S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    984
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 11, 2023
                                ___________
 
 Introduced  by  M.  of  A.  MAGNARELLI  -- read once and referred to the
   Committee on Labor
 
 AN ACT to amend the labor law,  in  relation  to  clarifying  provisions
   related  to  a  registration system for contractors and subcontractors
   engaged in public work and covered projects; and to amend a chapter of
   the laws of 2022 amending the labor law  relating  to  establishing  a
   registration  system  for  contractors  and  subcontractors engaged in
   public work and covered projects in order to better  enforce  existing
   labor  laws  and regulations in the public works industry, as proposed
   in legislative bills numbers S.  5994-C and A. 1338-C, in relation  to
   the effectiveness thereof
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivisions 1, 2, 3, 4, 5 and 6 of section  220-i  of  the
 labor  law, as added by a chapter of the laws of 2022 amending the labor
 law relating to establishing a registration system for  contractors  and
 subcontractors  engaged  in public work and covered projects in order to
 better enforce existing labor laws and regulations in the  public  works
 industry,  as  proposed  in  legislative  bills numbers S. 5994-C and A.
 1338-C, are amended to read as follows:
   1. As used in this section:
   a. "Contractor" means any [contractor or subcontractor] ENTITY  enter-
 ing into a contract to perform construction, demolition, reconstruction,
 excavation,  rehabilitation,  repair,  installation,  renovation, alter-
 ation, or custom fabrication, which is subject to the provisions of this
 article.
   b. ["Bureau" means the department's bureau of public  works]  "SUBCON-
 TRACTOR"  MEANS  ANY  ENTITY SUBCONTRACTING WITH A CONTRACTOR TO PERFORM
 CONSTRUCTION, DEMOLITION,  RECONSTRUCTION,  EXCAVATION,  REHABILITATION,
 REPAIR,  INSTALLATION,  RENOVATION,  ALTERATION,  OR CUSTOM FABRICATION,
 WHICH IS SUBJECT TO THE PROVISIONS OF THIS ARTICLE.
   c. "Covered project" means any project subject to  the  provisions  of
 this  article,  including  but  not limited to, public work projects and
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD04023-01-3
 A. 984                              2
 
 those subject to the provisions of sections  two  hundred  twenty-four-a
 and two hundred twenty-four-d of this article.
   2.  a.  [Prior  to  submitting  a bid on a contract for public work or
 commencing work on a covered project under private contract] IN  ACCORD-
 ANCE WITH SUBDIVISION SIX OF THIS SECTION, a contractor OR SUBCONTRACTOR
 shall  register  in  writing  with  the  [bureau] COMMISSIONER on a form
 provided by the commissioner.  The  form  shall  require  the  following
 information:
   i.  The  name,  principal business address and telephone number of the
 contractor OR SUBCONTRACTOR.
   ii. Whether the contractor  is  a  person,  partnership,  association,
 joint stock company, trust, corporation, or other form of business enti-
 ty.
   iii.  The name and address of each person with [a financial] AN OWNER-
 SHIP interest in the contractor  OR  SUBCONTRACTOR  and  the  percentage
 interest,  except that if the contractor OR SUBCONTRACTOR is a publicly-
 traded corporation, the contractor OR  SUBCONTRACTOR  shall  supply  the
 names and addresses of the corporation's officers.
   iv.  The  contractor's  OR  SUBCONTRACTOR'S tax identification number,
 unemployment insurance registration number,  and  workers'  compensation
 board [employee] EMPLOYER number.
   v.  Whether  the  contractor OR SUBCONTRACTOR has any outstanding wage
 assessments against it, pursuant to this article.
   vi. Whether the contractor OR SUBCONTRACTOR has  been  debarred  under
 New York or federal law within the last [ten] EIGHT years.
   vii.  Whether the contractor OR SUBCONTRACTOR has been debarred pursu-
 ant to the laws of any other state within the last [ten] EIGHT years.
   viii. Whether the contractor OR SUBCONTRACTOR has been finally  deter-
 mined  by  the  appropriate authority to have violated any labor laws or
 employment tax laws including, but not limited to,  the  requirement  to
 have  workers'  compensation  coverage, payment of workers' compensation
 premiums, deduction and payment of income taxes, payment of unemployment
 insurance contributions or payment of prevailing wage.
   ix. Whether the contractor OR SUBCONTRACTOR has  been  finally  deter-
 mined  by the appropriate authority to have violated any laws establish-
 ing workplace safety standards including the federal Occupational Safety
 and Health Act.
   x. Whether or not the contractor OR SUBCONTRACTOR is associated, or  a
 signatory  to,  an  apprenticeship program under article twenty-three of
 this chapter. If so, the apprenticeship program shall be provided by the
 contractor OR SUBCONTRACTOR.
   xi. Whether or not the contractor OR SUBCONTRACTOR is  a  minority  or
 women-owned  business  enterprise  pursuant to the provisions of article
 fifteen-A of the executive law.
   b. At the time of registration, and upon request,  the  contractor  OR
 SUBCONTRACTOR shall submit to the commissioner documentation demonstrat-
 ing  that  the  contractor  OR  SUBCONTRACTOR  has workers' compensation
 insurance coverage for all workers as required by law, including any and
 all declarations and information pages  related  to  such  policy  which
 shall  be  electronically  accessible  and  searchable  to  the  public,
 provided however, that in no  event  shall  a  worker's  name  or  other
 personal  identifying  information  be  included in such database.  This
 information shall be  made  readily  available  to  the  public  by  the
 [bureau]  COMMISSIONER  within  forty-eight  hours of the initial public
 request.
 A. 984                              3
 
   3. The contractor OR SUBCONTRACTOR shall pay a  non-refundable  regis-
 tration  fee  of  two hundred dollars to the commissioner which shall be
 paid to the general fund. The commissioner, through  regulations,  shall
 reduce  the  registration  fee  associated  with minority or women-owned
 business  enterprises  in order to promote the use of such businesses on
 covered projects.
   4. Unless[, following notice and a hearing, the  bureau]  THE  COMMIS-
 SIONER  determines a contractor OR SUBCONTRACTOR unfit to be registered,
 the commissioner shall  issue  a  certificate  of  registration  to  the
 contractor OR SUBCONTRACTOR upon receipt of the fee, form and documenta-
 tion required by this section. A registration certificate shall be valid
 for  two calendar years from the date of registration. Registrations may
 be renewed not less than [thirty] NINETY days before the expiration date
 of  the  immediately  preceding  registration.  The  commissioner  shall
 promulgate  regulations to determine under what circumstances a contrac-
 tor OR SUBCONTRACTOR would be unfit to be registered  pursuant  to  this
 section; provided that a contractor OR SUBCONTRACTOR shall not be deter-
 mined  to  be  unfit  solely  because  a contractor OR SUBCONTRACTOR was
 debarred within the last [ten] EIGHT years, unless  such  contractor  OR
 SUBCONTRACTOR  is  currently debarred or ineligible pursuant to subdivi-
 sion three of section two hundred twenty-b of this  article  or  section
 one  hundred  forty-one-b  of  the  workers'  compensation  law  OR SUCH
 CONTRACTOR OR SUBCONTRACTOR IS SUBJECT  TO  A  FINAL  ADMINISTRATIVE  OR
 COURT  ORDER FOR VIOLATION OF STATE OR FEDERAL PREVAILING WAGE LAW WHICH
 HAS NOT BEEN FULLY SATISFIED, PROVIDED FURTHER THAT  A  CONTRACTOR  THAT
 HAS MADE PAYMENT FOR UNPAID WAGES ON BEHALF OF A SUBCONTRACTOR SHALL NOT
 BE  DETERMINED  UNFIT  SOLELY AS A RESULT OF ACTIONS OF A SUBCONTRACTOR.
 [The notice to a contractor initially determined by the commissioner  to
 be  unfit  based  upon the registration application shall be in writing,
 shall not be conclusory, and shall state the factual  basis  upon  which
 the  determination  is  based]  THE  COMMISSIONER SHALL, BEFORE MAKING A
 DETERMINATION OF UNFITNESS, NOTIFY THE CONTRACTOR  OR  SUBCONTRACTOR  IN
 WRITING  OF  THE  REASONS FOR SUCH PROPOSED DETERMINATION AND AFFORD THE
 CONTRACTOR OR SUBCONTRACTOR AN OPPORTUNITY TO CURE OR BE HEARD PRIOR  TO
 THE  DETERMINATION.  SUCH  NOTICE SHALL NOTIFY THE CONTRACTOR OR SUBCON-
 TRACTOR THAT A REQUEST FOR A HEARING MUST BE  MADE  WITHIN  THIRTY  DAYS
 AFTER  ISSUANCE  OF  SUCH  NOTIFICATION. IF A HEARING IS REQUESTED, SUCH
 HEARING SHALL BE HELD AT SUCH TIME AND PLACE AS THE  COMMISSIONER  SHALL
 PRESCRIBE.  IF  THE  CONTRACTOR OR SUBCONTRACTOR FAILS TO MAKE A WRITTEN
 REQUEST FOR A HEARING WITHIN THIRTY DAYS AFTER ISSUANCE OF SUCH  NOTIFI-
 CATION,  THEN  THE  NOTIFICATION OF DETERMINATION SHALL BECOME THE FINAL
 DETERMINATION OF THE COMMISSIONER. Any documents, reports,  or  informa-
 tion  that  form a basis for such determination shall be provided to the
 contractor OR SUBCONTRACTOR no less than ten days  before  the  hearing.
 For purposes of this subdivision, the term "unfit" shall mean a contrac-
 tor  OR  SUBCONTRACTOR  who  the commissioner determines to be unable to
 lawfully adhere to contractual obligations of this article and responsi-
 bilities including prevailing wage requirements pursuant to  this  arti-
 cle.  Such determination shall be based on a clearly documented history,
 official record of past dealings, or a present demonstrable inability to
 lawfully adhere to such obligations and responsibilities.
   5. IF THE REGISTRATION OF A CONTRACTOR OR SUBCONTRACTOR  LAPSES  WHILE
 PERFORMING  CONTRACTED  WORK  ON  A  COVERED PROJECT, THAT CONTRACTOR OR
 SUBCONTRACTOR SHALL NOT BE PROHIBITED  FROM  COMPLETING  ITS  CONTRACTED
 WORK  ON SUCH COVERED PROJECT. FOR A CONTRACTOR OR SUBCONTRACTOR WHO HAS
 BEEN DETERMINED UNFIT WHILE PERFORMING  CONTRACTED  WORK  ON  A  COVERED
 A. 984                              4
 
 PROJECT  AT THE TIME OF SUCH DETERMINATION, THEN THE CONTINUATION OF ITS
 CONTRACTED WORK SHALL ONLY CONTINUE IF A MONITOR IS APPOINTED TO OVERSEE
 THE WORK COMPLETED AT THE SOLE EXPENSE OF SUCH CONTRACTOR OR SUBCONTRAC-
 TOR.    NOTHING  HEREIN SHALL PREVENT A CONTRACTOR OR SUBCONTRACTOR FROM
 FULFILLING CONTRACTUAL OBLIGATIONS SOLELY BASED ON RECEIVING A NOTICE OF
 PROPOSED DETERMINATION OF UNFITNESS. SUCH MONITOR MUST  BE  APPROVED  BY
 THE COMMISSIONER.
   6.  No contractor shall bid on a contract for public work unless [they
 and all subcontractors listed in the bid, in addition to any subcontrac-
 tors associated with wage and/or fringe benefit payments to employees on
 the public work project, are] SUCH CONTRACTOR IS registered pursuant  to
 this  section.  IN  THE CASE OF A COVERED PROJECT SUBJECT TO SECTION TWO
 HUNDRED TWENTY-FOUR-A OR TWO HUNDRED TWENTY-FOUR-D OF THIS  ARTICLE,  OR
 OTHER  PROJECTS  THAT  ARE  PRIVATELY OWNED AND SUBJECT TO PROVISIONS OF
 THIS ARTICLE, CONTRACTORS MUST REGISTER PRIOR TO COMMENCING ANY WORK  ON
 A  COVERED PROJECT.  SUBCONTRACTORS MUST BE REGISTERED PRIOR TO COMMENC-
 ING ANY WORK ON A COVERED PROJECT. Further, each contractor must  submit
 their certificate of registration [as well as all certificates of regis-
 tration  for  any  and all subcontractors for such contract] at the time
 the bid is made.  Applications for registration shall not be accepted as
 a substitute for a certificate of registration for the purposes of  this
 section.    [For  covered projects performed under private contract, the
 owner or developer of such project must ensure that any contractor which
 it hires, or subcontractor that  is  hired,  to  perform  work  on  such
 project is registered pursuant to this section.
   6.]  7. FOR COVERED PROJECTS AS DEFINED IN SECTION TWO HUNDRED TWENTY-
 FOUR-A OR TWO HUNDRED TWENTY-FOUR-D OF THIS ARTICLE  OR  OTHER  PROJECTS
 THAT  ARE PRIVATELY OWNED AND SUBJECT TO PROVISIONS OF THIS ARTICLE, THE
 OWNER OR DEVELOPER OF SUCH COVERED PROJECT MUST ENSURE THAT ANY CONTRAC-
 TOR THAT IS HIRED, OR SUBCONTRACTOR THAT IS HIRED, TO  PERFORM  WORK  ON
 SUCH  PROJECT  IS  REGISTERED  PURSUANT  TO  THIS  SECTION PRIOR TO THAT
 CONTRACTOR OR SUBCONTRACTOR COMMENCING WORK ON THE COVERED  PROJECT  FOR
 WHICH IT WAS CONTRACTED.
   8. a. A contractor who bids on a contract for public work knowing that
 it  is not registered, or [submits a bid with] ALLOWS a subcontractor TO
 COMMENCE WORK ON A COVERED PROJECT that it knows or should have known is
 not registered pursuant to subdivision [five] SIX of this section shall,
 after notice and a hearing, be subject to a civil penalty of up  to  one
 thousand   dollars.    For  covered  projects  performed  under  private
 contract, AS DEFINED IN SECTION TWO HUNDRED TWENTY-FOUR-A OR TWO HUNDRED
 TWENTY-FOUR-D OF THIS ARTICLE, OR FOR OTHER PROJECTS THAT ARE  PRIVATELY
 OWNED  AND SUBJECT TO THE PROVISIONS OF THIS ARTICLE, an owner or devel-
 oper who commences work with a contractor or subcontractor that it knows
 or should have known is not registered pursuant  to  subdivision  [five]
 SIX  of  this  section  shall, after notice and hearing, be subject to a
 civil penalty of up to one thousand dollars. A contractor OR SUBCONTRAC-
 TOR who commences work on a covered  project  knowing  that  it  is  not
 registered  or  contracts  with  a subcontractor that it knows or should
 have known is not registered for work on a covered project shall,  after
 notice  and  hearing be subject to a civil penalty of up to one thousand
 dollars. [Any subcontractor who commences work on  any  covered  project
 knowing  that  it  is not registered shall, after notice and hearing, be
 subject to a civil penalty of up to one thousand dollars.]
   b. The commissioner may revoke or suspend a registration if a contrac-
 tor or subcontractor has been finally determined to be in  violation  of
 the  prevailing wage requirements of this article, PROVIDED HOWEVER THAT
 A. 984                              5
 
 SUCH CONTRACTOR OR SUBCONTRACTOR SHALL BE AFFORDED A  HEARING  PRIOR  TO
 ANY REVOCATION OR SUSPENSION.
   c.  Nothing  in  this section shall be construed to limit or supersede
 the authority of any state or municipal entity to enforce existing labor
 laws, safety standards, regulations, codes or any  other  existing  laws
 relative to public work.
   d.  A registration pursuant to this section is not necessary for a bid
 or work on a contract for public work and  penalties  pursuant  to  this
 section  shall  not apply when a state of emergency is declared pursuant
 to section twenty-four of the executive law, when the governor  declares
 a  disaster  emergency pursuant to section twenty-eight of the executive
 law, or when the President issues a major disaster or emergency declara-
 tion and such work arises from or is in connection with  the  actual  or
 impending  declared  emergency  or  disaster or pursuant to an emergency
 construction contract, or other contract entered into due to  an  urgent
 and  unexpected  event where public safety or the conservation of public
 resources is at risk, as authorized by law, including but not limited to
 the public buildings law, the state finance law, the  general  municipal
 law, or the public authorities law.
   §  2. Subdivisions 7 and 8 of section 220-i of the labor law, as added
 by a chapter of the laws of 2022 amending  the  labor  law  relating  to
 establishing  a  registration  system for contractors and subcontractors
 engaged in public work and covered projects in order to  better  enforce
 existing  labor  laws  and  regulations in the public works industry, as
 proposed in legislative bills numbers  S.  5994-C  and  A.  1338-C,  are
 amended to read as follows:
   [7.]  9. The [department] COMMISSIONER shall establish and maintain an
 online system  to  make  available  all  registrations  and  disclosures
 required  by this section, EXCEPT FOR ANY PERSONALLY IDENTIFIABLE INFOR-
 MATION, INCLUDING HOME ADDRESS AND PERCENTAGES OF OWNERSHIP INTEREST  IN
 PRIVATELY HELD ENTITIES.
   [8.]  10.  The  [department]  COMMISSIONER shall prescribe regulations
 necessary to carry out  the  provisions  of  this  section  [within  one
 hundred eighty days after its effective date].
   § 3. Section 2 of a chapter of the laws of 2022 amending the labor law
 relating  to  establishing  a  registration  system  for contractors and
 subcontractors engaged in public work and covered projects in  order  to
 better  enforce  existing labor laws and regulations in the public works
 industry, as proposed in legislative bills  numbers  S.  5994-C  and  A.
 1338-C, is amended to read as follows:
   § 2. (A) This act shall take effect immediately, provided however, (B)
 subdivisions  one through six of section 220-i of the labor law as added
 by section one of this act shall take effect [one year] TWO YEARS  after
 such date.
   § 4. This act shall take effect immediately; provided however that the
 provisions of section two of this act shall take effect on the same date
 and  in  the same manner as subdivision (a) of section 2 of a chapter of
 the laws of 2022 amending the  labor  law  relating  to  establishing  a
 registration system for contractors and subcontractors engaged in public
 work and covered projects in order to better enforce existing labor laws
 and regulations in the public works industry, as proposed in legislative
 bills  numbers  S.  5994-C and A. 1338-C, takes effect; provided further
 that the provisions of section one of this act shall take effect on  the
 same date and in the same manner as subdivision (b) of section 2 of such
 chapter of the laws of 2022, takes effect.