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S 10472

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

2025 Regular Session Introduced by Chris Ryan

State leases must include prevailing wage requirements for covered leasehold improvements over $100,000, aligning lease projects with public works wage standards.

REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
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Bill Summary · S 10472

Summary of Bill S. 10472 (2025-2026) – Prevailing Wage Requirements for Leasehold Improvements in State Leases (New York)

Purpose and Intent

  • Clarifies and expands prevailing wage requirements to apply to certain leasehold improvements in leases entered into by the Commissioner of General Services (OGS) for state use.
  • Aligns state leasing practices with prevailing wage standards for public works, ensuring that covered leasehold improvements funded under state leases meet established wage requirements.

Key Provisions and Changes

  • Section 1 & Section 2: Lease Terms and Compliance

    • Reforms subdivision 12 of section 3 of the Public Buildings Law to require that state leases include a clause mandating compliance with prevailing wage requirements (Labor Law § 224-g).
    • Maintains existing lease term framework: leases typically not exceeding 10 years, with authority for up to 15-year terms if deemed in the state’s best interests; optional renewals for terms of 10 years or less.
    • Keeps language ensuring the state’s contractual commitments are executory only to the extent of funds available.
    • Confirms exclusive authority of the Commissioner of General Services (OGS) to lease space for state departments, agencies, commissions, boards, and officers within Albany County (and similar authority for other locations as required).
    • Allows subletting of leased spaces if the subletting is determined appropriate by the commissioner and the occupying state entities when spaces are not needed.

  • Section 3: New Section 224-g – Prevailing Wage for Covered Leasehold Improvements

    • Establishes a new statutory framework titled “Prevailing wage requirements applicable to leasehold improvements in state leases.”
    • Covered Leasehold Improvements: Includes construction undertaken under leases by OGS (per Public Buildings Law §3, subd. 12) such as:
    • Structural modifications
    • New drywall and flooring
    • Updates to lighting, electrical, and technology systems
    • Additions of rooms, cubicles, partitions
    • Shelving and countertops
    • Threshold: improvements with construction costs over $100,000
    • Applicability: Applies to all leases entered into by OGS under the Public Buildings Law.
    • Enforcement and Administration:
    • The fiscal officer (defined as the commissioner) is responsible for enforcement, in line with sections 222, 222-a, 222-b, and 227 of the Labor Law and related provisions.
    • The fiscal officer may issue rules/regulations governing these provisions.
    • Violations may trigger determinations and orders under Labor Law § 222-b.

Affected Parties and Impacts

  • Who is Affected

    • State agencies, departments, commissions, boards, and officers that occupy leased space through OGS.
    • Contractors and vendors engaged to perform leasehold improvements in state-leased spaces (as these improvements would now be subject to prevailing wage requirements).
    • OGS and the state fiscal officer responsible for administering leases and enforcing wage requirements.

  • Financial/Operational Impact

    • Leases and leasehold improvement projects exceeding $100,000 would be subject to prevailing wage requirements, potentially increasing project labor costs where applicable.
    • Enhances oversight and consistency with state public works wage standards for improvements undertaken under lease arrangements.

Timeline and Procedural Details

  • Effective Date

    • The act takes effect immediately upon enactment.
    • Certain amendments to the Public Buildings Law (Subdivision 12 changes) will be subject to expiration and reversion timelines tied to prior transitional provisions (as noted in Section 1 regarding expiration/reversion when the related section takes effect).

  • Process

    • Referred to the Senate Committee on Investigations and Government Operations for consideration.
    • The labor law provisions related to wage enforcement (sections 222, 222-a, 222-b, 227) govern how violations are handled, including potential orders.

Practical Takeaways

  • OGS leases for state use must now explicitly comply with prevailing wage rules for covered leasehold improvements.
  • Improvements above $100,000 in leased spaces are impacted, aligning lease projects with prevailing wage standards typical of public works.
  • The bill enhances state-level wage enforcement and accountability for construction work conducted within leased facilities.

If you’d like, I can provide a side-by-side comparison with current law references or draft a quick one-page briefing for stakeholders.

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

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