S T A T E O F N E W Y O R K
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5483
2021-2022 Regular Sessions
I N S E N A T E
March 8, 2021
___________
Introduced by Sen. BRESLIN -- read twice and ordered printed, and when
printed to be committed to the Committee on Judiciary
AN ACT to amend the lien law, in relation to requiring a surety bond for
contractors and subcontractors where no public fund has been estab-
lished for the financing of a public improvement
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 5 of the lien law, as amended by chapter 155 of the
laws of 2004, is amended to read as follows:
§ 5. Liens under contracts for public improvements. A person perform-
ing labor for or furnishing materials to a contractor, his or her
subcontractor or legal representative, for the construction or demoli-
tion of a public improvement pursuant to a contract by such contractor
with the state or a public corporation, and any trust fund to which
benefits and wage supplements are due or payable for the benefit of such
person performing labor, shall have a lien for the principal and inter-
est of the value or agreed price of such labor, including benefits and
wage supplements due or payable for the benefit of any person performing
labor, or materials upon the moneys of the state or of such corporation
applicable to the construction or demolition of such improvement, to the
extent of the amount due or to become due on such contract, and under a
judgment of the court of claims awarded to the contractor for damages
arising from the breach of such contract by the state, or awarded for
furnishing labor or materials not contemplated by the provisions of said
contract, upon filing a notice of lien as prescribed in this article,
except as hereinafter in this article provided. Where no public fund has
been established for the financing of a public improvement with esti-
mated cost in excess of two hundred fifty thousand dollars, the chief
financial officer of the public owner shall require the private entity
for whom the public improvement is being made to post, or cause to be
posted, a SURETY bond ISSUED BY A SURETY DULY LICENSED IN THE STATE OF
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01239-01-1
S. 5483 2
NEW YORK or [other form of undertaking] AN IRREVOCABLE LETTER OF CREDIT,
IN AN AMOUNT EQUAL TO THE COST OF THE CONSTRUCTION WORK guaranteeing
prompt payment of moneys due to the contractor, his or her subcontrac-
tors and to all persons furnishing labor or materials to the contractor
or his or her subcontractors in the prosecution of the work on the
public improvement.
§ 2. This act shall take effect immediately and shall apply to
contracts entered into on or after such effective date.