senate Bill S6606A

2013-2014 Legislative Session

Provides that provisions in construction contracts with respect to requirements for certain additional insurance coverage are void and unenforceable

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Archive: Last Bill Status - Passed Senate


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

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jun 20, 2014 referred to judiciary
returned to assembly
repassed senate
Jun 17, 2014 amended on third reading 6606a
vote reconsidered - restored to third reading
Jun 17, 2014 returned to senate
recalled from assembly
Jun 12, 2014 referred to judiciary
delivered to assembly
passed senate
Jun 11, 2014 ordered to third reading cal.1343
committee discharged and committed to rules
Feb 12, 2014 referred to judiciary

Votes

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Jun 11, 2014 - Rules committee Vote

S6606
22
0
committee
22
Aye
0
Nay
1
Aye with Reservations
0
Absent
2
Excused
0
Abstained
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Bill Amendments

Original
A (Active)
Original
A (Active)

S6606 - Bill Details

See Assembly Version of this Bill:
A8747A
Current Committee:
Law Section:
General Obligations Law
Laws Affected:
Amd §5-322.1, Gen Ob L

S6606 - Bill Texts

view summary

Provides that provisions in construction contracts with respect to requirements for certain additional insurance coverage are void and unenforceable.

view sponsor memo
BILL NUMBER:S6606

TITLE OF BILL: An act to amend the general obligations law, in
relation to the invalidity of additional insurance provisions

PURPOSE: This bill would hold invalid any provision in a construction
contract that requires the purchase of additional insured coverage the
scope of which is prohibited under general obligations law section
5-322.1.

SUMMARY OF PROVISIONS:

Section 1 - Section 5-322.1 of the general obligations law declares
void and unenforceable indemnification clauses in construction
contracts where the indemnitee required the indemnitor to indemnify
him for damages due in whole or in part to the indemnitee's
negligence. Indemnitees have circumvented this prohibition by
requiring the indemnitee to provide the indemnitor with additional
insured coverage. This bill would correct this unfair practice.

Section 2: Establishes the effective date.

JUSTIFICATION: The New York State Legislature enacted 5-322.1 of the
general obligations law to declare 'broad form' hold harmless
provisions in construction contracts void and unenforceable.
Additional insured provisions in construction contracts flies in the
face of this prohibition and allows indemnitees to circumvent the law.
This bill would correct this inequity. Similar legislation has
recently been enacted in the State of Texas.

LEGISLATIVE HISTORY: New bill

FISCAL IMPLICATIONS: None

EFFECTIVE DATE: This act shall take effect on the thirtieth day after
it shall have become a law and shall apply only to any covenants,
promises, agreements or understandings in or in connection with or
collateral to a contract or agreement entered into on or after such
date.

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

    S. 6606                                                  A. 8747

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

                            February 12, 2014
                               ___________

IN  SENATE  --  Introduced by Sen. DeFRANCISCO -- read twice and ordered
  printed, and when printed to be committed to the Committee on  Judici-
  ary

IN  ASSEMBLY  -- Introduced by M. of A. CUSICK -- read once and referred
  to the Committee on Judiciary

AN ACT to amend the general obligations law, in relation to the invalid-
  ity of additional insurance provisions

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

  Section 1. Subdivision 1 of section 5-322.1 of the general obligations
law, as amended by chapter 67 of the laws of 1993, is amended to read as
follows:
  1.   A  covenant,  promise,  agreement  or  understanding  in,  or  in
connection with or collateral to a contract or agreement relative to the
construction, alteration, repair or maintenance of  a  building,  struc-
ture,  appurtenances  and  appliances  including  moving, demolition and
excavating connected therewith, purporting to indemnify or hold harmless
the promisee against liability for damage arising out of  bodily  injury
to  persons or damage to property contributed to, caused by or resulting
from the negligence of the promisee, his agents or employees, or  indem-
nitee, whether such negligence be in whole or in part, is against public
policy  and  is void and unenforceable; provided that this section shall
not affect the validity of any insurance contract, workers' compensation
agreement or other agreement issued by  an  admitted  insurer;  PROVIDED
FURTHER,  THAT  A PROVISION IN A CONSTRUCTION CONTRACT THAT REQUIRES THE
PURCHASE OF ADDITIONAL INSURED COVERAGE, OR ANY COVERAGE ENDORSEMENT, OR
PROVISION WITHIN AN INSURANCE POLICY PROVIDING ADDITIONAL INSURED COVER-
AGE, IS VOID AND  UNENFORCEABLE  TO  THE  EXTENT  THAT  IT  REQUIRES  OR
PROVIDES  COVERAGE, THE SCOPE OF WHICH IS PROHIBITED UNDER THIS SUBDIVI-
SION. This subdivision shall not preclude a promisee requiring  indemni-
fication  for  damages arising out of bodily injury to persons or damage
to property caused by or resulting from the negligence of a party  other
than the promisee, whether or not the promisor is partially negligent.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13069-01-3

S. 6606                             2                            A. 8747

  S  2.  This  act shall take effect on the thirtieth day after it shall
have become a law and shall  apply  only  to  any  covenants,  promises,
agreements  or understandings in, or in connection with or collateral to
a contract or agreement entered into on or after such date.

S6606A (ACTIVE) - Bill Details

See Assembly Version of this Bill:
A8747A
Current Committee:
Law Section:
General Obligations Law
Laws Affected:
Amd §5-322.1, Gen Ob L

S6606A (ACTIVE) - Bill Texts

view summary

Provides that provisions in construction contracts with respect to requirements for certain additional insurance coverage are void and unenforceable.

view sponsor memo
BILL NUMBER:S6606A

TITLE OF BILL: An act to amend the general obligations law, in relation
to the invalidity of additional insurance provisions

PURPOSE OR GENERAL IDEA OF BILL:

This bill would hold invalid any provision in a construction contract
that requires the purchase of additional insured coverage the scope of
which is prohibited under general obligations law section 5-322.1.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1 - Section 5-322.1 of the general obligations law declares void
and unenforceable indemnification clauses in construction contracts
where the indemnitee required the indemnitor to indemnify him for
damages due in whole or in part to the indemnitee's negligence. Indemni-
tees have circumvented this prohibition by requiring the indemnitee to
provide the indemnitor with additional insured coverage. This bill would
correct this unfair practice.

Section 2: Establishes the effective date.

JUSTIFICATION:

The New York State Legislature enacted 5-322.1 of the general obli-
gations law to declare 'broad form' hold harmless provisions in
construction contracts void and unenforceable. Additional insured
provisions in construction contracts flies in the face of this prohibi-
tion and allows indemnitees to circumvent the law. This bill would
correct this inequity. Similar legislation has recently been enacted in
the State of Texas.

PRIOR LEGISLATIVE HISTORY:

New bill.

FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

This act shall take effect on the thirtieth day after it shall have
become a law and shall apply only to any covenants, promises, agreements
or understandings in, or in connection with or collateral to a contract
or agreement entered into on or after such date.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 6606--A
    Cal. No. 1343

                            I N  S E N A T E

                            February 12, 2014
                               ___________

Introduced  by  Sen.  DeFRANCISCO -- read twice and ordered printed, and
  when printed to be committed to the Committee on Judiciary --  commit-
  tee  discharged  and  said bill committed to the Committee on Rules --
  reported favorably from said committee, ordered to  a  third  reading,
  passed  by Senate and delivered to the Assembly, recalled, vote recon-
  sidered, restored to third reading,  amended  and  ordered  reprinted,
  retaining its place in the order of third reading

AN ACT to amend the general obligations law, in relation to the invalid-
  ity of additional insurance provisions

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

  Section 1. Subdivision 1 of section 5-322.1 of the general obligations
law, as amended by chapter 67 of the laws of 1993, is amended to read as
follows:
  1.  A  covenant,  promise,  agreement  or  understanding  in,  or   in
connection with or collateral to a contract or agreement relative to the
construction,  alteration,  repair  or maintenance of a building, struc-
ture, appurtenances and  appliances  including  moving,  demolition  and
excavating connected therewith, purporting to indemnify or hold harmless
the  promisee  against liability for damage arising out of bodily injury
to persons or damage to property contributed to, caused by or  resulting
from  the negligence of the promisee, his agents or employees, or indem-
nitee, whether such negligence be in whole or in part, is against public
policy and is void and unenforceable; provided that this  section  shall
not affect the validity of any insurance contract, workers' compensation
agreement  or  other  agreement  issued by an admitted insurer; PROVIDED
FURTHER, THAT A PROVISION IN A CONSTRUCTION CONTRACT THAT  REQUIRES  THE
PURCHASE OF ADDITIONAL INSURED COVERAGE, OR ANY COVERAGE ENDORSEMENT, OR
PROVISION WITHIN AN INSURANCE POLICY PROVIDING ADDITIONAL INSURED COVER-
AGE,  IS VOID AND UNENFORCEABLE TO THE EXTENT THAT IT REQUIRES COVERAGE,
THE SCOPE OF WHICH IS PROHIBITED UNDER THIS SUBDIVISION.  This  subdivi-
sion shall not preclude a promisee requiring indemnification for damages
arising  out of bodily injury to persons or damage to property caused by

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13069-02-4

S. 6606--A                          2

or resulting from the negligence of a party  other  than  the  promisee,
whether or not the promisor is partially negligent.
  S  2.  This  act shall take effect on the thirtieth day after it shall
have become a law and shall  apply  only  to  any  covenants,  promises,
agreements  or understandings in, or in connection with or collateral to
a contract or agreement entered into on or after such date.

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