senate Bill S754

2009-2010 Legislative Session

Provides for a reasonable amount of construction contract sum to be deposited in a separate interest bearing escrow account with a third party escrow agent

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Sponsored By

Archive: Last Bill Status Via A2279 - Passed Assembly


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

view actions (7)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jun 30, 2010 3rd reading cal.1293
substituted for s754
Jun 30, 2010 substituted by a2279
Jun 29, 2010 ordered to third reading cal.1293
committee discharged and committed to rules
Jan 06, 2010 referred to consumer protection
Jan 15, 2009 referred to consumer protection

Votes

view votes

Jun 29, 2010 - Rules committee Vote

S754
13
5
committee
13
Aye
5
Nay
5
Aye with Reservations
0
Absent
0
Excused
0
Abstained
show Rules committee vote details

Co-Sponsors

S754 (ACTIVE) - Details

See Assembly Version of this Bill:
A2279
Law Section:
General Business Law
Laws Affected:
Amd ยง756-c, Gen Bus L
Versions Introduced in Other Legislative Sessions:
2011-2012: S3180, A5023
2013-2014: S1217, A529
2015-2016: S37, A10276
2017-2018: S5871, A1294
2019-2020: S7352, A488
2021-2022: S26, A771

S754 (ACTIVE) - Summary

Provides for a reasonable amount of construction contract sum to be deposited in a separate interest bearing escrow account with a third party escrow agent; provides further that the owner shall be subject to the payment of interest, in addition to the escrow interest, at the rate of one percent per month and the contractor or subcontractor shall be subject to payment of interest on the amount of retainage it holds at the rate of one percent per month.

S754 (ACTIVE) - Sponsor Memo

S754 (ACTIVE) - Bill Text download pdf

                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

    S. 754                                                   A. 2279

                       2009-2010 Regular Sessions

                      S E N A T E - A S S E M B L Y

                            January 15, 2009
                               ___________

IN  SENATE  --  Introduced  by  Sens.  BRESLIN,  HUNTLEY,  SCHNEIDERMAN,
  STACHOWSKI, STAVISKY, THOMPSON -- read twice and ordered printed,  and
  when printed to be committed to the Committee on Consumer Protection

IN  ASSEMBLY  --  Introduced  by M. of A. CUSICK, HYER-SPENCER -- Multi-
  Sponsored by -- M. of A. GUNTHER, MAGEE,  PHEFFER  --  read  once  and
  referred to the Committee on Consumer Affairs and Protection

AN  ACT  to  amend the general business law, in relation to retention of
  construction contracts

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Section  756-c  of  the general business law, as added by
chapter 127 of the laws of 2002, is amended to read as follows:
  S 756-c. Retention. By mutual agreement of  the  relevant  parties  an
owner  may retain a reasonable amount of the contract sum as retainage[.
A]  AND FOR ANY CONSTRUCTION CONTRACTS, EXCLUDING CONSTRUCTION CONTRACTS
FINANCED BY A PUBLIC BENEFIT CORPORATION, SUCH RETAINAGE SHALL BE DEPOS-
ITED IN A SEPARATE INTEREST BEARING ESCROW ACCOUNT WITH  A  THIRD  PARTY
ESCROW  AGENT.  AS  OF  THE  TIME  OF  THE DEPOSIT OF THE RETAINAGE, THE
RETAINED FUNDS SHALL BECOME  THE  SOLE  AND  SEPARATE  PROPERTY  OF  THE
CONTRACTOR.  INTEREST  ON THE RETAINED FUNDS SHALL ACCRUE AT AN INTEREST
RATE AT LEAST EQUAL TO THE PREVAILING INTEREST RATE PAID ON DEPOSITS  BY
THE  ESCROW AGENT. ALSO, A contractor or subcontractor may [also] retain
a reasonable amount for retainage so long as the amount does not  exceed
the  actual  percentage  [retained]  DEPOSITED  IN  ESCROW by the owner.
[Retainage] THE ESCROWED RETAINAGE shall  be  released  by  the  [owner]
OWNER'S  WRITTEN  DIRECTION  TO THE ESCROW AGENT TO DELIVER THE ESCROWED
RETAINAGE to the contractor no later than thirty days  after  the  final
approval of the work under a construction contract. In the event that an
owner  fails to release THE ESCROWED retainage as required by this arti-
cle, or the contractor or subcontractor fails to release a proportionate

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00280-01-9

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