Bill Text: NY S04952 | 2011-2012 | General Assembly | Amended

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Bill Title: Relates to authorizing the state and public authorities and public corporations to provide surety bonds and insurance policies for building or construction projects.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2012-01-04 - REFERRED TO INSURANCE [S04952 Detail]

Download: New_York-2011-S04952-Amended.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                        4952--A
                              2011-2012 Regular Sessions
                                   I N  S E N A T E
                                      May 2, 2011
                                      ___________
       Introduced  by  Sen.  SEWARD -- read twice and ordered printed, and when
         printed to be committed to the Committee  on  Insurance  --  committee
         discharged, bill amended, ordered reprinted as amended and recommitted
         to said committee
       AN  ACT  to amend the insurance law, in relation to authorizing any city
         with a population of one million or more to provide wrap-up  insurance
         programs  and  surety bonds for their public building and construction
         projects; and providing for the repeal of such provisions upon expira-
         tion thereof
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section  1.  Section  2504  of the insurance law is amended to read as
    2  follows:
    3    S 2504. Designation of particular insurer, agent or broker for  insur-
    4  ance  in  certain  public  construction contracts. (a) (1) No officer or
    5  employee of this state, or of  any  public  corporation  as  defined  in
    6  section  sixty-six  of  the  general  construction law, or of any public
    7  authority, and no person acting or purporting to act on behalf  of  such
    8  officer,  employee,  public corporation or public authority, shall, with
    9  respect to any public building or construction contract which  is  about
   10  to  be, or which has been, competitively bid, require the bidder to make
   11  application to any particular insurance company, agent or broker for  or
   12  to obtain or procure therefrom, any surety bond or contract of insurance
   13  specified  in  connection  with  such contract, or specified by any law,
   14  general, special or local.
   15    (2) In paragraph one hereof, "public corporation" and "public authori-
   16  ty" shall not include:
   17    (A) a public corporation  or  public  authority  created  pursuant  to
   18  agreement or compact with another state, or
   19    (B) the city of New York, a public corporation or public authority, in
   20  connection  with  the  construction  of electrical generating and trans-
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD11011-04-1
       S. 4952--A                          2
    1  mission facilities or construction, extensions and  additions  of  light
    2  rail or heavy rail rapid transit and commuter railroads.
    3    (b)  [No]  EXCEPT AS SET FORTH BELOW, NO such officer or employee, and
    4  no person, firm or corporation acting or purporting to act on behalf  of
    5  such  officer or employee, shall negotiate, make application for, obtain
    6  or procure any of such surety bonds or contracts  of  insurance  (except
    7  contracts of insurance for builders risk or owners protective liability)
    8  which  can  be obtained or procured by the bidder, contractor or subcon-
    9  tractor. NOTWITHSTANDING THE ABOVE, THIS SECTION SHALL NOT PREVENT,  FOR
   10  ANY  CONTRACT  THAT  IS SUBJECT TO A PROJECT LABOR AGREEMENT PURSUANT TO
   11  SECTION TWO HUNDRED TWENTY-TWO OF THE LABOR LAW, ANY CITY WITH  A  POPU-
   12  LATION OF ONE MILLION OR MORE, OR ANY PERSON, FIRM OR CORPORATION ACTING
   13  OR  PURPORTING  TO  ACT  ON  ITS  BEHALF, FROM PROVIDING SURETY BONDS OR
   14  INSURANCE POLICIES REQUIRED  BY  ANY  PUBLIC  BUILDING  OR  CONSTRUCTION
   15  CONTRACT  WITHOUT REIMBURSEMENT FROM THE CONTRACTOR OR SUBCONTRACTOR, OR
   16  FROM REQUIRING THAT A CONTRACTOR OR SUBCONTRACTOR ACCOUNT FOR, OR OTHER-
   17  WISE PROVIDE A CREDIT IN HIS OR HER BID WHICH REFLECTS, THE  AMOUNT  THE
   18  BIDDING  CONTRACTOR  OR  SUBCONTRACTOR  WOULD OTHERWISE ADD IF HE OR SHE
   19  PROVIDED HIS OR HER OWN INSURANCE AS REQUIRED IN THE BID SPECIFICATIONS.
   20    (c) This section shall not, however,  prevent  the  exercise  by  such
   21  officer or employee on behalf of the state or such public corporation or
   22  public  authority  of  its  right  to  approve the form, sufficiency, or
   23  manner of execution, of surety bonds or contracts of insurance furnished
   24  by the insurance company selected by the bidder to underwrite such bonds
   25  or contracts.
   26    (D) Any provisions in any invitation  for  bids,  or  in  any  of  the
   27  contract  documents,  in  conflict  herewith  are contrary to the public
   28  policy of this state.
   29    S 2. This act  shall  take  effect  immediately  and  shall  apply  to
   30  contracts  for  which a solicitation was issued within five years of the
   31  effective date of this act. Except with regard to such  contracts,  this
   32  act  shall  expire  and  be deemed repealed five years after the date on
   33  which it shall have taken effect.