Relates to requiring the use of project labor agreements for large scale construction projects under the state university construction fund; provides exceptions to such requirement; provides that the fund may require every contractor become party to a project labor agreement.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A3156
SPONSOR: Joyner
 
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:
The purpose of this bill is ensuring that when large scale construction
projects are undertaken by the State University Construction Fund, they
will be required to use a project labor agreement.
 
SUMMARY OF PROVISIONS:
Amend section 370 of the education law to define large scale
construction projects. Amend section 376 of the education law to add a
new subdivision that will require the use of a project labor agreement
for all large-scale construction projects. Exceptions can be granted in
special cases. The act will go into effect on the 90th day after it
shall have become law and shall apply to all contracts entered, renewed,
modified or amended on or after such a date.
 
JUSTIFICATION:
The State University of New York (SUNY) system has educated generations
of New York residents, helping them gain the knowledge they need to
secure good jobs and create strong careers for themselves. Historically,
the SUNY system has also fostered the creation of thousands of jobs for
local construction workers as a part of building and maintaining campus-
es throughout the state. Through the State's commitment and collective
work of construction workers and contractors, New York has been able to
create a public higher education system with state-of-the-art facilities
and top-quality education. This partnership has allowed countless New
York construction workers to create strong careers in the industry and
continue supporting the tax base that funds the university system for
our state.
Unfortunately, in recent years there's been a change 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're increasingly being awarded to
out-of-state companies that lack necessary NYS-based workers' compen-
sation and insurance policies, and have histories of unsafe building
practices, wage theft, and other labor issues. There's also been an
influx in out-of-state workers being used on these jobs, barring New
York's construction workers from being able to secure these prevailing
wage jobs in their communities.
Implementing a statewide project labor agreement (PLA) for SUNY-funded
construction projects of $3 million or more will address these issues
and restore accountability to the public university procurement process.
PLAs support the use of New York-based responsible contractors and
create good jobs for local workers. Data shows PLAs also lead to cost-
savings and more efficient development - further ensuring SUNY responsi-
bly uses taxpayer dollars. Additionally, implementing 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 retirement security -
vital opportunities for New Yorkers
 
PRIOR LEGISLATIVE HISTORY:
None
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
TBD
 
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.
STATE OF NEW YORK
________________________________________________________________________
3156
2023-2024 Regular Sessions
IN ASSEMBLY
February 2, 2023
___________
Introduced by M. of A. JOYNER -- read once and referred to the Committee
on Higher Education
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
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 370 of the education law is amended by adding a new
2 subdivision 6-a to read as follows:
3 6-a. "Large-scale construction project" shall mean a construction
4 project performed under the approved master plan of the state universi-
5 ty; with respect to university-related economic development projects
6 authorized by law pursuant to section three hundred seventy-two-a of
7 this article involving the construction, acquisition, reconstruction,
8 rehabilitation or improvement of academic buildings, dormitories and
9 other facilities for which the total estimated cost of the construction
10 contract or contracts to the fund is five million dollars or more.
11 § 2. Section 376 of the education law is amended by adding a new
12 subdivision 11 to read as follows:
13 11. (a) Each contract involving the awarding of a large-scale
14 construction project shall require the use of a project labor agreement,
15 as defined in subdivision one of section two hundred twenty-two of the
16 labor law, for all contractors and subcontractors on the project, unless
17 an exception applies as set forth in paragraph (b) of this subdivision.
18 (b) The fund may grant an exception from the requirements of this
19 subdivision by providing a specific written explanation of why at least
20 one of the following conditions exists with respect to the particular
21 contract:
22 (i) requiring a project labor agreement on the project would not
23 advance the fund's interests in achieving economy and efficiency in fund
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD06964-01-3
A. 3156 2
1 procurement. The exception shall be based on one or more of the follow-
2 ing factors:
3 (A) the project is of short duration and lacks operational complexity;
4 (B) the project will involve only one craft or trade;
5 (C) the project will involve specialized construction work that is
6 available from only a limited number of contractors or subcontractors;
7 or
8 (D) the fund's need for the project is of such an unusual and compel-
9 ling urgency that a project labor agreement would be impracticable;
10 (ii) market research indicates that requiring a project labor agree-
11 ment on the project would substantially reduce the number of potential
12 offerors to such a degree that adequate competition at a fair and
13 reasonable price could not be achieved, however, a likely reduction in
14 the number of potential offerors is not, by itself, sufficient to except
15 a contract from coverage under this section unless it is coupled with
16 the finding that the reduction would not allow for adequate competition
17 at a fair and reasonable price; or
18 (iii) requiring a project labor agreement on the project would other-
19 wise be inconsistent with statutes, rules, or regulations applicable to
20 the fund.
21 (iv) when determining whether the exception in subparagraph (ii) of
22 this paragraph applies, the fund shall consider current market condi-
23 tions and the extent to which price fluctuations may be attributable to
24 factors other than the requirement for a project labor agreement such as
25 costs of labor or materials, or supply chain costs. The fund may rely on
26 price analysis conducted on recent competitive proposals for
27 construction projects of a similar size and scope when evaluating an
28 exception.
29 (v) any exception to the application of this subdivision shall be
30 granted for a particular project contract by the solicitation date.
31 (c) An agency may require the use of a project labor agreement on
32 construction projects where the total cost to the fund is less than that
33 for a large-scale construction project, if appropriate.
34 (d) The fund, if appropriate, may require that every contractor and
35 subcontractor engaged in construction on the project agree, for that
36 project, to negotiate or become a party to a project labor agreement
37 with one or more labor organizations if the fund decides that the use of
38 project labor agreements will:
39 (i) advance the fund's interest in achieving economy and efficiency in
40 procurement, producing labor-management stability, and ensuring compli-
41 ance with laws and regulations governing safety and health, equal
42 employment opportunity, labor and employment standards, and other
43 matters; and
44 (ii) be consistent with law.
45 (e) The fund may consider the following factors in deciding whether
46 the use of a project labor agreement is appropriate for a construction
47 project where the total cost to the fund is less than that for a large-
48 scale construction project:
49 (i) the project will require multiple construction contractors and/or
50 subcontractors employing workers in multiple crafts or trades;
51 (ii) there is a shortage of skilled labor in the region in which the
52 construction project will be sited;
53 (iii) completion of the project will require an extended period of
54 time;
A. 3156 3
1 (iv) project labor agreements have been used on comparable projects
2 undertaken by federal, state, municipal, or private entities in the
3 geographic area of the project;
4 (v) a project labor agreement will promote the fund's long term
5 program interests, such as facilitating the training of a skilled work-
6 force to meet the agency's future construction needs; and
7 (vi) any other factors that the fund determines are appropriate.
8 § 3. This act shall take effect on the ninetieth day after it shall
9 have become a law and shall apply to all contracts entered into,
10 renewed, modified or amended on or after such date.