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A10362 Actions:

BILL NOA10362B
 
05/21/2024referred to insurance
05/24/2024amend and recommit to insurance
05/24/2024print number 10362a
06/02/2024amend (t) and recommit to insurance
06/02/2024print number 10362b
06/04/2024reference changed to ways and means
06/06/2024reported referred to rules
06/06/2024reported
06/06/2024rules report cal.516
06/06/2024ordered to third reading rules cal.516
06/06/2024passed assembly
06/06/2024delivered to senate
06/06/2024REFERRED TO RULES
06/06/2024SUBSTITUTED FOR S9327B
06/06/20243RD READING CAL.1786
06/06/2024PASSED SENATE
06/06/2024RETURNED TO ASSEMBLY
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A10362 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A10362B
 
SPONSOR: Rules (Wallace)
  TITLE OF BILL: An act to amend the insurance law, in relation to authorizing the use of owner-controlled and contractor-controlled insurance; and in relation to requiring reports on contracts subject to owner-controlled and contrac- tor-controlled insurance   PURPOSE:: The purpose of this bill is to allow the Department of Transportation, The State University of New York at Buffalo, and the Niagara Frontier Transportation Authority to utilize owner-controlled and contractor- controlled insurance programs in connection with certain construction projects.   SUMMARY OF PROVISIONS:: This bill would allow the Department of Transportation, The State University of New York at Buffalo, and the Niagara Frontier Transporta- tion Authority to utilize owner-controlled and contractor-controlled insurance programs (OCIP/CCIP) in connection with the construction or reconstruction of the Kensington Expressway and the Humboldt Parkway, the construction of the Empire AI Research Institute, and the construction to extend or expand the railroad in the Niagara Frontier transportation district, respectively. To utilize owner-controlled and contractor-controlled insurance programs, such projects must have an estimated cost of no less than $5 million, or be subject to an owner- controlled insurance program that is undertaken pursuant to a project labor agreement. This bill would also require the Office of General Services to submit an annual report to the governor and legislature which documents each contract subject to an OCIPs and CCIPs used by the Department of Trans- portation, The State University of New York at Buffalo, and the Niagara Frontier Transportation Authority pursuant to the act.   JUSTIFICATION:: Last year, a law went into effect authorizing public works projects in New York City to utilize wrap-around insurance. This is because small contractors, including many small businesses and MWBEs, often struggle to find competitive insurance options that meet the standards required for public construction projects, and these contractors have a more difficult time obtaining affordable insurance. High insurance premiums make these businesses less competitive as prime contractors and subcon- tractors. "Wrap-up" insurance helps solve this issue. An owner-controlled insur- ance policy is a single policy held by the owner that covers the owner and contractors of all levels for the entire project or group of projects. A contractor-controlled insurance policy is held by the construction manager or general contractor and covers the owner as well. In a conventional project structure, in which many contractors provide insurance to the public owner, disputes between different carriers over liability and coverage consume considerable time and resources, escalat- ing costs. In contrast, "wrap-up" insurance can provide more efficient coverage through a single policy. Further, when a public owner imple- ments a "wrap-up" policy, the owner is relieved of the burden of moni- toring that each contractor maintains coverage if the project continues beyond the length of an applicable policy. This bill seeks to expanded the benefits afforded to New York City last year to the entire state.   LEGISLATIVE HISTORY:: New bill.   FISCAL IMPLICATIONS:: None.   EFFECTIVE DATE:: This act shall take effect immediately.
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A10362 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                        10362--B
 
                   IN ASSEMBLY
 
                                      May 21, 2024
                                       ___________
 
        Introduced  by COMMITTEE ON RULES -- (at request of M. of A. Wallace) --
          read once and referred to the  Committee  on  Insurance  --  committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to  said  committee  -- again reported from said committee with amend-
          ments, ordered reprinted as amended and recommitted to said committee

        AN ACT to amend the insurance law, in relation to authorizing the use of
          owner-controlled and contractor-controlled insurance; and in  relation
          to  requiring  reports  on  contracts  subject to owner-controlled and
          contractor-controlled insurance
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section 1. Paragraph 2 of subsection (a) of section 2504 of the insur-
     2  ance  law,  subparagraphs (A) and (B) as amended and subparagraph (C) as
     3  added by chapter 602 of the laws of 2023, is amended to read as follows:
     4    (2) In paragraph one hereof, "public corporation" and "public authori-
     5  ty" shall not include:
     6    (A) a public corporation  or  public  authority  created  pursuant  to
     7  agreement or compact with another state,
     8    (B) the city of New York, a public corporation or public authority, in
     9  connection  with  the  construction  of electrical generating and trans-
    10  mission facilities or construction, extensions and  additions  of  light
    11  rail or heavy rail rapid transit and commuter railroads, [or]
    12    (C)  the city of New York, the city school district of the city of New
    13  York, the New York city industrial development agency, the New York city
    14  health and hospitals corporation, or the New York city housing  authori-
    15  ty,  in  connection  with  a  contract the principal purpose of which is
    16  construction that (i) has an estimated cost of no less than five million
    17  dollars or (ii) is subject to an owner-controlled insurance program  for
    18  projects, provided that any contract undertaken pursuant to this subpar-
    19  agraph  that  has  an estimated cost of five million dollars or more may
    20  only be undertaken pursuant to a project labor agreement as such term is
    21  defined in section two hundred twenty-two of the labor law,
    22    (D) the state  department  of  transportation  in  connection  with  a
    23  contract or contracts, the principal purpose of which is construction or
    24  reconstruction  of state route 33, also known as the Kensington Express-
    25  way, and the Humboldt Parkway, in the city of Buffalo, that (i)  has  an
    26  estimated  cost  of  no  less than five million dollars, or (ii) that is
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD15222-05-4

        A. 10362--B                         2
 
     1  subject to an owner-controlled insurance program for projects,  provided
     2  that  any contract undertaken pursuant  to this subparagraph may only be
     3  undertaken pursuant to a   project   labor agreement   as such  term  is
     4  defined in section two hundred twenty-two of the labor law,
     5    (E)  the state university of New York at Buffalo, in coordination with
     6  the state university construction fund as created  pursuant  to  article
     7  eight-A  of  the  education  law,  the  principal  purpose  of  which is
     8  construction at the state university of New York at  Buffalo  and  shall
     9  include  without  limitation the empire AI research institute authorized
    10  pursuant to section three hundred sixty-one of the economic  development
    11  law,  in  connection  with a contract or contracts that (i) has an esti-
    12  mated cost of no less than five million dollars, or (ii) that is subject
    13  to an owner-controlled insurance program for projects, provided that any
    14  contract undertaken pursuant to this subparagraph may only be undertaken
    15  pursuant to a project labor agreement as such term is defined in section
    16  two hundred twenty-two of the labor law, or
    17    (F) the  Niagara  Frontier  transportation  authority  as  established
    18  pursuant  to  article  five  of the public authorities law in connection
    19  with a  contract  or  contracts,  the  principal  purpose  of  which  is
    20  construction  to  extend  or expand the railroad in the Niagara Frontier
    21  transportation district, that (i) has an estimated cost of no less  than
    22  five  million  dollars,  or  (ii) that is subject to an owner-controlled
    23  insurance program for projects, provided that  any  contract  undertaken
    24  pursuant  to  this  subparagraph  may  only  be undertaken pursuant to a
    25  project labor agreement as such term is defined in section  two  hundred
    26  twenty-two of the labor law.
    27    §  2. A report shall be submitted no later than September 30, 2025 and
    28  annually thereafter, to the governor, the  temporary  president  of  the
    29  senate and the speaker of the assembly by the office of general services
    30  in  coordination with and on behalf of the department of transportation,
    31  state university of New York at Buffalo, and the Niagara Frontier trans-
    32  portation  authority  containing  information  regarding  each  contract
    33  subject  to  an  insurance program authorized pursuant to this act. Such
    34  report shall include for each contract awarded in the  preceding  fiscal
    35  year:  a  description of the project to be implemented by such contract;
    36  information regarding the procurement process for  each  such  contract,
    37  including  the list of responding entities that demonstrated the general
    38  capability to perform such contract, to the  extent  such  contract  was
    39  awarded on a best-value basis or such a list is otherwise available; the
    40  total  award value of each contract; and an explanation of the estimated
    41  savings resulting from using owner-controlled  or  contractor-controlled
    42  insurance  in  conjunction  with  such  contract. Such report shall also
    43  include for each contract concluding in the  preceding  fiscal  year:  a
    44  description  of  the  dispute resolution processes used for insurance or
    45  liability disputes arising during such contract's  performance,  to  the
    46  extent  not  legally  privileged;  the  total  cost  of such contract; a
    47  comparative  description  of  work  site  safety  relative  to   similar
    48  construction  projects  not  subject  to an insurance program authorized
    49  under this act; the participation rate of  and  total  dollar  value  of
    50  monies paid to minority- and women-owned business enterprises under such
    51  contracts, and a separate listing of the participation rate of and total
    52  dollar value of monies paid to minority- and women-owned business enter-
    53  prises  for  projects using contractor-controlled insurance that cost no
    54  less than five million dollars and  no  more  than  twenty-five  million
    55  dollars.
    56    § 3. This act shall take effect immediately.
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