NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A5498A
SPONSOR: Bronson TITLE OF BILL: An act to amend the labor law, in relation to hours,
wages and supplements in contracts for public work
PURPOSE OR GENERAL IDEA OF BILL: Subjects all projects financed, in
whole or in part, through certain public entities, to hours, wages and
supplements contract requirements.
SUMMARY OF PROVISIONS:
Sections 1-4 of the bill amend section 220 of the Labor law.
Section 1 subjects every contract for public work to certain contracting
requirements related to hours, wages, and supplements.
Section 2 of the bill defines public work to include all projects paid
for in whole or in part with public funds, certain construction work
performed under private contract, and certain construction work
performed as a condition of regulatory approval.
Provides for an exemption for homeowners, construction performed by a
nonprofit where they receive less than $100,000 in public funding and
the gross annual income of such non-profit is less than $1 million,
affordable housing where no less than 75 percent of the units are
affordable for households up to 60 percent of the area median income,
and projects eligible for benefits under section 421-a of the real prop-
erty tax law.
Defines "paid for in whole or in part out of public funds" to include
the payment of money, issuance of bonds and grants by the state, a
public entity or a third party acting on behalf of a public entity, the
transfer of a public asset for less than fair market value, certain
loans, tax credits, and other forms of public subsidies.
Defines a "public entity" to include, but not be limited to, the state,
a local development corporation, municipal corporation, industrial
development agencies, industrial development authority, educational
corporation established under article fifty-six of the education law,
commission appointed pursuant to law, state, local and interstate and
international authorities, and any trust created by any such entities.
Defines "construction" and "custom fabrication."
Section 3 of the bill amends the labor law by adding a new section 224-a
to allow the commissioner to notify and issue a stop-work order when
there is an alleged violation of this article and provides an appeal
process.
Section 4 sets the effective date.
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):
Makes technical changes and includes an exemption for homeowners,
certain non-profits, certain affordable housing projects, and projects
eligible for benefits provided under section 421-a of the real property
taxation law.
JUSTIFICATION:
The New York State Constitution makes clear that it is the public policy
of New York to pay the prevailing wage to those working on state
financed construction projects, so as not to undermine the cost of local
labor. In spite of this policy, employees working on publicly financed
projects are presently receiving the prevailing wage due to judicial
opinions which have undermined the law's original intent. This bill
would remedy the present situation by adding a clear definition of
"public work" subject to this article.
LEGISLATIVE HISTORY:
This is a new bill.
FISCAL IMPLICATIONS:
None.
EFFECTIVE DATE:
This act shall take effect immediately.
