Senate Bill S5231

                                 
BILL NUMBER: S5231

SPONSOR: COMRIE
 
TITLE OF BILL:

An act to amend the penal law, in relation to establishing the crime of
staging a construction site accident

 
PURPOSE OR GENERAL IDEA OF BILL:

This critical piece of legislation is designed to crack down on a grow-
ing and pernicious form of insurance fraud: staged accidents on
construction sites.

 
SUMMARY OF PROVISIONS:

Section 1 amends section 176 of the penal law to make staging a
construction. site accident for the purposes of insurance fraud a class
E felony.

Section 2 provides an effective date.

              

 
JUSTIFICATION:

New York is facing a disturbing rise in staged accidents on construction
sites for the purposes of insurance fraud. These fraudulent acts have
emerged as a pervasive insurance scam leading to inflated costs in
construction and housing throughout New York State.

Fraudulent staged accidents have led to a surge in insurance costs for
construction projects and housing. Contractors and developers have
become burdened with exorbitant insurance premiums which are ultimately
passed down to consumers and result in higher housing expenses for New
Yorkers.

These acts are orchestrated by organized crime syndicates that recruit
or otherwise coerce desperate individuals into staging these accidents
and then manipulate the insurance and legal systems in order to receive
exorbitant settlements. These acts also lead to delays in infrastructure
development and the completion of essential projects.

This legislation will make the staging of a construction site accident
for the purposes of insurance fraud a class E felony. This act is
crucial in safeguarding the integrity of our construction and insurance
industries and mitigating the financial housing-burden for our citizens.
At a time when our state is facing an unprecedented housing affordabili-
ty crisis, we must do whatever we can to curb housing costs and promote
a healthy and vibrant economy.

 
PRIOR LEGISLATIVE HISTORY:

2024: 88413A BRESLIN

 
FISCAL IMPLICATIONS:

None

 
FOR STATE AND LOCAL GOVERNMENTS:

None

 
EFFECTIVE DATE:
This act shall take effect on the one hundred eightieth day after it
shall have become a law.