Assembly Actions -
Senate Actions - UPPERCASE
|May 20, 2016||
referred to economic development
Assembly Bill A10276
2015-2016 Legislative Session
Archive: Last Bill Status - In Assembly Committee
- In Committee Assembly
- On Floor Calendar Assembly
- Passed Assembly
- Delivered to Governor
- Signed By Governor
2015-A10276 (ACTIVE) - Details
2015-A10276 (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.
2015-A10276 (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 10276 I N A S S E M B L Y May 20, 2016 ___________ Introduced by M. of A. BRAUNSTEIN -- read once and referred to the Committee on Economic Development 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 amount of retainage to the relevant parties WITHIN FIVE DAYS after receipt of THE ESCROWED retainage from the owner, (I) the owner[, contractor, or subcontractor, as the case may be, shall be subject to the payment of interest at the rate of one percent per month on the date retention was due and owing] SHALL BE SUBJECT TO THE PAYMENT OF INTER- EST, IN ADDITION TO THE ESCROW INTEREST, AT THE RATE OF ONE PERCENT PER MONTH COMMENCING ON THE DATE THE RETAINAGE WAS DUE TO BE RELEASED FROM ESCROW; AND (II) THE CONTRACTOR OR SUBCONTRACTOR, AS THE CASE MAY BE, EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted.
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