|SAME AS||SAME AS S04400|
|COSPNSR||Skoufis, Steck, Mayer, Cook, Jaffee, D'Urso, Moya, Harris|
|Add §220-i, Lab L|
|Establishes a registration system for contractors and subcontractors engaged in public work projects in order to better enforce existing labor laws and regulations in the public works industry.|
|01/25/2017||referred to labor|
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NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A3057 SPONSOR: Magnarelli
TITLE OF BILL: An act to amend the labor law, in relation to establishing a registra- tion system for contractors and subcontractors engaged in public work projects in order to better enforce existing labor laws and regulations in the public works industry   PURPOSE: This legislation creates a registration system for contractors that wish to bid on public works projects in New York. It would ensure public works contractors do not have previous labor law violations and will abide by New York labor laws and regulations, including prevailing wage requirements.   SUMMARY OF PROVISIONS: Section 1: Establishes a registration system for contractors and subcon- tractors that bid on "public works" in New York. It requires that contractors register with the Department of Labor and pay a registration fee. Once registered, the Department of Labor will issue a certificate of registration that must be presented to public entities when bidding on a project. The Commissioner of Labor is empowered to suspend or revoke a registration on a finding of wrong doing. The bill creates a process for the finding of violations, the ability to issue penalties, and a process for the contractor to appeal the suspension or revocation. Section 2: Establishes the effective date.   JUSTIFICATION: Public works projects in New York are governed by Article 8 of the New York Labor Law. Among other requirements, public work contractors are required to pay "prevailing wage" on public works projects. At times, public works contractors have been found to have violated the "prevail- ing wage" rates and/or other provisions of the Labor Law. Other states with similar systems have adopted a registration system for public works contractors to prevent bad actors from receiving contracts in the first place. This legislation would create a registration system in New York. This legislation would create a system whereby any contractor wishing to bid on a public works project must register with the Department of Labor and pay a registration fee. It would provide the Department an opportu- nity to vet the contractor to see if they had any previous violations of the Labor Law, and ensure only responsible contractors are allowed to bid on New York public works projects.   LEGISLATIVE HISTORY: 2016: A.9089-A   FISCAL IMPLICATIONS: To be determined.   EFFECTIVE DATE: 90 days after enactment.
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STATE OF NEW YORK ________________________________________________________________________ 3057 2017-2018 Regular Sessions IN ASSEMBLY January 25, 2017 ___________ Introduced by M. of A. MAGNARELLI, SKOUFIS, STECK, MAYER -- read once and referred to the Committee on Labor AN ACT to amend the labor law, in relation to establishing a registra- tion system for contractors and subcontractors engaged in public work projects in order to better enforce existing labor laws and regu- lations in the public works industry The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The labor law is amended by adding a new section 220-i to 2 read as follows: 3 § 220-i. Registration system for contractors and subcontractors. 1. 4 Definitions as used in this section: 5 a. "Contractor" means a person, partnership, association, joint stock 6 company, trust, corporation, or other legal business entity or successor 7 thereof who enters into a contract which is subject to the provisions of 8 this article, and includes any subcontractor or lower tier subcontractor 9 of a contractor as defined herein. 10 b. "Bureau" means the department of labor's bureau of public works. 11 2. No contractor shall bid on any contract for public work subject to 12 the provisions of this article, unless the contractor is registered 13 pursuant to this section. No contractor shall list a subcontractor in a 14 bid proposal for the contract unless the subcontractor is registered 15 pursuant to this section at the time the bid is made. 16 3. a. A contractor shall register in writing with the department on a 17 form provided by the commissioner. The form shall require the following 18 information: 19 i. The name, principal business address and telephone number of the 20 contractor. 21 ii. Whether the contractor is a corporation, partnership, sole 22 proprietorship, or other form of business entity. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD00549-01-7A. 3057 2 1 iii. The name and address of each person with a financial interest in 2 the contractor and the percentage interest, except that if the contrac- 3 tor is a publicly-traded corporation, the contractor shall supply the 4 names and addresses of the corporation's officers. 5 iv. The contractor's tax identification number and unemployment insur- 6 ance registration number. 7 v. Whether the contractor has any outstanding wage assessments against 8 it, pursuant to this article. 9 vi. Whether the contractor has been debarred under New York or federal 10 law. 11 vii. Whether the contractor has been debarred pursuant to the laws of 12 any other state. 13 viii. Any past violations of labor laws found by any governmental 14 entity. 15 ix. Whether or not the contractor is associated or a signatory to an 16 apprenticeship program under article 23 of this chapter. 17 x. Any other relevant and appropriate information as determined by the 18 commissioner. 19 b. At the time of registration, and subsequently upon request, the 20 contractor shall submit to the commissioner documentation demonstrating 21 that the contractor has worker's compensation insurance coverage for all 22 workers as required by law. 23 4. a. The contractor shall pay an initial annual non-refundable regis- 24 tration fee of three hundred dollars to the commissioner. The non-re- 25 fundable registration fee for the second annual registration shall be 26 three hundred dollars. Upon successful completion of two consecutive 27 years of registration, a contractor may elect to register for a two-year 28 period and pay a non-refundable registration fee of five hundred 29 dollars. 30 b. A contractor who is performing public work on the effective date of 31 this act shall submit the registration application form and fee to the 32 commissioner within thirty days of the effective date of this act. 33 c. The bureau may, in its discretion, determine a contractor is unfit 34 to be registered pursuant to this section. A contractor deemed unfit 35 pursuant to this section shall be provided with written notice from the 36 department and shall be afforded the opportunity to appeal such determi- 37 nation. 38 5. Upon receipt of the fee, form and documentation required by this 39 section, the commissioner shall issue a certificate of registration to 40 the contractor. A registration certificate shall be valid for one calen- 41 dar year from the date of registration. Registrations shall be renewed 42 not less than thirty days before the expiration date of the immediately 43 preceding registration. 44 6. Each contractor shall, after the bid is made and prior to the 45 awarding of the contract, submit to the public entity the certificates 46 of registration for all subcontractors listed in the bid proposal. 47 Applications for registration shall not be accepted as a substitute for 48 a certificate of registration for the purposes of this section. 49 7. a. A contractor who: 50 i. willfully hinders or delays the commissioner in the performance of 51 his duties in the enforcement of this act; 52 ii. fails to make, keep, and preserve any records as required under 53 this article; 54 iii. falsifies any such record, or refuses to make any such record 55 accessible to the commissioner upon demand;A. 3057 3 1 iv. refuses to furnish a sworn statement of such records or any other 2 information required for the enforcement of this act to the commissioner 3 upon demand; 4 v. pays or agrees to pay wages at a rate less than the rate prescribed 5 by this article; or 6 vi. otherwise violates any provision of this section, shall be guilty 7 of a class A misdemeanor and may be assessed a civil penalty of up to 8 fifty thousand dollars. 9 b. As an alternative to or in addition to sanctions provided by this 10 article, the commissioner may, after providing the contractor with 11 notice of any alleged violation of this act, and with an opportunity to 12 request a hearing before the commissioner: 13 i. deny renewal, revoke or suspend the registration of a contractor 14 for a period of not more than five years; or 15 ii. require a contractor, as a condition of initial or continued 16 registration, to provide a surety bond payable to the state. The surety 17 bond shall be for the benefit of workers damaged by any failure of a 18 contractor to pay wages or benefits pursuant to or otherwise comply with 19 the provisions of this article. The surety bond shall be in the amount 20 and form that the commissioner deems necessary for the protection of the 21 contractor's workers, but shall not exceed ten thousand dollars per 22 worker. 23 c. The bureau may order the immediate suspension of a contractor's 24 registration, prior to a formal hearing on the revocation of the 25 contractor's registration pursuant to paragraph b of this subdivision, 26 if the bureau determines that ordering an immediate suspension is in the 27 public interest and provided that the contractor is afforded an opportu- 28 nity to contest the immediate suspension in the following manner: 29 i. The bureau shall notify the contractor in writing of the immediate 30 revocation and the contractor's rights under this paragraph. 31 ii. The contractor may notify the bureau of its request for an oppor- 32 tunity to be heard and contest the immediate suspension in writing with- 33 in seventy-two hours of its receipt of immediate suspension notifica- 34 tion. 35 iii. Within seven business days of receipt of the notification from 36 the contractor pursuant to subparagraph ii of this paragraph, the bureau 37 shall grant the contractor a hearing to contest the immediate suspen- 38 sion. The bureau shall permit the contractor to present evidence at the 39 hearing. 40 iv. The bureau shall issue a written decision within five business 41 days of the hearing either upholding or reversing the contractor's imme- 42 diate suspension. The decision shall include the grounds for upholding 43 or reversing the contractor's immediate suspension. 44 v. If the contractor disagrees with the written decision, the contrac- 45 tor may appeal the decision to the commissioner. 46 d. If the bureau intends to impose an immediate suspension as set 47 forth in paragraph c of this subdivision, the bureau shall provide the 48 contractor with a notice of intent to suspend and the contractor may 49 request an administrative hearing before the commission within seventy- 50 two hours of the receipt of the notice of intent to suspend in order to 51 present evidence expeditiously in support of the position that the 52 suspension should not be imposed. The suspension shall not take effect 53 prior to the expiration of the seventy-two hour opportunity to request a 54 hearing. If such a request is not made, the suspension shall take effect 55 at the end of the seventy-two hour period. If such a request is made,A. 3057 4 1 the suspension shall take effect only after the commissioner conducts 2 the hearing. 3 e. If the bureau orders the immediate suspension of a contractor's 4 registration pursuant to paragraph b of this subdivision, the violation 5 shall have no effect on the registration of any contractor or subcon- 6 tractor, regardless of tier, in the contractual chain with the suspended 7 contractor. 8 § 2. This act shall take effect on the ninetieth day after it shall 9 have become a law. Effective immediately, the commissioner of labor 10 shall promulgate rules and regulations necessary or appropriate to carry 11 out the provisions of this act.