Bill Text: NY S05994 | 2021-2022 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Establishes a registration system for contractors and subcontractors engaged in public work and covered projects in order to better enforce existing labor laws and regulations in the public works industry.

Spectrum: Slight Partisan Bill (Democrat 9-4)

Status: (Passed) 2022-12-30 - APPROVAL MEMO.105 [S05994 Detail]

Download: New_York-2021-S05994-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          5994

                               2021-2022 Regular Sessions

                    IN SENATE

                                     March 25, 2021
                                       ___________

        Introduced  by  Sen.  RYAN  --  read twice and ordered printed, and when
          printed to be committed 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  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.
    18    iii. The name and address of each person with a financial interest  in
    19  the  contractor and the percentage interest, except that if the contrac-
    20  tor is a publicly-traded corporation, the contractor  shall  supply  the
    21  names and addresses of the corporation's officers.
    22    iv. The contractor's tax identification number and unemployment insur-
    23  ance registration number.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01736-01-1

        S. 5994                             2

     1    v. Whether the contractor has any outstanding wage assessments against
     2  it, pursuant to this article.
     3    vi. Whether the contractor has been debarred under New York or federal
     4  law within the last ten years.
     5    vii.  Whether the contractor has been debarred pursuant to the laws of
     6  any other state within the last ten years.
     7    viii. Whether the contractor has been finally determined by the appro-
     8  priate authority to have violated any labor laws or employment tax  laws
     9  including,  but not limited to, the requirement to have workers' compen-
    10  sation coverage, payment of workers'  compensation  premiums,  deduction
    11  and  payment of income taxes, payment of unemployment insurance contrib-
    12  utions or payment of prevailing wage.
    13    ix. Whether the contractor has been finally determined by  the  appro-
    14  priate authority to have violated any laws establishing workplace safety
    15  standards including the federal Occupational Safety and Health Act.
    16    x.  Whether or not the contractor is associated, or a signatory to, an
    17  apprenticeship program under article twenty-three of  this  chapter.  If
    18  so, the apprenticeship program shall be provided by the contractor.
    19    xi.  Whether  or not the contractor is a minority or women-owned busi-
    20  ness enterprise pursuant to the provisions of article fifteen-A  of  the
    21  executive law.
    22    b. At the time of registration, and upon request, the contractor shall
    23  submit to the commissioner documentation demonstrating that the contrac-
    24  tor  has  workers'  compensation  insurance  coverage for all workers as
    25  required by law. This information shall be made readily available to the
    26  public by the bureau within forty-eight  hours  of  the  initial  public
    27  request.
    28    3.  The  contractor shall pay a non-refundable registration fee of two
    29  hundred dollars to the commissioner which shall be paid to  the  general
    30  fund.  The commissioner, through regulations, shall reduce the registra-
    31  tion fee associated with minority or women-owned business enterprises in
    32  order to promote the use of such businesses on public work projects.
    33    4. Unless, following notice and a hearing,  the  bureau  determines  a
    34  contractor  unfit  to  be  registered,  the  commissioner  shall issue a
    35  certificate of registration to the contractor upon receipt of  the  fee,
    36  form  and documentation required by this section. A registration certif-
    37  icate shall be valid for two calendar years from the date  of  registra-
    38  tion.  Registrations may be renewed not less than thirty days before the
    39  expiration date of the immediately preceding registration.  The  commis-
    40  sioner  shall  promulgate  regulations  to  determine under what circum-
    41  stances a contractor would be unfit to be registered  pursuant  to  this
    42  section.  The notice to a contractor initially determined by the commis-
    43  sioner to be unfit based upon the registration application shall  be  in
    44  writing, shall not be conclusory, and shall state the factual basis upon
    45  which the determination is based. Any documents, reports, or information
    46  that  form  a  basis  for  such  determination  shall be provided to the
    47  contractor within a reasonable time before the hearing. For purposes  of
    48  this  subdivision,  the  term  "unfit"  shall  mean a contractor who the
    49  commissioner determines to be unable to lawfully adhere to  public  work
    50  contractual  obligations  and responsibilities including prevailing wage
    51  requirements pursuant to this article. Such determination shall be based
    52  on a clearly documented history, official record of past dealings, or  a
    53  present  demonstrable  inability  to lawfully adhere to such obligations
    54  and responsibilities.
    55    5. No contractor shall bid on a contract for public work  unless  they
    56  and all subcontractors listed in the bid, in addition to any subcontrac-

        S. 5994                             3

     1  tors associated with wage and/or fringe benefit payments to employees on
     2  the  public  work  project,  are  registered  pursuant  to this section.
     3  Further, each contractor must submit their certificate  of  registration
     4  as  well as all certificates of registration for any and all subcontrac-
     5  tors for such contract at the time the bid is made.    Applications  for
     6  registration  shall not be accepted as a substitute for a certificate of
     7  registration for the purposes of this section.
     8    6. a. A contractor who knowingly bids on a contract  for  public  work
     9  without registering, or knowingly submits a bid with subcontractors that
    10  are  not  registered pursuant to subdivision five of this section shall,
    11  after notice and a hearing, be subject to a civil penalty of up  to  one
    12  thousand dollars.
    13    b. The commissioner may revoke or suspend a registration if a contrac-
    14  tor  or  subcontractor has been finally determined to be in violation of
    15  the prevailing wage requirements of this article.
    16    c. Nothing in this section shall be construed to  limit  or  supersede
    17  the authority of any state or municipal entity to enforce existing labor
    18  laws,  safety  standards,  regulations, codes or any other existing laws
    19  relative to public work.
    20    d. A registration pursuant to this section is not necessary for a  bid
    21  or  work  on  a  contract for public work and penalties pursuant to this
    22  section shall not apply when a state of emergency is  declared  pursuant
    23  to  section twenty-four of the executive law, when the governor declares
    24  a disaster emergency pursuant to section twenty-eight of  the  executive
    25  law, or when the President issues a major disaster or emergency declara-
    26  tion  and  such  work arises from or is in connection with the actual or
    27  impending declared emergency or disaster or  pursuant  to  an  emergency
    28  construction  contract,  or other contract entered into due to an urgent
    29  and unexpected event where public safety or the conservation  of  public
    30  resources is at risk, as authorized by law, including but not limited to
    31  the  public  buildings law, the state finance law, the general municipal
    32  law, or the public authorities law.
    33    7. The department shall prescribe regulations necessary to  carry  out
    34  the  provisions of this section within one hundred eighty days after its
    35  effective date.
    36    § 2. This act shall take effect immediately, provided however,  subdi-
    37  visions  five  and  six  of  section  220-i of the labor law as added by
    38  section one of this act shall take effect one year after such  date  and
    39  shall apply to bids for public work projects on or after such date.
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