NY State Senate Bill 2009-S7440

Senate Bill S7440

2009-2010 Legislative Session

Requires transparent methods of subcontracting by general contractors who enter public work contracts with the New York state dormitory authority

download bill text pdf

Archive: Last Bill Status - In Senate Committee Corporations, Authorities And Commissions Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Apr 09, 2010	referred to corporations, authorities and commissions

2009-S7440 (ACTIVE) - Details

See Assembly Version of this Bill:: A10483
Current Committee:: Senate Corporations, Authorities And Commissions
Law Section:: Public Authorities Law
Laws Affected:: Amd §§1676-a & 1678, Pub Auth L
Versions Introduced in 2011-2012 Legislative Session:: A4279

2009-S7440 (ACTIVE) - Summary

Requires transparent methods of subcontracting by general contractors who enter public work contracts with the New York state dormitory authority.

2009-S7440 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S7440

 TITLE OF BILL :
An act to amend the public authorities law, in relation to transparent
methods of subcontracting by general contractors who enter public work
contracts with the New York state dormitory authority


 PURPOSE OR GENERAL IDEA OF BILL :
This bill will provide legal transparency and strengthen the
subcontracting regulations by general contractors who bid on for
contracts with the New York State Dormitory Authority.

 SUMMARY OF SPECIFIC PROVISIONS :
Amends §1676-a and §1678 of New York state Public Authorities Law to
institute more stringent restrictions on the methods by which general
contractors can responsibly subcontract.

 JUSTIFICATION :
It is the job of the New York State to ensure that taxpayer dollars
are properly spent and that projects bid out to contractors are
handled efficiently and effectively once the contracts have been
approved.  There is an ethical problem with bid shopping and peddling
in which the general contractor changes subcontractors after a bid has
been approved, usually for a lower price. This allows for the general
contractor to pocket the difference and often results in a lower

quality end product.

Recently, this issue has come to the forefront in two projects whose
contractual bidding was under the auspices of the New York State
Dormitory Authority where the general contractor had prepared the bid
with one subcontractor in mind but eventually used another, cheaper
contractor for the work. This legislation seeks to combat this
unethical behavior by requiring the Dormitory Authority to be provided
with a list of subcontractors upon receipt of a bid. Should the
contract be approved the contractor may not substitute subcontractors
with certain exceptions.

Similar legislation has been in effect for a number of years in other
states, including wisconsin, Washington, North Carolina and Oregon.
This legislation will save the taxpayers money by ensuring that
projects contracted out to other entities will be completed as first
proposed, and so that contractors will not profit from poor quality
workmanship.

 PRIOR LEGISLATIVE HISTORY :
New Bill.

 FISCAL IMPLICATIONS :
This bill will have a positive fiscal impact on taxpayers due to
lowered contracting costs.

 EFFECTIVE DATE :
The act will take effect 60 days before it shall become law.

2009-S7440 (ACTIVE) - Bill Text download pdf

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

                                  7440

                            I N  S E N A T E

                              April 9, 2010
                               ___________

Introduced by Sen. AUBERTINE -- read twice and ordered printed, and when
  printed  to be committed to the Committee on Corporations, Authorities
  and Commissions

AN ACT to amend the public authorities law, in relation  to  transparent
  methods of subcontracting by general contractors who enter public work
  contracts with the New York state dormitory authority

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 1676-a of the public authorities law, as  added  by
chapter 769 of the laws of 1978, is amended to read as follows:
  S 1676-a. [Payment] CONTRACTS FOR AND PAYMENT on authority public work
projects.  1.  Notwithstanding  the  provisions  of any other law to the
contrary, all contracts for public work awarded by the dormitory author-
ity pursuant to this title shall  be  in  accordance  with  section  one
hundred thirty-nine-f of the state finance law. For the purposes of this
section, public work by the dormitory authority shall include but not be
limited  to the construction of dormitories and other related structures
as defined in paragraph a of subdivision two of section sixteen  hundred
seventy-six of this title, boards of cooperative educational services as
defined  in  paragraph  d  of subdivision two of section sixteen hundred
seventy-six of this  title,  locally  sponsored  community  colleges  as
defined  in  subdivision seven of section sixteen hundred seventy-six of
this title, and the city university as defined in subdivision  eight  of
section sixteen hundred seventy-six of this title.
  2.  NOTWITHSTANDING  THE  PROVISIONS OF ANY OTHER LAW TO THE CONTRARY,
EACH BIDDER ON A PUBLIC WORK CONTRACT, WHERE THE PREPARATION OF SEPARATE
SPECIFICATIONS IS NOT REQUIRED, SHALL SUBMIT WITH  ITS  BID  A  SEPARATE
SEALED  LIST  THAT  NAMES EACH SUBCONTRACTOR THAT THE BIDDER WILL USE TO
PERFORM WORK ON THE CONTRACT, AND THE AGREED-UPON AMOUNT TO BE  PAID  TO
EACH  FOR:  (I)  PLUMBING AND GAS FITTING, (II) STEAM HEATING, HOT WATER
HEATING, VENTILATING AND AIR CONDITIONING APPARATUS AND  (III)  ELECTRIC
WIRING  AND  STANDARD  ILLUMINATING  FIXTURES.  AFTER  THE  LOW  BID  IS
ANNOUNCED, THE SEALED LIST OF SUBCONTRACTORS SUBMITTED WITH SUCH LOW BID
SHALL BE OPENED AND THE NAMES OF SUCH SUBCONTRACTORS SHALL BE ANNOUNCED,
AND THEREAFTER ANY CHANGE OF SUBCONTRACTOR OR AGREED-UPON AMOUNT  TO  BE
PAID  TO EACH SHALL REQUIRE APPROVAL OF THE PUBLIC OWNER, UPON A SHOWING
PRESENTED TO THE PUBLIC OWNER OF LEGITIMATE CONSTRUCTION NEED  FOR  SUCH

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15634-01-0

S. 7440                             2

CHANGE,   WHICH   SHALL  BE  OPEN  TO  PUBLIC  INSPECTION.    LEGITIMATE
CONSTRUCTION NEED SHALL BE LIMITED TO, A CHANGE  IN  PROJECT  SPECIFICA-
TIONS,  A CHANGE IN CONSTRUCTION MATERIAL COSTS, A CHANGE TO SUBCONTRAC-
TOR STATUS AS DETERMINED PURSUANT TO PARAGRAPH (E) OF SUBDIVISION TWO OF
SECTION  TWO  HUNDRED  TWENTY-TWO OF THE LABOR LAW, OR THE SUBCONTRACTOR
HAS BECOME OTHERWISE UNWILLING, UNABLE OR  UNAVAILABLE  TO  PERFORM  THE
SUBCONTRACT.  THE  SEALED LISTS OF SUBCONTRACTORS SUBMITTED BY ALL OTHER
BIDDERS SHALL BE RETURNED TO THEM UNOPENED AFTER THE CONTRACT AWARD.
  S 2. Subdivision 8 of section 1678 of the public authorities  law,  as
amended  by  chapter  251  of  the  laws  of 1962, is amended to read as
follows:
  8. IN CONNECTION WITH PUBLIC WORK CONTRACTS:
  (A) By contract or contracts or by its  own  employees  to  construct,
acquire,  reconstruct,  rehabilitate and improve, and furnish and equip,
dormitories and necessary and usual attendant facilities for state-oper-
ated institutions and statutory and contract colleges under  the  juris-
diction  of  the state university of New York pursuant to agreement with
the state university construction fund created by section three  hundred
seventy-one of the education law.
  (B)  PRIOR  TO  CONTRACT AWARD, TO ENSURE THAT EACH BIDDER ON A PUBLIC
WORK CONTRACT, WHERE THE PREPARATION OF SEPARATE SPECIFICATIONS  IS  NOT
REQUIRED,  SUBMIT  WITH  ITS  BID A SEPARATE SEALED LIST THAT NAMES EACH
SUBCONTRACTOR THAT THE BIDDER WILL USE TO PERFORM WORK ON THE  CONTRACT,
AND THE AGREED-UPON AMOUNT TO BE PAID TO EACH, FOR: (I) PLUMBING AND GAS
FITTING,  (II)  STEAM  HEATING,  HOT  WATER HEATING, VENTILATING AND AIR
CONDITIONING APPARATUS AND (III) ELECTRIC WIRING  STANDARD  ILLUMINATING
FIXTURES. AFTER THE LOW BID IS ANNOUNCED, THE SEALED LIST OF SUBCONTRAC-
TORS  SUBMITTED  WITH SUCH LOW BID SHALL BE OPENED AND THE NAMES OF SUCH
SUBCONTRACTORS SHALL BE ANNOUNCED, AND THEREAFTER ANY CHANGE OF  SUBCON-
TRACTOR  OR  AGREED-UPON  AMOUNT  TO  BE  PAID TO EACH SHALL REQUIRE THE
APPROVAL OF THE PUBLIC OWNER, UPON A SHOWING  PRESENTED  TO  THE  PUBLIC
OWNER  OF  LEGITIMATE  CONSTRUCTION NEED FOR SUCH CHANGE, WHICH SHALL BE
OPEN TO PUBLIC INSPECTION. LEGITIMATE CONSTRUCTION NEED SHALL BE LIMITED
TO, A CHANGE IN PROJECT SPECIFICATIONS, A CHANGE IN CONSTRUCTION MATERI-
AL COSTS, A CHANGE TO SUBCONTRACTOR STATUS  AS  DETERMINED  PURSUANT  TO
PARAGRAPH  (E)  OF  SUBDIVISION TWO OF SECTION TWO HUNDRED TWENTY-TWO OF
THE LABOR LAW, OR THE  SUBCONTRACTOR  HAS  BECOME  OTHERWISE  UNWILLING,
UNABLE  OR  UNAVAILABLE  TO PERFORM THE SUBCONTRACT. THE SEALED LISTS OF
SUBCONTRACTORS SUBMITTED BY ALL OTHER BIDDERS SHALL BE RETURNED TO  THEM
UNOPENED AFTER THE CONTRACT AWARD.
  (C)  TO  SELL,  CONVEY, LEASE, SUBLEASE OR OTHERWISE TRANSFER ANY REAL
PROPERTY OR INTEREST THEREIN HELD BY THE AUTHORITY TO ANY PERSON,  FIRM,
ASSOCIATION,  CORPORATION  OR  AGENCY,  INCLUDING A PUBLIC BODY, FOR THE
PURPOSE OF CONSTRUCTING OR  OTHERWISE  PROVIDING  THEREON  A  STRUCTURE,
PROVIDED  THAT,  SIMULTANEOUSLY  THEREWITH, THE AUTHORITY ENTERS INTO AN
AGREEMENT FOR THE  RECONVEYANCE,  PURCHASE,  LEASE,  SUBLEASE  OR  OTHER
ACQUISITION OF THE FACILITIES TO BE CONTAINED IN SUCH STRUCTURES.
  ANY CONTRACT UNDERTAKEN OR FINANCED BY THE DORMITORY AUTHORITY FOR ANY
CONSTRUCTION,  RECONSTRUCTION,  REHABILITATION  OR  IMPROVEMENT  FOR ANY
FACILITIES OR  COMBINED  OCCUPANCY  STRUCTURES  SHALL  COMPLY  WITH  THE
PROVISIONS  OF  SECTION  ONE  HUNDRED  ONE  AND ONE HUNDRED THREE OF THE
GENERAL MUNICIPAL LAW, AND SECTION TWO HUNDRED TWENTY OF THE LABOR LAW;
  S 3. This act shall take effect on the sixtieth  day  after  it  shall
have become a law.

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