Bill Text: NY S04303 | 2019-2020 | General Assembly | Introduced
Bill Title: Relates to the liability of design professionals; prohibits broad indemnification of a state or local agency or political subdivision involving public work for contracts executed on or after January 1, 2020.
Spectrum: Partisan Bill (Republican 6-0)
Status: (Introduced - Dead) 2020-01-08 - REFERRED TO LOCAL GOVERNMENT [S04303 Detail]
Download: New_York-2019-S04303-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 4303 2019-2020 Regular Sessions IN SENATE March 7, 2019 ___________ Introduced by Sens. RANZENHOFER, AKSHAR, GALLIVAN, JACOBS, ROBACH, SEWARD -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government AN ACT to amend the general municipal law, the public authorities law and the state finance law, in relation to liability of design profes- sionals The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The general municipal law is amended by adding a new 2 section 103-h to read as follows: 3 § 103-h. Design professional liability. 1. For purposes of this 4 section, the term "design professional" shall mean: 5 a. An individual licensed pursuant to articles one hundred forty-five, 6 one hundred forty-seven, and one hundred forty-eight of the education 7 law; or 8 b. Any corporation, limited liability company, partnership or other 9 business entity legally authorized to practice any of the professions 10 regulated by articles one hundred forty-five, one hundred forty-seven, 11 and one hundred forty-eight of the education law. 12 2. Any provision, clause, covenant, or agreement contained in, collat- 13 eral to, or affecting a contract executed on or after January first, two 14 thousand twenty between a municipal corporation, as defined in section 15 sixty-six of the general construction law, and a design professional for 16 professional design services related to the design, construction, 17 repair, or maintenance of any public building, structure, highway, 18 bridge, viaduct, water or sewer system, or other public facility that 19 requires a design professional to defend or indemnify such municipal 20 corporation, its agents, contractors, subcontractors or suppliers shall 21 be deemed void and against public policy and wholly unenforceable, 22 except as to claims that are caused by or the result of the negligence, 23 recklessness, or willful misconduct of the design professional. Any EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD07680-01-9S. 4303 2 1 contractual obligation permitted under this section shall be limited and 2 enforceable only to the degree or percentage or fault attributable to 3 such design professional. 4 § 2. The public authorities law is amended by adding a new section 5 2879-d to read as follows: 6 § 2879-d. Design professional liability. 1. As used in this section: 7 a. The term "design professional" shall mean: 8 (1) An individual licensed pursuant to articles one hundred forty- 9 five, one hundred forty-seven, and one hundred forty-eight of the educa- 10 tion law, or 11 (2) Any corporation, limited liability company, partnership or other 12 business entity legally authorized to practice any of the professions 13 regulated by articles one hundred forty-five, one hundred forty-seven, 14 and one hundred forty-eight of the education law. 15 b. The term "state authority" shall mean a public authority or public 16 benefit corporation created by or existing under this chapter or any 17 other law of the state of New York, with one or more of its members 18 appointed by the governor or who serve as members by virtue of holding a 19 civil office of the state, other than an interstate or international 20 authority or public benefit corporation, including subsidiaries of such 21 public authority or public benefit corporation. 22 c. The term "local authority" shall mean: (1) a public authority or 23 public benefit corporation created by or existing under this chapter or 24 any other law of the state of New York whose members do not hold a civil 25 office of the state, are not appointed by the governor or are appointed 26 by the governor specifically upon the recommendation of the local 27 government or governments; (2) a not-for-profit corporation affiliated 28 with, sponsored by, or created by a county, city, town or village 29 government; (3) a local industrial developmental agency or authority or 30 other local public benefit corporation; (4) an affiliate of such local 31 authority; or (5) a land bank corporation created pursuant to article 32 sixteen of the not-for-profit corporation law. 33 2. Any provision, clause, covenant, or agreement contained in, collat- 34 eral to, or affecting a contract executed on or after January first, two 35 thousand twenty between a state authority or local authority and a 36 design professional for professional design services related to the 37 design, construction, repair, or maintenance of any public building, 38 structure, highway, bridge, viaduct, water or sewer system, or other 39 public facility that requires a design professional to defend or indem- 40 nify such state authority or local authority, its agents, contractors, 41 subcontractors or suppliers shall be deemed void and against public 42 policy and wholly unenforceable, except as to claims that are caused by 43 or the result of the negligence, recklessness, or willful misconduct of 44 the design professional. Any contractual obligation permitted under this 45 section shall be limited and enforceable only to the degree or percent- 46 age or fault attributable to such design professional. 47 § 3. Section 136-a of the state finance law is amended by adding a new 48 subdivision 6 to read as follows: 49 6. a. As used in this subdivision: 50 (1) The term "design professional" shall mean: (i) an individual 51 licensed pursuant to articles one hundred forty-five, one hundred 52 forty-seven, and one hundred forty-eight of the education law; or (ii) 53 any corporation, limited liability company, partnership or other busi- 54 ness entity legally authorized to practice any of the professions regu- 55 lated by articles one hundred forty-five, one hundred forty-seven, and 56 one hundred forty-eight of the education law.S. 4303 3 1 (2) The term "state agency" shall mean (i) any state department, (ii) 2 any division, board, commission or bureau of any state department, (iii) 3 the state university of New York and the city university of New York, 4 including all their constituent units, or (iv) a board, a majority of 5 whose members are appointed by the governor or who serve by virtue of 6 being state officers or employees as defined in subparagraph (i), (ii) 7 or (iii) of paragraph (i) of subdivision one of section seventy-three of 8 the public officers law. 9 b. Any provision, clause, covenant, or agreement contained in, collat- 10 eral to, or affecting a contract executed on or after January first, two 11 thousand twenty between a state agency and a design professional for 12 professional design services related to the design, construction, 13 repair, or maintenance of any public building, structure, highway, 14 bridge, viaduct, water or sewer system, or other public facility that 15 requires a design professional to defend or indemnify such state agency, 16 its agents, contractors, subcontractors or suppliers shall be deemed 17 void and against public policy and wholly unenforceable, except as to 18 claims that are caused by or the result of the negligence, recklessness, 19 or willful misconduct of the design professional. Any contractual obli- 20 gation permitted under this section shall be limited and enforceable 21 only to the degree or percentage or fault attributable to such design 22 professional. 23 § 4. This act shall take effect on the one hundred eightieth day after 24 it shall have become a law and shall apply to all contracts entered into 25 on and after such date.
