S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5767
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 24, 2021
                                ___________
 
 Introduced by M. of A. CUSICK -- read once and referred to the Committee
   on Judiciary
 
 AN ACT to amend the lien law, in relation to requiring a surety bond for
   contractors  and  subcontractors  where no public fund has been estab-
   lished for the financing of a public improvement

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 5 of the lien law, as amended by chapter 155 of the
 laws of 2004, is amended to read as follows:
   §  5. Liens under contracts for public improvements. A person perform-
 ing labor for or furnishing  materials  to  a  contractor,  his  or  her
 subcontractor  or  legal representative, for the construction or demoli-
 tion of a public improvement pursuant to a contract by  such  contractor
 with  the  state  or  a  public corporation, and any trust fund to which
 benefits and wage supplements are due or payable for the benefit of such
 person performing labor, shall have a lien for the principal and  inter-
 est  of  the value or agreed price of such labor, including benefits and
 wage supplements due or payable for the benefit of any person performing
 labor, or materials upon the moneys of the state or of such  corporation
 applicable to the construction or demolition of such improvement, to the
 extent  of the amount due or to become due on such contract, and under a
 judgment of the court of claims awarded to the  contractor  for  damages
 arising  from  the  breach of such contract by the state, or awarded for
 furnishing labor or materials not contemplated by the provisions of said
 contract, upon filing a notice of lien as prescribed  in  this  article,
 except as hereinafter in this article provided. Where no public fund has
 been  established  for  the financing of a public improvement with esti-
 mated cost in excess of two hundred fifty thousand  dollars,  the  chief
 financial  officer  of the public owner shall require the private entity
 for whom the public improvement is being made to post, or  cause  to  be
 posted,  a  SURETY bond ISSUED BY A SURETY DULY LICENSED IN THE STATE OF
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD01239-01-1

 A. 5767                             2
 
 NEW YORK or [other form of undertaking] AN IRREVOCABLE LETTER OF CREDIT,
 IN AN AMOUNT EQUAL TO THE COST OF  THE  CONSTRUCTION  WORK  guaranteeing
 prompt  payment  of moneys due to the contractor, his or her subcontrac-
 tors  and to all persons furnishing labor or materials to the contractor
 or his or her subcontractors in the  prosecution  of  the  work  on  the
 public improvement.
   §  2.  This  act  shall  take  effect  immediately  and shall apply to
 contracts entered into on or after such effective date.