NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A7384
SPONSOR: Zebrowski
 
TITLE OF BILL:
An act to amend the insurance law, in relation to an exemption for the
city of New York from certain insurance requirements in connection with
public construction contracts
 
PURPOSE OR GENERAL IDEA OF BILL:
This bill would expand the MTA Owner Controlled Insurance Program (OCIP)
from rail contracts to additional construction contracts.
 
SUMMARY OF PROVISIONS:
Section 1 of the bill amends subparagraph (B) of paragraph 2 of
subsection (a) of section 2504 of the insurance law to allow OCIP
contracts for bus, bridge, tunnel, central business district tolling
facilities, and any ancillary projects delivered by the authority
defined as transportation facilities.
Section 2 provides an immediate effective date.
JUSTIFICATION:
The MTA currently utilizes the Owner Controlled Insurance Program
(OCIP), sometimes referred to as "Wrap Up Insurance" on behalf of their
contracted builders. Covered participants are typically the contractors,
subcontractors, construction management, and state employees that were
approved by the insurance owner, in this case the MTA, to work on the
project.
One advantage of OCIPs is the cost savings for the insurance plans,
because of the rates the authority can receive. instead of individual
companies purchasing their own plans. This allows the overall costs of
capital projects by the authority to be reduced. Currently, statute
allows for OCIP to be utilized in projects that are involving subway and
rail. Expanding the types of projects that can utilize OCIP coverage
will allow greater cost savings to the MTA on projects while they
currently work to meet existing and address possible future deficits in
their revenues.
 
LEGISLATIVE HISTORY:
This is a new bill.
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
:None.
 
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
7384
2023-2024 Regular Sessions
IN ASSEMBLY
May 19, 2023
___________
Introduced by M. of A. ZEBROWSKI -- read once and referred to the
Committee on Corporations, Authorities and Commissions
AN ACT to amend the insurance law, in relation to an exemption for the
city of New York from certain insurance requirements in connection
with public construction contracts
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subparagraph (B) of paragraph 2 of subsection (a) of
2 section 2504 of the insurance law is amended to read as follows:
3 (B) the city of New York, a public corporation or public authority, in
4 connection with the construction of electrical generating and trans-
5 mission facilities or construction, reconstruction, extensions [and] or
6 additions of light rail or heavy rail rapid transit [and], commuter
7 railroads, bus facilities, bridges, tunnels, central business district
8 tolling facilities, and facilities related to or ancillary to any of the
9 foregoing. For the purposes of this section, light rail or heavy rail
10 rapid transit, commuter railroads, bus facilities, bridges, tunnels,
11 central business district tolling facilities, and facilities related to
12 or ancillary to any of the foregoing refer to projects delivered by the
13 metropolitan transportation authority and its subsidiaries and affil-
14 iates that are defined as "transportation facilities" in subdivision
15 seventeen of section twelve hundred sixty-one of the public authorities
16 law, or "project" as defined in subdivision six of section five hundred
17 fifty-one of the public authorities law.
18 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD11565-01-3