§ 89. Rates for workers' compensation. 1. Employments and employees
in the state fund shall be divided into such groups and classes as shall
be equitable based upon differences of industry or hazard for the
purpose of establishing premium rates for workers' compensation
insurance, and for such purpose a system of merit rating may be employed
which shall take account of the peculiar hazard of each individual risk.
Such premiums in the state fund shall be fixed at the lowest possible
rates consistent with the maintenance of a solvent fund and of
reasonable reserves and surplus.

2. Premiums for construction classification employers shall be
subject to a payroll limitation on each construction classification
subject to the following transition program. For purposes of this
section, "construction classification" shall mean employments classified
under sections two hundred twenty, two hundred forty and two hundred
forty-one of the labor law, provided such employments are classified
under each of said sections, except that construction classification
shall not include any employments engaged in the construction of one or
two family residential housing.

(a) For policies with rating anniversary dates after September
thirtieth, nineteen hundred ninety-nine and before October first, two
thousand, an employer's payroll for premium computation purposes in the
affected construction classifications shall be the actual weekly payroll
per employee for the number of weeks employed subject to a maximum of
nine hundred dollars per week per employee plus one-half of the
difference between the employer's total payroll and the limited payroll.

(b) For policies with rating anniversary dates after September
thirtieth, two thousand and before October first, two thousand one, an
employer's payroll for premium computation purposes in the affected
construction classifications shall be the actual weekly payroll per
employee for the number of weeks employed subject to a maximum of nine
hundred dollars per week per employee.

(c) For policies with rating anniversary dates after September
thirtieth, two thousand one and before October first, two thousand two,
an employer's payroll for premium computation purposes in the affected
construction classifications shall be the actual weekly payroll per
employee for the number of weeks employed subject to a maximum of eight
hundred dollars per week per employee.

(d) For policies with rating anniversary dates after September
thirtieth, two thousand two, an employer's payroll for premium
computation purposes in the affected construction classifications shall
be the actual weekly payroll per employee for the number of weeks
employed subject to a maximum of the greater of seven hundred fifty
dollars per week or the weekly payroll amount upon which the maximum
weekly benefit is based, per employee.

3. The base rates applicable to construction classifications as
defined in this subdivision shall be adjusted by the New York workers'
compensation rating board beginning October first, nineteen hundred
ninety-nine, to reflect the payroll limitations required by this
subdivision as they separately affect such rates for work actually
performed within each of the following geographic territories:

(a) Territory 1 comprising the counties of the Bronx, Kings, New York,
Queens, and Richmond;

(b) Territory 2 comprising the counties of Dutchess, Nassau, Orange,
Putnam, Rockland, Suffolk and Westchester; and

(c) Territory 3 comprising all other counties within the state.