senate Bill S3551

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

download pdf

Sponsor

Co-Sponsors

Bill Status


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

actions

  • 05 / Feb / 2013
    • REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
  • 27 / Feb / 2013
    • REPORTED AND COMMITTED TO FINANCE
  • 06 / May / 2013
    • 1ST REPORT CAL.557
  • 07 / May / 2013
    • 2ND REPORT CAL.
  • 08 / May / 2013
    • ADVANCED TO THIRD READING
  • 21 / Jun / 2013
    • SUBSTITUTED BY A5443

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:
A5443
Versions:
S3551
Legislative Cycle:
2013-2014
Law Section:
Public Authorities Law
Laws Affected:
Amd §1744, Pub Auth L
Versions Introduced in 2011-2012 Legislative Cycle:
S5202B, A7768B

Votes

5
1
5
Aye
1
Nay
0
aye with reservations
0
absent
0
excused
0
abstained
show Corporations, Authorities and Commissions committee vote details

Sponsor Memo

BILL NUMBER:S3551

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.

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, under-
standable 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: 2011-2012 - S.5202-B/A.7768-B - RULES/Passed
Assembly

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
________________________________________________________________________

                                  3551

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            February 5, 2013
                               ___________

Introduced  by  Sen.  RANZENHOFER -- read twice and ordered printed, and
  when printed to be committed to the Committee on Corporations, Author-
  ities and Commissions

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
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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05243-01-3

S. 3551                             2

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.