S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6168
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 27, 2017
                                ___________
 
 Introduced  by M. of A. SCHIMMINGER, LUPARDO, BENEDETTO, JAFFEE, STIRPE,
   LIFTON, RAIA, McDONALD, GARBARINO, CURRAN, FAHY, STECK --  Multi-Spon-
   sored by -- M. of A. CROUCH -- read once and referred to the Committee
   on Corporations, Authorities and Commissions
 
 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
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The general municipal  law  is  amended  by  adding  a  new
 section 103-h to read as follows:
   §  103-H.  INDEMNIFICATION  LANGUAGE IN CONTRACTS.  1. DEFINITIONS. AS
 USED IN THIS SECTION:
   A. THE TERM "MUNICIPAL CORPORATION" SHALL MEAN A  COUNTY,  TOWN,  CITY
 AND VILLAGE.
   B.  THE TERM "PROFESSIONAL FIRM" SHALL BE DEFINED AS ANY INDIVIDUAL OR
 SOLE PROPRIETORSHIP, PARTNERSHIP,  CORPORATION,  ASSOCIATION,  OR  OTHER
 LEGAL  ENTITY  PERMITTED BY LAW TO PRACTICE THE PROFESSIONS OF ARCHITEC-
 TURE, ENGINEERING OR SURVEYING.
   2. ALL CONTRACTS SUBJECT TO THIS ARTICLE SHALL INCLUDE  THE  FOLLOWING
 LANGUAGE:
   "TO  THE FULLEST EXTENT PERMITTED BY LAW, THE PROFESSIONAL FIRM AGREES
 TO INDEMNIFY AND HOLD THE MUNICIPAL CORPORATION, ITS OFFICERS, DIRECTORS
 AND EMPLOYEES HARMLESS FROM ALL THIRD PARTY CLAIMS, LIABILITIES, DAMAGES
 AND COSTS (INCLUDING ALL REASONABLE ATTORNEY'S FEES AND COST OF DEFENSE)
 TO WHICH THE MUNICIPAL CORPORATION, ITS OFFICERS, DIRECTORS AND  EMPLOY-
 EES  MAY BE SUBJECT TO, ARISING OUT OF THE DEATH OR BODILY INJURY TO ANY
 PERSON OR THE DESTRUCTION OR DAMAGE TO ANY PROPERTY TO THE EXTENT CAUSED
 BY THE NEGLIGENT ACTS, ERRORS OR OMISSIONS, OR WILLFUL MISCONDUCT OF THE
 PROFESSIONAL FIRM'S PERFORMANCE OF PROFESSIONAL SERVICES PROVIDED  UNDER

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09895-01-7
              

 A. 6168                             2
 
 THIS  AGREEMENT  AND THOSE OF ITS SUB-CONSULTANTS OR ANYONE FOR WHOM THE
 PROFESSIONAL FIRM IS LEGALLY LIABLE."
   "TO  THE  FULLEST  EXTENT  PERMITTED BY LAW, THE MUNICIPAL CORPORATION
 AGREES TO INDEMNIFY AND HOLD THE PROFESSIONAL  FIRM  HARMLESS  FROM  ALL
 THIRD  PARTY  CLAIMS,  LIABILITIES,  DAMAGES  AND  COSTS  (INCLUDING ALL
 REASONABLE ATTORNEY'S FEES AND COST OF DEFENSE) TO THE EXTENT CAUSED  BY
 THE  NEGLIGENT  ACTS,  ERRORS OR OMISSIONS OF THE MUNICIPAL CORPORATION,
 ITS CONTRACTORS, CONSULTANTS OR ANYONE FOR  WHOM  THE  MUNICIPAL  CORPO-
 RATION IS LEGALLY LIABLE."
   3. NOTHING IN THIS SECTION SHALL BE CONSTRUED AS REQUIRING A NOTICE OF
 CLAIM  OR  OTHER  CONDITION  PRECEDENT  IN  LITIGATION FOR ANY PARTY NOT
 OTHERWISE ENTITLED TO RECEIVE ONE, NOR SHALL IT REQUIRE ANY ACTION TO BE
 BROUGHT BY OR AGAINST ANY PARTY IN THE COURT OF  CLAIMS  UNLESS  SUCH  A
 REQUIREMENT PREVIOUSLY EXISTED AS TO THAT PARTY.
   §  2.  The  public  authorities law is amended by adding a new section
 2879-d to read as follows:
   § 2879-D. INDEMNIFICATION LANGUAGE IN CONTRACTS.   1. DEFINITIONS.  AS
 USED IN THIS SECTION:
   A.  THE TERM "STATE AUTHORITY" SHALL MEAN A PUBLIC AUTHORITY OR PUBLIC
 BENEFIT CORPORATION CREATED BY OR EXISTING UNDER  THIS  CHAPTER  OR  ANY
 OTHER  LAW  OF  THE  STATE  OF NEW YORK, WITH ONE OR MORE OF ITS MEMBERS
 APPOINTED BY THE GOVERNOR OR WHO SERVE AS MEMBERS BY VIRTUE OF HOLDING A
 CIVIL OFFICE OF THE STATE, OTHER THAN  AN  INTERSTATE  OR  INTERNATIONAL
 AUTHORITY  OR PUBLIC BENEFIT CORPORATION, INCLUDING SUBSIDIARIES OF SUCH
 PUBLIC AUTHORITY OR PUBLIC BENEFIT CORPORATION.
   B. THE TERM "LOCAL AUTHORITY" SHALL MEAN: (A) A  PUBLIC  AUTHORITY  OR
 PUBLIC  BENEFIT CORPORATION CREATED BY OR EXISTING UNDER THIS CHAPTER OR
 ANY OTHER LAW OF THE STATE OF NEW YORK WHOSE MEMBERS DO NOT HOLD A CIVIL
 OFFICE OF THE STATE, ARE NOT APPOINTED BY THE GOVERNOR OR ARE  APPOINTED
 BY  THE  GOVERNOR  SPECIFICALLY  UPON  THE  RECOMMENDATION  OF THE LOCAL
 GOVERNMENT OR GOVERNMENTS; (B) A NOT-FOR-PROFIT  CORPORATION  AFFILIATED
 WITH,  SPONSORED  BY,  OR  CREATED  BY  A  COUNTY, CITY, TOWN OR VILLAGE
 GOVERNMENT; (C) A LOCAL INDUSTRIAL DEVELOPMENTAL AGENCY OR AUTHORITY  OR
 OTHER  LOCAL  PUBLIC BENEFIT CORPORATION; (D) AN AFFILIATE OF SUCH LOCAL
 AUTHORITY; OR (E) A LAND BANK CORPORATION CREATED  PURSUANT  TO  ARTICLE
 SIXTEEN OF THE NOT-FOR-PROFIT CORPORATION LAW.
   C.  THE  TERM  "PROFESSIONAL  FIRM"  SHALL MEAN ANY INDIVIDUAL OR SOLE
 PROPRIETORSHIP, PARTNERSHIP, CORPORATION, ASSOCIATION,  OR  OTHER  LEGAL
 ENTITY  PERMITTED  BY  LAW  TO PRACTICE THE PROFESSIONS OF ARCHITECTURE,
 ENGINEERING OR SURVEYING.
   2. ALL CONTRACTS SUBJECT TO THIS ARTICLE SHALL INCLUDE  THE  FOLLOWING
 LANGUAGE:
   "TO  THE FULLEST EXTENT PERMITTED BY LAW, THE PROFESSIONAL FIRM AGREES
 TO INDEMNIFY AND HOLD THE  STATE  AND  LOCAL  AUTHORITY,  ITS  OFFICERS,
 DIRECTORS  AND  EMPLOYEES  HARMLESS FROM ALL THIRD PARTY CLAIMS, LIABIL-
 ITIES, DAMAGES AND COSTS (INCLUDING ALL REASONABLE ATTORNEY'S  FEES  AND
 COST  OF  DEFENSE) TO WHICH THE STATE AND LOCAL AUTHORITY, ITS OFFICERS,
 DIRECTORS AND EMPLOYEES MAY BE SUBJECT TO, ARISING OUT OF THE  DEATH  OR
 BODILY INJURY TO ANY PERSON OR THE DESTRUCTION OR DAMAGE TO ANY PROPERTY
 TO  THE  EXTENT  CAUSED  BY  THE NEGLIGENT ACTS, ERRORS OR OMISSIONS, OR
 WILLFUL MISCONDUCT OF THE PROFESSIONAL  FIRM'S  PERFORMANCE  OF  PROFES-
 SIONAL  SERVICES PROVIDED UNDER THIS AGREEMENT AND THOSE OF ITS SUB-CON-
 SULTANTS OR ANYONE FOR WHOM THE PROFESSIONAL FIRM IS LEGALLY LIABLE."
   "TO THE FULLEST EXTENT PERMITTED BY LAW, THE STATE AND LOCAL AUTHORITY
 AGREES TO INDEMNIFY AND HOLD THE PROFESSIONAL  FIRM  HARMLESS  FROM  ALL
 THIRD  PARTY  CLAIMS,  LIABILITIES,  DAMAGES  AND  COSTS  (INCLUDING ALL

 A. 6168                             3
 
 REASONABLE ATTORNEY'S FEES AND COST OF DEFENSE) TO THE EXTENT CAUSED  BY
 THE  NEGLIGENT ACTS, ERRORS OR OMISSIONS OF THE STATE AND LOCAL AUTHORI-
 TY, ITS CONTRACTORS, CONSULTANTS OR ANYONE FOR WHOM THE STATE AND  LOCAL
 AUTHORITY IS LEGALLY LIABLE."
   3. NOTHING IN THIS SECTION SHALL BE CONSTRUED AS REQUIRING A NOTICE OF
 CLAIM  OR  OTHER  CONDITION  PRECEDENT  IN  LITIGATION FOR ANY PARTY NOT
 OTHERWISE ENTITLED TO RECEIVE ONE, NOR SHALL IT REQUIRE ANY ACTION TO BE
 BROUGHT BY OR AGAINST ANY PARTY IN THE COURT OF  CLAIMS  UNLESS  SUCH  A
 REQUIREMENT PREVIOUSLY EXISTED AS TO THAT PARTY.
   § 3. Section 136-a of the state finance law is amended by adding a new
 subdivision 6 to read as follows:
   6.  (A) DEFINITIONS. AS USED IN THIS SUBDIVISION:
   (I)  THE  TERM  "STATE  DEPARTMENT"  SHALL MEAN THOSE STATE GOVERNMENT
 DEPARTMENTS, DIVISIONS OR COMMISSIONS EMPOWERED BY THE  STATE  TO  ENTER
 INTO CONTRACTUAL AGREEMENTS ON BEHALF OF THE STATE OF NEW YORK.
   (II)  THE  TERM "PROFESSIONAL FIRM" SHALL BE DEFINED AS ANY INDIVIDUAL
 OR SOLE PROPRIETORSHIP, PARTNERSHIP, CORPORATION, ASSOCIATION, OR  OTHER
 LEGAL  ENTITY  PERMITTED BY LAW TO PRACTICE THE PROFESSIONS OF ARCHITEC-
 TURE, ENGINEERING OR SURVEYING.
   (B) ALL CONTRACTS SUBJECT TO THIS ARTICLE SHALL INCLUDE THE  FOLLOWING
 LANGUAGE:
   "TO  THE FULLEST EXTENT PERMITTED BY LAW, THE PROFESSIONAL FIRM AGREES
 TO INDEMNIFY AND HOLD THE STATE DEPARTMENT, ITS OFFICERS, DIRECTORS  AND
 EMPLOYEES HARMLESS FROM ALL THIRD PARTY CLAIMS, LIABILITIES, DAMAGES AND
 COSTS  (INCLUDING ALL REASONABLE ATTORNEY'S FEES AND COST OF DEFENSE) TO
 WHICH THE STATE DEPARTMENT, ITS OFFICERS, DIRECTORS AND EMPLOYEES MAY BE
 SUBJECT TO, ARISING OUT OF THE DEATH OR BODILY INJURY TO ANY  PERSON  OR
 THE  DESTRUCTION  OR  DAMAGE TO ANY PROPERTY TO THE EXTENT CAUSED BY THE
 NEGLIGENT ACTS, ERRORS  OR  OMISSIONS,  OR  WILLFUL  MISCONDUCT  OF  THE
 PROFESSIONAL  FIRM'S PERFORMANCE OF PROFESSIONAL SERVICES PROVIDED UNDER
 THIS AGREEMENT AND THOSE OF ITS SUB-CONSULTANTS OR ANY ONE FOR WHOM  THE
 DESIGN CONSULTANT IS LEGALLY LIABLE."
   "TO  THE  FULLEST EXTENT PERMITTED BY LAW, THE STATE DEPARTMENT AGREES
 TO INDEMNIFY AND HOLD THE PROFESSIONAL  FIRM  HARMLESS  FROM  ALL  THIRD
 PARTY  CLAIMS,  LIABILITIES, DAMAGES AND COSTS (INCLUDING ALL REASONABLE
 ATTORNEY'S FEES AND COST OF DEFENSE) TO THE EXTENT CAUSED BY THE  NEGLI-
 GENT ACTS, ERRORS OR OMISSIONS OF THE STATE DEPARTMENT, ITS CONTRACTORS,
 CONSULTANTS OR ANYONE FOR WHOM THE STATE DEPARTMENT IS LEGALLY LIABLE."
   (C)  NOTHING  IN  THIS  SUBDIVISION  SHALL BE CONSTRUED AS REQUIRING A
 NOTICE OF CLAIM OR OTHER CONDITION PRECEDENT IN LITIGATION FOR ANY PARTY
 NOT OTHERWISE ENTITLED TO RECEIVE ONE, NOR SHALL IT REQUIRE  ANY  ACTION
 TO BE BROUGHT BY OR AGAINST ANY PARTY IN THE COURT OF CLAIMS UNLESS SUCH
 A REQUIREMENT PREVIOUSLY EXISTED AS TO THAT PARTY.
   § 4. This act shall take effect immediately.