Bill Text: NY S06622 | 2017-2018 | General Assembly | Introduced

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

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Bill Title: 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.

Spectrum: Partisan Bill (Republican 8-0)

Status: (Vetoed) 2018-08-17 - VETOED MEMO.265 [S06622 Detail]

Download: New_York-2017-S06622-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          6622
                               2017-2018 Regular Sessions
                    IN SENATE
                                      June 7, 2017
                                       ___________
        Introduced  by  Sen.  RANZENHOFER -- read twice and ordered printed, and
          when printed to be committed to the Committee on Rules
        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  the
     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 defense or indemnification obligation included in a provision,
    13  clause, covenant, or agreement contained in, collateral to, or affecting
    14  a contract with a design  professional  involving  a  public  work  that
    15  requires a design professional to defend or indemnify a political subdi-
    16  vision,  its  agents,  contractors, subcontractors or suppliers shall be
    17  deemed void and against public policy and wholly unenforceable except to
    18  the extent that such damages were caused by or the result of the  negli-
    19  gence,  recklessness,  or willful misconduct of the design professional.
    20  This section shall not be waived or modified by  contractual  agreement,
    21  act, or omission of the parties.
    22    §  2.  The  public  authorities law is amended by adding a new section
    23  2879-d to read as follows:
    24    § 2879-d. Design professional liability. 1. As used in this section:
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11957-01-7
        S. 6622                             2
     1    a. The term "design professional" shall mean:
     2    (1)  An  individual  licensed  pursuant to articles one hundred forty-
     3  five, one hundred forty-seven, and one hundred forty-eight of the educa-
     4  tion law, or
     5    (2) Any corporation, limited liability company, partnership  or  other
     6  business  entity  legally  authorized to practice any of the professions
     7  regulated by articles one hundred forty-five, one  hundred  forty-seven,
     8  and one hundred forty-eight of the education law.
     9    b.  The term "state authority" shall mean a public authority or public
    10  benefit corporation created by or existing under  this  chapter  or  any
    11  other  law  of  the  state  of New York, with one or more of its members
    12  appointed by the governor or who serve as members by virtue of holding a
    13  civil office of the state, other than  an  interstate  or  international
    14  authority  or public benefit corporation, including subsidiaries of such
    15  public authority or public benefit corporation.
    16    c. The term "local authority" shall mean: (1) a  public  authority  or
    17  public  benefit corporation created by or existing under this chapter or
    18  any other law of the state of New York whose members do not hold a civil
    19  office of the state, are not appointed by the governor or are  appointed
    20  by  the  governor  specifically  upon  the  recommendation  of the local
    21  government or governments; (2) a not-for-profit  corporation  affiliated
    22  with,  sponsored  by,  or  created  by  a  county, city, town or village
    23  government; (3) a local industrial developmental agency or authority  or
    24  other  local  public benefit corporation; (4) an affiliate of such local
    25  authority; or (5) a land bank corporation created  pursuant  to  article
    26  sixteen of the not-for-profit corporation law.
    27    2.  Any defense or indemnification obligation included in a provision,
    28  clause, covenant, or agreement contained in, collateral to, or affecting
    29  a contract for design professional services involving a public work that
    30  requires a design professional to defend or indemnify a state  authority
    31  or local authority, its agents, contractors, subcontractors or suppliers
    32  shall  be deemed void and against public policy and wholly unenforceable
    33  except to the extent that such damages were caused by or the  result  of
    34  the  negligence,  recklessness,  or  willful  misconduct  of  the design
    35  professional. This section shall not be waived or modified by contractu-
    36  al agreement, act, or omission of the parties.
    37    § 3. Section 136-a of the state finance law is amended by adding a new
    38  subdivision 6 to read as follows:
    39    6. a. As used in this subdivision:
    40    (1) The term "design  professional"  shall  mean:  (i)  an  individual
    41  licensed  pursuant  to  articles  one  hundred  forty-five,  one hundred
    42  forty-seven, and one hundred forty-eight of the education law;  or  (ii)
    43  any  corporation,  limited liability company, partnership or other busi-
    44  ness entity legally authorized to practice any of the professions  regu-
    45  lated  by  articles one hundred forty-five, one hundred forty-seven, and
    46  one hundred forty-eight of the education law.
    47    (2) The term "state agency" shall mean (i) any state department,  (ii)
    48  any division, board, commission or bureau of any state department, (iii)
    49  the  state  university  of New York and the city university of New York,
    50  including all their constituent units, or (iv) a board,  a  majority  of
    51  whose  members  are  appointed by the governor or who serve by virtue of
    52  being state officers or employees as defined in subparagraph  (i),  (ii)
    53  or (iii) of paragraph (i) of subdivision one of section seventy-three of
    54  the public officers law.
    55    b.  Any defense or indemnification obligation included in a provision,
    56  clause, covenant, or agreement contained in, collateral to, or affecting
        S. 6622                             3
     1  a contract for design professional services involving a public work that
     2  requires a design professional to defend or indemnify such state agency,
     3  its agents, contractors, subcontractors or  suppliers  shall  be  deemed
     4  void  and  against  public policy and wholly unenforceable except to the
     5  extent that such damages were caused by or the result of the negligence,
     6  recklessness, or willful misconduct of  the  design  professional.  This
     7  section  shall  not be waived or modified by contractual agreement, act,
     8  or omission of the parties.
     9    § 4. This act shall take effect immediately.