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Speaker Carl E. Heastie
 
     
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A07317 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
 submitted in accordance with Assembly Rule III, Sec 1(f)




 
BILL NUMBER: A7317A
 
SPONSOR: Braunstein

 
TITLE OF BILL:
 
An act to amend the insurance law, in relation to establishing the New
York small contractor relief act; provides for the repeal upon expira-
tion thereof; and making an appropriation therefor
 
 
PURPOSE:
 
To create a small contractor captive insurance company
 
 
SUMMARY OF PROVISIONS:
 
Section 1 establishes that this act shall be known as the New York small
construction contractor captive insurance pilot program
 
Section2legislative intent
 
Section3amends the insurance law by adding a new article70-A

Section4provides an expiration date for the pilot and establishes a
reporting requirement on the performance of the pilot program and its
impact upon the small construction contractor sector
 
Section 5 establishes necessary appropriations for the pilot program
 
Section 6 sets forth the effective date
 
 
JUSTIFICATION:
 
This bill would establish the "New York Small Contractor Relief Act."
Liability insurance plays an important role in providing financial secu-
rity to involved parties. When trying to access insurance coverage, New
York small construction contractors and certified minority and women-
owned construction contractors have been challenged by both high premium
costs and a lack of market capacity.  These challenges are acute for
small construction contractors and minority and women-owned construction
contractors working for public owners_
 
This act will provide for a private market insurance solution for small
construction contractors, and minority and women-owned construction
contractors, through the creation of up to two captives under this act.
 
 
LEGISLATIVE HISTORY:
 
New bill.
 
 
FISCAL IMPLICATIONS:
 
To be determined.
 
 
EFFECTIVE DATE:
This act shall take effect 180 days from its enactment into law.
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