S5659-2011 Actions

• Aug 15, 2012: PRINT NUMBER 5659C
• Aug 15, 2012: AMEND AND RECOMMIT TO RULES
• Jun 21, 2012: COMMITTED TO RULES
• Jun 11, 2012: ADVANCED TO THIRD READING
• Jun 6, 2012: 2ND REPORT CAL.
• Jun 5, 2012: 1ST REPORT CAL.1075
• Apr 24, 2012: PRINT NUMBER 5659B
• Apr 24, 2012: AMEND AND RECOMMIT TO LABOR
• Feb 24, 2012: PRINT NUMBER 5659A
• Feb 24, 2012: AMEND AND RECOMMIT TO LABOR
• Jan 4, 2012: REFERRED TO LABOR
• Jun 9, 2011: REFERRED TO LABOR

S5659-2011 Votes

S5659-2011 Memo

BILL NUMBER:S5659

TITLE OF BILL:
An act
to amend the labor law and the general municipal law, in relation to
reciprocity of debarments imposed under the federal Davis-Bacon Act

PURPOSE:
The purpose of the bill is to ensure that those contractors who are
debarred on the federal level under the Davis-Bacon Act for wage
payment violations, are unable to bid on state public work contracts;
this legislation would close a loophole in the existing law. Under
the current law, contractors who have been debarred from federal job
sites are considered on equal footing with law-abiding contractors.
This bill would remedy this gross inequity by granting reciprocity to
debarments imposed by the federal government on contractors who have
violated the Davis-Bacon Act. New York courts have long settled that
the right to bid on a public work contract is not a property right.
This privilege to bid must be subject to certain restrictions, one of
which should be the ability of the bidder to comply with certain
prevailing wage provisions.

SUMMARY OF PROVISIONS:
Section 1 of the bill amends �220-b of the Labor law so that any
contractor who has been debarred from federal job sites for having
disregarded obligations to employees under the Davis-Bacon Act shall
also be debarred under the Labor law from bidding on or being awarded
similar contracts on public work job sites sponsored by the State or
any of its political subdivisions. The contractor may appeal such
determination to the Department of Labor (DOL).

Section 2 of the bill would add a new subdivision 1-b to section 103
of the general municipal law so that whether or not a contractor is
debarred under the David-Bacon Act will be considered in the
selection of a lowest responsible bidder. This provision will come
into play in the case where a contractor has appealed to DOL and been
removed from the state debarment list; the entity awarding the
contract will still be able to consider the circumstances of the
federal debarment.

Section 3 provides for an immediate effective date.

EXISTING LAW:
As stated above, under the current law, contractors who have been
debarred from federal job sites are considered on equal footing with
law-abiding contractors.

JUSTIFICATION:
Under Article 8 of the labor law, contractors or subcontractors who
engage in a public work project sponsored by the State of New York or
any of its political subdivisions are required to pay their laborers,
workers and material men not less than the prevailing rate of wage.

Recent studies indicate that fraud in the construction industry in New
York State has reached epidemic proportions. Dishonest contractors,
in an effort to cut corners and save on labor costs, have engaged in


a number of schemes to avoid paying workers the wage to which they
are statutorily entitled. They include the kickback of wages, dual
payrolls and cash-off-the-books schemes.

Under the existing law, a contractor may he debarred from
participation in public work projects if the Bureau of Public Works
finds that the contractor has knowingly committed two violations of
the prevailing wage law within a six-year period, or one violation
relating to the falsification of payroll records or the kickback of
wages or supplements. Debarments are also imposed when a person or
corporation, or any officer or shareholder who Owns or controls at
least ten percent of the outstanding stock of such corporation has
been convicted of any of an enumerated list of felonies for conduct
relating to obtaining, performing or attempting to perform a public
work contract with the state, any municipal corporation, public
benefit corporation or public body. Its federal counterpart, the
Davis-Bacon Act, imposes a similar penalty on contractors who are
found to have disregarded their obligations to employees under
federal wage-and-hour laws. At the present time, however, New York
labor law fails to recognize debarments imposed by the United States
Department of Labor. Working at a public work job site is a
privilege, not a right. New Yorkers are entitled to expect the
highest standard of integrity from contractors who bid on these
projects.

LEGISLATIVE HISTORY:
2010 Session - New Bill

FISCAL IMPLICATIONS:
None to State.

LOCAL FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
Immediately.

S5659-2011 Text

 S T A T E   O F   N E W   Y O R K
 
 
                                         5659
 2011-2012 Regular Sessions
 I N  SENATE
 June 9, 2011
 
 Introduced  by  Sen.  SAVINO -- read twice and ordered printed, and when
 printed to be committed to the Committee on Labor
 

AN ACT to amend the labor law and the general municipal law, in relation
 to reciprocity of debarments imposed under the federal Davis-Bacon Act
 THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM
 BLY, DO ENACT AS FOLLOWS:

 

Section  1. Paragraph b of subdivision 3 of section 220-b of the labor
 law is amended by adding a new subparagraph 3 to read as follows:

 (3) WHEN ANY PERSON OR ENTITY IS DEBARRED FOR HAVING DISREGARDED OBLI
 GATIONS TO EMPLOYEES UNDER THE DAVIS-BACON ACT  PURSUANT  TO  40  U.S.C.
 3144  AND  29  C.F.R.  5.12, SUCH PERSON OR ENTITY, AND ANY FIRM, CORPO
 RATION, PARTNERSHIP OR ASSOCIATION IN WHICH THE PERSON OR ENTITY OWNS OR
 CONTROLS AT LEAST TEN PER CENTUM, SHALL BE INELIGIBLE TO SUBMIT A BID ON
 OR BE AWARDED ANY PUBLIC WORKS CONTRACT WITH THE  STATE,  ANY  MUNICIPAL
 CORPORATION,  PUBLIC  BENEFIT CORPORATION OR PUBLIC BODY FOR A PERIOD OF
 THREE YEARS FROM THE DATE ON WHICH THE NAME OF THE PERSON OR  ENTITY  IS
 PUBLISHED  IN  THE  LIST  OF  DEBARRED CONTRACTORS PURSUANT TO 40 U.S.C.
 3144. THE DEPARTMENT WILL NOTIFY THE PERSON  OR  ENTITY  IMMEDIATELY  OF
 SUCH INELIGIBILITY AND SUCH PERSON OR ENTITY MUST BE AFFORDED THE OPPOR
 TUNITY TO APPEAL TO THE DEPARTMENT.
 

S  2. 

Section 103 of the general municipal law is amended by adding a
 new subdivision 1-b to read as follows:

 1-B. IN DETERMINING THE LOWEST RESPONSIBLE BIDDER, THE OFFICER,  BOARD
 OR  AGENCY  OF  ANY  POLITICAL  SUBDIVISION  OR  OF ANY DISTRICT THEREIN
 CHARGED WITH AWARDING OF CONTRACTS, SHALL CONSIDER WHETHER  OR  NOT  THE
 BIDDER,  OR  A  PERSON  OR  ENTITY  WITH AN INTEREST OF AT LEAST TEN PER
 CENTUM IN THE BIDDER, IS DEBARRED FOR HAVING DISREGARDED OBLIGATIONS  TO
 EMPLOYEES  UNDER  THE  DAVIS-BACON ACT PURSUANT TO 40 U.S.C. 3144 AND 29
 C.F.R. 5.12, IN MAKING SUCH DETERMINATION OF AWARD.
 

S 3. This act shall take effect immediately.
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD10848-01-1

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