Add §103-h, Gen Muni L; add §2879-d, Pub Auth L; amd §136-a, St Fin L
 
Relates to the liability of design professionals; prohibits broad indemnification of a state or local agency or political subdivision involving public work for contracts executed on or after January 1, 2019.
STATE OF NEW YORK
________________________________________________________________________
8293--A
2017-2018 Regular Sessions
IN ASSEMBLY
June 6, 2017
___________
Introduced by M. of A. MORELLE, LUPARDO, THIELE, SCHIMMINGER, SANTABAR-
BARA, WEPRIN, McDONOUGH, CROUCH, JOHNS, STECK, WOERNER, TAYLOR, HYND-
MAN, CUSICK, STIRPE, B. MILLER, RODRIGUEZ -- Multi-Sponsored by -- M.
of A. HEVESI, MORINELLO -- read once and referred to the Committee on
Corporations, Authorities and Commissions -- recommitted to the
Committee on Corporations, Authorities and Commissions in accordance
with Assembly Rule 3, sec. 2 -- committee discharged, bill amended,
ordered reprinted as amended and recommitted to said committee
AN ACT to amend the general municipal law, the public authorities law
and the state finance law, in relation to liability of design profes-
sionals
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The general municipal law is amended by adding a new
2 section 103-h to read as follows:
3 § 103-h. Design professional liability. 1. For purposes of this
4 section, the term "design professional" shall mean:
5 a. An individual licensed pursuant to articles one hundred forty-five,
6 one hundred forty-seven, and one hundred forty-eight of the education
7 law; or
8 b. Any corporation, limited liability company, partnership or other
9 business entity legally authorized to practice any of the professions
10 regulated by articles one hundred forty-five, one hundred forty-seven,
11 and one hundred forty-eight of the education law.
12 2. Any provision, clause, covenant, or agreement contained in, collat-
13 eral to, or affecting a contract executed on or after January first, two
14 thousand nineteen between a municipal corporation, as defined in section
15 sixty-six of the general construction law, and a design professional for
16 professional design services related to the design, construction,
17 repair, or maintenance of any public building, structure, highway,
18 bridge, viaduct, water or sewer system, or other public facility that
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD11957-02-8
A. 8293--A 2
1 requires a design professional to defend or indemnify such municipal
2 corporation, its agents, contractors, subcontractors or suppliers shall
3 be deemed void and against public policy and wholly unenforceable,
4 except as to claims that are caused by or the result of the negligence,
5 recklessness, or willful misconduct of the design professional. Any
6 contractual obligation permitted under this section shall be limited and
7 enforceable only to the degree or percentage or fault attributable to
8 such design professional.
9 § 2. The public authorities law is amended by adding a new section
10 2879-d to read as follows:
11 § 2879-d. Design professional liability. 1. As used in this section:
12 a. The term "design professional" shall mean:
13 (1) An individual licensed pursuant to articles one hundred forty-
14 five, one hundred forty-seven, and one hundred forty-eight of the educa-
15 tion law, or
16 (2) Any corporation, limited liability company, partnership or other
17 business entity legally authorized to practice any of the professions
18 regulated by articles one hundred forty-five, one hundred forty-seven,
19 and one hundred forty-eight of the education law.
20 b. The term "state authority" shall mean a public authority or public
21 benefit corporation created by or existing under this chapter or any
22 other law of the state of New York, with one or more of its members
23 appointed by the governor or who serve as members by virtue of holding a
24 civil office of the state, other than an interstate or international
25 authority or public benefit corporation, including subsidiaries of such
26 public authority or public benefit corporation.
27 c. The term "local authority" shall mean: (1) a public authority or
28 public benefit corporation created by or existing under this chapter or
29 any other law of the state of New York whose members do not hold a civil
30 office of the state, are not appointed by the governor or are appointed
31 by the governor specifically upon the recommendation of the local
32 government or governments; (2) a not-for-profit corporation affiliated
33 with, sponsored by, or created by a county, city, town or village
34 government; (3) a local industrial developmental agency or authority or
35 other local public benefit corporation; (4) an affiliate of such local
36 authority; or (5) a land bank corporation created pursuant to article
37 sixteen of the not-for-profit corporation law.
38 2. Any provision, clause, covenant, or agreement contained in, collat-
39 eral to, or affecting a contract executed on or after January first, two
40 thousand nineteen between a state authority or local authority and a
41 design professional for professional design services related to the
42 design, construction, repair, or maintenance of any public building,
43 structure, highway, bridge, viaduct, water or sewer system, or other
44 public facility that requires a design professional to defend or indem-
45 nify such state authority or local authority, its agents, contractors,
46 subcontractors or suppliers shall be deemed void and against public
47 policy and wholly unenforceable, except as to claims that are caused by
48 or the result of the negligence, recklessness, or willful misconduct of
49 the design professional. Any contractual obligation permitted under this
50 section shall be limited and enforceable only to the degree or percent-
51 age or fault attributable to such design professional.
52 § 3. Section 136-a of the state finance law is amended by adding a new
53 subdivision 6 to read as follows:
54 6. a. As used in this subdivision:
55 (1) The term "design professional" shall mean: (i) an individual
56 licensed pursuant to articles one hundred forty-five, one hundred
A. 8293--A 3
1 forty-seven, and one hundred forty-eight of the education law; or (ii)
2 any corporation, limited liability company, partnership or other busi-
3 ness entity legally authorized to practice any of the professions regu-
4 lated by articles one hundred forty-five, one hundred forty-seven, and
5 one hundred forty-eight of the education law.
6 (2) The term "state agency" shall mean (i) any state department, (ii)
7 any division, board, commission or bureau of any state department, (iii)
8 the state university of New York and the city university of New York,
9 including all their constituent units, or (iv) a board, a majority of
10 whose members are appointed by the governor or who serve by virtue of
11 being state officers or employees as defined in subparagraph (i), (ii)
12 or (iii) of paragraph (i) of subdivision one of section seventy-three of
13 the public officers law.
14 b. Any provision, clause, covenant, or agreement contained in, collat-
15 eral to, or affecting a contract executed on or after January first, two
16 thousand nineteen between a state agency and a design professional for
17 professional design services related to the design, construction,
18 repair, or maintenance of any public building, structure, highway,
19 bridge, viaduct, water or sewer system, or other public facility that
20 requires a design professional to defend or indemnify such state agency,
21 its agents, contractors, subcontractors or suppliers shall be deemed
22 void and against public policy and wholly unenforceable, except as to
23 claims that are caused by or the result of the negligence, recklessness,
24 or willful misconduct of the design professional. Any contractual obli-
25 gation permitted under this section shall be limited and enforceable
26 only to the degree or percentage or fault attributable to such design
27 professional.
28 § 4. This act shall take effect immediately.