Bill S7835-2013

Applies the prevailing wage laws to certain projects on privately owned property

Applies the prevailing wage laws to certain projects on privately owned property.

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  • Jun 13, 2014: REFERRED TO LABOR

Memo

BILL NUMBER:S7835

TITLE OF BILL: An act to amend the labor law, in relation to applying the prevailing wage laws to certain projects on privately owned property

PURPOSE OR GENERAL IDEA OF BILL:

The purpose of this bill is to provide prevailing wages to workers on certain construction projects.

SUMMARY OF SPECIFIC PROVISIONS:

This bill would expand prevailing wage requirements to privately owned projects that receive public funds or financial incentives when such project involves the construction of more than fifty dwelling units and less than fifty percent of such units are reserved for occupancy by individuals or families with a gross income at or below 125% of the area median income.

JUSTIFICATION:

The New York State Labor Law (Article 8, Section 220). requires that "prevailing wages" and "supplemental benefits" be paid on public works construction projects. This bill would apply the law to certain larger, primarily upper-income residential projects with more than 50 units that receive public funds or financial assistance. This legislation does not apply to primarily affordable housing projects of any size. This legislation also does not apply to residential projects involving 50 or less units.

Independent research conducted by respected economists and universities has consistently found that prevailing wage requirements:

*Promote training, skill and productivity, which improves quality and reduces costs.

*Minimize safety-net costs to taxpayers by providing healthcare and other benefits through employment.

*Reduce injuries and workers' compensation costs.

* Increase local and minority workforce participation.

Applying prevailing wage requirements to larger, primarily upper-income residential projects that are publicly subsidized will assure that the economic benefits of these projects do not only serve a limited number of affluent interests, but serve the intended purpose of providing economic opportunity more broadly to workers who earn good wages and spur local economic multipliers that maximize the positive effect of the public subsidies. Additionally, applying prevailing wage requirements to these publicly subsidized projects will discourage situations where good developers and contractors that choose to treat their workers well are put at a disadvantage against developers and contractors that do not.

PRIOR LEGISLATIVE HISTORY:

2013: A.2229 (Lopez, V.) - Referred to Labor 2012: A.10387 (Lopez,V.)- Reported to Codes

FISCAL IMPLICATIONS:

None to the State.

EFFECTIVE DATE:

This act shall take effect on the one hundred twentieth day after it shall have become a law. Effective, immediately, the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date is authorized to be made on or before such date.


Text

STATE OF NEW YORK ________________________________________________________________________ 7835 IN SENATE June 13, 2014 ___________
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, in relation to applying the prevailing wage laws to certain projects on privately owned property THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 220 of the labor law is amended by adding a new subdivision 10 to read as follows: 10. ANY PROJECT ON PRIVATELY OWNED PROPERTY WHICH, IN WHOLE OR PART, (A) RECEIVES OR BENEFITS FROM PUBLIC FUNDS OR FINANCIAL ASSISTANCE, INCLUDING BUT NOT LIMITED TO THE PROVISION OF PUBLIC MONIES, THE PROVISION OF TAX EXEMPTIONS OR BENEFITS, THE PROCEEDS OR BENEFITS OF BONDS, SURETIES OR OTHER CONTRACTS, OR THE PROVISION OF REAL PROPERTY AT LESS THAN FAIR MARKET VALUE OR FOR REDUCED CONSIDERATION, (B) INVOLVES MORE THAN FIFTY DWELLING UNITS WHERE LESS THAN FIFTY PERCENT OF THE UNITS ARE SUBJECT TO AN AGREEMENT WITH A MUNICIPALITY, THE STATE, THE FEDERAL GOVERNMENT OR ANY INSTRUMENTALITY THEREOF WHICH RESTRICTS THE OCCUPANCY OF SUCH UNITS TO INDIVIDUALS OR FAMILIES, AS TENANTS OR PURCHASERS, WITH A GROSS HOUSEHOLD INCOME AT OR BELOW ONE HUNDRED TWEN- TY-FIVE PERCENT OF THE AREA MEDIAN INCOME, AND (C) MAY INVOLVE THE EMPLOYMENT OF LABORERS, WORKERS OR MECHANICS, SHALL BE CONSIDERED PUBLIC WORK FOR THE PURPOSES OF THIS ARTICLE, AND ANY CONTRACTS OR SUBCONTRACTS WHICH MAY INVOLVE THE EMPLOYMENT OF LABORERS, WORKERS OR MECHANICS SHALL BE ENFORCEABLE UNDER THIS ARTICLE. FOR PURPOSES OF THIS SECTION, "PRIVATELY OWNED PROPERTY" SHALL MEAN PROPERTY HELD PURSUANT TO OWNER- SHIP OR LEASEHOLD INTEREST BY A NON-GOVERNMENTAL ENTITY. S 2. This act shall take effect on the one hundred twentieth day after it shall have become a law. Effective immediately, the addition, amend- ment and/or repeal of any rule or regulation necessary for the implemen- tation of this act on its effective date is authorized to be made on or before such date.

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