Bill Text: NY S04591 | 2025-2026 | General Assembly | Introduced
Bill Title: Prohibits broad indemnification by a design professional of a state or local agency or political subdivision involving public work for contracts except to the extent that damages were caused by or are the proximate result of the negligence, recklessness, or willful misconduct of the design professional.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2025-02-10 - REFERRED TO PROCUREMENT AND CONTRACTS [S04591 Detail]
Download: New_York-2025-S04591-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 4591 2025-2026 Regular Sessions IN SENATE February 10, 2025 ___________ Introduced by Sen. COONEY -- read twice and ordered printed, and when printed to be committed to the Committee on Procurement and Contracts 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-five between a municipal corporation, as defined in 15 section sixty-six of the general construction law, and a design profes- 16 sional for professional services related to the design, construction, 17 inspection, monitoring, repair, or maintenance of any public building, 18 structure, highway, bridge, viaduct, water or sewer system, or other 19 public facility that requires a design professional to defend or indem- 20 nify such municipal corporation, its agents, contractors, subcontractors 21 or suppliers shall be deemed void and against public policy and wholly 22 unenforceable, except as to damages that are caused by or are the proxi- 23 mate result of the negligence, recklessness, or willful misconduct of 24 the design professional. Any contractual obligation permitted under this EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD08792-01-5S. 4591 2 1 section shall be limited and enforceable only to the degree or percent- 2 age of fault attributable to such design professional. Nothing in this 3 section shall void or render unenforceable any provision, clause, coven- 4 ant or agreement that requires a design professional to defend or indem- 5 nify a municipal corporation for non-professional liability claims or 6 damages to the extent covered by the design professional's commercial 7 general liability insurance or automobile liability insurance. 8 3. Notwithstanding any provision of law to the contrary, this section 9 shall not be construed to affect or alter section two hundred forty or 10 two hundred forty-one of the labor law. 11 § 2. The public authorities law is amended by adding a new section 12 2879-d to read as follows: 13 § 2879-d. Design professional liability. 1. As used in this section: 14 a. The term "design professional" shall mean: 15 (1) An individual licensed pursuant to articles one hundred forty- 16 five, one hundred forty-seven, and one hundred forty-eight of the educa- 17 tion law, or 18 (2) Any corporation, limited liability company, partnership or other 19 business entity legally authorized to practice any of the professions 20 regulated by articles one hundred forty-five, one hundred forty-seven, 21 and one hundred forty-eight of the education law. 22 b. The term "state authority" shall mean a public authority or public 23 benefit corporation created by or existing under this chapter or any 24 other law of the state of New York, with one or more of its members 25 appointed by the governor or who serve as members by virtue of holding a 26 civil office of the state, other than an interstate or international 27 authority or public benefit corporation, including subsidiaries of such 28 public authority or public benefit corporation. 29 c. The term "local authority" shall mean: (1) a public authority or 30 public benefit corporation created by or existing under this chapter or 31 any other law of the state of New York whose members do not hold a civil 32 office of the state, are not appointed by the governor or are appointed 33 by the governor specifically upon the recommendation of the local 34 government or governments; (2) a not-for-profit corporation affiliated 35 with, sponsored by, or created by a county, city, town or village 36 government; (3) a local industrial development agency or authority or 37 other local public benefit corporation; (4) an affiliate of such local 38 authority; or (5) a land bank corporation created pursuant to article 39 sixteen of the not-for-profit corporation law. 40 2. Any provision, clause, covenant, or agreement contained in, collat- 41 eral to, or affecting a contract executed on or after January first, two 42 thousand twenty-five between a state authority or local authority and a 43 design professional for professional services related to the design, 44 construction, inspection, monitoring, repair, or maintenance of any 45 public building, structure, highway, bridge, viaduct, water or sewer 46 system, or other public facility that requires a design professional to 47 defend or indemnify such state authority or local authority, its agents, 48 contractors, subcontractors or suppliers shall be deemed void and 49 against public policy and wholly unenforceable, except as to damages 50 that are caused by or are the proximate result of the negligence, reck- 51 lessness, or willful misconduct of the design professional. Any contrac- 52 tual obligation permitted under this section shall be limited and 53 enforceable only to the degree or percentage of fault attributable to 54 such design professional. Nothing in this section shall void or render 55 unenforceable any provision, clause, covenant or agreement that requires 56 a design professional to defend or indemnify a state authority or localS. 4591 3 1 authority for non-professional liability claims or damages to the extent 2 covered by the design professional's commercial general liability insur- 3 ance or automobile liability insurance. 4 3. Notwithstanding any provision of law to the contrary, this section 5 shall not be construed to affect or alter section two hundred forty or 6 two hundred forty-one of the labor law. 7 § 3. Section 136-a of the state finance law is amended by adding a new 8 subdivision 6 to read as follows: 9 6. a. As used in this subdivision: 10 (1) The term "design professional" shall mean: (i) an individual 11 licensed pursuant to articles one hundred forty-five, one hundred 12 forty-seven, and one hundred forty-eight of the education law; or (ii) 13 any corporation, limited liability company, partnership or other busi- 14 ness entity legally authorized to practice any of the professions regu- 15 lated by articles one hundred forty-five, one hundred forty-seven, and 16 one hundred forty-eight of the education law. 17 (2) The term "state agency" shall mean (i) any state department, (ii) 18 any division, board, commission or bureau of any state department, (iii) 19 the state university of New York and the city university of New York, 20 including all their constituent units, or (iv) a board, a majority of 21 whose members are appointed by the governor or who serve by virtue of 22 being state officers or employees as defined in subparagraph (i), (ii) 23 or (iii) of paragraph (i) of subdivision one of section seventy-three of 24 the public officers law. 25 b. Any provision, clause, covenant, or agreement contained in, collat- 26 eral to, or affecting a contract executed on or after January first, two 27 thousand twenty-five between a state agency and a design professional 28 for professional services related to the design, construction, 29 inspection, monitoring, repair, or maintenance of any public building, 30 structure, highway, bridge, viaduct, water or sewer system, or other 31 public facility that requires a design professional to defend or indem- 32 nify such state agency, its agents, contractors, subcontractors or 33 suppliers shall be deemed void and against public policy and wholly 34 unenforceable, except as to damages that are caused by or are the proxi- 35 mate result of the negligence, recklessness, or willful misconduct of 36 the design professional. Any contractual obligation permitted under this 37 section shall be limited and enforceable only to the degree or percent- 38 age of fault attributable to such design professional. Nothing in this 39 section shall void or render unenforceable any provision, clause, coven- 40 ant or agreement that requires a design professional to defend or indem- 41 nify a state agency for non-professional liability claims or damages to 42 the extent covered by the design professional's commercial general 43 liability insurance or automobile insurance. 44 c. Notwithstanding any provision of law to the contrary, this section 45 shall not be construed to affect or alter section two hundred forty or 46 two hundred forty-one of the labor law. 47 § 4. This act shall take effect immediately.
