The New York State Senate

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

                                 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.