§ 2504 — Designation of particular insurer, agent or broker for insurance in certain public construction contracts

§ 2504. Designation of particular insurer, agent or broker for\ninsurance in certain public construction contracts. (a) (1) No officer\nor employee of this state, or of any public corporation as defined in\nsection sixty-six of the general construction law, or of any public\nauthority, and no person acting or purporting to act on behalf of such\nofficer, employee, public corporation or public authority, shall, with\nrespect to any public building or construction contract which is about\nto be, or which has been, competitively bid, require the bidder to make\napplication to any particular insurance company, agent or broker for or\nto obtain or procure therefrom, any surety bond or contract of insurance\nspecified in connection with such contract, or specified by any law,\ngeneral, special or local.\n (2) In paragraph one hereof, "public corporation" and "public\nauthority" shall not include:\n (A) a public corporation or public authority created pursuant to\nagreement or compact with another state,\n (B) the city of New York, a public corporation or public authority, in\nconnection with the construction of electrical generating and\ntransmission facilities or construction, extensions and additions of\nlight rail or heavy rail rapid transit and commuter railroads,\n (C) the city of New York, the city school district of the city of New\nYork, the New York city industrial development agency, the New York city\nhealth and hospitals corporation, or the New York city housing\nauthority, in connection with a contract the principal purpose of which\nis construction that (i) has an estimated cost of no less than five\nmillion dollars or (ii) is subject to an owner-controlled insurance\nprogram for projects, provided that any contract undertaken pursuant to\nthis subparagraph that has an estimated cost of five million dollars or\nmore may only be undertaken pursuant to a project labor agreement as\nsuch term is defined in section two hundred twenty-two of the labor law,\n (D) the state department of transportation in connection with a\ncontract or contracts, the principal purpose of which is construction or\nreconstruction of state route 33, also known as the Kensington\nExpressway, and the Humboldt Parkway, in the city of Buffalo, that (i)\nhas an estimated cost of no less than five million dollars, or (ii) that\nis subject to an owner-controlled insurance program for projects,\nprovided that any contract undertaken pursuant to this subparagraph may\nonly be undertaken pursuant to a project labor agreement as such term is\ndefined in section two hundred twenty-two of the labor law,\n (E) the state university of New York at Buffalo, in coordination with\nthe state university construction fund as created pursuant to article\neight-A of the education law, the principal purpose of which is\nconstruction at the state university of New York at Buffalo and shall\ninclude without limitation the empire AI research institute authorized\npursuant to section three hundred sixty-one of the economic development\nlaw, in connection with a contract or contracts that (i) has an\nestimated cost of no less than five million dollars, or (ii) that is\nsubject to an owner-controlled insurance program for projects, provided\nthat any contract undertaken pursuant to this subparagraph may only be\nundertaken pursuant to a project labor agreement as such term is defined\nin section two hundred twenty-two of the labor law, or\n (F) the Niagara Frontier transportation authority as established\npursuant to article five of the public authorities law in connection\nwith a contract or contracts, the principal purpose of which is\nconstruction to extend or expand the railroad in the Niagara Frontier\ntransportation district, that (i) has an estimated cost of no less than\nfive million dollars, or (ii) that is subject to an owner-controlled\ninsurance program for projects, provided that any contract undertaken\npursuant to this subparagraph may only be undertaken pursuant to a\nproject labor agreement as such term is defined in section two hundred\ntwenty-two of the labor law.\n (b) No such officer or employee, and no person, firm or corporation\nacting or purporting to act on behalf of such officer or employee, shall\nnegotiate, make application for, obtain or procure any of such surety\nbonds or contracts of insurance (except contracts of insurance for\nbuilders risk or owners protective liability) which can be obtained or\nprocured by the bidder, contractor or subcontractor.\n (c) This section shall not, however, prevent the exercise by such\nofficer or employee on behalf of the state or such public corporation or\npublic authority of its right to approve the form, sufficiency, or\nmanner of execution, of surety bonds or contracts of insurance furnished\nby the insurance company selected by the bidder to underwrite such bonds\nor contracts. Any provisions in any invitation for bids, or in any of\nthe contract documents, in conflict herewith are contrary to the public\npolicy of this state.\n