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

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. The contractor may 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 is debarred under the Davis-Bacon Act will be considered in the selection of a lowest responsible bidder. This provision will come into play in the case where a contractor has appealed to DOL and been removed from the state debarment list; the entity awarding the contract will still be able to consider the circumstances of the federal debarment.

Section 3 provides for an immediate effective date and that this shall just apply prospectively.

Note on amendment to A print - technical amendment was to section 2 of the bill-changing subdivision 1-b to subdivision 1-c of § 103 of the general municipal law.

Note on amendment to B print - removes the three year debarment in NYS, requires that debarments would run while federal debarment is in effect.

Note on amendment to C print - clarifies that this shall apply prospectively.

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

Under Article 8 of the Labor Law, contractors or subcontractors who engage in a public work project sponsored by the State of New York or any of its political subdivisions are required to pay their laborers, workers and material men not less than the prevailing rate of wage.

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 be 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, or one violation relating to the falsification of payroll records or the kickback of wages or supplements. 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.

Legislative history

2010 Session - New Bill

Fiscal implications

None to State.

Local fiscal implications

None.

Effective date

Immediately.