Bill Text: NY S05483 | 2021-2022 | General Assembly | Introduced

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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) 2022-01-05 - REFERRED TO JUDICIARY [S05483 Detail]

Download: New_York-2021-S05483-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          5483

                               2021-2022 Regular Sessions

                    IN SENATE

                                      March 8, 2021
                                       ___________

        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 surety bond for
          contractors and subcontractors where no public fund  has  been  estab-
          lished 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
    24  posted, a surety bond issued by a surety duly licensed in the  state  of

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01239-01-1
        S. 5483                             2

     1  New York or [other form of undertaking] an irrevocable letter of credit,
     2  in  an  amount  equal  to the cost of the construction work guaranteeing
     3  prompt payment of moneys due to the contractor, his or  her  subcontrac-
     4  tors  and to all persons furnishing labor or materials to the contractor
     5  or his or her subcontractors in the  prosecution  of  the  work  on  the
     6  public improvement.
     7    §  2.  This  act  shall  take  effect  immediately  and shall apply to
     8  contracts entered into on or after such effective date.