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A03057 Summary:

COSPNSRSkoufis, 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.
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A03057 Actions:

01/25/2017referred to labor
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A03057 Memo:

submitted in accordance with Assembly Rule III, Sec 1(f)
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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A03057 Text:

                STATE OF NEW YORK
                               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.

        A. 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.
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