Bill Text: NY S05868 | 2023-2024 | General Assembly | Amended


Bill Title: Relates to prevailing wage requirements applicable to brownfield remediation work performed under private contract as it relates to certain remediation activities, for sites that are seeking or have received a determination that the site is eligible for the tangible property credit component of the brownfield redevelopment tax credit, and the work is paid for in whole or in part by public funds.

Spectrum: Moderate Partisan Bill (Democrat 25-5)

Status: (Vetoed) 2024-12-21 - VETOED MEMO.132 [S05868 Detail]

Download: New_York-2023-S05868-Amended.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                         5868--B

                               2023-2024 Regular Sessions

                    IN SENATE

                                     March 20, 2023
                                       ___________

        Introduced  by  Sens.  HARCKHAM,  BAILEY,  BROUK,  CHU,  COMRIE, COONEY,
          FERNANDEZ, GONZALEZ, GOUNARDES, HINCHEY, HOYLMAN-SIGAL, JACKSON,  LIU,
          MATTERA,  MAY,  MAYER, PALUMBO, RAMOS, RIVERA, RYAN, SANDERS, SCARCEL-
          LA-SPANTON, SEPULVEDA, SKOUFIS, STAVISKY, WEBB, WEBER  --  read  twice
          and ordered printed, and when printed to be committed to the Committee
          on  Environmental Conservation -- reported favorably from said commit-
          tee and committed to the Committee on Finance -- committee discharged,
          bill amended, ordered reprinted as amended  and  recommitted  to  said
          committee  --  recommitted to the Committee on Environmental Conserva-
          tion in accordance with Senate Rule 6, sec. 8  --  reported  favorably
          from  said  committee  and  committed  to  the Committee on Finance --
          committee discharged, bill amended, ordered reprinted as  amended  and
          recommitted to said committee

        AN ACT to amend the environmental conservation law and the labor law, in
          relation  to  prevailing  wage  requirements  applicable to brownfield
          remediation work performed under private contract

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section 1. The closing paragraph of subdivision 1-a of section 27-1407
     2  of  the environmental conservation law, as added by section 3 of part BB
     3  of chapter 56 of the laws of 2015, is amended to read as follows:
     4    Sites are not eligible for tangible property tax credits if:  (a)  the
     5  contamination  from  ground water or soil vapor is solely emanating from
     6  property other than the site subject to the present application; or  (b)
     7  the  department  has  determined  that  the property has previously been
     8  remediated pursuant to titles nine, thirteen and fourteen of this  arti-
     9  cle,  title five of article fifty-six of this chapter and article twelve
    10  of the navigation law such  that  it  may  be  developed  for  its  then
    11  intended  use; or (c) not in compliance with section two hundred twenty-
    12  four-g of the labor law.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10107-10-4

        S. 5868--B                          2

     1    § 2. Paragraphs (c) and (d) of subdivision 8 of section 27-1407 of the
     2  environmental conservation law, as amended by section 3  of  part  A  of
     3  chapter  577 of the laws of 2004, are amended and a new paragraph (e) is
     4  added to read as follows:
     5    (c)  there  is  an  order providing for the investigation, removal, or
     6  remediation of contamination relating to the brownfield site against the
     7  person who is requesting participation; [or]
     8    (d) [The]  the  person  requesting  participation  is  subject  to  an
     9  outstanding claim as provided in subdivision four of this section[.]; or
    10    (e)  the  person requesting participation does not demonstrate compli-
    11  ance with section two hundred twenty-four-g of the labor law.
    12    § 3. Subdivision 5 of section 27-1409 of the  environmental  conserva-
    13  tion  law,  as amended by section 4 of part A of chapter 577 of the laws
    14  of 2004, is amended to read as follows:
    15    5. One authorizing the  department  to  terminate  a  brownfield  site
    16  cleanup  agreement  at any time during the implementation of such agree-
    17  ment if the applicant implementing such agreement fails to substantially
    18  comply  with  such  agreement's  terms  and  conditions,  including  the
    19  prevailing wage requirements of section two hundred twenty-four-g of the
    20  labor law;
    21    § 4. The labor law is amended by adding a new section 224-g to read as
    22  follows:
    23    § 224-g. Prevailing wage requirements applicable to brownfield remedi-
    24  ation   work  performed  under  private  contract.  1.  Subject  to  the
    25  provisions of this section, covered brownfield remediation work shall be
    26  subject to prevailing wage requirements in accordance with sections  two
    27  hundred twenty and two hundred twenty-b of this article as it relates to
    28  the  following  remediation  activities: (a) all construction activities
    29  including without limitation grading, contouring,  trenching,  grouting,
    30  capping, excavating, incinerating, thermally treating, chemically treat-
    31  ing,  biologically treating, constructing leachate collection and treat-
    32  ment systems or application of innovative technologies approved  by  the
    33  department;  (b)  interim  remedial measures; and (c) restoration of the
    34  environment.  Remediation activities which are as defined  in  paragraph
    35  (a), (b), (e), (g), or (h) of subdivision five of section 27-1405 of the
    36  environmental  conservation law  shall not be subject to prevailing wage
    37  requirements in accordance with this section.
    38    2. A project shall be deemed a "covered brownfield  remediation  work"
    39  where:  (a) the site is seeking or has received a determination that the
    40  site is eligible for the  tangible  property  credit  component  of  the
    41  brownfield  redevelopment  tax  credit  pursuant  to  paragraph three of
    42  subdivision (a) of section twenty-one of the tax law; and (b) where  the
    43  work  is  paid for in whole or in part by public funds, where the amount
    44  of all such public funds, when aggregated, is at least thirty percent of
    45  the total construction project costs and where such  project  costs  are
    46  over five million dollars.
    47    3. (a) For purposes of this section, "paid for in whole or in part out
    48  of public funds" shall mean any of the following:
    49    (i)  The payment of money, by a public entity, or a third party acting
    50  on behalf of and for the benefit of a public entity, directly to  or  on
    51  behalf  of the contractor, subcontractor, developer or owner that is not
    52  subject to repayment;
    53    (ii) The savings achieved from fees, rents, interest rates,  or  other
    54  loan  costs,  or  insurance costs that are lower than market rate costs;
    55  savings from reduced taxes as a result of tax credits,  tax  abatements,
    56  tax exemptions or tax increment financing; savings from payments in lieu

        S. 5868--B                          3

     1  of  taxes; and any other savings from reduced, waived, or forgiven costs
     2  that would have otherwise been at a higher or market rate except for the
     3  involvement of the public entity;
     4    (iii)  Money  loaned  by  the  public entity that is to be repaid on a
     5  contingent basis;
     6    (iv) Credits that are applied by the public entity  against  repayment
     7  of obligations to the public entity; or
     8    (v)  Benefits  under  section  four  hundred sixty-seven-m of the real
     9  property tax law.
    10    (b) For purposes of this section, "public entity" shall  include,  but
    11  shall  not  be limited to, the state, a local development corporation as
    12  defined in subdivision eight of section  eighteen  hundred  one  of  the
    13  public  authorities  law  or section fourteen hundred eleven of the not-
    14  for-profit corporation  law,  a  municipal  corporation  as  defined  in
    15  section  one  hundred nineteen-n of the general municipal law, an indus-
    16  trial development agency formed pursuant to article  eighteen-A  of  the
    17  general  municipal  law  or  industrial  development  authorities formed
    18  pursuant to article eight of the public authorities law, and any  state,
    19  local  or  interstate or international authorities as defined in section
    20  two of the public authorities law; and shall include any  trust  created
    21  by any such entities.
    22    4.  For purposes of this section "covered brownfield remediation work"
    23  shall not include the following: (a) Construction work performed under a
    24  pre-hire collective bargaining agreement between an owner or  contractor
    25  and a bona fide building and construction trade labor organization which
    26  has  established  itself as the collective bargaining representative for
    27  all persons who will perform work on such a project, and which  provides
    28  that  only  contractors  and  subcontractors  who  sign a pre-negotiated
    29  agreement with the  labor  organization  can  perform  work  on  such  a
    30  project,  or  construction work performed under a labor peace agreement,
    31  project labor agreement, or any other construction work performed  under
    32  an  enforceable agreement between an owner or contractor and a bona fide
    33  building and construction trade labor organization; or
    34    (b) an affordable housing project as defined  in  subdivision  twenty-
    35  nine of section 27-1405 of the environmental conservation law.
    36    5.  Upon  request of the commissioner, the department of environmental
    37  conservation   shall   provide   site   information,   including   total
    38  construction project costs and project costs, to the commissioner.
    39    6.  For purposes of this section, the "fiscal officer" shall be deemed
    40  to be the commissioner. The enforcement of any covered brownfield  reme-
    41  diation  work  pursuant to this section shall be subject to the require-
    42  ments of sections two hundred twenty, two hundred twenty-a, two  hundred
    43  twenty-b,  two  hundred  twenty-i, two hundred twenty-three, two hundred
    44  twenty-four-b, and two hundred twenty-seven of this chapter  and  within
    45  the  jurisdiction  of  the  fiscal  officer;  provided, however, nothing
    46  contained in this section shall be deemed to construe any covered brown-
    47  field remediation work as otherwise being considered public work  pursu-
    48  ant to this article.
    49    7.  The  fiscal  officer may issue rules and regulations governing the
    50  provisions of this section. Violations of this section shall be  grounds
    51  for  determinations  and orders pursuant to section two hundred twenty-b
    52  of this article.
    53    8. Each owner and  developer  subject  to  the  requirements  of  this
    54  section shall comply with the objectives and goals of certified minority
    55  and  women-owned  business  enterprises pursuant to article fifteen-A of
    56  the executive law and  certified  service-disabled  veteran-owned  busi-

        S. 5868--B                          4

     1  nesses  pursuant  to  article  three  of the veterans' services law. The
     2  department in consultation with the  commissioner  of  the  division  of
     3  minority  and women's business development and the director of the divi-
     4  sion  of  service-disabled  veterans'  business  development  shall make
     5  training and resources available  to  assist  minority  and  women-owned
     6  business  enterprises and service-disabled veteran-owned business enter-
     7  prises on covered brownfield remediation work to  achieve  and  maintain
     8  compliance  with prevailing wage requirements. The department shall make
     9  such training and resources available online and shall  afford  minority
    10  and  women-owned business enterprises and service-disabled veteran-owned
    11  business enterprises an opportunity to submit comments on such training.
    12    9. (a) The fiscal officer shall report to the governor, the  temporary
    13  president  of the senate, and the speaker of the assembly by July first,
    14  two thousand twenty-five, and annually thereafter, on the  participation
    15  of  minority and women-owned business enterprises in relation to covered
    16  brownfield remediation work subject to the provisions of this section as
    17  well as  the  diversity  practices  of  contractors  and  subcontractors
    18  employing laborers, workers, and mechanics on such projects.
    19    (b)  Such reports shall include aggregated data on the utilization and
    20  participation of minority  and  women-owned  business  enterprises,  the
    21  employment  of minorities and women in construction-related jobs on such
    22  projects, and the commitment of contractors and subcontractors  on  such
    23  projects to adopting practices and policies that promote diversity with-
    24  in  the  workforce.  The  reports  shall  also examine the compliance of
    25  contractors and subcontractors with other equal  employment  opportunity
    26  requirements  and  anti-discrimination  laws,  in  addition to any other
    27  employment practices deemed pertinent by the commissioner.
    28    (c) The fiscal officer may require any owner or developer to  disclose
    29  information  on  the  participation of minority and women-owned business
    30  enterprises and the diversity practices of contractors  and  subcontrac-
    31  tors  involved  in the performance of any covered brownfield remediation
    32  work.  It shall be the duty of the fiscal  officer  to  consult  and  to
    33  share  such  information in order to effectuate the requirements of this
    34  section.
    35    § 5. This act shall take effect on the first of January next  succeed-
    36  ing  the date on which it shall have become a law and shall apply to all
    37  requests for participation received pursuant to section 27-1407  of  the
    38  environmental conservation law received on or after such date.
feedback