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A03057 Summary:

BILL NOA03057B
 
SAME ASSAME AS S04400-B
 
SPONSORMagnarelli
 
COSPNSRSkoufis, Steck, Mayer, Cook, Jaffee, D'Urso, Moya, Harris, Ortiz, Jenne, Bronson, Brindisi, Barnwell
 
MLTSPNSREnglebright, Simon, Woerner
 
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:

BILL NOA03057B
 
01/25/2017referred to labor
05/23/2017amend and recommit to labor
05/23/2017print number 3057a
05/30/2017amend and recommit to labor
05/30/2017print number 3057b
06/07/2017reported referred to codes
06/20/2017reported referred to ways and means
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A03057 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A3057B
 
SPONSOR: Magnarelli
  TITLE OF BILL: An act to amend the labor law, in relation to estab- lishing 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   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: Immediately, provided however, subdivisions five and six of section 220-i of the Labor Law as added by section one of this act shall take effect one year after such date and shall apply to bids for public work projects on or after such date.
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A03057 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         3057--B
 
                               2017-2018 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 25, 2017
                                       ___________
 
        Introduced  by M. of A. MAGNARELLI, SKOUFIS, STECK, MAYER, COOK, JAFFEE,
          D'URSO, MOYA, HARRIS, ORTIZ, JENNE, BRONSON, BRINDISI  --  Multi-Spon-
          sored  by  --  M.  of  A. ENGLEBRIGHT, SIMON, WOERNER -- read once and
          referred to the Committee  on  Labor  --  committee  discharged,  bill
          amended,  ordered reprinted as amended and recommitted to said commit-
          tee -- again reported from said  committee  with  amendments,  ordered
          reprinted as amended and recommitted to said committee
 
        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  As used in this section:
     5    a.  "Contractor" means any contractor or subcontractor entering into a
     6  contract to  perform  construction,  demolition,  reconstruction,  exca-
     7  vation, rehabilitation, repair, installation, renovation, alteration, or
     8  custom fabrication, which is subject to the provisions of this article.
     9    b. "Bureau" means the department's bureau of public works.
    10    2.  a.  Prior  to  submitting a bid on a contract for a public work, a
    11  contractor shall register in writing with the bureau on a form  provided
    12  by the commissioner. The form shall require the following information:
    13    i.  The  name,  principal business address and telephone number of the
    14  contractor.
    15    ii. Whether the contractor  is  a  person,  partnership,  association,
    16  joint stock company, trust, corporation, or other form of business enti-
    17  ty.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00549-07-7

        A. 3057--B                          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 within the last ten years.
    11    vii.  Whether the contractor has been debarred pursuant to the laws of
    12  any other state within the last ten years.
    13    viii. Whether the contractor has been finally determined by the appro-
    14  priate authority to have violated any labor laws or employment tax  laws
    15  including,  but not limited to, the requirement to have workers' compen-
    16  sation coverage, payment of workers'  compensation  premiums,  deduction
    17  and  payment of income taxes, payment of unemployment insurance contrib-
    18  utions or payment of prevailing wage.
    19    ix. Whether the contractor has been finally determined by  the  appro-
    20  priate authority to have violated any laws establishing workplace safety
    21  standards including the federal Occupational Safety and Health Act.
    22    x.  Whether or not the contractor is associated, or a signatory to, an
    23  apprenticeship program under article twenty-three of  this  chapter.  If
    24  so, the apprenticeship program shall be provided by the contractor.
    25    xi.  Whether  or not the contractor is a minority or women-owned busi-
    26  ness enterprise pursuant to the provisions of article fifteen-A  of  the
    27  executive law.
    28    b. At the time of registration, and upon request, the contractor shall
    29  submit to the commissioner documentation demonstrating that the contrac-
    30  tor  has  workers'  compensation  insurance  coverage for all workers as
    31  required by law. This information shall be made readily available to the
    32  public by the bureau within forty-eight  hours  of  the  initial  public
    33  request.
    34    3.  The  contractor shall pay a non-refundable registration fee of two
    35  hundred dollars to the commissioner which shall be paid to  the  general
    36  fund.  The commissioner, through regulations, shall reduce the registra-
    37  tion fee associated with minority or women-owned business enterprises in
    38  order to promote the use of such businesses on public work projects.
    39    4. Unless, following notice and a hearing,  the  bureau  determines  a
    40  contractor  unfit  to  be  registered,  the  commissioner  shall issue a
    41  certificate of registration to the contractor upon receipt of  the  fee,
    42  form  and documentation required by this section. A registration certif-
    43  icate shall be valid for two calendar years from the date  of  registra-
    44  tion.  Registrations may be renewed not less than thirty days before the
    45  expiration date of the immediately preceding registration.  The  commis-
    46  sioner  shall  promulgate  regulations  to  determine under what circum-
    47  stances a contractor would be unfit to be registered  pursuant  to  this
    48  section.  The notice to a contractor initially determined by the commis-
    49  sioner to be unfit based upon the registration application shall  be  in
    50  writing, shall not be conclusory, and shall state the factual basis upon
    51  which the determination is based. Any documents, reports, or information
    52  that  form  a  basis  for  such  determination  shall be provided to the
    53  contractor within a reasonable time before the hearing. For purposes  of
    54  this  subdivision,  the  term  "unfit"  shall  mean a contractor who the
    55  commissioner determines to be unable to lawfully adhere to  public  work
    56  contractual  obligations  and responsibilities including prevailing wage

        A. 3057--B                          3
 
     1  requirements pursuant to this article. Such determination shall be based
     2  on a clearly documented history, official record of past dealings, or  a
     3  present  demonstrable  inability  to lawfully adhere to such obligations
     4  and responsibilities.
     5    5.  No  contractor shall bid on a contract for public work unless they
     6  and all subcontractors listed in the bid, in addition to any subcontrac-
     7  tors associated with wage and/or fringe benefit payments to employees on
     8  the public work  project,  are  registered  pursuant  to  this  section.
     9  Further,  each  contractor must submit their certificate of registration
    10  as well as all certificates of registration for any and all  subcontrac-
    11  tors  for  such  contract at the time the bid is made.  Applications for
    12  registration shall not be accepted as a substitute for a certificate  of
    13  registration for the purposes of this section.
    14    6.  a.  A  contractor who knowingly bids on a contract for public work
    15  without registering, or knowingly submits a bid with subcontractors that
    16  are not registered pursuant to subdivision five of this  section  shall,
    17  after  notice  and a hearing, be subject to a civil penalty of up to one
    18  thousand dollars.
    19    b. The commissioner may revoke or suspend a registration if a contrac-
    20  tor or subcontractor has been finally determined to be in  violation  of
    21  the prevailing wage requirements of this article.
    22    c.  Nothing  in  this section shall be construed to limit or supersede
    23  the authority of any state or municipal entity to enforce existing labor
    24  laws, safety standards, regulations, codes or any  other  existing  laws
    25  relative to public work.
    26    d.  A registration pursuant to this section is not necessary for a bid
    27  or work on a contract for public work and  penalties  pursuant  to  this
    28  section  shall  not apply when a state of emergency is declared pursuant
    29  to section twenty-four of the executive law, when the governor  declares
    30  a  disaster  emergency pursuant to section twenty-eight of the executive
    31  law, or when the President issues a major disaster or emergency declara-
    32  tion and such work arises from or is in connection with  the  actual  or
    33  impending  declared  emergency  or  disaster or pursuant to an emergency
    34  construction contract, or other contract entered into due to  an  urgent
    35  and  unexpected  event where public safety or the conservation of public
    36  resources is at risk, as authorized by law, including but not limited to
    37  the public buildings law, the state finance law, the  general  municipal
    38  law, or the public authorities law.
    39    7.  The  department shall prescribe regulations necessary to carry out
    40  the provisions of this section within one hundred eighty days after  its
    41  effective date.
    42    §  2. This act shall take effect immediately, provided however, subdi-
    43  visions five and six of section 220-i of  the  labor  law  as  added  by
    44  section  one  of this act shall take effect one year after such date and
    45  shall apply to bids for public work projects on or after such date.
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