S77-2013 Actions

• Feb 1, 2013: COMMITTEE DISCHARGED AND COMMITTED TO INFRASTRUCTURE AND CAPITAL INVESTMENT
• Jan 9, 2013: REFERRED TO LABOR

S77-2013 Memo

BILL NUMBER:S77

TITLE OF BILL:
An act
to amend the labor law, in relation to making contractors ineligible to
bid for a public work contract if prevailing rate wages and supplements
due from a prior public work contract remain unpaid

PURPOSE:
To prohibit contractors and subcontractors from bidding on public work
contracts until all prevailing wages and supplements due from such
prior contracts are paid.

SUMMARY OF PROVISIONS:
The bill would amend section 220-b(3)(b) of the Labor Law to prohibit
any contractor, subcontractor, or their substantially-owned
affiliates, partners, controlling shareholders or successors from
bidding on or being awarded a public work contract until the
prevailing wages and supplements determined to be due from prior
public work contracts are paid.

EXISTING LAW:
Section 220-b(3) of the Labor Law prohibits any contractor,
subcontractor, or their substantially owned affiliates, partners,
controlling shareholders or successors from bidding on or being
awarded a public work contract within five years following two final
determinations that they willfully failed to pay prevailing wages and
supplements, or after a final determination involving the
falsification of records or kickback of wages.

JUSTIFICATION:
The state spends a significant amount of money on public work
projects. The payment of prevailing wages to employees for public
work is required under the state constitution and labor law.
Contractors awarded public work contracts have a legal duty to comply
with the law and should not be allowed to bid on new projects until
they fulfill that duty. Public work employees depend upon their
earnings to support themselves and their families and are entitled to
be paid in a timely manner.

This bill addresses a common problem where a contractor or
subcontractor that is violating the prevailing wage law has several
other projects in the works. The enforcement officer may have a
complaint for non-payment concerning one of these projects, but not
for the others. If the hearing on the complaint finds a willful
failure to pay prevailing wages, the contractor may still continue to
bid and be awarded new public work contracts even if wages remain due
from prior projects.
This problem occurs even where contractors enter into consent orders
or settlements to pay wages. This legislation would ensure that where
such determinations have been reached, the contractor may not bid or
receive new contracts until the payment of wages is satisfied.

PRIOR LEGISLATIVE HISTORY:
2011-12:   S.730
2009-2010: S.3398 Referred to Labor


FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
This act shall take effect immediately.

S77-2013 Text

 S T A T E   O F   N E W   Y O R K
 
 
                                          77
 2013-2014 Regular Sessions
 I N  SENATE
 (PREFILED)
 January 9, 2013
 
 Introduced  by  Sen. PERALTA -- 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 making contractors  ineli
 gible  to  bid for a public work contract if prevailing rate wages and
 supplements due from a prior public work contract remain unpaid
 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 1-a to read as follows:

 (1-A) WHEN A FINAL DETERMINATION HAS BEEN RENDERED AGAINST A  CONTRAC
 TOR,  SUBCONTRACTOR,  SUCCESSOR,  OR  ANY SUBSTANTIALLY-OWNED AFFILIATED
 ENTITY OF THE CONTRACTOR OR SUBCONTRACTOR, ANY OF THE  PARTNERS  IF  THE
 CONTRACTOR  OR  SUBCONTRACTOR  IS  A  PARTNERSHIP,  ANY  OFFICER  OF THE
 CONTRACTOR OR SUBCONTRACTOR WHO KNOWINGLY PARTICIPATED IN THE  VIOLATION
 OF THIS ARTICLE, ANY OF THE SHAREHOLDERS WHO OWN OR CONTROL AT LEAST TEN
 PER  CENTUM  OF THE OUTSTANDING STOCK OF THE CONTRACTOR OR SUBCONTRACTOR
 OR ANY SUCCESSOR HAS WILFULLY FAILED TO PAY THE PREVAILING RATE OF WAGES
 OR TO PROVIDE SUPPLEMENTS IN ACCORDANCE WITH THIS ARTICLE, WHETHER  SUCH
 FAILURES WERE CONCURRENT OR CONSECUTIVE, SUCH CONTRACTOR, SUBCONTRACTOR,
 SUCCESSOR,  OR ANY SUBSTANTIALLY-OWNED AFFILIATED ENTITY OF THE CONTRAC
 TOR OR SUBCONTRACTOR, ANY OF THE PARTNERS IF THE CONTRACTOR  OR  SUBCON
 TRACTOR  IS  A PARTNERSHIP OR ANY OF THE SHAREHOLDERS WHO OWN OR CONTROL
 AT LEAST TEN PER CENTUM OF THE OUTSTANDING STOCK OF  THE  CONTRACTOR  OR
 SUBCONTRACTOR,  ANY OFFICER OF THE CONTRACTOR OR SUBCONTRACTOR WHO KNOW
 INGLY PARTICIPATED IN THE VIOLATION OF THIS ARTICLE SHALL BE  INELIGIBLE
 TO SUBMIT A BID ON OR BE AWARDED ANY PUBLIC WORK CONTRACT OR SUBCONTRACT
 WITH  THE  STATE,  ANY  MUNICIPAL  CORPORATION OR PUBLIC BODY UNLESS AND
 UNTIL ALL PREVAILING RATES OF WAGES AND SUPPLEMENTS DUE FROM  ALL  PRIOR
 PUBLIC WORK CONTRACTS HAVE BEEN PAID.
 

S 2. This act shall take effect immediately.
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD01071-01-3

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