§ 2504. Designation of particular insurer, agent or broker for
insurance in certain public construction contracts. (a) (1) No officer
or employee of this state, or of any public corporation as defined in
section sixty-six of the general construction law, or of any public
authority, and no person acting or purporting to act on behalf of such
officer, employee, public corporation or public authority, shall, with
respect to any public building or construction contract which is about
to be, or which has been, competitively bid, require the bidder to make
application to any particular insurance company, agent or broker for or
to obtain or procure therefrom, any surety bond or contract of insurance
specified in connection with such contract, or specified by any law,
general, special or local.

(2) In paragraph one hereof, "public corporation" and "public
authority" shall not include:

(A) a public corporation or public authority created pursuant to
agreement or compact with another state,

(B) the city of New York, a public corporation or public authority, in
connection with the construction of electrical generating and
transmission facilities or construction, extensions and additions of
light rail or heavy rail rapid transit and commuter railroads, or

(C) the city of New York, the city school district of the city of New
York, the New York city industrial development agency, the New York city
health and hospitals corporation, or the New York city housing
authority, in connection with a contract the principal purpose of which
is construction that (i) has an estimated cost of no less than five
million dollars or (ii) is subject to an owner-controlled insurance
program for projects, provided that any contract undertaken pursuant to
this subparagraph that has an estimated cost of five million dollars or
more may only be undertaken pursuant to a project labor agreement as
such term is defined in section two hundred twenty-two of the labor law.

(b) No such officer or employee, and no person, firm or corporation
acting or purporting to act on behalf of such officer or employee, shall
negotiate, make application for, obtain or procure any of such surety
bonds or contracts of insurance (except contracts of insurance for
builders risk or owners protective liability) which can be obtained or
procured by the bidder, contractor or subcontractor.

(c) This section shall not, however, prevent the exercise by such
officer or employee on behalf of the state or such public corporation or
public authority of its right to approve the form, sufficiency, or
manner of execution, of surety bonds or contracts of insurance furnished
by the insurance company selected by the bidder to underwrite such bonds
or contracts. Any provisions in any invitation for bids, or in any of
the contract documents, in conflict herewith are contrary to the public
policy of this state.