S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________

           S. 800                                                   A. 2369

                              2009-2010 Regular Sessions

                             S E N A T E - A S S E M B L Y

                                   January 15, 2009
                                      ___________

       IN  SENATE  --  Introduced  by  Sens.  BRESLIN,  HUNTLEY,  SCHNEIDERMAN,
         STACHOWSKI, STAVISKY, THOMPSON -- read twice and ordered printed,  and
         when printed to be committed to the Committee on Judiciary

       IN  ASSEMBLY  -- Introduced by M. of A. CUSICK -- read once and referred
         to the Committee on Judiciary

       AN ACT to amend the general obligations law, in relation  to  a  subcon-
         tractor's  or  materialman's  right to file a claim and/or commence an
         action upon a payment bond

         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:

    1    Section 1. Subdivision 2 of section 5-322.1 of the general obligations
    2  law is renumbered subdivision 3 and a new subdivision 2 is added to read
    3  as follows:
    4    2.   A  COVENANT,  PROMISE,  AGREEMENT  OR  UNDERSTANDING  IN,  OR  IN
    5  CONNECTION WITH OR COLLATERAL TO A CONTRACT OR AGREEMENT RELATIVE TO THE
    6  CONSTRUCTION, ALTERATION, REPAIR OR MAINTENANCE OF  A  BUILDING,  STRUC-
    7  TURE,  APPURTENANCES  AND  APPLIANCES  INCLUDING  MOVING, DEMOLITION AND
    8  EXCAVATING CONNECTED THEREWITH, PURPORTING TO  CONDITION  A  SUBCONTRAC-
    9  TOR'S  OR  MATERIALMAN'S RIGHT TO FILE A CLAIM AND/OR COMMENCE AN ACTION
   10  ON A PAYMENT BOND ON EXHAUSTION  OF  ANOTHER  LEGAL  REMEDY  IS  AGAINST
   11  PUBLIC POLICY AND IS VOID AND UNENFORCEABLE; PROVIDED THAT THIS SUBDIVI-
   12  SION  SHALL  NOT AFFECT THE VALIDITY OF ANY INSURANCE CONTRACT, WORKERS'
   13  COMPENSATION AGREEMENT OR OTHER AGREEMENT ISSUED BY AN ADMITTED INSURER.
   14    S 2. This act shall take effect immediately.



        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD00278-01-9