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

                                  7092

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                             April 12, 2011
                               ___________

Introduced  by  M.  of  A. J. MILLER, FINCH, CROUCH, MONTESANO -- Multi-
  Sponsored by -- M. of A.  CALHOUN -- 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.
                                                           LBD08184-01-1
              

A. 7092                             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.