDENT & CEO, AND GOVERNMENT AFFAIRS COMMITTEE CO-CHAIRS 1 NEW YORK STATE REPRESENTATIVES AND THE BROOKLYN DELEGATION 2-3 OUR MEMBERSHIP 4-5 OVERVIEW OF OUR 2016 MEMBER ISSUES SURVEY 6-7 WHERE WE STAND IN SUMMARY 8-9 WHERE WE STAND IN DETAIL Small Business 10 Transportation and Infrastructure 14 Real Estate and Development 17 Healthcare 19 Manufacturing 22 Energy 24 Education 25 Workforce Development 27 Minority/Women-Owned Business Enterprises (M/WBEs) 29 Veteran Affairs 31 Arts and Culture 32 Travel and Tourism 34 BROOKLYN NIGHT SPONSORS 38 PROGRAMS AND SERVICES BACK COVER TABLE OF CONTENTS

3 Dear Colleague, The Brooklyn Chamber of Commerce is pleased to present its 2017 New York State Legislative Agenda. This document reflects some of the most pressing issues and concerns of our members, as well as the Brooklyn business community as a whole. The Brooklyn Chamber promotes economic development across the borough and serves as an advocate for its member businesses. The Brooklyn Alliance is the not-for-profit economic development affiliate of the Chamber, which works to address the needs of businesses through direct business assistance programs. As we get ready to acknowledge our 100th anniversary in February, 2018, we consider it a true honor to continue to be a strong advocate for Brooklyn business and economic development across the borough. On March 13 and 14, 2017, we will be joined by a delegation of more than 90 Brooklyn business leaders as we meet with elected officials and representatives in the New York State Assembly and Senate to advocate for continued economic growth in Brooklyn. With over 2,100 active members, we are the largest Chamber in New York and we absolutely could not have done it without you. Your continued support has enabled the Brooklyn Chamber to develop an unparalleled array of economic development initiatives and direct service programs, and we are proud to serve as a model of what a local Chamber of Commerce can do to proactively spur job creation in New York State. In addition, the Brooklyn Chamber, through its Board of Directors and Government Affairs Committee, has forged key relationships with elected officials and leaders of government agencies, making us a forceful advocate for the business community and helping us to secure major investments for the economic and community development of Brooklyn. We look forward to meeting with you and bringing you up to date on some of the exciting developments taking place in the Borough of Kings! For updates on our programs and events, please visit our website at Best regards, Andrew Hoan President & 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 Speaker, NYS Assembly Hon. Carl E. Heastie Majority Leader, NYS Senate Hon. John J. Flanagan 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 M. Dilan Hon. Pamela Harris Hon. Dov Hikind Hon. Joseph R. Lentol Hon. Nicole Malliotakis Hon. Walter T. Mosley Hon. Félix W. 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. Velmanette Montgomery Hon. Kevin S. Parker Hon. Roxanne J. Persaud Hon. Diane J. Savino Hon. Daniel L. Squadron 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 PERCENTAGE OF MEMBERSHIP BY TRADE page 5

8 OVERVIEW OF OUR 2016 MEMBER ISSUES 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: 1Traffic and Transportation, for the first time, is the leading issue that limits the growth of our members businesses. In 2015, the number one issue limiting growth was Government Regulation. 21% 27% TRAFFIC/TRANSPORTATION PROBLEMS 23% COST AND AVAILABILITY OF COMMERCIAL SPACE GOVERNMENT REGULATIONS, FINES, AND VIOLATIONS 2 Labor costs overtook real estate taxes as the number one cost of doing business problem that was classified as severe for our members. page 6

9 3 Over 80 percent of our businesses agree that expanding the use of ridesharing and home-sharing would benefit the business community. 4 Respondents identified the BQX as the number one transportation project that would help the business community in the borough. 5 Half of Brooklyn businesses consider parking availability to be the most severe quality of life issue affecting businesses. page 7

10 WHERE WE STAND SMALL BUSINESS Displacement Prevention Initiative for Small Businesses SUPPORT A02374 (Lentol) provides a Tax Credit for Taxpayers who Purchase Local Materials SUPPORT A01709 (Mosley)/S02196 (Parker) relates to Incubators for Entrepreneurial Development SUPPORT Enact Legislation that Supports an Innovative/Shared Economy SUPPORT Upstate/Downstate Vision Task Force SUPPORT Extension of the Relocation & Employment Assistance Program (REAP) SUPPORT Marketplace Provider Sales Tax OPPOSE TRANSPORTATION AND INFRASTRUCTURE MTA Funding Cuts OPPOSE Incentives for Businesses along L and M Train Lines SUPPORT Shuttle Service to Address Partial R Train Shutdown SUPPORT Improved F Train Service SUPPORT Brooklyn Queens Connector (BQX) SUPPORT Ferry Service Expansion in Brooklyn SUPPORT Design-Build SUPPORT REAL ESTATE AND DEVELOPMENT Affordable New York SUPPORT A00579A (Braunstein)/S01125-A (Avella) relates to the Eligibility of J-51 Tax Abatements to Reflect Cost of Living SUPPORT Re-envisioning of the Red Hook Waterfront SUPPORT HEALTH CARE Maintain Role of NY State of Health SUPPORT Additional Funding for the Community Health Advocates (CHA) Program SUPPORT Medical Malpractice Regulation Reform SUPPORT Nurse Staffing Ratios OPPOSE Disclosure of Proprietary Drug Data and Biopharmaceutical Price Controls OPPOSE MANUFACTURING A00128 (Cahill) establishes the New York Craft Beverage Council SUPPORT Affordable Manufacturing Space and Shifts in Real Estate Market SUPPORT Skilled Workforce and Sector-Based Training Opportunities SUPPORT page 8

11 ENERGY Increased Access to Affordable, Clean-Burning Natural Gas SUPPORT Expiration of Temporary Utility Surcharge Commonly Referred to as 18-a SUPPORT EDUCATION Mayoral Control of New York City Schools SUPPORT Financial Aid to Students at Public and Private Higher Education Institutions SUPPORT New York State Opportunities Programs SUPPORT NYS DREAM Act SUPPORT Make SUNY and CUNY Tuition-Free REVIEW RECOMMENDED WORKFORCE DEVELOPMENT A00391 (Skartados) to establish a Small Business Tax Credit for the Employment of Unemployed Veterans SUPPORT Incentives Funding for On-the-Job Training SUPPORT Summer Youth Employment Program SUPPORT A02007 (Fahy)/ S03486 (Peralta) relates to the Schedules that Work Act REVIEW RECOMMENDED MINORITY/WOMEN-OWNED BUSINESS ENTERPRISES (M/WBES) A04430 (Blake) encourages Participation of M/WBEs in State Contracts SUPPORT Improved Connection between NYC, NYS and Federal Certification Processes SUPPORT Short List of Industries Outside of Construction SUPPORT Accountability Process for Prime Contractors to use M/WBE Companies SUPPORT VETERAN AFFAIRS Tax Credits for Veteran Entrepreneurship SUPPORT ARTS AND CULTURE Brooklyn Cultural District SUPPORT A02042 (Lentol)/S02852 (Parker) to Authorize Documentary Films to Qualify for Empire State Film Production Tax Credit SUPPORT Music Tax Credit SUPPORT Car Insurance Exemption for Production Companies SUPPORT TRAVEL AND TOURISM Craft Beverage Marketing and Promotion SUPPORT Brooklyn Bridge Tourist Cart SUPPORT page 9

12 SMALL BUSINESS DISPLACEMENT PREVENTION INITIATIVE FOR SMALL BUSINESSES Brooklyn is changing and growing faster than practically any other urban center in the country and while we absolutely must support continued smart development and new job growth, we cannot ignore the displacement pressures and challenges such change can create for many of our existing small businesses. The Brooklyn Chamber seeks to balance these needs through the creation of a first-of-its-kind Displacement Prevention Initiative for Small Businesses (DPISB). This initiative will commence with fact-finding and informational discussions with a wide, and diverse range of stakeholders. Our intent is to conclude this outreach with a comprehensive report that will include a series of policy recommendations. This proposal from the Brooklyn Chamber of Commerce is in direct response to concerns from small, local businesses that are at risk of losing their investment, simply because they no longer find it viable to operate in Brooklyn. This is a serious issue that negatively impacts economic development and job growth. For the past five years, our State Member Issues Survey has indicated that one of the top three obstacles for doing business in Brooklyn is the cost of finding affordable commercial space. In 2016, 30 percent of our members said that the cost and availability of commercial space was a problem, while 23 percent said that it was a severe problem. The need for continued development and new job creation across the borough is real, but so are the displacement pressures facing many small businesses. We acknowledge that creating such a delicate balance between these two issues will be no small task, and will require some very frank conversations. However, the Brooklyn Chamber is uniquely positioned to initiate this critically important dialogue through a multi-pronged and inclusive process across every neighborhood in Brooklyn. A02374 (LENTOL) PROVIDES A TAX CREDIT FOR TAXPAYERS WHO PURCHASE LOCAL MATERIALS If enacted, this bill will provide a tax credit for taxpayers who purchase local materials from companies within a fifteen mile radius of the taxpayer s business. A02374 will create an incentive for contractors to support their local communities and to purchase products made in Brooklyn. While many contractors see the value in shopping local, the importance of keeping page 10

13 operating costs low is forces them to make similar purchases outside of Brooklyn, or even overseas. The Brooklyn Chamber of Commerce is a strong advocate for supporting local industries. Our Brooklyn-Made program helps to organize marketing and promotion opportunities for local makers and connect Brooklyn-Made products with business opportunities. A tax incentive that encourages contractors to support neighborhood vendors will strengthen communities across Brooklyn by creating jobs and enhancing economic development. We believe that a separate tax incentive should also be considered for small brick and mortar businesses are facing increased cost of operation while competing with companies that operate solely online. A01709 (MOSLEY)/S02196 (PARKER) RELATES TO INCUBATORS FOR ENTREPRENEURIAL DEVELOPMENT This legislation proposes the creation of the Incubator Network, allowing the Foundation for Science, Technology and Innovation (NYSTAR) to provide financial support to foundation designated business incubators. Small start-ups often do not have enough resources to launch business eson their own, and would otherwise be discouraged from taking the first of many steps needed to get started. Incubators provide a safe space, with necessary technical support and resources, that is critical to the innovation economy in early stages of development. In addition, incubators are fertile ground for collaborative business development, especially for new entrepreneurs. In the Brooklyn Chamber s 2016 State Member Issues Survey, 42 percent of our members expressed a positive outlook for the Brooklyn economy in This perception can enhance overall entrepreneurial spirit and encourage more Brooklynites to get on the business-ready path. Creating a strategic plan to address the needs of new business owners by way of incubators would give them strong footing and increases their success rate. We are also in support of Governor Cuomo s Fund the Innovation Hot Spots and Incubators program, proposed in his FY 2018 Executive Budget. This provision authorizes $5 million in new funding to continue to foster innovation by offering start-up companies valuable business support services to help commercialize academic research and promote further collaboration between business and academia. page 11

14 ENACT LEGISLATION THAT SUPPORTS AN INNOVATIVE/ SHARED ECONOMY We encourage the enactment of legislation that fairly regulates the shared economy, where micro-entrepreneurs can use their existing resources to earn income, while contributing to economic vibrancy in neighborhoods. As new technology emerges, New Yorkers should be able to explore nontraditional alternatives for earning an honest income to help offset expenses associated with raising a family, debt and even the aquisition of start-up funds to open small businesses. These measures make economic sense and add significant revenue to neighborhoods by boosting tourism, increasing foot traffic along commercial strips and increasing support to cultural establishments, especially in the outer boroughs. In the Brooklyn Chamber s 2016 State Member Issues Survey, respondents were asked if they agreed with the prospect of expanding the use of ride-sharing and home-sharing applications across the state. 54 percent said that they were in support of this measure, and 26 percent said that they strongly supported it. In addition, Governor Cuomo has expressed support for companies that are based on ride-sharing applications (Transportation Network Companies) in his FY 2018 Executive Budget. It is our hope that our elected officials support legislation that adapts to the new shared economy while protecting consumers and ensuring fair competition. UPSTATE/DOWNSTATE VISION TASK FORCE 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 businesses, particularly manufacturing firms, in New York City 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 the 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. Finally, 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. page 12

15 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 want to 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 will work towards spreading awareness of resources to encourage collaboration and intrastate commerce. EXTENSION OF THE RELOCATION & EMPLOYMENT ASSISTANCE PROGRAM (REAP) This program is set to expire on June 30, REAP offers business income tax credits for relocating jobs from outside of New York City or below 96th Street in Manhattan to designated locations above 96th Street in Manhattan or in one of the other four boroughs. To apply, the eligible business has to move at least one employee from outside the REAP area to a qualified location. REAP has significantly helped the development and continued growth of key areas in the borough within the last decade, such as the Brooklyn Navy Yard and DUMBO. REAP is commended for serving as a linchpin in creating jobs in underserved areas. The program is effective because it retains businesses and its correlated tax base in NYC, especially at a time when businesses are continually being priced out of Manhattan below 96th Street and other localities outside of NYC are offering lucrative incentive based deals. Popular case studies of companies that utilized REAP include Crye Precision, who used REAP to initially move into the Brooklyn Navy Yard and was projected to hire over 1,000 employees. The program is critical in supporting the current base of commercial office supply and the pipeline of forthcoming office development. Many office space tenants in Empire Stores would qualify for REAP subsidies. The Brooklyn Chamber of Commerce supports the extension of REAP in perpetuity as it has proven to be a successful economic development and employment tool. MARKETPLACE PROVIDER SALES TAX As Brooklyn continues to emerge as the center for tech innovation, the Brooklyn Chamber of Commerce opposes the Marketplace Provider Sales Tax proposed in Governor Cuomo s FY 2018 Executive Budget. While we support the Governor s continued focus on incentivizing start-up businesses to make their homes in the state, the Marketplace Provider Sales Tax proposal would create a disincentive to start or grow a tech company, in New York because it only applies to companies with a presence in the state. page 13

16 Over the last few years, Brooklyn has become an attractive start-up location for many of today s most influential tech companies. However, proposals like the Marketplace Provider Sales Tax create regulatory burdens, and ultimately put a ceiling on the ability of these tech companies to grow in New York. The Governor is encouraging workers to retrain for 21st century jobs that accompany high-growth tech firms that may choose to start up elsewhere or leave the state, if their growth is capped at $100 million in revenue. Proposals like this would require high-growth tech startups to seriously consider whether staying in New York is worth the burden of building tools that are not mission-critical. The Governor s proposals to invest in a 21st century tech workforce and education system that supports a pathway to tech jobs are important to the tech community. Those investments may spark the next generation of start-up success stories. With this in mind, the Governor should recognize that proposals like the Marketplace Provider Sales Tax hurt homegrown tech companies the most. If enacted, this proposal would force homegrown companies to side track their innovative projects to build costly third party integrations with everincreasing compliance burdens, as well as incur significant new liabilities and audit risks. The Brooklyn Chamber of Commerce opposes this legislation because it is a short-sighted solution to a long debated issue. Internet Sales Tax collection is an issue that must be dealt with at the federal level, because state-by-state solutions will create a patchwork of requirements that would be increasingly difficult to navigate. New York should recognize that acting alone would create a burden for New York tech companies that contribute so much to the local economy, and open New York companies up to audits from other state s revenue departments. TRANSPORTATION AND INFRASTRUCTURE MTA FUNDING CUTS Governor Cuomo s MTA allocation of $309 million in his FY 2017 Executive Budget, versus his allocation of $244 million for FY 2018, leaves a $65 million gap in funds needed to keep New York City moving. For the first time in the Brooklyn Chamber s history of doing its State Member Issues survey, respondents cited traffic and transportation problems as the number one obstacle to doing business. This speaks volumes about the need for solid investments in New York City s transportation system to be able to meet the growing number of riders, particularly in the face of the complete shutdown of the L train and partial shutdown of the R train. The Brooklyn Chamber of Commerce respectfully urges Governor Cuomo to restore MTA page 14

17 funding to the previous amount, so as to address the growing needs of straphangers and limit disruption of service. INCENTIVES FOR BUSINESSES ALONG L AND M TRAIN LINES In 2016, the Brooklyn Chamber of Commerce, as part of the L Train Coalition opposed a complete shutdown of the L train line, and requested that the MTA work closely with small businesses, local residents and the real estate community to consider how to effectively repair the tubes while mitigating the economic impact. However, the MTA subsequently announced that work on the L train line will commence in 2019, last for 18 months, and necessitate a complete shutdown. 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 L train ridership is diverse and dependent on the train. In addition, the local businesses along the L line are at risk of closing, since they are heavily dependent on it to maintain brisk foot traffic. Plans have also been announced by the MTA to shut down the M Train line north of Myrtle Avenue in summer 2017 for an extended time period. This is to facilitate scheduled repairs, and also to strengthen the line to be able to accommodate significantly increased ridership when the L line is out of commission. Therefore, we respectfully ask that our legislators join the Brooklyn Chamber in advocating for businesses along the L and M lines, by providing tax incentives that will help them to keep up with already high operational costs, in the face of potential decreased sales. SHUTTLE SERVICE TO ADDRESS PARTIAL R TRAIN SHUTDOWN In 2015, the Brooklyn Chamber of Commerce advocated for improved R train service based on complaints from straphangers about long delays at train stations. In 2016, the MTA announced that R train stations at Prospect Avenue, Bay Ridge Avenue and 53rd Street in Brooklyn would be closed for approximately six months to accommodate upgrades, including countdown clocks and new entrances. While we welcome these efforts to improve the overall experience of straphangers, we join them in requesting that measures are put in place to provide alternate options for travel, such as shuttle buses, for the duration of this project. Reliable transportation options during this time are very important to local workers, and businesses. page 15

18 IMPROVED F TRAIN SERVICE Last year, the Brooklyn Chamber of Commerce advocated for a restoration of F express train service to Coney Island, which the MTA announced would become a reality in summer We certainly welcome the return of express service along that line, but would also like to see improvements in the overall reliability of service. Straphangers who use this line have reported excessive delays, especially during rush hour. We urge our members of the legislature to work with the MTA to conduct a full review of F train service to address current issues and provide improvements for users. BROOKLYN QUEENS CONNECTOR (BQX) The Brooklyn Chamber of Commerce strongly supports the Brooklyn Queens Connector (BQX) project, a waterfront 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. From Sunset Park in Brooklyn, to Astoria, Queens, 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. Although this new development is welcome and provides 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, both prior to, and made more acute by current conditions, is intra/inter-borough mass transit. FERRY SERVICE EXPANSION IN BROOKLYN The business community is very excited about the announcement that the New York City Economic Development Corporation (NYCEDC) will be working with the Office of Mayor Bill de Blasio to make Citywide Ferry Service fully operational in Additional Brooklyn stops are expected to include Brooklyn Bridge Park Piers 1 and 6, Red Hook, the Brooklyn Army Terminal in Sunset Park, and Bay Ridge. page 16

19 Consistent ferry service to New York s waterfront communities is vital to our public transportation system. Superstorm Sandy has made this very evident, when it practically paralyzed several train and bus lines, and made it impossible in some cases for employees to go to work and for customers to have access to much-needed supplies from stores. Ferries could be seen crisscrossing our waterways packed with commuters. While subways, roads and commuter rails needed weeks or months to restore normal service, ferries proved to be one of the most resilient modes of transportation after Superstorm Sandy. It is our hope that the members of the New York State Legislature will work collaboratively with the Mayor s administration to enhance the rollout of this ferry expansion plan. This proposal will provide additional options for our workforce and communities, and more importantly spur economic development along local commercial corridors. DESIGN-BUILD The Brooklyn Chamber of Commerce is supportive of the Design-Build system, in which a single contractor is responsible for both the design and construction of a project. This approach will cut costs and increase the speed in which projects are completed. A prime example of this is the replacement to the Kosciuszko Bridge, which was delivered on time, and within budget, according to the NYS Department of Transportation. Currently, government agencies across the state are mandated to use the design-bid-build system, in which contracts for design and construction are separate, leaving infrastructural projects prone to additional costs and delays. We encourage our legislators to address Design-Build in this session, with the goal of significantly increasing the efficiency of projects across the state. REAL ESTATE AND DEVELOPMENT AFFORDABLE NEW YORK In January 2017, Governor Cuomo proposed the Affordable New York housing program, after the Real Estate Board of New York and the Building and Construction Trades Council of Greater New York reached an agreement to replace the program previously known as 421a. Under Affordable New York, developers of new residential projects with 300 units or more in certain areas of Manhattan, Brooklyn and Queens, who create a specific number of rental units to remain affordable for 40 years, and pay construction workers an enhanced average wage and benefits, would be eligible for a full property tax abatement for 35 years. page 17

20 Finding affordable space in Brooklyn is becoming a growing challenge. In the Brooklyn Chamber s 2016 State Member Issues Survey, 26 percent of respondents noted that the cost and availability of residential space is a problem, whereas 22 percent said that it is a severe problem. We urge our legislators to examine and support the Affordable New York housing program which will encourage developers to build more multi-family housing that will attract and keep growing families in Brooklyn, and give a natural boost to the economy. A00579A (BRAUNSTEIN)/S01125-A (AVELLA) RELATES TO THE ELIGIBILITY OF J-51 TAX ABATEMENTS TO REFLECT COST OF LIVING This proposed legislation would adjust the J-51 tax abatement minimum assessed to property value eligibility to reflect yearly changes in cost of living. The J-51 tax abatement is a property tax exemption and abatement received by buildings for renovating a residential apartment building. Since 1992, co-op units and condos that had an assessed value less than $40,000 were eligible to receive this abatement. However, in 2013, the eligibility cap was reduced to units that have an assessed value of less than $30,000. As a result of this change, fewer middle income co-ops and condo owners are eligible for these abatements. This bill would increase the J-51 tax abatement cap yearly to reflect the cost of living, as set by the United States Commissioner of Social Security in determining monthly benefits. Therefore, the abatement cap would be indexed for inflation and would consistently accommodate middle income co-op and condo owners. Increasing the eligibility cap annually to reflect an increase in cost of living as it relates to J-51 will encourage owners of co-ops and condos to make improvements to those buildings. This will improve the quality of life for residents and increase property value. RE-ENVISIONING OF THE RED HOOK WATERFRONT In the Brooklyn Chamber s 2016 State Member Issues Survey, 58 percent of respondents expressed support for a Re-envisioning of the Red Hook Waterfront proposal, presented by the construction and engineering firm AECOM. This plan would include 45,000 units of housing and a No. 1 train station that would connect to the F and G subway lines at Fourth Avenue. page 18

21 We encourage local elected officials to review this, as well as any other existing or future plans for development in Red Hook, with local businesses and residents in order to produce a collective vision that would benefit all stakeholders. HEALTH CARE MAINTAIN ROLE OF NY STATE OF HEALTH In 2013, in accordance with the Federal Affordable Care Act (ACA), Governor Cuomo issued Executive Order No. 42 to establish a New York Health Benefit Exchange. To date, over 3.4 million New Yorkers, who may have not been able to otherwise afford it, have been enrolled for coverage under ACA. Thanks to the support of the Brooklyn representatives of the New York State Legislature, the Brooklyn Chamber of Commerce through our not-for-profit affiliate the Brooklyn Alliance has been providing in-person health insurance assistance services under ACA in Brooklyn to both small businesses and individuals. Since its launch, the Brooklyn Chamber has registered 6,017 individuals and enrolled 5,478. To increase accessibility to our IPA/Navigator program, we have partnered with the Brooklyn Public Library (various locations throughout Brooklyn) and Brooklyn representatives in the NYS Assembly to facilitate in-person enrollment services in English, Spanish, French, French Creole, Russian, Cantonese and Mandarin. In Governor Cuomo s 2017 State of the State address, he proposed $553 million in total funding for the operation of the New York State of Health a measure which the Brooklyn Chamber of Commerce supports. It is very important that New Yorkers have access to affordable health care options, and that the role of Chambers of Commerce as Navigators is maintained. ADDITIONAL FUNDING FOR THE COMMUNITY HEALTH ADVOCATES (CHA) PROGRAM Community Health Advocates (CHA) is New York State s statewide health consumer assistance program, which helps more than 40,000 individuals and small businesses annually to understand and use their coverage under the ACA. Since its launch in 2013, CHA has assisted over 281,000 consumers and small employers and saved them over $21 million in medical bills and costs. CHA operates through 27 community-based organizations (CBOs) and groups serving small businesses, helping New Yorkers in all 62 counties. The Brooklyn Chamber of Commerce is part of that group and receives funding through CHA to provide the above-mentioned services across Brooklyn. page 19

22 As it stands, CHA needs a total of $4 million to maintain services at its current level and to avoid a 25 percent funding cut to the statewide network of local CBOs and Chambers of Commerce. To ensure that the CHA network is able to continue at its current level of services, we respectfully ask that the New York State Assembly allocate $1.5 million to the program; and that the Assembly and Senate support Governor Cuomo s $2.5 million CHA appropriation in his FY 2018 Executive Budget. We join CHA in requesting that the New York State Senate allocate $750,000 for expansion of this program. MEDICAL MALPRACTICE REGULATION REFORM 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. We ask that the Legislature support reforms to address the high administrative costs and the overall issue of excessive awards and settlements and express our strong opposition to all bills that would substantially increase to 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. NURSE STAFFING RATIOS 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 healthcare 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. page 20

23 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. DISCLOSURE OF PROPRIETARY DRUG DATA AND BIOPHARMACEUTICAL PRICE CONTROLS The Brooklyn Chamber of Commerce opposes the Article VII provision that allows the Department of Health under the Medicaid program to identify critical prescription drugs where the Department deems there is a significant public interest in ensuring rational pricing by drug manufacturers, as found in S.2007/A.3007; (Health Article VII) Part D. As major taxpayers in the state, our members recognize the need to save Medicaid dollars. However, this proposal, which would adversely impact the innovative life science sector and not improve patient care, is not the proper way to do so. By mandating that pharmaceutical companies report proprietary information such as costs that include the research, development, manufacturing of drugs, cost impact and profit margin, (and then authorizing DOH to use an actuary to determine a price ceiling), the proposal is setting a precedent of intrusion into industry and dissolution of free markets in a way that has not previously been done. The pharmaceutical industry is already one of the most highly regulated industries in the state, and by law Medicaid already receives best pricing, plus steep mandatory rebates for all drugs on its formulary. The demand for proprietary information and price ceilings for drugs could mark the beginning of a trend of state interference with manufacturing, in general, and in the end will not even provide the comprehensive account of actual costs the budget language purports to seek. More likely, this over reaching mandate may result in misleading assumptions that fail to take into account many factors involved in manufacturing. The Brooklyn Chamber of Commerce opposes mandates that forces a private business to unnecessarily divulge trade secrets and proprietary information, especially in order to impose further price controls on those same private employers. A competitive marketplace is the only basis for our state s economic success, and New York should be encouraging a system that strives for continued innovation through research and development of new products and not price controls. For these reasons, the Brooklyn Chamber of Commerce opposes this proposal, and respectfully urges the NYS Senate and Assembly to do the same. page 21

24 MANUFACTURING A00128 (CAHILL) ESTABLISHES THE NEW YORK CRAFT BEVERAGE COUNCIL 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 our Drink Local campaign, which is supported largely through an Empire State Development Craft Beverage grant. Some of our 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 NYS products and meet the makers. The Brooklyn Chamber of Commerce supports A00128 and similar legislation to give New York s craft beverage industry additional support to grow and expand. AFFORDABLE MANUFACTURING SPACE AND SHIFTS IN REAL ESTATE MARKET 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, close in proximity to major transportation hubs, for ease of commuting (9 to 5) schedules are uncommon, and production is often done during nighttime shifts) and so they can easily transport their goods via commercial vehicles. 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 to 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 yearover-year since 2011, while vacancies are extremely low and stock is continually reduced by industrial property conversion. page 22

25 We need to continue to support manufacturing facilities such as Industry City, the Brooklyn Navy Yard, Brooklyn Army Terminal, Industry City and 630 Flushing Avenue, as well as incentivize the development of additional manufacturing facilities for smaller tenants. In addition, we need to protect designated Industrial Business Zones, and associated benefits such as the Real Estate Associate Program (REAP) and Industrial & Commercial Abatement Program (ICAP) incentives, affordable space and local business development resources. SKILLED WORKFORCE AND SECTOR-BASED TRAINING OPPORTUNITIES Jobs in the manufacturing sector are a pathway to the middle class, especially for immigrants and people with low educational attainment. Wages in the manufacturing sector are higher than other industries such as retail, transportation, administration and entertainment sectors. In Brooklyn, and the rest of New York City, there is a substantial lack of skilled workers equipped with training necessary for manufacturing positions. Not enough workers are entering the manufacturing job market by way of training, and those that 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. Suitable training would provide an opportunity for individuals with certain barriers to employment to take advantage of available job openings. 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. Most of the training programs offered focus on transportation, such as commercial driving classes. Programs that encourage and incentivize on-the-job training directly with prospective employers 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 23

26 ENERGY INCREASED ACCESS TO AFFORDABLE, CLEAN-BURNING NATURAL GAS As New York City s demand for natural gas increases, the associated energy infrastructure becomes 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 CO 2 annually comparable to removing 3 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. EXPIRATION OF THE TEMPORARY UTILITY SURCHARGE COMMONLY REFERRED TO AS 18-A Section 18-a of the Public Service Law authorizes an assessment on utility bills, which was originally intended to fund the operations of energy-related agencies and authorities, such as the Department of Public Service (DPS) and the New York State Energy Research and Development Authority (NYSERDA). All energy customers, residential and business, pay the assessment through their utility bills. In the FY budget, the assessment was increased six-fold and directed into the state s General Fund instead of being used solely for energy initiatives. 18-a is set to expire in March of 2017 with scheduled reductions until then. However, we believe it should be immediately repealed for all customers. Approximately 25 percent of a typical electric customer s bill is attributed to state and local taxes such as 18-a. This regressive tax has the most significant impact on low income New page 24

27 Yorkers who struggle to make ends meet. Repealing 18-a will help alleviate the financial burden it imposes on customers and allow resources to be directed at critical infrastructure projects that are necessary to protect against future extreme weather events. EDUCATION MAYORAL CONTROL IN NEW YORK CITY SCHOOLS The FY 2018 Executive Budget proposes a three-year extension of Mayoral Control in New York City Schools, until June 30, The Brooklyn Chamber of Commerce supports this proposal and would add that at a minimum, Mayoral Control should be extended for seven years in order to provide the stability necessary to drive sustained improvements in New York CIty schools. The implementation of Mayoral Control in 2002 was instrumental in increasing graduation rates, and safety, as well as providing a higher degree of transparency between schools, parents and communities. In addition, students have benefitted from increased school funding, as well as well-informed and efficient decisions made by the City s elected leader. Expiration of this provision will undoubtedly have a negative impact on the City s 1.1 million students dependent on the system. Therefore, we support an extension of Mayoral Control, free from budgetary and operational oversight from the State. This would be in the best interest of delivering a high standard of quality education to our children, and in so doing, strengthening our City s future workforce. FINANCIAL AID TO STUDENTS AT PUBLIC AND PRIVATE HIGHER EDUCATION INSTITUTIONS 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. Regardless of the type of institutions they attend, New Yorkers have been treated equitably in need-based financial aid programs such as the Tuition Assistance Program (TAP). 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 that match not only their academic potential, but also match their individual needs. The Brooklyn Chamber of Commerce supports expanding state financial aid programs to provide more access to higher education for Brooklyn residents. However, such programs must continue to support students at both public and private institutions and provide flexibility for those students who may be pursuing non-traditional pathways to higher education. By expanding the current TAP, we can ensure that all students have the support page 25

28 they need to work towards their dreams at the college of their choice in New York State. We ask the Governor and Legislature to consider raising the maximum TAP award from $5,165 to $6,500, raising the maximum family income threshold from $82,000 to $125,000 and increasing the minimum TAP award to $1,000. NEW YORK STATE OPPORTUNITIES PROGRAMS 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 of Commerce supports restoring the Opportunities Programs funding to levels consistent with the enacted Budget. NYS DREAM ACT The Brooklyn Chamber supports the NYS DREAM Act, which would support undocumented students who have graduated New York high schools by allowing them to be eligible for financial aid programs already offered to their peers. Immigrants and their children truly define the culture of New York, even moreso 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. MAKE SUNY AND CUNY TUITION-FREE In his FY 2018 State of the State address, Governor Cuomo proposed free tuition for middle class families attending SUNY and CUNY two and fouryear colleges. While one cannot argue about the positive impact college accessibility has on enhancing the skills and qualifications of our workforce, we would like to see a more detailed review of this proposal outlining the impact it would have on both public and private institutions of higher learning. page 26

29 The proposal as it stands, will significantly increase enrollment at SUNY and CUNY, so a strategic approach would need to be considered to ensure that there are enough resources to match an enrollment surge. On the other hand, private colleges will see a significant decline in enrollment, and many will have to shut their doors. The Brooklyn Chamber of Commerce urges the Cuomo administration to have extensive dialogue with all stakeholders to create a plan that will incentivize enrollment in both public and private institutions. WORKFORCE DEVELOPMENT A00391 (Skartados) to Establish a Small Business Tax Credit for the Employment of Unemployed Veterans This proposal would help to create a level playing field for deserving veterans, and at the same time give a much-needed boost to job creation in New York. Ultimately, this would have a very positive effect on improving our economy. In February 2013, the Brooklyn Chamber started a much-needed discussion on veterans needs with the launch of the Brooklyn Chamber Veterans Council. The goal of the Council is to create a business and job searching support system that may increase the likelihood of veterans receiving the services they need to grow economically. As such, the Brooklyn Chamber of Commerce is in strong support of this legislation and look forward to working with our New York State representatives to implement this bill. This is exactly the type of boost that returning veterans need to make a smooth transition to civilian life. INCENTIVES FUNDING FOR ON-THE-JOB TRAINING On-the-Job Training (OJT) incentives support workforce development efforts by connecting employers to a diverse workforce and providing individualized training on the job. A company can meet skills shortages and begin to build a solid workforce for their future business needs through OJT reimbursements. The OJT funds are allocated to support small business owners when hiring or advancing an incumbent worker. The funding is important to our workforce and economic development efforts in Brooklyn because it addresses the fundamental labor market issue as it relates to skills gaps and job quality. page 27

30 The fast-changing nature of today s workforce needs, and a lack of training resources, are two of the biggest factors causing a significant gap in skills these days. Brooklyn is experiencing strong job growth and employment across industries, but there is inadequate training resources which makes it impossible to keep up with workforce demands. Through our OJT, business funding is reimbursed up to 50 percent of the new hires / incumbent workers 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 skill needed by an employer. SUMMER YOUTH EMPLOYMENT PROGRAM The Brooklyn Chamber of Commerce strongly supports programs that enhance job readiness, and opportunities for youth, such as the Summer Youth Employment Program; and the Urban Youth Jobs Program, which provides tax credits for employing eligible youth between the ages of 16 and 24. In his 2017 State of the State address, Governor Cuomo proposed increased funding for the Summer Youth Employment Program by $5 million to $36 million, so that NYS can expand job creation for youth. In 2016, approximately 18,750 youth were employed through the program. A02007 (FAHY)/S03486 (PERALTA) RELATES TO THE SCHEDULES THAT WORK ACT This proposed legislation will require that an employer - employing fifty or more employees in the state of New York in retail, food service or cleaning - 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 flexibility in the scheduling process. Furthermore, this and similar proposals from the New York City Council proves to be contradictory, since the Paid Sick Leave law calls on small business owners to provide time off for emergencies. In such cases, business owners must be allowed some level of flexibility to make necessary changes to staffing schedules so that their businesses can meet the needs of customers, and ultimately keep their doors open. page 28

31 For the past five years, Government regulations, fines and violations has been one of the top ten 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 the employer. Instead of additional restrictive bills, we would advocate for effective communication between employers and employees regarding scheduling, with the goal of reaching a consensus that would be beneficial to both parties. MINORITY/WOMEN-OWNED BUSINESS ENTERPRISES (M/WBES) A04430 (Blake) encourages Participation of M/WBEs in State Contracts 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 our NYC Business Solutions Brooklyn Center. In addition, the Brooklyn Chamber has recently awarded funding 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. page 29

32 IMPROVED CONNECTION BETWEEN NYC, NYS AND FEDERAL CERTIFICATION PROCESSES As it stands, M/WBEs are required to be certified separately with NYC, NYS and federal entities, which creates a serious administrative burden, and can discourage small businesses from applying. Each application is very lengthy and complex so it is very taxing for a business owner to position him/herself 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 NYC, NYS 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 stated that red-tape issues were a severe problem. While we applaud both NYC and NYS 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. SHORT LIST OF INDUSTRIES OUTSIDE OF CONSTRUCTION The construction industry has traditionally helped to meet M/WBE procurement goals to some extent. There are four industries highlighted in the NYS Disparity Study of 2016 namely construction, construction-related services, commodities and non-construction and related services. The 2010 disparity study highlighted that non-construction related services fell significantly behind utilization for M/WBE. To quote the 2010 study, the study finds both statistical and anecdotal evidence of business discrimination against M/WBEs in the private sector of the New York State market area. The statistical findings include analyses of disparities in business formation, business owner earnings, access to credit, and participation in public sector contracting from A successful methodology for the construction industry is a creation of a short list. This short list is provided to prime contractors as an easy reference for vetted M/WBEs. A similar short list for NYS and NYC agencies will provide prime contractors in the non-construction and related services industry help to increase the long-awaited wins for M/WBE s. page 30

33 ACCOUNTABILITY PROCESS FOR PRIME CONTRACTORS TO USE M/WBE COMPANIES The most disheartening and economically challenging experience for an M/WBE in the services industry is to learn there is an approved waiver from a NYC agency for a contract that the M/WBE has the capacity and capability to perform. All NYC M/WBEs in the services industry have faced this challenge. There needs to be a documented accountability process for prime contractors to prove a good faith effort was made to locate an M/WBE. That process would include, but is not be limited, to requiring a minimum of three to five M/WBEs to be contacted, documenting the names of the M/WBEs; documenting the date and method of contact (minimum of three attempts), documenting a reason why M/WBE was not selected, having prime sign-off to verify, and providing a debriefing of M/WBE applicants upon request. VETERAN AFFAIRS TAX CREDITS FOR VETERAN ENTREPRENEURSHIP 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 re-enter their communities as successful entrepreneurs. We will not only be paying it forward, but also encouraging economic development and giving veterans an opportunity to continue to make valuable contributions to our communities as entrepreneurs. Much like a civilian entrepreneur, 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 Association (SBA) and NYS Small Business Development Council (SBDC), sometimes there just 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. page 31

34 ARTS AND CULTURE BROOKLYN CULTURAL DISTRICT In the Brooklyn Chamber s 2016 State Member Issues Survey, 69 percent of respondents supported a plan by the New York City Economic Development Corporation to establish a Brooklyn Cultural District. This project will be located in Fort Greene, the heart of Brooklyn s thriving artistic community, and will serve as a hub for arts and culture. Also included in this plan is the creation of new performance and rehearsal spaces, office space for a diverse group of local arts organizations, a public plaza for the community, a library, a cinema, and much-needed affordable housing. The Brooklyn Academy of Music will serve as the anchor for this project. This is an important measure as, every day, more than 100,000 not-for-profit arts and culture organizations act as economic drivers creating an industry that supports jobs, generates government revenue, and is the cornerstone of our tourism industry. The Brooklyn Chamber of Commerce is supportive of this project because it will create local jobs and increase economic activity for surrounding businesses. A02042 (LENTOL)/S02852 (PARKER) TO AUTHORIZE DOCUMENTARY FILMS TO QUALIFY FOR EMPIRE STATE FILM PRODUCTION TAX CREDIT The goal of this bill is to authorize documentary films to be qualified films 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 32

35 MUSIC TAX CREDIT For the past two years, the Brooklyn Chamber of Commerce has advocated for a tax credit to incentivize the production of music across the state. The most recent bill that we supported for this measure is A b/S.7485-b, which was vetoed by Governor Cuomo in November Sponsored by Assembly Member Joseph R. Lentol and Senator Martin J. Golden, this piece of legislation would have provided a significant boost to music production and gaming media in New York. New York artists are increasingly faced with a 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 Continued Support programs that highlight the local music industry, such as Make Music NY. Now entering its 11th year, Make Music New York is a unique festival of 1,000+ free concerts in public spaces throughout the five boroughs of New York City, all on June 21st, 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 neighborhoodsresidents welcome. CAR INSURANCE EXEMPTION FOR PRODUCTION COMPANIES Production film companies ranging from music videos to full-length feature films usually rent vehicles as part of their production. These production companies typically procure insurance for rental cars, getting them a lower rate, since the car rental company knows that the risk will be covered. However in the event of an accident, many insurance companies refuse to pay claims and suggest that the responsibility lies with the car rental company. This position is based on the ELRAC v Ward court ruling which says that the owner of the car is primarily responsible for any damages. page 33

36 While we agree with this premise, we respectfully request that the Legislature consider an exception for the production industry since the risk would have already been assessed and protected with the production company s insurance. It would be more beneficial for everyone if the production company s insurance was the primary insurance. The car rental company would be primary insurer only in cases where there is no production company insurance. TRAVEL AND TOURISM CRAFT BEVERAGE MARKETING AND PROMOTION Governor Andrew M. Cuomo s Craft Beverage Grant Programs, administered by Empire State Development, increases the profile and awareness of New York state-made wine, beer, spirits and cider, helping producers generate sales. Through this program, grants are made to organizations in order to market and promote craft beverages. In 2016, Taste NY sales benefitting New York food and beverage producers doubled to more than $10.5 million. Brooklyn has a significant number of craft beverage manufacturers. There are over 30 licensed distilleries, breweries, wineries and cideries in the borough, and the industry is experiencing exponential growth. In addition, craft beverages are a draw for visitors, as alcohol tourism is becoming increasingly popular. The Brooklyn Chamber of Commerce was awarded a Craft Beverage Grant in 2015 that enabled us to produce a Craft Beverage Festival (CHEERS NY), an event that celebrated the Brooklyn market as a destination for craft beverage tourism. In 2016, the Chamber executed a Drink Local program that provided on-the-ground support to local NYS craft beverage makers and supported businesses in the borough through Drink Local Week (drinklocalweek. com). This included events such as our Drink Local Week pre-launch event, Pop-Up Tastings, International Pow Wow (IPW), and the Familiarization (FAM) Tours in Buffalo and New York. The program deemed a proactive and beneficial approach in informing consumers, tourists and buyers, alike, about craft beverages made in New York. Through an aggressive marketing campaign, over 6 million impressions were made through popular print, digital and social media outlets. In addition, the Brooklyn Chamber developed a dedicated Drink Local site, marketing content and trail maps on our tourism platform highlighting craft beverage producers as destinations while in the borough. The Brooklyn Chamber of Commerce supports the Craft Beverage Marketing and Promotion Program as well as continued funding for Drink Local. The craft beverage industry creates jobs, and attracts visitors who will spend their dollars page 34

37 locally. The Drink Local program not only showcases Brooklyn s craft beverages, it also introduces the downstate market to upstate products, increasing demand for New York State products. BROOKLYN BRIDGE TOURIST CART Over 30,000 tourists walk the Brooklyn Bridge every day, but rather than exploring Brooklyn, they often tend to head back into Manhattan. The Brooklyn Chamber of Commerce, members of the Tourism and Hospitality Committee and local community leaders have expressed the dire need for a permanent Tourist Cart at the end of the Brooklyn Bridge. The addition of a tourist cart will be a way of convincing tourists to stay in the borough, educate them on transportation options and generate increased economic benefits within our cultural institutions, restaurants, attractions, hotels and more. These informationbooths typically provide guides, maps, pamphlets and brochures explaining all there is to do in the cities in which they exist. In some cases, they also offer coupons to dining, entertainment and city attractions. We encourage support for project implementation, alongside the Department of Transportation, which will help to increase tourist interaction and awareness of Brooklyn s many offerings. NEW YORK STATE RECREATIONAL AND SAFETY ACT The Brooklyn Chamber of Commerce is proposing a New York State version of the Colorado Ski and Safety Act which is in place to protect small businesses from frivolous lawsuits, and ever-increasing insurance costs. However, in New York State, this legislation would encompass all recreational facilities. With limited outdoor space to accommodate vigorous sporting events, recreational facilities are now offering more options for sporting enthusiasts that are looking to stay physically fit, or just enjoy a fun challenge. These venues, mostly small businesses are becoming increasingly popular in neighborhoods across our state, and are re-energizing not only its customers, but also providing jobs to locals. However, due to the nature of these businesses, they are more likely to be faced with lawsuits and astronomical insurance costs. This puts them at increased risk of closing, since limited resources have to be used to cover increased daily costs of operation. In light of this, we respectfully ask that our legislators work with owners of recreational facilities to create the New York State Recreational and Safety Act. Such legislation will help to balance the need for safety on the part of customers, as well as fair safeguards on the part of facilities, especially when the latter puts waivers in place. page 35

38 THE BROOKLYN CHAMBER OF COMMERCE CENTENNIAL GALA 2018 SATURDAY, FEBRUARY 10 TABLE OF CONTENTS

39 page 37

40 NEW YORK STATE LEGISLATIVE VISIT, ALBANY & BROOKLYN NIGHT PRESENTING SPONSOR OPENING LUNCH SPONSOR LEGISLATIVE BREAKFAST SPONSOR RECEPTION SPONSOR page 38

41 CORPORATE SPONSORS page 39

42 page 40

43 page 41

44 The Brooklyn Alliance BID Management & Formation N Not-For-Profit Summit N V ES T I I I BLACK HISTORY MONTH CELEBRATION TM RED NITE MMER INTO SU