senate Bill S5202B

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

download pdf

Sponsor

Bill Status


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

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.

do you support this bill?

Bill Details

See Assembly Version of this Bill:
A7768B
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:S5202B

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 by written notice.

Section 2 - provides that this act shall take effect immediately. The
"b" amendment provides that this is prospective only.

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-c1aim 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.


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

                                 5202--B
    Cal. No. 800

                       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  --  reported
  favorably  from  said  committee,  ordered to first and second report,
  ordered to a third reading, amended and ordered  reprinted,  retaining
  its place in the order of third reading

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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10326-05-2

S. 5202--B                          2

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
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.

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.