S T A T E O F N E W Y O R K
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9089--A
I N A S S E M B L Y
January 25, 2016
___________
Introduced by M. of A. MAGNARELLI -- read once and referred to the
Committee on Labor -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee
AN ACT to amend the labor law, in relation to establishing a registra-
tion system for contractors and subcontractors engaged in public work
projects in order to better enforce existing labor laws and regu-
lations in the public works industry
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The labor law is amended by adding a new section 220-i to
read as follows:
S 220-I. REGISTRATION SYSTEM FOR CONTRACTORS AND SUBCONTRACTORS. 1.
DEFINITIONS AS USED IN THIS SECTION:
A. "CONTRACTOR" MEANS A PERSON, PARTNERSHIP, ASSOCIATION, JOINT STOCK
COMPANY, TRUST, CORPORATION, OR OTHER LEGAL BUSINESS ENTITY OR SUCCESSOR
THEREOF WHO ENTERS INTO A CONTRACT WHICH IS SUBJECT TO THE PROVISIONS OF
THIS ARTICLE, AND INCLUDES ANY SUBCONTRACTOR OR LOWER TIER SUBCONTRACTOR
OF A CONTRACTOR AS DEFINED HEREIN.
B. "BUREAU" MEANS THE DEPARTMENT OF LABOR'S BUREAU OF PUBLIC WORKS.
2. NO CONTRACTOR SHALL BID ON ANY CONTRACT FOR PUBLIC WORK SUBJECT TO
THE PROVISIONS OF THIS ARTICLE, UNLESS THE CONTRACTOR IS REGISTERED
PURSUANT TO THIS SECTION. NO CONTRACTOR SHALL LIST A SUBCONTRACTOR IN A
BID PROPOSAL FOR THE CONTRACT UNLESS THE SUBCONTRACTOR IS REGISTERED
PURSUANT TO THIS SECTION AT THE TIME THE BID IS MADE.
3. A. A CONTRACTOR SHALL REGISTER IN WRITING WITH THE DEPARTMENT ON A
FORM PROVIDED BY THE COMMISSIONER. THE FORM SHALL REQUIRE THE FOLLOWING
INFORMATION:
I. THE NAME, PRINCIPAL BUSINESS ADDRESS AND TELEPHONE NUMBER OF THE
CONTRACTOR.
II. WHETHER THE CONTRACTOR IS A CORPORATION, PARTNERSHIP, SOLE
PROPRIETORSHIP, OR OTHER FORM OF BUSINESS ENTITY.
III. THE NAME AND ADDRESS OF EACH PERSON WITH A FINANCIAL INTEREST IN
THE CONTRACTOR AND THE PERCENTAGE INTEREST, EXCEPT THAT IF THE CONTRAC-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10602-02-6
A. 9089--A 2
TOR IS A PUBLICLY-TRADED CORPORATION, THE CONTRACTOR SHALL SUPPLY THE
NAMES AND ADDRESSES OF THE CORPORATION'S OFFICERS.
IV. THE CONTRACTOR'S TAX IDENTIFICATION NUMBER AND UNEMPLOYMENT INSUR-
ANCE REGISTRATION NUMBER.
V. WHETHER THE CONTRACTOR HAS ANY OUTSTANDING WAGE ASSESSMENTS AGAINST
IT, PURSUANT TO THIS ARTICLE.
VI. WHETHER THE CONTRACTOR HAS BEEN DEBARRED UNDER NEW YORK OR FEDERAL
LAW.
VII. WHETHER THE CONTRACTOR HAS BEEN DEBARRED PURSUANT TO THE LAWS OF
ANY OTHER STATE.
VIII. ANY PAST VIOLATIONS OF LABOR LAWS FOUND BY ANY GOVERNMENTAL
ENTITY.
IX. WHETHER OR NOT THE CONTRACTOR IS ASSOCIATED OR A SIGNATORY TO AN
APPRENTICESHIP PROGRAM UNDER ARTICLE 23 OF THIS CHAPTER.
X. ANY OTHER RELEVANT AND APPROPRIATE INFORMATION AS DETERMINED BY THE
COMMISSIONER.
B. AT THE TIME OF REGISTRATION, AND SUBSEQUENTLY UPON REQUEST, THE
CONTRACTOR SHALL SUBMIT TO THE COMMISSIONER DOCUMENTATION DEMONSTRATING
THAT THE CONTRACTOR HAS WORKER'S COMPENSATION INSURANCE COVERAGE FOR ALL
WORKERS AS REQUIRED BY LAW.
4. A. THE CONTRACTOR SHALL PAY AN INITIAL ANNUAL NON-REFUNDABLE REGIS-
TRATION FEE OF THREE HUNDRED DOLLARS TO THE COMMISSIONER. THE NON-RE-
FUNDABLE REGISTRATION FEE FOR THE SECOND ANNUAL REGISTRATION SHALL BE
THREE HUNDRED DOLLARS. UPON SUCCESSFUL COMPLETION OF TWO CONSECUTIVE
YEARS OF REGISTRATION, A CONTRACTOR MAY ELECT TO REGISTER FOR A TWO-YEAR
PERIOD AND PAY A NON-REFUNDABLE REGISTRATION FEE OF FIVE HUNDRED
DOLLARS.
B. A CONTRACTOR WHO IS PERFORMING PUBLIC WORK ON THE EFFECTIVE DATE OF
THIS ACT SHALL SUBMIT THE REGISTRATION APPLICATION FORM AND FEE TO THE
COMMISSIONER WITHIN THIRTY DAYS OF THE EFFECTIVE DATE OF THIS ACT.
C. THE BUREAU MAY, IN ITS DISCRETION, DETERMINE A CONTRACTOR IS UNFIT
TO BE REGISTERED PURSUANT TO THIS SECTION. A CONTRACTOR DEEMED UNFIT
PURSUANT TO THIS SECTION SHALL BE PROVIDED WITH WRITTEN NOTICE FROM THE
DEPARTMENT AND SHALL BE AFFORDED THE OPPORTUNITY TO APPEAL SUCH DETERMI-
NATION.
5. UPON RECEIPT OF THE FEE, FORM AND DOCUMENTATION REQUIRED BY THIS
SECTION, THE COMMISSIONER SHALL ISSUE A CERTIFICATE OF REGISTRATION TO
THE CONTRACTOR. A REGISTRATION CERTIFICATE SHALL BE VALID FOR ONE CALEN-
DAR YEAR FROM THE DATE OF REGISTRATION. REGISTRATIONS SHALL BE RENEWED
NOT LESS THAN THIRTY DAYS BEFORE THE EXPIRATION DATE OF THE IMMEDIATELY
PRECEDING REGISTRATION.
6. EACH CONTRACTOR SHALL, AFTER THE BID IS MADE AND PRIOR TO THE
AWARDING OF THE CONTRACT, SUBMIT TO THE PUBLIC ENTITY THE CERTIFICATES
OF REGISTRATION FOR ALL SUBCONTRACTORS LISTED IN THE BID PROPOSAL.
APPLICATIONS FOR REGISTRATION SHALL NOT BE ACCEPTED AS A SUBSTITUTE FOR
A CERTIFICATE OF REGISTRATION FOR THE PURPOSES OF THIS SECTION.
7. A. A CONTRACTOR WHO:
I. WILLFULLY HINDERS OR DELAYS THE COMMISSIONER IN THE PERFORMANCE OF
HIS DUTIES IN THE ENFORCEMENT OF THIS ACT;
II. FAILS TO MAKE, KEEP, AND PRESERVE ANY RECORDS AS REQUIRED UNDER
THIS ARTICLE;
III. FALSIFIES ANY SUCH RECORD, OR REFUSES TO MAKE ANY SUCH RECORD
ACCESSIBLE TO THE COMMISSIONER UPON DEMAND;
IV. REFUSES TO FURNISH A SWORN STATEMENT OF SUCH RECORDS OR ANY OTHER
INFORMATION REQUIRED FOR THE ENFORCEMENT OF THIS ACT TO THE COMMISSIONER
UPON DEMAND;
A. 9089--A 3
V. PAYS OR AGREES TO PAY WAGES AT A RATE LESS THAN THE RATE PRESCRIBED
BY THIS ARTICLE; OR
VI. OTHERWISE VIOLATES ANY PROVISION OF THIS SECTION, SHALL BE GUILTY
OF A CLASS A MISDEMEANOR AND MAY BE ASSESSED A CIVIL PENALTY OF UP TO
FIFTY THOUSAND DOLLARS.
B. AS AN ALTERNATIVE TO OR IN ADDITION TO SANCTIONS PROVIDED BY THIS
ARTICLE, THE COMMISSIONER MAY, AFTER PROVIDING THE CONTRACTOR WITH
NOTICE OF ANY ALLEGED VIOLATION OF THIS ACT, AND WITH AN OPPORTUNITY TO
REQUEST A HEARING BEFORE THE COMMISSIONER:
I. DENY RENEWAL, REVOKE OR SUSPEND THE REGISTRATION OF A CONTRACTOR
FOR A PERIOD OF NOT MORE THAN FIVE YEARS; OR
II. REQUIRE A CONTRACTOR, AS A CONDITION OF INITIAL OR CONTINUED
REGISTRATION, TO PROVIDE A SURETY BOND PAYABLE TO THE STATE. THE SURETY
BOND SHALL BE FOR THE BENEFIT OF WORKERS DAMAGED BY ANY FAILURE OF A
CONTRACTOR TO PAY WAGES OR BENEFITS PURSUANT TO OR OTHERWISE COMPLY WITH
THE PROVISIONS OF THIS ARTICLE. THE SURETY BOND SHALL BE IN THE AMOUNT
AND FORM THAT THE COMMISSIONER DEEMS NECESSARY FOR THE PROTECTION OF THE
CONTRACTOR'S WORKERS, BUT SHALL NOT EXCEED TEN THOUSAND DOLLARS PER
WORKER.
C. THE BUREAU MAY ORDER THE IMMEDIATE SUSPENSION OF A CONTRACTOR'S
REGISTRATION, PRIOR TO A FORMAL HEARING ON THE REVOCATION OF THE
CONTRACTOR'S REGISTRATION PURSUANT TO PARAGRAPH B OF THIS SUBDIVISION,
IF THE BUREAU DETERMINES THAT ORDERING AN IMMEDIATE SUSPENSION IS IN THE
PUBLIC INTEREST AND PROVIDED THAT THE CONTRACTOR IS AFFORDED AN OPPORTU-
NITY TO CONTEST THE IMMEDIATE SUSPENSION IN THE FOLLOWING MANNER:
I. THE BUREAU SHALL NOTIFY THE CONTRACTOR IN WRITING OF THE IMMEDIATE
REVOCATION AND THE CONTRACTOR'S RIGHTS UNDER THIS PARAGRAPH.
II. THE CONTRACTOR MAY NOTIFY THE BUREAU OF ITS REQUEST FOR AN OPPOR-
TUNITY TO BE HEARD AND CONTEST THE IMMEDIATE SUSPENSION IN WRITING WITH-
IN SEVENTY-TWO HOURS OF ITS RECEIPT OF IMMEDIATE SUSPENSION NOTIFICA-
TION.
III. WITHIN SEVEN BUSINESS DAYS OF RECEIPT OF THE NOTIFICATION FROM
THE CONTRACTOR PURSUANT TO SUBPARAGRAPH II OF THIS PARAGRAPH, THE BUREAU
SHALL GRANT THE CONTRACTOR A HEARING TO CONTEST THE IMMEDIATE SUSPEN-
SION. THE BUREAU SHALL PERMIT THE CONTRACTOR TO PRESENT EVIDENCE AT THE
HEARING.
IV. THE BUREAU SHALL ISSUE A WRITTEN DECISION WITHIN FIVE BUSINESS
DAYS OF THE HEARING EITHER UPHOLDING OR REVERSING THE CONTRACTOR'S IMME-
DIATE SUSPENSION. THE DECISION SHALL INCLUDE THE GROUNDS FOR UPHOLDING
OR REVERSING THE CONTRACTOR'S IMMEDIATE SUSPENSION.
V. IF THE CONTRACTOR DISAGREES WITH THE WRITTEN DECISION, THE CONTRAC-
TOR MAY APPEAL THE DECISION TO THE COMMISSIONER.
D. IF THE BUREAU INTENDS TO IMPOSE AN IMMEDIATE SUSPENSION AS SET
FORTH IN PARAGRAPH C OF THIS SUBDIVISION, THE BUREAU SHALL PROVIDE THE
CONTRACTOR WITH A NOTICE OF INTENT TO SUSPEND AND THE CONTRACTOR MAY
REQUEST AN ADMINISTRATIVE HEARING BEFORE THE COMMISSION WITHIN SEVENTY-
TWO HOURS OF THE RECEIPT OF THE NOTICE OF INTENT TO SUSPEND IN ORDER TO
PRESENT EVIDENCE EXPEDITIOUSLY IN SUPPORT OF THE POSITION THAT THE
SUSPENSION SHOULD NOT BE IMPOSED. THE SUSPENSION SHALL NOT TAKE EFFECT
PRIOR TO THE EXPIRATION OF THE SEVENTY-TWO HOUR OPPORTUNITY TO REQUEST A
HEARING. IF SUCH A REQUEST IS NOT MADE, THE SUSPENSION SHALL TAKE EFFECT
AT THE END OF THE SEVENTY-TWO HOUR PERIOD. IF SUCH A REQUEST IS MADE,
THE SUSPENSION SHALL TAKE EFFECT ONLY AFTER THE COMMISSIONER CONDUCTS
THE HEARING.
E. IF THE BUREAU ORDERS THE IMMEDIATE SUSPENSION OF A CONTRACTOR'S
REGISTRATION PURSUANT TO PARAGRAPH B OF THIS SUBDIVISION, THE VIOLATION
A. 9089--A 4
SHALL HAVE NO EFFECT ON THE REGISTRATION OF ANY CONTRACTOR OR SUBCON-
TRACTOR, REGARDLESS OF TIER, IN THE CONTRACTUAL CHAIN WITH THE SUSPENDED
CONTRACTOR.
S 2. This act shall take effect on the ninetieth day after it shall
have become a law. Effective immediately, the commissioner of labor
shall promulgate rules and regulations necessary or appropriate to carry
out the provisions of this act.