Bill Text: NY S06622 | 2017-2018 | General Assembly | Amended
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-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 6622--A 2017-2018 Regular Sessions IN SENATE June 7, 2017 ___________ Introduced by Sens. RANZENHOFER, AKSHAR, BONACIC, GALLIVAN, JACOBS, ROBACH, SEWARD -- read twice and ordered printed, and when printed to be committed to the Committee on Rules -- recommitted to the Committee on Local Government in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee 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 nineteen between a municipal corporation, as defined in section 15 sixty-six of the general construction law, and a design professional for 16 professional design services related to the design, construction, 17 repair, or maintenance of any public building, structure, highway, 18 bridge, viaduct, water or sewer system, or other public facility that 19 requires a design professional to defend or indemnify such municipal 20 corporation, its agents, contractors, subcontractors or suppliers shall EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD11957-03-8S. 6622--A 2 1 be deemed void and against public policy and wholly unenforceable, 2 except as to claims that are caused by or the result of the negligence, 3 recklessness, or willful misconduct of the design professional. Any 4 contractual obligation permitted under this section shall be limited and 5 enforceable only to the degree or percentage or fault attributable to 6 such design professional. 7 § 2. The public authorities law is amended by adding a new section 8 2879-d to read as follows: 9 § 2879-d. Design professional liability. 1. As used in this section: 10 a. The term "design professional" shall mean: 11 (1) An individual licensed pursuant to articles one hundred forty- 12 five, one hundred forty-seven, and one hundred forty-eight of the educa- 13 tion law, or 14 (2) Any corporation, limited liability company, partnership or other 15 business entity legally authorized to practice any of the professions 16 regulated by articles one hundred forty-five, one hundred forty-seven, 17 and one hundred forty-eight of the education law. 18 b. The term "state authority" shall mean a public authority or public 19 benefit corporation created by or existing under this chapter or any 20 other law of the state of New York, with one or more of its members 21 appointed by the governor or who serve as members by virtue of holding a 22 civil office of the state, other than an interstate or international 23 authority or public benefit corporation, including subsidiaries of such 24 public authority or public benefit corporation. 25 c. The term "local authority" shall mean: (1) a public authority or 26 public benefit corporation created by or existing under this chapter or 27 any other law of the state of New York whose members do not hold a civil 28 office of the state, are not appointed by the governor or are appointed 29 by the governor specifically upon the recommendation of the local 30 government or governments; (2) a not-for-profit corporation affiliated 31 with, sponsored by, or created by a county, city, town or village 32 government; (3) a local industrial developmental agency or authority or 33 other local public benefit corporation; (4) an affiliate of such local 34 authority; or (5) a land bank corporation created pursuant to article 35 sixteen of the not-for-profit corporation law. 36 2. Any provision, clause, covenant, or agreement contained in, collat- 37 eral to, or affecting a contract executed on or after January first, two 38 thousand nineteen between a state authority or local authority and a 39 design professional for professional design services related to the 40 design, construction, repair, or maintenance of any public building, 41 structure, highway, bridge, viaduct, water or sewer system, or other 42 public facility that requires a design professional to defend or indem- 43 nify such state authority or local authority, its agents, contractors, 44 subcontractors or suppliers shall be deemed void and against public 45 policy and wholly unenforceable, except as to claims that are caused by 46 or the result of the negligence, recklessness, or willful misconduct of 47 the design professional. Any contractual obligation permitted under this 48 section shall be limited and enforceable only to the degree or percent- 49 age or fault attributable to such design professional. 50 § 3. Section 136-a of the state finance law is amended by adding a new 51 subdivision 6 to read as follows: 52 6. a. As used in this subdivision: 53 (1) The term "design professional" shall mean: (i) an individual 54 licensed pursuant to articles one hundred forty-five, one hundred 55 forty-seven, and one hundred forty-eight of the education law; or (ii) 56 any corporation, limited liability company, partnership or other busi-S. 6622--A 3 1 ness entity legally authorized to practice any of the professions regu- 2 lated by articles one hundred forty-five, one hundred forty-seven, and 3 one hundred forty-eight of the education law. 4 (2) The term "state agency" shall mean (i) any state department, (ii) 5 any division, board, commission or bureau of any state department, (iii) 6 the state university of New York and the city university of New York, 7 including all their constituent units, or (iv) a board, a majority of 8 whose members are appointed by the governor or who serve by virtue of 9 being state officers or employees as defined in subparagraph (i), (ii) 10 or (iii) of paragraph (i) of subdivision one of section seventy-three of 11 the public officers law. 12 b. 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 nineteen between a state agency and a design professional for 15 professional design services related to the design, construction, 16 repair, or maintenance of any public building, structure, highway, 17 bridge, viaduct, water or sewer system, or other public facility that 18 requires a design professional to defend or indemnify such state agency, 19 its agents, contractors, subcontractors or suppliers shall be deemed 20 void and against public policy and wholly unenforceable, except as to 21 claims that are caused by or the result of the negligence, recklessness, 22 or willful misconduct of the design professional. Any contractual obli- 23 gation permitted under this section shall be limited and enforceable 24 only to the degree or percentage or fault attributable to such design 25 professional. 26 § 4. This act shall take effect immediately.
