S T A T E O F N E W Y O R K
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7839--A
2011-2012 Regular Sessions
I N A S S E M B L Y
May 19, 2011
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Introduced by M. of A. BING, MORELLE -- read once and referred to the
Committee on Insurance -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee
AN ACT to amend the insurance law, in relation to authorizing any city
with a population of one million or more to provide wrap-up insurance
programs and surety bonds for their public building and construction
projects; and providing for the repeal of such provisions upon expira-
tion thereof
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 2504 of the insurance law is amended to read as
follows:
S 2504. Designation of particular insurer, agent or broker for insur-
ance in certain public construction contracts. (a) (1) No officer or
employee of this state, or of any public corporation as defined in
section sixty-six of the general construction law, or of any public
authority, and no person acting or purporting to act on behalf of such
officer, employee, public corporation or public authority, shall, with
respect to any public building or construction contract which is about
to be, or which has been, competitively bid, require the bidder to make
application to any particular insurance company, agent or broker for or
to obtain or procure therefrom, any surety bond or contract of insurance
specified in connection with such contract, or specified by any law,
general, special or local.
(2) In paragraph one hereof, "public corporation" and "public authori-
ty" shall not include:
(A) a public corporation or public authority created pursuant to
agreement or compact with another state, or
(B) the city of New York, a public corporation or public authority, in
connection with the construction of electrical generating and trans-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11011-02-1
A. 7839--A 2
mission facilities or construction, extensions and additions of light
rail or heavy rail rapid transit and commuter railroads.
(b) [No] EXCEPT AS SET FORTH BELOW, NO such officer or employee, and
no person, firm or corporation acting or purporting to act on behalf of
such officer or employee, shall negotiate, make application for, obtain
or procure any of such surety bonds or contracts of insurance (except
contracts of insurance for builders risk or owners protective liability)
which can be obtained or procured by the bidder, contractor or subcon-
tractor. NOTWITHSTANDING THE ABOVE, THIS SECTION SHALL NOT PREVENT ANY
CITY WITH A POPULATION OF ONE MILLION OR MORE, OR ANY PERSON, FIRM OR
CORPORATION ACTING OR PURPORTING TO ACT ON ITS BEHALF, FROM PROVIDING
SURETY BONDS OR INSURANCE POLICIES REQUIRED BY ANY PUBLIC BUILDING OR
CONSTRUCTION CONTRACT WITHOUT REIMBURSEMENT FROM THE CONTRACTOR OR
SUBCONTRACTOR, OR FROM REQUIRING THAT A CONTRACTOR OR SUBCONTRACTOR
ACCOUNT FOR, OR OTHERWISE PROVIDE A CREDIT IN HIS OR HER BID WHICH
REFLECTS, THE AMOUNT THE BIDDING CONTRACTOR OR SUBCONTRACTOR WOULD
OTHERWISE ADD IF HE OR SHE PROVIDED HIS OR HER OWN INSURANCE AS REQUIRED
IN THE BID SPECIFICATIONS. FOR ANY PUBLIC BUILDING OR CONSTRUCTION
CONTRACT WHERE ANY CITY OR ANY PERSON, FIRM OR CORPORATION ACTING OR
PURPORTING TO ACT ON ITS BEHALF, PROVIDES SUCH SURETY BONDS OR INSURANCE
POLICIES, THE CITY SHALL FURTHER REQUIRE THAT EACH CONTRACTOR AND
SUBCONTRACTOR SHALL PARTICIPATE IN APPRENTICE TRAINING PROGRAMS IN THE
TRADES OF WORK IT EMPLOYS THAT HAVE BEEN APPROVED BY THE DEPARTMENT OF
LABOR FOR NOT LESS THAN THREE YEARS AND SHALL HAVE GRADUATED AT LEAST
ONE APPRENTICE IN THE LAST THREE YEARS AND SHALL HAVE AT LEAST ONE
APPRENTICE CURRENTLY ENROLLED IN SUCH APPRENTICESHIP TRAINING PROGRAM.
(c) This section shall not, however, prevent the exercise by such
officer or employee on behalf of the state or such public corporation or
public authority of its right to approve the form, sufficiency, or
manner of execution, of surety bonds or contracts of insurance furnished
by the insurance company selected by the bidder to underwrite such bonds
or contracts.
(D) Any provisions in any invitation for bids, or in any of the
contract documents, in conflict herewith are contrary to the public
policy of this state.
S 2. This act shall take effect immediately and shall apply to
contracts for which a solicitation was issued within five years of the
effective date of this act. Except with regard to such contracts, this
act shall expire and be deemed repealed five years after the date on
which it shall have taken effect.