New York Codes, Rules and Regulations › Title 9 - EXECUTIVE DEPARTMENT › Subtitle A - Governor's Office › Chapter I - Executive Orders › Part 5 - Executive Orders (George E. Pataki) › Section 5.49 - Executive order no. 49: establishing procedures to consider, in its proprietary capacity, the utilization of one or more project labor agreements

Current through Register Vol. 46, No. 28, July 10, 2024
WHEREAS, it is in the best interests of the People of the
					 State of New York to promote the timely completion of public construction
					 projects undertaken by State agencies while at the same time limiting the costs
					 of such projects to the greatest extent possible consistent with the law and
					 principles of fairness and equity;
WHEREAS, the New York State Court of Appeals issued a
					 decision in the Matter of New York State Chapter, Inc., Associated General
					 Contractors of America, et. al. v. New York State Thruway Authority, 88 N.Y.2d
					 56, 666 N.E.2d 185, 643 N.Y.S.2d 480 (1996), which found that project labor
					 agreements are "neither absolutely prohibited nor absolutely permitted in
					 public construction contracts"; and
WHEREAS, it is now clear that project labor agreements are
					 one of many tools which may be used by management and labor and which may,
					 under certain circumstances, assist in achieving the goals described
					 above;
NOW, THEREFORE, I, GEORGE E. PATAKI, Governor of the State
					 of New York, by virtue of the authority vested in me by the Constitution and
					 Laws of the State of New York, do hereby order as follows:
Each State agency shall establish procedures to consider,
					 in its proprietary capacity, the utilization of one or more project labor
					 agreements with respect to individual public construction projects. The
					 utilization of a project labor agreement shall be considered only where the
					 standards established by the Court of Appeals can reasonably be expected to be
					 met.
In reaching a determination on the use of a project labor
					 agreement with respect to a specific project the agency shall consider whether
					 the utilization of such an agreement is justified because it meets the interest
					 underlying the State's competitive bidding laws of:
(1) obtaining the best work possible at the
				  lowest possible price; and
(2)
				  preventing favoritism, improvidence, fraud and corruption in the awarding of
				  public contracts.
In considering whether to proceed with a project labor
					 agreement, agencies should be mindful that, in the past, the courts of the
					 State of New York have struck down any such agreement wherein a contracting
					 entity was unable to show a proper business purpose for entering into such
					 agreement.
No project labor agreement shall be approved by an agency
					 unless the decision to enter into the project labor agreement has, both as its
					 purpose and likely effect, the advancement of the interests of the State's
					 competitive bidding statutes.
In the event that an agency enters into a project labor
					 agreement and lets one or more contracts for work to be performed pursuant to
					 such agreement, it shall then be forwarded to the Commissioner of Labor. Upon
					 receipt of the project labor agreement, the Commissioner of Labor shall
					 determine the interaction, if any, between article 8 of the Labor Law and the
					 agreement.
Signed: George E. PatakiDated: February 12,
					 1997