Section 2504. Designation of particular insurer, agent or broker for insurance in certain public construction contracts

(a) (1)  No  officer  or  employee  of  this state, or of any public corporation as defined in
  section sixty-six of the general construction  law,  or  of  any  public
  authority,  and  no person acting or purporting to act on behalf of such
  officer, employee, public corporation or public authority,  shall,  with
  respect  to  any public building or construction contract which is about
  to be, or which has been, competitively bid, require the bidder to  make
  application  to any particular insurance company, agent or broker for or
  to obtain or procure therefrom, any surety bond or contract of insurance
  specified in connection with such contract, or  specified  by  any  law,
  general, special or local.
    (2)   In  paragraph  one  hereof,  "public  corporation"  and  "public
  authority" shall not include:
    (A) a public corporation  or  public  authority  created  pursuant  to
  agreement or compact with another state, or
    (B) the city of New York, a public corporation or public authority, in
  connection   with   the   construction   of  electrical  generating  and
  transmission facilities or construction,  extensions  and  additions  of
  light rail or heavy rail rapid transit and commuter railroads.
    (b)  No  such  officer or employee, and no person, firm or corporation
  acting or purporting to act on behalf of such officer or employee, shall
  negotiate, make application for, obtain or procure any  of  such  surety
  bonds  or  contracts  of  insurance  (except  contracts of insurance for
  builders risk or owners protective liability) which can be  obtained  or
  procured by the bidder, contractor or subcontractor.
    (c)  This  section  shall  not,  however, prevent the exercise by such
  officer or employee on behalf of the state or such public corporation or
  public authority of its right  to  approve  the  form,  sufficiency,  or
  manner of execution, of surety bonds or contracts of insurance furnished
  by the insurance company selected by the bidder to underwrite such bonds
  or  contracts.  Any  provisions in any invitation for bids, or in any of
  the contract documents, in conflict herewith are contrary to the  public
  policy of this state.