Bill Text: NY S02830 | 2011-2012 | General Assembly | Introduced
Bill Title: Increases the contract threshold for which performance and payment bonds are required for small and certified minority and women owned businesses.
Spectrum: Partisan Bill (Democrat 5-0)
Status: (Introduced - Dead) 2012-01-04 - REFERRED TO FINANCE [S02830 Detail]
Download: New_York-2011-S02830-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
2830
2011-2012 Regular Sessions
I N S E N A T E
February 2, 2011
___________
Introduced by Sens. STEWART-COUSINS, ADAMS, HUNTLEY, MONTGOMERY, PERKINS
-- read twice and ordered printed, and when printed to be committed to
the Committee on Finance
AN ACT to amend the state finance law, in relation to performance and
payment bond requirements
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, such
15 permittee or its contractor or subcontractors furnishing workers shall
16 post a payment bond subject to this section. Provided, however, that all
17 performance bonds and payment bonds may, at the discretion of the head
18 of the state agency, public benefit corporation or commission, or his or
19 her designee, be dispensed with for the completion of a work specified
20 in a contract for the prosecution of a public improvement for the state
21 of New York for which bids are solicited where the aggregate amount of
22 the contract is under one hundred FIFTY thousand dollars and provided
23 further, that in a case where the contract is not subject to the multi-
24 ple contract award requirements of section one hundred thirty-five of
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04059-01-1
S. 2830 2
1 this article, such requirements may be dispensed with where the head of
2 the state agency, public benefit corporation or commission finds it to
3 be in the public interest and where the aggregate amount of the contract
4 awarded or to be awarded is less than [two] THREE hundred thousand
5 dollars. THE HEAD OF THE STATE AGENCY, PUBLIC BENEFIT CORPORATION OR
6 COMMISSION, OR HIS OR HER DESIGNEE, SHALL ADJUST THE AGGREGATE CONTRACT
7 AMOUNTS LISTED IN THIS SUBDIVISION EVERY YEAR TO ACCOUNT FOR INCREASES
8 IN THE COSTS OF CONSTRUCTION. ADVERTISEMENTS FOR BIDS SHALL PROVIDE
9 INFORMATION ON THE REQUIREMENTS FOR, OR DISPENSATION OF, PERFORMANCE AND
10 PAYMENT BONDS. Provided further, that in a case where a performance or
11 payment bond is dispensed with, twenty per centum may be retained from
12 each progress payment or estimate until the entire contract work has
13 been completed and accepted, at which time the head of the state agency,
14 public benefit corporation or commission shall, pending the payment of
15 the final estimate, pay not to exceed seventy-five per centum of the
16 amount of the retained percentage.
17 S 2. Subdivision 4 of section 139-f of the state finance law, as
18 amended by chapter 83 of the laws of 1995, is amended to read as
19 follows:
20 4. Notwithstanding any other provision of this section or other law,
21 requirements for the furnishing of a performance bond or a payment bond
22 may be dispensed with at the discretion of the head of the state agency
23 or corporation, or his or her designee, where the public owner is a
24 state agency or corporation described in subdivision one-a of this
25 section and the aggregate amount of the contract awarded or to be
26 awarded is under ONE HUNDRED fifty thousand dollars and, in a case where
27 the contract is not subject to the multiple contract award requirements
28 of section one hundred thirty-five of this article, such requirements
29 may be dispensed with where the head of the state agency or corporation
30 finds it to be in the public interest and where the aggregate amount of
31 the contract awarded or to be awarded is under [two] THREE hundred thou-
32 sand dollars. THE HEAD OF THE STATE AGENCY, PUBLIC BENEFIT CORPORATION
33 OR COMMISSION, OR HIS OR HER DESIGNEE, SHALL ADJUST THE AGGREGATE
34 CONTRACT AMOUNTS LISTED IN THIS SUBDIVISION EVERY YEAR TO ACCOUNT FOR
35 INCREASES IN THE COSTS OF CONSTRUCTION. ADVERTISEMENTS FOR BIDS SHALL
36 PROVIDE INFORMATION ON THE REQUIREMENTS FOR, OR DISPENSATION OF,
37 PERFORMANCE AND PAYMENT BONDS. Provided further, that in a case where a
38 performance or payment bond is dispensed with, twenty per centum may be
39 retained from each progress payment or estimate until the entire
40 contract work has been completed and accepted, at which time the head of
41 the state agency or corporation shall, pending the payment of the final
42 estimate, pay not to exceed seventy-five per centum of the amount of the
43 retained percentage.
44 S 3. This act shall take effect immediately.
