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. Substantially affiliated-owned entities, as defined by Labor. Law § 220(5)(g), to the federally debarred contractor may also be debarred so long as they are provided notice and afforded the opportunity to 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 has violated the Davis-Bacon Act, the Copeland Act, or the Contract Work Hours and Safety Standards Act, will be considered in the selection of a lowest responsible bidder.

Section 3 provides for an effective date 120 days after the bill becomes law.

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

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 he 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. 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.

Under this legislation, debarments would run while federal debarment is in effect and would apply prospectively.

Legislative history

This is a new bill.

Fiscal implications

None.

Effective date

This act shall take effect on the one hundred twentieth day after it shall have become a law and shall apply to all public work bids and contracts solicited on or after such effective date. It shall not apply retroactively to previously issued or existing public work contracts