WeVote
Log In

Bill

Bill

S 5364

Prohibits broad indemnification by a design professional of a state or local agency or political subdivision involving public work for contracts

2025 Regular Session Introduced by Leroy Comrie and 1 co-sponsor

Limits broad indemnification by design professionals in public works contracts with state or local agencies.

REFERRED TO PROCUREMENT AND CONTRACTS
0
WeVote Research Nonpartisan
Bill Summary · S 5364

Summary of Senate Bill S 5364

Overview

S 5364 is a Senate bill introduced on February 20, 2025, that seeks to limit or prohibit broad indemnification obligations by design professionals in contracts for public works involving state or local government entities. The bill has been referred to the Procurement and Contracts committee for consideration. The primary sponsor is Leroy Comrie, with James Skoufis listed as a cosponsor.

Purpose and Intention

  • The central aim is to curb the tendency for design professionals (e.g., architects, engineers) to provide broad indemnification of state or local agencies or political subdivisions in public work contracts.
  • By restricting broad indemnification, the bill appears designed to shift certain risk and liability dynamics away from public entities and taxpayers, potentially reducing the exposure of government entities to claims arising from design services.

Key Provisions (as described)

  • Prohibition on broad indemnification by design professionals in contracts for public works involving state or local agencies or political subdivisions.
  • Specifics such as the exact scope of “broad indemnification,” defined terms (e.g., “design professional,” “public work,” “indemnification”), exceptions, and any required alternative risk allocations are not provided in the summary. The actual text would define these elements and determine how indemnification language must be structured going forward.

Affected Parties

  • Design professionals (architects, engineers, and other licensed professionals providing design services) who bid on or enter into public works contracts.
  • State and local government agencies and political subdivisions that procure design services for public works projects.
  • Potentially, contractors and consultants involved in public works who interact with design professionals under contracted arrangements.

Legislative History and Status

  • Introduced: February 20, 2025.
  • Status: Referred to Procurement and Contracts (listed twice in the actions, indicating the same referral).
  • Related bills: S 6059 (prior session) and A 6269 (companion bill, listed twice as companion).

Related Bills

  • S 6059 (prior-session reference)
  • A 6269 (companion) — appears as a matching bill in the Assembly

Potential Impacts and Considerations

  • Risk Allocation: Likely reduces the extent to which public entities shift risk to design professionals, potentially increasing the emphasis on insured risk, professional liability coverage, and more narrowly tailored indemnification terms.
  • Project Cost and Bidding: Could influence bid terms, insurance requirements, and project cost structuring as bidders adjust to new indemnification constraints.
  • Legal and Procurement Practices: May require agencies to adjust contract templates and procurement policies to comply with the new limitations.
  • Public Accountability: Aligns indemnification provisions with public policy goals of protecting taxpayers and limiting undue liability transfers.

Next Steps for Interested Readers

  • Monitor committee hearings and amendments in Procurement and Contracts to see the exact language, definitions, and any carve-outs.
  • Compare with related bills (S 6059, A 6269) to understand convergences or differences in proposed indemnification rules.
  • Review the full bill text when available for precise obligations, exceptions, and effective dates.

Note: This summary reflects the bill’s stated purpose and the provided information. For precise language, definitions, and legal effects, consult the full bill text and docket materials.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.