Establishes the "Public Construction Savings Act"

Summary of specific provisions

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

Sections 2 and 3 - would amend subdivision 1 of section 103 of the General Municipal Law, (including subdivision 1 that is effective until June 1, 2013 and the subdivision that becomes effective June 1, 2013) to provide that when a municipality enters into a project labor agreement, participation in the agreement is optional for bidders, who can choose to bid either with or without participation in the agreement, and the municipality shall pick the lowest bid consistent with other laws and regulations.

Section 4 - amends the State Finance Law to add a new section 148 which provides 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 where such request contains the option for participation in a project labor agreement, may submit a bid that does not include such participation and the bid shall be awarded to the contractor with the low bid consistent with other laws, regardless of whether participation was included in the bid.

Section 5 - amends paragraph (a) of subdivision 2 of section 222 of the Labor Law to provide that participation in a project labor agreement may 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 6 - provides that this act shall take effect 60 days after it shall have become a law, and shall control all contracts advertised or solicited for bid on or after the effective date of the act under provisions of any law requiring contracts to be let pursuant to provisions of law amended by this act, provided that amendments to subdivision 1 of section 103 of the General Municipal Law made by section two of this act shall be subject to the expiration and reversion of such subdivision pursuant to subdivision (a) of section 41 of the X of Chanter 62 of the laws of 2003, as amended, when upon such date the provisions of section three of this act shall take effect.

Existing law

Section 222 of the Labor Law authorizes a public entity to require a 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, school districts and municipalities.

Prior legislative history

2011-12: S.4121/A.7855 -- LOCAL GOV/Local Gov't 2013-14: S.2760-A/A.3059-A - LOCAL GOV/Local Gov't

Effective date

This act shall take effect 60 days after it shall have become a law, and shall control all contracts advertised or solicited for bid on or after the effective date of the act under provisions of any law requiring contracts to be let pursuant to provisions of law amended by this act, provided that amendments to subdivision 1 of section 103 of the General Municipal Law made by section two of this act shall be subject to the expiration and reversion of such subdivision pursuant to subdivision (a) of section 41 of the X of Chapter 62 of the laws of 2003, as amended, when upon such date the provisions of section three of this act shall take effect.