BILL NUMBER: S6050

SPONSOR: MAYER
 
TITLE OF BILL:

An act to amend the education law, in relation to requiring the use of
project labor agreements for large scale construction projects under the
state university construction fund

 
PURPOSE OR GENERAL IDEA OF BILL:

To ensure that large scale construction projects undertaken by the State
University Construction Fund are required to use a project labor agree-
ment.

 
SUMMARY OF PROVISIONS:

Section 1 amends section 370 of the education law to add a definition of
"large-scale construction project" to mean a construction project
performed under the approved master plan of the state university for
which the total estimated cost of the construction contract or contracts
to the fund is three million dollars or more.
              

Section 2 amends section 376 of the education law by adding a new subdi-
vision 11 to require each contract involving the awarding of a large-
scale construction project to require the use of a project labor agree-
ment (PLA), for all contractors and subcontractors on the project. It
then allows the fund to grant an exception from the PLA requirements by
providing a written explanation of why it would not be consistent with
222(a)(2) of the labor law or state competitive bidding laws, and why
requiring a PLA is inconsistent with statutes, rules, or regulations
applicable to the state university construction fund. Any exception to
the PLA requirements must be granted for a particular project contract
by the solicitation date. Next, it allows an agency to require the use
of a PLA on construction projects less than three million dollars if it
is consistent with 222(a)(2) of the labor law. Lastly, it allows the
state university construction fund to require that every contractor and
subcontractor engaged in construction on the project agree, for that
project, to negotiate or become a party to a PLA where the fund decides
a project labor agreement is consistent with 222(a)(2) of the labor law
and state competitive bidding laws.

Section 3 sets forth the effective date.

 
JUSTIFICATION:

The State University of New York (SUNY) system is one of the largest
public higher education institutions in the United States,(1) with an
enrollment that exceeds 400,000. The State University Construction Fund,
established in 1962 as a public benefit corporation, acts as an agent
for SUNY to design, acquire, construct, and improve SUNY's state-operat-
ed building and infrastructure assets across its campuses.(2)

Since its inception, the fund has fostered the creation of thousands of
jobs for local construction workers as a part of building and maintain-
ing campuses throughout the state. Through the State's commitment and
the collective work of construction workers and contractors, New York
has created a public higher education system with state-of-the-art
facilities and top-quality education.
However, in recent years there has been a shift in how SUNY builds and
maintains university facilities and campuses. While these contracts use
public, taxpayer dollars to finance development and come with prevailing
wage requirements, they are increasingly being awarded to out-of-state
companies that lack necessary NYS-based workers' compensation and insur-
ance policies, and who have histories of unsafe building practices, wage
theft, and other labor issues. Moreover, there's been an increase in
out-of-state workers being used on these projects, barring New York's
construction workers from being able to secure these prevailing wage
jobs in their communities.

This legislation addresses these issues by requiring a project labor
agreement (PLA) for SUNY-funded construction projects of $3 million or
more. PLA's are pre-hire collective bargaining agreements between a
contractor and a bona fide building and construction trade labor organ-
ization designating it as the representative for all persons who perform
work on a public work project.

PLAs support the use of New York-based responsible contractors and
create good jobs for local workers in the process. Data shows PLAs also
lead to cost savings and more efficient development-further ensuring tha
SUNY uses taxpayer dollars in a responsible manner.  Further, implement-
ing a PLA will allow Building Trades unions to offer more opportunities
for New Yorkers to join the unionized construction industry and create
lifelong careers with family sustaining wages, healthcare, and retire-
ment, security.

This legislation also allows an agency to require the use of a PLA on
SUNY-funded construction projects of less than $3 million, so long as it
is consistent with the labor law.

By requiring a PLA on large scale SUNY construction projects, this
legislation will restore accountability and bring effective labor stand-
ards to the public university procurement process.

 
PRIOR LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

To be determined.


 
EFFECTIVE DATE:
This act shall take effect on the ninetieth day after it shall have
become a law and shall apply to all contracts entered into, renewed,
modified or amended on or after such a date.
1 https://sucfsunv.edu/about/the-fund
2 1d.