STATE OF NEW YORK ________________________________________________________________________ 10362--A 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 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. LBD15222-03-4
A. 10362--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.