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A00373 Summary:

BILL NOA00373A
 
SAME ASSAME AS S05475-A
 
SPONSORBronson
 
COSPNSRTaylor, Darling, Rozic, Cruz, Glick, Rosenthal L, Simone, Lavine, Bores, Gonzalez-Rojas, Seawright, Benedetto, Reyes, Weprin, Brabenec, Sillitti, Raga, Slater, Braunstein, Dinowitz, Durso, Zebrowski, Ardila, Steck, Ra, Burgos, Epstein, Rajkumar, Gibbs, Tapia, Hyndman, Berger, Lee, Burdick, Jacobson, Brown K, Bendett, Reilly, McDonough, Pheffer Amato
 
MLTSPNSR
 
Amd 220, Lab L
 
Ensures that construction and fabrication done off of a public work site for specific use only in a public work project be compensated at the prevailing wage rate.
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A00373 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A373A
 
SPONSOR: Bronson
  TITLE OF BILL: An act to amend the labor law, in relation to inclusion of certain off- site custom fabrication as public work for the purposes of payment of prevailing wage   PURPOSE: To ensure that construction and fabrication done off the public work site for specific use only in a public work project be compensated at the prevailing wage rate.   SUMMARY OF PROVISIONS: Section 1 states the legislative findings and intent. Section 2 adds a new. paragraph (f) to subdivision 3 of Section 220 of the Labor Law to provide that the prevailing wage law shall apply to the fabrication of exterior or interior wall panel systems, the fabrication of woodwork, cases, cabinets or counters and the fabrication of plumb- ing, heating, cooling, ventilation or exhaust duct systems, and mechan- ical insulation solely and specifically designed and engineered for installation in the construction, repair or renovation of a building which is the subject of a contract to which the state, a municipal corporation, a public benefit corporation or a commission appointed pursuant to law is a party. Further, the department of jurisdiction shall be required to report to the fiscal officer the intention to contract for custom, off-site fabrication of any materials on all contacts which may include the employment of laborers, workers, or mechanics in the application to the fiscal officer for the approval of such contract. The department of jurisdiction shall also have reporting requirements that the fiscal officer must make available to the public through its website Section 3 is the effective date.   JUSTIFICATION: The courts have ruled that prevailing wages for public work should be based on what governmental entity is requiring and contracting for said work. By adding custom fabrication to the prevailing wage law we are extending the protections of section 220 to skilled workers off the job site, ensuring that their wages are fair and equitable. It has become clear over the last several years that some unscrupulous contractors are circumventing the spirit and intent of prevailing wage law. Since prevailing wage also creates fair bidding mechanisms for union and nonunion workers, there should be an increase in the number of talented, skilled workers willing to ply their trade for public contracts in custom fabrication.   LEGISLATIVE HISTORY: 2021-2022: 5.8963 - Reported and Committed to Finance/A.8494-A Reported and Referred to Ways and Means   STATE AND LOCAL FISCAL IMPLICATIONS: None to the State.   EFFECTIVE DATE: This act shall take effect on the sixtieth day after it shall have become a law and shall apply only to those contracts put out to bid on or after such effective date.
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A00373 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         373--A
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                     January 6, 2023
                                       ___________
 
        Introduced  by M. of A. BRONSON -- read once and referred to the Commit-
          tee on Labor -- committee discharged, bill amended, ordered  reprinted
          as amended and recommitted to said committee
 
        AN  ACT to amend the labor law, in relation to inclusion of certain off-
          site custom fabrication as public work for the purposes of payment  of
          prevailing wage

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Legislative findings and intent. The legislature finds  and
     2  declares  that  the  prevailing wage law was established to provide fair
     3  and equitable working conditions, wages and supplementary  benefits  for
     4  persons employed on public works construction projects.
     5    The  legislature  further  finds  and  declares that there are growing
     6  number of instances where custom fabricated materials are fabricated off
     7  the public work job site either to meet the unique specifications of the
     8  project subject to a  public  work  contract  or  for  the  contractor's
     9  convenience  or to evade the wage requirements imposed by the prevailing
    10  wage law.
    11    The legislature further finds and declares that in many instances  the
    12  prevailing  wage is not paid to persons involved in off-site fabrication
    13  of materials which are used specifically for public  works  projects  to
    14  the detriment of the workers at the site and the local economy where the
    15  public work is situated.
    16    The  legislature  further  finds and declares that, in effect, various
    17  custom fabricated materials on local public works construction  projects
    18  are being entirely outsourced to workers at a location or locations away
    19  from the project site or in foreign jurisdictions, thereby intentionally
    20  evading the payment of the prevailing wage and benefit package by elimi-
    21  nating  the  employment  of  workers  at  the site of the project to the
    22  detriment of those workers and the local economy.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01720-03-3

        A. 373--A                           2
 
     1    It is the intent of the legislature that construction and  fabrication
     2  done  off  the  public  work  site  for specific use only in public work
     3  projects be compensated at the prevailing wage rate.
     4    §  2.  Subdivision  3  of  section  220 of the labor law is amended by
     5  adding a new paragraph (f) to read as follows:
     6    (f) (i) For the purposes of this subdivision  contractors  or  subcon-
     7  tractors engaged in custom fabrication shall not be regarded as material
     8  suppliers.  For the purposes of this subdivision, a legal day's work for
     9  which the prevailing rate of wages for the New York county in which  the
    10  public  works project is situated shall be paid to laborers, workers and
    11  mechanics shall include custom fabrication  regardless  of  whether  the
    12  custom  fabrication  occurs on-site, off-site or in another jurisdiction
    13  outside the state.  It shall be a condition of the  contract  concerning
    14  all such custom fabrication work that the contractor or employer awarded
    15  the public work contract and any subcontractor thereto shall covenant to
    16  pay  the on-site prevailing wage required for workers at the site of the
    17  public work project to those workers performing the custom  fabrication.
    18  Each  contractor  or  subcontractor who employs workers off-site for the
    19  custom fabrication work related to a public work project shall  maintain
    20  certified  payrolls  for  those  workers and provide such payrolls, with
    21  original certifications, to the department at least  once  every  thirty
    22  days.    For  the  purposes  of this subdivision the term "custom fabri-
    23  cation" shall include, but not be limited to, the fabrication of exteri-
    24  or or interior wall panel systems, the fabrication of  woodwork,  cases,
    25  cabinets  or counters and the fabrication of electrical, plumbing, heat-
    26  ing, cooling, ventilation or exhaust duct systems, and mechanical  insu-
    27  lation  solely and specifically designed and engineered for installation
    28  in the construction, repair or renovation of a  building  which  is  the
    29  subject  of  a  contract  to which the state, a municipal corporation, a
    30  public benefit corporation or a commission appointed pursuant to law  is
    31  a party.
    32    (ii) The department of jurisdiction shall be required to report to the
    33  fiscal  officer  the  intention  to contract for custom, off-site fabri-
    34  cation of any materials on all contracts which may include  the  employ-
    35  ment  of laborers, workers or mechanics in the application to the fiscal
    36  officer for the approval of such contract. The department  of  jurisdic-
    37  tion's  report  shall state the name and address of the off-site, custom
    38  fabricator, identify the custom  materials  that  are  being  fabricated
    39  off-site  and  the  quantity thereof, the estimated cost of the off-site
    40  fabrication, including the transportation of the materials to  the  site
    41  of the work and the estimated number of workers employed to complete the
    42  custom fabrication at the off-site location. Upon receipt of the depart-
    43  ment  of  jurisdiction's report, the fiscal officer shall make available
    44  said report to the public through its website.
    45    (iii) The fiscal officer shall produce an annual report on the econom-
    46  ic impact to the state businesses and residents due to  off-site  fabri-
    47  cation.
    48    §  3.  This  act  shall take effect on the sixtieth day after it shall
    49  have become a law and shall apply only to those contracts put out to bid
    50  on or after such effective date.
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