senate Bill S5202A

Amended

Relates to claims and actions against the New York city school construction authority arising out of contracts

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 03 / May / 2011
    • REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
  • 18 / May / 2011
    • REPORTED AND COMMITTED TO FINANCE
  • 04 / Jan / 2012
    • REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
  • 19 / Mar / 2012
    • REPORTED AND COMMITTED TO FINANCE
  • 03 / May / 2012
    • AMEND AND RECOMMIT TO FINANCE
  • 03 / May / 2012
    • PRINT NUMBER 5202A
  • 15 / May / 2012
    • 1ST REPORT CAL.800
  • 16 / May / 2012
    • 2ND REPORT CAL.
  • 21 / May / 2012
    • ADVANCED TO THIRD READING
  • 13 / Jun / 2012
    • AMENDED ON THIRD READING 5202B
  • 21 / Jun / 2012
    • COMMITTED TO RULES

Summary

Relates to claims and actions against the New York city school construction authority arising out of contracts; provides accrual of claims shall be deemed to have occurred as of the date payment for the amount claimed was denied.

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Bill Details

Versions:
S5202
S5202A
S5202B
Legislative Cycle:
2011-2012
Current Committee:
Senate Rules
Law Section:
Public Authorities Law
Laws Affected:
Amd §1744, Pub Auth L

Sponsor Memo

BILL NUMBER:S5202A

TITLE OF BILL:
An act
to amend the public authorities law, in relation to claims and actions
against the New York city school construction authority arising out of
contracts

PURPOSE OR GENERAL IDEA OF BILL:
To bring section 1744 of the Public
Authorities Law into conformance with Education Law with regard to
claims for contracts

SUMMARY OF SPECIFIC PROVISIONS:
Section 1 - amends
subdivision two of
section 1744 of the Public Authorities Law to add an additional
sentence that provides in the case of an action or special proceeding
for monies due arising out of contract, accrual of such claim shall
be deemed to have occurred as of the day payment for the amount
claimed was denied.

Section 2 - provides that this act shall take effect immediately and
shall apply to any contract entered into or amended on or after
January 1, 2006.

JUSTIFICATION:
Because of the volume of work being done by the New
York City School Construction Authority, and the numerous change
orders that have occurred and continue to occur, review of changes is
often delayed beyond the ninety days within which a claim must be
presented. Under present law, a notice of claim to preserve
contractors' rights to pursue an action (if the claim is eventually
denied) must be served before a contractor even knows if there will be
a dispute. The limited, technical amendment implemented by this bill
would not only avoid the burden of unnecessary notices of claims, but
will allow for a much clearer, understandable trigger as to when the
ninety days to file a notice of claim, or the one year to commence an
action on the claim, begins to run. The denial-of-a-claim starting
point, utilized in the amended Education Law §3813, is much clearer
than the vague, accrual-of-claim starting point currently in the
Public Authorities Law. This change will bring the time of accrual
into conformance with the Education Law provisions applicable to all
other school districts statewide, will prevent the unintentional and
unfair waiver of claims, and will reduce paperwork for both the
Authority and its contractors.

PRIOR LEGISLATIVE HISTORY:
New bill.

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:


This act shall take effect immediately and shall apply
to any contract entered into or amended on or after January
1, 2006.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 5202--A

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               May 3, 2011
                               ___________

Introduced  by  Sen.  RANZENHOFER -- read twice and ordered printed, and
  when printed to be committed to the Committee on Corporations, Author-
  ities and Commissions -- recommitted to the Committee on Corporations,
  Authorities and Commissions in accordance with Senate Rule 6,  sec.  8
  -- reported favorably from said committee and committed to the Commit-
  tee   on  Finance  --  committee  discharged,  bill  amended,  ordered
  reprinted as amended and recommitted to said committee

AN ACT to amend the public authorities law, in relation  to  claims  and
  actions  against the New York city school construction authority aris-
  ing out of contracts

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Subdivision  2  of section 1744 of the public authorities
law, as added by chapter 738 of the laws of 1988, is amended to read  as
follows:
  2.  No action or proceeding for any cause whatever, other than the one
for personal injury, death, property damage  or  tort,  which  shall  be
governed  by  subdivision  one  of this section, relating to the design,
construction,  reconstruction,  improvement,   rehabilitation,   repair,
furnishing  or  equipping of educational facilities, shall be prosecuted
or maintained against the authority or any member,  officer,  agent,  or
employee  thereof, unless (i) it shall appear by and as an allegation in
the complaint or moving  papers,  that  a  detailed,  written,  verified
notice of each claim upon which any part of such action or proceeding is
founded was presented to the board within three months after the accrual
of  such claim, that at least thirty days have elapsed since such notice
was so presented and that the authority or the officer  or  body  having
the  power  to adjust or pay said claim has neglected or refused to make
an adjustment or payment thereof, and  (ii)  the  action  or  proceeding
shall  have  been  commenced  within one year after the happening of the
event upon which the claim is based;  provided,  however,  that  nothing

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10326-02-2

S. 5202--A                          2

contained in this subdivision shall be deemed to modify or supersede any
provision  of  law  or  contract  specifying a shorter period of time in
which to commence such action or proceeding,  or  to  excuse  compliance
with  any other conditions required by contract to be satisfied prior to
the commencement of such action or proceeding.  IN THE CASE OF AN ACTION
OR SPECIAL PROCEEDING FOR MONIES DUE ARISING OUT OF CONTRACT, ACCRUAL OF
SUCH CLAIM SHALL BE DEEMED TO HAVE OCCURRED AS OF THE  DAY  PAYMENT  FOR
THE  AMOUNT  CLAIMED  WAS DENIED BY WRITTEN NOTICE DELIVERED BY PERSONAL
SERVICE, CERTIFIED MAIL OR AS OTHERWISE PROVIDED BY CONTRACT.
  S 2. This act shall take effect immediately and  shall  apply  to  any
contracts entered into or amended on and after January 1, 2006.

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