NY State Senate Bill 2017-S2974

Archive: Last Bill Status - In Senate Committee Labor 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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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 25, 2018	print number 2974a
Jan 25, 2018	amend and recommit to labor
Jan 03, 2018	referred to labor
Jun 21, 2017	committed to rules
May 03, 2017	advanced to third reading
May 02, 2017	2nd report cal.
May 01, 2017	1st report cal.669
Jan 18, 2017	referred to labor

Votes

- May 1, 2017 - Labor Committee Vote
  S2974
  
  12
  
  Aye
  
  0
  
  Nay
  
  2
  
  Aye with Reservations
  
  0
  
  Absent
  
  1
  
  Excused
  
  0
  
  Abstained
  - - Labor Committee Vote: May 1, 2017
      
      aye (12)
      
      Addabbo Jr.
      
      Akshar
      
      Alcantara
      
      Dilan
      
      Gallivan
      
      Marcellino
      
      Murphy
      
      Ortt
      
      Ritchie
      
      Rivera
      
      Robach
      
      Savino
      
      aye wr (2)
      
      Hannon
      
      Sanders Jr.
      
      excused (1)
      
      Parker

Bill Amendments

Original

A (Active)

co-Sponsors

View additional co-sponsors

2017-S2974 - Details

See Assembly Version of this Bill:: A1845
Current Committee:: Senate Labor
Law Section:: Labor Law
Laws Affected:: Amd §220-b, Lab L; amd §103, Gen Muni L
Versions Introduced in 2015-2016 Legislative Session:: S3995, A5414

2017-S2974 - Summary

Relates to reciprocity of debarments imposed under the federal Davis-Bacon Act.

2017-S2974 - Sponsor Memo

                                 BILL NUMBER:  S2974

 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 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. Substantially affiliated-owned
entities, as defined by Labor. Law § 220(5)(g), to the federally
debarred contractor may also be debarred so long as they are provided
notice and afforded the opportunity to appeal such determination 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 has
violated the Davis-Bacon Act, the Copeland Act, or the Contract Work
Hours and Safety Standards Act, will be considered in the selection of
a lowest responsible bidder.

Section 3 establishes the 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 :

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. 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.

Under this legislation, debarments would run while federal debarment
is in effect and would apply prospectively.

 LEGISLATIVE HISTORY :

2015-2016: S.3995 - advanced to third reading

 FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
This act shall take effect on the one hundred twentieth day after it
shall have become a law and shall apply to all public work bids and
contracts solicited on or after such effective date; provided,
however, this act shall not apply retroactively to previously issued
or existing public work contracts, with the state, any municipal
corporation, public benefit corporation or public body.

2017-S2974 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2974
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 18, 2017
                                ___________
 
 Introduced  by  Sens.  MURPHY,  BOYLE, FUNKE, MARCHIONE, ORTT, ROBACH --
   read twice and ordered printed, and when printed to  be  committed  to
   the Committee on Labor
 
 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

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph b of subdivision 3 of section 220-b of the  labor
 law is amended by adding a new subparagraph 3 to read as follows:
   (3) WHEN ANY PERSON OR ENTITY IS DEBARRED FOR HAVING DISREGARDED OBLI-
 GATIONS  TO  EMPLOYEES  UNDER  THE DAVIS-BACON ACT PURSUANT TO 40 U.S.C.
 3144 AND 29 C.F.R. 5.12, SUCH PERSON OR ENTITY, AND  ANY  "SUBSTANTIALLY
 OWNED-AFFILIATED  ENTITY"  AS DEFINED BY PARAGRAPH G OF SUBDIVISION FIVE
 OF SECTION TWO HUNDRED TWENTY OF THIS ARTICLE, SHALL  BE  INELIGIBLE  TO
 SUBMIT  A BID ON OR BE AWARDED ANY PUBLIC WORKS CONTRACT WITH THE STATE,
 ANY MUNICIPAL CORPORATION, PUBLIC BENEFIT  CORPORATION  OR  PUBLIC  BODY
 WHILE  THE  NAME  OF  THE  PERSON  OR ENTITY IS PUBLISHED IN THE LIST OF
 DEBARRED CONTRACTORS PURSUANT TO 40 U.S.C. 3144. WHERE A PERSON OR ENTI-
 TY IS DETERMINED TO BE INELIGIBLE PURSUANT TO THIS SUBPARAGRAPH  BECAUSE
 IT  IS CONSIDERED A "SUBSTANTIALLY OWNED-AFFILIATED ENTITY," SUCH PERSON
 OR ENTITY SHALL BE PROVIDED WITH WRITTEN NOTICE FROM THE DEPARTMENT  AND
 SHALL  BE  AFFORDED THE OPPORTUNITY TO APPEAL THE INELIGIBILITY DETERMI-
 NATION TO THE DEPARTMENT.
   § 2. Section 103 of the general municipal law is amended by  adding  a
 new subdivision 1-c to read as follows:
   1-C.  IN DETERMINING THE LOWEST RESPONSIBLE BIDDER, THE OFFICER, BOARD
 OR AGENCY OF ANY  POLITICAL  SUBDIVISION  OR  OF  ANY  DISTRICT  THEREIN
 CHARGED  WITH  AWARDING  OF CONTRACTS, SHALL CONSIDER WHETHER OR NOT THE
 BIDDER, OR ANY "SUBSTANTIALLY OWNED-AFFILIATED  ENTITY"  AS  DEFINED  BY
 PARAGRAPH  G  OF  SUBDIVISION  FIVE OF SECTION TWO HUNDRED TWENTY OF THE
 LABOR LAW, HAS BEEN FOUND TO BE IN  VIOLATION  OF  THE  DAVIS-BACON  ACT
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD06798-01-7

 S. 2974                             2
 
 PURSUANT  TO  40 U.S.C. 3144, THE COPELAND ACT PURSUANT TO 18 U.S.C. 874
 AND 40 U.S.C. 3145 OR THE CONTRACT WORK HOURS AND SAFETY  STANDARDS  ACT
 PURSUANT TO 40 U.S.C. 332.
   § 3. This act shall take effect on the one hundred twentieth day after
 it  shall have become a law and shall apply to all public works bids and
 contracts solicited on or after such effective date; provided,  however,
 this  act shall not apply retroactively to previously issued or existing
 public works contracts,  with  the  state,  any  municipal  corporation,
 public benefit corporation or public body.

co-Sponsors

View additional co-sponsors

2017-S2974A (ACTIVE) - Details

See Assembly Version of this Bill:: A1845
Current Committee:: Senate Labor
Law Section:: Labor Law
Laws Affected:: Amd §220-b, Lab L; amd §103, Gen Muni L
Versions Introduced in 2015-2016 Legislative Session:: S3995, A5414

2017-S2974A (ACTIVE) - Summary

Relates to reciprocity of debarments imposed under the federal Davis-Bacon Act.

2017-S2974A (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S2974A        Revised 02/27/18

SPONSOR: MURPHY
 
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 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. Substantially affiliated-owned entities,
as defined by Labor. Law § 220(5)(g), to the federally debarred contrac-
tor may also be debarred so long as they are provided notice and
afforded the opportunity to appeal such determination 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 has
violated the Davis-Bacon Act, the Copeland Act, or the Contract Work
Hours and Safety Standards Act, will be considered in the selection of a
lowest responsible bidder.

Section 3 establishes the 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:

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. 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 corpo-
ration 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 York-
ers are entitled to expect the highest standard of integrity from
contractors who bid on these projects.

Under this legislation, debarments would run while federal debarment is
in effect and would apply prospectively.

 
LEGISLATIVE HISTORY:

2015-2016: S.3995 - advanced to third reading

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect on the one hundred twentieth day after it
shall have become a law and shall apply to all public work bids and
contracts solicited on or after such effective date; provided, however,
this act shall not apply retroactively to previously issued or existing
public work contracts, with the state, any municipal corporation, public
benefit corporation or public body.

2017-S2974A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  2974--A
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 18, 2017
                                ___________
 
 Introduced by Sens. MURPHY, AKSHAR, ALCANTARA, BONACIC, BOYLE, CARLUCCI,
   FUNKE,  GALLIVAN,  KENNEDY,  MARCHIONE,  ORTT, RITCHIE, ROBACH -- read
   twice and ordered printed, and when printed to  be  committed  to  the
   Committee on Labor -- recommitted to the Committee on Labor in accord-
   ance with Senate Rule 6, sec. 8 -- committee discharged, bill amended,
   ordered reprinted as amended and recommitted to said committee
 
 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
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph b of subdivision 3 of section 220-b of the  labor
 law is amended by adding a new subparagraph 4 to read as follows:
   (4) WHEN ANY PERSON OR ENTITY IS DEBARRED FOR HAVING DISREGARDED OBLI-
 GATIONS  TO  EMPLOYEES  UNDER  THE DAVIS-BACON ACT PURSUANT TO 40 U.S.C.
 3144 AND 29 C.F.R. 5.12, SUCH PERSON OR ENTITY, AND  ANY  "SUBSTANTIALLY
 OWNED-AFFILIATED  ENTITY"  AS DEFINED BY PARAGRAPH G OF SUBDIVISION FIVE
 OF SECTION TWO HUNDRED TWENTY OF THIS ARTICLE, SHALL  BE  INELIGIBLE  TO
 SUBMIT  A BID ON OR BE AWARDED ANY PUBLIC WORKS CONTRACT WITH THE STATE,
 ANY MUNICIPAL CORPORATION, PUBLIC BENEFIT  CORPORATION  OR  PUBLIC  BODY
 WHILE  THE  NAME  OF  THE  PERSON  OR ENTITY IS PUBLISHED IN THE LIST OF
 DEBARRED CONTRACTORS PURSUANT TO 40 U.S.C. 3144. WHERE A PERSON OR ENTI-
 TY IS DETERMINED TO BE INELIGIBLE PURSUANT TO THIS SUBPARAGRAPH  BECAUSE
 IT  IS CONSIDERED A "SUBSTANTIALLY OWNED-AFFILIATED ENTITY," SUCH PERSON
 OR ENTITY SHALL BE PROVIDED WITH WRITTEN NOTICE FROM THE DEPARTMENT  AND
 SHALL  BE  AFFORDED THE OPPORTUNITY TO APPEAL THE INELIGIBILITY DETERMI-
 NATION TO THE DEPARTMENT.
   § 2. Section 103 of the general municipal law is amended by  adding  a
 new subdivision 1-d to read as follows:
   1-D.  IN DETERMINING THE LOWEST RESPONSIBLE BIDDER, THE OFFICER, BOARD
 OR AGENCY OF ANY  POLITICAL  SUBDIVISION  OR  OF  ANY  DISTRICT  THEREIN
 CHARGED  WITH  AWARDING  OF CONTRACTS, SHALL CONSIDER WHETHER OR NOT THE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD06798-05-8

 S. 2974--A                          2
 
 BIDDER, OR ANY "SUBSTANTIALLY OWNED-AFFILIATED  ENTITY"  AS  DEFINED  BY
 PARAGRAPH  G  OF  SUBDIVISION  FIVE OF SECTION TWO HUNDRED TWENTY OF THE
 LABOR LAW, HAS BEEN FOUND TO BE IN  VIOLATION  OF  THE  DAVIS-BACON  ACT
 PURSUANT  TO  40 U.S.C. 3144, THE COPELAND ACT PURSUANT TO 18 U.S.C. 874
 AND 40 U.S.C. 3145 OR THE CONTRACT WORK HOURS AND SAFETY  STANDARDS  ACT
 PURSUANT TO 40 U.S.C. 332.
   § 3. This act shall take effect on the one hundred twentieth day after
 it  shall have become a law and shall apply to all public works bids and
 contracts solicited on or after such effective date; provided,  however,
 this  act shall not apply retroactively to previously issued or existing
 public works contracts,  with  the  state,  any  municipal  corporation,
 public benefit corporation or public body.

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Senate Bill S2974

Sponsored By

Archive: Last Bill Status - In Senate Committee Labor Committee

May 1, 2017 - Labor Committee Vote

Labor Committee Vote: May 1, 2017

Bill Amendments

co-Sponsors

2017-S2974 - Details

2017-S2974 - Summary

2017-S2974 - Sponsor Memo

2017-S2974 - Bill Text download pdf

co-Sponsors

2017-S2974A (ACTIVE) - Details

2017-S2974A (ACTIVE) - Summary

2017-S2974A (ACTIVE) - Sponsor Memo

2017-S2974A (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S2974

Share this bill

Sponsored By

Archive: Last Bill Status - In Senate Committee Labor Committee

Bill Amendments

co-Sponsors

2017-S2974 - Details

2017-S2974 - Summary

2017-S2974 - Sponsor Memo

2017-S2974 - Bill Text download pdf

co-Sponsors

2017-S2974A (ACTIVE) - Details

2017-S2974A (ACTIVE) - Summary

2017-S2974A (ACTIVE) - Sponsor Memo

2017-S2974A (ACTIVE) - Bill Text download pdf

Comments