New York S 4840: Requires a surety bond for contractors and subcontractors where no public fund has been established for the financing of a public improvement

Bill Text

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S04840 Summary:

BILL NOS04840 

&nbsp

SAME ASSAME AS A04905

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SPONSORFAHY

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COSPNSRWEBB

&nbsp

MLTSPNSR

&nbsp

Amd §5, Lien L

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Requires a surety bond for contractors and subcontractors where no public fund has been established for the financing of a public improvement.

Go to top S04840 Actions:

BILL NOS04840 

&nbsp

02/13/2025REFERRED TO JUDICIARY

03/25/20251ST REPORT CAL.592

03/26/20252ND REPORT CAL.

03/27/2025ADVANCED TO THIRD READING 

06/13/2025COMMITTED TO RULES

01/07/2026REFERRED TO JUDICIARY

Go to topS04840 Committee&nbspVotes:

Go to topS04840 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topS04840 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 4840

 2025-2026 Regular Sessions

 IN SENATE

 February 13, 2025
 ___________

 Introduced by Sen. FAHY -- read twice and ordered printed, and when
 printed to be committed 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:

 1 Section 1. Section 5 of the lien law, as amended by chapter 155 of the
 2 laws of 2004, is amended to read as follows:
 3 § 5. Liens under contracts for public improvements. A person perform-
 4 ing labor for or furnishing materials to a contractor, [his or her]
 5 their subcontractor or legal representative, for the construction or
 6 demolition of a public improvement pursuant to a contract by such
 7 contractor with the state or a public corporation, and any trust fund to
 8 which benefits and wage supplements are due or payable for the benefit
 9 of such person performing labor, shall have a lien for the principal and
 10 interest of the value or agreed price of such labor, including benefits
 11 and wage supplements due or payable for the benefit of any person
 12 performing labor, or materials upon the moneys of the state or of such
 13 corporation applicable to the construction or demolition of such
 14 improvement, to the extent of the amount due or to become due on such
 15 contract, and under a judgment of the court of claims awarded to the
 16 contractor for damages arising from the breach of such contract by the
 17 state, or awarded for furnishing labor or materials not contemplated by
 18 the provisions of said contract, upon filing a notice of lien as
 19 prescribed in this article, except as hereinafter in this article
 20 provided. Where no public fund has been established for the financing of
 21 a public improvement with estimated cost in excess of two hundred fifty
 22 thousand dollars, the chief financial officer of the public owner shall
 23 require the private entity for whom the public improvement is being made
 24 to post, or cause to be posted, a surety bond issued by a surety duly

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD09174-01-5

 S. 4840 2

 1 licensed in the state of New York or [other form of undertaking] an
 2 irrevocable letter of credit, in an amount equal to the cost of the
 3 construction work guaranteeing prompt payment of moneys due to the
 4 contractor, [his or her] their subcontractors and to all persons
 5 furnishing labor or materials to the contractor or [his or her] their
 6 subcontractors in the prosecution of the work on the public improvement.
 7 § 2. This act shall take effect immediately and shall apply to
 8 contracts entered into on or after such effective date.

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