S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6708
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 10, 2025
                                ___________
 
 Introduced  by M. of A. BRONSON -- read once and referred to the Commit-
   tee on Labor
 
 AN ACT to amend the labor law, in relation to prevailing  wage  require-
   ments  applicable  to  construction  projects  performed under private
   contract; and to repeal section 224-c of the labor law, in relation to
   eliminating the public subsidiary board

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section  224-a of the labor law, as added by section 1 of
 part FFF of chapter 58 of the laws of 2020, paragraphs c and d of subdi-
 vision 2 as amended and paragraph e of subdivision 2 as added by section
 1 of part R and paragraphs f and g of subdivision 3 as amended and para-
 graph h of subdivision 3 as added by section 2 of part U of  chapter  56
 of  the  laws  of  2024,  and paragraph b of subdivision 4 as amended by
 section 3 of part AA of chapter 56 of the laws of 2021,  is  amended  to
 read as follows:
   §  224-a.  Prevailing  wage  requirements  applicable  to construction
 projects performed under private contract. 1. Subject to the  provisions
 of this section, each "covered project" as defined in this section shall
 be  subject  to  prevailing wage requirements in accordance with section
 two hundred twenty and two hundred twenty-b of this article. A  "covered
 project"  shall mean construction work done under contract which is paid
 for in whole or in part out of public funds as such term is  defined  in
 this section where:
   A.  the  amount of all such public funds, when aggregated, is at least
 [thirty] TWENTY percent of the total construction  [project]  costs  and
 where  such  [project]  costs  are  over five million dollars [except as
 provided for by section two hundred twenty-four-c of this article]; OR
   B. THE AMOUNT OF SUCH PUBLIC FUNDS RECEIVED PURSUANT TO PARAGRAPH A OF
 SUBDIVISION TWO OF THIS SECTION IS AT LEAST THREE MILLION DOLLARS; OR

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10847-01-5
 A. 6708                             2
              

 
   C. THE AMOUNT OF ALL SUCH PUBLIC FUNDS, WHEN AGGREGATED, IS  AT  LEAST
 FIVE MILLION DOLLARS.
   2.  For purposes of this section, "paid for in whole or in part out of
 public funds" shall mean any of the following:
   a. The payment of money, by a public entity, or a third  party  acting
 on  behalf  of and for the benefit of a public entity, directly to or on
 behalf of the contractor, subcontractor, developer or owner that is  not
 subject to repayment;
   b.  The  savings  achieved  from fees, rents, interest rates, or other
 loan costs, or insurance costs that are lower than  market  rate  costs;
 savings  from  reduced taxes as a result of tax credits, tax abatements,
 tax exemptions or tax increment financing; savings from payments in lieu
 of taxes; and any other savings from reduced, waived, or forgiven  costs
 that  would  have  otherwise been at a higher or market rate but for the
 involvement of the public entity;
   c. Money loaned by the public entity that is to be repaid on a contin-
 gent basis;
   d. Credits that are applied by the public entity against repayment  of
 obligations to the public entity; or
   e. Benefits under section four hundred sixty-seven-m of the real prop-
 erty tax law.
   3.  For purposes of this section, "paid for in whole or in part out of
 public funds" shall not include:
   a. Benefits under section four hundred twenty-one-a of the real  prop-
 erty tax law;
   b.  [Funds that are not provided primarily to promote, incentivize, or
 ensure that construction work is performed,  which  would  otherwise  be
 captured in subdivision two of this section;
   c.]  Funds  used to incentivize or ensure the development of a compre-
 hensive sewage system, including connection to existing sewer  lines  or
 creation  of new sewage lines or sewer capacity, provided, however, that
 such work shall be  deemed  to  be  a  public  work  covered  under  the
 provisions of this article;
   [d.  tax  benefits  provided for projects the length or value of which
 are not able to be calculated at the time the work is to be performed;
   e.  tax benefits related to brownfield remediation or brownfield rede-
 velopment pursuant to section twenty-one, twenty-two, one hundred eight-
 y-seven-g or one hundred eighty-seven-h  of  the  tax  law,  subdivision
 seventeen  or  eighteen  of  section  two  hundred ten-B of the tax law,
 subsection (dd) or (ee) of section six hundred six of the  tax  law,  or
 subdivision (u) or (v) of section fifteen hundred eleven of the tax law;
   f.]  C.  funds provided pursuant to subdivision three of section twen-
 ty-eight hundred fifty-three of the education law; AND
   [g. any other public monies, credits, savings or loans, determined  by
 the public subsidy board created in section two hundred twenty-four-c of
 this article as exempt from this definition; and
   h.]  D.  benefits under section four hundred eighty-five-x of the real
 property tax law.
   4. For purposes of this section "covered project"  shall  not  include
 any of the following:
   a. Construction work on one or two family dwellings where the property
 is  the  owner's  primary  residence,  or construction work performed on
 property where the owner of the property owns no more than four dwelling
 units;
   b. Construction work performed under a contract with a  not-for-profit
 corporation  as defined in section one hundred two of the not-for-profit
 A. 6708                             3
 
 corporation law, other than a not-for-profit corporation  formed  exclu-
 sively  for  the  purpose  of  holding  title to property and collecting
 income thereof or any public entity as defined in  this  section,  where
 the not-for-profit corporation has gross annual revenue and support less
 than five million dollars;
   c.  Construction  work performed on a multiple residence and/or ancil-
 lary amenities or installations that is wholly privately owned in any of
 the following circumstances [except  as  provided  for  by  section  two
 hundred twenty-four-c of this article]:
   (i)  where  no  less than twenty-five percent of the residential units
 are affordable and shall be retained subject to an anticipated regulato-
 ry agreement with a local, state, or federal governmental entity,  or  a
 not-for-profit entity with an anticipated formal agreement with a local,
 state, or federal governmental entity for purposes of providing afforda-
 ble  housing  in  a given locality or region provided that the period of
 affordability  for  a  residential  unit  deemed  affordable  under  the
 provisions  of  this  paragraph  shall be for no less than fifteen years
 from the date of construction; or
   (ii) where no less than thirty-five percent of the  residential  units
 involves  the  provision  of  supportive housing services for vulnerable
 populations provided that such units are subject to an anticipated regu-
 latory agreement with a local, state, or federal  governmental  entity[;
 or
   (iii)  any newly created programs for affordable or subsidized housing
 as determined by the public subsidy board  established  by  section  two
 hundred twenty-four-c of this article].
   d.  Construction work performed on a manufactured home park as defined
 in paragraph three of subdivision a of section two hundred  thirty-three
 of  the real property law where the manufactured home park is subject to
 a regulatory agreement with a  local,  state,  or  federal  governmental
 entity for no less than fifteen years;
   e.  Construction work performed under a pre-hire collective bargaining
 agreement between an owner or contractor and a bona  fide  building  and
 construction  trade  labor  organization which has established itself as
 the collective  bargaining  representative  for  all  persons  who  will
 perform work on such a project, and which provides that only contractors
 and  subcontractors  who  sign a pre-negotiated agreement with the labor
 organization can perform work on such a project,  or  construction  work
 performed  under a [labor peace agreement,] project labor agreement[, or
 any other construction work performed under  an  enforceable  agreement]
 between an owner or contractor and a bona fide building and construction
 trade labor organization;
   f.   [Construction  work  performed  on  projects  funded  by  section
 sixteen-n of the urban development corporation act or the downtown revi-
 talization initiative;
   g. Construction work and engineering and consulting services performed
 in connection with the installation of a renewable energy system, renew-
 able heating or cooling system, or energy storage system, with a capaci-
 ty equal to or under five megawatts alternating current;
   h. Construction work performed on supermarket retail  space  built  or
 renovated  with  tax incentives provided under the food retail expansion
 to support health (FRESH) program through the New York  city  industrial
 development agency;
   i.] Construction work performed for interior fit-outs and improvements
 under  ten  thousand  square  feet  through  small  business  incubation
 A. 6708                             4
 
 programs operated by the New York city economic development corporation;
 or
   [j.  Construction  work  on  space  to be used as a school under sixty
 thousand square feet, pursuant to a lease from a private  owner  to  the
 New  York  city  department  of  education  and  the school construction
 authority; or
   k.] G. Construction work performed on projects that received tax bene-
 fits related to historic rehabilitation pursuant to subdivision  twenty-
 six of section two hundred ten-B of the tax law, subsection (oo) or (pp)
 of section six hundred six of the tax law, or subdivision (y) of section
 fifteen hundred eleven of the tax law.
   5.  For  purposes  of this section, "public entity" shall include, but
 shall not be limited to, the state, a local development  corporation  as
 defined  in  subdivision  eight  of  section eighteen hundred one of the
 public authorities law or section fourteen hundred eleven  of  the  not-
 for-profit  corporation  law,  a  municipal  corporation  as  defined in
 section one hundred nineteen-n of the general municipal law,  an  indus-
 trial  development  agency  formed pursuant to article eighteen-A of the
 general municipal  law  or  industrial  development  authorities  formed
 pursuant  to article eight of the public authorities law, and any state,
 local or interstate or international authorities as defined  in  section
 two  of  the public authorities law; and shall include any trust created
 by any such entities.
   6. [For purposes of this  section,  "construction"  means  work  which
 shall  be  as  defined by the public subsidy board to require payment of
 prevailing wage, and which may involve the employment of laborers, work-
 ers, or mechanics.
   7.] For purposes of this section and section two hundred twenty-four-b
 of this article, the "fiscal officer" shall be deemed to be the  commis-
 sioner.
   [8.]  7.  The  enforcement  of  any  construction  work deemed to be a
 covered project pursuant to this section, and  any  additional  require-
 ments,  shall  be  subject,  in  addition to this section, [only] to the
 requirements of sections two hundred twenty, two hundred  twenty-four-b,
 [two hundred twenty-four-c, and] two hundred twenty-b, TWO HUNDRED TWEN-
 TY-I,  AND TWO HUNDRED TWENTY-J of this article and within the jurisdic-
 tion of the fiscal officer; provided, however, nothing contained in this
 section shall be deemed to construe any  covered  project  as  otherwise
 being  considered  public  work  pursuant  to  this article; and further
 provided:
   a. The owner or developer of such covered project shall certify  under
 penalty  of  perjury  [within] NOT LESS THAN five days [of] PRIOR TO THE
 commencement of construction  work  whether  the  project  at  issue  is
 subject  to the provisions of this section through the use of a standard
 form developed by the fiscal officer.
   b. The owners or developers  of  a  property  who  are  undertaking  a
 project  under  private  contract,  may  seek  guidance from the [public
 subsidy board contained in section two  hundred  twenty-four-c  of  this
 article]  DEPARTMENT,  and  [such  board]  THE DEPARTMENT may [render an
 opinion] ISSUE A DETERMINATION as to whether or not  the  project  is  a
 covered  project  within the meaning of this article. [Any such determi-
 nation shall not be reviewable by the fiscal officer, nor  shall  it  be
 reviewable  by  the department pursuant to section two hundred twenty of
 this article.]
   c. The owner or developer of a covered project  shall  be  responsible
 for  retaining  original  payroll records in accordance with section two
 A. 6708                             5
 
 hundred twenty of this article for  a  period  of  six  years  from  the
 conclusion  of  such work. All payroll records maintained by an owner or
 developer pursuant to this section shall be  subject  to  inspection  on
 request of the fiscal officer. Such owner or developer may authorize the
 prime  contractor of the construction project to take responsibility for
 retaining and maintaining payroll records, but will be held jointly  and
 severally  liable  for  any  violations  of such contractor. All records
 obtained by the fiscal officer shall be subject to the Freedom of Infor-
 mation Law.
   d. (I) Each public entity providing any of the public funds listed  in
 subdivision  two  of  this section to an owner, developer, contractor or
 subcontractor of a project shall [identify] PROVIDE A CERTIFICATION,  ON
 A  FORM PROVIDED BY THE DEPARTMENT, TO BOTH THE DEPARTMENT AND RECIPIENT
 WHICH IDENTIFIES the nature and dollar value of such funds  and  whether
 any  such funds are excluded under subdivision three of this section and
 shall so notify the recipient of such funds of such determination and of
 their obligations under paragraph a of this  subdivision.  SUCH  CERTIF-
 ICATION  SHALL  BE FILED WITH THE DEPARTMENT WITHIN TWO DAYS OF THE DATE
 IN WHICH THE RECIPIENT AND PUBLIC ENTITY EXECUTED THE AGREEMENT FOR  THE
 ISSUANCE  OF  SUCH PUBLIC FUNDS. THE DEPARTMENT SHALL MAINTAIN A LIST OF
 ALL CERTIFICATIONS RECEIVED PURSUANT TO THIS PARAGRAPH, WHICH  SHALL  BE
 AVAILABLE  TO  THE  PUBLIC UPON REQUEST. THE DEPARTMENT IS AUTHORIZED TO
 REFER ANY FAILURE BY A PUBLIC ENTITY TO COMPLY WITH  THIS  PARAGRAPH  TO
 THE COMPTROLLER OR ATTORNEY GENERAL, OR BOTH, FOR FURTHER INVESTIGATION.
   (II) FOR PUBLIC FUNDS THAT PROVIDE THE RECIPIENT WITH A FUTURE BENEFIT
 OR INCENTIVES IN FUTURE YEARS, THE CERTIFICATION PROVIDED TO THE RECIPI-
 ENT  BY  THE  PUBLIC ENTITY SHALL IDENTIFY THE ESTIMATED FUTURE VALUE OF
 THE FUNDS AND THE METHODOLOGY USED BY THE PUBLIC ENTITY TO DETERMINE THE
 FUTURE VALUE. SUCH FUTURE VALUE SHALL NOT BE LESS THAN ANY  CALCULATIONS
 MADE  BY  THE RECIPIENT IN PUBLIC OR PRIVATE FINANCING DOCUMENTS RELATED
 TO THE PROJECT. THE DEPARTMENT,  UPON  INVESTIGATION,  MAY  REJECT  THIS
 ESTIMATION  AND CALCULATE A FUTURE VALUE IN ACCORDANCE WITH SUBPARAGRAPH
 (III) OF THIS PARAGRAPH.
   (III) WHERE THE PUBLIC ENTITY FAILS TO  PROVIDE  AN  ESTIMATED  FUTURE
 VALUE  OF  FUNDS BASED ON A REASONABLE METHODOLOGY, THE DEPARTMENT SHALL
 DETERMINE THE ESTIMATED FUTURE VALUE OF FUNDS BY APPLYING TO THE PRESENT
 VALUE OF THE FUNDS AN ANNUAL GROWTH OF NOT LESS THAN TWO PERCENT  AND  A
 DISCOUNTED PRESENT VALUE RATE OF NOT MORE THAN SEVEN PERCENT.
   (IV)  THE DEPARTMENT SHALL ISSUE GUIDANCE ON THIS SUBDIVISION, INCLUD-
 ING THE CERTIFICATION FORM AND FUTURE BENEFIT CALCULATIONS, WITHIN THIR-
 TY DAYS OF THE EFFECTIVE DATE OF THE CHAPTER OF THE LAWS OF TWO THOUSAND
 TWENTY-FIVE THAT AMENDED THIS PARAGRAPH.
   e. The fiscal officer may issue rules and  regulations  governing  the
 provisions  of this section. Violations of this section shall be grounds
 for determinations and orders pursuant to section two  hundred  twenty-b
 of this article.
   [9.]  8.  Each owner and developer subject to the requirements of this
 section shall comply with the  objectives  and  goals  of  minority  and
 women-owned  business  enterprises  pursuant to article fifteen-A of the
 executive law and service-disabled veteran-owned businesses pursuant  to
 article  [seventeen-B  of  the  executive  law]  THREE  OF THE VETERANS'
 SERVICES LAW. The department in consultation with the directors  of  the
 division  of  minority and women's business development and of the divi-
 sion of  service-disabled  veterans'  business  development  shall  make
 training  and  resources  available  to  assist minority and women-owned
 business enterprises and service-disabled veteran-owned business  enter-
 A. 6708                             6
 
 prises on covered projects achieve and maintain compliance with prevail-
 ing  wage  requirements.  The  department  shall  make such training and
 resources available online and shall  afford  minority  and  women-owned
 business  enterprises and service-disabled veteran-owned business enter-
 prises an opportunity to submit comments on such training.
   [10.] 9. a. The fiscal officer  shall  report  to  the  governor,  the
 temporary  president  of  the senate, and the speaker of the assembly by
 July first, two thousand twenty-two, and  annually  thereafter,  on  the
 participation  of  minority  and  women-owned  business  enterprises  in
 relation to covered projects and contracts for public  work  subject  to
 the  provisions  of  this section and section two hundred twenty of this
 article respectively as well as the diversity practices  of  contractors
 and  subcontractors  employing  laborers, workers, and mechanics on such
 projects.
   b. Such reports shall include aggregated data on the  utilization  and
 participation  of  minority  and  women-owned  business enterprises, the
 employment of minorities and women in construction-related jobs on  such
 projects,  and  the commitment of contractors and subcontractors on such
 projects to adopting practices and policies that promote diversity with-
 in the workforce. The reports  shall  also  examine  the  compliance  of
 contractors  and  subcontractors with other equal employment opportunity
 requirements and anti-discrimination laws,  in  addition  to  any  other
 employment practices deemed pertinent by the commissioner.
   c.  The  fiscal officer may require any owner or developer to disclose
 information on the participation of minority  and  women-owned  business
 enterprises  and  the diversity practices of contractors and subcontrac-
 tors involved in the performance of any covered project. It shall be the
 duty of the fiscal officer to consult and to share such  information  in
 order to effectuate the requirements of this section.
   [11.  If  construction  work  is  not  deemed to be a covered project,
 whether by virtue of an exclusion of such project under subdivision four
 of this section, or by virtue or not receiving sufficient  public  money
 to  be  deemed  "paid for in whole or in part out of public funds", such
 project shall not be subject to the requirements of sections two hundred
 twenty and two hundred twenty-b of this article.]
   § 2. Section 224-c of the labor law is REPEALED.
   § 3. This act shall take effect immediately.