NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8981A
SPONSOR: Weprin TITLE OF BILL:
An act to amend the penal law, in relation to establishing the crime of
staging a construction site accident
PURPOSE OR GENERAL IDEA OF BILL::
This critical piece of legislation is designed to crack down on a grow-
ing and pernicious form of insurance fraud: staged accidents on
construction sites.
SUMMARY OF PROVISIONS::
Section 1 amends section 176 of the penal law to make staging a
construction. site accident for the purposes of insurance fraud a class
E felony.
Section 2 provides an effective date.
JUSTIFICATION:
New York is facing a disturbing rise in staged accidents on construction
sites for the purposes of insurance fraud. These fraudulent acts have
emerged as a pervasive insurance scam leading to inflated costs in
construction and housing throughout New York State.
Fraudulent staged accidents have led to a surge in insurance costs for
construction projects and housing. Contractors and developers have
become burdened with exorbitant insurance premiums which are ultimately
passed down to consumers and result in higher housing expenses for New
Yorkers.
These acts are orchestrated by organized crime syndicates that recruit
or otherwise coerce desperate individuals into staging these accidents
and then manipulate the insurance and legal systems in order to receive
exorbitant settlements. These acts also lead to delays in infrastructure
development and the completion of essential projects.
This legislation will make the staging of a construction site accident
for the purposes of insurance fraud a class E felony. This act is
crucial in safeguarding the integrity of our construction and insurance
industries and mitigating the financial housing-burden for our citizens.
At a time when our state is facing an unprecedented housing affordabili-
ty crisis, we must do whatever we can to curb housing costs and promote
a healthy and vibrant economy.
PRIOR LEGISLATIVE HISTORY::
New bill.
FISCAL IMPLICATIONS::
None
FOR STATE AND LOCAL GOVERNMENTS:
None
EFFECTIVE DATE::
This act shall take effect on the one hundred eightieth day after it
shall have become a law.
STATE OF NEW YORK
________________________________________________________________________
8981--A
IN ASSEMBLY
January 31, 2024
___________
Introduced by M. of A. WEPRIN, ARDILA, HYNDMAN, HEVESI, LUCAS, PRETLOW,
ZEBROWSKI, LAVINE, BLUMENCRANZ, BENDETT, MCGOWAN, DINOWITZ -- Multi-
Sponsored by -- M. of A. LEVENBERG -- read once and referred to the
Committee on Codes -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee
AN ACT to amend the penal law, in relation to establishing the crime of
staging a construction site accident
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The penal law is amended by adding a new section 176.85 to
2 read as follows:
3 § 176.85 Staging a construction site accident.
4 A person is guilty of staging a construction site accident when, with
5 intent to commit and in furtherance of a fraudulent insurance act, such
6 person enters a construction site and intentionally stages an accident
7 on such site with the intent to file an insurance claim, or directs,
8 hires, requests, encourages, orchestrates or invites another individual
9 to enter a construction site and intentionally stage an accident on such
10 site with the intent to file an insurance claim.
11 Staging a construction site accident is a class E felony.
12 § 2. This act shall take effect on the one hundred eightieth day after
13 it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD14136-02-4
