Broad-Based Coalition Urges Governor Cuomo to Include Reform to "Scaffold Law" in Upcoming Executive Budget

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Scaffold Law Reform Coalition

ALBANY, NY (10/16/2013)(readMedia)-- Today, a coalition of over fifty advocacy groups representing small and large businesses, developers, insurers, builders, contractors, municipalities and taxpayers issued a joint letter to Governor Cuomo and his top budget staff urging for the inclusion of reform of New York's "Scaffold Law" in the FY 2014-15 Executive Budget.

The Scaffold Law, which dates back to the 1885, holds contractors and property owners fully liable in lawsuits for gravity-related construction injuries, regardless of partial contributing fault by a worker. Scaffold Law lawsuits, which represented 16 of the top 30 settlements in New York in 2012, are responsible for escalating insurance and building costs across the state, according to coalition members. The letter states that these costs threaten the viability of many small businesses and impose millions of dollars in costs on taxpayers.

"The Scaffold Law is the standard-bearer of New York's dubious anti-business reputation," said Mike Durant, State Director for the National Federation of Independent Business.

New York is the only state in the nation where such a law is still on the books.

"Reforming the law is plain common sense. Evidence shows us this will create jobs, stimulate the economy, and reduce costs to taxpayers," said Tom Stebbins, Executive Director of the Lawsuit Reform Alliance of New York.

The letter states that reforming the "Scaffold Law" would help advance many of Governor Cuomo's goals, citing Budget Director Robert Megna's recent letter to agency commissioners, which said: "The 2014-15 Capital Budget will focus on targeted investments that strengthen the State's infrastructure and create jobs, while maintaining a level of affordability." The coalition claims that reforming the Scaffold Law will reduce the costs for taxpayer-funded capital projects, boost job creation, stimulate the economy, and generate tax revenue. The joint letter stressed that reform would not remove a worker's ability to sue, nor adversely affect workplace safety. Citing estimates by the Pacific Research Institute, the coalition emphasized that reforming the Scaffold Law could create approximately 86,000 jobs and increase tax revenues by $1.04 billion.

"The last thing New York should be doing right now is artificially inflating the cost of public and private sector activity, particularly when the law serves no valid public purpose," stressed Peter A. Baynes, Executive Director of the New York State Conference of Mayors.

Legislation to reform the Scaffold Law currently enjoys bipartisan support in both houses of the legislature, and supporters are hopeful that inclusion in the Executive Budget will be the next step towards achievement of their shared agenda.

According to Mike Elmendorf, President and CEO of the Associated General Contractors of New York State "Reforming New York's outdated and costly Scaffold Law is not only long overdue, but necessary to rebuild New York's infrastructure and economy."

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For more information, please go to www.scaffoldlaw.org or contact Phoebe Stonbely at pstonbely@lrany.org or 518-512-5265.