S T A T E O F N E W Y O R K
________________________________________________________________________
4093
2009-2010 Regular Sessions
I N A S S E M B L Y
January 30, 2009
___________
Introduced by M. of A. MILLMAN, DESTITO, PEOPLES -- Multi-Sponsored by
-- M. of A. BENJAMIN, BRODSKY, CLARK, COOK, ESPAILLAT, FIELDS, GREENE,
HYER-SPENCER, PERRY, P. RIVERA, WEPRIN -- read once and referred to
the Committee on Governmental Operations
AN ACT to amend the state finance law, in relation to performance and
payment bond requirements
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivision 1 of section 137 of the state finance law, as
separately amended by section 17 of part MM of chapter 57 and chapter
619 of the laws of 2008, is amended to read as follows:
1. In addition to other bond or bonds, if any, required by law for the
completion of a work specified in a contract for the prosecution of a
public improvement for the state of New York a municipal corporation, a
public benefit corporation or a commission appointed pursuant to law, or
in the absence of any such requirement, the comptroller may or the other
appropriate official, respectively, shall nevertheless require prior to
the approval of any such contract a bond guaranteeing prompt payment of
moneys due to all persons furnishing labor or materials to the contrac-
tor or any subcontractors in the prosecution of the work provided for in
such contract. Whenever a municipal corporation issues a permit subject
to compliance with section two hundred twenty of the labor law, such
permittee or its contractor or subcontractors furnishing workers shall
post a payment bond subject to this section. Provided, however, that all
performance bonds and payment bonds may, at the discretion of the head
of the state agency, public benefit corporation or commission, or his or
her designee, be dispensed with for the completion of a work specified
in a contract for the prosecution of a public improvement for the state
of New York for which bids are solicited where the aggregate amount of
the contract is under one hundred FIFTY thousand dollars and provided
further, that in a case where the contract is not subject to the multi-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04469-01-9
A. 4093 2
ple contract award requirements of section one hundred thirty-five of
this article, such requirements may be dispensed with where the head of
the state agency, public benefit corporation or commission finds it to
be in the public interest and where the aggregate amount of the contract
awarded or to be awarded is less than [two] THREE hundred thousand
dollars. THE HEAD OF THE STATE AGENCY, PUBLIC BENEFIT CORPORATION OR
COMMISSION, OR HIS OR HER DESIGNEE, SHALL ADJUST THE AGGREGATE CONTRACT
AMOUNTS LISTED IN THIS SUBDIVISION EVERY YEAR TO ACCOUNT FOR INCREASES
IN THE COSTS OF CONSTRUCTION. ADVERTISEMENTS FOR BIDS SHALL PROVIDE
INFORMATION ON THE REQUIREMENTS FOR, OR DISPENSATION OF, PERFORMANCE AND
PAYMENT BONDS. Provided further, that in a case where a performance or
payment bond is dispensed with, twenty per centum may be retained from
each progress payment or estimate until the entire contract work has
been completed and accepted, at which time the head of the state agency,
public benefit corporation or commission shall, pending the payment of
the final estimate, pay not to exceed seventy-five per centum of the
amount of the retained percentage.
S 2. Subdivision 4 of section 139-f of the state finance law, as
amended by chapter 83 of the laws of 1995, is amended to read as
follows:
4. Notwithstanding any other provision of this section or other law,
requirements for the furnishing of a performance bond or a payment bond
may be dispensed with at the discretion of the head of the state agency
or corporation, or his or her designee, where the public owner is a
state agency or corporation described in subdivision one-a of this
section and the aggregate amount of the contract awarded or to be
awarded is under ONE HUNDRED fifty thousand dollars and, in a case where
the contract is not subject to the multiple contract award requirements
of section one hundred thirty-five of this article, such requirements
may be dispensed with where the head of the state agency or corporation
finds it to be in the public interest and where the aggregate amount of
the contract awarded or to be awarded is under [two] THREE hundred thou-
sand dollars. THE HEAD OF THE STATE AGENCY, PUBLIC BENEFIT CORPORATION
OR COMMISSION, OR HIS OR HER DESIGNEE, SHALL ADJUST THE AGGREGATE
CONTRACT AMOUNTS LISTED IN THIS SUBDIVISION EVERY YEAR TO ACCOUNT FOR
INCREASES IN THE COSTS OF CONSTRUCTION. ADVERTISEMENTS FOR BIDS SHALL
PROVIDE INFORMATION ON THE REQUIREMENTS FOR, OR DISPENSATION OF,
PERFORMANCE AND PAYMENT BONDS. Provided further, that in a case where a
performance or payment bond is dispensed with, twenty per centum may be
retained from each progress payment or estimate until the entire
contract work has been completed and accepted, at which time the head of
the state agency or corporation shall, pending the payment of the final
estimate, pay not to exceed seventy-five per centum of the amount of the
retained percentage.
S 3. This act shall take effect immediately.