S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5475--A
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               March 6, 2023
                                ___________
 
 Introduced  by Sens. JACKSON, HINCHEY -- read twice and ordered printed,
   and when printed to be committed to the Committee on Labor --  commit-
   tee  discharged, bill amended, ordered reprinted as amended and recom-
   mitted to said committee
 
 AN ACT to amend the labor law, in relation to inclusion of certain  off-
   site  custom fabrication as public work for the purposes of payment of
   prevailing wage
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Legislative findings and intent. The legislature finds and
 declares that the prevailing wage law was established  to  provide  fair
 and  equitable  working conditions, wages and supplementary benefits for
 persons employed on public works construction projects.
   The legislature further finds and  declares  that  there  are  growing
 number of instances where custom fabricated materials are fabricated off
 the public work job site either to meet the unique specifications of the
 project  subject  to  a  public  work  contract  or for the contractor's
 convenience or to evade the wage requirements imposed by the  prevailing
 wage law.
   The  legislature further finds and declares that in many instances the
 prevailing wage is not paid to persons involved in off-site  fabrication
 of  materials  which  are used specifically for public works projects to
 the detriment of the workers at the site and the local economy where the
 public work is situated.
   The legislature further finds and declares that,  in  effect,  various
 custom  fabricated materials on local public works construction projects
 are being entirely outsourced to workers at a location or locations away
 from the project site or in foreign jurisdictions, thereby intentionally
 evading the payment of the prevailing wage and benefit package by elimi-
 nating the employment of workers at the  site  of  the  project  to  the
 detriment of those workers and the local economy.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01720-02-3
              

 S. 5475--A                          2
 
   It  is the intent of the legislature that construction and fabrication
 done off the public work site for  specific  use  only  in  public  work
 projects be compensated at the prevailing wage rate.
   §  2.  Subdivision  3  of  section  220 of the labor law is amended by
 adding a new paragraph (f) to read as follows:
   (F) (I) FOR THE PURPOSES OF THIS SUBDIVISION  CONTRACTORS  OR  SUBCON-
 TRACTORS ENGAGED IN CUSTOM FABRICATION SHALL NOT BE REGARDED AS MATERIAL
 SUPPLIERS.  FOR THE PURPOSES OF THIS SUBDIVISION, A LEGAL DAY'S WORK FOR
 WHICH THE PREVAILING RATE OF WAGES FOR THE NEW YORK COUNTY IN WHICH  THE
 PUBLIC  WORKS PROJECT IS SITUATED SHALL BE PAID TO LABORERS, WORKERS AND
 MECHANICS SHALL INCLUDE CUSTOM FABRICATION  REGARDLESS  OF  WHETHER  THE
 CUSTOM  FABRICATION  OCCURS ON-SITE, OFF-SITE OR IN ANOTHER JURISDICTION
 OUTSIDE THE STATE.  IT SHALL BE A CONDITION OF THE  CONTRACT  CONCERNING
 ALL SUCH CUSTOM FABRICATION WORK THAT THE CONTRACTOR OR EMPLOYER AWARDED
 THE PUBLIC WORK CONTRACT AND ANY SUBCONTRACTOR THERETO SHALL COVENANT TO
 PAY  THE ON-SITE PREVAILING WAGE REQUIRED FOR WORKERS AT THE SITE OF THE
 PUBLIC WORK PROJECT TO THOSE WORKERS PERFORMING THE CUSTOM  FABRICATION.
 EACH  CONTRACTOR  OR  SUBCONTRACTOR WHO EMPLOYS WORKERS OFF-SITE FOR THE
 CUSTOM FABRICATION WORK RELATED TO A PUBLIC WORK PROJECT SHALL  MAINTAIN
 CERTIFIED  PAYROLLS  FOR  THOSE  WORKERS AND PROVIDE SUCH PAYROLLS, WITH
 ORIGINAL CERTIFICATIONS, TO THE DEPARTMENT AT LEAST  ONCE  EVERY  THIRTY
 DAYS.    FOR  THE  PURPOSES  OF THIS SUBDIVISION THE TERM "CUSTOM FABRI-
 CATION" SHALL INCLUDE, BUT NOT BE LIMITED TO, THE FABRICATION OF EXTERI-
 OR OR INTERIOR WALL PANEL SYSTEMS, THE FABRICATION OF  WOODWORK,  CASES,
 CABINETS  OR COUNTERS AND THE FABRICATION OF ELECTRICAL, PLUMBING, HEAT-
 ING, COOLING, VENTILATION OR EXHAUST DUCT SYSTEMS, AND MECHANICAL  INSU-
 LATION  SOLELY AND SPECIFICALLY DESIGNED AND ENGINEERED FOR INSTALLATION
 IN THE CONSTRUCTION, REPAIR OR RENOVATION OF A  BUILDING  WHICH  IS  THE
 SUBJECT  OF  A  CONTRACT  TO WHICH THE STATE, A MUNICIPAL CORPORATION, A
 PUBLIC BENEFIT CORPORATION OR A COMMISSION APPOINTED PURSUANT TO LAW  IS
 A PARTY.
   (II) THE DEPARTMENT OF JURISDICTION SHALL BE REQUIRED TO REPORT TO THE
 FISCAL  OFFICER  THE  INTENTION  TO CONTRACT FOR CUSTOM, OFF-SITE FABRI-
 CATION OF ANY MATERIALS ON ALL CONTRACTS WHICH MAY INCLUDE  THE  EMPLOY-
 MENT  OF LABORERS, WORKERS OR MECHANICS IN THE APPLICATION TO THE FISCAL
 OFFICER FOR THE APPROVAL OF SUCH CONTRACT. THE DEPARTMENT  OF  JURISDIC-
 TION'S  REPORT  SHALL STATE THE NAME AND ADDRESS OF THE OFF-SITE, CUSTOM
 FABRICATOR, IDENTIFY THE CUSTOM  MATERIALS  THAT  ARE  BEING  FABRICATED
 OFF-SITE  AND  THE  QUANTITY THEREOF, THE ESTIMATED COST OF THE OFF-SITE
 FABRICATION, INCLUDING THE TRANSPORTATION OF THE MATERIALS TO  THE  SITE
 OF THE WORK AND THE ESTIMATED NUMBER OF WORKERS EMPLOYED TO COMPLETE THE
 CUSTOM FABRICATION AT THE OFF-SITE LOCATION. UPON RECEIPT OF THE DEPART-
 MENT  OF  JURISDICTION'S REPORT, THE FISCAL OFFICER SHALL MAKE AVAILABLE
 SAID REPORT TO THE PUBLIC THROUGH ITS WEBSITE.
   (III) THE FISCAL OFFICER SHALL PRODUCE AN ANNUAL REPORT ON THE ECONOM-
 IC IMPACT TO THE STATE BUSINESSES AND RESIDENTS DUE TO  OFF-SITE  FABRI-
 CATION.
   §  3.  This  act  shall take effect on the sixtieth day after it shall
 have become a law and shall apply only to those contracts put out to bid
 on or after such effective date.