Bill Text: NY S09327 | 2023-2024 | General Assembly | Amended

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Bill Title: Authorizes the use of owner-controlled and contractor-controlled insurance for certain construction projects; requires the department of financial services to report on the use of such insurance.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-05-23 - PRINT NUMBER 9327A [S09327 Detail]

Download: New_York-2023-S09327-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                         9327--A

                    IN SENATE

                                      May 13, 2024
                                       ___________

        Introduced  by  Sen.  RYAN  --  read twice and ordered printed, and when
          printed to be committed to the Committee  on  Insurance  --  committee
          discharged, bill amended, 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 to amend
          chapter 602 of the laws of 2023, amending the insurance  law  relating
          to   exempting  certain  public  construction  projects  from  certain
          restrictions, in relation to expanding a report on the use  of  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, or

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD15222-02-4
        S. 9327--A                          2

     1    (D)  the  state of New York, a school district, an industrial develop-
     2  ment agency, a municipality, a  public    authority,    or  a  municipal
     3  authority, in connection with a contract, the principal purpose of which
     4  is  construction,  that  is    subject  to an owner-controlled insurance
     5  program for projects, provided that any contract undertaken pursuant  to
     6  this  subparagraph  may only be undertaken pursuant to a  project  labor
     7  agreement  as such term is defined in section two hundred twenty-two  of
     8  the labor law.
     9    § 2. Section 2 of chapter 602 of the laws of 2023, amending the insur-
    10  ance law relating to exempting certain public construction projects from
    11  certain restrictions, is amended to read as follows:
    12    §  2.  A  report shall be submitted no later than September 30, [2024]
    13  2025 and annually thereafter, to the governor, the  temporary  president
    14  of  the senate and the speaker of the assembly by the [city of New York]
    15  department of financial services on behalf of [its] state agencies, [the
    16  New York city housing authority, the city school district of the city of
    17  New York, the New York city industrial development agency, and  the  New
    18  York city health and hospitals corporation] school districts, industrial
    19  development  agencies,  public authorities, municipalities and municipal
    20  authorities in the state containing information regarding each  contract
    21  subject  to  an  insurance program authorized pursuant to this act. Such
    22  report shall include for each contract awarded in the  preceding  fiscal
    23  year:   a description of the project to be implemented by such contract;
    24  information regarding the procurement process for  each  such  contract,
    25  including  the list of responding entities that demonstrated the general
    26  capability to perform such contract, to the  extent  such  contract  was
    27  awarded on a best-value basis or such a list is otherwise available; the
    28  total  award value of each contract; and an explanation of the estimated
    29  savings resulting from using owner-controlled  or  contractor-controlled
    30  insurance  in  conjunction  with  such  contract. Such report shall also
    31  include for each contract concluding in the preceding fiscal  year:    a
    32  description  of  the  dispute resolution processes used for insurance or
    33  liability disputes arising during such contract's  performance,  to  the
    34  extent  not  legally  privileged;  the  total  cost  of such contract; a
    35  comparative  description  of  work  site  safety  relative  to   similar
    36  construction  projects  not  subject  to an insurance program authorized
    37  under this act; the participation rate of  and  total  dollar  value  of
    38  monies  paid to minority- and women-owned business enterprises, emerging
    39  business enterprises, and locally-based business  enterprises  certified
    40  pursuant  to  section  1304  of  the  New  York  city charter under such
    41  contracts, and a separate listing of the participation rate of and total
    42  dollar value of monies paid to minority- and women-owned business enter-
    43  prises, emerging business enterprises, and locally-based business enter-
    44  prises for projects using contractor-controlled insurance that  cost  no
    45  less  than  five  million  dollars  and no more than twenty-five million
    46  dollars. All state agencies, school  districts,  industrial  development
    47  agencies,  public  authorities, municipalities and municipal authorities
    48  shall provide all information required by the  department  of  financial
    49  services to complete the report required by this act.
    50    § 3. This act shall take effect immediately.