Bill Text: NY S05038 | 2013-2014 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Requires contracts between professional design firms and municipal corporations, state and local authorities, or state departments contain language concerning indemnification.

Spectrum: Slight Partisan Bill (Republican 3-1)

Status: (Introduced - Dead) 2014-02-10 - PRINT NUMBER 5038A [S05038 Detail]

Download: New_York-2013-S05038-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         5038
                              2013-2014 Regular Sessions
                                   I N  S E N A T E
                                      May 7, 2013
                                      ___________
       Introduced  by  Sen. MARTINS -- read twice and ordered printed, and when
         printed to be committed to the Committee on Local Government
       AN ACT to amend the general municipal law, the  public  authorities  law
         and  the  state finance law in relation to contracts with professional
         design firms
         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    S 103-H. INDEMNIFICATION LANGUAGE IN CONTRACTS.   1.  DEFINITIONS.  AS
    4  USED IN THIS SECTION:
    5    A.  THE  TERM "MUNICIPAL CORPORATION," SHALL MEAN A COUNTY, TOWN, CITY
    6  AND VILLAGE.
    7    B. THE TERM "PROFESSIONAL FIRM" SHALL BE DEFINED AS ANY INDIVIDUAL  OR
    8  SOLE  PROPRIETORSHIP,  PARTNERSHIP,  CORPORATION,  ASSOCIATION, OR OTHER
    9  LEGAL ENTITY PERMITTED BY LAW TO PRACTICE THE PROFESSIONS  OF  ARCHITEC-
   10  TURE, ENGINEERING OR SURVEYING.
   11    2.  ALL  CONTRACTS SUBJECT TO THIS ARTICLE SHALL INCLUDE THE FOLLOWING
   12  LANGUAGE:
   13    "TO THE FULLEST EXTENT PERMITTED BY LAW, THE PROFESSIONAL FIRM  AGREES
   14  TO INDEMNIFY AND HOLD THE MUNICIPAL CORPORATION, ITS OFFICERS, DIRECTORS
   15  AND EMPLOYEES HARMLESS FROM ALL THIRD PARTY CLAIMS, LIABILITIES, DAMAGES
   16  AND COSTS (INCLUDING ALL REASONABLE ATTORNEY'S FEES AND COST OF DEFENSE)
   17  TO  WHICH THE MUNICIPAL CORPORATION, ITS OFFICERS, DIRECTORS AND EMPLOY-
   18  EES MAY BE SUBJECT TO, ARISING OUT OF THE DEATH OR BODILY INJURY TO  ANY
   19  PERSON OR THE DESTRUCTION OR DAMAGE TO ANY PROPERTY TO THE EXTENT CAUSED
   20  BY THE NEGLIGENT ACTS, ERRORS OR OMISSIONS, OR WILLFUL MISCONDUCT OF THE
   21  PROFESSIONAL  FIRM'S PERFORMANCE OF PROFESSIONAL SERVICES PROVIDED UNDER
   22  THIS AGREEMENT AND THOSE OF ITS SUB-CONSULTANTS OR ANYONE FOR  WHOM  THE
   23  PROFESSIONAL FIRM IS LEGALLY LIABLE."
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD10794-01-3
       S. 5038                             2
    1    "TO  THE  FULLEST  EXTENT  PERMITTED BY LAW, THE MUNICIPAL CORPORATION
    2  AGREES TO INDEMNIFY AND HOLD THE PROFESSIONAL  FIRM  HARMLESS  FROM  ALL
    3  THIRD  PARTY  CLAIMS,  LIABILITIES,  DAMAGES  AND  COSTS  (INCLUDING ALL
    4  REASONABLE ATTORNEY'S FEES AND COST OF DEFENSE) TO THE EXTENT CAUSED  BY
    5  THE  NEGLIGENT  ACTS,  ERRORS OR OMISSIONS OF THE MUNICIPAL CORPORATION,
    6  ITS CONTRACTORS, CONSULTANTS OR ANYONE FOR  WHOM  THE  MUNICIPAL  CORPO-
    7  RATION IS LEGALLY LIABLE."
    8    S  2.  The  public  authorities law is amended by adding a new section
    9  2879-d to read as follows:
   10    S 2879-D. INDEMNIFICATION LANGUAGE IN CONTRACTS.   1. DEFINITIONS.  AS
   11  USED IN THIS SECTION:
   12    A.  THE TERM "STATE AUTHORITY" SHALL MEAN A PUBLIC AUTHORITY OR PUBLIC
   13  BENEFIT CORPORATION CREATED BY OR EXISTING UNDER  THIS  CHAPTER  OR  ANY
   14  OTHER  LAW  OF  THE  STATE  OF NEW YORK, WITH ONE OR MORE OF ITS MEMBERS
   15  APPOINTED BY THE GOVERNOR OR WHO SERVE AS MEMBERS BY VIRTUE OF HOLDING A
   16  CIVIL OFFICE OF THE STATE, OTHER THAN  AN  INTERSTATE  OR  INTERNATIONAL
   17  AUTHORITY  OR PUBLIC BENEFIT CORPORATION, INCLUDING SUBSIDIARIES OF SUCH
   18  PUBLIC AUTHORITY OR PUBLIC BENEFIT CORPORATION.
   19    B. THE TERM "LOCAL AUTHORITY" SHALL MEAN: (A) A  PUBLIC  AUTHORITY  OR
   20  PUBLIC  BENEFIT CORPORATION CREATED BY OR EXISTING UNDER THIS CHAPTER OR
   21  ANY OTHER LAW OF THE STATE OF NEW YORK WHOSE MEMBERS DO NOT HOLD A CIVIL
   22  OFFICE OF THE STATE, ARE NOT APPOINTED BY THE GOVERNOR OR ARE  APPOINTED
   23  BY  THE  GOVERNOR  SPECIFICALLY  UPON  THE  RECOMMENDATION  OF THE LOCAL
   24  GOVERNMENT OR GOVERNMENTS; (B) A NOT-FOR-PROFIT  CORPORATION  AFFILIATED
   25  WITH,  SPONSORED  BY,  OR  CREATED  BY  A  COUNTY, CITY, TOWN OR VILLAGE
   26  GOVERNMENT; (C) A LOCAL INDUSTRIAL DEVELOPMENTAL AGENCY OR AUTHORITY  OR
   27  OTHER  LOCAL  PUBLIC BENEFIT CORPORATION; (D) AN AFFILIATE OF SUCH LOCAL
   28  AUTHORITY; OR (E) A LAND BANK CORPORATION CREATED  PURSUANT  TO  ARTICLE
   29  SIXTEEN OF THE NOT-FOR-PROFIT CORPORATION LAW.
   30    C.  THE  TERM  "PROFESSIONAL  FIRM"  SHALL MEAN ANY INDIVIDUAL OR SOLE
   31  PROPRIETORSHIP, PARTNERSHIP, CORPORATION, ASSOCIATION,  OR  OTHER  LEGAL
   32  ENTITY  PERMITTED  BY  LAW  TO PRACTICE THE PROFESSIONS OF ARCHITECTURE,
   33  ENGINEERING OR SURVEYING.
   34    2. ALL CONTRACTS SUBJECT TO THIS ARTICLE SHALL INCLUDE  THE  FOLLOWING
   35  LANGUAGE:
   36    "TO  THE FULLEST EXTENT PERMITTED BY LAW, THE PROFESSIONAL FIRM AGREES
   37  TO INDEMNIFY AND HOLD THE  STATE  AND  LOCAL  AUTHORITY,  ITS  OFFICERS,
   38  DIRECTORS  AND  EMPLOYEES  HARMLESS FROM ALL THIRD PARTY CLAIMS, LIABIL-
   39  ITIES, DAMAGES AND COSTS (INCLUDING ALL REASONABLE ATTORNEY'S  FEES  AND
   40  COST  OF  DEFENSE) TO WHICH THE STATE AND LOCAL AUTHORITY, ITS OFFICERS,
   41  DIRECTORS AND EMPLOYEES MAY BE SUBJECT TO, ARISING OUT OF THE  DEATH  OR
   42  BODILY INJURY TO ANY PERSON OR THE DESTRUCTION OR DAMAGE TO ANY PROPERTY
   43  TO  THE  EXTENT  CAUSED  BY  THE NEGLIGENT ACTS, ERRORS OR OMISSIONS, OR
   44  WILLFUL MISCONDUCT OF THE PROFESSIONAL  FIRM'S  PERFORMANCE  OF  PROFES-
   45  SIONAL  SERVICES PROVIDED UNDER THIS AGREEMENT AND THOSE OF ITS SUB-CON-
   46  SULTANTS OR ANYONE FOR WHOM THE PROFESSIONAL FIRM IS LEGALLY LIABLE."
   47    "TO THE FULLEST EXTENT PERMITTED BY LAW, THE STATE AND LOCAL AUTHORITY
   48  AGREES TO INDEMNIFY AND HOLD THE PROFESSIONAL  FIRM  HARMLESS  FROM  ALL
   49  THIRD  PARTY  CLAIMS,  LIABILITIES,  DAMAGES  AND  COSTS  (INCLUDING ALL
   50  REASONABLE ATTORNEY'S FEES AND COST OF DEFENSE) TO THE EXTENT CAUSED  BY
   51  THE  NEGLIGENT ACTS, ERRORS OR OMISSIONS OF THE STATE AND LOCAL AUTHORI-
   52  TY, ITS CONTRACTORS, CONSULTANTS OR ANYONE FOR WHOM THE STATE AND  LOCAL
   53  AUTHORITY IS LEGALLY LIABLE."
   54    S 3. Section 136-a of the state finance law is amended by adding a new
   55  subdivision 6 to read as follows:
   56    6.  (A) DEFINITIONS. AS USED IN THIS SUBDIVISION:
       S. 5038                             3
    1    (I)  THE  TERM  "STATE  DEPARTMENT"  SHALL MEAN THOSE STATE GOVERNMENT
    2  DEPARTMENTS, DIVISIONS OR COMMISSIONS EMPOWERED BY THE  STATE  TO  ENTER
    3  INTO CONTRACTUAL AGREEMENTS ON BEHALF OF THE STATE OF NEW YORK.
    4    (II)  THE  TERM "PROFESSIONAL FIRM" SHALL BE DEFINED AS ANY INDIVIDUAL
    5  OR SOLE PROPRIETORSHIP, PARTNERSHIP, CORPORATION, ASSOCIATION, OR  OTHER
    6  LEGAL  ENTITY  PERMITTED BY LAW TO PRACTICE THE PROFESSIONS OF ARCHITEC-
    7  TURE, ENGINEERING OR SURVEYING.
    8    (B) ALL CONTRACTS SUBJECT TO THIS ARTICLE SHALL INCLUDE THE  FOLLOWING
    9  LANGUAGE:
   10    "TO  THE FULLEST EXTENT PERMITTED BY LAW, THE PROFESSIONAL FIRM AGREES
   11  TO INDEMNIFY AND HOLD THE STATE DEPARTMENT, ITS OFFICERS, DIRECTORS  AND
   12  EMPLOYEES HARMLESS FROM ALL THIRD PARTY CLAIMS, LIABILITIES, DAMAGES AND
   13  COSTS  (INCLUDING ALL REASONABLE ATTORNEY'S FEES AND COST OF DEFENSE) TO
   14  WHICH THE STATE DEPARTMENT, ITS OFFICERS, DIRECTORS AND EMPLOYEES MAY BE
   15  SUBJECT TO, ARISING OUT OF THE DEATH OR BODILY INJURY TO ANY  PERSON  OR
   16  THE  DESTRUCTION  OR  DAMAGE TO ANY PROPERTY TO THE EXTENT CAUSED BY THE
   17  NEGLIGENT ACTS, ERRORS  OR  OMISSIONS,  OR  WILLFUL  MISCONDUCT  OF  THE
   18  PROFESSIONAL  FIRM'S PERFORMANCE OF PROFESSIONAL SERVICES PROVIDED UNDER
   19  THIS AGREEMENT AND THOSE OF ITS SUB-CONSULTANTS OR ANY ONE FOR WHOM  THE
   20  DESIGN CONSULTANT IS LEGALLY LIABLE."
   21    "TO  THE  FULLEST EXTENT PERMITTED BY LAW, THE STATE DEPARTMENT AGREES
   22  TO INDEMNIFY AND HOLD THE PROFESSIONAL  FIRM  HARMLESS  FROM  ALL  THIRD
   23  PARTY  CLAIMS,  LIABILITIES, DAMAGES AND COSTS (INCLUDING ALL REASONABLE
   24  ATTORNEY'S FEES AND COST OF DEFENSE) TO THE EXTENT CAUSED BY THE  NEGLI-
   25  GENT ACTS, ERRORS OR OMISSIONS OF THE STATE DEPARTMENT, ITS CONTRACTORS,
   26  CONSULTANTS OR ANYONE FOR WHOM THE STATE DEPARTMENT IS LEGALLY LIABLE."
   27    S 4. This act shall take effect immediately.