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

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-Amended.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                         5994--A

                               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  --  recommitted  to
          the  Committee  on  Labor  in accordance with Senate Rule 6, sec. 8 --
          committee discharged, bill amended, 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
          and  covered  projects  in order to better enforce existing labor laws
          and regulations 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    c.  "Covered  project"  means any project subject to the provisions of
    11  this article, including but not limited to,  public  work  projects  and
    12  those  subject  to  the provisions of sections two hundred twenty-four-a
    13  and two hundred twenty-four-d of this article.
    14    2. a. Prior to submitting a bid on  a  contract  for  public  work  or
    15  commencing  work on a covered project under private contract, a contrac-
    16  tor shall register in writing with the bureau on a form provided by  the
    17  commissioner. The form shall require the following information:
    18    i.  The  name,  principal business address and telephone number of the
    19  contractor.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01736-11-2

        S. 5994--A                          2

     1    ii. Whether the contractor  is  a  person,  partnership,  association,
     2  joint stock company, trust, corporation, or other form of business enti-
     3  ty.
     4    iii.  The name and address of each person with a financial interest in
     5  the contractor and the percentage interest, except that if the  contrac-
     6  tor  is  a  publicly-traded corporation, the contractor shall supply the
     7  names and addresses of the corporation's officers.
     8    iv. The contractor's tax identification number, unemployment insurance
     9  registration number, and workers' compensation board employee number.
    10    v. Whether the contractor has any outstanding wage assessments against
    11  it, pursuant to this article.
    12    vi. Whether the contractor has been debarred under New York or federal
    13  law within the last ten years.
    14    vii. Whether the contractor has been debarred pursuant to the laws  of
    15  any other state within the last ten years.
    16    viii. Whether the contractor has been finally determined by the appro-
    17  priate  authority to have violated any labor laws or employment tax laws
    18  including, but not limited to, the requirement to have workers'  compen-
    19  sation  coverage,  payment  of workers' compensation premiums, deduction
    20  and payment of income taxes, payment of unemployment insurance  contrib-
    21  utions or payment of prevailing wage.
    22    ix.  Whether  the contractor has been finally determined by the appro-
    23  priate authority to have violated any laws establishing workplace safety
    24  standards including the federal Occupational Safety and Health Act.
    25    x. Whether or not the contractor is associated, or a signatory to,  an
    26  apprenticeship  program  under  article twenty-three of this chapter. If
    27  so, the apprenticeship program shall be provided by the contractor.
    28    xi. Whether or not the contractor is a minority or  women-owned  busi-
    29  ness  enterprise  pursuant to the provisions of article fifteen-A of the
    30  executive law.
    31    b. At the time of registration, and upon request, the contractor shall
    32  submit to the commissioner documentation demonstrating that the contrac-
    33  tor has workers' compensation insurance  coverage  for  all  workers  as
    34  required  by  law,  including  any  and all declarations and information
    35  pages related to such policy which shall  be  electronically  accessible
    36  and searchable to the public, provided however, that in no event shall a
    37  worker's  name  or other personal identifying information be included in
    38  such database.  This information shall be made readily available to  the
    39  public  by  the  bureau  within  forty-eight hours of the initial public
    40  request.
    41    3. The contractor shall pay a non-refundable registration fee  of  two
    42  hundred  dollars  to the commissioner which shall be paid to the general
    43  fund. The commissioner, through regulations, shall reduce the  registra-
    44  tion fee associated with minority or women-owned business enterprises in
    45  order to promote the use of such businesses on covered projects.
    46    4.  Unless,  following  notice  and a hearing, the bureau determines a
    47  contractor unfit to  be  registered,  the  commissioner  shall  issue  a
    48  certificate  of  registration to the contractor upon receipt of the fee,
    49  form and documentation required by this section. A registration  certif-
    50  icate  shall  be valid for two calendar years from the date of registra-
    51  tion. Registrations may be renewed not less than thirty days before  the
    52  expiration  date  of the immediately preceding registration. The commis-
    53  sioner shall promulgate regulations  to  determine  under  what  circum-
    54  stances  a  contractor  would be unfit to be registered pursuant to this
    55  section. The notice to a contractor initially determined by the  commis-
    56  sioner  to  be unfit based upon the registration application shall be in

        S. 5994--A                          3

     1  writing, shall not be conclusory, and shall state the factual basis upon
     2  which the determination is based. Any documents, reports, or information
     3  that form a basis for  such  determination  shall  be  provided  to  the
     4  contractor  no  less  than  ten days before the hearing. For purposes of
     5  this subdivision, the term "unfit"  shall  mean  a  contractor  who  the
     6  commissioner  determines  to be unable to lawfully adhere to contractual
     7  obligations of this article and  responsibilities  including  prevailing
     8  wage  requirements pursuant to this article. Such determination shall be
     9  based on a clearly documented history, official record of past dealings,
    10  or a present demonstrable inability to lawfully  adhere  to  such  obli-
    11  gations and responsibilities.
    12    5.  No  contractor shall bid on a contract for public work unless they
    13  and all subcontractors listed in the bid, in addition to any subcontrac-
    14  tors associated with wage and/or fringe benefit payments to employees on
    15  the public work  project,  are  registered  pursuant  to  this  section.
    16  Further,  each  contractor must submit their certificate of registration
    17  as well as all certificates of registration for any and all  subcontrac-
    18  tors  for  such  contract at the time the bid is made.  Applications for
    19  registration shall not be accepted as a substitute for a certificate  of
    20  registration  for  the  purposes of this section.   For covered projects
    21  performed under private contract, the owner or developer of such project
    22  must ensure that any contractor which it hires, or subcontractor that is
    23  hired, to perform work on such project is registered  pursuant  to  this
    24  section.
    25    6.  a.  A  contractor who knowingly bids on a contract for public work
    26  without registering, or knowingly submits a bid with subcontractors that
    27  are not registered pursuant to subdivision five of this  section  shall,
    28  after  notice  and a hearing, be subject to a civil penalty of up to one
    29  thousand  dollars.    For  covered  projects  performed  under   private
    30  contract,  an  owner  or  developer  who knowingly commences work with a
    31  contractor or subcontractor that is not registered pursuant to  subdivi-
    32  sion five of this section shall, after notice and hearing, be subject to
    33  a civil penalty of up to one thousand dollars. A contractor who knowing-
    34  ly  commences work on a covered project without registering or knowingly
    35  contracts with an unregistered  subcontractor  for  work  on  a  covered
    36  project shall, after notice and hearing be subject to a civil penalty of
    37  up  to  one  thousand dollars. Any subcontractor who knowingly commences
    38  work on any covered project without registering shall, after notice  and
    39  hearing, be subject to a civil penalty of up to one thousand dollars.
    40    b. The commissioner may revoke or suspend a registration if a contrac-
    41  tor  or  subcontractor has been finally determined to be in violation of
    42  the prevailing wage requirements of this article.
    43    c. Nothing in this section shall be construed to  limit  or  supersede
    44  the authority of any state or municipal entity to enforce existing labor
    45  laws,  safety  standards,  regulations, codes or any other existing laws
    46  relative to public work.
    47    d. A registration pursuant to this section is not necessary for a  bid
    48  or  work  on  a  contract for public work and penalties pursuant to this
    49  section shall not apply when a state of emergency is  declared  pursuant
    50  to  section twenty-four of the executive law, when the governor declares
    51  a disaster emergency pursuant to section twenty-eight of  the  executive
    52  law, or when the President issues a major disaster or emergency declara-
    53  tion  and  such  work arises from or is in connection with the actual or
    54  impending declared emergency or disaster or  pursuant  to  an  emergency
    55  construction  contract,  or other contract entered into due to an urgent
    56  and unexpected event where public safety or the conservation  of  public

        S. 5994--A                          4

     1  resources is at risk, as authorized by law, including but not limited to
     2  the  public  buildings law, the state finance law, the general municipal
     3  law, or the public authorities law.
     4    7.    The  department shall establish and maintain an online system to
     5  make available  all  registrations  and  disclosures  required  by  this
     6  section.
     7    8.   The department shall prescribe regulations necessary to carry out
     8  the provisions of this section within one hundred eighty days after  its
     9  effective date.
    10    §  2. This act shall take effect immediately, provided however, subdi-
    11  visions one through six of section 220-i of the labor law  as  added  by
    12  section one of this act shall take effect one year after such date.
feedback