S T A T E O F N E W Y O R K
________________________________________________________________________
4195
2015-2016 Regular Sessions
I N S E N A T E
March 9, 2015
___________
Introduced by Sen. RANZENHOFER -- read twice and ordered printed, and
when printed to be committed to the Committee on Local Government
AN ACT to amend the general municipal law, the state finance law, and
the labor law, in relation to project labor agreements for public work
projects
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. This act shall be known and may be cited as the "public
construction savings act".
S 2. Subdivision 1 of section 103 of the general municipal law, as
amended by section 1 of chapter 2 of the laws of 2012, is amended to
read as follows:
1. Except as otherwise expressly provided by an act of the legislature
or by a local law adopted prior to September first, nineteen hundred
fifty-three, all contracts for public work involving an expenditure of
more than thirty-five thousand dollars and all purchase contracts
involving an expenditure of more than twenty thousand dollars, shall be
awarded by the appropriate officer, board or agency of a political
subdivision or of any district therein including but not limited to a
soil conservation district to the lowest responsible bidder furnishing
the required security after advertisement for sealed bids in the manner
provided by this section, provided, however, that purchase contracts
(including contracts for service work, but excluding any purchase
contracts necessary for the completion of a public works contract pursu-
ant to article eight of the labor law) may be awarded on the basis of
best value, as defined in section one hundred sixty-three of the state
finance law, to a responsive and responsible bidder or offerer in the
manner provided by this section except that in a political subdivision
other than a city with a population of one million inhabitants or more
or any district, board or agency with jurisdiction exclusively therein
the use of best value for awarding a purchase contract or purchase
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09420-01-5
S. 4195 2
contracts must be authorized by local law or, in the case of a district
corporation, school district or board of cooperative educational
services, by rule, regulation or resolution adopted at a public meeting.
In any case where a responsible bidder's or responsible offerer's gross
price is reducible by an allowance for the value of used machinery,
equipment, apparatus or tools to be traded in by a political subdivi-
sion, the gross price shall be reduced by the amount of such allowance,
for the purpose of determining the best value. In cases where two or
more responsible bidders furnishing the required security submit identi-
cal bids as to price, such officer, board or agency may award the
contract to any of such bidders. Such officer, board or agency may, in
his or her or its discretion, reject all bids or offers and readvertise
for new bids or offers in the manner provided by this section. In deter-
mining whether a purchase is an expenditure within the discretionary
threshold amounts established by this subdivision, the officer, board or
agency of a political subdivision or of any district therein shall
consider the reasonably expected aggregate amount of all purchases of
the same commodities, services or technology to be made within the
twelve-month period commencing on the date of purchase. Purchases of
commodities, services or technology shall not be artificially divided
for the purpose of satisfying the discretionary buying thresholds estab-
lished by this subdivision. A change to or a renewal of a discretionary
purchase shall not be permitted if the change or renewal would bring the
reasonably expected aggregate amount of all purchases of the same
commodities, services or technology from the same provider within the
twelve-month period commencing on the date of the first purchase to an
amount greater than the discretionary buying threshold amount. For
purposes of this section, "sealed bids" and "sealed offers", as that
term applies to purchase contracts, (including contracts for service
work, but excluding any purchase contracts necessary for the completion
of a public works contract pursuant to article eight of the labor law)
shall include bids and offers submitted in an electronic format includ-
ing submission of the statement of non-collusion required by section one
hundred three-d of this article, provided that the governing board of
the political subdivision or district, by resolution, has authorized the
receipt of bids and offers in such format. Submission in electronic
format may, for technology contracts only, be required as the sole meth-
od for the submission of bids and offers. Bids and offers submitted in
an electronic format shall be transmitted by bidders and offerers to the
receiving device designated by the political subdivision or district.
Any method used to receive electronic bids and offers shall comply with
article three of the state technology law, and any rules and regulations
promulgated and guidelines developed thereunder and, at a minimum, must
(a) document the time and date of receipt of each bid and offer received
electronically; (b) authenticate the identity of the sender; (c) ensure
the security of the information transmitted; and (d) ensure the confi-
dentiality of the bid or offer until the time and date established for
the opening of bids or offers. The timely submission of an electronic
bid or offer in compliance with instructions provided for such
submission in the advertisement for bids or offers and/or the specifica-
tions shall be the responsibility solely of each bidder or offerer or
prospective bidder or offerer. No political subdivision or district
therein shall incur any liability from delays of or interruptions in the
receiving device designated for the submission and receipt of electronic
bids and offers. A CONTRACTOR BIDDING ON A REQUEST FOR PROPOSAL ISSUED
BY THE APPROPRIATE OFFICER, BOARD OR AGENCY OF A POLITICAL SUBDIVISION
S. 4195 3
OR OF ANY DISTRICT THEREIN, INCLUDING BUT NOT LIMITED TO A SOIL CONSER-
VATION DISTRICT, OFFERING AN OPTIONAL PROJECT LABOR AGREEMENT PURSUANT
TO PARAGRAPH (A) OF SUBDIVISION TWO OF SECTION TWO HUNDRED TWENTY-TWO OF
THE LABOR LAW, MAY SUBMIT A BID THAT DOES NOT INCLUDE A PROJECT LABOR
AGREEMENT, AND SUCH CONTRACT FOR PUBLIC WORK SHALL BE AWARDED TO THE
CONTRACTOR WITH THE LOW BID REGARDLESS OF WHETHER A PROJECT LABOR AGREE-
MENT WAS INCLUDED IN A CONTRACTOR'S BID PROPOSAL.
S 3. Subdivision 1 of section 103 of the general municipal law, as
amended by section 2 of chapter 2 of the laws of 2012, is amended to
read as follows:
1. Except as otherwise expressly provided by an act of the legislature
or by a local law adopted prior to September first, nineteen hundred
fifty-three, all contracts for public work involving an expenditure of
more than thirty-five thousand dollars and all purchase contracts
involving an expenditure of more than twenty thousand dollars, shall be
awarded by the appropriate officer, board or agency of a political
subdivision or of any district therein including but not limited to a
soil conservation district to the lowest responsible bidder furnishing
the required security after advertisement for sealed bids in the manner
provided by this section, provided, however, that purchase contracts
(including contracts for service work, but excluding any purchase
contracts necessary for the completion of a public works contract pursu-
ant to article eight of the labor law) may be awarded on the basis of
best value, as defined in section one hundred sixty-three of the state
finance law, to a responsive and responsible bidder or offerer in the
manner provided by this section except that in a political subdivision
other than a city with a population of one million inhabitants or more
or any district, board or agency with jurisdiction exclusively therein
the use of best value of awarding a purchase contract or purchase
contracts must be authorized by local law or, in the case of a district
corporation, school district or board of cooperative educational
services, by rule, regulation or resolution adopted at a public meeting.
In determining whether a purchase is an expenditure within the discre-
tionary threshold amounts established by this subdivision, the officer,
board or agency of a political subdivision or of any district therein
shall consider the reasonably expected aggregate amount of all purchases
of the same commodities, services or technology to be made within the
twelve-month period commencing on the date of purchase. Purchases of
commodities, services or technology shall not be artificially divided
for the purpose of satisfying the discretionary buying thresholds estab-
lished by this subdivision. A change to or a renewal of a discretionary
purchase shall not be permitted if the change or renewal would bring the
reasonably expected aggregate amount of all purchases of the same
commodities, services or technology from the same provider within the
twelve-month period commencing on the date of the first purchase to an
amount greater than the discretionary buying threshold amount. In any
case where a responsible bidder's or responsible offerer's gross price
is reducible by an allowance for the value of used machinery, equipment,
apparatus or tools to be traded in by a political subdivision, the gross
price shall be reduced by the amount of such allowance, for the purpose
of determining the low bid or best value. In cases where two or more
responsible bidders furnishing the required security submit identical
bids as to price, such officer, board or agency may award the contract
to any of such bidders. Such officer, board or agency may, in his, her
or its discretion, reject all bids or offers and readvertise for new
bids or offers in the manner provided by this section. A CONTRACTOR
S. 4195 4
BIDDING ON A REQUEST FOR PROPOSAL ISSUED BY THE APPROPRIATE OFFICER,
BOARD OR AGENCY OF A POLITICAL SUBDIVISION OR OF ANY DISTRICT THEREIN,
INCLUDING BUT NOT LIMITED TO A SOIL CONSERVATION DISTRICT, OFFERING AN
OPTIONAL PROJECT LABOR AGREEMENT PURSUANT TO PARAGRAPH (A) OF SUBDIVI-
SION TWO OF SECTION TWO HUNDRED TWENTY-TWO OF THE LABOR LAW, MAY SUBMIT
A BID THAT DOES NOT INCLUDE A PROJECT LABOR AGREEMENT, AND SUCH CONTRACT
FOR PUBLIC WORK SHALL BE AWARDED TO THE CONTRACTOR WITH THE LOW BID
REGARDLESS OF WHETHER A PROJECT LABOR AGREEMENT WAS INCLUDED IN A
CONTRACTOR'S BID PROPOSAL.
S 4. The state finance law is amended by adding a new section 148 to
read as follows:
S 148. PROJECT LABOR AGREEMENTS. A CONTRACTOR BIDDING ON A REQUEST
FOR PROPOSAL ISSUED BY AN OFFICER, BOARD, DEPARTMENT, COMMISSION OR
COMMISSIONS FOR (I) THE ERECTION, CONSTRUCTION OR ALTERATION OF BUILD-
INGS FOR THE STATE, OR (II) THE CONSTRUCTION, RECONSTRUCTION, REPAIR OR
IMPROVEMENT TO ROADS, TOLLROADS, HIGHWAYS, RAILWAYS, BRIDGES, TERMINALS,
OR OTHER TRANSPORTATION FACILITIES FOR THE STATE, OFFERING AN OPTIONAL
PROJECT LABOR AGREEMENT PURSUANT TO PARAGRAPH (A) OF SUBDIVISION TWO OF
SECTION TWO HUNDRED TWENTY-TWO OF THE LABOR LAW, MAY SUBMIT A BID THAT
DOES NOT INCLUDE A PROJECT LABOR AGREEMENT AND SUCH CONTRACT FOR PUBLIC
WORK SHALL BE AWARDED TO THE CONTRACTOR WITH THE LOW BID REGARDLESS OF
WHETHER A PROJECT LABOR AGREEMENT WAS INCLUDED IN A CONTRACTOR'S BID
PROPOSAL.
S 5. Paragraph (a) of subdivision 2 of section 222 of the labor law,
as added by section 18 of part MM of chapter 57 of the laws of 2008, is
amended to read as follows:
(a) Any agency, board, department, commission or officer of the state
of New York, or of any political subdivision thereof as defined in
section one hundred of the general municipal law, municipal corporation
as defined in section sixty-six of the general construction law, public
benefit corporation, or local or state authority as defined in section
two of the public authorities law having jurisdiction over the public
work may NOT require[a contractor awarded a contract, subcontract,
lease, grant, bond, covenant or other agreement for a project to enter
into], BUT MAY OFFER AS AN OPTION, PARTICIPATION IN a project labor
agreement [during and for the work involved with such project when such
requirement is], AND SHALL NOTIFY EACH CONTRACTOR OF THE OPTION TO
INCLUDE OR NOT INCLUDE PARTICIPATION IN A PROJECT LABOR AGREEMENT WITH
ITS BID, AS part of the agency, board, department, commission or officer
of the state of New York, political subdivision, municipal corporation,
public benefit corporation or local or state authority having jurisdic-
tion over the public work request for proposals for the project and when
the agency, board, department, commission or officer of the state of New
York, political subdivision, municipal corporation, public benefit
corporation or local or state authority having jurisdiction over the
public work determines that its interest in obtaining the best work at
the lowest possible price, preventing favoritism, fraud and corruption,
and other considerations such as the impact of delay, the possibility of
cost savings advantages, and any local history of labor unrest, are best
met by requiring a project labor agreement, BUT SHALL IN ANY EVENT
AWARD THE SUBCONTRACT, LEASE, CONTRACT, GRANT, BOND, COVENANT OR OTHER
AGREEMENT FOR A PROJECT TO THE CONTRACTOR WITH THE LOW BID REGARDLESS OF
WHETHER A PROJECT LABOR AGREEMENT WAS INCLUDED IN THE CONTRACTOR'S BID
PROPOSAL.
S 6. This act shall take effect on the sixtieth day after it shall
have become a law, and shall control all contracts advertised or solic-
S. 4195 5
ited 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; provided, however that the amend-
ments 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 rever-
sion of such subdivision pursuant to subdivision (a) of section 41 of
part 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.