Int. No. 288
By Council Members Cruz, Henry, Marshall and Michels; also Council Members Foster, Harrison, Leffler and McCaffrey.
A Local Law to amend the administrative code of the city of New York, in relation to enforcement of an existing section of the administrative code that requires payment of the prevailing scale of union wages to workers on jobs for which a street excavation permit was issued.
Be it enacted by the Council as follows:
Section one. Subdivision d of section 19-103 of the administrative code of the city of New York, as renumbered and amended by local law number 104 for the year 1993, is amended to read as follows:
d. The commissioner may, and in accordance with subdivision b of section 19-142 of this subchapter shall, suspend review of applications for permits pending (i) payment by an applicant of outstanding fines, civil penalties or judgments imposed or entered against such applicant by a court or the environmental control board pursuant to this subchapter, (ii) payment by an applicant of outstanding fees or other charges lawfully assessed by the commissioner against such applicant pursuant to this subchapter and/or (iii) satisfactory compliance by an applicant with a request for corrective action or order issued by the commissioner pursuant to this subchapter.
§2. Section 19-142 of the administrative code of the city of New York, as renumbered and amended by local law number 104 for the year 1993, is amended to read as follows:
§19-142 Workers on excavations. a. A person to whom a permit may be issued, to use or open a street, shall be required, before such permit may be issued, to agree that none but competent workers, skilled in the work required of them, shall be employed thereon, and that the prevailing scale of union wages shall be paid to those so employed. No permit shall be issued until such agreement shall have been entered into with the department, and all such permits hereafter issued shall include therein a copy of this provision.
b. Notwithstanding any contrary provision of section 19-103 of this subchapter, where a permittee which is a franchisee of the city, a public utility company, a public utility corporation or the employer of the workers who are performing or have performed an activity on behalf of such permittee and for which work a permit to open a street was issued, has failed to pay the prevailing scale of union wages to those workers, such permittee and employer shall be liable for payment of the unpaid wages, interest thereon at a rate then in effect pursuant to section 14-a of the banking law and the civil penalties provided for in section 19-150 of this chapter and may also be subject to:
1. revocation of all outstanding permits issued by the commissioner to such permittee and employer;
2. a prohibition on the issuance by the commissioner of any permits to such permittee and employer for a period of six months for a first violation, for a period of one year for a second violation and for a period of five years for a third and each subsequent violation;
3. a debarment proceeding against such permittee and employer in accordance with chapter thirteen of the charter and the rules of the procurement policy board; and
4. a setoff against any payments due the employer and the permittee pursuant to any contract or other agreement with any city agency equal to the sum of the wages that should have been paid, the costs to the commissioner and the comptroller of enforcing the provisions of this section and any civil penalties imposed.
c. (1) Whenever the commissioner or the comptroller has reason to believe that a violation of this section has occurred, or upon receipt of a notarized written complaint alleging a violation of this section, the commissioner or the comptroller shall conduct an investigation to determine the validity of such belief or allegation and issue a preliminary determination within ten business days after the conclusion of such investigation. Such preliminary determination shall be immediately thereafter sent by certified mail, return receipt requested, to each complainant, if any, the permittee on whose behalf the employer was acting and the employer. Such preliminary determination shall be accompanied by a notice of an opportunity for a hearing to challenge such preliminary determination. If no request for a hearing is made within thirty days from the date of mailing, then the commissioner or the comptroller, as is appropriate, shall within ten business days thereafter issue a final determination that shall recite any penalty or penalties to be imposed if a violation of this section was found. A copy of such final determination shall be sent immediately thereafter by certified mail, return receipt requested, to, each complainant, if any, the permittee on whose behalf the employer was acting and the employer. Such final determination may be entered as a judgment in favor of the workers and the city.
(2) When a hearing is requested to contest the preliminary determination, such hearing shall be held within a reasonable time after the request and a final determination shall be issued within ten business days after the conclusion of the hearing. This final determination shall recite any penalty or penalties to be imposed if a violation of this section was found and a copy shall be sent by certified mail, return receipt requested, to each complainant, if any, the permittee on whose behalf the employer was acting and the employer. Such final determination may be entered as a judgment in favor of the workers and the city.
(3) When the investigation and any subsequent proceedings are conducted by the commissioner, copies of all complaints, notices and determinations shall also be sent to the comptroller and when the investigation and any subsequent proceedings are conducted by the comptroller, copies of all complaints, notices and determinations shall also be sent to the commissioner.
d. When it has been determined that a debarment proceeding is an appropriate sanction to impose upon the employer, such proceeding shall be initiated within thirty days after the issuance of a final determination.
e. The provisions of this section shall not in any way impair or impede any other rights, duties, obligations or responsibilities of the comptroller pursuant to the charter, this code or any other provision of law.
§2. The table of civil penalties set forth in paragraph one of subdivision b of section 19-150 of the administrative code of the city of New York, as renumbered and added by local law number 104 for the year 1993, is amended by adding a new line to follow the line beginning “19-141”, to read as follows:
19-142 5000
§3. This local law shall take effect sixty days after its enactment into law.
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