S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7323
 
                             I N  S E N A T E
 
                              January 5, 2018
                                ___________
 
 Introduced  by  Sen.  MURPHY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the labor 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.  Subparagraph 3 of paragraph b of subdivision 3 of  section
 220-b  of  the  labor  law,  as  added by a chapter of the laws of 2017,
 amending the labor law and the general municipal law relating  to  reci-
 procity  of  debarments  imposed  under the federal Davis-Bacon Act; and
 relating to a work group to study and make recommendations to the legis-
 lature regarding the appropriate payment of supplements to  construction
 workers,  as  proposed in legislative bills numbers S. 6790 and A. 8514,
 is amended to read as follows:
   (3)(i) When any contractor [or], subcontractor, OR PERSON is [debarred
 for having disregarded obligations to employees  under  the  Davis-Bacon
 Act  pursuant  to  40  U.S.C.    3144 and 29 C.F.R. 5.12,] LISTED BY THE
 FEDERAL GOVERNMENT AS EXCLUDED  FROM  RECEIVING  FEDERAL  CONTRACTS  AND
 CERTAIN  SUBCONTRACTS,  ASSISTANCE  OR  BENEFITS,  PURSUANT TO 48 C.F.R.
 SUBPART 9-4, such contractor [or], subcontractor, [and any "substantial-
 ly owned-affiliated entity" as defined by  paragraph  g  of  subdivision
 five  of section two hundred twenty of this article,] OR PERSON shall be
 ineligible to submit a bid on or be  awarded  any  public  [works]  WORK
 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 contractor or subcontractor is determined to be ineligible
 pursuant to this subparagraph because it is considered a  "substantially
 owned-affiliated  entity,"  such  contractor  or  subcontractor shall be
 provided with written notice from the department within seven  days  and
 shall  be  afforded the opportunity to appeal the ineligibility determi-
 nation to the department within thirty  calendar  days  of  the  written
 notice.  In  order  for  a  substantially-owned  affiliated entity to be
 debarred pursuant to this subparagraph, such substantially-owned  affil-

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD13260-02-8

 S. 7323                             2

 iated entity must have substantial involvement in the day to day manage-
 ment  of  the  contractor or subcontractor] DURING SUCH PERIOD OF EXCLU-
 SION, UNLESS THE DEPARTMENT HAVING JURISDICTION DETERMINES, AFTER PUBLIC
 NOTICE  AND  COMMENT, THAT THERE IS A COMPELLING REASON, CONSISTENT WITH
 48 C.F.R. § 9.405, TO ALLOW SUCH CONTRACTOR, SUBCONTRACTOR, OR PERSON TO
 SUBMIT A BID OR TO BE AWARDED A PARTICULAR PUBLIC WORK CONTRACT.  PUBLIC
 NOTICE SHALL INCLUDE NOTICE PROVIDED TO THE DEPARTMENT, WHICH SHALL POST
 SUCH NOTICE ON ITS WEBSITE.
   (ii) WHEN THE FISCAL OFFICER DETERMINES THAT A CONTRACTOR, SUBCONTRAC-
 TOR OR PERSON IS A "SUBSTANTIALLY OWNED-AFFILIATED ENTITY,"  AS  DEFINED
 BY PARAGRAPH G OF SUBDIVISION FIVE OF SECTION TWO HUNDRED TWENTY OF THIS
 ARTICLE,  IN RELATION TO A CONTRACTOR, SUBCONTRACTOR, OR PERSON INELIGI-
 BLE TO SUBMIT A BID OR BE AWARDED A PUBLIC WORK  CONTRACT  UNDER  CLAUSE
 (I)  OF  THIS  SUBPARAGRAPH,  SUCH SUBSTANTIALLY OWNED-AFFILIATED ENTITY
 SHALL BE INELIGIBLE TO SUBMIT A  BID  OR  BE  AWARDED  ANY  PUBLIC  WORK
 CONTRACT  WITH  THE  STATE,  ANY  MUNICIPAL  CORPORATION, PUBLIC BENEFIT
 CORPORATION FOR THE DURATION OF THE REMAINING PERIOD OF EXCLUSION OF THE
 CONTRACTOR, SUBCONTRACTOR, OR PERSON UNDER CLAUSE (I) OF  THIS  SUBPARA-
 GRAPH.  IN  ORDER  FOR  A  SUBSTANTIALLY  OWNED-AFFILIATED  ENTITY TO BE
 DEBARRED PURSUANT TO THIS CLAUSE,  SUCH  SUBSTANTIALLY  OWNED-AFFILIATED
 ENTITY  MUST  HAVE HAD SUBSTANTIAL INVOLVEMENT IN THE DAY TO DAY MANAGE-
 MENT OF THE CONTRACTOR, SUBCONTRACTOR OR PERSON  DEBARRED  UNDER  CLAUSE
 (I)  OF  THIS SUBPARAGRAPH.   SUCH SUBSTANTIALLY OWNED-AFFILIATED ENTITY
 SHALL BE PROVIDED WITH WRITTEN NOTICE FROM THE  FISCAL  OFFICER  OF  THE
 PROPOSED  DETERMINATION AND SHALL BE AFFORDED AN OPPORTUNITY TO BE HEARD
 REGARDING THE INELIGIBLE DETERMINATION  BY  THE  FISCAL  OFFICER  WITHIN
 THIRTY CALENDAR DAYS OF THE WRITTEN NOTICE.  IN ADDITION, THE DEPARTMENT
 HAVING JURISDICTION MAY DETERMINE, AFTER PUBLIC NOTICE AND COMMENT, THAT
 THERE  IS  A  COMPELLING  REASON,  CONSISTENT WITH 48 C.F.R. § 9.405, TO
 ALLOW SUCH SUBSTANTIALLY OWNED-AFFILIATED ENTITY TO SUBMIT A BID  OR  TO
 BE  AWARDED  A  PARTICULAR  PUBLIC  WORK  CONTRACT.  PUBLIC NOTICE SHALL
 INCLUDE NOTICE PROVIDED TO THE DEPARTMENT, WHICH SHALL POST SUCH  NOTICE
 ON ITS WEBSITE.
   (III)  Any [eligibility determination] DETERMINATIONS made pursuant to
 this subparagraph shall be subject to review pursuant to article  seven-
 ty-eight of the civil practice law and rules.
   §  2.  This  act  shall  take  effect on the same date and in the same
 manner as a chapter of the laws of 2017 amending the labor law  and  the
 general  municipal  law  relating  to  reciprocity of debarments imposed
 under the federal Davis-Bacon Act; and relating to a work group to study
 and make recommendations to the legislature  regarding  the  appropriate
 payment  of supplements to construction workers, as proposed in legisla-
 tive bills numbers S. 6790 and A.  8514, takes effect.