N.Y. Public Authorities Law § 2879-b: Labor peace

§ 2879-b. Labor peace. 1. As used in this section:

(a) "Contractor" means a company undertaking a covered project, or the

operator of a hotel or convention center that is part of a covered

project.

(b) "Substantial proprietary interest" means the authority: (i) owns

fee title or a leasehold interest in the project of at least forty

years; or (ii) provides financing for the project, whether by direct

loan or indirectly by a guarantee, subsidy, deposit, credit enhancement

or similar method.

(c) "Covered project" means any project in which an authority enters

into an agreement for a development after the effective date of this

section, where: (i) a hotel is one of the principal functions of the

project; (ii) the entity the authority enters into an agreement with or

its contractor or subcontractor contracts for the development of such

hotel or convention center; (iii) the authority has a substantial

proprietary interest in the project, or in the hotel or convention

center; and (iv) the hotel or convention center will have more than

fifteen employees.

(d) "Labor peace agreement" means an agreement between the contractor

and a labor organization that represents a substantial number of hotel

or convention center employees in the state, which requires that the

labor organization and its members refrain from engaging in labor

activity that will disrupt the hotel's operations, including strikes,

boycotts, work stoppages, corporate campaigns, picketing or other

economic action against the covered project.

(e) "Public authority" shall mean a state public authority.

2. No public authority shall enter into any agreement or contract

under which the public authority has a substantial proprietary interest

in a covered project unless the agreement or contract requires as a

material condition that the contractor or a subcontractor thereof enter

into a labor peace agreement with a labor organization that represents

hotel employees in the state, for a period of at least five years.

3. Any contractor or subcontractor covered by subdivision two of this

section shall incorporate the terms of the labor peace agreement in any

contract, subcontract, lease, sublease, operating agreement,

concessionaire agreement, franchise agreement or other agreement or

instrument giving a right to any person or entity to own or operate a

hotel or convention center.

4. Notwithstanding any provision of this section, a public authority

may enter into an agreement or contract wherein the public authority has

a substantial proprietary interest in a covered project without a

contractor entering into a labor peace agreement, if the authority

determines that the project would not be able to go forward if a labor

peace agreement was required, or the costs of the project to the public

authority would be substantially increased by such requirement. Such a

determination shall be supported by a written finding by the public

authority setting forth the specific basis for such determination, which

may include experience with similar projects, earlier requests for

proposal for the same project, or a detailed evaluation of potential

bidders. Such written determination shall be included in any public

materials provided to any board or agency official in connection with

the project and shall be maintained by the authority.