2023 New York Laws › ISC - Insurance › Article 25 - Prohibitions Against Controlled Business › 2504 - Designation of Particular Insurer, Agent or Broker for Insurance in Certain Public Construction Contracts.

§  2504.  Designation  of  particular  insurer,  agent  or  broker for
insurance in certain public construction contracts. (a) (1)  No  officer
or  employee  of  this state, or of any public corporation as defined in
section sixty-six of the general construction  law,  or  of  any  public
authority,  and  no person acting or purporting to act on behalf of such
officer, employee, public corporation or public authority,  shall,  with
respect  to  any public building or construction contract which is about
to be, or which has been, competitively bid, require the bidder to  make
application  to any particular insurance company, agent or broker for or
to obtain or procure therefrom, any surety bond or contract of insurance
specified in connection with such contract, or  specified  by  any  law,
general, special or local.
(2)   In  paragraph  one  hereof,  "public  corporation"  and  "public
authority" shall not include:
(A) a public corporation  or  public  authority  created  pursuant  to
agreement or compact with another state,
(B) the city of New York, a public corporation or public authority, in
connection   with   the   construction   of  electrical  generating  and
transmission facilities or construction,  extensions  and  additions  of
light rail or heavy rail rapid transit and commuter railroads, or
(C)  the city of New York, the city school district of the city of New
York, the New York city industrial development agency, the New York city
health  and  hospitals  corporation,  or  the  New  York  city   housing
authority,  in connection with a contract the principal purpose of which
is construction that (i) has an estimated cost  of  no  less  than  five
million  dollars  or  (ii)  is  subject to an owner-controlled insurance
program for projects, provided that any contract undertaken pursuant  to
this  subparagraph that has an estimated cost of five million dollars or
more may only be undertaken pursuant to a  project  labor  agreement  as
such term is defined in section two hundred twenty-two of the labor law.
(b)  No  such  officer or employee, and no person, firm or corporation
acting or purporting to act on behalf of such officer or employee, shall
negotiate, make application for, obtain or procure any  of  such  surety
bonds  or  contracts  of  insurance  (except  contracts of insurance for
builders risk or owners protective liability) which can be  obtained  or
procured by the bidder, contractor or subcontractor.
(c)  This  section  shall  not,  however, prevent the exercise by such
officer or employee on behalf of the state or such public corporation or
public authority of its right  to  approve  the  form,  sufficiency,  or
manner of execution, of surety bonds or contracts of insurance furnished
by the insurance company selected by the bidder to underwrite such bonds
or  contracts.  Any  provisions in any invitation for bids, or in any of
the contract documents, in conflict herewith are contrary to the  public
policy of this state.