Exempts 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 construction contracts that have an estimated cost of no less than five million dollars or is subject to an owner-controlled insurance program for projects from requirements regarding application to a particular insurance company, agent or broker.
STATE OF NEW YORK
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7385
2023-2024 Regular Sessions
IN SENATE
May 22, 2023
___________
Introduced by Sen. SANDERS -- read twice and ordered printed, and when
printed to be committed to the Committee on Insurance
AN ACT to amend the insurance law, in relation to exempting certain
public construction projects from certain restrictions
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subparagraphs (A) and (B) of paragraph 2 of subdivision (a)
2 of section 2504 of the insurance law are amended, and a new subparagraph
3 (C) is added to read as follows:
4 (A) a public corporation or public authority created pursuant to
5 agreement or compact with another state, [or]
6 (B) the city of New York, a public corporation or public authority, in
7 connection with the construction of electrical generating and trans-
8 mission facilities or construction, extensions and additions of light
9 rail or heavy rail rapid transit and commuter railroads[.], or
10 (C) the city of New York, the city school district of the city of New
11 York, the New York city industrial development agency, the New York city
12 health and hospitals corporation, or the New York city housing authori-
13 ty, in connection with a contract the principal purpose of which is
14 construction that (i) has an estimated cost of no less than five million
15 dollars or (ii) is subject to an owner-controlled insurance program for
16 projects, provided that any contract undertaken pursuant to this subpar-
17 agraph that has an estimated cost of five million dollars or more may
18 only be undertaken pursuant to a project labor agreement as such term is
19 defined in section two hundred twenty-two of the labor law.
20 § 2. A report shall be submitted no later than September 30, 2024 and
21 annually thereafter, to the governor, the temporary president of the
22 senate and the speaker of the assembly by the city of New York on behalf
23 of its agencies, the New York city housing authority, the city school
24 district of the city of New York, the New York city industrial develop-
25 ment agency, and the New York city health and hospitals corporation
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD11422-04-3
S. 7385 2
1 containing information regarding each contract subject to an insurance
2 program authorized pursuant to this act. Such report shall include for
3 each contract awarded in the preceding fiscal year: a description of
4 the project to be implemented by such contract; information regarding
5 the procurement process for each such contract, including the list of
6 responding entities that demonstrated the general capability to perform
7 such contract, to the extent such contract was awarded on a best-value
8 basis or such a list is otherwise available; the total award value of
9 each contract; and an explanation of the estimated savings resulting
10 from using owner-controlled or contractor-controlled insurance in
11 conjunction with such contract. Such report shall also include for each
12 contract concluding in the preceding fiscal year: a description of the
13 dispute resolution processes used for insurance or liability disputes
14 arising during such contract's performance, to the extent not legally
15 privileged; the total cost of such contract; a comparative description
16 of work site safety relative to similar construction projects not
17 subject to an insurance program authorized under this act; the partic-
18 ipation rate of and total dollar value of monies paid to minority- and
19 women-owned business enterprises, emerging business enterprises, and
20 locally-based business enterprises certified pursuant to section 1304 of
21 the New York city charter under such contracts, and a separate listing
22 of the participation rate of and total dollar value of monies paid to
23 minority- and women-owned business enterprises, emerging business enter-
24 prises, and locally-based business enterprises for projects using
25 contractor-controlled insurance that cost no less than five million
26 dollars and no more than twenty-five million dollars.
27 § 3. This act shall take effect immediately.
