Legislative Memo

Roadway Excavation Quality Assurance Act (S.1252-A) / (A.2057)

April 28th, 2021

RE:  Enacts the “roadway excavation quality assurance act”

S.1252 (Gianaris) / A.2057 (Reyes)

MEMORANDUM IN OPPOSITION

Upstate United, a non-partisan, pro-taxpayer, pro-economic growth, education and advocacy coalition made up of Upstate business and trade organizations, opposes this legislation.

If passed, this bill will create the “Roadway Excavation Quality Assurance Act” which relates to workers on excavations and provides that utility companies or their contractors pay the prevailing wage on projects for which a permit to use or open a street is required to be issued.

In addition, while we understand the bill intends to push utility companies to pay their workers more, it fails to mention that these added costs will be paid by the consumer, not the utility companies. Studies show that by mandating the payment of prevailing wages, construction costs are increased by upwards of 30%. Again, it will not be the utility companies paying the 30% increase, it will be the consumers who will have to pay.

Furthermore, 70% of the construction workforce in New York State is not signatory to a collective bargaining agreement, or CBA. These are the same individuals who perform more than 90% of this type of construction work and continue to do so safely and successfully. The state should not be taking these jobs out of the capable hands of those who have historically completed these projects just to cater to their union donors.

For these reasons, we oppose the enactment of this legislation.