Senate Bill S5659C

                                BILL NUMBER:S5659

TITLE OF BILL:
An act
to amend the labor law and the general municipal law, in relation to
reciprocity of debarments imposed under the federal Davis-Bacon Act

PURPOSE:
The purpose of the bill is to ensure that those contractors who are
debarred on the federal level under the Davis-Bacon Act for wage
payment violations, are unable to bid on state public work contracts;
this legislation would close a loophole in the existing law. Under
the current law, contractors who have been debarred from federal job
sites are considered on equal footing with law-abiding contractors.
This bill would remedy this gross inequity by granting reciprocity to
debarments imposed by the federal government on contractors who have
violated the Davis-Bacon Act. New York courts have long settled that
the right to bid on a public work contract is not a property right.
This privilege to bid must be subject to certain restrictions, one of
which should be the ability of the bidder to comply with certain
prevailing wage provisions.

SUMMARY OF PROVISIONS:
Section 1 of the bill amends §220-b of the Labor law so that any
contractor who has been debarred from federal job sites for having
disregarded obligations to employees under the Davis-Bacon Act shall
              

also be debarred under the Labor law from bidding on or being awarded
similar contracts on public work job sites sponsored by the State or
any of its political subdivisions. The contractor may appeal such
determination to the Department of Labor (DOL).

Section 2 of the bill would add a new subdivision 1-b to section 103
of the general municipal law so that whether or not a contractor is
debarred under the David-Bacon Act will be considered in the
selection of a lowest responsible bidder. This provision will come
into play in the case where a contractor has appealed to DOL and been
removed from the state debarment list; the entity awarding the
contract will still be able to consider the circumstances of the
federal debarment.

Section 3 provides for an immediate effective date.

EXISTING LAW:
As stated above, under the current law, contractors who have been
debarred from federal job sites are considered on equal footing with
law-abiding contractors.

JUSTIFICATION:
Under Article 8 of the labor law, contractors or subcontractors who
engage in a public work project sponsored by the State of New York or
any of its political subdivisions are required to pay their laborers,
workers and material men not less than the prevailing rate of wage.

Recent studies indicate that fraud in the construction industry in New
York State has reached epidemic proportions. Dishonest contractors,
in an effort to cut corners and save on labor costs, have engaged in


a number of schemes to avoid paying workers the wage to which they
are statutorily entitled. They include the kickback of wages, dual
payrolls and cash-off-the-books schemes.

Under the existing law, a contractor may he debarred from
participation in public work projects if the Bureau of Public Works
finds that the contractor has knowingly committed two violations of
the prevailing wage law within a six-year period, or one violation
relating to the falsification of payroll records or the kickback of
wages or supplements. Debarments are also imposed when a person or
corporation, or any officer or shareholder who Owns or controls at
least ten percent of the outstanding stock of such corporation has
been convicted of any of an enumerated list of felonies for conduct
relating to obtaining, performing or attempting to perform a public
work contract with the state, any municipal corporation, public
benefit corporation or public body. Its federal counterpart, the
Davis-Bacon Act, imposes a similar penalty on contractors who are
found to have disregarded their obligations to employees under
federal wage-and-hour laws. At the present time, however, New York
labor law fails to recognize debarments imposed by the United States
Department of Labor. Working at a public work job site is a
privilege, not a right. New Yorkers are entitled to expect the
highest standard of integrity from contractors who bid on these
projects.

LEGISLATIVE HISTORY:
2010 Session - New Bill

FISCAL IMPLICATIONS:
None to State.

LOCAL FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
Immediately.

                                BILL NUMBER:S5659A

TITLE OF BILL:
An act to amend the labor law and the general municipal law, in relation
to reciprocity of debarments imposed under the federal Davis-Bacon Act

PURPOSE:
The purpose of the bill is to ensure that those contractors who are
debarred on the federal level under the Davis-Bacon Act for wage payment
violations, are unable to bid on state public work contracts; this
legislation would close a loophole in the existing law. Under the
current law, contractors who have been debarred from federal job sites
are considered on equal footing with law-abiding contractors.  This bill
would remedy this gross inequity by granting reciprocity to debarments
imposed by the federal government on contractors who have violated the
Davis-Bacon Act. New York courts have long settled that the right to bid
on a public work contract is not a property right.  This privilege to
bid must be subject to certain restrictions, one of which should be the
ability of the bidder to comply with certain prevailing wage provisions.

SUMMARY OF PROVISIONS:
Section 1 of the bill amends §220-b of the Labor law so that any
contractor who has been debarred from federal job sites for having
disregarded obligations to employees under the Davis-Bacon Act shall
also be debarred under the Labor Law from bidding on or being awarded
similar contracts on public work job sites sponsored by the State or any
              

of its political subdivisions. The contractor may appeal such determi-
nation to the Department of Labor (DOL).

Section 2 of the bill would add a new subdivision 1-c to section 103 of
the general municipal law so that whether or not a contractor is
debarred under the David-Bacon Act will be considered in the selection
of a lowest responsible bidder. This provision will come into play in
the case where a contractor has appealed to DOL and been removed from
the state debarment list; the entity awarding the contract will still be
able to consider the circumstances of the federal debarment.

Section 3 provides for an immediate effective date.

Note on amendment - technical amendment was to section 2 of the bill -
changing subdivision 1-b to subdivision 1-c of § 103 of the general
municipal law.

EXISTING LAW:
As stated above, under the current law, contractors who have been
debarred from federal job sites are considered on equal footing with
law-abiding contractors.

JUSTIFICATION:
Under Article 8 of the labor law, contractors or subcontractors who
engage in a public work project sponsored by the State of New York or

any of its political subdivisions are required to pay their laborers,
workers and material men not less than the prevailing rate of wage.

Recent studies indicate that fraud in the construction industry in New
York State has reached epidemic proportions. Dishonest contractors, in
an effort to cut corners and save on labor costs, have engaged in a
number of schemes to avoid paying workers the wage to which they are
statutorily entitled. They include the kickback of wages, dual payrolls
and cash-off-the-books schemes.

Under the existing law, a contractor may he debarred from participation
in public work projects if the Bureau of Public Works finds that the
contractor has knowingly committed two violations of the prevailing wage
law within a six-year period, or one violation relating to the falsifi-
cation of payroll records or the kickback of wages or supplements.
Debarments are also imposed when a person or corporation, or any officer
or shareholder who owns or controls at least ten percent of the
outstanding stock of such corporation has been convicted of any of an
enumerated list of felonies for conduct relating to obtaining, perform-
ing or attempting to perform a public work contract with the state, any
municipal corporation, public benefit corporation or public body. Its
federal counterpart, the Davis-Bacon Act, imposes a similar penalty on
contractors who are found to have disregarded their obligations to
employees under federal wage-and-hour laws. At the present time, howev-
er, New York labor law fails to recognize debarments imposed by the
United States Department of labor. Working at a public work job site is
a privilege, not a right. New Yorkers are entitled to expect the highest
standard of integrity from contractors who bid on these projects.

LEGISLATIVE HISTORY:
2010 Session - New Bill

FISCAL IMPLICATIONS:
None to State.

LOCAL FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
Immediately

                                BILL NUMBER:S5659B

TITLE OF BILL:
An act to amend the labor law and the general municipal law, in relation
to reciprocity of debarments imposed under the federal Davis-Bacon Act

PURPOSE:
The purpose of the bill is to ensure that those contractors who are
debarred on the federal level under the Davis-Bacon Act for wage payment
violations, are unable to bid on state public work contracts; this
legislation would close a loophole in the existing law. Under the
current law, contractors who have been debarred from federal job sites
are considered on equal footing with law-abiding contractors.  This bill
would remedy this gross inequity by granting reciprocity to debarments
imposed by the federal government on contractors who have violated the
Davis-Bacon Act. New York courts have long settled that the right to bid
on a public work contract is not a property right.  This privilege to
bid must be subject to certain restrictions, one of which should be the
ability of the bidder to comply with certain prevailing wage provisions.

SUMMARY OF PROVISIONS:
Section 1 of the bill amends §220-b of the Labor law so that any
contractor who has been debarred from federal job sites for having
disregarded obligations to employees under the Davis-Bacon Act shall
also be debarred under the Labor Law from bidding on or being awarded
similar contracts on public work job sites sponsored by the State or any
              

of its political subdivisions. The contractor may appeal such determi-
nation to the Department of Labor (DOL).

Section 2 of the bill would add a new subdivision 1-c to section 103 of
the general municipal law so that whether or not a contractor is
debarred under the David-Bacon Act will be considered in the selection
of a lowest responsible bidder. This provision will come into play in
the case where a contractor has appealed to DOL and been removed from
the state debarment list; the entity awarding the contract will still be
able to consider the circumstances of the federal debarment.

Section 3 provides for an immediate effective date.

Note on amendment to A print - technical amendment was to section 2 of
the bill - changing subdivision 1-b to subdivision 1-c of § 103 of the
general municipal law.

Note on amendment to B print - removes the three year debarment in NYS,
requires that debarments would run while federal debarment is in effect.

EXISTING LAW:
As stated above, under the current law, contractors who have been
debarred from federal job sites are considered on equal footing with
law-abiding contractors.

JUSTIFICATION
Under Article 8 of the labor law, contractors or subcontractors who
engage in a public work project sponsored by the State of New York or
any of its political subdivisions are required to pay their laborers,
workers and material men not less than the prevailing rate of wage.

Recent studies indicate that fraud in the construction industry in New
York State has reached epidemic Proportions. Dishonest contractors, in
an effort to cut corners and save on labor costs, have engaged in a
number of schemes to avoid paying workers the wage to which they are
statutorily entitled. They include the kickback of wages, dual payrolls
and cash-off-the-books schemes.

Under the existing law, a contractor may be debarred from participation
in public work projects if the Bureau of Public Works finds that the
contractor has knowingly committed two violations of the prevailing wage
law within a six-year period, or one violation relating to the falsifi-
cation of payroll records or the kickback of wages or supplements.
Debarments are also imposed when a person or corporation, or any officer
or shareholder who Owns or controls at least ten percent of the
outstanding stock of such corporation has been convicted of any of an
enumerated list of felonies for conduct relating to obtaining, perform-
ing or attempting to perform a public work contract with the state, any
municipal corporation, public benefit corporation or public body. Its
federal counterpart, the Davis-Bacon Act, imposes a similar penalty on
contractors who are found to have disregarded their obligations to
employees under federal wage-and-hour laws. At the present time, howev-
er, New York labor law fails to recognize debarments imposed by the
United States Department of labor. Working at a public work job site is
a privilege, not a right. New Yorkers are entitled to expect the highest
standard of integrity from contractors who bid on these projects.

LEGISLATIVE HISTORY:
2010 Session - New Bill

FISCAL IMPLICATIONS:
None to State.

LOCAL FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
Immediately.