S T A T E O F N E W Y O R K
________________________________________________________________________
4630
2009-2010 Regular Sessions
I N S E N A T E
April 27, 2009
___________
Introduced by Sen. ONORATO -- read twice and ordered printed, and when
printed to be committed to the Committee on Finance
AN ACT to amend the state finance law, in relation to bonds to secure
payment of certain claims
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, AND THE
FISCAL OFFICER HAS THE POWER TO ENFORCE SUCH COMPLIANCE, 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 thousand dollars and provided further,
that in a case where the contract is not subject to the multiple
contract award requirements of section one hundred thirty-five of this
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10691-02-9
S. 4630 2
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 hundred thousand dollars.
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 esti-
mate, pay not to exceed seventy-five per centum of the amount of the
retained percentage.
S 2. This act shall take effect immediately and shall be deemed to
have been in full force and effect on the same date as chapter 619 of
the laws of 2008 took effect.
