Prohibits state funding to business entities that outsource jobs.
TITLE OF BILL: An act to amend the labor law, in relation to prohibiting state funding to businesses that outsource jobs
PURPOSE: Allow State funding when applicable to those companies that create jobs within New York state, and prohibit financial incentives for companies that send jobs outside the State.
SUMMARY OF PROVISIONS: Section 219 of the Labor Law, which details violations of certain wage payment provisions, is amended.
EXISTING LAW: None, although efforts have been made in the New York State Legislature to address this topic.
JUSTIFICATION: As jobs are consolidated and cut, and as companies recoup profits through different measures, workers will feel the effects through diminished wages, decreased work hours and loss of their position to lower paid workers. outsourcing is an attractable option for companies looking to cut their costs and it is our intention to create barriers for companies that utilize this option. A company should not be rewarded with state funding when they utilize the monies for workers outside the State.
The local economy often feels the affect of outsourcing for fewer jobs are available to local residents. In turn, quality-of-life i.s diminished as residents are left without viable forms of employment in their local town, village or county and are thus pressured to seek employment elsewhere, sometimes outside New York State. In addition, more people will seek food stamps and other means of public support to get themselves and families by. As outsourcing continues and residents leave the state, tax monies that can be utilized to create new jobs are lost due to a decline in the number of residents.
The premise of this proposed legislation is simple: keeps jobs and residents in New York state.
LEGISLATIVE HISTORY: 2010: S.7594 - Referred to Labor
FISCAL IMPLICATIONS: None expected.
EFFECTIVE DATE: This act shall take effect on the first of April next succeeding the date it shall become a law.
STATE OF NEW YORK ________________________________________________________________________ 1244 2011-2012 Regular Sessions IN SENATE January 6, 2011 ___________Introduced by Sens. ADDABBO, PARKER -- read twice and ordered printed, and when printed to be committed to the Committee on Labor AN ACT to amend the labor law, in relation to prohibiting state funding to businesses that outsource jobs THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The labor law is amended by adding a new section 219-b to read as follows: S 219-B. OUTSOURCING OF JOBS PROHIBITED. 1. FOR PURPOSES OF THIS SECTION THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS: (A) "OUTSOURCE" SHALL MEAN TO RELOCATE OR MOVE JOBS OUTSIDE OF THE STATE OF NEW YORK TO ANOTHER STATE OR COUNTRY; (B) "STATE FUNDING" SHALL MEAN THE PROVISION OF ANY AWARDS, GRANTS, LOANS, TAX BENEFITS OR ANY OTHER FINANCIAL ASSISTANCE BY THE STATE TO A BUSINESS ENTITY; AND (C) "BUSINESS ENTITY" SHALL MEAN ANY PERSON, FIRM, CORPORATION, PART- NERSHIP, LIMITED LIABILITY COMPANY OR ANY OTHER BUSINESS ENTITY DOING BUSINESS IN THIS STATE OR A SUCCESSOR, AFFILIATE, ALTER EGO OR SUBSID- IARY OF SUCH BUSINESS ENTITY. 2. NO BUSINESS ENTITY SHALL RECEIVE STATE FUNDING IF A DETERMINATION IS MADE BY THE COMMISSIONER THAT SUCH BUSINESS ENTITY SHALL OUTSOURCE JOBS. UPON A DETERMINATION BY THE COMMISSIONER THAT A BUSINESS ENTITY SHALL OUTSOURCE JOBS, THE COMMISSIONER SHALL NOTIFY SUCH BUSINESS ENTITY OF SUCH DETERMINATION. UPON RECEIPT OF SUCH NOTICE, SUCH BUSINESS ENTITY SHALL HAVE THIRTY DAYS WITHIN WHICH TO REQUEST A HEARING REGARDING SUCH DETERMINATION. SUCH HEARING SHALL BE HELD IN A MANNER TO BE DETERMINED BY THE COMMISSIONER. FAILURE TO REQUEST A HEARING WITHIN THIRTY DAYS SHALL BE DEEMED A WAIVER OF SUCH BUSINESS ENTITY'S RIGHT TO A HEARING. IF AFTER SUCH HEARING A DETERMINATION IS MADE THAT SUCH BUSINESS ENTITY HAS OUTSOURCED JOBS OR AFTER EXPIRATION OF SUCH THIRTY DAY PERIOD, NO FURTHER STATE FUNDING SHALL BE MADE TO SUCH BUSINESS ENTITY. S 2. This act shall take effect on the first of April next succeeding the date on which it shall have become a law.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD02026-01-1