NY State Senate Bill 2011-S3428

Senate Bill S3428

2011-2012 Legislative Session

Requires certain information to be provided to the legislature prior to appropriating money to state entities for economic development projects

download bill text pdf

Archive: Last Bill Status - In Senate Committee Finance Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 04, 2012	referred to finance
Feb 22, 2011	referred to finance

2011-S3428 (ACTIVE) - Details

Current Committee:: Senate Finance
Law Section:: State Finance Law
Laws Affected:: Amd §136, St Fin L
Versions Introduced in 2009-2010 Legislative Session:: S5464

2011-S3428 (ACTIVE) - Summary

Requires certain information to be provided to the legislature prior to appropriating money to state entities for economic development projects.

2011-S3428 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S3428

TITLE OF BILL:

An act
to amend the state finance law, in relation to requiring certain
information to be provided to the legislature prior to appropriating
money to state entities for certain projects

PURPOSE:

To inform the legislature concerning the employment and payment
of local construction workers prior to the approval of appropriations
for economic development projects.

SUMMARY OF PROVISIONS:

Section 1 of the bill adds new subdivisions (2) and (3) to section 136
of the state finance law to require any state entity seeking an
appropriation for financial assistance on an economic development
project to provide the Legislature with information concerning the
plan by the recipient of such assistance to employ local construction
workers for the project. Subdivision (2) requires that this
information state whether the recipient has entered into a written
agreement to hire local workers, the type of skilled workers needed,
efforts by the recipient or state entity to find skilled workers

through the Department of Labor, and whether prevailing wages will be
paid. The Department of Labor would provide assistance to identify
the availability of any needed skilled workers. Subdivision (3)
defines the terms "financial assistance" and "economic development
project."

EXISTING LAW:

The state finance law does not require that the Legislature be
provided with information concerning the employment of construction
workers and the wages to be paid on publicly-funded economic
development projects prior to approving an appropriation for such
projects.

JUSTIFICATION:

The Legislature has approved large amounts of financial assistance to
companies for projects that are distributed through state entities
for economic development purposes. This approval is provided with the
expectation that these projects will result in the employment of local
workers, which in turn will help the local economy where the project
is located. Although representations may be made prior to legislative
approval that local construction workers will be hired or that
prevailing wages will be paid, it can be difficult to enforce these

expectations in the absence of a written commitment to follow through
on such a plan.

New York is fortunate to have thousands of highly skilled workers in
diverse trades who are trained through apprenticeships and have years
of experience working their trade. This bill will better inform the
Legislature before it approves large amounts of public funds for
economic development as to whether a project will employ and pay
local workers as intended.

PRIOR LEGISLATIVE HISTORY:

New bill.

FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

This bill would take effect immediately.

2011-S3428 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  3428

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            February 22, 2011
                               ___________

Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
  printed to be committed to the Committee on Finance

AN ACT to amend the state finance law, in relation to requiring  certain
  information  to  be provided to the legislature prior to appropriating
  money to state entities for certain projects

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 136 of the state finance law, as amended by chapter
413 of the laws of 1989, is amended to read as follows:
  S  136.  Contracts  in  pursuance  of appropriations. 1. A contract or
contracts made in pursuance of an  appropriation  by  the  state  for  a
specific  object shall be for the completion of the work contemplated by
the appropriation, and in the aggregate shall not exceed the  amount  of
such  appropriation.  A  contract  for  a part of such work shall not be
binding upon the state until contracts are also made covering the entire
work contemplated by such appropriation, except that, (a)  upon  certif-
ication  by the agency having jurisdiction to the state comptroller that
sufficient appropriations remain  for  completion  of  the  entire  work
contemplated,  preliminary work such as site preparation and infrastruc-
ture work may be commenced for a project where the timeliness thereof is
of the essence and the director of the budget certifies to such need and
to the availability of  appropriations,  and  except  (b)  where  it  is
expressly  provided by such appropriation that a part of the work may be
done by day's labor.
  2. PRIOR TO AN APPROPRIATION BY THE STATE FOR ANY FINANCIAL ASSISTANCE
BY A STATE AGENCY, PUBLIC AUTHORITY OR CORPORATION, OR ANY  OTHER  STATE
ENTITY  FOR  AN  ECONOMIC DEVELOPMENT PROJECT, SUCH ENTITY SHALL PROVIDE
THE LEGISLATURE WITH INFORMATION REGARDING THE PLAN BY THE RECIPIENT  OF
SUCH  FINANCIAL  ASSISTANCE  TO  HIRE LOCAL CONSTRUCTION WORKERS FOR THE
PROJECT.  SUCH INFORMATION SHALL STATE WHETHER  THE  RECIPIENT  HAS  MET
WITH ANY LOCAL LABOR ORGANIZATION AND ENTERED INTO ANY WRITTEN AGREEMENT

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06809-01-1

S. 3428                             2

CONCERNING  A  PLAN  TO HIRE LOCAL CONSTRUCTION WORKERS FOR THE PROJECT,
THE TYPES OF CONSTRUCTION SKILLS NEEDED FOR SUCH PROJECT, EFFORTS BY THE
STATE ENTITY OR RECIPIENT TO IDENTIFY SKILLED CONSTRUCTION WORKERS NEED-
ED  FOR THE PROJECT THROUGH THE DEPARTMENT OF LABOR AND WHETHER PREVAIL-
ING WAGES WILL BE PAID FOR ALL OF THE CONSTRUCTION WORK. THE  DEPARTMENT
OF  LABOR SHALL ASSIST THE STATE ENTITY AND THE RECIPIENT IN DETERMINING
THE AVAILABILITY OF SKILLED WORKERS NEEDED FOR  THE  CONSTRUCTION  WORK.
Except  as  provided  in  section thirty-eight of the highway law, every
such contract shall be accompanied by a bond for the completion  of  the
work,  specified  in the contract, within the amount stipulated therein,
which bond shall be filed in the office of the state comptroller.
  3. FOR THE PURPOSE OF THIS SECTION:
  (A) "FINANCIAL ASSISTANCE" SHALL MEAN THE PROCEEDS IN EXCESS OF  THREE
MILLION DOLLARS OF BONDS, GRANTS, LOANS, TAX ABATEMENTS, TAX EXEMPTIONS,
TAX CREDITS, TAX INCREMENT FINANCING OR REAL PROPERTY; AND
  (B) "ECONOMIC DEVELOPMENT PROJECT" SHALL MEAN ANY PROJECT RELATED TO A
PUBLIC  USE,  BENEFIT  OR  PURPOSE,  OR ANY PURPOSE RELATED PRIMARILY TO
ECONOMIC DEVELOPMENT, FOR  WHICH  ANY  STATE  ENTITY  IS  AUTHORIZED  TO
PROVIDE GRANTS, TAX CREDITS, OR FINANCIAL ASSISTANCE.
  S 2. This act shall take effect immediately.

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