Bill S3484A-2013

Relates to project labor agreements for public work projects

Relates to the use of project labor agreements for public work projects by public authorities and the state.

Details

Actions

  • Jan 8, 2014: REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
  • Jun 21, 2013: COMMITTED TO RULES
  • Jun 10, 2013: ADVANCED TO THIRD READING
  • Jun 5, 2013: 2ND REPORT CAL.
  • Jun 4, 2013: 1ST REPORT CAL.1000
  • May 6, 2013: REPORTED AND COMMITTED TO FINANCE
  • Mar 19, 2013: PRINT NUMBER 3484A
  • Mar 19, 2013: AMEND AND RECOMMIT TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
  • Feb 4, 2013: REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS

Meetings

Calendars

Votes

VOTE: COMMITTEE VOTE: - Corporations, Authorities and Commissions - May 6, 2013
Ayes (2): Ranzenhofer, Flanagan
Ayes W/R (2): Martins, Perkins
Nays (1): Squadron
Excused (1): Larkin

Memo

BILL NUMBER:S3484A

TITLE OF BILL: An act to amend the public authorities law, the state finance law and the labor law, in relation to project labor agreements for public work projects; and providing for the repeal of such provisions upon expiration thereof

PURPOSE OF THE BILL:

To increase the options of certain public entities seeking contracts for public improvements.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1 - would establish the "Public Construction Savings Pilot Act".

Sections 2 - would amend the Public Authorities Law by adding a new section 2880-B to provide that a contractor bidding on a request for proposal issued by any public authority for the erection, construction or alteration of buildings, or the construction, reconstruction, repair, or improvement to roads, tollroads, highways, railroads, bridges, terminals, or other transportation facilities with a project labor agreement may submit a bid that does not include a project labor agreement and such contract shall be awarded to the contractor with the low bid regardless of whether a project labor agreement was included in the bid proposal.

Section 3 amends the State Finance Law by adding a new section 148 to provide that a contractor bidding on a request for Proposal issued by an officer, board, department commission or commissions for the erection, construction or alteration of buildings, or the construction, reconstruction, repair, or improvement to roads, tollroads, highways, railroads, bridges, terminals, or other transportation facilities for the state, with a project labor agreement may submit a bid that does not include a project labor agreement and such contract shall be awarded to the contractor with the low bid regardless of whether a project labor agreement was included in the bid proposal.

Section 4 - amends paragraph (a) of subdivision 2 of section 222 of the Labor Law to provide that participation in a project labor agreement shall not be required, but may be optional at the choice of the public entity seeking bids for a project, that as part of the bid, contractors shall be notified of the existence of a project labor agreement and their option to participate in such agreement, and that whether a bid includes participation in the agreement or not, the contract will be awarded to the low bid.

Section 5 - provides that this act shall take effect 60 days after it shall have become a law, and shall expire five years after such effective date when upon such date the provisions of this act shall be deemed repealed. This act shall control all contracts advertised or solicited for bid on or after the effective date of this act under the provisions of any law requiring contracts to be let pursuant to provisions of law amended by this act.

EXISTING LAW:

Section 222 of the Labor Law authorizes a public entity to require a Project Labor Agreement (PLA) where it determines to do so in accordance with specified statutory criteria. The law provides that where a PLA is required, the public works project will not be subject to the separate bidding requirements pursuant to the Wicks Law, but instead will be subject to the restrictions of the PLA, the contractor providing a labor and material bond and a performance bond, and contractor and subcontractor participation in apprentice training programs for the trades they employ.

JUSTIFICATION:

Current law acts to discourage true arms-length bidding to obtain the best possible prices on public contracts, Assumptions are made that bids will be lower with or without inclusion of Project labor agreements without allowing bidding to actually determine what is the best and most cost effective choice for projects. Jobs bid without participation in the PLA would, of course, be required to comply with any laws, such as the Wicks Law, that would be waived with participation in the PLA, This legislation would allow a bidder to submit a responsive bid with or without a PLA and would require the public owner to award the job to the lowest bidder, regardless of whether such bidder has included a PLA in their proposal. In this way, taxpayers are assured that they are receiving the lowest price for needed public construction.

FISCAL IMPLICATIONS:

This bill will result in millions of dollars of cost-savings to the State and public authorities.

PRIOR LEGISLATIVE HISTORY:

This is a new bill

EFFECTIVE DATE:

This act shall take effect 60 days after it shall have become a law, and shall expire five years after such effective date when upon such date the provisions of this act shall be deemed repealed. This act shall control all contracts advertised or solicited for bid on or after the effective date of this act under the provisions of any law requiring contracts to be let pursuant to provisions of law amended by this act.


Text

STATE OF NEW YORK ________________________________________________________________________ 3484--A 2013-2014 Regular Sessions IN SENATE February 4, 2013 ___________
Introduced by Sens. RANZENHOFER, DeFRANCISCO -- read twice and ordered printed, and when printed to be committed to the Committee on Corpo- rations, Authorities and Commissions -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said commit- tee AN ACT to amend the public authorities law, the state finance law and the labor law, in relation to project labor agreements for public work projects; and providing for the repeal of such provisions upon expira- tion thereof THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. This act shall be known and may be cited as the "public construction savings pilot act". S 2. The public authorities law is amended by adding a new section 2880-b to read as follows: S 2880-B. PROJECT LABOR AGREEMENTS BY PUBLIC AUTHORITIES. A CONTRACTOR BIDDING ON A REQUEST FOR PROPOSAL ISSUED BY ANY PUBLIC AUTHORITY FOR (I) THE ERECTION, CONSTRUCTION OR ALTERATION OF BUILDINGS, OR (II) THE CONSTRUCTION, RECONSTRUCTION, REPAIR OR IMPROVEMENT TO ROADS, TOLLROADS, HIGHWAYS, RAILWAYS, BRIDGES, TERMINALS, OR OTHER TRANSPORTATION FACILI- TIES, WITH A PROJECT LABOR AGREEMENT PURSUANT TO PARAGRAPH (A) OF SUBDI- VISION TWO OF SECTION TWO HUNDRED TWENTY-TWO OF THE LABOR LAW, MAY SUBMIT A BID THAT DOES NOT INCLUDE A PROJECT LABOR AGREEMENT AND SUCH CONTRACT FOR PUBLIC WORK SHALL BE AWARDED TO THE CONTRACTOR WITH THE LOW BID REGARDLESS OF WHETHER A PROJECT LABOR AGREEMENT WAS INCLUDED IN A CONTRACTOR'S BID PROPOSAL. S 3. The state finance law is amended by adding a new section 148 to read as follows: S 148. PROJECT LABOR AGREEMENTS. A CONTRACTOR BIDDING ON A REQUEST FOR PROPOSAL ISSUED BY AN OFFICER, BOARD, DEPARTMENT, COMMISSION OR COMMIS- SIONS FOR (I) THE ERECTION, CONSTRUCTION OR ALTERATION OF BUILDINGS FOR
THE STATE, OR (II) THE CONSTRUCTION, RECONSTRUCTION, REPAIR OR IMPROVE- MENT TO ROADS, TOLLROADS, HIGHWAYS, RAILWAYS, BRIDGES, TERMINALS, OR OTHER TRANSPORTATION FACILITIES FOR THE STATE, WITH A PROJECT LABOR AGREEMENT PURSUANT TO PARAGRAPH (A) OF SUBDIVISION TWO OF SECTION TWO HUNDRED TWENTY-TWO OF THE LABOR LAW, MAY SUBMIT A BID THAT DOES NOT INCLUDE A PROJECT LABOR AGREEMENT AND SUCH CONTRACT FOR PUBLIC WORK SHALL BE AWARDED TO THE CONTRACTOR WITH THE LOW BID REGARDLESS OF WHETH- ER A PROJECT LABOR AGREEMENT WAS INCLUDED IN A CONTRACTOR'S BID PROPOSAL. S 4. Paragraph (a) of subdivision 2 of section 222 of the labor law, as added by section 18 of part MM of chapter 57 of the laws of 2008, is amended to read as follows: (a) [Any] EXCEPT AS PROVIDED IN SECTION TWENTY-EIGHT HUNDRED EIGHTY-B OF THE PUBLIC AUTHORITIES LAW OR SECTION ONE HUNDRED FORTY-EIGHT OF THE STATE FINANCE LAW, ANY agency, board, department, commission or officer of the state of New York, or of any political subdivision thereof as defined in section one hundred of the general municipal law, municipal corporation as defined in section sixty-six of the general construction law, public benefit corporation, or local or state authority as defined in section two of the public authorities law having jurisdiction over the public work may require a contractor awarded a contract, subcon- tract, lease, grant, bond, covenant or other agreement for a project to enter into a project labor agreement during and for the work involved with such project when such requirement is part of the agency, board, department, commission or officer of the state of New York, political subdivision, municipal corporation, public benefit corporation or local or state authority having jurisdiction over the public work request for proposals for the project and when the agency, board, department, commission or officer of the state of New York, political subdivision, municipal corporation, public benefit corporation or local or state authority having jurisdiction over the public work determines that its interest in obtaining the best work at the lowest possible price, preventing favoritism, fraud and corruption, and other considerations such as the impact of delay, the possibility of cost savings advantages, and any local history of labor unrest, are best met by requiring a project labor agreement. S 5. This act shall take effect on the sixtieth day after it shall have become a law and shall expire 5 years after such effective date when upon such date the provisions of this act shall be deemed repealed. This act shall control all contracts advertised or solicited for bid on or after the effective date of this act under the provisions of any law requiring contracts to be let pursuant to provisions of law amended by this act.

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