Assembly Bill A6696

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  6696

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                             March 11, 2009
                               ___________

Introduced  by  M. of A. MILLER, FINCH, CROUCH -- read once and referred
  to the Committee on Labor

AN ACT to amend the labor  law,  in  relation  to  the  payment  of  the
  prevailing wage by subcontractors on public works projects

  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.  SURETY  BOND  PAYABLE  BY SUBCONTRACTORS. ALL SUBCONTRACTORS ON A
PUBLIC WORK PROJECT SHALL BE REQUIRED TO SUBMIT A SURETY  BOND  FOR  THE
UNDERPAYMENT  OF   THE PREVAILING WAGE AND SUPPLEMENTS. WHERE THE FISCAL
OFFICER FOR THE PUBLIC WORK PROJECT IS THE COMMISSIONER, THE SURETY BOND
SHALL BE PAID TO THE COMMISSIONER FOR DEPOSIT  IN  THE  STATE  TREASURY.
WHERE  THE FISCAL OFFICER IS A CITY COMPTROLLER OR OTHER ANALOGOUS OFFI-
CER, THE SURETY BOND SHALL BE PAID TO SAID OFFICER FOR  DEPOSIT  IN  THE
CITY  TREASURY.  SUCH SURETY BOND SHALL BE IN THE SUM OF FIVE PER CENTUM
OF THE TOTAL PAYROLL OF THE SUBCONTRACTOR ON A PUBLIC WORK  PROJECT  AND
SHALL  BE  RETAINED BY THE FISCAL OFFICER FOR A PERIOD NOT TO EXCEED TWO
YEARS FOLLOWING THE COMPLETION OF THE PUBLIC  WORK  PROJECT.    INTEREST
SHALL  ACCRUE ON SUCH SURETY BOND AT A RATE OF FIVE PER CENTUM PER ANNUM
BEGINNING ON THE DATE OF DEPOSIT WITH THE FISCAL OFFICER  AND  SHALL  BE
DISPERSED ONLY AS SPECIFIED IN THIS SUBDIVISION. PROCEEDS FROM THE SURE-
TY  BOND  MAY  ONLY BE DISPERSED FOR THE PURPOSE OF REFUNDING THE SURETY
BOND TO A SUBCONTRACTOR TWO YEARS AFTER THE  EXPIRATION  OF  THE  PUBLIC
WORK PROJECT OR FOR THE PAYMENT OF WAGES OR SUPPLEMENTS DETERMINED TO BE
OWING  TO  WORKERS PURSUANT TO THIS SECTION. NOTHING IN THIS SUBDIVISION
SHALL BE CONSTRUED TO PRECLUDE SUBCONTRACTORS OR  CONTRACTORS  FROM  ANY
LIABILITY OR RESPONSIBILITY PURSUANT TO THIS ARTICLE.
  S  2.  Section  223 of the labor law, as amended by chapter 929 of the
laws of 1935, is amended to read as follows:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09660-01-9

              

A. 6696                             2

  S 223. Enforcement of article. If the fiscal officer as defined herein
finds that any person contracting with the  state,  a  municipal  corpo-
ration, or any commission appointed pursuant to law, for the performance
of any public work fails to comply with or evades the provisions of this
article,  he shall present evidence of such non-compliance or evasion to
the officer, department, board or commission having charge of such  work
for  enforcement.    Wherein such evidence indicates a non-compliance or
evasion on the part of a sub-contractor, the contractor shall be respon-
sible for such non-compliance or evasion; PROVIDED,  HOWEVER,  THAT  ANY
UNDERPAYMENT OF PREVAILING WAGES OR SUPPLEMENTS ON THE PART OF A SUBCON-
TRACTOR SHALL BE PAID PURSUANT TO SUBDIVISION TEN OF SECTION TWO HUNDRED
TWENTY  OF THIS ARTICLE. ONLY AFTER THE PAYMENT OF SUCH WAGES OR SUPPLE-
MENTS IS EXHAUSTED PURSUANT TO SUBDIVISION TEN OF  SECTION  TWO  HUNDRED
TWENTY OF THIS ARTICLE MAY A CONTRACTOR BECOME LIABLE FOR THE PAYMENT OF
SUCH WAGES OR SUPPLEMENTS ON BEHALF OF A SUBCONTRACTOR.  It shall be the
duty  of  any  officer, department, board or commission in charge of the
construction of such public work contracts to enforce the provisions  of
this article.
  S 3. This act shall take effect immediately.