Requires contractors and subcontractors working on covered projects submit their payrolls or transcripts to the fiscal officer; directs the department to create a database for such records that are publicly available for inspection.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A9265A
SPONSOR: Bronson TITLE OF BILL:
An act to amend the labor law, in relation to requiring contractors and
subcontractors employed by the state to submit their payrolls or tran-
scripts to the fiscal officer
PURPOSE OR GENERAL IDEA OF BILL:
To add a new section 220-j to Article 8 of the labor law to create an
electronic certified payroll system applicable to all prevailing wage
projects.
SUMMARY OF PROVISIONS:
Section adds a new section 220-j to article 8 of the labor law which
details relevant definitions, covered projects, the information required
to be submitted electronically by each contractor, the applicable penal-
ties for failure to do so and sets a date of December 31, 2024 for the
Department of Labor (DOL) to implement such system. Electronic report-
ing requirements would be monthly, unless the contract requires more
frequent reporting, and would apply to all records that contractors are
currently required to report pursuant to section 220(3-a)(a)(iii) of
labor law. Additionally the contractor must provide documentation of
each fund, plan or program where any supplement has been paid or
provided for, along with a copy of the payment bond required by section
137 of the state finance law, which is already open to public
inspection.
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):
The A-print amendments would allow enforcement of the provisions to be
carried out by the city's comptroller for a city with a population in
excess of one million.
JUSTIFICATION:
This legislation will provide a more streamlined system for DOL to
collect and maintain certified payroll already required by the law. It
will also assist the various public entities, including municipalities,
who are responsible for ensuring contractors maintain these records. The
sponsors anticipate the system will pay for itself in terms of increased
efficiency for DOL enforcement activities and resulting collections.
Notably, contractors will all have to register electronically at the end
of 2024 pursuant to section 220-i of the labor law; it would make sense
for payroll reporting to be included.
LEGISLATIVE HISTORY:
New Bill.
FISCAL IMPLICATIONS:
To be determined.
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
9265--A
IN ASSEMBLY
February 23, 2024
___________
Introduced by M. of A. BRONSON, GONZALEZ-ROJAS, SHRESTHA, REYES,
L. ROSENTHAL, LUCAS, JACOBSON, SAYEGH, SHIMSKY, ROZIC, BORES, RA,
GANDOLFO, LUNSFORD -- read once and referred to the Committee on Labor
-- reported and referred to the Committee on Codes -- reported and
referred to the Committee on Ways and Means -- committee discharged,
bill amended, ordered reprinted as amended and recommitted to said
committee
AN ACT to amend the labor law, in relation to requiring contractors and
subcontractors employed by the state to submit their payrolls or tran-
scripts to the fiscal officer
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The labor law is amended by adding a new section 220-j to
2 read as follows:
3 § 220-j. Payroll reporting requirements. 1. As used in this section:
4 a. "Contractor" means any entity entering into a contract to perform
5 construction, demolition, reconstruction, excavation, rehabilitation,
6 repair, installation, renovation, alteration, or custom fabrication,
7 which is subject to the provisions of this article.
8 b. "Fiscal officer" for purposes of this section shall have the same
9 meaning as set forth in paragraph e of subdivision five of section two
10 hundred twenty of this article.
11 c. "Subcontractor" means any entity subcontracting with a contractor
12 to perform construction, demolition, reconstruction, excavation, reha-
13 bilitation, repair, installation, renovation, alteration, or custom
14 fabrication, which is subject to the provisions of this article.
15 d. "Covered project" means any project subject to the provisions of
16 this article, including but not limited to, public work projects,
17 privately owned prevailing wage projects and those subject to the
18 provisions of sections two hundred twenty-four-a, two hundred twenty-
19 four-d and sections two hundred twenty-four-f of this article.
20 e. "Monthly" means at least once every thirty days while work is being
21 performed on a covered project and within thirty days after the final
22 day of work was performed on the covered project.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD14231-07-4
A. 9265--A 2
1 2. Each contractor and subcontractor working on a covered project
2 shall furnish records consistent with subparagraph (iii) of paragraph a
3 of subdivision three-a of section two hundred twenty of this article
4 directly to the fiscal officer in the following manner:
5 a. submit records monthly unless such covered project contract
6 requires more frequent reporting requirements;
7 b. in an electronic format, in a manner prescribed by the commission-
8 er, on the department's website;
9 c. provide documentation of each fund, plan or program where any
10 supplement has been paid or provided for; and
11 d. provide a copy of the payment bond required by section one hundred
12 thirty-seven of the state finance law, including all information open to
13 public inspection.
14 3. a. A contractor or subcontractor who fails to furnish records
15 pursuant to this section relating to its employees, shall be subject to
16 a penalty by the fiscal officer of one hundred dollars for each day such
17 contractor or subcontractor is in violation of this section.
18 b. The fiscal officer shall not level a penalty pursuant to this
19 subdivision until such contractor or subcontractor fails to furnish such
20 electronic records fourteen days after the requirements set forth in
21 paragraph a of subdivision two of this section.
22 c. Such penalties pursuant to this subdivision shall only accrue to
23 the actual contractor or subcontractor who failed to furnish such
24 required records.
25 d. All penalties collected pursuant to this section shall be used by
26 the fiscal officer for prevailing wage enforcement.
27 e. The fiscal officer shall undertake activities it deems necessary
28 to monitor and enforce compliance with this section.
29 4. No later than December thirty-first, two thousand twenty-four, the
30 department shall develop and implement an online database of electronic
31 certified payroll records submitted pursuant to this section. Such data-
32 base shall be publicly accessible, but not include personally identifi-
33 able information. Such database shall be searchable, including each
34 available payroll record subset. In a city with a population in excess
35 of one million, the commissioner shall ensure access to such online
36 database is provided to the fiscal officer in a manner that allows such
37 officer to monitor and enforce the provisions of this section.
38 § 2. This act shall take effect immediately.
