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History
- Referred to corporations, authorities and commissions
- Delivered to assembly
- Passed senateVote 61–0
- Ordered to third reading cal.1247
- Committee discharged and committed to rules
- Referred to local government
- Returned to senate
- Died in assembly
- Referred to corporations, authorities and commissions
- Delivered to assembly
- Passed senateVote 63–0
- Ordered to third reading cal.1782
Show 2 earlier actions
- Committee discharged and committed to rules
- Referred to local government
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Requires state contracts to contain specific indemnification language
In Assembly Committee · Corporations, Authorities And Commissions · Sponsor Robin Schimminger
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S5129
Title of bill
An act to amend the general municipal law, the public authorities law and the state finance law, in relation to contracts with professional design firms
Purpose
To make indemnification language in contracts with public entities stan- dard throughout the state and to prevent design professionals from indemnifying clients for damages that fall outside their professional standard of care.
Summary of provisions
Section 1 amends article 5A of the general municipal law by adding a new section 103-h.
Section 2 amends title 4 of article 9 of the public authorities law by adding a new section 2879d.
Section 3 amends section 136-a of the state finance law by adding a new subdivision 6.
Section 4 sets the effective date.
Justification
Indemnification is an agreement between two parties for one party to assume liability in the event of a loss. A consultant may at times indemnify a client and assume some of the client's legal liabilities and thereby acts as an insurer for the client. Some public clients in New York State have been asking consultants to indemnify them for things that cannot be insured. If a consultant signs an indemnity that is not limited to just consultant's negligence they are accepting liability beyond that required by law and beyond that for which they are insured.
Professional liability insurance covers consultants against damages resulting from negligent professional acts, errors or omissions. To prove negligence, a claimant must establish the consultants' duty to adhere to standard of care, and establish their failure to do so and then prove that this failure proximately resulted in injury or damage to the claimant.
This legislation will make indemnity language standard throughout New York State for public entities. Professional firms will indemnify and hold clients harmless from all third party claims, liabilities, damages and costs arising out of negligent acts, errors and omissions for whom the design consultant is legally liable.
Legislative history
S.5038-a (2013-14)
Fiscal implications
None to the state.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.