Establishes the Arts and Artifacts Domestic Indemnity Act

1 Co-sponsor

• Antoine M. Thompson

Title of bill

An act to amend the arts and cultural affairs law, in relation to indemnity for domestic exhibitions and artifacts; and to amend the state finance law, in relation to creating the New York state arts and artifacts indemnity fund

Purpose or general idea of bill

The purpose of this bill is to provide authorization for the State to indemnify domestically held art and artifacts used for exhibition in New York State, or those New York State collections loaned to institutions in other states. Additionally, the bill will provide terrorism indemnity for exhibits both loaned and borrowed from within and outside the borders of New York.

Summary of specific provisions

Section 1 amends the Arts and Cultural Affairs Law to create the Domestic Indemnity Act including the following provisions:

* Provides definition necessary to the program; * Authorizes the New York State Council on the Arts to enter into indemnity agreements for eligible items; * Defines those items eligible for indemnification; * Provides requirements for the application and approval process; * Sets coverage limits; * Sets deductible limits; * Provides that the premium for coverage shall be one-half of one percent of the total coverage sought, or $25,000 whichever is less; * Provides for a claims process; and, * Authorizes that the Legislature may make appropriations to pay claims.

Section 2 amends the State Finance Law to create the New York State Arts and Artifacts Indemnity Fund. The fund shall consist of the required premiums. Twenty-five percent of the total fund balance may be used for marketing and promotion purposes to advertise those exhibitions indemnified under this program.

Section 3 sets the effective date as April 1, next succeeding the enactment of this legislation.

Justification

Currently, the federal Arts and Artifacts Indemnity Program only covers those exhibitions either on loan from, or on loan to, foreign institutions. With the ever increasing cost of insurance premiums, many museums, especially those smaller in size, have completely halted securing exhibitions, or participating in reciprocal loan programs. This program is necessary to ensure that New York museums have the ability to bring quality exhibitions to the public, which currently are not available due to insurance costs.

Prior legislative history

2005-06: A.6713-A - Passed Assembly 2007-08: A.2491-A - Passed Assembly

Fiscal implications

The legislation provides only an authorization to indemnify an aggregate of $600,000,000. An appropriation is only made to cover claims against the fund, after the deductible has been applied. In its thirty-one year long history, the federal program has only needed to pay one claim totaling $134,000.

Effective date

This act shall take effect on the first of April next succeeding the date on which it shall have become a law.