Bill Text: NY S06059 | 2023-2024 | General Assembly | Introduced
Bill Title: Prohibits broad indemnification by a design professional of a state or local agency or political subdivision involving public work for contracts except to the extent that damages were caused by or the result of the negligence, recklessness, or willful misconduct of the design professional.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced) 2024-05-06 - RECOMMIT, ENACTING CLAUSE STRICKEN [S06059 Detail]
Download: New_York-2023-S06059-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 6059 2023-2024 Regular Sessions IN SENATE March 27, 2023 ___________ Introduced by Sen. KENNEDY -- read twice and ordered printed, and when printed to be committed to the Committee on Procurement and Contracts 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 twenty-four between a municipal corporation, as defined in 15 section sixty-six of the general construction law, and a design profes- 16 sional for professional design services related to the design, 17 construction, repair, or maintenance of any public building, structure, 18 highway, bridge, viaduct, water or sewer system, or other public facili- 19 ty that requires a design professional to defend or indemnify such 20 municipal corporation, its agents, contractors, subcontractors or 21 suppliers shall be deemed void and against public policy and wholly 22 unenforceable, except as to claims that are caused by or the result of 23 the negligence, recklessness, or willful misconduct of the design 24 professional. Any contractual obligation permitted under this section EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD10182-01-3S. 6059 2 1 shall be limited and enforceable only to the degree or percentage or 2 fault attributable to such design professional. 3 § 2. The public authorities law is amended by adding a new section 4 2879-d to read as follows: 5 § 2879-d. Design professional liability. 1. As used in this section: 6 a. The term "design professional" shall mean: 7 (1) An individual licensed pursuant to articles one hundred forty- 8 five, one hundred forty-seven, and one hundred forty-eight of the educa- 9 tion law, or 10 (2) Any corporation, limited liability company, partnership or other 11 business entity legally authorized to practice any of the professions 12 regulated by articles one hundred forty-five, one hundred forty-seven, 13 and one hundred forty-eight of the education law. 14 b. The term "state authority" shall mean a public authority or public 15 benefit corporation created by or existing under this chapter or any 16 other law of the state of New York, with one or more of its members 17 appointed by the governor or who serve as members by virtue of holding a 18 civil office of the state, other than an interstate or international 19 authority or public benefit corporation, including subsidiaries of such 20 public authority or public benefit corporation. 21 c. The term "local authority" shall mean: (1) a public authority or 22 public benefit corporation created by or existing under this chapter or 23 any other law of the state of New York whose members do not hold a civil 24 office of the state, are not appointed by the governor or are appointed 25 by the governor specifically upon the recommendation of the local 26 government or governments; (2) a not-for-profit corporation affiliated 27 with, sponsored by, or created by a county, city, town or village 28 government; (3) a local industrial development agency or authority or 29 other local public benefit corporation; (4) an affiliate of such local 30 authority; or (5) a land bank corporation created pursuant to article 31 sixteen of the not-for-profit corporation law. 32 2. Any provision, clause, covenant, or agreement contained in, collat- 33 eral to, or affecting a contract executed on or after January first, two 34 thousand twenty-four between a state authority or local authority and a 35 design professional for professional design services related to the 36 design, construction, repair, or maintenance of any public building, 37 structure, highway, bridge, viaduct, water or sewer system, or other 38 public facility that requires a design professional to defend or indem- 39 nify such state authority or local authority, its agents, contractors, 40 subcontractors or suppliers shall be deemed void and against public 41 policy and wholly unenforceable, except as to claims that are caused by 42 or the result of the negligence, recklessness, or willful misconduct of 43 the design professional. Any contractual obligation permitted under this 44 section shall be limited and enforceable only to the degree or percent- 45 age or fault attributable to such design professional. 46 § 3. Section 136-a of the state finance law is amended by adding a new 47 subdivision 6 to read as follows: 48 6. a. As used in this subdivision: 49 (1) The term "design professional" shall mean: (i) an individual 50 licensed pursuant to articles one hundred forty-five, one hundred 51 forty-seven, and one hundred forty-eight of the education law; or (ii) 52 any corporation, limited liability company, partnership or other busi- 53 ness entity legally authorized to practice any of the professions regu- 54 lated by articles one hundred forty-five, one hundred forty-seven, and 55 one hundred forty-eight of the education law.S. 6059 3 1 (2) The term "state agency" shall mean (i) any state department, (ii) 2 any division, board, commission or bureau of any state department, (iii) 3 the state university of New York and the city university of New York, 4 including all their constituent units, or (iv) a board, a majority of 5 whose members are appointed by the governor or who serve by virtue of 6 being state officers or employees as defined in subparagraph (i), (ii) 7 or (iii) of paragraph (i) of subdivision one of section seventy-three of 8 the public officers law. 9 b. Any provision, clause, covenant, or agreement contained in, collat- 10 eral to, or affecting a contract executed on or after January first, two 11 thousand twenty-four between a state agency and a design professional 12 for professional design services related to the design, construction, 13 repair, or maintenance of any public building, structure, highway, 14 bridge, viaduct, water or sewer system, or other public facility that 15 requires a design professional to defend or indemnify such state agency, 16 its agents, contractors, subcontractors or suppliers shall be deemed 17 void and against public policy and wholly unenforceable, except as to 18 claims that are caused by or the result of the negligence, recklessness, 19 or willful misconduct of the design professional. Any contractual obli- 20 gation permitted under this section shall be limited and enforceable 21 only to the degree or percentage or fault attributable to such design 22 professional. 23 § 4. This act shall take effect immediately.
