Bill Text: NY A09024 | 2009-2010 | General Assembly | Introduced
Bill Title: Requires public contractors furnishing workers for a municipal project to post a payment bond, when the municipal fiscal officer has the power to enforce the public works requirements of article 8 of the labor law.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Engrossed - Dead) 2010-06-29 - REFERRED TO RULES [A09024 Detail]
Download: New_York-2009-A09024-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
9024
2009-2010 Regular Sessions
I N A S S E M B L Y
June 19, 2009
___________
Introduced by M. of A. JOHN -- read once and referred to the Committee
on Ways and Means
AN ACT to amend the state finance law, in relation to bonds to secure
payment of certain claims arising from a public improvement
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Subdivision 1 of section 137 of the state finance law, as
2 separately amended by section 17 of part MM of chapter 57 and chapter
3 619 of the laws of 2008, is amended to read as follows:
4 1. In addition to other bond or bonds, if any, required by law for the
5 completion of a work specified in a contract for the prosecution of a
6 public improvement for the state of New York a municipal corporation, a
7 public benefit corporation or a commission appointed pursuant to law, or
8 in the absence of any such requirement, the comptroller may or the other
9 appropriate official, respectively, shall nevertheless require prior to
10 the approval of any such contract a bond guaranteeing prompt payment of
11 moneys due to all persons furnishing labor or materials to the contrac-
12 tor or any subcontractors in the prosecution of the work provided for in
13 such contract. Whenever a municipal corporation issues a permit subject
14 to compliance with section two hundred twenty of the labor law, AND THE
15 FISCAL OFFICER HAS THE POWER TO ENFORCE SUCH COMPLIANCE, such permittee
16 or its contractor or subcontractors furnishing workers shall post a
17 payment bond subject to this section. Provided, however, that all
18 performance bonds and payment bonds may, at the discretion of the head
19 of the state agency, public benefit corporation or commission, or his or
20 her designee, be dispensed with for the completion of a work specified
21 in a contract for the prosecution of a public improvement for the state
22 of New York for which bids are solicited where the aggregate amount of
23 the contract is under one hundred thousand dollars and provided further,
24 that in a case where the contract is not subject to the multiple
25 contract award requirements of section one hundred thirty-five of this
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14480-01-9
A. 9024 2
1 article, such requirements may be dispensed with where the head of the
2 state agency, public benefit corporation or commission finds it to be in
3 the public interest and where the aggregate amount of the contract
4 awarded or to be awarded is less than two hundred thousand dollars.
5 Provided further, that in a case where a performance or payment bond is
6 dispensed with, twenty per centum may be retained from each progress
7 payment or estimate until the entire contract work has been completed
8 and accepted, at which time the head of the state agency, public benefit
9 corporation or commission shall, pending the payment of the final esti-
10 mate, pay not to exceed seventy-five per centum of the amount of the
11 retained percentage.
12 S 2. This act shall take effect immediately.
