Assembly Bill A4905

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4905
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 10, 2025
                                ___________
 
 Introduced  by M. of A. HUNTER, COLTON, SIMON, JACOBSON -- read once and
   referred 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]
 THEIR subcontractor or legal representative,  for  the  construction  or
 demolition  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
 interest  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 estimated 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09174-01-5
              

 A. 4905                             2
 
 LICENSED IN THE STATE OF 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]  THEIR  subcontractors  and  to  all persons
 furnishing labor or materials to the contractor or [his  or  her]  THEIR
 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.