BILL NUMBER: S6614

SPONSOR: BORRELLO
 
TITLE OF BILL:

An act to amend the labor law, in relation to contractors building new
one-family residential construction

 
PURPOSE OR GENERAL IDEA OF BILL:

To amend the Labor Law, in order to exempt contractors building new
one-family residential construction from the requirements of Sections
240 and 241 (Scaffold Act). This measure will reduce the financial
burdens placed on residential builders by Scaffold Act provisions and,
thereby, facilitate less costly new home construction in New York State.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1: Amends the opening paragraph of Subdivision 1 of Section 240
of the Labor Law to exempt contractors building new one-family residen-
tial construction from the strict liability standards governing the
erection of scaffolding and other devices by contractors engaged in
              

certain construction, demolition or repair work.

Section 2: Amends the opening paragraph of Section 241 of the Labor Law
to exempt contractors building new one family residential construction
from the strict liability standards governing certain construction,
excavation or demolition work.

Section 3: Effective date.

 
JUSTIFICATION:

The Scaffold Act's strict liability standard has dramatically increased
liability insurance rates for contractors, contributed to non-renewal of
liability insurance policies, and resulted in the cancellation of insur-
ance for multi-state builders working in New York. According to the
State Builders' Association, its impact is particularly felt in the
residential housing market. Estimates attributed to the Association
reveal that Scaffold Act provisions add $10,000 to the cost of a house
in Buffalo, $7,000 to one on Long.  Island and $6,000 to a home in Alba-
ny. This bill will relieve residential contractors and homeowners of
these burdensome additional costs. It will also stimulate new home
construction and make home ownership more affordable for many New York-
ers.

 
PRIOR LEGISLATIVE HISTORY:

2007-08; A7189 Held for consideration in Labor

2009-10; A2697 Held for consideration in Labor

2011-12; A2866 Held for consideration in Labor

05/27/14 held for consideration in labor

A4896 05/17/16 held for consideration in labor

A3968 01/03/18 referred to labor A1653
07/15/20 held for consideration in labor A2389

05/11/22 - 05/11/22 held for consideration in labor

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None to the State of New York or local governments. However, contractors
engaged in new one-family residential construction will realize consid-
erable savings. It is also anticipated that the cost of new homes will
decrease.

 
EFFECTIVE DATE:
This act shall take effect 180 days after it shall become a law;
provided, however, that effective immediately, the addition, amendment
and/or repeal of any rule or regulation necessary for the implementation
of this act on its effective date are authorized and directed to be made
and completed on or before such effective date.