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Bill

A 11603

Relates to prevailing wage requirements applicable to leasehold improvements in state leases

2025 Regular Session

Requires prevailing wage for leasehold improvements on state leases handled by OGS when costs exceed $100,000.

REFERRED TO LABOR
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Bill Summary · A 11603

Summary of A.11603 (2025-2026) – New York

Main purpose and intent

A.11603 seeks to ensure that leasehold improvements funded under state leases entered into by the Commissioner of General Services (OGS) are subject to prevailing wage requirements. The bill adds a dedicated framework tying leasehold construction conducted under state leases to prevailing wage standards, aligning lease contracts with existing public works wage protections.

Key provisions and changes

  • Prevailing wage applicability to state leases

    • Amends the Public Buildings Law to require that leases entered into by the Commissioner of General Services (OGS) include prevailing wage requirements for any covered leasehold improvements.
    • The new provision directs that such improvements comply with the prevailing wage standards set forth in the Labor Law (specifically sections 222 and 222-b).

  • Definition of “covered leasehold improvements”

    • Covers construction undertaken under leases managed by OGS, including:
    • Structural modifications
    • New drywall and flooring
    • Updates to lighting, electrical, and technology systems
    • Addition of rooms, cubicles, or partitions
    • Shelving and countertops
    • Applies to improvements where construction costs exceed $100,000.

  • Administrative and enforcement framework

    • Establishes that enforcement of these requirements falls under the scope of the Labor Law provisions referenced (sections 222, 222-a, 222-b, and 227) and the jurisdiction of the fiscal officer (the commissioner).
    • Grants the fiscal officer authority to issue rules and regulations governing these provisions.
    • Violations of the prevailing wage requirements for leasehold improvements can lead to determinations and orders under section 222-b of the Labor Law.

  • Lease structure and authority retained

    • Maintains existing terms for state leases (ten-year maximum terms, with potential longer terms up to 15 years in certain circumstances) and the exclusive authority of the OGS to lease state space within Albany County, consistent with current law.
    • Retains standard contract clauses and executory clauses related to funding and liability.

  • Effective date and transitional note

    • The act takes effect immediately upon signing.
    • Some amendments to the Public Buildings Law are tied to a sunset-like provision in the same section, with a mechanism reflecting prior law’s expiration framework.

Who would be affected

  • State agencies and departments leasing space from OGS: Any lease entered into under section 12 of the Public Buildings Law would now implicate prevailing wage requirements for qualifying leasehold improvements.
  • Contractors and construction projects on state leases: Projects exceeding $100,000 in cost completed as part of state leasehold improvements would be subject to prevailing wage rules.
  • OGS and fiscal officer: Responsible for implementing, monitoring, and enforcing the new requirements, including rulemaking and oversight.

Procedural and timeline aspects

  • Referred to the Labor Committee upon introduction.
  • Effective date is immediate; certain provisions interact with existing sunset provisions in related public buildings law amendments.
  • Enforcement follows established Labor Law procedures (prevailing wage enforcement processes).

Overall, the bill tightens wage protections for construction tied to state leaseholds, ensuring that private-sector workers on those projects are paid prevailing wages consistent with public works standards.

Compiled from official sources — confirm details with the bill’s official record.

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