Bill Text: NY S05229 | 2019-2020 | General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Requires a surety bond for contractors and subcontractors where no public fund has been established for the financing of a public improvement.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2020-01-08 - REFERRED TO JUDICIARY [S05229 Detail]
Download: New_York-2019-S05229-Introduced.html
Bill Title: Requires a surety bond for contractors and subcontractors where no public fund has been established for the financing of a public improvement.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2020-01-08 - REFERRED TO JUDICIARY [S05229 Detail]
Download: New_York-2019-S05229-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 5229 2019-2020 Regular Sessions IN SENATE April 17, 2019 ___________ Introduced by Sen. BRESLIN -- read twice and ordered printed, and when printed to be committed to the Committee on Judiciary AN ACT to amend the lien law, in relation to requiring a bond, letter of credit or other form of collateral financial security for contractors and subcontractors where no public fund has been established for the financing of a public improvement The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 5 of the lien law, as amended by chapter 155 of the 2 laws of 2004, is amended to read as follows: 3 § 5. Liens under contracts for public improvements. A person perform- 4 ing labor for or furnishing materials to a contractor, his or her 5 subcontractor or legal representative, for the construction or demoli- 6 tion of a public improvement pursuant to a contract by such contractor 7 with the state or a public corporation, and any trust fund to which 8 benefits and wage supplements are due or payable for the benefit of such 9 person performing labor, shall have a lien for the principal and inter- 10 est of the value or agreed price of such labor, including benefits and 11 wage supplements due or payable for the benefit of any person performing 12 labor, or materials upon the moneys of the state or of such corporation 13 applicable to the construction or demolition of such improvement, to the 14 extent of the amount due or to become due on such contract, and under a 15 judgment of the court of claims awarded to the contractor for damages 16 arising from the breach of such contract by the state, or awarded for 17 furnishing labor or materials not contemplated by the provisions of said 18 contract, upon filing a notice of lien as prescribed in this article, 19 except as hereinafter in this article provided. Where no public fund has 20 been established for the financing of a public improvement with esti- 21 mated cost in excess of two hundred fifty thousand dollars, the chief 22 financial officer of the public owner shall require the private entity 23 for whom the public improvement is being made to post, or cause to be EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD09505-01-9S. 5229 2 1 posted, a bond or [other form of undertaking] a letter of credit or 2 other form of collateral financial security approved by a federal or 3 state financial regulator guaranteeing prompt payment of moneys due to 4 the contractor, his or her subcontractors and to all persons furnishing 5 labor or materials to the contractor or his or her subcontractors in the 6 prosecution of the work on the public improvement. 7 § 2. This act shall take effect immediately and shall apply to 8 contracts entered into on or after such effective date.