Relates to project labor agreements for public work projects

Summary of specific provisions

Section 1 - would establish the "Public Construction Savings Pilot Act".

Section 2 - would amend the Public Authorities Law by adding a new section 2880-B to provide that a contractor bidding on a request for proposal issued by any public authority for the erection, construction or alteration of buildings, or the construction, reconstruction, repair, or improvement to roads, tollroads, highways, railroads, bridges, terminals, or other transportation facilities with a project labor agreement may submit a bid that does not include a project labor agreement and such contract shall be awarded to the contractor with the low bid regardless of whether a project labor agreement was included in the bid proposal.

Section 3 amends the State Finance Law by adding a new section 148 to provide that a contractor bidding on a Request for Proposal issued by an officer, board, department, commission or commissions for the erection, construction or alteration of buildings, or the construction, reconstruction, repair, or improvement to roads, tollroads, highways, railroads, bridges, terminals, or other transportation facilities for the state, with a project labor agreement may submit a bid that does not include a project labor agreement and such contract shall be awarded to the contractor with the low bid regardless of whether a project labor agreement was included in the bid proposal.

Section 4 - amends paragraph (a) of subdivision 2 of section 222 of the Labor Law to provide that participation in a project labor agreement shall not be required, but may be optional at the choice of the public entity seeking bids for a project, that as part of the bid, contractors shall be notified of the existence of a project labor agreement and their option to participate in such agreement, and that whether a bid includes participation in the agreement or not, the contract will be awarded to the low bid.

Section 5 - provides that this act shall take effect 60 days after it shall have become a law, and shall expire five years after such effective date when upon such date the provisions of this act shall be deemed repealed. This act shall control all contracts advertised or solicited for bid on or after the effective date of this act under the provisions of any law requiring contracts to be let pursuant to provisions of law amended by this act.

Existing law

Section 222 of the Labor Law authorizes a public entity to require a Project Labor Agreement (PLA) where it determines to do

so in accordance with specified statutory criteria. The law provides that where a PLA is required, the public works project will not be subject to the separate bidding requirements pursuant to the Wicks Law, but instead will be subject to the restrictions of the PLA, the contractor providing a labor and material bond and a performance bond, and contractor and subcontractor participation in apprentice training programs for the trades they employ.

Justification

Current law acts to discourage true arms-length bidding to obtain the best possible prices on public contracts. Assumptions are made that bids will be lower with or without inclusion of Project Labor Agreements without allowing bidding to actually determine what is the best and most cost effective choice for projects. Jobs bid without participation in the PLA would, of course, be required to comply with any laws, such as the Wicks Law, that would be waived with participation in the PLA. This legislation would allow a bidder to submit a responsive bid with or without a PLA and would require the public owner to award the job to the lowest bidder, regardless of whether such bidder has included a PLA in their proposal. In this way, taxpayers are assured that they are receiving the lowest price for needed public construction.

Fiscal implications

This bill will result in millions of dollars of cost-savings to the state and public authorities.

Prior legislative history

2013-14 - S.3484-A/A.6523 - CORPORATIONS/Corporations

Effective date

This act shall take effect 60 days after it shall have become a law, and shall expire five years after such effective date when upon such date the provisions of this act shall be deemed repealed. This act shall control all contracts advertised or solicited for bid on or after the effective date of this act under the provisions of any law requiring contracts to be let pursuant to provisions of law amended by this act.